Deck 5: Ethics and Corporate Social Responsibility

Question 1

The Sarbanes-Oxley Act and Ontario's Bill C-198 were both passed to

A) punish those who committed accounting fraud in the late 1990s.
B) improve corporate profits.
C) help laid-off employees get their jobs back.
D) help investors recoup their losses.
E) help restore confidence in Corporate America and Canada.

Answer 1

E

Question 2

Which of the following have been cited as incidents of unethical business activity recently?

A) Unfair competitive practices in the computer industry
B) Deceptive advertising of medicines and toys
C) Accounting fraud
D) Deceptive advertising of food products
E) All of the answers are correct

Answer 2

E

Question 3

Following an ethics-based approach to decision making will normally lead to higher ________.

A) profits
B) trust and cooperation
C) prices
D) employee turnover

Answer 3

B

Question 4

Corporate values are:

A) a personal matter to be determined by each employee.
B) taught by attending company-sponsored seminars.
C) instilled by the leadership of outside consultants.
D) learned by observing the actions of others in the organization.

Question 5

Which of the following would be a unique focus of an integrity-based ethics code?

A) Increased control over employee actions.
B) Shared accountability among employees.
C) Increased penalties for code violators.
D) Improved awareness of the relevant laws.

Question 6

Which of the following statements is false?

A) Ethical issues are limited to for-profit organizations.
B) Business ethics goes beyond legal issues.
C) Ethical conduct builds trust among individuals and in business relationships.
D) Ethical conflicts may evolve into legal disputes.
E) Regardless of what an individual feels about a particular action, if society judges it to be unethical, that judgment affects the organization's ability to achieve its objectives.

Question 7

All of the following are reasons why a business should be managed ethically except:

A) because it is the right thing to do.
B) because strict global regulations require it.
C) to attract new customers and retain existing customers.
D) to please customers, employees, and society.

Question 8

________-based code of ethics.

A) Internet
B) personal responsibility
C) compliance
D) integrity

Question 9

A competitive corporate environment:

A) can encourage employees to deceive customers.
B) should focus on improving corporate profit.
C) must be ignored when corporate ethics are developed.
D) can best define ethical behaviour based on current circumstances.

Question 10

Which of the following statements about business ethics is false?

A) It concerns the impact of a business's activities on society.
B) It refers to principles and standards that define acceptable behavior in business organizations.
C) It relates to an individual's values and moral standards and the resulting business decisions he or she makes.
D) What is ethical is determined by the public, government regulators, interest groups, competitors, and each individual's personal moral values.
E) Studying it can help you recognize ethical issues and understand how others make unethical decisions.

Question 11

Which step is the most critical to help improve business ethics?

A) Top management must adopt and support a corporate code of conduct.
B) The ethics code must be enforced.
C) An ethics office must be set up.
D) Outsiders must be told about the ethics program.

Question 12

Which of the following terms describes someone who reports illegal or unethical behaviour?

A) Whistleblower
B) Horn blower
C) Watch tower sentinel
D) Integrity watchdog

Question 13

A set of formalized rules and standards that describe what a company expects of its employees is called a(n)

A) code of ethics.
B) opportunity.
C) moral philosophy.
D) guideline.
E) law.

Question 14

Studying business ethics will not necessarily

A) help you recognize ethical issues.
B) help you understand the importance of ethical decisions.
C) inform you concerning the impact of the work group on ethical decisions.
D) describe the ethical decision-making process.
E) tell you what you ought to do.

Question 15

Which of the following would least likely involve ethical concerns?

A) Overstating an expense report.
B) Forecasting sales for the next year.
C) Withholding product safety information.
D) Ignoring unsafe working conditions.

Question 16

With respect to business ethics,it can be said that "it takes two to tango." This indicates that:

A) dancing around issues should be part of a firm's code of ethics.
B) an individual's behaviour is influenced by the behaviour of others.
C) teamwork eliminates a need for personal ethics.
D) management is insensitive to ethical issues.

Question 17

The majority of CEOs blame unethical employee conduct on:

A) the breakdown of traditional religious institutions.
B) a failure of leadership to establish ethical standards.
C) the increase in lawsuits used to avoid personal responsibility.
D) the nation's business schools that tolerate unethical behaviour in students.

Question 18

Organizational ethics are learned by:

A) attending corporate responsibility seminars.
B) tracking the failures of those who are caught in business scandals.
C) attending business classes and regularly taking notes.
D) observing the actions of others.

Question 19

When managers appear to disregard ethical concerns,the likely results would include:

A) reduced employee turnover.
B) improved manager morale.
C) reduced lawsuits.
D) mistrust between workers and management.

Question 20

After developing a code of ethics,it should be communicated to:

A) everyone with whom the business has dealings.
B) the police in jurisdictions where the business has operations.
C) all levels of management.
D) stockholders.

Question 21

One strategy guaranteed to displease your customers is to:

A) delight them with a quality product at a fair price.
B) focus on cost and quality control systems within your organization.
C) practice deception regarding product safety issues.
D) shift the production of goods to foreign facilities and layoff Canadian workers.

Question 22

Consumers vote against firms they view as socially irresponsible by not

A) boycotting the company's products.
B) expressing dissatisfaction by protesting.
C) writing their representatives in Congress.
D) buying the company's products.
E) filing complaints with the company.

Question 23

What occurs when an employee exposes an employer's wrongdoing to outsiders?

A) Fraud
B) Whistleblowing
C) Plagiarism
D) Mayhem
E) A criminal lawsuit

Question 24

Which of the following describes charitable donations by corporations to nonprofit organizations?

A) Corporate philanthropy
B) Corporate responsibility
C) Corporate strategy
D) Structural commitment

Question 25

Those who argue in favour of corporate social responsibility suggest that:

A) you need to justify socially responsible behaviour from an investors standpoint only.
B) being socially responsible is all about being ethical.
C) business exists only to make money for shareholders.
D) companies who are perceived as being socially responsible will ultimately earn more profits for their investors.

Question 26

Top leaders in government and business today are:

A) held to higher ethical standards than in the past.
B) held to less strict moral standards than in the past.
C) less interested in social responsibility than in the past.
D) at odds with the general public in regard to ethical issues.

Question 27

Corporate social responsibility describes the firm's:

A) responsibility to their stockholders.
B) ability to plan for the unexpected.
C) commitment to a management training program.
D) concern for the welfare of society.

Question 28

Corporate ________ encompasses various issues such as setting minority hiring practices,manufacturing safe products,and minimizing pollution.

A) responsibility
B) philanthropy
C) diversity
D) structure and strategy

Question 29

Which of the following is NOT one of the "Market Assessment and Strategy Development" responsibilities?

A) Customer privacy policies and practices
B) Product safety
C) Research practices
D) Pricing practices
E) Consumer safety information

Question 30

Which of the following is NOT one of the "Attracting,Retaining and Managing Talent" responsibilities?

A) Diversity and discrimination
B) Safe working conditions
C) Education and training
D) Outsourcing practices
E) Employee benefit programs

Question 31

Top management at Lancer Distributing is convinced that they have a social responsibility to their community.They believe that they can have the greatest impact in this area through cash contributions to nonprofit organizations.This is an example of corporate:

A) guilt payments.
B) philanthropy.
C) structure and strategy.
D) short run profit maximization.

Question 32

Which of the following is NOT one of the "Financial Resource Management" responsibilities?

A) Resource procurement and consumption practices
B) Financial transparency
C) Investor relations
D) Ethical financial reporting practices

Question 33

Which of the following is not one of the approaches associated with corporate social responsibility?

A) Strategic partnering
B) Personal projects
C) Operational initiatives
D) Philanthropy
E) Altruistic

Question 34

Determining what is involved for a firm to be socially responsible:

A) is easy.
B) varies even among those who are interested in corporate responsibility.
C) helps government officials develop appropriate legislation.
D) varies from industry to industry.

Question 35

If a business fails in meeting its responsibilities to its employees,all of the following are likely to occur except:

A) reduced employee turnover.
B) disgruntled workers manipulating budgets and expenses.
C) a loss of employee commitment and trust in the company and its management.
D) employee retaliation by doing the minimum needed to get by.

Question 36

Which of the following is NOT one of the "Business System Design and Development" responsibilities?

A) Resource procurement and consumption practices
B) Packaging requirements
C) Research practices
D) Outsourcing practices
E) Consumer safety information

Question 37

Which of the following should help reduce the incidence of unethical behavior in an organization?

A) Understanding that individual moral standards, the influence of managers and coworkers, and opportunity influence ethical behavior
B) Maximizing ethical conflict in work groups
C) Expanding opportunity by providing punishments for violations of the rules
D) Overlooking violations of codes of ethics
E) All of the answers are correct

Question 38

Codes of ethics foster ethical behavior by

A) expanding the opportunity to behave ethically by providing rewards for following the rules.
B) limiting the opportunity to behave unethically by providing punishments for violations of the rules and standards.
C) limiting the opportunity to behave unethically by providing rewards for violations of the rules and standards.
D) expanding the opportunity to behave ethically by providing punishments for following the rules.
E) all of the answers are correct.

Question 39

All else held equal,socially responsible firms:

A) are viewed more favourably by consumers.
B) enjoy significantly higher profits.
C) often experience customer loyalty problems.
D) fail to earn sufficient profits for their owners.

Question 40

A business's responsibilities to its owners and investors include

A) protecting the owners' rights and investments.
B) maintaining proper accounting procedures.
C) providing all relevant information about current and projected performance of the firm.
D) maximizing their investment in the firm.
E) all of the answers are correct.

Question 41

Which of the following were not identified as being fundamental to the CSR definition?

A) Giving back to society
B) helping others
C) energy consumption
D) operating ethically, honestly and lawfully
E) being environmentally responsible

Question 42

As a manager you have a responsibility for the unethical behaviour of your employees.

Question 43

The majority of CEOs believe that employee misconduct results from a failure in organizational leadership in establishing ethical standards.

Question 44

The most basic ethical concerns have been formalized through laws and regulations that encourage conformity to society's values and norms.

Question 45

A growing number of people feel that an employee's ethics are a personal matter,and have nothing to do with management.

Question 46

Business ethics are the same as legal issues.

Question 47

Avoiding lawsuits is one reason to manage a firm ethically.

Question 48

When faced with slow sales and low profits,even managers with strong personal values may feel pressured to compromise those values.

Question 49

Ethics is based solely on legality.

Question 50

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.

Question 51

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code.

Question 52

Management can create an environment in which unethical behaviour can develop.

Question 53

Nearly all business decisions may be judged as right or wrong,ethical or unethical.

Question 54

Business ethics refers to principles and standards that define acceptable conduct in business organizations.

Question 55

The purpose of the Sarbanes-Oxley Act is to provide financial rewards for whistle-blowers.

Question 56

Written ethics codes influences employees more than management's tolerance or intolerance of ethical misconduct.

Question 57

Integrity-based ethics codes are based on avoiding legal punishment.

Question 58

Compliance-based ethics codes focus on preventing unlawful behaviour by increasing control and by penalizing wrongdoers.

Question 59

Designing an employee incentive program based on increasing sales can lead to unethical behaviour.

Question 60

Only corporations have to worry about ethics scandals and social responsibility issues

Question 61

A major social responsibility for business is providing equal opportunities for all employees.

Question 62

A charitable donation by a corporation is an example of corporate philanthropy.

Question 63

Enforcement is perhaps the most important step in an effective code of ethics.

Question 64

People who report illegal or unethical behaviour are known as whistleblowers.

Question 65

Codes of ethics foster ethical behavior because they expand the opportunity to behave unethically.

Question 66

Ethics and social responsibility mean the same thing.

Question 67

Managers consider social responsibility on an annual basis.

Question 68

Businesses recognize that pressure to violate ethical standards can come from either inside or outside of the firm.

Question 69

In order to be successful,efforts to improve the ethical behaviour of businesses must begin with top management's support of a corporate code of conduct.

Question 70

Corporate philanthropy refers to the position a firm takes on social and political issues.

Question 71

Corporate philanthropy refers to the position a firm takes on issues that affect society.

Question 72

A growing percentage of consumers are willing to spend the same,or more,on products or services whose organizations demonstrate the effective execution of CSR initiatives.

Question 73

Corporate social responsibility refers to the concern businesses have for their employees.

Question 74

Ethical behaviour will allow a firm to meet its corporate social responsibility.

Question 75

Establishing and enforcing ethical standards and policies within business can help reduce unethical behavior by prescribing which activities are acceptable and which are not and by removing the opportunity to act unethically.

Question 76

Without a code of ethics or formal policy on ethics,employees are likely to base their decisions on how their peers and superiors behave.

Question 77

The ability to leverage CSR initiatives as a key differentiator between two businesses.

Question 78

Businesses can avoid ethical dilemmas by requiring written contracts with their employees,customers,and owners.

Question 79

Codes of ethics are formalized rules and standards that describe what the company expects of its employees.

Question 80

Minority hiring practices and pollution control are both areas of corporate responsibility.