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

Question 1

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.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

Broche Technologies, a brand of electronic appliances, develops a new range of refrigerators that do not release chlorofluorocarbons. The company promotes these products as the most eco-friendly refrigerators in the market. In this scenario, Broche Technologies is engaging in _____.

A)astroturfing
B)greenwashing
C)cause-related marketing
D)green marketing

Answer 3

D

Question 4

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 5

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

Question 6

An ethical dilemma involves clear misconduct at the workplace.

Question 7

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 8

Crumbie, a cereal company, not only provides nutritional information on the packaging box of its product but also goes a step ahead by providing a pamphlet that gives a detailed description of the production process. Given this information, it can be deduced that Crumbie is an advocate of _____.

A)consumerism
B)protectionism
C)developmentalism
D)integralism

Question 9

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

Question 10

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

Question 11

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

Question 12

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 procedure. According to the new procedure suggested by David, less resources will be exhausted. This will ensure that the ability of future generations to meet their needs is not harmed because of shortage of natural resources. 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 13

The _____ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit.

A)Sarbanes-Oxley Act
B)Blaine Act
C)Landrum-Griffin Act
D)Dawes Act

Question 14

Homebound, a home decor company, annually donates blankets to various nonprofit organizations. These nonprofit organizations distribute the blankets among the poor. Given this information, Homebound's gesture is an example of:

A)consumerism.
B)corporate responsibility.
C)corporate philanthropy.
D)freeganism.

Question 15

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

Question 16

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 17

Finoret, a petroleum company, was infamous for its wasteful production methods and continuous violation of the emission standards set by the Environmental Protection Agency. However, when the new CEO took over, the company completely changed its environmental philosophy and adopted an eco-friendly technology to minimize the emission of harmful gases. In the given scenario, the company took a step toward decreasing its _____.

A)liquid-to-gas ratio
B)ecological debt
C)carbon footprint
D)green procurement

Question 18

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

Question 19

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 ten 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 20

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

Question 21

__________is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard.

A)Green marketing
B)Consumerism
C)Economic liberalism
D)Outsourcing

Question 22

Five individuals get food poisoning after consuming aerated drinks of a well-known company. Following this incident, the public demands an inquiry into the company's manufacturing processes. This demand by the public represents _____.

A)consumerism
B)protectionism
C)commercialism
D)integralism

Question 23

CappaStreet is a company that produces gourmet coffee. The company's employees, the coffee bean growers who supply raw materials to the company, the people who purchase its coffee, and the people who live in the community where the company has its production unit are CappaStreet's:

A)benefactors.
B)shop stewards.
C)philanthropists.
D)stakeholders.

Question 24

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 25

Rene's boss asks her to perform a social audit of the company following mass media's harsh criticism of the company's ethical standards. In this case, Rene will first:

A)determine how to measure the achievement of goals during the social audit.
B)evaluate if the firm had achieved its initial social responsibility objectives.
C)establish the goals required to conduct the social audit.
D)quantify the involvement of the firm in societal development activities.

Question 26

Consumerism is a widely accepted social movement. Which of the following can be considered a consumer's right?

A)Attaining any desired product at its lowest price
B)Availing extended warranties on purchased products
C)Expressing legitimate complaints easily
D)Returning a product with a full refund

Question 27

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 28

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 29

In the context of social responsibility,__________include employees and investors who have a personal interest in the performance and actions of an organization.

A)focus groups
B)philanthropists
C)prosumers
D)stakeholders

Question 30

In the context of legal and ethical dimensions of business conducts, 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 31

FreshBean is an online grocery delivery service. Its employees and customers, the farmers from whom the company obtains its products, and the people who live in the community where the company operates are FreshBean's _____.

A)union organizers
B)shop stewards
C)philanthropists
D)stakeholders

Question 32

In the context of an organization dedicated to promoting corporate social responsibility, which of the following statements is true of measuring a company's success by evaluating a double bottom line?

