Reference no: EM131027262
1. High levels of perceived corporate misconduct decreases customer trust. T or F.
2. The twenty-first century ushered in a new set of ethics scandals, suggesting many companies had not embraced the public’s desire for higher ethical standards. The Sarbanes–Oxley Act stiffened penalties for corporate fraud and established an accounting oversight board. T or F.
3. List an act that is legal; however it is unethical. Also, list an act that is illegal but it is ethical. 1. 2.
4. Corporate culture can be defined as a set of values, norms, and artifacts, including ways of solving problems that employees of an organization share. T or F.
5. Primary stakeholders are essential to the company's survival and include: employees, shareholders, suppliers, community, government regulatory agencies and customers. T or F.
6. Secondary stakeholders are not essential to the company's survival and include: special interest groups, the mass media, competitors and trade associations. T or F.
7. Executive compensation can be an ethical issue. Do you believe executives are worth millions of dollars in annual salary, bonuses, and stock options? Briefly explain.
8. The Whistle-Blower Protection means that companies cannot legally retaliate against an employee who reports unethical behavior. T or F.
9. Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates a conflict of interests. T or F.
10. Deontologists would consider it wrong to kill an innocent person or commit a serious injustice against someone, no matter how much greater social utility might result from doing so, because such an action would infringe on individual rights. T or F.
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