Exam 2: Entrepreneurial Integrity and Ethics

Religious values and other deeply felt convictions strengthen a manager's resolve to act ethically in the face of temptation.

Although Jim Hackett, CEO of Steelcase, decided to recall defective fire-retardent wall panels at an expense to the company of $40 million, the events of September 11, 2001 vindicated his action.

Ethical issues

Although PAETEC gives the employee prominence in the mission statement, the customer comes first in its management practices.

In most cases, the pressures of environmentalism have contributed to the profitability of small firms.

The ethical standards of entrepreneurs

Which is NOT a question a business owner should ask when evaluating the identified alternatives for an ETHICAL decision?

A pet-food manufacturer has returned from a seminar on environmentalism and wishes to act responsibly in this area. Which of the following actions will accomplish this purpose?

Many types of socially responsible actions can be consistent with a firm's long-term profit. Some degree of _____ is earned by such behavior.

Since there are laws on the books making it a crime to use someone's intellectual property without their permission, it is strictly a legal issue, not an ethical one.

Entrepreneurs should think carefully about their community commitments because "doing good" may add to a small company's _____.

The viewpoint expressed in the textbook is that social responsibility should be recognized by

Members of a community will react _____ to a business they trust

Many entrepreneurs are people of principle, and integrity regulates their quest for profits.

In a recent survey of business owners issues related to customers and competitors were the most difficult issue faced.

The Better Business Bureau (BBB) is a government agency that encourages ethical business practices.

In a recent survey what percent of respondents said they were "very or somewhat likely" to switch brands based on corporate citizenship commitments?

Entrepreneurs must reconcile their social obligations with _____.

The law which makes it illegal for U.S. businesses to use bribery in their dealings anywhere in the world is called the Foreign Corrupt Practices Act.

You Make the Call - Situation 2 Software piracy is a serious problem in Ukraine. While the latest version of Microsoft's Windows normally sells for more than $100 when purchased through a legitimate vendor, the same package can be picked up on the black market in Kiev for around $2, and it is usually bundled with additional software as a bonus! Brad, a project manager working in the Ukrainian office of an American consulting services firm, ponders the question of whether or not to buy 325 copies of pirated software through a local source for $1.85 per copy, versus purchasing them through an authorized vendor. The cost saving from this one decision would be nearly $32,000, and Brad knows that annual bonuses are tied to any cost savings. To complicate matters further, Brad's office is up against strong rivals in the same market, and they usually purchase pirated software to control costs. The competition is so fierce and margins are so thin that Brad's company is thinking about pulling out of the market. Having to pay full price for legitimate software might be "the straw that broke the camel's back"-that is, it might be all it takes to convince management in the U.S. to close the office down. The movie to Ukraine was hard on Brad's wife and their twin daughters. After 14 months of settling in, everyone is finally getting comfortable with their new life in Kiev. Brad really doesn't want to move them again, at least not now. And furthermore, it is well known that social standards in Ukraine do not emphasize proprietary property rights anyway. Microsoft is so big that one lost order would hardly be noticed, and it won't even get the order if the company decides to close the Kiev office down.