Exam 3: Conducting Business Ethically and Responsibly

How does insider trading benefit the person who does it?

The view that business should balance its commitments to the stakeholders in its environment is known as managerial capitalism. social auditing. social responsibility. business ethics. stakeholder theory.

Australia, Canada, and the U.S. are the world's largest greenhouse gas emitters on a per capita basis.

At the end of an especially good year, a company decides to give bonuses to its sales employees. Two salespersons are included: Tracy shows a better-than-average sales record, whereas Colin was only an average salesperson. Colin has a reputation for being a straight shooter who complies strictly with the company's ethical code. On the other hand, Tracy made some deals that, as coworkers confided to middle managers, were "on the edge" of dishonesty. When the company's ethics panel reviewed one such deal, it was found to have been compliant with the letter of the stated code. Nevertheless, the financial officer recommends that both employees be given the same bonus. Which of the following, if true, might strengthen the ethical case for giving a larger bonus for Tracy? Asked to explain his tactics, Tracy said that sales work is an intrinsically competitive field, and coworkers should expect him to act in self-interest. One of the company's key policies involves tying bonuses strictly to sales records, to ensure fairness to all personnel. The entire sales staff had recently undergone a thorough refresher course in ethical behavior in sales. Middle managers felt that most of the complaints were based on jealousy over Tracy's increased success rate. Providing a larger bonus to Tracy would give coworkers added incentive to increase their own sales records.

The fundamental goal of sustainable development is to make sure that oil resources last until 2100. discover more oil so that developing nations will be able to eventually attain the standard of living that developed nations now enjoy. encourage managers to focus more on social issues and less on profit issues. pursue activities that meet current needs, but which will not put future generations at a disadvantage when they attempt to meet their needs. encourage businesses to publish sustainability reports each year.

The conversion of waste materials into useful products is called recycling. solid waste recovery. acid rain. biomass. toxic waste disposal.

What are the three major types of pollution? Give an example of each.

Acme Inc. meets its legal and ethical requirements. In addition, Acme donates $50 000 each year to local charities, but only when a request is made. Which of the following approaches to social responsibility is evident here? obstructionist accommodative defensive proactive it is not possible to tell from the information that is provided

Sustainable development refers to the systematic analyses of how a firm is using funds earmarked for its social responsibility goals. refers to the pursuit of activities that meet current needs, but which will not put future generations at a disadvantage when they attempt to meet their needs. is not as popular as it was a decade ago because the program is too costly for businesses to support. involves measuring the social, environmental, and economic performance of a company. means that companies view themselves as good citizens of society and they proactively seek opportunities to contribute to consumer well-being.

An individual's peers have only limited influence on the development of that person's ethical values.

Managerial ethics refers to the ethical behaviour of a manager or employee of an organization.

IBP, a large meat processing firm, has a record of violating environmental regulations, labour laws, and food processing laws, and then trying to cover up its offenses. IBP has adopted a(n) ________ stance to social responsibility. accommodative obstructionist proactive defensive financial maximization

Smooth is a bar soap for women that is produced by Beautymax Products. Smooth has recently been reformulated because previous product ingredients had become quite expensive. However, the reformulation has caused some major problems, as some 12 percent of the recent consumers have reported developing a rash accompanied by itching and peeling skin. Beautymax's in-house public relations department has been given the task of crisis management for the negative publicity resulting from the skin rashes. The PR department is advocating using impression management strategies to protect the company's image. However, the CEO is arguing for an apology strategy. Which of the following statements, if true, would support the CEO's argument? An expression of innocence, such as "someone else added something to our soap" would be believed by 16 percent of the consumers. An excuse, such as "this was a random act committed by a disgruntled employee," would be believed by 32 percent of the consumers. "We assume full responsibility and will change our soap formula immediately" would be believed by 34 percent of the consumers. "These rashes are exceptions to our high quality standards" would be believed by 21 percent of the consumers. A justification, such as "the rashes are minor and resulted from a new addition to our product," would be believed by 17 percent of the consumers.

Under the Canadian and Ontario Environmental Protection Act, liability for a business firm can run as high as ________ per day. $10 000 $500 000 $25 000 $2 000 000 $5 000 000