Deck 2: Business Ethics and Social Responsibility

Question 1

The acceptability of behavior of a business rests solely with the business itself.

Answer 1

False

Question 2

When it comes to ethical behavior, co-workers and superiors exert significant control over one's choices at work through authority and example.

Answer 2

True

Question 3

A business must choose to be either profitable or socially responsible; they cannot be both.

Answer 3

False

Question 4

Which of the following best exemplifies a company with a strong ethical culture?

A) The top management at Randy's company clearly communicates to all employees the ethical behavior expected of them.
B) Norah reports to two different supervisors-one who follows the company's ethics policy and one who makes exceptions to the rules. Nora is not sure who to follow.
C) Since the top management at Colin's company feels they only hire ethical employees, they do not see the need for a formal, written ethics policy.
D) The middle-level managers at Blake's company do not get direction from top management regarding ethical behavior, but they all try to do what is right.
E) Jayla follows the lead of her immediate supervisor; if he bends the rules, she feels that she can do the same.

Question 5

Which statement is true regarding business ethics and social responsibility?

A) All actions deemed unethical by society are also illegal.
B) The concerns of what is legal and ethical do not change over time.
C) The terms social responsibility and ethics should be used interchangeably.
D) Companies can be both profitable and socially responsible.
E) Businesses whose sole objective is to earn profit are also likely to consider their social responsibility.

Question 6

A local landscaping company donates and plants a tree in the community for every new client that uses its landscaping design services. This exhibits the company's

A) business ethics.
B) profitability.
C) business responsibility.
D) irresponsibility.
E) social responsibility.

Question 7

Premier Products is well-received by the community in which it operates. Every year Premier hosts a charity fundraiser to support local charities; its employees regularly volunteer within the community and the company is committed to using sustainable manufacturing processes. The actions taken by Premier Products best exemplify

A) consumerism.
B) entrepreneurship.
C) legal responsibility.
D) social responsibility.
E) business ethics.

Question 8

How do the terms business ethics and social responsibility differ from each other?

A) Business ethics concerns the impact of the entire business's activities on society, whereas social responsibility relates to an individual's decisions that society evaluates as right or wrong.
B) Business ethics concerns the impact of the entire business's activities on society, whereas social responsibility relates to a work group's decisions that society evaluates as right or wrong.
C) Business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas social responsibility concerns the impact of the entire business's activities on society.
D) Business ethics and social responsibility can be used interchangeably because they mean the same thing.
E) Business ethics is a broader concept, whereas social responsibility is a narrower concept.

Question 9

Which law reformed the financial industry and offered consumers protection against complex and/or deceptive financial products?

A) the Glass-Steagall Legislation
B) the Dodd-Frank Act
C) the Sarbanes-Oxley Act
D) the Clayton Act
E) the Celler-Kefauver Act

Question 10

Which statement is true of how the mass media reports on the ethical conduct of businesses?

A) The mass media focuses equally on misconduct and good ethical conduct.
B) The mass media focuses more on misconduct than good ethical conduct.
C) The mass media focuses more on good ethical conduct than misconduct.
D) The mass media rarely reports on the ethical conduct of businesses.
E) The mass media supports businesses by giving the public the impression that misconduct is not widespread.

Question 11

Tracor Industries decided to buy less expensive materials from a foreign supplier that resulted in a significant reduction in the quality of its product. As a result, company sales dropped, many retailers refused to carry the product, and consumers left negative reviews online about the product. This is an example of

A) why the most expensive products must always be used in the production process.
B) a company being unethical but socially responsible.
C) how negative judgments can affect an organization's ability to achieve its goals.
D) ethical misconduct by the foreign supplier.
E) legal misconduct by Tracor Industries.

Question 12

After a major horse race, it was discovered that the winner had drugged his horse to make it run faster. Even though there was not a specific rule against drugging horses, the horse's owner, trainer, and jockey were banned from the racing industry. This exemplifies how

A) negative judgment directly affects an organization's ability to achieve its business goals.
B) unfair society can be in making ethical judgments.
C) ethics can be blown out of proportion.
D) important social responsibility is.
E) easily ethical issues can be resolved.

Question 13

Daniel notices that one of his colleagues arrives late and leaves early from work every day. In deciding whether or not to report this behavior, what must he do first?

