Deck 2: A: Being Ethical and Socially Responsible

Question 1

Explain the six basic rights of consumers.

Answer 1

Answer not provided.

Question 2

How does the economic model of social responsibility differ from the socioeconomic model of social responsibility?

Answer 2

Answer not provided.

Question 3

What would proponents of the socioeconomic model argue to support their position?

Answer 3

Answer not provided.

Question 4

Define business ethics.

Question 5

What are the major ethical issues businesspeople face?

Question 6

What are a few examples of companies acting socially responsible?

Question 7

What are the two views of social responsibility? Explain.

Question 8

Define a code of ethics. Do codes cover every business situation?

Question 9

What would opponents of the socioeconomic model argue to support their position?

Question 10

What actions may consumers take in the marketplace if they do not consider a firm to be exercising social responsibility?

Question 11

Define consumerism. How have the rights of consumers changed since 1930?

Question 12

What are the three major consumerism forces today?

Question 13

Why are fairness and honesty in business important ethical concerns? Give examples.

Question 14

What are the three major sets of factors believed to affect ethical behavior in an organization?

Question 15

What are some of the social factors that affect ethical decisions?

Question 16

Why is it easier for managers to make ethical decisions when business is good and profits are high than when business is not so good and profits are in trouble?

Question 17

How can the government encourage ethical behavior? Give an example.

Question 18

Define the doctrine of caveat emptor.

Question 19

How do the working conditions at factories today differ from those at factories of the 1920s?

Question 20

What might be the personal and social consequences of whistle-blowing within one's own firm?

Question 21

Refer to XYZ Coffee. If Nancy were Caucasian and the company employees were mostly Hispanic, the way she was treated would be referred to as

A) affirmative action.
B) legal discrimination.
C) simply unethical.
D) reverse discrimination.
E) a perfect match.

Question 22

The study of the morality of choices made by people is known as

A) ethics.
B) business ethics.
C) freedom of choice.
D) moral aptitude.
E) standard of behavior.

Question 23

Business ethics

A) is laws and regulations that govern business.
B) is the application of moral standards to business situations.
C) do not vary from one person to another.
D) is most important for advertising agencies.
E) is well-defined rules for appropriate business behavior.

Question 24

What sort of information should be included in a social audit? Who would prepare the audit? How would such a document be used?

Question 25

Refer to Excellent Air Inc. EAI's creation of its code of conduct demonstrated its application of moral standards to business situations, which is also known as

A) moral responsibility.
B) social consciousness.
C) social responsibility.
D) moral consciousness.
E) business ethics.

Question 26

Describe the four types of pollution. Who should pay for a clean environment?

Question 27

Refer to Excellent Air Inc. Initially, employees were not willing to go to EAI management with ethical issues but would instead report them to the press. This is an example of

A) whistle-blowing.
B) a social audit.
C) poor employees.
D) opportunity emptor.
E) a narc.

Question 28

Refer to Excellent Air Inc. To fix the ethical issue problems, EAI management should have implemented all of the following guidelines for making ethical decisions except which one?

A) Listen and learn.
B) Identify the ethical issue.
C) Create and analyze options.
D) Create an industry benchmark.
E) Explain your decision and resolve any differences that arise.

Question 29

The Jackson Springs Coal Mine recently discovered that the mine was contaminating the local drinking water. Cleaning up the mine and the surrounding areas would probably bankrupt the mine, causing the loss of hundreds of local jobs, but doing nothing would endanger the health of the community. The mine faces a serious ____ decision.

A) business
B) ethical
C) environmental
D) social responsibility
E) cost

Question 30

Why is pollution of concern to most citizens? Why are some businesspeople particularly concerned about pollution?

Question 31

Refer to Excellent Air Inc. The principles that EAI chooses to pride itself on show that the company has

A) a moral minority.
B) cultural diversity.
C) social responsibility.
D) caveat emptor.
E) a social audit.

Question 32

What are the four steps in developing a program of social responsibility?

Question 33

What is an affirmative action program? Be certain to detail the objectives of such programs in your answer.

Question 34

Refer to Excellent Air Inc. Since the company created its code of conduct, employees have limited ____, or amount of freedom to perform an unethical act.

A) time
B) responsibility
C) moral dilemmas
D) unethical options
E) opportunity

Question 35

Refer to XYZ Coffee. Which basic consumer right was infringed when Nancy bought the espresso machine?

