Because Top Managers May Be More Insensitive to Ethical Issues

question 2

Multiple Choice

Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead.

• A)stock market
• B)board of directors
• C)middle managers
• D)customers
• E)stakeholders

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Definitions:

Ethical Resistance

The act of opposing actions or decisions that violate moral principles or codes of conduct.

Lowball Technique

Getting someone to commit to an attractive proposition before its hidden costs are revealed.

Hidden Costs

Expenses not readily apparent at the time of purchase or decision-making, which can make a product or service more expensive than initially thought.

Cognitive Dissonance

A psychological state of tension that occurs when an individual holds two conflicting thoughts, beliefs, attitudes, or values at the same time.