ch2 Key 1. Federal sentencing guidelines reduce criminal fines for legal violations in companies that have taken specific steps to self-police ethical/legal conduct. TRUE Federal sentencing guidelines reduce criminal fines for legal violations in companies that have taken specific steps to self-police ethical/legal conduct. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 To compare the connection between law and ethical principles. Reed - Chapter 02 #1 Topic: Contemporary Business Ethics 2. Economist Adam Smith believed that humans could not look beyond self-interest. FALSE Adam Smith recognized a moral element in human nature that goes beyond self-interest. AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 To compare the connection between law and ethical principles. Reed - Chapter 02 #2 Topic: The Nature of Ethics 3. Growing diversity in the workplace has reduced concerns over ethical values. FALSE Diversity fosters concern over values, and in recent years American society has become more openly pluralistic. Several trends illustrate society's concern over the possible fragmentation of ethical values at home, at school, and in business. AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 To compare the connection between law and ethical principles. Reed - Chapter 02 #3 Topic: The Nature of Ethics 4. Diverse societies are characterized as societies that have a single, unified system of ethical values that guide behavior. FALSE Ours is a diverse society, formed from many ethnic backgrounds, races, and religions. As a result, we have few shared ethical values to guide behavior. When a business decision maker does not share common values with society in general, any decision made has a greater likelihood of arousing ethical concern than if there is a common code of behavior and universally accepted values. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 To compare the connection between law and ethical principles. Reed - Chapter 02 #4 Topic: The Nature of Ethics 5. Because of the increased influence of the Internet and extensive coverage of business in the news media, it has become increasingly difficult for businesses to hide questionable behavior. TRUE From the coverage of stock market manipulations to accounts of Enron's and Arthur Andersen's collapse, the news media and Internet heighten public attention and concern. What used to be considered private is now considered public. The ethical issues that surround nearly every significant business decision are easier to see than they once were.