Importance of Business Ethics" width="115px" />Importance of Business Ethics" width="115px" />
17. The _____ is an independent agency within the Federal Reserve System that “regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws.” a. Consumer Financial Protection Bureau
b. Federal Reserve
c. World Trade Organization
d. Department of Justice
e. Federal Trade Commission
18. The primary objective of U. antitrust laws is to a. protect consumers from high prices and foreign products.
b. protect domestic businesses.
c. protect employees.
d. promote strategies that enhance business welfare over consumer welfare.
e. distinguish competitive strategies that enhance consumer welfare from those that reduce it.
19. What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot? a. Because the large size creates economies of scale and they can charge lower prices
b. Because the selection in the stores is too large
c. Because large retailers attract crime to neighborhoods in which they are based
d. Because community leaders do not like the top management
e. Because large retailers almost never hire local workers as employees
Chapter 04 - The Institutionalization of Business Ethics
20. _____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual’s morals. a. The Dodd-Frank Wall Street Reform and Consumer Protection Act
c. Organizational ethics
d. Core practices
e. The Sarbanes Oxley Act
21. Which of the following is one of the seven steps that the U. Sentencing Commission requires for an effective compliance program? a. Engage in cause-related marketing
b. Provide oversight by high-ranking personnel
c. Develop a system of voluntary practices
d. Submit to periodic privacy audits
e. Comply with ISO 14000 guidelines
22. The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing. a. Public Company Accounting Oversight Board
b. Corporate Accounting Oversight Commission
c. Consumer Financial Protection Bureau
d. Occupational Health and Safety Administration e. Equal Employment Opportunity Commission
23. _____ responsibilities relate to a business’s contributions to stakeholders. a. Economic
e. Social responsiveness
24. Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs. a. Sarbanes-Oxley Act
b. U. Sentencing Commission's Guidelines for Ethical Compliance
c. Ethical Compliance Act
Chapter 04 - The Institutionalization of Business Ethics
d. Corporate giving
e. Employee benefits
30. Title VII of the Civil Rights Act of a. prohibits discrimination on the basis of race, color, sex, religion, or national origin.
b. penalizes the top executives in an organization for misconduct.
c. is basically the same as the Sarbanes-Oxley Act.
d. discourages whistle-blowers from reporting misconduct.
e. prohibits pay discrimination on the basis of gender.
31. Cause related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit. a. individual ethics b. tastes
e. buying patterns
32. ____________ must be trusted to make business work properly and includes accountants. a. Gatekeepers
b. Federal regulators
c. Ethics officers
d. The buying center
e. The legal department
33. The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society. a. institutionalizatio n
34. Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades? a. Institutionalization of ethics is now mandated for all organizations by governments around the world
Chapter 04 - The Institutionalization of Business Ethics
b. Stakeholders have recognized the need for improving business ethics
c. The government has stepped in when scandals and misconduct have damaged key constituents of businesses
d. Gatekeepers have been questioned as to their contributions to major scandals
e. Highly ethical companies tend to be more profitable than those suffering from misconduct issues
35. A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd- Frank Act is to a. guard against anticompetitive behaviors.
b. create synergy among businesses to improve the economy.
c. encourage employees to report misconduct.
d. discourage businesses from taking risks.
e. mandate that companies engage in self-regulation.
36. Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties? a. Title VII of the Civil Rights Act.
b. The Sherman Antitrust Act.
c. The Federal Sentencing Guidelines for Organizations.
d. The Sarbanes-Oxley Act.
e. The Dodd-Frank Act.
37. Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation a. is excessively complex and financially burdensome.
b. is not necessary.
c. is fair to all firms.
d. has reduced restatements of financial reports.
e. is too simplistic.
38. An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except a. values.
Chapter 04 - The Institutionalization of Business Ethics
objectives with the goals and desires of society? Why or why not? ANSWER: Students can draw from the entire chapter to answer this question.
45. This is a leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases. a. Consumer Financial Protection Bureau
b. Federal Trade Commission
c. Better Business Bureau
d. Open Compliance Ethics Group
e. Occupational Safety and Health Administration
46. Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements are known as a. Mandated boundaries
b. Core practices
c. Voluntary boundaries
47. One of the steps the U. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm must develop and disseminate a code of conduct that communicates required standards and identifies key risk areas for the organization. a. True
48. In 2005 the Supreme Court ruled that the federal sentencing guidelines were not mandatory but should serve only as recommendations judges should use in their decisions. a. True
49. Sarbanes-Oxley is considered to be the most sweeping financial overhaul of the regulatory system since the Great Depression. a. True
Chapter 04 - The Institutionalization of Business Ethics
50. The primary method for resolving conflicts and serious business disputes is through the use of self-regulation. a. True
51. Cause-related marketing is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits. a. True
