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

The U.S. Sarbanes-Oxley Act requires CEOs and CFOs to review the company's financial records and verify that their contents are valid.

The most socially responsible companies establish codes of conduct for their vendors that include policies pertaining to which of the following?

What is the main purpose of a written code of ethics?

According to a group of residents who live in a neighbourhood a few kilometres from an Early Oil Company refinery, the plant's emissions are a likely cause of severe headaches and other health problems among young people. Since these residents are not customers, employers, or investors in the company, Early Oil has no social responsibility to these individuals.

A question to ask when making a decision based on individual ethical beliefs is: Could you defend your decision on national television?

What is the term for developing and promoting environmentally sound products and practices to gain a competitive edge?

Consumerism is an accepted social movement pertaining to the responsibility organizations have to customers.

Which of the following terms refers to how companies contribute to the well-being of society?

A canoe and recreation club recently filed lawsuit against a number of manufacturing plants located along a major river. In the lawsuit, the club claimed that the plants have failed to adequately treat the waste that is being dumped into the streams and waterways, thus adversely affecting the recreational opportunities available to club members. Which term best describes the club members in this scenario?

What are two of the greatest ethical challenges faced by firms in the global arena?

When a business makes a mistake, even a sincere apology cannot restore the company's reputation.

Stakeholders play an active role in keeping businesses socially responsible.

Define the stakeholder approach to social responsibility. Provide a key point about each of three different stakeholders in this approach.

Ethics and social responsibility are just two different terms that mean the same thing.

Companies that protect whistleblowers encourage employees to be forthcoming with information that could be detrimental to the company.

The law regulates standards of behaviour; however, it does not enforce ethical norms. Therefore, companies should focus on the legality of their actions and not worry about their ethical implications.

Harbour Paint Products Inc. proactively implemented an incentive program that rewarded employees for soliciting customer feedback on its new deck stain product. Outside sales professionals, inside customer service representatives, and partner retail associates were asked to contribute a minimum of seven customer impressions (positive or negative) each week into a company marketing database. What did this program promote?

"Carbon footprint" refers to the improvements a company initiates within its community.

Define corporate philanthropy and corporate responsibility. Explain how each contributes to society.

Describe how organizations dedicated to social responsibility assist businesses in meeting their goals.