, CHAPTER 1: AN OVERVIEW OF ETHICS
1. An organization’s mission statement highlights its key ethical issues and identifies the overarching values and
principles that are important to the organization and its decision making.
a. True
b. False
ANSWER: False
2. Line operations personnel can be appointed as corporate ethics officers.
a. True
b. False
ANSWER: True
3. In a nonprofit organization, the board of directors reports to the local community that it serves.
a. True
b. False
ANSWER: True
4. Consistency means that shareholders, customers, suppliers, and the community know what they can expect of an
organization—that it will behave in the future much as it has in the past.
a. True
b. False
ANSWER: True
5. The greater reliance of information systems in all aspects of life has decreased the risk that information technology
will be used unethically.
a. True
b. False
ANSWER: False
6. Increasingly, managers are including ethical conduct as part of an employee’s performance appraisal.
a. True
b. False
ANSWER: True
7. Employees may suppress their tendency to act in a manner that seems ethical to them and instead act in a manner
that will protect them against anticipated punishment.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: An Overview of Ethics
8. The term morality refers to social conventions about right and wrong that are so widely shared that they become the
basis for an established consensus.
a. True
b. False
ANSWER: True
9. Laws can proclaim an act as legal, although many people may consider the act immoral.
a. True
b. False
ANSWER: True
10. Fairness and generosity are examples of virtues.
a. True
b. False
ANSWER: True
11. Lawrence Kohlberg found that the most crucial factor that stimulates a person’s moral development is monetary
reward for good behavior.
a. True
b. False
ANSWER: False
12. Multinational and global organizations must not present a consistent face to their shareholders, customers, and
suppliers but instead must operate with a different value system in each country they do business in.
a. True
b. False
ANSWER: False
13. Legal acts conform to what an individual believes to be the right thing to do.
a. True
b. False
ANSWER: False
14. Ethics has risen to the top of the business agenda because risks associated with inappropriate behavior have
increased, both in their likelihood and in their potential negative impact.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: An Overview of Ethics
15. Setting corporate social responsibility (CSR) goals encourages an organization to achieve higher moral and ethical
standards.
a. True
b. False
ANSWER: True
16. The fairness approach to ethical decision making states that one should choose the action or policy that has the best
overall consequences for all people who are directly or indirectly affected.
a. True
b. False
ANSWER: False
17. The board of directors of an organization is normally responsible for day-to-day management and operations of
the organization.
a. True
b. False
ANSWER: False
18. An individual’s manager has very little impact on his or her ethical behavior.
a. True
b. False
ANSWER: False
19. In the business world, important decisions are too often left to the technical experts; general business managers
must assume greater responsibility for these decisions.
a. True
b. False
ANSWER: True
20. The goal of the SarbanesOxley Act was to renew investor’s trust in corporate executives and their firm’s financial
reports following numerous financial scandals in the early 2000s.
a. True
b. False
ANSWER: True
21. Individual views on what is moral are so strongly held that there is nearly universal agreement in spite of
differences in age, cultural group, ethnic background, religion, life experience, education, and gender.
a. True
b. False
ANSWER: False
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. An organization’s mission statement highlights its key ethical issues and identifies the overarching values and
principles that are important to the organization and its decision making.
a. True
b. False
ANSWER: False
2. Line operations personnel can be appointed as corporate ethics officers.
a. True
b. False
ANSWER: True
3. In a nonprofit organization, the board of directors reports to the local community that it serves.
a. True
b. False
ANSWER: True
4. Consistency means that shareholders, customers, suppliers, and the community know what they can expect of an
organization—that it will behave in the future much as it has in the past.
a. True
b. False
ANSWER: True
5. The greater reliance of information systems in all aspects of life has decreased the risk that information technology
will be used unethically.
a. True
b. False
ANSWER: False
6. Increasingly, managers are including ethical conduct as part of an employee’s performance appraisal.
a. True
b. False
ANSWER: True
7. Employees may suppress their tendency to act in a manner that seems ethical to them and instead act in a manner
that will protect them against anticipated punishment.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: An Overview of Ethics
8. The term morality refers to social conventions about right and wrong that are so widely shared that they become the
basis for an established consensus.
a. True
b. False
ANSWER: True
9. Laws can proclaim an act as legal, although many people may consider the act immoral.
a. True
b. False
ANSWER: True
10. Fairness and generosity are examples of virtues.
a. True
b. False
ANSWER: True
11. Lawrence Kohlberg found that the most crucial factor that stimulates a person’s moral development is monetary
reward for good behavior.
a. True
b. False
ANSWER: False
12. Multinational and global organizations must not present a consistent face to their shareholders, customers, and
suppliers but instead must operate with a different value system in each country they do business in.
a. True
b. False
ANSWER: False
13. Legal acts conform to what an individual believes to be the right thing to do.
a. True
b. False
ANSWER: False
14. Ethics has risen to the top of the business agenda because risks associated with inappropriate behavior have
increased, both in their likelihood and in their potential negative impact.
a. True
b. False
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: An Overview of Ethics
15. Setting corporate social responsibility (CSR) goals encourages an organization to achieve higher moral and ethical
standards.
a. True
b. False
ANSWER: True
16. The fairness approach to ethical decision making states that one should choose the action or policy that has the best
overall consequences for all people who are directly or indirectly affected.
a. True
b. False
ANSWER: False
17. The board of directors of an organization is normally responsible for day-to-day management and operations of
the organization.
a. True
b. False
ANSWER: False
18. An individual’s manager has very little impact on his or her ethical behavior.
a. True
b. False
ANSWER: False
19. In the business world, important decisions are too often left to the technical experts; general business managers
must assume greater responsibility for these decisions.
a. True
b. False
ANSWER: True
20. The goal of the SarbanesOxley Act was to renew investor’s trust in corporate executives and their firm’s financial
reports following numerous financial scandals in the early 2000s.
a. True
b. False
ANSWER: True
21. Individual views on what is moral are so strongly held that there is nearly universal agreement in spite of
differences in age, cultural group, ethnic background, religion, life experience, education, and gender.
a. True
b. False
ANSWER: False
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
