1. Which of the following is the best description of the possible legal ramifications of poor business conduct?
a. It is important to have an organizational mechanism for resolving all questionable issues.
b. Legal issues are usually cut and dry since the law has either been violated or has not been violated.
c. Legal issues brought by stakeholders outside of the organization are almost always resolved within the organization.
d. Ethical issues rarely become so important that they reach the courtroom for resolution.
e. The most cost effective way to resolve disputes is through the court system.
2. Which of the following statements is false concerning how a company should communicate after a crisis?
a. The communication after a crisis is usually not handled in a completely effective or ineffective manner.
b. It is better to wait until the company has a complete understanding of the crisis so that stakeholders will not be led astray by partial information.
c. If a company is slow to respond, stakeholders may feel as though the company does not care about their needs or is not remorseful about the crisis.
d. Crisis events are often chaotic, so management may begin the crisis response with a degree of ambiguity.
e. The company should communicate how it plans to resolve the crisis.
3. Which of the following statements is true about codes of conduct?
a. Codes are informal ideals about organizational expectations.
b. Few organizations have written ethical guidelines.
c. Codes are designed to resolve every ethical dilemma a company may face.
d. Codes are mostly standardized throughout all industries.
e. Codes are formal statements describing organizational expectations.
4. Despite business concerns about the costs of regulations, the benefits include all of the following except
a. equality in the workplace.
b. a cleaner natural environment.
c. safer products.
d. fewer consumer complaints.
e. safer workplaces.
5. Who establishes the ethical tone for the entire firm?
a. Employees
b. Ethics officer
c. Board of directors
d. Chief Executive Officer
e. Mid-level managers
6. Many claimed that Microsoft's dominance in the computer operating systems market violated which corporate social responsibility?
a. Ethical
b. Economic
c. Environmental
d. Legal
e. Philanthropic
7. An 'outside director' on a company's board of directors
a. can only serve on one board at a time.
b. has valuable expertise, but limited vested interest in the firm before assuming the role.
c. worked for the company in the past, but is now retired or with another firm.
d. cannot chair the board's audit or compensation committee.
e. is unlikely to bring a diverse or unique perspective to board discussions and decisions.
8. What is the set of conditions that limits barriers or provides rewards?
a. Circumstances
b. Motivation
c. Opportunity
d. Influence
e. Reinforcement
9. Issues related to fairness and honesty may arise because business is sometimes regarded as a
a. contest, with the most ethical firm 'winning.'
b. war, requiring surprise attacks, guerrilla warfare, and other warlike tactics to win the battle for consumers' dollars.
c. game governed by the rules of society.
d. contest, with the most profitable firm 'winning.'
e. game governed by its own rules, rather than those of society.
10. The most basic of business ethical standards
a. have been uniformly implemented through every firm's ethics code.
b. include developing trust in all business relationships.
c. are centered around the mutual desire to protect the environment.
d. have been codified as laws and regulations.
e. demonstrate a company's desires to address the needs of society.