Deck 5: Ethics and Social Responsibility

Question 1

One strategy guaranteed to displease your customers is to:

A)focus on cost and quality control systems within your organization.
B)shift the production of goods to foreign facilities and layoff Canadian workers.
C)delight them with a quality product at a fair price.
D)practice deception regarding product safety issues.

Answer 1

D

Question 2

Determining what is involved for a firm to be socially responsible:

A)varies from industry to industry.
B)helps government officials develop appropriate legislation.
C)is easy.
D)varies even among those who are interested in corporate responsibility.

Answer 2

D

Question 3

The position a firm takes on issues that affect the corporation as well as society is known as its:

A)corporate policy.
B)target posturing.
C)political philanthropy.
D)structural positioning.

Answer 3

A

Question 4

has been accused by human rights and labour groups of treating its workers poorly while lavishing millions of dollars on star athletes to endorse its products.

A)McDonald's
B)Phillips-Van Heusen
C)Sears
D)Nike

Question 5

Organizational ethics are learned by:

A)tracking the failures of those who are caught in business scandals.
B)attending business classes and regularly taking notes.
C)observing the actions of others.
D)attending corporate responsibility seminars.

Question 6

Ethics and legality are:

A)exactly the same.
B)the only two steps to consider during any business action.
C)two different things.
D)essentially the same.

Question 7

The majority of CEOs blame unethical employee conduct on:

A)the breakdown of traditional religious institutions.
B)a failure of leadership to establish ethical standards.
C)the nation's business schools that tolerate unethical behaviour in students.
D)the increase in lawsuits used to avoid personal responsibility.

Question 8

A(n)_ _-based ethics code emphasizes the prevention of unlawful behaviour by increasing control and penalizing wrongdoers.

A)integrity
B)compliance
C)legal
D)corporate responsibility

Question 9

One problem of conducting a social audit is:

A)the primary focus of management is on the interests of stakeholders.
B)governmental "red-tape."
C)determining what should be measured and how to calculate the effect on society.
D)that most businesses are really not very concerned with these issues.

Question 10

As a new employee,Vanessa has heard her boss say,"Do whatever it takes to meet your sales quota.However,anyone caught violating a law will be immediately fired".Vanessa recognizes this as a(n)-based code of ethics.

A)personal responsibility
B)compliance
C)Internet
D)integrity

Question 11

refers to the standards of moral behaviour.

A)Legality
B)Integrity
C)Ethics
D)Responsibility

Question 12

Management and employees at Boyer Enterprises are given time off each year to work in local charities.This firm clearly practices:

A)corporate philanthropy.
B)community mediation services.
C)social irresponsibility.
D)participative funding.

Question 13

Which of the following describes charitable donations by corporations to nonprofit organizations?

A)Structural commitment
B)Corporate strategy
C)Corporate responsibility
D)Corporate philanthropy

Question 14

The first step when facing an ethical dilemma is to ask:

A)Is it balanced?
B)How will it make me feel about myself?
C)Is it legal?
D)Is it ethical?

Question 15

Treating others unfairly can result in retaliation from the injured party.This will likely create a:

A)win-win situation.
B)lose-lose situation.
C)Golden Rule application.
D)lose-win situation.

Question 16

A phone call to a government official by an employee of the XYZ Corporation disclosed the deception and dishonesty of the firm's accounting records.This employee played the role of a:

A)cheerleader.
B)horn blower.
C)whistleblower.
D)moral policeman.

Question 17

In an effort to help employees resist the pressure to make an unethical decision,the Johnston Petroleum Company has communicated their code of ethics statement to their suppliers,subcontractors,distributors,and customers.This approach is consistent with a(n):

A)compliance-based ethics code.
B)response to a government mandate.
C)personal responsibility commitment.
D)integrity-based ethics code.

Question 18

Ethical problems and issues of social responsibility are:

A)not unique to Canada.
B)less important now than in the past.
C)unique to firms involved in global trade.
D)unique to Canada.

Question 19

The triple-bottom line measures:

A)economic,social,and environmental parameters.
B)profits,people,and places.
C)social audit performance.
D)public private partnerships.

Question 20

Which of the following is not part of a compliance-based ethics code?

A)awareness of the relevant laws.
B)shared accountability among employees.
C)increased control over employee actions.
D)penalties for wrongdoers.

Question 21

All of the following are reasons why a business should be managed ethically except:

A)to please customers,employees,and society.
B)to attract new customers and retain existing customers.
C)because strict global regulations require it.
D)because it is the right thing to do.

Question 22

Environmental quality is considered to be a public good.This means that:

A)society places a higher value on private goods and services.
B)everyone enjoys a cleaner environment regardless of who pays for it.
C)ultimately it is the public that pays for environmental clean-up.
D)businesses have a responsibility to minimize their environmental pollution.

Question 23

Corporate is the concern businesses have for the welfare of society.

A)policy
B)responsibility
C)philanthropy
D)social responsibility

Question 24

All of the following are characteristics of an effective ethics officer except:

A)capacity to serve as a counselor and an investigator.
B)good communication skills.
C)a background in human resource management.
D)ability to relate with employees at every level of the company.

Question 25

When working with international firms,Canadian businesses:

A)expect socially responsible behaviour from their business partners.
B)feel that their responsibility is limited to Canada.
C)try to avoid judging their international business partners by Canadian standards.
D)tend to ignore the ethics of their international partners.

Question 26

Establishing a formal code of ethics is:

A)growing in popularity.
B)more common with small businesses than large businesses.
C)unnecessary given the level of government regulation.
D)mandated by the Corporate and Criminal Fraud Accountability Act.

Question 27

One factor causing businesses to vigorously enforce ethical standards is the:

A)desire to eliminate employee turnover.
B)evasion of social audit measurements.
C)fear of negative publicity.
D)focus on criminal penalties.

Question 28

Obeying the law is ethical behaviour.

A)unlikely to lead to
B)the opposite of
C)the first step toward
D)essentially the same as

Question 29

Several outside groups regularly monitor the activities of Metro Chemical Corporation.These groups are interested in the firm's involvement and enforcement of their ethical and social responsibility policies.Who of the following is the least likely to be among the "watchdog" groups?

A)The president of the union representing the workers at the chemical company.
B)Overseers from the World Trade Organization (WTO).
C)A student of environmental engineering attending a local college.
D)The financial officer of a church with funds invested in the chemical company.

Question 30

When it comes to social responsibility,some people feel that "before you can do good,you must do well".This reflects a firm's primary responsibility is to their what?

A)customers.
B)community.
C)investors.
D)employees.

Question 31

Which of the following would be a unique focus of an integrity-based ethics code?

A)Increased penalties for code violators.
B)Shared accountability among employees.
C)Improved awareness of the relevant laws.
D)Increased control over employee actions.

Question 32

Which of the following is the most important step to help improve Canada's business ethics?

A)Training.
B)Enforcement.
C)Middle management support.
D)Identification of the organizational ethics officer.

Question 33

A friend offers to share with you a term paper she prepared for her "Introduction to Business" class last semester.When you tell her that it wouldn't be fair,she reminds you of your habit of reading an entire Harry Potter book at the local bookstore without paying for the book.Which ethics-based question would be the most helpful in evaluating these situations?

A)Who wins and who loses?
B)Am I acting fairly?
C)Is it legal?
D)Will I get caught?

Question 34

Purposefully understating your firm's income to avoid paying higher taxes is an example of:

A)illegal behaviour.
B)an accepted business practice.
C)a firm's responsibility to its owners.
D)tax accountants doing their job.

Question 35

Which of the following activities would generally not be included in the social audit of a business?

A)Employee-related activities.
B)Support for higher education,the arts,and non-profit groups.
C)Comparisons of profits versus the profits of other firms.
D)Consumer activities such as product safety,honest advertising,and fair pricing.

Question 36

Insider trading involves:

A)the exchange of assets between companies in the same industry.
B)a payment or reward for socially conscious behaviour.
C)investors using private company information to further their own fortunes.
D)an Internet activity that establishes a barter exchange system between businesses.

Question 37

Many businesses have developed internal procedures to enforce their ethical policies.Which of the following is an example of an outside group urging ethical behaviour in businesses?

A)foreign trade representatives
B)suppliers
C)management teams
D)union officials

Question 38

Environmental quality is known as a _.

A)public good
B)a role for only the public sector
C)pluralistic approach
D)a private matter

Question 39

Sustainable development means:

A)implementing environmental,economic and social considerations into decision making.
B)selling your product in the developing world.
C)using processes to sustain a business through good times and bad.
D)implementing a social audit.

Question 40

While it is easy to criticize business for moral and ethical shortcomings,it is important to remember that:

A)when in Rome,do what the Romans do.
B)the ends justify the means.
C)each of us have moral shortcomings as well.
D)values must sometimes be compromised to satisfy investors' demand for profits.

Question 41

When management's primary objective is to the economic interests of shareholders,this is known as what?

A)pluralistic approach
B)strategic approach
C)philanthropy
D)responsibility

Question 42

Which step is the most critical to help improve business ethics?

A)The ethics code must be enforced.
B)Top management must adopt and support a corporate code of conduct.
C)An ethics office must be set up.
D)Outsiders must be told about the ethics program.

Question 43

According to Milton Friedman,businesses can best meet their responsibility to society by:

A)shifting the blame for product liability cases onto the legal system.
B)creating markets for domestic products.
C)supporting their preferred government officials.
D)creating wealth for their stockholders.

Question 44

Stories of political leaders accepting bribes in return for their influence have occurred worldwide.Unlike the past,these leaders have been forced to resign under intense public pressure.This indicates that:

A)politicians and religious leaders are above the law.
B)it is important not to get caught accepting a bribe.
C)people are demanding higher standards of their leaders.
D)the WTO has established global standards.

Question 45

Corporate encompasses various issues such as setting minority hiring practices,manufacturing safe products,and minimizing pollution.

A)diversity
B)responsibility
C)philanthropy
D)structure and strategy

Question 46

The purpose of the Federal Accountability Act is to:

A)ensure that whistle-blowers within the government receive due recognition and reward.
B)restrict the investigation of any wrongdoing that occurs within the public sector.
C)ensure that any corporate whistle-blower in Canada is reimbursed for lost wages if they are fired by their employers.
D)protect government employees from reprisal for making good faith allegations of wrongdoing.

Question 47

In 2014 a Conservative Party staffer was found guilty under the Elections Act of willfully preventing a voter from casting a ballot.This is an example of behaviour that is _______.

A)ethical
B)predictable
C)illegal
D)legal but unethical

Question 48

Top management at Lancer Distributing is convinced that they have a social responsibility to their community.They believe that they can have the greatest impact in this area through cash contributions to nonprofit organizations.This is an example of corporate:

A)short run profit maximization.
B)guilt payments.
C)structure and strategy.
D)philanthropy.

Question 49

Which of the following reflects the desire of an ethical manager to achieve a "win-win" relationship with others?

A)Is it balanced?
B)How will it make me feel about myself?
C)Is it legal?
D)How can I benefit at the expense of others?

Question 50

The FAIRTRADE mark on a package means what?

A)the company has contributed to the development of disadvantaged producers and workers.
B)the company must not be involved in weapons or tobacco businesses.
C)the company cannot participate in insider trading.
D)the company must behave ethically.

Question 51

Issues of social responsibility and ethical behaviour are:

A)a concern only of business professors.
B)the result of greed found in capitalist countries.
C)found in many different countries.
D)found primarily in countries with a low standard of living.

Question 52

Three questions often help individuals and organizations in deciding if their decisions are ethical.All of the following are ethics check questions except:

A)How will it make me feel about myself?
B)Has it been done before?
C)Is it legal?
D)Is it balanced?

Question 53

Corporate social responsibility describes the firm's:

A)concern for the welfare of society.
B)ability to plan for the unexpected.
C)responsibility to their stockholders.
D)commitment to a management training program.

Question 54

An ethical dilemma refers to a situation where you must:

A)treat someone unfairly.
B)choose between a correct and an incorrect option.
C)balance the concerns of profit and legality.
D)choose between equally unsatisfactory alternatives.

Question 55

Considering the potential impact on others prior to making a decision is consistent with ________ behaviour.

A)legal
B)self-motivated
C)ethical
D)anti-social

Question 56

Ethical behaviour will result in all of the following except:

A)negative publicity from the news media.
B)improved self-esteem.
C)greater trust and cooperation between employees and managers.
D)balanced,fair agreements that create benefits for all involved.

Question 57

A(n)_-based ethics code defines corporate values,creates a supportive environment,and stresses shared accountability among employees.

A)compliance
B)integrity
C)corporate responsibility
D)social

Question 58

Those who argue in favor of corporate social responsibility suggest that:

A)you need to justify socially responsible behavior from an investor's standpoint only.
B)companies who are perceived as being socially responsible will attract and retain better employees and draw more customers.
C)business exists only to make money for shareholders.
D)being socially responsible is all about being ethical.

Question 59

The purpose of a(n)is to evaluate an organization's progress toward implementing programs to achieve social responsibility.

A)accountability review
B)social audit
C)annual report
D)federal disclosure statement

Question 60

When discussing moral and ethical issues,it is helpful to remember that ethical behaviour begins with:

A)religious institutions.
B)law enforcement officers.
C)each of us.
D)schools.

Question 61

A Canadian government official has indicated that for a generous contribution to his re-election fund,he would ignore your firm's apparent violation of several anti-pollution laws.Which of the following "ethics check questions" would you consider first?

A)Is it fair?
B)How much do you want?
C)How will it make me feel about myself?
D)Is it legal?

Question 62

Corporate standards can lead to unethical behaviour.

Question 63

Ethical behaviour will allow a firm to meet its corporate social responsibility.

Question 64

A business that takes a public position on a political issue is exercising corporate social responsibility.

Question 65

Which of the following terms describes someone who reports illegal or unethical behaviour?

A)Watch tower sentinel
B)Horn blower
C)Integrity watchdog
D)Whistleblower

Question 66

Which of these questions can help us avoid a decision that would injure our self-esteem?

A)How can I avoid taking the blame?
B)Is it legal?
C)How will it make me feel about myself?
D)Is it balanced?

Question 67

More and more companies have written codes of conduct.

Question 68

Minority hiring practices and pollution control are both areas of corporate responsibility.

Question 69

Doogood Corporation would like its employees,customers,and the general public to be aware of the activities and programs they have done for the community over the past year.The company might consider doing a:

A)contributory analysis.
B)annual payment report.
C)social audit.
D)responsibility review.

Question 70

Businesses with a formal code of ethics are less common now than in the past.

Question 71

Integrity-based ethics codes are similar to compliance-based ethics codes.Which of the following is an objective of compliance-based codes?

A)enable responsible employee conduct
B)accountability
C)avoid criminal misconduct
D)conform to chosen internal standards

Question 72

The Hummer Corporation has recently instituted a corporate ethics code.The president of the company realizes that ethical relationships are based on:

A)watchdogs and whistleblowers.
B)a well-developed corporate code of ethics.
C)strict penalties for illegal activities.
D)trust and cooperation.

Question 73

Many immoral and unethical acts fall well within our laws.

Question 74

An ethical manager's decisions are based on the following questions: "Is it legal?" and "Is it profitable?"

Question 75

Trying to make decisions that will benefit all parties involved is consistent with the question "How will it make me feel about myself?"

Question 76

If a business fails in meeting its responsibilities to its employees,all of the following are likely to occur except:

A)disgruntled workers manipulating budgets and expenses.
B)a loss of employee commitment and trust in the company and its management.
C)reduced employee turnover.
D)employee retaliation by doing the minimum needed to get by.

Question 77

A competitive corporate environment:

A)should focus on improving corporate profit.
B)can best define ethical behaviour based on current circumstances.
C)must be ignored when corporate ethics are developed.
D)can encourage employees to deceive customers.

Question 78

People who report illegal or unethical behaviour are known as whistleblowers.

Question 79

After developing a code of ethics,it should be communicated to:

A)the police in jurisdictions where the business has operations.
B)stockholders.
C)all levels of management.
D)everyone with whom the business has dealings.

Question 80

Legality is

A)the same as ethical behaviour.
B)the only consideration for ethical behaviour.
C)narrower than ethical behavior.
D)broader than ethical behaviour.