Exam 3: Conducting Business Ethically and Responsibly

Ethics are based both on individual beliefs and social concepts.

Identify and explain the rights of consumers. How did these rights originate? What can business firms do to deal with these rights?

When Procter & Gamble puts a toll-free number on its products so that consumers can call if they have questions or complaints, this is an example of the right to choose. the right to be informed. the right to health and safety. the right to be heard. the right to everyday low prices.

Ian is the president of a medium-sized manufacturing company. He wants to ensure that his company behaves in a socially responsible way. Which of the following is the greatest challenge facing Ian? Determining how to respond to the interests of one part of society which conflicts with the needs of another part of society Determining the contents of the code of ethics and what takes priority Determining when to conduct a social audit Knowing what social responsibility is Determining when to conduct ethical training for employees

Martha is the owner of a business that regularly imports certain agricultural commodities from countries with poor economic conditions. If she wants to help the citizens of those countries, how can she BEST do that? By including labels on her products indicating where the commodities come from By hiring people who have visited these countries and are familiar with the conditions there By opening an outlet in these countries and creating jobs for the people there By purchasing more of the commodities By shipping free products to these nations

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

If a politician sits on a board that grants money to companies and that executive owns a company that is applying for a grant from the board, he or she is most likely facing a(n) ethical dilemma. utility norm. illegal situation. conflict of interest. justice norm.

List and describe the four stances an organization can take concerning its obligations to society.

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 this fair"? utility rights justice caring reciprocity

After a hurricane hit Halifax a few years ago, local retailers increased the price of milk and gas by 50% in one day, even though all other stores in the province did not increase prices. These retailers were engaging in conflict-of-interest pricing. sharp business practices. crisis-based pricing. price gouging. It is not possible to tell from the information that is given.

With respect to the issue of counterfeit brands, it is correct to say that counterfeit brands used to be a big problem, but new legislation in various countries has reduced the problem considerably. counterfeit brands are a big problem in products like perfume and designer clothing, but less of a problem in pharmaceuticals and expensive wines. consumers benefit from counterfeit goods because they can get good products for lower prices. it is generally easy to tell the difference between counterfeit goods and the real thing. none of the above are correct.

Which of the following illustrates the defensive stance to social responsibility? Sears has started to support artists and performers. Many firms sponsor youth athletic teams. Tobacco companies place health warning labels on their products because they are required to do so by the government. Many organizations respond to requests for donations to community hockey teams, Girl Guides, and youth soccer programs. Many companies match employee contributions to approved causes.

How has the economic uncertainty of the last few years affected charitable organizations such as the United Way?

It is illegal to misrepresent a company's finances, but the situation regarding improper financial mismanagement is not so clear.

A business firm's influence on the ethical behaviour of its employees is very limited because their family and friends influenced their beliefs about right and wrong long before they joined the business firm.

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. Aligning the Pandora brand with a national nonprofit has many benefits. However, the CEO is still not convinced. Which of the following statements, if true, would support the argument made by the CEO to NOT tie sales of Pandora's breakfast oatmeal to the American Heart Association? The move might inspire competitors to seek similar such associations. Federal regulation of health-related claims has decreased in recent years. Pandora would garner public goodwill for the future. Associating with a nonprofit would lead to better relations with governmental agencies. If the nonprofit received negative publicity over something, the consumer reaction could have a spillover effect on Pandora.

In the case of irresponsibility toward investors, stockholders may be reluctant to take action because a management change may drive the stock price down. it's too much trouble. the creditors probably wouldn't support them. the board of directors will overrule them. company management will retaliate.

What are ethics? What influences the development of ethics? How can ethical values vary significantly from one person to another?

"The purpose of any company is to make a good product, provide good jobs, and make a profit. Any social responsibilities that take away from that are not the role of business." Agree or disagree with this statement, and support your position.

What is the difference between unethical behaviour and illegal behaviour?