A)It establishes ways of simultaneously measuring both sales and profits of a firm.
B)It accounts for traditional financial indicators, such as earnings.
C)It is based on generating financial rewards for managers whose fundraising contributions to community-based organizations exceed expectations.
D)It indicates a preference for meeting profit goals and de-emphasizes any social contributions that would cut into profits.

Question 33

Angorasia, an Asian country, supports a free market system. The flexible economy of the country makes it fairly easy for new sellers to enter the market, which in turn gives buyers a variety of choices in terms of products and services. Given this information, it can be said that Angorasia supports _____.

A)integralism
B)protectionism
C)neorealism
D)consumerism

Question 34

Quinbeck Inc., a computer manufacturing company, annually donates 6% of its total profits to an orphanage. The company also provides free personal computers to children to promote learning among them. Given this information, Quinbeck Inc. most likely engages in _____.

A)consumerism
B)corporate responsibility
C)corporate philanthropy
D)freeganism

Question 35

Antonsen Inc., an accounting firm in Texas, follows certain guidelines while providing consulting services to a firm. One such guideline is to limit the services it provides to the firms it audits. The CEO of Antonsen Inc. is also required to certify the validity of the company's financial statements. In this scenario, Antonsen Inc. most likely abides by the requirements of the _____.

A)Sarbanes-Oxley Act
B)Blaine Act
C)Landrum-Griffin Act
D)Dawes Act

Question 36

Heleus Oil & Gas Company routinely performs emission tests to keep a check on the emissions produced by its corporate operations and find new ways to reduce them significantly. In this scenario, Heleus Oil & Gas Company is tracking its:

A)Scope 1 emissions.
B)Scope 2 emissions.
C)Scope 3 emissions.
D)Scope 4 emissions.

Question 37

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 38

In the context of ethics and social responsibility in the global arena, which of the following statements is true of a business's responsibility to workers abroad?

A)Companies must base their employee performance and appraisal decisions on the average wage standards in the United States.
B)American businesses should mandate banning 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)When deciding living wages, companies must bring together their own values with the laws of both the United States and their host countries.

Question 39

The residents of North Barkminster, a suburb in the European country of Geratow, protest against a large corporation that is newly established in the area. They complain that there has been a rise in respiratory illnesses among the people because of the pollution caused by employee commute following the company's establishment. In this scenario, the residents of North Barkminster are protesting against the company's _____ emissions.

A)Scope 1
B)Scope 2
C)Scope 3
D)Scope 4

Question 40

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 41

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

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

Question 42

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 43

Spacein, a hard drive manufacturer, is accused of deliberately creating flaws in its product design. News reports hint that the company has been doing this for years to reduce the time between consumer repurchases. In the context of social responsibility, Spacein has been accused of _____.

A)project mismanagement
B)planned obsolescence
C)crash simulation
D)modular function deployment

Question 44

Jessica Marshall, the CEO of ABD Oil Drilling Inc., decides to set aside an amount of $10,000 from the company's annual profits to donate to local nonprofit organizations although the company already meets the mandated government requirement of contributing 4 percent of the company's revenue for social benefits. This donation by ABD Oil Drilling Inc. is an example of:

A)economic opportunism.
B)stakeholder remuneration.
C)corporate philanthropy.
D)planned obsolescence.

Question 45

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

Question 46

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 47

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 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

Trotin Langdon Corp., a leading car dealer, 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 only for nine hours a day. In this scenario, Trotin Langdon Corp. has set _____ for its vendors.

A)universal legal standards
B)a code of conduct
C)opportunistic attributes
D)greenwashing strategies

Question 50

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

Question 51

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 52

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 and unethical
D)illegal and ethical

Question 53

Transparency International, a leading anticorruption organization, published its yearly index of "perceived corruption" across 168 countries in 2015. Its findings showed that:

A)countries such as India and China had a higher score in the index of perceived corruption than the United States.
B)the United States scored lesser than most of the European countries in the index of perceived corruption.
C)the corruption level in the world's poorest countries was very low as most businesses were owned by the government.
D)there was greater corruption in the business cultures of richer countries than poorer countries.