A) confront the colleague about the situation
B) discuss the situation with other colleagues
C) ask his wife what she thinks
D) know his company's policy regarding the ethics of his colleague's choice
E) discuss the situation hypothetically with his manager

Question 14

Joylene and Kurt are competing for a promotion. Hoping to sway her manager to promote her over Kurt, Joylene gives her manager an expensive bottle of wine. This is an example of

A) the misuse of company resources.
B) bribery.
C) dishonesty.
D) conflict of interest.
E) an acceptable gift.

Question 15

All of the following are common areas of misconduct observed in the workplace EXCEPT

A) misuse of company time.
B) abusive and intimidating behavior.
C) separation of personal financial interests from business dealings.
D) misuse of company resources.
E) conflict of interest.

Question 16

What is true of misusing company time?

A) Theft of time is not a common area of misconduct observed in the workplace.
B) Time theft costs can be difficult to measure but are estimated to cost companies hundreds of billions of dollars annually.
C) The average employee "steals" 10 hours a week with late arrivals, leaving early, and long lunch breaks.
D) The average employee doesn't misuse company time often enough to negatively affect productivity.
E) Time theft costs are easy to measure and do not cost companies very much money.

Question 17

Felix speaks fluent Spanish, and English is his second language. When communicating with his colleagues, Amanda and Joe, he uses words that are normal in his language, but they consider them profane. What does this exhibit?

A) Colleagues can often be oversensitive.
B) Profanity has a universal definition.
C) Abusive behavior is difficult to assess and manage.
D) Profanity is not considered to be an abusive behavior.
E) Regardless of intent, abusive behavior is easy to assess and manage.

Question 18

Marissa needs William's help to resolve an urgent work issue. She has emailed and called him several times, but William doesn't respond to any of her communications. William's behavior is an example of

A) a conflict of interest.
B) the misuse of company time.
C) bullying.
D) the misuse of company resources.
E) dishonesty.

Question 19

Physical threats, ignoring someone, yelling, and the use of profanity fall under which type of organizational misconduct?

A) conflict of interest
B) discrimination
C) abusive behavior
D) misuse of company time
E) retaliation by employees

Question 20

Spending an excessive amount of time on personal e-mails, submitting personal expenses on company expense reports, and using the company copier for personal use are all examples of

A) the misuse of company time.
B) conflicts of interest.
C) abusive behavior.
D) the misuse of company resources.
E) the pressure to compromise standards.

Question 21

When Rhea used her company credit card to buy $50,000 worth of new furniture for her house, she was fired. Which type of misconduct does this exemplify?

A) conflict of interest
B) misuse of company resources
C) misuse of company time
D) abusive behavior
E) bribery

Question 22

Which country is included in the list of least corrupt countries?

A) Denmark
B) Somalia
C) North Korea
D) South Sudan
E) Yemen

Question 23

A hairdryer manufacturer produced a new model that could dry a person's hair in under five minutes. When customers used this hairdryer and experienced scalp and hand burns, the manufacturer was required to create and enforce detailed plans to prevent future burns. This example relates to

A) fairness and honesty.
B) competition.
C) obeying laws and regulations.
D) intimidating behavior.
E) business relationships.

Question 24

The European Commission investigated Google to determine whether it promoted its own search results over those of other search engines in spite of their relevance. The aspect of fairness at issue here is

A) conflict of interest.
B) communications.
C) competition.
D) dishonesty.
E) disclosure of potential harm.

Question 25

All of the following are associated with dishonesty EXCEPT

A) lack of integrity.
B) competition.
C) lack of disclosure.
D) lying.
E) cheating.

Question 26

In the realm of business ethics, when automobile companies fail to issue recalls in a timely manner, this is an issue related to

A) conflict of interest.
B) communications.
C) product design.
D) business relationships.
E) financing.

Question 27

People in the entertainment industry claim that requiring warning labels on movies and videogames violates their ________ right.

A) Sixth Amendment
B) Thirteenth Amendment
C) Tenth Amendment
D) First Amendment
E) Second Amendment

Question 28

Who is engaged in plagiarism?

