Question 1

Social return on investment (SROI) helps companies to

Accepted Answer

A)  improve their financial return on investment. 
B)  increase employee satisfaction. 
C)  understand, manage, and communicate the social value of their activities for stakeholders. 
D)  respond to required government regulations on social responsibility 
E)  improve the level of ethics within the company. 
A)  improve their financial return on investment. 
B)  increase employee satisfaction. 
C)  understand, manage, and communicate the social value of their activities for stakeholders. 
D)  respond to required government regulations on social responsibility 
E)  improve the level of ethics within the company. C

Question 2

Suman wants to use the ethical norm of caring when making decisions. To do this, she should ask "Is this consistent with peoples' responsibilities toward each other?"

Accepted Answer

A) True 
 B)False  True

Question 3

What is the relationship between a social audit and the concept of sustainability?

Accepted Answer

A social audit is a systematic analysis of how a firm is using funds earmarked for its social-responsibility goals, and how effective these expenditures have been. A related element in a social responsibility program is the idea of sustainable development, which means pursuing activities that meet current needs, but which will not put future generations at a disadvantage when they attempt to meet their needs. Canadian businesses publish both social audits and sustainability reports that explain how the company is performing on issues such as the environment, employee relations, workplace diversity, and business ethics.

Question 4

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

Accepted Answer

A)  the right to choose. 
B)  the right to be informed. 
C)  the right to health and safety. 
D)  the right to be heard. 
E)  the right to everyday low prices. 
A)  the right to choose. 
B)  the right to be informed. 
C)  the right to health and safety. 
D)  the right to be heard. 
E)  the right to everyday low prices.

Question 5

Behaviour that conforms to individual beliefs and social norms about what is right and good is referred to as

Accepted Answer

A)  social reaction behaviour. 
B)  ethical behaviour. 
C)  generally accepted behaviour. 
D)  collusional behaviour. 
E)  motivational behaviour. 
A)  social reaction behaviour. 
B)  ethical behaviour. 
C)  generally accepted behaviour. 
D)  collusional behaviour. 
E)  motivational behaviour.

Question 6

Cartier Partners Financial Services Inc. provides the local swim team with a cash donation to help pay for the swim meet each year, but the team has to make its case to the company each year. Cartier's stance to social responsibility is

Accepted Answer

A)  defensive. 
B)  obstructionist. 
C)  accommodative. 
D)  proactive. 
E)  responsive. 
A)  defensive. 
B)  obstructionist. 
C)  accommodative. 
D)  proactive. 
E)  responsive.

Question 7

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?

Accepted Answer

A)  Beautymax can accept blame for the rashes and assure the public they will correct the problem immediately. 
B)  Beautymax can ignore the problem and just wait for it to go away. 
C)  Beautymax can offer an apology for the rashes it caused and offer to recall the product. 
D)  Beautymax can deny that Smooth caused any of the rashes but pull it from the market anyway. 
E)  Beautymax can monitor the Internet for any negative publicity and intervene on a case-by-case basis as soon as anything negative shows up. 
A)  Beautymax can accept blame for the rashes and assure the public they will correct the problem immediately. 
B)  Beautymax can ignore the problem and just wait for it to go away. 
C)  Beautymax can offer an apology for the rashes it caused and offer to recall the product. 
D)  Beautymax can deny that Smooth caused any of the rashes but pull it from the market anyway. 
E)  Beautymax can monitor the Internet for any negative publicity and intervene on a case-by-case basis as soon as anything negative shows up.

Question 8

Janet is the CEO of Xanadu Corp. She believes very strongly that the purpose of a business firm is to make as much money as possible as long as the business doesn't break the law while doing so. Janet is reflecting the view called managerial capitalism.

Accepted Answer

A) True 
 B)False

Question 9

Bruce padded his expense account. When confronted by his boss, he defended his actions on the grounds that the company's system for reimbursing expenses did not recognize all the expenses that salespeople incurred, and he was solving that problem by asking for expenses that he actually incurred. This is an example of the "pressure" factor that has been found to be important in explaining why unethical behaviour occurs.

Accepted Answer

A) True 
 B)False

Question 10

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. The public relations department of Pandora has recommended to the CEO that Pandora become involved in cause-related marketing to increase its positive brand image and goodwill for the company. The PR department recommends that the National Heart Association would be a good tie-in for the oatmeal line, and it could emphasize the heart-healthy aspects of the products. The CEO argues that aligning the products with the Heart Association would not be good for Pandora. Which of the following consumer survey results, if true, would support the argument made by the CEO?

Accepted Answer

A)  Fifty-nine percent indicate that too much publicity about a company's alignment with a charity leads to increased concerns about commercial gain. 
B)  Fifty-four percent say they are willing to pay more for a brand that is associated with a cause. 
C)  Sixty-six percent indicate they would switch brands to support a particular cause. 
D)  Seventy-eight percent state they are more likely to purchase a brand associated with a cause that they care about. 
E)  Eighty-four percent say that cause-related marketing increases the positive image of a company. 
A)  Fifty-nine percent indicate that too much publicity about a company's alignment with a charity leads to increased concerns about commercial gain. 
B)  Fifty-four percent say they are willing to pay more for a brand that is associated with a cause. 
C)  Sixty-six percent indicate they would switch brands to support a particular cause. 
D)  Seventy-eight percent state they are more likely to purchase a brand associated with a cause that they care about. 
E)  Eighty-four percent say that cause-related marketing increases the positive image of a company.

Question 11

The three general factors have been identified as important in causing individuals to behave in unethical ways are pressure, opportunity, and rationalization.

Accepted Answer

A) True 
 B)False

Question 12

After a hurricane hit Halifax, 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

Accepted Answer

A)  conflict-of-interest pricing. 
B)  sharp business practices. 
C)  crisis-based pricing. 
D)  price gouging. 
E)  It is not possible to tell from the information that is given. 
A)  conflict-of-interest pricing. 
B)  sharp business practices. 
C)  crisis-based pricing. 
D)  price gouging. 
E)  It is not possible to tell from the information that is given.

Question 13

The recent surge of products being called "light" led to an investigation by government agencies. This illustrates concerns about which of the basic consumer rights?

Accepted Answer

A)  Right to low prices 
B)  Right to choose what they buy 
C)  Right to safe products 
D)  Right to be informed 
E)  Right to be heard 
A)  Right to low prices 
B)  Right to choose what they buy 
C)  Right to safe products 
D)  Right to be informed 
E)  Right to be heard

Question 14

What is the difference between unethical behaviour and illegal behaviour?

Accepted Answer

Ethics are based on both individual beli

Question 15

Peter, the president of a small company, wants his employees to be aware that they should act ethically. Which of the following has proven most effective in improving ethical behaviour in a business firm?

Accepted Answer

A)  Reward managers who have secured an advantage for the firm, even if their behaviour might be seen by some people as unethical 
B)  Demonstrate top management commitment to high ethical standards 
C)  Do not publicly bring attention to unethical behaviour, instead deal with it privately 
D)  Fire all unethical employees 
E)  Do nothing to reinforce the undesirable behaviour and it will not be repeated 
A)  Reward managers who have secured an advantage for the firm, even if their behaviour might be seen by some people as unethical 
B)  Demonstrate top management commitment to high ethical standards 
C)  Do not publicly bring attention to unethical behaviour, instead deal with it privately 
D)  Fire all unethical employees 
E)  Do nothing to reinforce the undesirable behaviour and it will not be repeated

Question 16

"Cooking the books" to make a company's financial situation look better than it really is illustrates a behaviour that is

Accepted Answer

A)  ethical but illegal. 
B)  ethical and illegal. 
C)  unethical but legal. 
D)  unethical and illegal. 
E)  there is no consensus on how this behaviour should be classified. 
A)  ethical but illegal. 
B)  ethical and illegal. 
C)  unethical but legal. 
D)  unethical and illegal. 
E)  there is no consensus on how this behaviour should be classified.

Question 17

What is triple bottom line reporting?

Accepted Answer

A)  Measuring the social responsibility impact of decisions made in the production, marketing, and finance areas of a business firm 
B)  Measuring the social, environmental, and economic performance of a company 
C)  Measuring the social responsibility impact of decisions that are made by top, middle, and lower-level managers 
D)  Measuring the efficiency, effectiveness, and profitability of a business 
E)  Measuring the social responsibility impact of managers' technical skills, human relations skills, and conceptual skills 
A)  Measuring the social responsibility impact of decisions made in the production, marketing, and finance areas of a business firm 
B)  Measuring the social, environmental, and economic performance of a company 
C)  Measuring the social responsibility impact of decisions that are made by top, middle, and lower-level managers 
D)  Measuring the efficiency, effectiveness, and profitability of a business 
E)  Measuring the social responsibility impact of managers' technical skills, human relations skills, and conceptual skills

Question 18

Identify four issues of ethics in advertising.

