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Whistle-blowing refers to employees reporting unethical behavior that they discover or see in the firm.

A) True
B) False

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A bribe is a gift bestowed to influence a recipient's conduct.

A) True
B) False

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Corporate social policy should be designed and articulated during strategy formulation.

A) True
B) False

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Social policy can best be defined as


A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.
B) a document providing behavioral guidelines that cover daily activities and decisions within a firm.
C) an SEC mandate to report any unethical behavior.
D) the legal requirement to reveal how a firm's operations impact the natural environment.
E) mandatory technical standards that result in an environmental management system.

F) A) and B)
G) C) and E)

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It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape.


A) more and more difficult for firms to make "green" claims when their actions are not substantive, comprehensive, or even true
B) increasingly easy for firms to get away with placing "green" terminology on their products without any oversight
C) customary for firms to use terms like "organic," "green," or "earth-friendly" when their products don't warrant it
D) more common for consumers to be cynical about corporate environmental claims
E) impossible for firms to omit "green" terminology from their labels

F) C) and D)
G) B) and C)

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European firms are increasingly adopting explicit, American-style sexual harassment laws.

A) True
B) False

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Describe a sustainability report.

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A sustainability report reveals how a fi...

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Business ethics, ________, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model.


A) social responsibility
B) social networking
C) fiscal irresponsibility
D) cultural indifference
E) None of the above

F) All of the above
G) C) and D)

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In an effort to manage ecological challenges, many companies are


A) moving environmental affairs from the staff side of the organization to the line side.
B) moving environmental affairs from the line side of the organization to the staff side.
C) making the chief operating officer report directly to the corporate environmental group.
D) omitting an environmental representative from their board of directors.
E) purging environmental values from their mission statements.

F) A) and C)
G) All of the above

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The "United Kingdom Bribery Law" is more stringent than the similar U.S. FCPA.

A) True
B) False

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Special natural environment issues include all of the following EXCEPT


A) ozone depletion.
B) destruction of animal habitats.
C) pollution control.
D) spreading computer viruses.
E) developing biodegradable products and packages.

F) All of the above
G) B) and C)

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If a firm has a bad sustainability record this will


A) help a firm in the market.
B) improve a firm's standing in the community.
C) increase investor scrutiny of the firm.
D) deflect the scrutiny of a firm by environmentalists.
E) release the firm from governmental reporting obligations.

F) B) and D)
G) A) and B)

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Most firms warn managers and employees that reporting an ethical violation by others could cause them to be discharged.

A) True
B) False

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________ refers to refers to employees reporting any unethical violations they discover or see in the firm.


A) Whistle-blowing
B) Bribery
C) Adultery
D) Sustainability
E) Stewardship

F) C) and E)
G) C) and D)

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A well written code of ethics ensures ethical business behavior.

A) True
B) False

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A proactive environmental policy is likely to lead to


A) higher cleanup costs.
B) conservation of energy.
C) reduced customer loyalty.
D) numerous liability suits.
E) higher medical costs.

F) None of the above
G) A) and D)

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According to a recent Wall Street Journal article, ________ percent of all firms sampled had no restrictions on boss-subordinate love affairs at work.


A) 5
B) 13
C) 24
D) 39
E) 80

F) C) and E)
G) B) and D)

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