Deck 2: Understanding Business Ethics and Social Responsibility

Question 1

What category of ethics relates to matters such as hiring,firing,working conditions,privacy and respect?

A) Behavior toward economic agents
B) Behavior toward employees
C) Behavior toward the organization
D) Elimination of conflicts of interest
E) Social responsibility

Answer 1

B

Question 2

Standards that help to shape behaviors towards employees,the organization,and other economic agents are

A) social responsibilities.
B) managerial ethics.
C) whistle-blowing techniques.
D) values.
E) morals.

Answer 2

B

Question 3

Some ethical and unethical behaviors fall into gray areas,while others are widely agreed upon.

Answer 3

True

Question 4

A conflict of interest occurs when an activity may benefit the individual to the detriment of his or her employer.

Question 5

Which of the following is the BEST description of organizational stakeholders?

A) Competitors
B) Government regulators
C) The officers and key employees of an organization
D) Individuals and businesses who own stock in a company
E) Individuals and groups that are directly affected by the practices of a company

Question 6

What is likely the single MOST effective step that a company can take to set ethical standards?

A) Offer large cash awards for whistle-blowing.
B) Suggest that employees take ethics training.
C) Post ethical rules on bulletin boards.
D) State that the workplace values diversity.
E) Demonstrate support from top management.

Question 7

When evaluating a decision based on the ethical norm of rights,a manager is MOST likely to consider which of the following questions?

A) Is the decision consistent with what we regard as fair?
B) Does the decision respect the individuals involved?
C) Is the decision consistent with people's responsibilities to each other?
D) Does the decision optimize the benefits for those who are affected by it?
E) Does the decision comply with current legislation?

Question 8

What constitutes ethical behavior is determined entirely by the individual.

Question 9

When a firm significantly increases the price of a good or service because of an increase in demand,what unethical practice are they potentially engaging in?

A) Consumerism
B) Collusion
C) Unfair pricing
D) Collaboration
E) Price gouging

Question 10

Ethical values do not vary from person to person.

Question 11

The standards of behavior that guide managers in their work are called written codes.

Question 12

How do top managers BEST demonstrate a commitment to ethical business practices?

A) By adopting and enforcing written codes of ethics
B) By reading employees' e-mails
C) By decentralized decision-making practices
D) By cooperating with other companies
E) By monitoring employees' web searches

Question 13

Ethics are beliefs about what is right and wrong.

Question 14

An individual's personal code of ethics is shaped by his or her life experiences.

Question 15

Which ethical norm considers whether a particular act optimizes the benefits to those who are affected by it?

A) Utility
B) Rights
C) Justice
D) Caring
E) Respect

Question 16

What are individual beliefs about what is right and wrong or good and bad referred to as?

A) Motivators
B) Rules
C) Cultures
D) Ethics
E) Laws

Question 17

When an activity benefits an individual but not the employer,what ethical dilemma has been created?

A) Lack of social responsibility
B) Violation of the code of conduct
C) Conflict of morals
D) Interaction with primary agents of interest
E) Conflict of interest

Question 18

Which of the following ethical norms that ensure an action is consistent with what's fair?

A) Caring
B) Morals
C) Justice
D) Social responsibility
E) Economic agents

Question 19

Business ethics refer to ethical or unethical behaviors by employees in the context of their personal lives.

Question 20

Which of the following should be the first step in assessing ethical behavior in a certain situation?

A) Seek the advice of managers.
B) Make a judgment based on the outcome of the activity.
C) Consider appropriate moral values.
D) Collect facts related to the situation.
E) Gather a range of opinions on the effectiveness of the policy.

Question 21

What is the purpose of a written code of ethics?

Question 22

When a multinational organization supports its commitment to stakeholders,which stakeholders are they most concerned with?

A) The stakeholders in their home country
B) The stakeholders where most sales are made
C) The stakeholders in emerging markets
D) The stakeholders represented by the government
E) The stakeholders in every country where business is done

Question 23

Some actions may be illegal,yet considered ethical.

Question 24

A business's social responsibility to investors includes following proper accounting procedures.

Question 25

What role has e-mail played in business ethics and company practices?

