Business Ethics Exam 2 Review

Issues related to fairness and honesty may arise because business is sometimes regarded as a _____________.
“Game”
What is the first step toward understanding business ethics?
Developing ethical issue awareness.
When does the ethical decision-making process begin?
When stakeholders trigger that their is an ethical issue.
Define Integrity.
-Uncompromising adherence to ethical values.
-One of the most important elements of virtue.
Define Bribery.
The practice of offering something in order to gain an illicit advantage.
Why do ethical issues in business typically arise?
Conflict between your personal views and your organization’s views.
Define Ethical Issue. Know some examples of ethical issues.
-is a problem, situation, or opportunity that requires an individual or group to choose among actions.
-Examples: discrimination, misuse of company resources, bribery.
Define Fraud.
Any purposeful communication that deceives, manipulates, or conceals face in order to create a false impression.
Define Consumer Fraud.
When consumers attempt to deceive businesses for personal gain. Ex) Price-tag switching.
Define Duplicity and give an example.
-Involves a consumer duping a store.
-Example: Wearing a dress then returning it.
Define Collusion.
Involves an employee who helps a consumer commit fraud.
Define Optimization.
Trade off between equity and efficiency.
Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organization?
Misuse of companies resources.
In marketing communications, lying causes predicaments for companies because it destroys __________.
Trust.
What are intellectual property rights and what are they concerned with?
Involve the legal protection of intellectual properties such as music, books, and movies (& other legally produced goods).
The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against what group of people?
Ages 49 to 69
Define Shoulder Surfing.
Someone looks over their shoulder while he or she types their password.
Define Social Engineering.
Tricking an individual to release their passwords and other corporate information.
Define Civil Law.
Defines the rights & duties of individuals and organizations.
Define Criminal Law.
Prohibits specific actions and imposes punishments for breaking the law.
List some provisions of the Sarbanes-Oxley Act?
-Strengthens penalties for corporate fraud
-Requires codes of ethics for financial reporting in corporations
-Makes fraudulent financial reporting a criminal offense
-Requires greater transparency in financial reporting
List some provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
-Increases the accountability and transparency of financial institutions
-Creates a bureau to educate consumers in financial literacy
-Create incentives for whistle-blowers to come forward
-Increases oversight of the financial industry
The Sarbanes-Oxley Act created the __________ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.
Public Company Accounting Oversight Board (PCAOB)
By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate _____________.
conflict of interest.
Which act was passed in response to public outrage over conditions described in Upton Sinclair’s “The Jungle” and was the first consumer protection legislation?
Pure Food and Drug Act of 1906
When a commercial states that a product is superior to any other on the market, the marketer risks accusations of ___________.
puffery.
Bullying increases productivity. True or False?
False.
Define Bullying. Know some side-effects of workplace bullying.
-Is associated with a hostile workplace where someone (or a group) considered a target is threatened, harassed, belittled, or verbally abused or overly criticized.
-Some side-effects of workplace bullying: Depression, stomach problems, fatigue, increase sick days, and sleep disturbance.
What is the Kyoto Protocol?
is an international treaty on climate change committed to reducing emissions of carbon dioxide and five other greenhouse gases and to engaging in emissions trading if they maintain or increase emissions of these gases.
What are Affirmative Action Programs?
-Involved with recruiting, hiring, training, & promotions for groups that have been discriminated against on the basis of race, gender, or other characteristics.
What are some reasons that a company could be sued for discrimination?
-Refusing to hire an individual
-Discharging an individual
-Used age, race, and gender for hiring purposes
(SHORT ANSWER) What is a conflict of interest? Provide an example.
A conflict of interest exists when an individual must choose whether to advance his or her own interests, those of the organizations, or those of some other group. For an example, a male manager dates a female employee who reports him.
What are the key elements of an organizational culture?
-Values, norms, artifacts, behavior
-Voluntary actions, governance, core practices, legal compliance
What are the four sources of criminal and civil laws?
-Common law
-Administrative law
-Statutory law
-Constitutional law
What does the institutionalization of ethics involve?
Define Cause-related marketing.
-Ties an organization’s products to a social concern
-Can effect consumer buying patterns
Describe Facilitation Payments.
-Payments made to obtain or retain businesses.
List some Anti-competitive strategies that focus on weakening or destroying a competitor.
-Price collusion
-Discriminating pricing
-Sustain pricing
-Price wars
When do conflicts of interest exist?
Employees must choose to advance their own individual interest.
Describe Title VII of the Civil Rights Act 1964- what does it prohibit?
-Prohibits discrimination on the basis of race, sex, and origin.