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

Question 1

The Sarbanes-Oxley Act was created to set higher ethical standards for public corporations and accounting firms.

Answer 1

True

Question 2

Stakeholders are any groups that have a stake-or a personal interest-in the performance and actions of an organization.

Answer 2

True

Question 3

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 a society is diverse.
D)All actions that are legal need not be ethical.

Answer 3

D

Question 4

Philanthropy is the obligation of a business to contribute to society.

Question 5

Ethics refers 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 6

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

Question 7

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

Question 8

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

Question 9

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

A)core ethical values that transcend political, ethnic, class, and religious differences.
B)legal standards for ethical business behavior, which all states are urged to adopt in order to reduce the complexity of ethical compliance.
C)simple rules that can be used to solve common ethical dilemmas.
D)ethical benchmarks that can be used to rate companies during a social audit.

Question 10

A social audit is a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals.

Question 11

The best employers do not go beyond the law when it comes to providing a good working environment to employees.

Question 12

Which of the following is true in the context of the steps that need to be taken by top managers in executing the integrated approach to the implementation of a code of ethics in an organization?

A)They should ensure that the company's ethics code is both local and global in scope.
B)They should ensure that they do not overcommunicate the importance of ethics.
C)They should separate the ethics training given to employees from mandatory staff training.
D)They should enforce strict laws and penalties against whistleblowers in the organization.

Question 13

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

Question 14

An ethical dilemma involves clear misconduct at a workplace.

Question 15

Which of the following is the purpose of a written code of ethics?​

A)To merely satisfy the requirements of the Sarbanes-Oxley Act
B)To eliminate the need for top management to monitor ethical behavior, thus giving these managers more time to deal with other issues
C)To provide guidance to help employees make sound ethical decisions across a range of situations
D)To explain the rules laid out by regulatory bodies that monitor business firms

Question 16

Which of the following statements is true of ethical decisions?

A)Decisions made by organizations rather than individuals have ethical implications.
B)Organizations do not influence the quality of an individual's decisions.
C)When two people following an ethical framework are faced with choices, they always arrive at the same decision.
D)Personal empathy in ethical choices is an important predictor of ethical leadership.

Question 17

In challenging business decisions, a true ethical dilemma occurs when:

A)someone is involved in clear misconduct.
B)someone has to make a routine business decision.
C)someone is forced to choose among bad options.
D)someone is forced to choose between a right and a wrong option.

Question 18

Research from the Ethics Resource Center (ERC)indicates that organizational culture:

A)has very little impact on individual employees' decisions.
B)has significant influence on the ethical behavior of individual employees.
C)influences the behavior of individual employees only if it involves clearly illegal behavior, such as stealing or committing fraud.
D)is most effective when it focuses on legal rather than ethical aspects of decisions.

Question 19

Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent trip because I really need the money, and my company has not given me a raise in the past year." This statement is an example of an employee who is applying _____ to fit the situation at hand

A)the universal code of ethics
B)relative ethical standards
C)moral absolutism
D)the divine command theory

Question 20

Iris has been told by her boss that the company is planning to lay off some people and that only one employee in her department will be retained In order to keep her job, Iris has to sabotage the professional image and good work of her colleagues or she will be laid off. This situation is an example of _____.

A)philanthropy
B)an ethical dilemma
C)moral absolutism
D)a company audit

Question 21

The double bottom line social audit procedure:

A)measures both sales and profits of a firm.
B)measures both a firm's financial performance and its efforts to meet social responsibilities.
C)develops financial rewards for managers whose fundraising contributions to community-based organizations exceed expectations.
D)indicates a preference for meeting profit goals and de-emphasizes any social contributions that would cut into profits.

Question 22

The spectrum of socially responsible behavior of firms may vary from:

A)no profits to generous profits.
B)no contributions to proactive contributions.
C)intangible ideas to tangible ideas.
D)business initiatives to proactive business dealings.

Question 23

Which of the following actions best demonstrates the practice of corporate responsibility?

A)A company donates $10,000 to a local charity.
B)The CEO of a corporation announces that his company has increased its profit margin to investors for the sixth consecutive year.
C)A company actively recruits and nurtures U.S. veterans.
D)Some employees at a large technology firm voluntarily work over the weekends.

Question 24

A clothing company, Patagonia, Inc., pledges one percent of its annual revenue to environmental causes around the world.Founders of the company believe they have an obligation to contribute to the world.This is an example of _____.

A)social responsibility
B)ethical relativity
C)moral absolutism
D)green washing

Question 25

Which of the following is the starting point of a social audit?

A)Identifying legal standards
B)Establishing goals
C)Measuring the effectiveness of ethical standards
D)Contacting government regulatory agencies

Question 26

Treslex, a retailer, employs Olympic hopefuls in its stores through the Olympic Job Opportunities Program. It offers athletes full-time pay and benefits for a flexible 20-hour workweek in order to accommodate demanding training schedules. This is an example of _____.

A)corporate opportunism
B)corporate development
C)corporate self-dealing
D)corporate responsibility

Question 27

Which of the following is a duty of a socially responsible organization toward customers?