Question 26

Though an individual feels that his behavior is ethical,that behavior may still be considered unethical if social norms consider it to be so.

Question 27

When defining its sense of social responsibility,a firm typically confronts what areas of concern?

Question 28

The most essential element in encouraging ethical behavior in an organization is letting employees dictate ethical norms.

Question 29

What is the difference between ethics and social responsibility?

Question 30

In the United States,there are increased expectations for a greater social role for business.

Question 31

Why are employers concerned about the use of e-mail and potential legal liability,and what steps are being taken to prevent issues?

Question 32

What is the name of the concept that expanded the role of business in protecting and enhancing the general welfare of society?

A) Ethics
B) Morals
C) Social responsibility
D) Accountability
E) Restraint

Question 33

The ethical norm of utility evaluates whether an act respects the rights of all parties.

Question 34

Managerial ethics can be classified into three areas; behavior toward employees,behavior toward the organization,and behavior toward other economic agents.

Question 35

What would constitute a conflict of interest in a business setting?

Question 36

What stakeholder group is being protected when managers follow proper procedures and strive to be accurate and candid in assessing future growth?

A) Customers
B) Employees
C) Investors
D) Suppliers
E) Local communities

Question 37

When businesses work to honor warranties,charge fair prices and stand behind the quality of their products,what stakeholder group are they supporting?

A) Customers
B) Employees
C) Investors
D) Suppliers
E) Local communities

Question 38

What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?

A) Business ethics
B) Socialization
C) Stakeholder consciousness
D) Social responsibility
E) Corporatization

Question 39

What is the term given to the groups,individuals,and organizations that are directly affected by the practices of an organization?

A) Primary agents of interest
B) Social auditors
C) Competitors
D) Organizational stakeholders
E) Local communities

Question 40

Describe the three-step model for applying ethical judgments.

Question 41

Which of the following is created by the chemical or radioactive by-products of the manufacturing process?

A) Fracking
B) Toxic waste
C) Alternative sources of energy
D) Carbon dioxide
E) Landfill waste

Question 42

The Consumer Bill of Rights is backed by numerous federal and state laws.

Question 43

A company that does not act responsibly toward its customers may lose their trust and ultimately their business.

Question 44

Which of the following includes provisions that control air pollution by members?

A) Sarbanes-Oxley
B) GAAP
C) Code of ethics
D) NAFTA
E) FTC

Question 45

What is the result of two or more firms collaborating on a wrongful act,such as price fixing?

A) Unfair pricing
B) Price gouging
C) Product collaboration
D) Collusion
E) Consumerism

Question 46

When a firm modifies a production process to limit the consumption of valuable resources,and promotes the product produced as environmentally friendly,what business practice are they engaging in?

A) Collusion
B) Consumerism
C) Green marketing
D) Recycling
E) Near zero status

Question 47

What do new forms of solid-waste disposal,such as repurposing combustible waste,help prevent?

A) Future contamination of land
B) Toxins
C) Use of phosphates
D) Runoff
E) Zero-landfill claims

Question 48

Social activism dedicated to protecting the rights of consumers is the result of what?

A) Decreased consumer rights
B) Consumerism
C) International agreements
D) The Consumer Bill of Rights
E) Green marketing efforts

Question 49

When a stakeholder uses confidential information to gain from the sale or purchase of a stock,what ethical violation are they engaging in?

A) Whistle-blowing
B) Insider training
C) Social accommodation
D) Collusions
E) Gouging

Question 50

Describe the stakeholder model of social responsibility.

Question 51

When working to protect the environment,what type of pollution is created by carbon monoxide and other chemicals produced by manufacturing plants?

A) Noise
B) Land
C) Water
D) Air
E) Waste

Question 52

What must every corporation do in maintaining and reporting its financial status?

A) Purchase stocks on margin
B) Use creative accounting practices
C) Support increased stock prices
D) Aim to maximize predicted profit margins
E) Conform to generally accepted accounting principles

Question 53

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

A) Prevent insider trading
B) Engage in strategic management
C) Guarantee the accuracy of financial reporting
D) Hire a forensic accountant
E) Oversee the implementation of ethical standards

Question 54

Explain the steps that an organization must take to foster a company-wide sense of social responsibility.

