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

Question 1

The most challenging business decisions seem to arise when values are in conflict.

Answer 1

True

Question 2

Jim was low on money and had access to the petty cash fund at work. One day, he thought of borrowing $100 from the petty cash fund with the intention of returning the money on his next payday. However, if he takes the money he knows that Sally, the receptionist, who also had access to the fund will get blamed and if he doesn't take the money, he will not be able to meet his expenses for the week. This is an example of an ethical dilemma.

Answer 2

True

Question 3

Business ethics is the application of right and wrong, good and bad, in a business setting.

Answer 3

True

Question 4

It is possible for someone's actions to be completely legal, yet still be unethical.

Question 5

A medical facility operates illegally and unethically when collaborating with other medical clinics to provide low­cost treatment in low­income countries.

Question 6

One of the engineers on Emma's staff has an excellent job offer from another company and asks her advice on whether or not to accept the position. She needs him to complete a project that is crucial to the company. Emma also has been told­in strictest confidence by senior management­that when this project is complete, the company will lay off all internal engineers. If she advises him to stay, he would lose the current job opportunity he has, but if she advises him to go, she would violate the company's trust. This is an example of an ethical dilemma.

Question 7

The best approach to ethical decision making is to rely on relative standards rather than universal standards.

Question 8

The decisions of individual employees are clearly independent from a company's stance regarding social responsibility.

Question 9

Ethical norms can never be established and enforced by law. It is always relative in a given situation.

Question 10

All acts that are illegal are unethical.

Question 11

Ethics are the obligation of a business to contribute to society.

Question 12

Universal ethical standards apply to everyone across a broad spectrum of situations.

Question 13

An ethical dilemma involves clear misconduct at a workplace.

Question 14

Ethical lapses are business decisions that are challenging and that arise when values are in conflict.

Question 15

Sally is responsible for ensuring that all equipment is placed in its proper location at the end of her work shift. She notices that one employee always leaves his equipment on the floor, but he is one of the top performers. Sally ignores the employee's negligence and stores the equipment in its proper location. Sally is displaying her individual ethics.

Question 16

Ben and Josh are good friends. They are working on a team assignment in statistics. They had planned to work on the project last night, but Josh called at the last minute saying he had a conflict. Ben ended up doing all of the work. The instructor is giving each student the opportunity to critique the effort of his or her partner. Ben knows that Josh needs the points on the assignment in order to pass the course and he would like to keep Josh as a friend. If Ben decides to say that Josh deserves equal credit, this would be an example of universal ethical standards.

Question 17

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

Question 18

An individual's ethical beliefs are influenced by his or her social group and culture.

Question 19

The view a firm has on social responsibility can influence the way their employees make decisions.

Question 20

The easiest business challenges to address are those involving business ethics.

Question 21

A code of ethics is irrelevant for multinational companies, since the values and priorities are rooted in different cultures.

Question 22

A written code of ethics is the cornerstone of an organization's formal ethics program.

Question 23

George is upset about his current salary at Right Touch Car Wash Inc. In order to increase his income, he begins to charge customers more for each car wash and pockets the difference. His actions are not unethical because Right Touch will not suffer a financial loss.

Question 24

The key principle of most decision guides is to make profit for the company at the expense of others.

Question 25

Ethical choices begin with ethical individuals.

Question 26

A question to ask when making a decision based on individual ethical beliefs is, "Could you defend your decision on the nightly TV news?"

Question 27

According to the president of the Ethics Resource Center, the ethics of a firm are strongly influenced by the CEO's ethical standards.

Question 28

A written code of ethics is a document for reference; it is never actively enforced or practiced in a company.

Question 29

Stakeholders are any groups that have a stake­or a personal interest­in the performance and actions of an organization

Question 30

Whistle­blowers bring illegal and sometimes unethical company behavior to the attention of either the authorities or the media.

Question 31

In order to build trust, management should respond swiftly and publicly when an ethical violation has occurred.

Question 32

Stakeholders are a group of employees who earn profit and cover up unethical practices.

Question 33

The ethical standards a company establishes should be clearly communicated to outside parties such as suppliers and customers.

Question 34

Organizational culture has little influence on the ethical conduct of individual employees.

Question 35

In order to encourage the reporting of unethical behavior, some have suggested that whistle­blowers should receive a portion of the penalties levied against firms that violate the law.

Question 36

Ben has started a small, home remodeling business. As a for­profit business, his number­one goal is to generate long­term profits.

Question 37

A written code of ethics should not reflect living principles.

Question 38

A written code of conduct provides guidelines for ethical behavior in the workplace.

Question 39

In business ethics, ethical dilemmas are the same as ethical lapses.

