Exam 3: Conducting Business Ethically and Responsibly

Cartier Partners Financial Services Inc. provides the local swim team with a cash donation to help pay for the swim meet each year, but the team has to make its case to the company each year. Cartier's stance to social responsibility is defensive. obstructionist. accommodative. proactive. responsive.

In the 2012 Global 100 list of the most sustainable corporations in the world, which company ranked first? Imperial Oil (Canada) General Electric (U.S.) Novo Nordisk (Norway) Natura Cosmeticos (Brazil) Statoil (Norway)

Social responsibility refers to a business's obligation to make decisions that benefit consumers.

What is triple bottom line reporting? Measuring the social responsibility impact of decisions made in the production, marketing, and finance areas of a business firm Measuring the social, environmental, and economic performance of a company Measuring the social responsibility impact of decisions that are made by top, middle, and lower-level managers Measuring the efficiency, effectiveness, and profitability of a business Measuring the social responsibility impact of managers' technical skills, human relations skills, and conceptual skills

What practical dilemma is evident with regard to the practice of monitoring employees while they are at work?

Robert, a CEO, is trying to decide whether to cut a budget item that is allocated to help construct shelters for the homeless. After getting advice from workers and considering his own ethical views, Robert decides to not cut these funds, even though the decision meant that the company would likely make less profit as a result. What is the MOST likely reason Robert made this decision? Robert's concern for the company's profitability did not figure into the decision. When he asked several workers what they would do if they were in his shoes, he received mixed responses. His values and morals were not helpful to him as he made the decision. If someone asks Robert to make a similar budget cut in the future, he won't have to think about it much. Robert does not care about his company's success.

In Canada and the United States, tobacco companies are required to include warnings to smokers on their products and to limit advertising to prescribed media. Within Canada and the U.S., they follow these rules but often use more aggressive methods in countries with no such rules. As such, tobacco companies typically adopt a(n) ________ stance to social responsibility in marketing their products. accommodative obstructionist proactive defensive none of these

What is collusion?

One of the difficulties of assessing the ethicality of behaviour is that people can rationalize almost anything as ethical.

List four ethical norms.

While on a business trip, a manager takes some friends to dinner for a social evening and then charges the dinner to his company's expense account. The _______ norm would ask "Is it consistent with people's responsibilities to each other"? utility rights justice caring reciprocity

Which term describes the process of using confidential information to gain from the purchase or sale of stocks? Generally accepted investment practice (GAIP) Cheque kiting Whistle blowing Insider trading General consensus on unethical business behaviour (GCUBB)

The ethical norm of utility evaluates whether the decision is consistent with cultural standards of fairness.

When evaluating a decision based on the ethical norm of caring, a manager will focus on which of the following questions? Does the decision optimize the satisfaction of all constituencies? Is the decision consistent with what we regard as fair? Does the decision respect the rights of the individuals involved? Is the decision consistent with people's responsibilities to each other? How much will the decision cost if it is wrong?

Behaviour that is unethical is also typically illegal.

What is a social audit designed to reveal?

A conflict of interest occurs when two employees disagree about what course of action is best for the company.

What are the four steps that should be taken when a firm decides that it wants to become socially responsible? Explain.

Which consumer right is violated by a company that restricts and interferes with competition? Right to be heard Right to choose what they buy Right to good prices Right to safe products Right to be informed

What would constitute a conflict of interest in a business setting?