Question 55

Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?

A) Identity theft
B) A margin purchase
C) Insider trading
D) Collusion
E) A guarantee

Question 56

What is the main cause of water pollution?

A) Acid rain
B) Landfill runoff
C) Chemical and waste dumping
D) Vehicle exhaust
E) Decomposition

Question 57

What Act requires an organization's chief financial officer to personally guarantee the accuracy of all financial reporting?

A) Generally Accepted Accounting Principles (GAAP)
B) Securities and Exchange Commission (SEC)
C) Sarbanes-Oxley
D) False Claims Act of 1863
E) Whistle-Blower Protection

Question 58

Which of the following regulates advertising and pricing practices to protect consumers?

A) Generally Accepted Accounting Principles
B) North American Free Trade Agreement
C) Food and Drug Administration
D) Federal Trade Commission
E) Children's Online Privacy Protection Act

Question 59

What is the practice of injecting water and chemicals into underground rock in order to break the rock apart called?

A) Recycling
B) Toxic waste elimination
C) Fracking
D) Zero-landfill support
E) Repurposing

Question 60

What is the term for an employee who discovers an illegal or unethical activity and tries to put an end to it by speaking up?

A) Whistle-blower
B) Inside trader
C) Obstructionist
D) Colluder
E) Accommodator

Question 61

The best stance toward social responsibility a company can take is a proactive one.

Question 62

Those firms who look for opportunities to contribute positively to society because of a sincere desire to improve social welfare take what type of social responsibility stance?

A) Obstructionist
B) Accommodative
C) Social accommodations
D) Defensive
E) Proactive

Question 63

What is the most common and direct way to provide direct financial support when taking a proactive stance to social responsibility?

A) Set up a foundation
B) Reduce prices
C) Make a donation with each purchase
D) Use the Internet to solicit donations
E) Follow all laws set forth by the government

Question 64

If a firm hides responsibility for wrongdoing,what type of stance are they taking toward social responsibility?

A) Responsible
B) Obstructionist
C) Accommodative
D) Proactive
E) Moderate

Question 65

Identify who is responsible for regulating advertising and what the key issues are.

Question 66

Firms that meet,and occasionally exceed legal and ethical requirements take what type of social responsibility stance?

A) Proactive
B) Social accommodation
C) Defensive
D) Accommodative
E) Obstructionist

Question 67

If a manager believes their job is to generate profits and is willing to do everything legally required,but no more,what social responsibility stance is being taken?

A) Proactive
B) Accommodative
C) Defensive
D) Obstructionist
E) Social accommodation

Question 68

Small businesses must answer many of the same social responsibility questions as big businesses.

Question 69

Identify two arguments against social responsibility as a business goal.

Question 70

When the government dictates what organizations can and cannot do,what tactic is the government using?

A) Social responsibility
B) Taxation
C) Stakeholder support
D) Regulation
E) Socialism

Question 71

How does the government affect the idea of social responsibility in a planned economy?

A) The government requires higher stakeholder returns.
B) The government passes laws to make sure business interests do not damage society.
C) The government heavily regulates business activities to ensure the business supports social ideals.
D) The government attempts to offset small business restrictions.
E) The government limits regulations in exchange for planned giving.

Question 72

What concept is supported by those who believe that corporations should help improve the lives of citizens?

A) Social auditing
B) Government initiative
C) Collusion
D) Social responsibility
E) Social accommodation

Question 73

How do issues of social responsibility and ethics affect small business?

Question 74

What is collusion?

Question 75

What stance do firms who do as little as possible to solve social or environmental problems take?

A) Social accommodation
B) Obstructionist
C) Defensive
D) Accommodative
E) Proactive

Question 76

In business,ethical decisions are generally based on what?

A) Social responsibility
B) Individual ethics
C) Laws
D) Societal norms
E) Stakeholder returns

Question 77

Define consumerism.

Question 78

What is insider trading? Why would an investor engage in it?

Question 79

The proactive approach to social responsibility argues that profits should not be spent on social programs.

Question 80

There is general consensus within the United States that social responsibility must take precedence over profits.