Question 54

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 55

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____.

A)consumerism
B)green marketing
C)corporate philanthropy
D)integralism

Question 56

In the context of a company's responsibility to the environment, which of the following is the idea behind sustainable development?

A)To raise money by increasing sales of a company's products so that a significant amount can be donated to nonprofit organizations
B)To be able to wisely choose between two bad options by judging the losses associated with each
C)To report unethical and illegal societal 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 57

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)human acts and morality basics

Question 58

In the context of monitoring ethics and social responsibility, 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 59

Aragon, a brand of inverters, provides products that work well in the first year of their use. The performance of the products, however, starts declining after the first year, and the products eventually become unusable within a short period of time. The pattern of breakdown is similar for all Aragon inverters. Reports suggest that Aragon intentionally creates inferior products to increase repurchases. In the given scenario, Aragon is guilty of _____.

A)project mismanagement
B)planned obsolescence
C)crash simulation
D)modular function deployment

Question 60

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 61

The trade union members of a wool manufacturing company are the company's _____.

A)middlemen
B)shop stewards
C)philanthropists
D)stakeholders

Question 62

Trexlex, a sports 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 to accommodate their training schedules. In the context of a business's responsibility toward the community, this act by Trexlex exemplifies _____.

A)corporate opportunism
B)corporate relativism
C)corporate etiquette
D)corporate responsibility

Question 63

Fritzman Inc., a market research company, stocks its office pantry with an array of organic drinks and snacks to promote healthy eating habits among its employees. It also provides all its employees a free membership to a local gym. These gestures are Fritzman Inc.'s idea of _____.

A)corporate philanthropy
B)social responsibility
C)consumerism
D)freeganism

Question 64

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 65

The Canadian government issues a legal notice to one of its coal manufacturing companies after the government learns that the heating equipment purchased by the company emits a higher level of gases than the level permitted by the Environmental Protection Agency. In this scenario, the coal manufacturing company is in violation of exceeding the level of its _____ emissions.

A)Scope 1
B)Scope 2
C)Scope 3
D)Scope 4

Question 66

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

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

Question 67

Krempe Foods, a fast-food chain in Dallas, gives paramount importance to consumer feedback and has a well-established consumer feedback system. Given this information, it can be said that Krempe Foods supports _____.

A)integralism
B)protectionism
C)neorealism
D)consumerism

Question 68

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 69

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.

A)anaerobic digestion
B)leapfrogging
C)carbon footprint
D)green procurement

Question 70

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____.

A)social audit
B)continuous audit
C)statutory audit
D)horizontal audit

Question 71

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 72

A cement company decided to modify its production methods to minimize the negative impact of the company's activities on the environment. The company also invested in the purchase of upgraded machinery to implement this plan. In the given scenario, the cement company most likely embraced the idea of _____.

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

Question 73

In the context of ethics and social responsibility in the global arena, U.S. corporations are forbidden to offer bribes since 1977 under the _____.

A)Foreign Corrupt Practices Act
B)Sarbanes-Oxley Act
C)Landrum-Griffin Act
D)Corruption of Foreign Public Officials Act

Question 74

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 75

In the context of a socially responsible organization, which of the following statements is true of consumerism?

A)It is a drive that supports contribution to nonprofits through cause-related marketing.
B)It is a movement that suggests that customer rights should be the starting point of any business.
C)It describes the judgmental and excessive bargaining power of buyers.
D)It focuses on the right of the customers to be involved in the pricing of certain products.

Question 76

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 77

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 78

The government of Keiron, a South Asian country, noticed a visible decline in the country's natural resources. To counter this, it passed an act that mandated all businesses to reduce wastage and adopt more eco-friendly methods of production. In the given scenario, the government of Keiron most likely embraced the idea of _____.

A)sustainable development
B)corporate philanthropy
C)eco-labeling
D)greenwashing

Question 79

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 80

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