Deck 3: Social Trends, social Responsibility, and Making Ethical Decisions in Business

Question 1

Which of the following environmental factors is the most difficult for owners and managers to forecast,influence,or integrate into business plans?

A) social change
B) political change
C) legal change
D) economic change

Answer 1

A

Question 2

Baby boomers were born in the period from the late 1940s to the mid-1960s.This group is best characterized by which of the following?

A) They are committed to the idea of building up their personal savings.
B) They created a strong ethic of volunteerism for themselves.
C) They value travel and independence more than the other groups.
D) They experienced post-war affluence that influenced the importance of material goods and improvement of social status.

Answer 2

D

Question 3

What is the most important contributing factor to the required increase in Canada's population?

A) immigration
B) higher life expectancy
C) higher fertility rate
D) healthier life style

Answer 3

A

Question 4

The characteristics of being the first-generation of "latch-key" children (with working parents away all day),entering the job market during a period of economic recession or downsizing,and being cynical consumers who have had considerable exposure to media advertising,best represents which of the following groups?

A) Generation Y
B) Generation X
C) the baby boomers
D) the mature market

Question 5

Utilitarianism is best explained by which of the following?

A) It creates the best situation for all individuals.
B) It is difficult to implement because it is hard to predict how a decision will affect a large number of people.
C) It states that any act that goes against the rights of an individual is wrong.
D) It expresses the idea of fairness.

Question 6

Older consumers are best described by which of the following?

A) They have part-time employment to add to their incomes.
B) They are the most significant group with respect to their consumerism.
C) They enjoy spending freely in their retirement years.
D) They are reluctant to spend money unless they can make cash purchases.

Question 7

Amra Singh was walking through the mall near her home and found an expensive watch lying on the ground.The decision that she must make-to keep the watch for herself,or turn it in to the mall's lost-and-found counter-involves which of the following?

A) consumerism
B) cultural awareness
C) ethics
D) social reciprocity

Question 8

What are individual business ethics shaped by?

A) what the boss is seen to accept
B) the legal environment at work
C) personal choices and our environment
D) social responsibility of the company we work for

Question 9

In the PEST model of the business environment,the "S" represents which of the following concepts?

A) stability
B) standards
C) stakeholders
D) social

Question 10

In 1996,the Atlanta Olympic Committee designed and built a tall structure shaped like the Olympic Torch,for visitors to climb to get a view of the city.The design was not wheelchair accessible,as the required changes to the design would alter the structure's appearance significantly.The decision was that no one would be allowed to climb to the top.This decision can be associated with which philosophy?

A) preconventional morality
B) social responsibility
C) distributive justice
D) utilitarianism

Question 11

Paul Thomas was going to leave the gas station without paying for the gas he had just put into his car,when he noticed a police car pull up at one of the other pumps.He went into the cashier and paid because he was afraid he would get caught if he tried to get away without paying.Thomas is in which of the following stages of ethical development?

A) preconventional ethics
B) self-defined ethics
C) conventional ethics
D) ego-centred development

Question 12

Which of the following best reflects the Canadian Charter of Rights and Freedoms?

A) It is effective for those working for federally incorporated companies.
B) It is superordinate to any other laws that affect Canadians' rights and freedoms.
C) It applies only to employer-employee situations.
D) It relates to what is considered fair by prevailing standards of society.

Question 13

According to your text,which of the following demographic groups are described as "the most ethnically and socially diverse generation in history"?

A) the baby boomers
B) the mature market
C) Generation Y
D) Generation X

Question 14

Component lifestyles are important for businesses to consider for which of the following reasons?

A) They indicate consumer income.
B) They are important in domestic markets.
C) They increase the complexity of consumer buying habits.
D) They are constantly changing.

Question 15

Component lifestyle is a term that is described by which of the following behaviours?

A) choosing to consider work,family,and leisure as equally important
B) having a complex set of interests and choices
C) choosing to live near employment during the week,and in cottage country on weekends
D) having several careers that are varied in nature over several years

Question 16

What is the greatest social change that has impacted business in Canada over the past three decades?

A) globalization
B) the phenomenon of working women
C) a better educated work force
D) greater commuting distances for employees

Question 17

Which of the following is the study of people's vital statistics,such as their age,race and ethnicity,and location?

A) democracy
B) demographics
C) marketing
D) consumerism

Question 18

Which of the following represents the buying pattern of those with a simple lifestyle?

A) They will buy when the mood strikes them.
B) It is not an important factor in their buying behaviour.
C) They will buy less.
D) They will buy more.

Question 19

Today,a person could be a banker,vegetarian,mountain banker,single father and rock music fan; this is an example of which of the following?

