Exam 4: Responding to the Ethical and Social Environment

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News Corporation is alleged to have tapped phones and bribed police in the UK to get leads on stories. It failed ____.

(Multiple Choice)
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The success of any culture to promote ethical behavior in a society depends on

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The existence of laws and regulations makes it necessary for companies that strive to be responsible to their stakeholders to concentrate first and foremost on government.

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When IBM makes large contributions to the performing arts, it is an example of which general area of social responsibility?

(Multiple Choice)
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Which of the following is NOT one of the means by which businesses typically attempt to influence government?

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The ethical norm justice, means whether a particular act optimizes what is best for the organization's constituencies.

(True/False)
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Firms that adopt a(n) ____________________ approach take to heart the arguments in favor of social responsibility. They view themselves as citizens in a society and seek opportunities to contribute.

(Short Answer)
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Describe the three emerging ethical issues in business today.

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The highest degree of social responsibility that an organization can exhibit is referred to as the proactive stance.

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Cheryl D. Eckard worked at GlaxoSmithKline (GSK).  She  revealed contamination problems at GSK's manufacturing operations, which led to a $750 million settlement with the U.S. government.  GSK was charged with manufacturing and selling adulterated pharmaceutical products. Eckard was awarded $96 million in 2010.   She was a(n) ____________________ .

(Short Answer)
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If competitors from different countries are giving bribes to get contracts in developing countries, it is acceptable under U.S. law that a U.S. company can do the same if it can show competitive reasoning.

(True/False)
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The Equal Employee Opportunity Commission is one agency involved in oversight of public companies. This is a form of ____________________ regulation.

(Short Answer)
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The inclusion of a biologist in decisions that affect the local community is an example of which area of social responsibility?

(Multiple Choice)
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The University of Michigan rented the stadium to a couple, both graduates, for their wedding on the fifty yard line. The couple said it was a dream come true. This is an example of

(Multiple Choice)
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Information technology and privacy continues to be an ethical issue.

(True/False)
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Which of the following is a basic area of government regulation of business?

(Multiple Choice)
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The Sarbanes-Oxley Act requires the ____ to vouch for the truthfulness and fairness of the firms' financial disclosures.

(Multiple Choice)
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Match the following. You may use a response once, more than once, or not at all.
Firm does as little as possible in the area of social responsibility
Direct regulation
Highest degree of social responsiveness
Lobbying
Firm goes beyond legal requirements if doing so is seen to be in the interests of the organization
Organizational constituent
Correct Answer:
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Premises:
Responses:
Firm does as little as possible in the area of social responsibility
Direct regulation
Highest degree of social responsiveness
Lobbying
Firm goes beyond legal requirements if doing so is seen to be in the interests of the organization
Organizational constituent
Tax incentives to spend money a certain way
Indirect regulation
Firm meets statutory requirements placed on it but does no more
Whistle-blowing
Moral standards about what is right and wrong
Ethical compliance
Official approach to social responsibility
Accommodative stance
Formal representation of a company or group of companies before political bodies
Obstructionist stance
Government establishes laws and rules that dictate what businesses can and cannot do
Political action committee
Politicians and executives in the same social circles influence each other
Defensive stance
Influence tactics to gain support that are legal
Personal contacts
An organization created to solicit and distribute money to political candidates
Proactive stance
Creditors
Ethics
Disclosure of illegal conduct
Favors
(Matching)
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For every pair of socks purchased from Bomba, the company donates one pair of socks to a homeless shelter. This is an example of the ______ approach to social responsibility.

(Multiple Choice)
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Which of the following is part of the organizational context in which ethical/unethical behaviors occur?

(Multiple Choice)
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