A) Nathan came up with a new training method, but his boss Bill claimed the idea as his own.
B) Neil bought some company stock based on inside information about the latest sales figures.
C) Taliyah used company financial data from the previous year in her presentation to stockholders.
D) Noel tells the other managers what he pays each of his employees.
E) Linda shows the company's new ad campaign to her best client.

Question 29

Which of the following indicates that a person has begun the process of resolving an ethical issue?

A) deciding not to discuss what he or she is doing with co-workers or superiors
B) recognizing the ethical issue and openly discussing it with others
C) ignoring the ethical issue until it goes away
D) making decisions without recognizing the embedded ethical issue
E) recognizing the ethical issue and keeping it secret

Question 30

Which of the following is NOT a question to consider in determining whether an action is ethical?

A) Are there any potential legal restrictions or violations that could result from the action?
B) Does your company have a specific code of ethics or policy on the action?
C) How does this activity fit with your own beliefs and values?
D) Would this activity be accepted by your co-workers?
E) Is this activity customary across all industries in your country?

Question 31

Lance's boss often goes on Facebook at work. As a result, the rest of his team goes on Facebook as well. This is an example of which factor of influence regarding ethical behavior?

A) individual moral standards
B) opportunity for misconduct
C) the influence of co-workers
D) the influence of managers
E) personal ethic.

Question 32

Kian's company, Microtech, does not have established rules and policies on ethics. It is a small, independent company that depends on its employees to use their own judgment. This structure can lead to

A) opportunity for misconduct.
B) conflicts of interest.
C) better co-worker relationships.
D) similar behavior across co-workers.
E) pressure to act unethically.

Question 33

All of the following are true of the causes of ethical conflict EXCEPT

A) codes of conduct increase ethical conflict for employees.
B) ethical conflict increases when employees feel that their company is exerting pressure on them to engage in unethical conduct.
C) business managers often experience some tension between their own ethical beliefs and their obligations to the organizations where they work.
D) employees often experience some tension between their own ethical beliefs and their obligations to the organizations where they work.
E) many employees utilize different ethical standards at work than they do at home.

Question 34

A set of formalized rules and standards that describes what a company expects of its employees is called a

A) mission statement.
B) code of liability.
C) moral philosophy.
D) social responsibility statement.
E) code of ethics.

Question 35

According to the National Business Ethics Survey, employees in organizations that have written codes of conduct and ethics training, ethics offices or hotlines, and systems for reporting are more likely to

A) ignore misconduct when they see it.
B) find clever ways to hide their misconduct.
C) report misconduct when they observe it.
D) deal with misconduct on their own.
E) assume that no misconduct exists in their organizations.

Question 36

Kellen just took a job as a financial advisor with a large firm. He wants to make sure that all of his business dealings are ethical. Which of the following will give him guidance on any gray or ambiguous area he may face at his new job?

A) a detailed mission statement
B) a sustainability statement
C) a code of ethics
D) a code of liability
E) a personal moral statement

Question 37

What is a reason why a code of ethics is important?

A) It alerts employees about important issues and risks to address.
B) It provides an individual approach to dealing with ethical decisions.
C) It serves as an internal document, which is not shared with the public, suppliers, or regulatory authorities.
D) It negates the need to have systems for reporting or places to go for advice when facing an ethical issue.
E) It negates the need to evaluate and improve ethical decision making.

Question 38

All of the following are true of current trends in ethics programs EXCEPT

A) organizations are moving away from legally based ethical initiatives.
B) organizations are moving toward cultural- or integrity-based initiatives.
C) organizations recognize that effective business ethics programs are good for business performance.
D) firms that develop higher levels of trust function more efficiently and effectively and avoid damaged company reputations and product images.
E) organizations are moving toward legally based ethical initiatives.

Question 39

Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities?

A) business ethics
B) corporate citizenship
C) sustainability
D) social dominance
E) ethical initiative

Question 40

A company committed to corporate citizenship might be engaged in

A) the development of a new website.
B) dumping hazardous waste on land rather than in waterways.
C) the expansion of the company's social media presence.
D) fundraising for a political candidate.
E) sustainable manufacturing processes.