A)Increasing overhead business costs significantly
B)Using strategies such as planned obsolescence for the organization's growth
C)Delivering value by providing quality products at fair prices
D)Being involved in competitive practices such as collusion and monopoly

Question 28

Venus Corp. operates in many countries. The company has a clearly written mandate for all its contractors abroad.According to this, all contractors must ensure that standardized safety measures are implemented in their factories and workers are made to work for only nine hours in a day. Venus has set a _____.

A)universal legal standard for its vendors
B)code of ethics for its vendors
C)vision that encourages opportunism
D)greenwashing strategy for its vendors

Question 29

Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers.

A)the right to the lowest price
B)the right to purchase an extended warranty
C)the right to be informed
D)the right to return a product in seven days for a full refund

Question 30

Every year, the members of the managing committee at Willem Inc.systematically evaluate how well the firm meets its ethics and corporate responsibility objectives. This process is referred to as a(n)_____.

A)sustainable development
B)planned obsolescence
C)job deskilling
D)social audit

Question 31

Jessica Marshall, the CEO of ANS Oil Drilling Inc., has decided to set aside $10, 000 from the company's annual profit to donate to local nonprofit organizations. This donation is an example of:

A)corporate opportunism.
B)stakeholder remuneration.
C)corporate philanthropy.
D)stakeholder dividends.

Question 32

SeeStreet is a company that produces gourmet coffee. Its employees, coffee bean growers who supply raw materials to the company, people who drink the coffee, and the people who live in the community where the company produces the coffee are called SeeStreet's _____.

A)benefactors
B)self-dealers
C)philanthropists
D)stakeholders

Question 33

David is the chief executive officer of Grand Rocks mining company. He has convinced the company's board of directors to implement a change in the mining procedures which will reduce the company's impact on the environment in which it operates. This will ensure that the abilities of future generations to meet their needs will not be harmed.By agreeing to David's suggestion, Grand Rocks has embraced the idea of _____.

A)sustainable development
B)corporate philanthropy
C)cause-related marketing
D)planned obsolescence

Question 34

Which of the following must be considered when deciding the living wage globally?

A)Companies must base their decision on the average wage standards in the U.S.
B)American businesses must ban child labor in countries where families depend on their children's wages to survive.
C)Companies must pay wages according to the quality of work done, irrespective of working hours or working conditions.
D)Companies must base their decision on their own values and the laws of both the U.S. and their host country.

Question 35

Which of the following is true about consumerism?​

A)It is a movement in support of cause-related marketing.
B)It focuses on the duty of business to provide quality products at fair prices.
C)It is a term that describes the excessive bargaining power of consumers.
D)It focuses on the right of the customers to get involved on the pricing of certain products.

Question 36

Which of the following is the goal of sustainable development?

A)To increase sales of a company's products and raise money in order to donate a significant amount to nonprofit organizations
B)To design products to fail in order to shorten the time between purchases, thus spiking the repurchase profits
C)To report unethical and illegal activities of employees to the relevant authorities or the media
D)To meet the needs of the current generation without harming the ability of future generations to meet their needs

Question 37

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

A)Corporate compensation
B)Corporate philanthropy
C)Corporate remuneration
D)Corporate marketing

Question 38

Socially responsible employers:

A)make use of strategies such as planned obsolescence.
B)create a workplace environment that only values profit.
C)provide minimal safety requirements.
D)ensure that hard work, commitment, and talent pay off.

Question 39

U.S. corporations are forbidden to offer bribes since 1977 under the _____.

A)Foreign Corrupt Practices Act
B)Sarbanes Oxley Act
C)Foreign Enlistment Act
D)Corruption of Foreign Public Officials Act

Question 40

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

A)codes of conduct
B)universal ethical standards
C)greenwashing principles
D)social responsibilities

Question 41

Explain how globalization impacts social responsibility.

Question 42

Define and explain ethics and social responsibility.

Question 43

Describe how to create and maintain an ethical organization as per the research done by the Ethics Resource Center.

Question 44

How do businesses around the globe monitor ethics and social responsibility?

Question 45

Define and describe social responsibility.

Question 46

________ is the strategy of deliberately designing products to fail in order to shorten the time between purchases.

A)Planned obsolescence
B)Repurchase-driven marketing
C)Market-timing production
D)Cause-related marketing

Question 47

_________ is the social movement supporting the consumer's right to be informed, to be safe, to choose, and to be heard.

A)Cause-related marketing
B)Consumerism
C)Social marketing
D)Cyber mediating

Question 48

The _________ is federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms.

A)Javits-Wagner-O'Day Act
B)Sarbanes-Oxley Act
C)Gold Standard Act
D)Class Action Fairness Act

Question 49

_________ refer to sets of beliefs about good and bad that are shaped by the social group and culture in which an individual functions.

A)Dilemmas
B)Mnemonics
C)Dissonances
D)Ethics

Question 50

A person who reports illegal or unethical behavior within an organization is known as a(n)_________.

A)advocate
B)whistle-blower
C)stakeholder
D)grandstander