A) growing consumer advocate
B) complex lifestyle
C) personal transition
D) component lifestyle

Question 20

Which of the following is a philosophy that focuses on the consequences of an action to determine if it is right or wrong? This philosophy expresses the idea that anything that negatively affects the majority of people in a situation is morally wrong.

A) utilitarianism
B) social responsibility
C) preconventional morality
D) distributive justice

Question 21

Which of the following is an example of ethical business activity?

A) The employee uses the company postage meter to put postage on personal letters.
B) The employee regularly tells jokes that make fun of blonde women.
C) The employee went to a movie one afternoon,telling others in the office that she had an appointment at a customer location.
D) The employee reports to his supervisor that he has witnessed a coworker taking home expensive company supplies such as printer cartridges.

Question 22

Which stage of ethical development is most likely to be seen in mature adults?

A) ego-centred
B) postconventional
C) conventional
D) preconventional

Question 23

The Toronto District School Board has established an employee assistance program for its employees.This program helps employees deal with personal issues such daycare,elder care,substance abuse,financial difficulties,and the need for marital and personal counselling.The school board as an employer is practising which of the following?

A) social responsibility
B) employee services
C) stakeholder satisfaction
D) macroeconomics

Question 24

Taking your firm's trade secrets to a new place of employment constitutes which of the following ethical violations?

A) hiding or divulging information
B) violating rules
C) taking unfair advantage
D) permitting organizational abuse

Question 25

Which of the following is the concern of businesses for the welfare of society?

A) social responsibility
B) consumer protection
C) the marketing concept
D) business ethics

Question 26

Which of the following is an example of an unethical business activity?

A) The employee reports his employer for making several illegal deductions from his pay.
B) The employee unknowingly gives out incorrect information.
C) The sales representative allows the customer to believe that his purchase would be delivered on time,as he believed this to be true himself.
D) The employee uses a company computer to check his results in an online betting transaction.

Question 27

Which of the following statements BEST describes ethics training?

A) The most effective ethics training begins with the development of a personal code of ethics.
B) Ethics training is formal training to develop awareness of inappropriate behaviour and to practice appropriate responses.
C) Ethics training is best done informally to allow employees to feel free to admit their mistakes.
D) One of the purposes of ethics training is to get employees to admit when and where they have acted unethically.

Question 28

The president of a company that manufactures plastic pipes for transporting crude oil considers how the firm's decisions will affect the welfare of society.He is expressing which of the following?

A) macroeconomics
B) social responsibility
C) consumerism
D) business ethics

Question 29

The chemical waste from a factory is at the legal limits that are allowed for disposal through drains and sewers on the factory property.Even though it is at legal limits,it could potentially harm wildlife along the nearby river,and could affect neighbouring farms and livestock through streams and ponds.The factory owners want to prevent this from happening,but it will mean that they need to spend nearly $3 million for new equipment,and this will mean eliminating 70 jobs.A company president who would implement the new equipment to reduce the chemical waste because it could harm the environment and surrounding community is in which stage of ethical development?

A) preventional
B) conventional
C) preconventional
D) postconventional

Question 30

Social responsibility goes beyond obligations provided by law or union contract.Which of the following represents two important aspects of social responsibility?

A) state and federal
B) voluntary and broad
C) open and lawful
D) public and private

Question 31

One of the indications of ethical business behaviour is which of the following?

A) how many mature workers are in the company
B) the number of rules,regulations,and guidelines provided by the company
C) how the company's senior management behaves
D) the perception of company rules by employees

Question 32

Individuals move from a self-centred viewpoint to consider the expectations of the society in which they live in which stage of ethical development?

A) conventional
B) self-defined
C) preconventional
D) societal

Question 33

The first step in making a good and ethical business decision is which of the following?

A) Learn to recognize unethical business activities when they occur.
B) Develop a business code of ethics.
C) Hire an ethics consultant.
D) Develop a personal code of ethics.

Question 34

Which of the following statements about the stages of ethical development is true?

A) A child who decides not to play with her mother's jewellery because she is afraid she will be punished is in a state of ego-centred ethical development.
B) An individual with conventional ethics is self-centred.
C) An adult who refuses to visit his aunt in the hospital because the visit will cause him to miss Hockey Night in Canada on television is in the postconventional stage of ethical development.
D) An individual in the preconventional stage of ethical development would be more concerned about rewards and punishment than about what is right or wrong.

Question 35

Which approach to ethics has been evident when it comes to cyberspace?

A) concentrated
B) focused
C) laissez-faire
D) secret

Question 36

Vonda Bao works for a furniture store that was near bankruptcy.She developed a marketing promotion where customers could buy one room of furnishings,and get a second room of equal value free.Her employer will be able to offer this promotion if,just prior to advertising,he doubles all of the prices.Vonda knows that the advertising will make customers believe they are getting a good deal,and she thinks her employer should go ahead with the plan because it will allow the store to earn enough to stay in business.Vonda is at which stage of ethical development?

