Exam 3: Conducting Business Ethically and Responsibly

Business firms which engage in cheque kiting are acting in a socially responsible manner because such financial techniques result in higher profits, higher dividends, and higher stock prices, and these benefit stockholders.

Describe the stakeholder model of social responsibility.

What is consumerism?

Arctic Glacier Inc., a Canadian company, was one of several companies served with subpoenas by the U.S. government as it investigated possible violation of monopoly rules. insider trading. cheque kiting. unsafe products. collusion.

Yorkton Electric has taken an accommodative stance towards social responsibility. This means that it will take care only of its profitability, even if it means breaking the law. it will seek out opportunities to contribute to the well-being of society. it will take a proactive position on social issues. it will respond to social concerns beyond the bare minimum if specifically asked. it will take on only the minimal amount of responsibility required by law and standard business practice.

Discuss the problem of land pollution. Include in your response the sources of land pollution and a recommended solution for dealing with that problem.

In 2011, the Alberta securities regulator brought charges against several executives at Grand Cache Coal Corp. because those executives sold company stock just before the company publicly disclosed negative news about its sales. This was an example of cheque kiting. insider trading. misrepresentation of finances. improper financial management. whistle-blowing.

The top management level at Brown Corp. has already publicly stated its commitment to being socially responsible. What is the next action that Brown Corp. needs to take if it wants to follow the four-step process for managing social responsibility programs? A social audit must be conducted. The government must identify specific things the company is doing that need to be corrected. Make sure that support must 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.

________is the view that a company's only social responsibility is to make as much money as possible for its shareholders. Free market capitalism Managerial capitalism Globalization Mixed economy capitalism None of these terms are correct.

In one sentence, summarize the debate about global warming.

Which of the following is correct with regard to managerial ethics? A manager who discriminates against any ethnic minority in hiring is exhibiting illegal, but not unethical, behavior. If a manager pays an employee less than he deserves because the manager knows the employee can't afford to quit, the manager is clearly behaving unethically. Ethics are not usually an issue when a firm deals with customers. It is difficult to deal with ethical issues because there is much global variation in business practices. All of the statements are correct.

What is the motivation behind the fair trade movement? How has it affected the way some companies operate?

A chocolate company with a primary emphasis on ethical sourcing and procurement would MOST likely avoid which of the following? Neglecting the welfare of the farmers who grow cacao beans Reducing the size of their marketing department Developing new fat-free products Hosting a holiday party for all employees Reducing the funds allocated to the company health care program for employees

Explain why the counterfeiting of products is harmful to both consumers and to the legitimate companies whose products are counterfeited.

Organizational stakeholders are those groups, individuals, and organizations that are directly affected by the practices of an organization and that therefore have a stake in its performance.

What is the purpose of a social audit? To conduct a systematic analysis of how a firm has used funds that are earmarked for social programs To determine the impact of a company's social involvement on the local community To determine the specific area of need for a firm's social responsibility actions To determine the anticipated costs and benefits of dealing with a social concern To audit the social functions the firm puts on for employees

Which of the following is not an argument against a socially responsible role by a business firm? Some individuals believe that business involvement will increase business control and power in addressing solutions for problems. Business should help solve the problems because business contributed to the problem. Some people oppose any business activity that cuts into profits to investors. Companies lack the expertise to deal with many of the problems in society; therefore, business should let experts handle those matters. Many businesses have been able to influence government agencies that are supposed to regulate their industries.

Ethics are standards or moral values regarding what is right and wrong. avoiding doing things that, if everyone did it, we would have a real mess. believing what's right for one person is wrong for another. the command to love one another. standards by how we treat one another.

Which of the following is an example of a company acting irresponsibly toward its investors? The board of directors does not declare a dividend Retained earnings are used to expand research and development instead of paying a dividend Top management misrepresents the firm's financial situation The firm does not allow insider trading The firm uses retained earnings to finance growth

All of the following are basic rights of consumers except safe products. to be heard. to be informed. to choose what they buy. low prices.