Question 41

Master Corporation created its own continuing education program that offers eligible employees full tuition to pursue continuing education related to their roles at the company. It also created a scholarship program to help employees send their children to college. These programs exemplify the company's

A) ethics, principles, and values.
B) financial viability.
C) compliance with legal and regulatory requirements.
D) corporate citizenship.
E) philanthropic activities.

Question 42

All of the following are criteria the Ethisphere Institute uses to select its annual list of the world's most ethical companies EXCEPT

A) corporate citizenship and responsibility.
B) corporate governance.
C) legal, regulatory, and reputation track record.
D) innovation that contributes to the company's well-being.
E) industry leadership.

Question 43

What is an argument that supports social responsibility?

A) Business may not have the expertise needed to assess and make decisions about social and economic issues.
B) The responsibility of business to society is to earn profits and create jobs.
C) As members of society, businesses and their employees should support society through taxes and contributions to social causes.
D) Participation in social programs gives businesses greater power, perhaps at the expense of concerned stakeholders.
E) Social problems are the responsibility of the government agencies and officials who can be held accountable by voters.

Question 44

What has research shown regarding the relationship between social responsibility and profitability?

A) Social responsibility has no effect on business performance.
B) An emphasis on social responsibility reduces business performance.
C) Social responsibility initiatives reduce both business performance and profitability.
D) Social responsibility is linked to improved business performance.
E) An emphasis on social responsibility neither improves nor diminishes profitability.

Question 45

Employees expect businesses to

A) move completely to telecommuting.
B) respect their rights as consumers.
C) protect their investments.
D) keep them informed of what is happening in the company.
E) run the company without their input.

Question 46

Which item are companies offering to improve employee relations?

A) extended parental leave
B) elimination of all discrimination
C) fair treatment of consumers
D) LED office lighting
E) a code of ethics

Question 47

John F. Kennedy's consumer bill of rights outlined four rights: the right to be informed, the right to choose, the right to be heard, and the right to

A) file lawsuits.
B) service.
C) easy credit.
D) enter into contracts.
E) safety.

Question 48

Braxton Foods, Inc. started using a new preservative in its products. However, it didn't include anywhere on its packaging that this preservative could cause an allergic reaction to people who are allergic to milk products. This is a violation of the consumers' right to

A) be heard.
B) choose.
C) be informed.
D) safety.
E) be healthy.

Question 49

What is true about the role of the Federal Trade Commission's Bureau of Consumer Protection?

A) It protects consumers against unfair, deceptive, or fraudulent practices.
B) It is divided into four divisions.
C) It protects companies from unfair consumer demands.
D) The Division of Enforcement investigates consumer violations of laws.
E) It doesn't investigate unfulfilled holiday delivery promises by online shopping sites or scholarship scams.

Question 50

All of the following are ways businesses are working to resolve environmental concerns EXCEPT

A) recycling materials and making product packaging more environmentally friendly.
B) creating a positive association for unsuitable products, services, or practices.
C) eliminating wasteful practices, the emission of pollutants, and the use of harmful chemicals.
D) improving their products.
E) supplementing their services with alternative energy sources.

Question 51

The fact that environmental responsibility requires trade-offs means that it

A) instigates trade relations.
B) facilitates international competition.
C) helps in generating profits.
D) imposes costs on both business and the public.
E) promotes the practice of fair trade.

Question 52

While unemployment is often seen as an economic issue, it carries ethical implications when

A) too many people file for unemployment benefits.
B) high unemployment is coupled with a large gap between rich and poor.
C) whistleblowers cause people to lose their jobs.
D) businesses have to pay unemployment taxes.
E) the unemployment rate drops.

Question 53

A survey of employers conducted in Indiana revealed that ________ percent reported leaving positions unfilled because the applicants were not qualified.

A) 3
B) 11
C) 66
D) 51
E) 39

Question 54

Kishan, an employee at United Works, is considered a bully by his co-workers. Describe in detail the types of activities that constitute bullying in the workplace.

Question 55

Mouna, a regional sales manager with WaterWorks Corp., often shops online during her office hours. In this scenario, discuss the kind of misconduct that Mouna engages in and other kinds of misconduct that belong to the same category as per the National Business Ethics Survey.

Question 56

Discuss why a conflict of interest is one of the most common ethical issues identified by employees and list two types of conflicts of interest.