Question 40

Companies should discourage whistle­blowing because it creates an atmosphere of fear and mistrust.

Question 41

The Sarbanes­Oxley Act was created to set higher ethical standards for public corporations and accounting firms

Question 42

The federal government is a key stakeholder in pharmaceutical companies but a very minor stakeholder in local art studios.

Question 43

Corporate philanthropy includes all business donations to nonprofit groups, including both money and products.

Question 44

Socially responsible companies make it easy for consumers to express their legitimate complaints.

Question 45

Stakeholders are federal groups who encourage employees in a firm to be socially responsible.

Question 46

In corporate philanthropy, some companies pay their employees to spend time volunteering at nonprofits.

Question 47

Avid Games Inc., a video gaming company, has come up with a sequel,
Ranger II, for its best selling game, Ranger I. However, to increase resale they have created Ranger II such that it times out after six months. This is an example of planned obsolescence

Question 48

By spending time and money on ergonomically­enhanced facilities that promote employee health and safety, firms actively demonstrate socially responsible behavior.

Question 49

The Sarbanes­Oxley Act requires that CEOs and financial officers personally certify the validity of their financial statements.

Question 50

Consumerism, a modern social movement, suggests that consumer rights should be considered a last priority.

Question 51

Planned obsolescence is the deliberate designing of products to fail in order to shorten the time between repurchases.

Question 52

The starting point for all socially responsible employers is to create jobs.

Question 53

Stakeholders are employees who report their employer's illegal or unethical behavior.

Question 54

The best employers respond to the ongoing employee search for a balance between work and personal life.

Question 55

The federal government is a key stakeholder in all businesses.

Question 56

As per the residents who live only a few miles away from the Paramount Oil Company refinery, the plant's emissions are most likely to cause severe headaches and other health problems to the residents. Since these residents are not customers, employers, or investors in the company, Paramount Oil has no social responsibility toward these individuals.

Question 57

Enlightened organizations consider stakeholder priorities in their decision making.

Question 58

All stakeholders have the same needs, expectations, and levels of interest.

Question 59

When businesses make mistakes, apologizing to consumers won't guarantee renewed sales, but an apology can definitely restore a company's reputation.

Question 60

Core stakeholders for most businesses are employees, customers, investors, and the broader community.

Question 61

The Foreign Corrupt Practices Act ensures that U.S. businesses are protected from overcharges by international suppliers for their work and services.

Question 62

Green marketing represents a tough challenge since most people will not sacrifice price and performance to actually buy green products.

Question 63

Human rights, worker safety, and wage practices are not factors a socially responsible business considers when deciding on what vendors and suppliers best meet its needs.

Question 64

The Foreign Corrupt Practices Act protects U.S. companies from being corrupted by their global competitors.

Question 65

Multinational companies are not concerned with child labor issues in nations where the suppliers employ children in factories to meet the business demands, as long as the laws of these nations permit children to work in factories.

Question 66

Carbon footprint refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly.

Question 67

The Foreign Corrupt Practices Act prohibits bribery and corruption on the part of U.S. businesses, operating internationally.

Question 68

GE actively recruits and nurtures members of the U.S. military, currently employing more than 10,000 U.S. veterans. The firm provides special recognition and support for military employees and families before, during, and after deployments. This is an example of corporate responsibility.

Question 69

On Transparency International's yearly index of "perceived corruption,"among 177 countries, no country scored a completely clean 100 out of 100, in2013.

Question 70

Cause­related marketing mainly focuses on charity programs and giving back to society by most socially responsible companies without any personal motive to spike sales.

Question 71

Multinational companies enter into cause­related marketing programs to help new companies to enter global market and are paid for their service.

Question 72

Monitoring corruption and preventing bribery by U.S. corporations is regulated by the Foreign Corrupt Practices Act.

Question 73

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Question 74

Every January, Regal League Inc. distributes special coupons for some of its leading brands and pays the Special Olympics 10 cents for every redeemed coupon. This tie­in between Regal League and the Special Olympics is an example of cause­related marketing.

Question 75

The most socially responsible companies establish codes of conduct for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

Question 76

On average, U.S. company­owned McDonald's restaurant recycles more than 17 tons of corrugated cardboard per year and approximately 13,000 pounds of used cooking oil per year. This is an example of sustainable development.

Question 77

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Question 78

A business using a green marketing strategy promotes environmentally safe products in an effort to gain a competitive edge within an industry.

Question 79

Cause­related marketing dollars are not tax deductible for a company but often enhance the company's brands.

Question 80

Transparency International, a leading anticorruption organization, reports that the world's richest countries fall largely in the bottom half of the index of "perceived corruption," suggesting rampant corruption in developed countries.