Question 1

Which of the following is an argument against social responsibility?

Accepted Answer

A)  Because business is a part of our society, it cannot ignore social issues. 
B)  Corporate time, money, and talent should only be used to maximize profits. 
C)  By helping resolve social issues, business can create a more stable environment. 
D)  Socially responsible decision making by firms can prevent increased government intervention.

Question 2

One guideline for making ethical decisions is to identify the ethical issues. Which of the following is involved in doing this?

Accepted Answer

A)  testing your decision against some established criteria 
B)  coming up with as many alternatives as possible before developing an analysis 
C)  examining how co-workers and consumers are affected by the situation or decision at hand 
D)  identifying the best option from your point of view

Question 3

Disney is looking to expand its sustainability efforts, particularly in the area of community outreach. Which of the following would be an appropriate action to fulfil this plan?

Accepted Answer

A)  Reuse cooking oil to power railroad trains that circle the properties. 
B)  Donate a portion of Earth Day ticket sales to local conservation efforts in Florida and California. 
C)  Wash buses and clean streets at parks and resorts with reclaimed water. 
D)  Use 100% recycled plastic merchandise bags at Disney park locations.

Question 4

The manager of a large retail chain recently spoke to a group of college students about being successful in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In so doing, he indicated that a shareholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in shareholders' interests. What concept do the manager's comments reveal?

Accepted Answer

A)  socioeconomic model of social responsibility 
B)  economic model of social responsibility 
C)  strictest model of social responsibility 
D)  consumerism

Question 5

Reader's Digest National Sweepstakes has a policy that no employees or their family members are eligible to win the big sweepstakes. Why was this policy likely implemented?

Accepted Answer

A)  to shrink the pool of possible winners, which increases each individual's odds of winning 
B)  to prevent employees from accepting gifts or bribes from other employees 
C)  to avoid an apparent conflict of interest 
D)  to satisfy the families of Reader's Digest employees

Question 6

How will this decision likely affect grocery customers in cities where stores are closing?

Accepted Answer

A)  more product choices 
B)  lower prices 
C)  higher profits 
D)  fewer product choices

Question 7

Arnold, a 90-year-old, was arrested after violating a city bylaw that restricted charities from feeding the homeless in public. Despite his arrest, Arnold returned a few days after his first arrest to feed the homeless hot meals. Which of the following is the factor affecting his ethical behaviour?

Accepted Answer

A)  individual 
B)  opportunity 
C)  demographic 
D)  legal

Question 8

Which of the following do customers expect from a firm's products?

Accepted Answer

A)  to boost sales 
B)  to be profitable 
C)  to be available anywhere 
D)  to be safe, reliable, and reasonably priced

Question 9

The Canadian Textile Industry Association exerts pressure on its members to comply with the ethical standards of the industry by providing information and benefits for textile companies. What does this exemplify?

Accepted Answer

A)  the government's role in encouraging ethics 
B)  a company's role in encouraging ethics 
C)  a trade association's role in encouraging ethics 
D)  a whistle-blower's role in encouraging ethics

Question 10

Disney is looking to expand its sustainability efforts, particularly in the area of facility and vehicle improvements. Which of the following would be an appropriate action to fulfil this plan?

Accepted Answer

A)  Reuse cooking oil to power railroad trains that circle the properties. 
B)  Use 100% recycled plastic merchandise bags at Disney park locations. 
C)  Donate a portion of Earth Day ticket sales to local conservation efforts in Florida and California. 
D)  Make Disney souvenir buttons from 30% recycled steel.

Question 11

Your company's monthly courier bill shows a fuel surcharge of $12. You have never seen this on your bill before, so you call the courier company to get more information. The customer service representative assures you that this is a one-time charge due to higher gas prices. When you receive the next courier bill, it shows another $12 surcharge for fuel. In this instance, what is your courier company NOT doing?

Accepted Answer

A)  acting in your best interest 
B)  competing fairly and honestly 
C)  being transparent 
D)  being socially responsible

Question 12

Which of the following factors affecting ethical behaviour includes one's moral values and central attitudes?

Accepted Answer

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

Question 13

Which of the following violates the ethical principle of avoiding conflicts of interest?

Accepted Answer

A)  Taking unfair advantage of a supplier in order to maximize profits. 
B)  Misrepresenting a competitor's product in order to win a new client. 
C)  Choosing a supplier because you are a shareholder in the supplier's company and stand to gain personally from the decision. 
D)  Hiding financial losses from investors in order to protect the price of the company's stock.

Question 14

An importer of coconut water is concerned about all of the energy required to essentially ship water from Asia to the Canadian market. What is the best sustainability strategy for addressing this particular issue?

Accepted Answer

A)  Redesign packaging so that coconut water is packed in reusable bottles. 
B)  Redesign packaging to utilize a smaller cap that uses less plastic. 
C)  Use wind power to run the bottling factory. 
D)  Condense coconut water into a powdered concentrate for shipping, then add water back at a Canadian bottling facility.

Question 15

MasterCard sends a customer a memo that discloses the true cost of borrowing with each billing statement. It does this in recognition of which of the following customer rights?

Accepted Answer

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

Question 16

The Canadian government tries to encourage ethical behaviour by legislating stricter regulations like Bill 198, also known as the "Canadian Sarbanes-Oxley" Act or C-SOX. This bill regulates internal controls on financial statements and disclosures. Which of the following must comply with Bill 198?

Accepted Answer

A)  private companies 
B)  public companies 
C)  individuals 
D)  charities

Question 17

A manager at GE wants to make facility improvements to lower energy consumption at its factories. Which of the following most likely achieves that goal?

Accepted Answer

A)  install solar panels on the roof of the factory 
B)  give employees the day off to participate in a volunteer park cleanup 
C)  redesign their line of consumer washing machines to use 30% less water 
D)  begin a recycling campaign at the factory

Question 18

Which of the following is an argument for increased social responsibilities?

Accepted Answer

A)  Because business is part of our society, it cannot ignore social issues. 
B)  Corporate time and money should be used to maximize profits. 
C)  Individual businesses should not be expected to solve society's problems. 
D)  Social issues are the responsibility of government officials.

Question 19

If J.W. Company planned to build a new factory on the land it owns, how would this impact the government of that town?

Accepted Answer

A)  increased pay 
B)  increased job opportunities 
C)  increased tax revenue 
D)  increased profits

Question 20

The manager of a successful local restaurant believes his responsibilities are to provide delicious meals and excellent service, provide jobs, comply with laws and the Canada Revenue Agency, and earn a respectable profit on the restaurant. These are the manager's only concerns. Which concept does this indicate?

Accepted Answer

A)  the economic model of social responsibility 
B)  the socioeconomic model of social responsibility 
C)  consumer protectionism 
D)  sustainability

Exam 2: Being Ethical and Socially Responsible