Exam 3: Conducting Business Ethically and Responsibly

What are the four major areas of social responsibility? Provide an example of each.

All of the following groups are organizational stakeholders except employees. investors. customers. competitors. All of these groups are organizational stakeholders.

What is unethical behavior?

Which of the following is the greatest challenge in meeting a firm's social responsibility? Determining when to conduct ethical training Determining the contents of the code of ethics Determining when to conduct a social audit Knowing what social responsibility is Determining how to respond to the interests of one part of society (e.g., investors) which conflict with the needs of another part of society (e.g., customers)

Carl and Kelly have opened a gymnastics center. If they want to behave in a socially responsible fashion, which action should they definitely avoid? Purchasing substandard gym equipment Advertising methods that are intended to increase profit Initiatives that decrease the satisfaction of investors Doubling enrollment fees for the program Providing attractive salaries for employees

Wilson Products installed a low-quality fire alarm in its facility in compliance with local regulations. The owner stated, "We've never had a fire and we don't actually need such a system, but I am forced to install it because of local regulations. I therefore didn't want to pay too much for the system." Which of the following stances toward social responsibility is evident here? obstructionist accommodative defensive proactive conservative financial management

Steve Beatty, the head salesperson of a computer company, contracts with a supplier for technical equipment. Just before the winter holiday, a greeting card comes to his home address from the president of the supplier. In it, he finds a Best Buy gift card worth $500, with a note that says, "Go buy some toys for the kids." His children are excited, because they had been looking forward to getting some newly released video game equipment. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use. It does not specifically say that gifts for family members are included. He decides to keep the card. Which of the following, if true, most clearly makes Beatty's action professionally unsupportable? The supplier's low prices have helped the computer company remain competitive with rival companies in its local market. The supplier needs continued business from the computer company to remain financially viable. Beatty is not the only person responsible for recommending which bids to accept from suppliers. Beatty's work contract states that employees must report all gifts from people associated with firms with which they do business. Rumor has it that other employees also received similar gift cards from the supplier and did not report them.

What is the difference between "ethics" and "business ethics"? The former refers to beliefs about what is right and wrong, while the latter doesn't deal with right and wrong, only with economic issues. The former refers to a restricted range of acceptable behaviours, while the latter refers to a much broader range of acceptable behaviours. There are no differences between the two. The former refers to beliefs about what is right or wrong, while the latter refers to behaviours by managers or employees. None of these statements are accurate.

There are four areas of concern regarding ethics in advertising. They are truth-in-advertising, misleading pricing, bait-and-switch advertising, stealth advertising. advertising of counterfeit brands, stealth advertising, morally objectionable advertising, and truth-in-advertising. bait-and-switch advertising, advertising of counterfeit brands, stealth advertising, and morally objectionable advertising. truth-in-advertising, misleading price advertising, celebrity advertising, and morally objectionable advertising. misleading price advertising, truth-in-advertising, celebrity advertising, and advertising claims about product performance that are not true.

How do issues of social responsibility and ethics affect small business?

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 ethical ________norm would ask "Does this optimize the satisfaction of all constituencies?" utility rights justice caring reciprocity

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. The CEO of Beautymax Products is horrified by the negative publicity and wants immediate crisis management performed by the public relations department. The public relations department provides a list of strategic options for the CEO to deal with the bad publicity. Which of the following statements, if true, would NOT be a strategic option for the CEO? Beautymax can accept blame for the rashes and assure the public they will correct the problem immediately. Beautymax can ignore the problem and just wait for it to go away. Beautymax can offer an apology for the rashes it caused and offer to recall the product. Beautymax can deny that Smooth caused any of the rashes but pull it from the market anyway. Beautymax can monitor the internet for any negative publicity and intervene on a case-by-case basis as soon as anything negative shows up.

Xanex Corp. will respond to requests for donations from certain charitable organizations, but it will not seek them out. Xanex has adopted a defensive stance to social responsibility.

Joe paid his subordinate John less than John deserved because Joe knew that John needed the job badly. Joe's behavior is illegal but not unethical. unethical but not illegal. both illegal and unethical. neither illegal nor unethical. It is not possible to say without determining how John feels about his pay.

Ensyn Corp. converts sawdust into liquid fuel by blasting wood waste with a sand-like substance that is heated. This use of plant waste to produce energy is known as recycling. biomass. green power. toxic waste conversion. exajoules.

Marilyn padded her expense account. When confronted by her boss, she defended her actions on the grounds that she was not paid enough for her work, so she had to supplement her salary by padding her expense account. This is an example of the "opportunity" factor that has been found to be important in explaining why unethical behaviour occurs.

Ethical behaviour is behaviour that conforms to individual beliefs and social norms about what is right and good.

Business firms can show their social responsibility toward employees by providing a safe workplace that provides equal employment opportunities and is free of harassment.

The Personal Information Protection and Electronic Documents Act (PIPEDA) requires organizations to collect certain information about employees and report that information to the federal government.

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. After Beautymax dealt with the negative publicity from the rashes caused by Smooth, the public relations department proposed developing some proactive prevention plans. The vice president argues that such plans are a waste of time and not necessary. Which of the following statements, if true, would NOT support the public relations department's argument for using proactive prevention crisis management plans? Proactive prevention crisis management would anticipate problems, such as potential recalls, and have plans in place to deal with them. Proactive prevention crisis management would prepare plans to deal with emergencies, such as their soap plant catching on fire, and designate a disaster-management center, along with media and employee contact people. Proactive prevention crisis management would publicize Smooth's connections to the gold-medal-winning women's gymnastics team. Proactive prevention crisis management would use enhancements to increase desirable outcomes in the public eye by characterizing Smooth as eco-friendly because of the packaging. Proactive prevention crisis management would protect the company from legal action due to false advertising.