Exam 2: Business Ethics and Social Responsibility: Doing Well by Doing Good

How did Kraft demonstrate its commitment to socially responsible policies?

Which of the following behaviours is a company practising when it enforces supplier contracts with foreign countries that state that child labour will not be used to produce its products?

What is one of the most challenging issues for international businesses?

Every January Procter & Gamble distributes special coupons for some of its leading brands and pays the Special Olympics 10 cents for every redeemed coupon. This tie-in between Procter & Gamble and the Special Olympics is an example of cause-related marketing.

How do business ethics and individual ethics differ?

What establishes expectations for ethical behaviour at all levels of the organization (from CEO to housekeeping personnel)?

What does "corporate philanthropy" refer to?

The "double bottom line" referred to in a social audit measures a firm's philanthropic activities and its hiring practices.

Jim was low on money and had access to the coffee fund at work (employee contributions to buy more coffee for the office coffee machine). He had been with his company for over 12 years without incident. He decided to take $15 from the coffee fund, thinking that no one would notice. This is an example of an ethical lapse.

Total Bedlam Video Games has had the number one action video game on the market for the past two years. The company is currently working on a sequel to the game, with better video and audio and several new types of missions. While the old game still works fine and should retain a loyal following, the company hopes that its new game will rapidly gain market acceptance due to its many enhancements. This represents a strategy known as planned obsolescence.

Kleen Things, a mobile dry-cleaning service, provides pick-up and drop-off services to its customers. Although there is a delivery/pick-up charge, Kleen Things offers a 50% discount if customers return the hangers. This is an example of sustainable development.

Studies have shown that as long as a company establishes a written code of ethics, it doesn't really have to actively enforce that code in order for it to be effective.

An example of a socially responsible employer is one that responds to the ongoing employee search for a balance between work and the rest of their lives.

What does a nation's legal system provide businesses with when they establish a code of ethics?

Janet reasons, "It's wrong to lie, BUT it is okay to overstate my expense account on my last trip, because I really need the money and the company hasn't given me a raise in the past year." What is this employee using to fit the situation at hand?

All acts that are illegal must also be unethical.

Which of the following represents a kind of two-faced thinking that is dangerous because it can help people rationalize bigger and bigger ethical deviations?

What is cause-related marketing, and what does it seek to accomplish? Give an example of how this strategy can be employed. (You can either describe a real-world example, or you can pick a well-known company and describe a way in which they could implement such a strategy.)

Which of the following behaviours has the goal of meeting the needs of the current generation without harming the ability of future generations to meet their needs?

A social audit evaluates how well a firm is meeting its ethics and social responsibility objectives.