
Course Introduction
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Course Introduction
Management Ethics examines the principles and frameworks guiding ethical decision-making and responsible leadership within organizations. This course explores topics such as corporate social responsibility, stakeholder theory, ethical dilemmas in management, and the development of organizational ethical cultures. Students will analyze real-world cases to understand the impact of ethical and unethical behaviors on employee morale, company reputation, and long-term business success. By emphasizing moral reasoning, this course equips future managers with the tools necessary to navigate complex ethical challenges in todays dynamic business environment.
Recommended Textbook
Business Ethics Ethical Decision Making and Cases 9th Edition by O. C. Ferrell
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10 Chapters
440 Verified Questions
440 Flashcards
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.
A) Defense Industry Initiative on Business Ethics and Conduct
B) Sarbanes-Oxley Act
C) Federal Sentencing Guidelines for Organizations
D) Foreign Corrupt Practices Act
E) Dodd-Frank Wall Street Reform and Consumer Protection Act
Answer: B
Q2) The Foreign Corrupt Practices Act outlawed
A) accounting fraud.
B) price collusion.
C) corruption in government.
D) bribery of officials in other countries.
E) executive misconduct.
Answer: D
Q3) How does ethics contribute to customer satisfaction?
Answer: Pages 19-20
Q4) Discuss the evolution of business ethics as a field of study from before 1960 to the present.
Answer: Pages 11-16

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Q1) What is the first step in implementing a stakeholder perspective in an organization?
A) Identifying resources and determining urgency
B) Identifying stakeholder groups
C) Identifying stakeholder issues
D) Assessing the corporate culture
E) Assessing organizational commitment to social responsibility
Answer: D
Q2) The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
A) Adam Smith.
B) Theodore Levitt.
C) Norman Bowie.
D) Herman Miller
E) Milton Friedman.
Answer: A
Q3) Why is ethical misconduct more difficult to overcome than poor financial performance?
Answer: Page 31
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Sample Questions
Q1) Which of the following statements is most correct?
A) Affirmative action programs require quotas to govern employment decisions.
B) Affirmative action programs have eliminated discrimination in employment.
C) Affirmative action programs are required in all organizations by law.
D) Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
E) Affirmative action programs involve efforts to avoid recruiting, hiring, training, and promoting qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
Answer: D
Q2) Which of the following is not a side-effect of being the victim of workplace bullying?
A) Increased productivity
B) Sleep disturbance
C) Depression
D) Increased sick days
E) Stomach problems
Answer: A
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Sample Questions
Q1) What ethical issues affecting consumers and society as a whole are created by unfair competition?
Q2) 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
C) perceptions
D) budgets
E) buying patterns
Q3) Title VII of the Civil Rights Act of 1964
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.
Q4) Society often expects a lot from business. Do you think that it is possible to balance profit and other business objectives with the goals and desires of society? Why or why not?
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Sample Questions
Q1) According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.
A) reason
B) significant other
C) individual factor
D) opportunity
E) ethical issue intensity
Q2) The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control.
A) democratic
B) coaching
C) affiliative
D) coercive
E) pacesetting
Q3) The ethical decision-making framework includes the concepts of ethical issue intensity, individual factors, organizational factors, and opportunity. Discuss how these concepts influence the ethical decision-making process.
Q4) Discuss the role of leadership in understanding and executing ethical decision making in organizations.
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Q1) _____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.
A) Relativists
B) Hedonists
C) Pragmatists
D) Deontologists
E) Teleologists
Q2) Which moral philosophy focuses on the rights of individuals and on the intentions associated with a particular behavior, rather than its consequences?
A) Deontology
B) The relativist perspective
C) Teleology
D) Egoism
E) Utilitarianism
Q3) Explain how the levels of Kohlberg's model of cognitive moral development may influence a person's perception of and response to an ethical issue.
Q4) What is white collar crime and why has it become such a widespread problem?
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Q1) Expert power usually stems from
A) a superior's credibility with his or her subordinates.
B) the belief that a certain person has the right to exert influence and that certain others have an obligation to accept it.
C) a person's ability to influence the behavior of others by offering them something desirable.
D) a person's ability to penalize the actions or behavior of another.
E) a person's perceptions that his or her goals or objectives are similar to another's.
Q2) Which of the following cultures combines high levels of concern for people and performance?
A) Apathetic culture
B) Caring culture
C) Integrative culture
D) Exacting culture
E) Cooperative culture
Q3) How do societal expectations affect corporations and their ethical initiatives? Give an example of a company that had to alter a product or service because of society's concerns about its health, moral, or social impacts.
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Q1) The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually
A) improve their ethics programs.
B) eliminate misconduct.
C) fail to install a Federal Sentencing Guidelines program.
D) fail to report ethics program activities.
E) tolerate misconduct.
Q2) Which of the following is not a main goal of successful ethics programs?
A) Identify key risk areas that employees will face.
B) Align employee conduct with organizational reputation and branding.
C) Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma that they do not know how to resolve.
D) Allow employees to solve ethical issues themselves using their best judgment.
E) Allow a mechanism for employees to voice their concerns that is anonymous, but allows for the provision of feedback to key questions.
Q3) What is the role of an ethics officer within an organization? What are his or her duties? To whom does the FSGO guidelines recommend that the ethics officer report?
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Q1) During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility?
A) Secure commitment of top managers and directors.
B) Establish a committee to oversee the audit.
C) Define the scope of the audit process.
D) Review organizational mission, goals, values, and policies.
E) Verify the results.
Q2) Explain the benefits and risks of ethics auditing.
Q3) Independent verification of the ethics audit is important because it lends the report
A) credibility and formality.
B) credibility and reliability.
C) credibility and objectivity.
D) objectivity and civility.
E) objectivity and reliability.
Q4) How can companies secure stakeholder input during an ethics audit? Why is it important to do so?
Q5) What is the Global Reporting Initiative? What is its goal? Why has it grown in importance?
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Q1) Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?
A) Global Sullivan Principles
B) World Trade Organization
C) Global Sullivan Organization
D) Federal Trade Commission
E) Global Commerce Association
Q2) The _____ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations
A) International Monetary Fund
B) United Nations
C) World Trade Organization
D) North American Free Trade Act
E) European Union
Q3) What is dumping and why is it considered anticompetitive? Does the United States allow dumping?
Q4) Why are many international business ethics issues different from domestic ethical issues?
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