A) preconventional
B) conventional
C) societal
D) self-defined

Question 37

A code of ethics can BEST be characterized by which of the following?

A) It can offer a lengthy and detailed set of guidelines to employees.
B) It is considered a public relations tool.
C) It provides employees with the knowledge of what their company expects with regard to their responsibilities and behaviour.
D) It summarizes the company's goals,policies,and priorities.

Question 38

People choose between right and wrong based on which of the following?

A) what others are doing
B) their desire to please the boss
C) their fear of discovery
D) their personal code of ethics

Question 39

Walmart ran a series of advertisements in trade journals with the headline " We're Looking for Quality Products That Are Guaranteed Not to Last," meaning products that can be reused or recycled.This concern for the environment is one way that Walmart demonstrates which of the following?

A) macroeconomics
B) social responsibility
C) the marketing concept
D) environmental services

Question 40

Codes of ethics can have an impact in which of the following ways?

A) They provide informal guidelines about dealing with ethical matters.
B) They deal only with the employees' relationships with customers.
C) They describe common ethical decisions faced by employees.
D) They may be influential in determining a person's decision-making behaviour.

Question 41

A retailer allows its employees to handle customer complaints without having to ask for permission or directions from management.Which of the following activities would this policy encourage?

A) employees feeling empowered to help customers
B) employees ignoring the rights of its customers
C) employees actively helping customers
D) employees facing an ethical decision

Question 42

Which of the following statements about social responsibility is true?

A) The federal government has written laws that require businesses to act in a socially responsible way.
B) Companies that exhibit corporate philanthropy are not acting in a socially responsible way.
C) The four components of the social responsibility pyramid model are equally important.
D) The obligation that a business has to act in a socially responsible way extends beyond shareholders,to include employees,suppliers,consumers,and the community.

Question 43

Which of the following is the practice of limiting investments to companies that behave in accordance with the investor's beliefs about ethical and social issues?

A) strategic giving
B) social investing
C) investor paternalism
D) corporate philanthropy

Question 44

A homebuilder who disposed of asbestos shingles by burying them on the buyer's property may please the home buyer because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of the crime.At which stage of the social responsibility pyramid is the builder most likely operating?

A) ethical
B) economic
C) stakeholder
D) legal

Question 45

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle.Typically when a person who has lost the weight leaves the program,he or she regains the weight.This phenomenon is almost as unhealthy for the body as the excess weight.Businesses operating these kinds of weight-loss programs are engaged in which type of behaviour?

A) illegal and irresponsible
B) legal and irresponsible
C) legal and responsible
D) illegal and responsible

Question 46

When asked about an idea for a new product,a socially responsible manager in the 21st century might say which of the following?

A) "If it's profitable,let's make it."
B) "We can make the product,but what about the social effects?"
C) "What are the tax implications if we make this product?"
D) "How many do we have to sell to make a profit?"

Question 47

Which of the following is the practice of charitable giving by corporations?

A) financial empowerment
B) ethical responsibility
C) economic responsibility
D) corporate philanthropy

Question 48

Royal Bank gives money to support performing arts presentations in schools.This is an example of which of the following behaviours?

A) corporate philanthropy
B) ethical responsibility
C) financial empowerment
D) economic responsibility

Question 49

Which term represents all of the individuals or groups to whom a business has a responsibility?

A) stakeholders
B) lobby groups
C) shareholders
D) consumers

Question 50

Which of the following is the most accurate statement concerning social investing?

A) It has little impact on whether a company chooses to operate in a socially responsible way.
B) It is the practice of limiting investments to companies that have the ethical policies that match those of the investor.
C) It was more popular in the 1960s than it is today.
D) It is a type of corporate philanthropy.

Question 51

Which of the following would be stakeholders for a manufacturer of agricultural pesticides?

A) people who work for the competitor in the United States
B) the farmers who buy the products
C) truckers who pass the plant on the highway
D) government officials who set income tax rates

Question 52

The highest level of the corporate social responsibility pyramid is represented by which of the following?

A) philanthropic (charitable)responsibilities
B) economic responsibilities
C) responsibilities to stakeholders
D) legal responsibilities

Question 53

A company has achieved which level of responsibility when it has met its ethical,legal,and economic responsibilities?

A) global
B) altruistic
C) societal
D) philanthropic

Question 54

The employees,the wood suppliers,the customers,and the government inspectors in a company that manufactures fine wooden office furniture are described as being which of the following?

