Exam 3: Conducting Business Ethically and Responsibly

Robert,a CEO,is trying to decide whether to cut a budget item that is allocated to help construct shelters for the homeless.After getting advice from workers and considering his own ethical views,Robet decides to not cut these funds,even though the decision means that the company will likely make less profit as a result.What is the most likely reason Robert made this decision?

What is cheque kiting?

What are the four steps that must be taken when a firm decides that it wants to become socially responsible? Explain.

A conflict of interest occurs when two employees disagree about what course of action is best for the company.

Silky Soap Co.recently received complaints that its product (which was recently reformulated to use reduce costs)is causing users to experience skin rashes.Which of the following is NOT a strategic option to deal with the problem?

What is social responsibility?

Companies are legally required to have written codes of ethics.

The top management level at Brown Corp.has already publicly stated its commitment to being socially responsible.What is the next action that Brown Corp.needs to take if it wants to follow the four-step process for managing social responsibility programs?

The most conservative approach to social responsibility for a firm is the accommodative stance.

With respect to the issue of counterfeit brands,it is correct to say that

As a buyer for your company,you direct large sums of money to some suppliers when you make purchases of raw materials from them.One day,you receive an unsolicited $1000 cheque in the mail from one of the suppliers.The accompanying note says that you can use the money to buy some toys for your children.You consult your company's code of ethics and notice that employees are not allowed to accept gifts from suppliers for their own personal use.But the policy doesn't say anything gifts for family members,so you decide to use the card.Which of the following would not support your decision?

What are the ethical norms and the issues that they entail?

Business firms that engage in cheque kiting are acting in a socially responsible manner because such financial techniques result in higher profits,higher dividends,and higher stock prices,and these benefit shareholders.

With regard to the "cap and trade" system for trading carbon credits,it is correct to say that

Ken is using confidential information to gain from the purchase of sale of stock.Ken is guilty of

Jays Inc.dumped toxic chemicals in the river next to their factory.Upon being caught,Jays Inc.not only denied their wrongdoings,they went to great lengths to hide their behaviour.Jays Inc.is taking a(n)________ stance to social responsibility.

Your friend Bob works for an investment firm that is helping Computers-B-Us merge with Mega Computers.The news won't be released until next week.If you decide to act upon this information and make some stock purchases intending to split the profits with Bob,what can be said about your actions?

Ian is the president of a medium-sized manufacturing company.He wants to ensure that his company behaves in a socially responsible way.Which of the following is the greatest challenge facing Ian?

Which consumer right is violated by a company that restricts and interferes with competition?

The first step in the determination of whether a decision is ethical is to determine the most appropriate moral values.