Exam 3: Conducting Business Ethically and Responsibly

Give three arguments in favour and three arguments against the social responsibility of business.

When Sony Ericsson hired models to pose as "tourists" who asked real tourists if they would take their picture with Sony's new camera cellphone, this was an example of advertising of a counterfeit brand. morally objectionable advertising. lack of truth-in-advertising. misleading price advertising. stealth advertising.

Brandon Ltd. is accused of paying excessive salaries and providing excessive "perks" to top managers. The company may be engaging in insider trading. collusion. cheque kiting. improper financial management. price fixing

Battleford Corp. is in the processes of setting up a system to manage its social responsibility program. What should they do first? A social audit must be conducted. The government must identify specific things the company is doing that need to be corrected. They need to make sure that support is evident from top management. A director of the firm's social agenda must be appointed. A committee of top managers must develop a strategic plan for social responsibility

Social Return on Investment (SROI) helps companies to improve their financial return on investment. increase employee satisfaction. understand, manage, and communicate the social value of their activities for stakeholders. respond to required government regulations on social responsibility improve the level of ethics within the company.

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

A manager who discriminates against any ethnic minority in hiring exhibits behaviour that is ethical but illegal. ethical and illegal. unethical but legal. unethical and illegal. there is no consensus on how this behaviour should be classified.

What are managerial ethics?

When evaluating a decision based on the ethical norm of justice, 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?

John is a salesperson who feels that he is not paid nearly enough money for the work that he does. He therefore "pads" his expense account in order to receive increased financial benefits. John's behaviour would be seen as ethical according to which criterion? Rights Justice Utility Caring None of these

Executives at MKD Transportation have just been contacted by the media with a report that one of their ships is leaking an oily substance off the coast of Belize. If MKD adopts an accommodative stance, how will the company respond to the media and demands by the government of Belize and environmental groups?

Which of the following is correct regarding global warming? The idea is a hoax. Global warming is occurring, but the rate is so slow that it will be hundreds of years before any significant problems arise. There is agreement that global warming is caused by increased air pollution that is a result of human activity. There is agreement that global warming is happening, but there is a debate about whether the warming is natural or caused by human activity. Global warming will have a negative effect on everyone.

Pandora Products is a national company that produces a line of hot breakfast cereals, mainly featuring flavored instant oatmeal. Its products are sold in grocery stores across the country, but the company has faced stiff competition from larger, well established companies. The marketing department of Pandora is recommending to the CEO that Pandora focus future advertising on green marketing and emphasize its pro-environmental approach and natural product ingredients. The CEO does not agree and argues that it is not a good idea to focus on green marketing. Which of the following statements, if true, would support the argument made by the marketing department? Studies indicate that most consumers' actual purchases of "green" products occur only when other factors (such as price, quality, and amount) are equal. Some 4 percent of the consumers of Pandora's breakfast oatmeal are considered True Blue Greens, or active environmentalists. Company reputation can be damaged if the company is considered to be "greenwashing," or faking being green. Pandora's breakfast oatmeal, while made of a natural product (oatmeal), also contains additives that are not organic or considered truly natural. Green marketing would differentiate the oatmeal from the competition and could provide an advantage that would increase sales.

A poll of 12 000 people in 11 different countries revealed that ____ percent of those polled were willing to spend extra money to fight climate change. 90 75 65 45 20

Consumerism is the group of laws dealing with retail commercial transactions. the movement that seeks to protect and expand the rights of consumers in their dealings with businesses. the right to be informed about all aspects of a product. the right to choose the product. the right to safe products.

"The only way recycling will ever work is if customers demand it and are willing to pay the higher prices for it." Agree or disagree with this statement, and support your position.

In the past, "gentlemen's agreements" were often used to avoid competition or to divide up a market so that firms did not have to truly compete against each other. Which consumer right is being violated when companies block competition? Right to be heard Right to choose Right of consumers Right to safety Right to competition

Give examples of the types of actions a business can take to meet its social responsibility.

Why did the fair trade movement develop? Because large industrialized countries were using unfair trading practices with developing countries Because pollution was increasing too rapidly in developing countries as a result of excessive investment in mining operations Because workers involved in producing commodities like coffee were not receiving fair payment for their products Because free trade agreements were hurting smaller producers Because there was a surplus of cotton as a result of highly efficient U.S. production

With regard to the distinction between unethical and illegal behaviour, it is correct to say that something that is illegal is also unethical. a given act can be ethical, yet illegal. the distinction between unethical and illegal behaviour has no practical significance. it is impossible for something to be unethical and legal at the same time. all of these are correct.