Exam 4: Demanding Ethical and Socially Responsible Behavior

The brewers of Budweiser beer encourage their customers to drink responsibly and "know when to say when." This reflects a compliance-based approach to ethics.

After a few years of being in business,employees who worked for a start-up software company noticed that the owner overlooked certain questionable actions of high billing associates,versus other employees who worked hard but only brought in an average number of new clients each month.With respect to what you learned in this chapter about the ethical behavior of many Americans,which of the following statements applies here?

In the Reaching Beyond our Borders box titled,"Ethical Culture Clash",the story proves that a large multi-national company such as Motorola can ask its employees,and should expect them to follow the same ethical standards they would practice if living and working within the U.S.borders.

A recent study revealed that employee fraud causes 30% of all business failures.

If a business fails to meet its responsibilities to its employees,which of the following is likely to occur?

Business relationships often present ethical dilemmas that are:

Idle Time Gaming,Inc. ,would like its employees,customers,and the general public to be aware of the activities and programs it has achieved for the community over the past year.The company might consider performing a:

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm.Enron and WorldCom participated in inappropriate accounting methods.According to the Legal Briefcase,"Cost of Corruption":

The first step when facing an ethical dilemma is to ask:

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Zach spent several months developing a good relationship with a business client.The client is now buying a significant amount of product from Zach's company,resulting in high commissions for Zach,personally.After checking the sales records for the past six months,Ben a sales colleague of Zach's)started visiting the same client in the hopes of capturing some of the client's business too.Although he considers it "legal and fair game",sales reps in his firm have begun to avoid him because they consider it a violation of:

Out-Tel,a computer chip manufacturer,knowingly sold defective chips and failed to notify customers of the potential problems.When the problem became public knowledge,the firm's stock price fell dramatically.This illustrates the value that investors place on the ethical behavior of businesses.

Green washing:

Blake Mycoskie started a shoe business known as TOMS.As a social entrepreneur,Mr.Mycoskie takes the concept of ___________________ to a new level.TOMS social causes are directly related to the firm's expertise: selling shoes.

Making ethical choices is always easy.

Studies show that consumers are not concerned about the socially conscious behavior of the firms with which they do business.

Which of the following people would be most in favor of CSR Corporate Social Responsibility)?

Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

The social audit is: