Question 1

In Canada, consumer issues related to the purchase of goods and services are covered by which jurisdiction?

Accepted Answer

A)   federal
B)   provincial
C)   municipal
D)   international B

Question 2

What are two ways that companies demonstrate responsible employment practices?

Accepted Answer

A)   profitability and equality
B)   whistle-blowing and occupational safety
C)   equality and occupational safety
D)   equality and whistle-blowing C

Question 3

Blake Mycoskie was inspired to begin TOMS Shoes after witnessing the hardships that children in Argentina face growing up without shoes. According to the TOMS website, Mycoskie's idea was to create a for-profit business that was sustainable and not reliant on donations. Since 2006, TOMS has extended its efforts to donate to people in need by donating eyeglasses and clean water in addition to shoes. TOMS operates under which of the following concepts?

Accepted Answer

A)   transparency and social responsibility
B)   the socioeconomic model of social responsibility
C)   the economic model of social responsibility
D)   ethical decision making D

Question 4

Ford is testing the use of robots that assist in ergonomically difficult tasks. Workers on the production line often have to use heavy air-powered tools to complete their tasks, but the new robots can assist their human counterparts with these jobs. Ford's efforts show their concern for employees regarding which of the following?

Accepted Answer

A)   ethical decision making
B)   innovative techniques
C)   use of technology
D)   occupational safety

Question 5

How will this decision likely affect customers of the company?

Accepted Answer

A)   increased product choices
B)   increased job opportunities
C)   increased tax revenue
D)   increased profits

Question 6

A company seeking to address occupational safety in the workplace might initiate which of the following best practices?

Accepted Answer

A)   create objective performance appraisal systems
B)   provide ergonomic workstations for employees
C)   ensure equal pay between office and factory workers
D)   conduct safety training once every other year

Question 7

How will this decision likely affect the local community in cities where stores are closing?

Accepted Answer

A)   higher unemployment
B)   lower prices
C)   higher profits
D)   increased pay

Question 8

How will this decision likely affect investors in the company?

Accepted Answer

A)   higher unemployment
B)   decreased tax revenue
C)   improved profits
D)   increased pay

Question 9

Steve has a problem with a coffee maker he purchased recently. He has been trying for days to speak with the company by calling its 800-number, but it rings forever or sends him through a maze of automated recordings. Steve feels that which of his basic consumer rights is being violated?

Accepted Answer

A)   the right to safety
B)   the right to be informed
C)   the right to be heard
D)   the right to choose

Question 10

The motion picture industry uses a rating system to describe the content of its movies. Movies are accompanied by ratings such as PG (parental guidance suggested) or R (not suitable for those under 17). This rating system satisfies which of the following consumer rights?

Accepted Answer

A)   the right to be heard
B)   the right to safety
C)   the right to be informed
D)   the right to refunds

Question 11

The statement "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health" supports which of the following consumer rights?

Accepted Answer

A)   the right to safety and to be informed
B)   the right to be heard and to be informed
C)   the right to work and to be informed
D)   the right to safety and to be heard

Question 12

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 behaviour is Victoria's Secret seeking to control?

Accepted Answer

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

Question 13

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

Accepted Answer

A)   organizational norms, circumstances, morals
B)   peer pressure, attitudes, social factors
C)   opportunity, individual factors, social factors
D)   financial factors, opportunity, morals

Question 14

If top executives at Volkswagen were aware of the "defeat device" that software engineers installed on 11 million vehicles, they failed to promote ethical behaviour in which way?

Accepted Answer

A)   protecting whistle-blowers
B)   adopting a code of ethics
C)   leadership making a commitment
D)   abiding by trade association guidelines

Question 15

A bottled water manufacturer created a thinner bottle that uses 35% less plastic. What type of sustainability practice does this represent?

Accepted Answer

A)   workplace safety improvements
B)   community outreach
C)   product design improvements
D)   ethics improvements

Question 16

What are the three primary components of business ethics?

Accepted Answer

A)   avoiding conflict of interest, competing fairly and honestly, and being transparent
B)   avoiding conflict of interest, avoiding bribes, and being transparent
C)   competing fairly and honestly, being transparent, and social auditing
D)   competing fairly and honestly, investor relations, and being transparent

Question 17

The economic model of social responsibility places primary emphasis on which of the following?

Accepted Answer

A)   active government involvement
B)   conservation of natural resources
C)   economic return
D)   the balance of economic return and social return

Question 18

Loblaws, a supermarket chain, introduced a system to help shoppers make healthier food choices. Guiding Stars is a food rating system that rates foods based on nutrient density using a scientific algorithm to assign a 0, 1, 2, or 3 star rating (3 stars is the highest rating a product can receive). With the introduction of Guiding Stars, Loblaws is recognizing which of the following consumer rights?

Accepted Answer

A)   the right to safety
B)   the right to be heard
C)   the right to be informed
D)   the right to choose

Question 19

If a clothing manufacturer intentionally hid the fact that it uses hazardous chemicals in the production process, it would be violating which of the three primary components of business ethics?

Accepted Answer

A)   being transparent
B)   avoiding conflicts of interest
C)   insider trading
D)   sustainability

Question 20

The opportunity to be unethical will be reduced if a company deals with violations of its ethical codes in which of the following ways?

Accepted Answer

A)   leisurely and lightly
B)   firmly and consistently
C)   on a case-by-case basis
D)   for only lower-level employees

Exam 2: Being Ethical and Socially Responsible