Accepted Answer

Truth-in-advertising, advertis

Question 19

What is the first step in making ethical judgments?

Accepted Answer

The first step in ma

Question 20

Which of the following behaviours is illegal?

Accepted Answer

A)  Company executives encourage employees to invest in company stock while withholding information about financial problems. 
B)  An employee accepts a gift from a supplier in return for a large order. 
C)  A manager refuses to hire or promote a qualified visible minority in spite of company policy. 
D)  A manager underpays an employee, knowing that the employee can't afford to quit. 
E)  All of these actions are illegal. 
A)  Company executives encourage employees to invest in company stock while withholding information about financial problems. 
B)  An employee accepts a gift from a supplier in return for a large order. 
C)  A manager refuses to hire or promote a qualified visible minority in spite of company policy. 
D)  A manager underpays an employee, knowing that the employee can't afford to quit. 
E)  All of these actions are illegal.

Social return on investment (SROI) helps companies to

Suman wants to use the ethical norm of caring when making decisions. To do this, she should ask "Is this consistent with peoples' responsibilities toward each other?"

What is the relationship between a social audit and the concept of sustainability?

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

Behaviour that conforms to individual beliefs and social norms about what is right and good is referred to as

Cartier Partners Financial Services Inc. provides the local swim team with a cash donation to help pay for the swim meet each year, but the team has to make its case to the company each year. Cartier's stance to social responsibility is

Janet is the CEO of Xanadu Corp. She believes very strongly that the purpose of a business firm is to make as much money as possible as long as the business doesn't break the law while doing so. Janet is reflecting the view called managerial capitalism.

The three general factors have been identified as important in causing individuals to behave in unethical ways are pressure, opportunity, and rationalization.

After a hurricane hit Halifax, 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

The recent surge of products being called "light" led to an investigation by government agencies. This illustrates concerns about which of the basic consumer rights?

What is the difference between unethical behaviour and illegal behaviour?

Peter, the president of a small company, wants his employees to be aware that they should act ethically. Which of the following has proven most effective in improving ethical behaviour in a business firm?

"Cooking the books" to make a company's financial situation look better than it really is illustrates a behaviour that is

What is triple bottom line reporting?

Identify four issues of ethics in advertising.

What is the first step in making ethical judgments?

Which of the following behaviours is illegal?

Understanding the Canadian Business System

The Environment of Business

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 3: Conducting Business Ethically and Responsibly

Social return on investment (SROI) helps companies to

Suman wants to use the ethical norm of caring when making decisions. To do this, she should ask "Is this consistent with peoples' responsibilities toward each other?"

What is the relationship between a social audit and the concept of sustainability?

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

Behaviour that conforms to individual beliefs and social norms about what is right and good is referred to as

Cartier Partners Financial Services Inc. provides the local swim team with a cash donation to help pay for the swim meet each year, but the team has to make its case to the company each year. Cartier's stance to social responsibility is

Janet is the CEO of Xanadu Corp. She believes very strongly that the purpose of a business firm is to make as much money as possible as long as the business doesn't break the law while doing so. Janet is reflecting the view called managerial capitalism.

The three general factors have been identified as important in causing individuals to behave in unethical ways are pressure, opportunity, and rationalization.

After a hurricane hit Halifax, 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

The recent surge of products being called "light" led to an investigation by government agencies. This illustrates concerns about which of the basic consumer rights?

What is the difference between unethical behaviour and illegal behaviour?

Peter, the president of a small company, wants his employees to be aware that they should act ethically. Which of the following has proven most effective in improving ethical behaviour in a business firm?

"Cooking the books" to make a company's financial situation look better than it really is illustrates a behaviour that is

What is triple bottom line reporting?

Identify four issues of ethics in advertising.

What is the first step in making ethical judgments?

Which of the following behaviours is illegal?

Understanding the Canadian Business System

The Environment of Business

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters