Deck 4: Business Ethics Social Responsibility: Doing Well by Doing Good

Question 1

The personal needs, the culture, and the family of an individual influence his or her ethical choices.

Answer 1

True

Question 2

According to research from the Ethics Resource Center (ERC), organizational culture is most influential in shaping the ethical conduct of individual employees.

Answer 2

True

Question 3

In the context of business ethics, in an ethical dilemma, every potential course of action has some significant negative consequences.

Answer 3

True

Question 4

In the context of social responsibility, B-Corps receive special tax treatment.

Question 5

Stakeholders refer to groups of people who have a malicious intent toward an organization and who often resort to harmful actions.

Question 6

In the context of ethical behavior, encouraging fraudulent accounting is illegal and unethical.

Question 7

In the context of consumerism, smart businesses view customer complaints as an opportunity to create better products and stronger relationships.

Question 8

Corporate etiquette is the obligation of a business to contribute to society.

Question 9

Sustainable development means weaving environmentalism throughout the business decision-making process.

Question 10

In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a D-Corp.

Question 11

Corporate philanthropy includes all business donations to nonprofit groups except employee time.

Question 12

In the context of the legal and ethical dimensions of business conduct, practicing collusion with competitors is legal but unethical.

Question 13

In the context of business behavior, producing products that you know will break before their time is illegal and unethical.

Question 14

The number-one goal of any business is to contribute to society.

Question 15

Socially responsible employers stick to the state laws and do not go beyond them when it comes to providing a good working environment to employees.

Question 16

An ethical dilemma involves clear misconduct at the workplace.

Question 17

In the context of creating and maintaining an ethical organization, more-engaged employees are much less likely to behave badly.

Question 18

Planned obsolescence represents a clear violation of social responsibility.

Question 19

In the context of creating and maintaining an ethical organization, when employees perceive
more management commitment, they tend to be more fully engaged.

Question 20

When people view ethics as relative, their ethical standards shift depending on the situation.

Question 21

Codes of conduct work best when people are given the freedom to choose whether they wish to follow them or not.

Question 22

Ethics refer to:

A) the obligation of a business to contribute to society.
B) legal codes written in the constitution.
C) social movements that focus on key consumer rights.
D) sets of beliefs about right and wrong.

Question 23

A social audit is a systematic evaluation of the positive and negative views of the public about a business firm.

Question 24

A chocolate manufacturing company promoted a high-calorie product without providing complete information about the risks involved in its consumption. In the context of business behavior, the company's business conduct was:

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

Question 25

The obligation of a business to contribute to society is referred to as _____.

A) planned obsolescence
B) growthism
C) societal consumerism
D) social responsibility

Question 26

In the context of carbon footprint, emissions that occur outside a company's boundary, but over which it has some control, are classified as Scope 2 emissions.

Question 27

In the context of the legal and ethical dimensions of business conduct, it is legal and ethical to:

A) lead by example.
B) practice collusion with competitors.
C) provide rock-bottom prices only to distributors in underserved areas.
D) collaborate with other medical clinics to guarantee low prices in low-income counties.

Question 28

In the context of the legal and ethical dimensions of business conduct, it is illegal and unethical to:

A) provide rock-bottom prices only to distributors in underserved areas.
B) engage in sexual harassment.
C) pay nonliving wages to workers in developing countries.
D) endorse low-nutrient foods with inadequate information about the risks.

Question 29

Flickczar, a film production company in the United States, sells the distribution rights of a film to its distributors in underserved areas at rock-bottom prices, while it sells the rights of the same film to distributors in other areas at normal prices. In the context of business behavior, Flickczar's business practice is _____.

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

Question 30

The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____.

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

Question 31

Vandium, a high-end smartphone, is known for its excellent audio quality and processing speed. However, most of its users complain of certain technical issues after a period of five months. The company, however, is well aware of these issues because it deliberately designs these products to fail after a certain period-a strategy to generate revenue through service charges. In the context of business behavior, Vandium's business conduct is:

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

Question 32

In the United States, people come from such diverse backgrounds that establishing broad agreement on specific ethical standards can be daunting. In this situation, a given country's _____ provides a solid starting point for examining ethical standards.

A) economic system
B) population growth rate
C) gross domestic product
D) legal system

Question 33

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

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

Question 34

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

A) legal but unethical.
B) illegal and unethical.
C) legal and ethical.
D) illegal but ethical.

Question 35

In the context of the three types of emissions tracked by corporations, Scope 1 emissions refer to direct emissions produced by corporate operations.

Question 36

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of _____.

A) illegal and unethical behavior
B) legal but unethical behavior
C) legal and ethical behavior
D) illegal but ethical behavior

Question 37

In the context of the legal and ethical dimensions of business conduct, providing rock-bottom prices only to distributors in underserved areas is _____.

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

Question 38

Globalization has made ethics and social responsibility complicated for workers at every level.

Question 39

Gander, an apparel company, is known to be a profit-hungry company. It lands in a controversy when it comes to light that the company pays almost nonliving wages to the workers in its manufacturing subsidiaries based in developing countries. In the context of business behavior, Gander's business conduct is:

A) legal and ethical.
B) illegal and unethical.
C) legal but unethical.
D) illegal but ethical.

Question 40

Which of the following statements is true of ethics?

A) All ethical standards are codified in the law.
B) Ethics and social responsibility are independent of each other.
C) Establishing broad agreement on ethical standards is easier when society is diverse.
D) Actions that are completely legal can still be unethical.

Question 41

Lovine, a women-centric magazine, interviewed a victim of domestic violence. Although the magazine assured the victim that her name would not be mentioned in the article, it later published the article with the victim's real name. This scenario exemplifies a(n) _____.

A) ethical lapse
B) ethical dilemma
C) false dilemma
D) false dichotomy

Question 42

Anaida is an entrepreneur who believes in providing equal opportunity to people regardless of their age, gender, race, or religion. She is open-minded and detests the idea of taking advantage of others. In the context of universal ethical standards, Anaida most likely possesses the core value of _____.

A) frugality
B) fairness
C) citizenship
D) responsibility

Question 43

Cornell Health Care, a renowned American hospital, regularly collaborates with other health-care centers to provide small medical clinics in low-income countries drugs and medical services at lower than normal prices. In this scenario, this practice of collusion by Cornell Health Care is _____.

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

Question 44

In the context of business ethics, _____ refers to a decision that involves a conflict of values.

A) an ethical lapse
B) ethical hacking
C) an ethical dilemma
D) ethical consumerism

Question 45

The nonprofit, nonpartisan Character Counts organization has worked with various group of educators and community leaders to establish a set of:

A) core ethical values that transcend political, religious, class, and ethnic divisions.
B) standard character types to classify employees and rate their behavior.
C) authorization limits that can be used to grant an employee the right to decision making.
D) ethical benchmarks that can be used to rate companies during a social audit.

Question 46

Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____.

A) subservience
B) foresight
C) accountability
D) respect

Question 47

In the context of the frameworks developed by experts for reaching ethical decisions, which of the following is one of the key principles of most decision guides?

A) Are you offering better services than your competitors?
B) Are the alternative solutions legal?
C) Do you practice corporate philanthropy?
D) Do you reward your employees for good performance?

Question 48

Jordon, a senior executive at a marketing firm, used to regularly meet international clients to discuss future projects. After one of his recent meetings went wrong, Jordan, in a fit of rage, threw a paper weight at his junior associate. The firm's management immediately terminated Jordan for this act. In the context of business ethics, Jordon was guilty of _____ in this scenario.

A) an ethical lapse
B) ethical hacking
C) an ethical dilemma
D) ethical consumerism

Question 49

Peter, the CEO of a multinational company, has a deep understanding of other people's needs and behaviors. He easily relates to another's situation, feelings, and motives-all qualities that strongly predict a high level of ethical leadership. Given this information, Peter most likely possesses _____.

A) interpersonal reflex
B) personal empathy
C) alexithymia
D) mind-blindness

Question 50

In the context of universal ethical standards, being open-minded and not taking advantage of others exemplifies the core value of _____.

A) responsibility
B) fairness
C) respect
D) caring

Question 51

In the context of the core values identified by the Character Counts organization, being honest, not deceiving, cheating, or stealing, and doing what you say you'll do represent the universal ethical standard of _____.

A) trustworthiness
B) responsibility
C) citizenship
D) fairness

Question 52

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to:

A) produce products that you know will break before their time.
B) reward integrity and lead by example.
C) encourage fraudulent accounting.
D) collaborate with other medical clinics to guarantee low prices in low-income counties.

Question 53

Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent business trip because I need the money, and my company has not given me a raise in the past year." In this scenario, Janet is an employee who views ethics as _____.

A) universal
B) relative
C) moral absolutism
D) a double-barreled argument

Question 54

Walid, an IT professional, is known for his perseverance, his self-discipline, and taking accountability for his actions. In the context of universal ethical standards, Walid most likely possesses the core value of _____.

A) frugality
B) responsibility
C) citizenship
D) willfulness

Question 55

Universal ethical standards can solve the problem of too many people viewing ethics as _____.

A) evasive
B) relative
C) inexplicit
D) ambiguous

Question 56

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____.

A) trustworthiness
B) fairness
C) citizenship
D) assertiveness

Question 57

Mark and Augustine are employees of an advertising firm. Following a personal disagreement, Augustine steals Mark's idea for an advertisement and presents it as his own in a meeting. In this scenario, Augustine is guilty of _____.

A) an ethical lapse
B) ethical hacking
C) an ethical dilemma
D) ethical consumerism

Question 58

The management of a steel manufacturing company decides to set up a new plant in a rural area. However, this would create waste management issues for the company. On the other hand, the company would incur higher costs if it sets up the plant in another area. The management thus finds itself in a situation where both the actions will have a negative consequence. This scenario exemplifies a(n) _____.

A) ethical lapse
B) ethical dilemma
C) strange loop
D) false dilemma

Question 59

Alfred, a human resource manager at an IT firm, reasons, "Although everyone should be given an equal opportunity, but for once it is fine to give my friend the first shot at the opening in my company because I know he really needs the job." In this context, which of the following statements is most likely true of Alfred?

A) He bases his argument on universal ethical standards.
B) He views ethics as relative.
C) He bases his argument on moral absolutism.
D) He believes in value monism.

Question 60

In the context of business ethics, _____ involves clear misconduct, unlike an ethical dilemma that involves a conflict of values.

A) an ethical lapse
B) ethical hacking
C) an ethical conundrum
D) ethical consumerism

Question 61

Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, believes in the importance of senior management commitment to ethics, but he points out that the "tone at the top" must be reinforced by the actual behavior observed by suppliers, dealers, customers, and employees. At Deere, this is summed up in highly visible, frequently referenced shorthand known as:

A) the when.
B) the who.
C) the where.
D) the how.

Question 62

In the context of codes of ethics, the best-known code is the Johnson & Johnson Credo, which has guided the company profitably through a number of crises. One of the striking elements of the credo is the firm focus on:

A) fairness.
B) nepotism.
C) ethnocentrism.
D) collusion.

Question 63

Finwes is an advertising company. Because of certain untoward incidents in the company, the management decides to create a formal written document that would guide the employees in making right decisions in various professional situations. In this scenario, the management wants to create a _____.

A) negotiable instrument
B) code of merit
C) code of ethics
D) document of compliance

Question 64

In the context of codes of ethics, the Johnson & Johnson Credo refrains from:

A) overpromising financial rewards.
B) encouraging pluralism.
C) allowing whistle-blowing.
D) overcommunicating the importance of ethics.

Question 65

A clothing company, Clendtine Fashions, pledges five percent of its annual revenue to environmental causes around the world. Being one of the top international companies, the founders of the company have an obligation to contribute toward the betterment of the world. This scenario is an example of Clendtine Fashions's participation in _____.

A) social responsibility
B) relativism
C) moral absolutism
D) greenwashing

Question 66

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees.

A) workplace diversity
B) organizational culture
C) sexual orientation
D) socioeconomic background

Question 67

The employees of a multinational company follow a standardized and formal set of written guidelines that help them make right decisions in various situations. These guidelines have been translated into 20 languages and are followed by employees across all branches of the company. One of the guidelines is to include all supervisors in discussions regarding instances of violation of rules. In this scenario, the multinational company has:

A) created a document of compliance for its members.
B) created a code of ethics for its members.
C) set a vision that encourages opportunism.
D) set a greenwashing strategy for its members.

Question 68

In the context of research from the Ethics Resource Center (ERC), which of the following statements is true of companies facing economic difficulties?

A) Organizational culture during economic difficulties has very little impact on individual employees' decisions.
B) The decisions and behaviors of company leaders are perceived by employees as a heightened commitment to ethics.
C) More-engaged employees of companies facing economic difficulties are less likely to report employees who behave unethically.
D) When employees perceive more management commitment, they become less engaged with the tasks assigned to them.

Question 69

In the context of creating and maintaining an ethical organization, Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, declares that to establish an ethical culture, _____.

A) ethical words must be backed up with documented practices, processes, and procedures, all understood around the globe
B) top-level managers must always perform legal actions, even if they are unethical
C) employees should be allowed to choose the kind of moral and ethical principles that they wish to follow
D) the code of ethics should not apply to outside parties such as suppliers, distributors, and customers of the organization

Question 70

After being stagnant for a few years, a clothing company started making profits consistently. Following this, the CEO of the company decided to contribute to the growth of the community by starting an apprenticeship program in tailoring. The program involved providing training to a batch of 10 uneducated, underprivileged people free of cost every year. In this scenario, the company's gesture exemplifies _____.

A) green marketing
B) corporate philanthropy
C) social responsibility
D) corporate opportunism

Question 71

Which of the following statements is true of an ethics code?

A) It states that when people violate ethical norms, companies must respond privately and not publicly to retain employee trust.
B) It categorizes whistle-blowers as people who perform illegal or unethical behavior.
C) The scope of a company's ethics code is local and not global.
D) A written code is worthless if it does not reflect living principles.

Question 72

In the context of codes of ethics, the purpose of a written code is to:

A) help employees who view ethics as relative to justify their unethical actions.
B) guide employers in decision making related to green washing.
C) give employees the information they need to make ethical decisions across a range of situations.
D) provide employers with strategic plans when they wish to contribute to society in a proactive manner.

Question 73

Research from the Ethics Resource Center (ERC) showed that companies behave differently during economic difficulties. When employees perceive the decisions and behaviors of their leaders as a heightened commitment to ethics, they are most likely to:

A) adopt a higher standard of conduct for themselves.
B) find justifications to classify their misconduct as ethical.
C) overlook all forms of laws associated with whistle-blowing.
D) become less engaged with the tasks assigned to them.

Question 74

In the context of ethical choices, research results from the Ethics Resource Center (ERC) illustrate that:

A) organizational culture has very little impact on individual employees' decisions.
B) misconduct by employees rose when they felt that the Great Recession negatively impacted the ethical culture of their company.
C) more engaged and dedicated employees of a company are much less likely to report individuals who behave badly.
D) when employees perceived more management commitment, they became less engaged with the tasks assigned to them.

Question 75

In the context of codes of ethics, the Johnson & Johnson Credo has guided the company profitably through a number of crises. This is considered the best-known code because it:

A) carefully refrains from allowing whistle-blowing.
B) allows employees to choose the kind of moral and ethical principles they wish to follow.
C) focuses on ethnocentrism and moral absolutism.
D) carefully refrains from overpromising financial rewards.

Question 76

In the context of the code of ethics of a company, which of the following is a step that is virtually always included when experts advocate a forceful, integrated approach to ethics?

A) Ensuring that the company's ethics code is local and not global in scope
B) Communicating about the importance of ethics
C) Considering ethics as a separate unit and not integrating it into mandatory staff training
D) Establishing and enforcing strict laws against whistle-blowers

Question 77

In the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?

A) It should be ensured that the company's ethics code is both local and global in scope.
B) It should be ensured that top managers do not overcommunicate the importance of ethics.
C) Ethics should be considered a separate unit and not integrated into mandatory staff training.
D) Managers should enforce strict laws against whistle-blowers.

Question 78

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____.

A) social auditor
B) corporate philanthropist
C) grandstander
D) whistle-blower

Question 79

To bring a code of ethics to life, experts advocate a forceful, integrated approach to ethics. According to this, _____.

A) when people violate ethical norms, companies must respond publicly to retain employee trust
B) top managers should not overcommunicate the importance of ethics
C) ethics should be considered a separate unit and not be integrated into mandatory staff training
D) managers should enforce strict laws against whistle-blowers

Question 80

Yanmei, an employee at a news agency, learns that the reason her colleague was asked not to pursue a news story further was because the editor of the newspaper was bribed by the concerned party to suppress the matter. Yanmei reveals this information to the chief editor and her colleagues and also reports it to the media. In this scenario, Yanmei is a _____.

A) social auditor
B) corporate philanthropist
C) grandstander
D) whistle-blower