A) partners
B) shareholders
C) investors
D) stakeholders

Question 55

A company can be concerned about which of the following types of responsibilities after it has met its economic and legal responsibilities?

A) societal
B) stakeholder
C) ethical
D) cultural

Question 56

The base of the corporate social responsibility pyramid is represented by which of the following?

A) responsibilities to stakeholders
B) economic responsibility
C) legal responsibility
D) philanthropic responsibility

Question 57

The vast majority of businesses exhibit which two dimensions of social responsibility?

A) illegal and responsible
B) illegal and irresponsible
C) legal and irresponsible
D) legal and responsible

Question 58

Peter Drucker,a well-known management scholar,has said that companies should be evaluated on which two basic dimensions?

A) profitability and philanthropy
B) customer satisfaction and profitability
C) legality and profitability
D) legality and responsibility

Question 59

Corporate philanthropy is best described by which of the following?

A) It is defined as the corporation's responsibility to satisfy the needs of its investors.
B) It can be either a cash or noncash donation.
C) It is not a way that most companies express their social responsibilities.
D) It is the practice of limiting investments to companies that behave in accordance with the investor's code of ethics.

Question 60

Martin's stock portfolio includes only companies using recycled components in their manufacturing process.Martin is a strong believer in environmental protection,and his way of expressing that belief is by which of the following?

A) ethical giving
B) strategic giving
C) social investing
D) social paternalism

Question 61

Cash donations of equipment and products and support for volunteer efforts of employees are all aspects of which of the following?

A) corporate philanthropy
B) whistle blowing
C) social contract
D) social responsibility

Question 62

The impact of working women has been overestimated as a factor in social change.

Question 63

Component lifestyles have evolved because consumers can choose from a growing number of goods and services,and most have the money to exercise more options.

Question 64

A trend today is toward a new "social contract" or understanding between employer and employee.Which of the following aspects of job security is suggested by the contract?

A) It is no longer possible.
B) It is the responsibility of investors.
C) It is the responsibility of the employer.
D) It is practised only in large organizations.

Question 65

Which of the following statements about whistle blowers is most accurate?

A) The protection for whistle blowers in Canada is primarily related to health and safety issues.
B) A whistle blower must be an employee of the organization.
C) There have been very few reported instances of whistle blowing in Canada.
D) There is no protection for whistle blowers in Canada.

Question 66

Which of the following is the practice of tying philanthropy to the corporate mission or goals,and targeting donations to regions where the company operates?

A) social investing
B) strategic paternalism
C) strategic giving
D) social philanthropy

Question 67

Generation Y individuals tend to enjoy participating in high action activities.

Question 68

A multinational company that implements ethical guidelines within the organization in the host country will foster which of the following behaviours?

A) resentment in the host country
B) resentment in the home office
C) respect for local laws
D) respect for both local and international laws

Question 69

Demographics is the study of people's vital statistics,such as their age,race and ethnicity,and location.

Question 70

Which of the following are aspects of the new social contract trend between employer and employee?

A) The employee will always have job security.
B) The employee has the right to pay that reflects his or her contribution.
C) The employee cannot demand interesting work.
D) The employee is not responsible for finding ways to add value to the organization.

Question 71

Because social factors such as attitudes,values,and lifestyles influence consumers' choices,it is difficult for business to predict what will appeal to a 34-year-old married woman,living in the suburbs,working in an urban downtown location,with 2 children who play soccer.

Question 72

Demographics can be used to try to predict or forecast buying patterns among a population.

Question 73

Component lifestyles refers to buying goods and services at different stages of life.

Question 74

Working women respond to marketing approaches in the same way as working men do.

Question 75

Which of the following statements is most accurate in relation to global ethics?

A) A multinational corporation should involve stakeholders in the host country in decision making.
B) Canadian businesses must adhere to the ethics of the host country.
C) A multinational corporation should make only short-term commitments to the host country.
D) The global standards of the company should override local practices and customs.

Question 76

In evaluating an ethical problem,managers can use which of the following tests to determine the most ethical response?

A) three questions test
B) whistle-blowing test
C) social responsibility test
D) social contract test

Question 77

Computer firms that link their product donations to schools with their corporate goals are practising which of the following?

A) a social contact
B) strategic giving
C) global ethics
D) social investing

Question 78

Trends in the social environment are an aspect of the PEST model of the business environment.

Question 79

There is a strong business case for practising business integrity and behaving in a socially responsible manner.

Question 80

Home Depot,the building store company,supplies all the materials and the labour expertise for Habitat for Humanity,a charitable home-building program.Senior management believes that this type of philanthropy better reflects the company's commitment to the community than simply donating money to charitable causes.This is an example of which of the following?

A) social investing
B) strategic giving
C) social philanthropy
D) strategic paternalism