Exam 2: Ethics and Social Responsibility in Business

You have been asked to complete this year's social responsibility report for the insurance industry.Which of the following statements would you include as a valid indication of socially responsible activities in this industry?

Consumers will probably pay in large part for cleaning up our environment through increased taxes or increased product costs.

Customers are so used to misleading advertising that it does not infuriate them anymore.

Customers expect a firm's products to

The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.

​Proponents of the socioeconomic model of social responsibility make all of the following arguments to support their position except

Most authorities agree that business ethics should be improved.

What led most directly to increased government involvement with regulating business and its dealings with society?

Improved water quality is not only necessary;it is attainable at no cost.

How can the government encourage ethical behavior? Give an example.

Echo Air Company (EAC)Echo Air Co.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAC management is not only concerned with doing things right,but also with doing the right things.Many of their decisions reflect this philosophy.Initially,the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAC management.As a result,the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAC also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place,there have been fewer ethical violations.Although employee salaries at EAC are not as high as those at competing firms,the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay,but that also results in higher profits.If EAC can maintain the relationship it has built with its employees and customers,it will have little difficulty keeping up its remarkable success. -Refer to Echo Air Company.Initially,employees were not willing to go to EAC management with ethical issues but would instead report them to the press.This is an example of

Tim worked in the steel industry in the early 1900s.Which most likely describes the amount of time Tim worked per week?

How does the economic model of social responsibility differ from the socioeconomic model of social responsibility?

Echo Air Company (EAC)Echo Air Co.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAC management is not only concerned with doing things right,but also with doing the right things.Many of their decisions reflect this philosophy.Initially,the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAC management.As a result,the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAC also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place,there have been fewer ethical violations.Although employee salaries at EAC are not as high as those at competing firms,the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay,but that also results in higher profits.If EAC can maintain the relationship it has built with its employees and customers,it will have little difficulty keeping up its remarkable success. -Refer to Echo Air Company.The principles that EAC choose to pride itself on show that the company has

If a company deals with violations of its ethical codes ____,the opportunity to be unethical will be reduced.

Each Saturday night,someone in the community called the local police to control the noisy,riotous activity at Ralph's Tavern.However,Mr.Ralph never took action on his own and ignored the problem.Eventually,local residents forced him out of business.Mr.Ralph might be in business today had he

Winner's United has a policy that no employees or their family members are eligible to win the big sweepstakes.This policy was likely implemented to

When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer,a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal,you will not get cancer.This is an example of

Lauren is the assistant manager of a midsized logistics firm.She believes her manager,Roger,has become carried away with supporting nonprofit organizations and encouraging employees to do community service.What argument would Laurenmost likely use to turn Roger to her point of view?

Which of the following best describes the trend in social responsibility models used by companies?