Question 1

Major advances in consumerism have come through

Accepted Answer

A) federal legislation. 
B) state legislation. 
C) local legislation. 
D) business firms. 
E) trade organizations.

Question 2

Dinesh lives in Phoenix where he hears almost daily reports about the high levels of ozone along with suggestions on when individuals should purchase gasoline. As he views the hazy condition in the sky, he decides the government is basically ignoring environmental problems. Which statement best describes the government's involvement?

Accepted Answer

A) The government relies mostly on businesses to control various types of pollution and expects them to cover the costs. 
B) Although the government has established several environmental agencies, actual spending on reducing pollution is only about $100 million per year. 
C) The government is delegating most of the responsibility for a cleaner environment to individuals and nonprofit organizations. 
D) The government is encouraging technology that will eliminate pollution but not supporting this research financially. 
E) The government is spending several billions of dollars a year to reduce various types of pollution.

Question 3

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

Accepted Answer

The answer of Why are fairness and honesty in business...

Question 4

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

Accepted Answer

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 5

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

Accepted Answer

The answer of How can the government encourage ethical behavior?...

Question 6

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

Accepted Answer

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 7

​The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. This economic model is based on the notion that

Accepted Answer

A) ​social responsibility is someone else's job. 
B) ​social responsibility is a privilege and duty of every business. 
C) ​social responsibility is a burden but should nonetheless be undertaken. 
D) ​social responsibility brings great benefits to the business that undertakes to act on it.

Question 8

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

Accepted Answer

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

Question 9

Refer to Excellent Air Incorporated. 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

Accepted Answer

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

Question 10

Before the 1930s, the average work week prescribed by law was forty hours; however, workers were dissatisfied because there was no minimum wage.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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 14

XYZ Coffee
Nancy is a highly respected person within her community. She is Hispanic in a largely Caucasian-populated area. Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position. After the interview, Nancy felt confident that she would be hired because of her qualifications. However, she did not get a call back. Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend. The company had hired an inexperienced Caucasian male with a history of unemployment. At this point, Nancy was quite aggravated, but she left the issue alon
-Refer to XYZ Coffee. Before he got his job, another description for the employee who was hired over Nancy would be

Accepted Answer

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

Question 15

Business ethics rarely involves the application of moral standards to the business activity of a normal company.

Accepted Answer

A) True 
 B)False

Question 16

The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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 18

Within a firm, social responsibility begins with management's attitude.

Accepted Answer

A) True 
 B)False

Question 19

A credit card company is offering an annual percentage rate of 3.9 percent. However, the company fails to mention that this is an introductory rate, and when consumers receive their bills after six months the rate increases to 21.9 percent. The consumers feel their right to ____ has been abused.

Accepted Answer

A) be treated fairly 
B) be informed 
C) safety 
D) be heard 
E) service

Question 20

When Ford discovered the fault with its Pinto model that caused the car to explode easily when hit from the rear, what action should it have taken to preserve basic consumer rights?

Accepted Answer

A) Ford should have performed a cost benefit analysis to determine whether it would save more money by doing nothing or by rectifying the problem. 
B) Ford should have launched a campaign warning consumers of the defect so they would avoid getting in accidents. 
C) Ford should have warned consumers of the explosions, recalled all of the defective automobiles, and corrected the problem. 
D) Ford should have quietly ignored the problem and phased the Pinto out of its automobile lineup. 
E) Ford should have redesigned the automobile to make it safer for consumers in the future.

Exam 2: Being Ethical and Socially Responsible

Major advances in consumerism have come through

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

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

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

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

​The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. This economic model is based on the notion that

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

Refer to Excellent Air Incorporated. 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

Before the 1930s, the average work week prescribed by law was forty hours; however, workers were dissatisfied because there was no minimum wage.

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

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

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

Business ethics rarely involves the application of moral standards to the business activity of a normal company.

The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.

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

Within a firm, social responsibility begins with management's attitude.

A credit card company is offering an annual percentage rate of 3.9 percent. However, the company fails to mention that this is an introductory rate, and when consumers receive their bills after six months the rate increases to 21.9 percent. The consumers feel their right to ____ has been abused.

When Ford discovered the fault with its Pinto model that caused the car to explode easily when hit from the rear, what action should it have taken to preserve basic consumer rights?

The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. This economic model is based on the notion that