A) The right to safety
B) The right to be heard
C) The right to service
D) The right to respect
E) The right to choose

Question 36

Refer to XYZ Coffee. Nancy's right to product options in buying an espresso machine is known as

A) caveat emptor.
B) consumerism.
C) affirmative action.
D) social audit.
E) business ethics.

Question 37

Why did Congress create the Equal Employment Opportunity Commission?

Question 38

How should social responsibility programs be funded? Explain your answer.

Question 39

Refer to XYZ Coffee. Before he got his job, another description for the employee who was hired over Nancy would be

A) hard-core unemployed.
B) minority.
C) whistle-blower.
D) caveat emptor.
E) consumerist.

Question 40

Refer to XYZ Coffee. Nancy is a(n) ____ within her community.

A) outcast
B) active member
C) minority
D) bad influence
E) unethical person

Question 41

All of the following are factors that affect the level of ethical behavior in an organization except

A) individual factors.
B) social factors.
C) opportunity.
D) demographic factors.
E) moral values.

Question 42

You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Chicago Bears if you help him out. This tactic is

A) a corporate discount.
B) a common business practice.
C) a bribe.
D) personal selling.
E) ethical.

Question 43

What specific area of business communications presents ethical questions by sometimes containing false and misleading messages for adults and especially children?

A) Press releases
B) Newspaper articles
C) Consumer Reports' rankings
D) Advertising
E) Audited financial reports

Question 44

A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporation from which it might purchase component parts. The company is trying to prevent

A) their employees from having other jobs.
B) a conflict of interest.
C) trade secrets from being revealed.
D) losing its executives to other organizations.
E) fairness and honesty.

Question 45

At Ledbetter Industries, employees are allowed one-hour lunches, but it has become common that most stroll back fifteen minutes late every day. The factor affecting the ethical behavior of Ledbetter's employees is

A) individual.
B) social.
C) opportunity.
D) code of ethics.
E) whistle-blowing.

Question 46

Metabo-Miracle offers a guaranteed weight loss of 10 pounds in one week without dieting or exercise. Thousands of customers purchase the products and about 200 call in with complaints that the product was ineffective. What action should Metabo-Miracle take?

A) It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.
B) It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.
C) It should explain to the customers that they misused the product and try to sell them more of the product.
D) It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.
E) It should ignore the customers' complaints and hope they will tire of calling and writing letters.

Question 47

For health-related companies such as Weight Watchers, one of the most frequent ethical issues related to communications that they face is

A) deception.
B) providing too much information.
C) seeking FDA approval.
D) experiments on animals.
E) safe packaging.

Question 48

You are the executive vice president for Cooper Tire, the sixth largest U.S. tire maker. You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo. This could create for you

A) a code of ethics.
B) the usual decision-making problems of cost versus benefit to Cooper Tire.
C) a wonderful, ethical opportunity to make a lot of money.
D) an ethical opportunity to move the distribution center to your hometown.
E) a conflict of interest.

Question 49

Bribes are

A) unethical.
B) ethical only under certain circumstances.
C) uncommon in many foreign countries.
D) economic returns.
E) ethical.

Question 50

Brant promised to repair Carolyn's car on Thursday. After picking up the necessary part at a junkyard, he discovered he could not do the job after all and that the junkyard would not buy back the part. Carolyn does not know about these developments. However, she thinks Brant will be finished with her car sometime today. What should Brant do?

A) Try to repair the car even though he does not really know how.
B) Try to repair the car so he can at least get his money's worth out of it.
C) Call Carolyn to inform her of the problem, and recommend a reputable repair shop.
D) Fake an emergency and contact Carolyn on Monday.
E) Stall for time to read up on car repairs so he can practice on Carolyn's car.

Question 51

Ranee is a businessperson who works for a successful and admired Fortune 500 company. About how often is Ranee likely to encounter ethical issues in the workplace?

A) Once or twice during her career
B) About two to three times per year
C) Approximately once a month
D) Almost every week
E) On a daily basis

Question 52

Employees of Copley Pharmaceutical, Inc., falsified drug manufacturers' reports to the FDA. These actions taken by Copley's employees were

A) moral.
B) normal.
C) in the best interests of the shareholders.
D) unethical.
E) in the best interests of the employees.

Question 53

When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer. This is an example of

A) an unethical organizational relationship.
B) a conflict of interest.
C) social responsibility.
D) unethical communications.
E) ethical persuasion.

Question 54

Investors expect management to do all of the following except

A) consult them on ethical decisions.
B) increase sales.
C) boost the company's profit.
D) increase the return to the investor.
E) make sensible financial decisions.

Question 55

Publisher's Clearing House has a policy that no employees or their family members are eligible to win the big sweepstakes. This policy was likely implemented to

A) shrink the pool of possible winners, which increases each individual's odds of winning.
B) prevent employees from accepting gifts or bribes from other employees.
C) encourage more magazine sales.
D) avoid an apparent conflict of interest.
E) satisfy the families of Publisher's Clearing House employees.

Question 56

Tony Shinn is applying for a mortgage to purchase his first home. His credit rating is mediocre due to several late payments on his credit cards and car loan. He is upset because his friend Jerry was offered an interest rate 3 percent less than what Tony was offered by the same mortgage company. This mortgage company's actions were

A) unethical―both Tony and Jerry should have been charged the same interest rates, regardless of their credit histories.
B) ethical―this is just a part of doing business because credit history is an important indicator of future payments.
C) illegal―subjective factors may not be used when determining which credit offers may be extended to certain customers.
D) unethical if Tony is a minority and Jerry is not.
E) unethical and illegal―customers must all be treated the same.

Question 57

Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning

A) fairness and honesty.
B) organizational relationships.
C) conflict of interest.
D) communications.
E) freedom of choice.

Question 58

Mattel, the maker of Barbie dolls, frequently shows television ads aimed at children on Saturday mornings, when many children are known to watch cartoons. Some of these ads mix cartoon-type animation and "real" shots of the dolls so that it is sometimes difficult for even an adult to determine what the doll can or cannot do. This most likely represents

A) a conflict of interest.
B) an ethical problem because children may be deceived about what Barbie can do.
C) an ethical concern for many creditors of Mattel.
D) illegal payoffs, if parents are getting more than they actually know they are paying for.
E) that Mattel employees need better working conditions and higher pay.

Question 59

Customers expect a firm's products to

A) boost sales.
B) be profitable.
C) earn a reasonable return on investment.
D) be available everywhere.
E) be safe, reliable, and reasonably priced.

Question 60

The ____ factor affecting ethical behavior includes one's moral values and central attitudes.

A) individual
B) social
C) opportunity
D) moral
E) ethical

Question 61

Suppose that when making decisions with ethical content, an executive for the Coca-Cola Company always considers whether she would be comfortable explaining her decision after the fact to a national TV audience. Such thinking

A) is clearly a way to shift responsibility and should be avoided.
B) encourages ethical decision making.
C) is likely to be illegal.
D) would encourage legal payoffs to university officials for making Coke the official on-campus drink.
E) violates several international laws.

Question 62

The American Apparel Manufacturers Association exerts pressure on its members to comply with the ethical standards of the industry and provides information and benefits for textile companies. This company is an example of a(n)

A) regulatory agency.
B) government agency.
C) trade association.
D) industry organization.
E) membership club.

Question 63

A whistle-blower is a person who

A) announces the beginning and end of a work shift.
B) praises his or her own accomplishments.
C) does public relations work for a company.
D) accepts responsibility when a company is in trouble with the government.
E) reports illegal or unethical conduct within his or her organization.

Question 64

When faced with an ethical conflict, a manager should always

A) ask the boss what to do, then do it without question.
B) consider only what is best for the company.
C) look at which decision will make the stockholder the most money today.
D) worry only about what the law has to say, then take legal action because it will produce the least public outcry.
E) think about his or her own ethics; the company's ethics; and the interest of employees, stockholders, and customers.

Question 65

Tom stormed into the office, exclaiming, "That's the last straw! I've experienced unethical behavior at this company one time too many. I'll be calling the press immediately." It appears that Tom is about to engage in

A) an unethical practice.
B) corporate ethics.
C) whistling.
D) trumpeting.
E) whistle-blowing.

Question 66

The human resources manager at Swingline, Inc., a manufacturer of office staplers, wants to encourage a more ethical climate in the organization. A likely way for Swingline to do this is to

A) make certain that Swingline has a company code of ethics that is enforced.
B) add an ethics department whose job is to constantly watch employees to be certain they behave.
C) develop a system of security cameras, telephone monitoring, and one-way mirrors to be certain that employees behave appropriately.
D) avoid any mention of ethics to employees so that they will not think unethical thoughts.
E) do none of the above. All of these practices are illegal because they take away an employee's constitutional right of free choice.

Question 67

At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control?

A) Individual
B) Social
C) Moral
D) Circumstantial
E) Opportunity

Question 68

Megan Miller is an ethics officer at a large financial institution. She likely performs all of the following duties except

A) coordinating ethical conduct.
B) providing advice to employees when they are uncertain.
C) giving top management advice about their decisions.
D) encouraging all employees to be whistle-blowers.
E) determining the punishment for ethical violations.

Question 69

What is probably the most effective way for a company to encourage ethical behavior?

A) Hire employees who are ethical and in agreement with the company's views.
B) Have ethics training sessions for interested employees.
C) Threaten employees with immediate termination for unethical behavior.
D) Post signs discouraging sexual harassment and discrimination.
E) Develop and enforce a written code of ethics for the organization.

Question 70

Informing the press or government officials about unethical practices within one's organization is called

A) unethical behavior.
B) whistling.
C) whistle-blowing.
D) trumpeting.
E) a company violation.

Question 71

Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most. The factor affecting the ethical behavior of Publix's employees is

A) individual.
B) social.
C) opportunity.
D) demographic.
E) internal code.

Question 72

Which of the following is the most effective way to encourage ethical business behavior?

A) Pass government regulations.
B) Provide guidelines from trade associations.
C) Include an ethics clause in a labor contract.
D) Establish and enforce a corporate code of ethics.
E) Rely on employees to blow the whistle.

Question 73

After consulting his company's code of ethics, Mark is still unsure of whether or not the decision he is about to make is ethical. Which of the following actions would be most appropriate?

A) Ask his wife what she would do in this situation.
B) Calculate the decision's bottom-line impact and do whatever increases profit the most.
C) Determine whether coworkers, suppliers, and customers would approve of the action.
D) Go with his gut feeling because Mark considers himself to be an ethical individual.
E) Avoid making the decision and any other decision with ethical implications.

Question 74

Rose Martinez walked into her office and found a large, extravagant bouquet on her desk. Before she had time to read the card, her secretary said it was from Mr. Tanner at Zero Corporation. The secretary knew Mr. Tanner was trying to negotiate a sales deal with the company. Thus, she remarked that the beautiful flowers should help Ms. Martinez make her decision. Although Ms. Martinez did not know how to respond to Mr. Tanner's gift, she thought an answer might be in her company's

A) sales procedures.
B) sales manual.
C) employee handbook.
D) code of ethics.
E) sales training tapes.

Question 75

Which of the following scenarios provides the best example of whistle-blowing?

A) Jonathon fails to meet his sales quota for the month and is reported to the regional manager for special review.
B) Christine tells her husband about illegal environmental dumping she suspects her company is doing.
C) William gives an interview on NBC's Dateline about the opportunities available at his company.
D) Geena speaks to her boss about how uncomfortable she is with the sexual jokes one of her coworkers frequently tells at the office.
E) Marie has grown tired of her company's unsafe practices and reports them to OSHA, a governmental agency that regulates safety.

Question 76

The Healthcare Financial Management Association expects its code of ethics to provide all of the following benefits except

A) create an outline for ethical policies and standards.
B) encourage employees to behave ethically.
C) communicate the company's expectations to the employees.
D) describe what to do in every ethical situation.
E) detail the punishment that will be given for an ethical breech.

Question 77

As a result of the Bhopal incident, in which a toxic gas leak killed thousands of people, leading officials at Union Carbide have dedicated themselves to operating their business ethically. Ways in which the company can encourage ethical behavior include all of the following except

A) formalizing a corporate code of ethics.
B) encouraging whistle-blowing.
C) holding ethics training sessions.
D) requiring that ethical behavior be profitable.
E) promoting open decision making.

Question 78

If a company deals with violations of its ethical codes ____, the opportunity to be unethical will be reduced.

A) leisurely and lightly
B) firmly and consistently
C) on a case-by-case basis
D) quietly and erratically
E) frequently and severely

Question 79

What are the three sets of factors that influence the standards of behavior in an organization?

A) Organizational norms, circumstances, morals
B) Peer pressure, attitudes, social factors
C) Historical factors, management attitudes, opportunity
D) Opportunity, individual factors, social factors
E) Financial factors, opportunity, morals

Question 80

Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed's ethical behavior?

A) Individual
B) Social
C) Moral
D) Circumstantial
E) Opportunity