Deck 2: Acting Ethically and Socially Responsible

Question 1

Ethan Wong, a student who works at his college bookstore, is often unsupervised and, therefore, has the opportunity to steal merchandise. He needs an expensive anatomy textbook but doesn't even consider taking it without paying for it. This is an example of an individual's behavior being influenced by ________, or ethics.

A) principles of right and wrong
B) an understanding of consequences
C) respect for the law
D) a fear of negative feedback

Answer 1

principles of right and wrong

Question 2

Maggie Cohen is a law student who is desperate to get a passing grade on a final exam. But she refuses to cheat, even though she can reasonably do so without being caught. When another student asks her why she doesn't cheat, she just shrugs and says, "I wasn't raised that way." She is demonstrating a deeply held attitude know as a(n)

A) ethic.
B) safeguard.
C) value.
D) prejudice.

Answer 2

value.

Question 3

The termvalue refers to a deeply held underlying belief or attitude that helps determine people's

A) behavior.
B) income.
C) ambitions.
D) prejudices.

Answer 3

behavior.

Question 4

A U.S. manufacturer makes low-quality furniture that breaks easily. This is an example of something that is ________ but ________.

A) ethical; illegal
B) legal; ethical
C) legal; unethical
D) illegal; ethical

Question 5

Russell Brady, a white male in his early thirties, recently applied for a position at Pinnacle, Inc. He demonstrated that he was qualified to do the job, but he was not hired. He recently learned that Pinnacle was intentionally favoring women and minorities for the position, and he is upset. Should he sue Pinnacle?

A) Yes, because it is both illegal and unethical to favor one group over another when hiring.
B) Yes, because favoring one group over another when hiring is ethical but illegal.
C) No, because even though Pinnacle's actions are unethical, they are legal.
D) No, because diversity policies such as affirmative action are both legal and ethical.

Question 6

A poster in the employee break room at Draper Advertising Agency lists several instructions, including "Be honest," and "Always act in the best interest of the customer." This is an example of

A) advertising slogans.
B) a list of deliverables.
C) micromanaging.
D) a code of ethics.

Question 7

A code of ethics is a written set of standards intended to ________ a company's actions.

A) report
B) discourage
C) guide
D) enrich

Question 8

Jessica Villareal is a manager at Visibility Media. During an interview with Chloe Schwartz, a candidate for the new marketing position, Villareal catches Schwartz in a lie about a fact unrelated to the job. Villareal needs to fill the position quickly, but she also knows that Visibility Media should continually strive to uphold high ethical standards. What is Villareal'sbest course of action?

A) She should ask Schwartz to come in for a second interview.
B) She should inform Schwartz of the company ethics code.
C) She should not hire Schwartz.
D) She should check Schwartz's references.

Question 9

Organizing a ________ is one way for managers to support high ethical standards.

A) trade union
B) hiring freeze
C) company retreat
D) training program in ethics

Question 10

A(n) ________ is an employee who integrates the organization's ethics and values initiatives, compliance activities, and business conduct practices into the company's decision-making processes.

A) ethics officer
B) executive officer
C) compliance officer
D) integral officer

Question 11

"Are we operating our company according to our stated values of honesty and compassion for the community?" is a question that Windfall Company's ________ is likely to ask.

A) communications officer
B) ethics officer
C) business manager
D) values enforcer

Question 12

One way to make sure that employees understand a company's expectations and guidance for how to act ethically and responsibly is to establish a

A) code of ethics.
B) nondisclosure agreement.
C) corporate responsibility pyramid.
D) set of laws and regulations.

Question 13

Justin Kihana is a hiring manager for Connect, a new social media platform. Connect's customer information is highly confidential, and the company does not share this information with competitors or the general public. Kihana routinely asks new employees to sign nondisclosure agreements. Kihana's action demonstrates that Connect

A) has a culture of cutting corners.
B) uses methods that intimidate employees.
C) has a compliance-based ethics code.
D) does not foster an ethical environment.

Question 14

Fran Nolan is a manager tasked with writing a company ethics code for Creative Spark, a design firm. She doesn't want to intimidate or turn off her free-spirited employees with a list of rules and punishments. She also wants her employees to be personally accountable for their actions, rather than blindly follow impersonal rules. She knows she has two choices, a compliance-based ethics code or an integrity-based ethics code. Which type of ethics code should she choose and why?

A) an integrity-based ethics code because it promotes ethical behaviors and values
B) a compliance-based ethics code because it will ensure that Creative Spark's company secrets are protected
C) a compliance-based ethics code because it intimidates employees with the threat of legal action
D) an integrity-based ethics code because it encourages shared accountability among employees

Question 15

An integrity-based ethics code supports responsible employee behavior by emphasizing shared

A) profits among stakeholders.
B) accountability among employees.
C) news about corporate social responsibility on social media.
D) blame and punishment when ethics are violated.

Question 16

Jim Tanaka is a new nurse who has repeatedly witnessed Ellen Jones, the head nurse on his floor, failing to wash her hands, improperly disposing of used needles, and otherwise violating the hospital's rules for safety. After much thought and worry, he decides that he is obligated to come forward and report this organizational misconduct to the hospital administration. What will happen if Jim comes forward as a whistleblower?

A) Jim must gather a large group of supportive patients if he wants to keep his job.
B) Jim's job will only be protected if he has a supportive hospital board of directors.
C) Jim's job will be protected by the Sarbanes-Oxley Act.
D) Because of the extreme nursing shortage, Jim's job will be protected.

Question 17

What is one way the Sarbanes-Oxley Act protects employees who report organizational misconduct?

A) It ensures they are paid a large sum of money as a reward.
B) It provides for job reinstatement to whistleblowers who are fired by their employers.
C) It ensures the employees' complaints are nationally publicized on social media.
D) It appoints such employees as the ethics officers of their companies.

Question 18

Ajay Ramanathan has discovered that his manager has been embezzling funds from the company. Determined to speak up, Ramanathan is about to become a whistleblower, an employee who reports misconduct. Which person at his company would be thebest person for him to confide in?

A) the chief financial officer
B) his manager
C) the ethics officer
D) a direct subordinate

Question 19

The job of the ________ is to integrate the organization's ethics and values initiatives, compliance activities, and business practices into the company's decision-making processes.

A) stakeholder
B) ethics officer
C) whistleblower
D) values manager

Question 20

The ________ is a guide for thinking about the day-to-day practical and moral matters that businesses encounter.

A) corporate social responsibility pyramid
B) company profit and loss statement
C) annual report
D) employee handbook

Question 21

The global social responsibility pyramid consists of good global corporate citizenship, ethical behavior, obeying the law, and being

A) creative.
B) profitable.
C) charitable.
D) marketable.

Question 22

The base layer of the global social responsibility pyramid indicates that a company has a duty to be

A) profitable.
B) ethical.
C) legal.
D) powerful.

Question 23

Emma Steele, an ambitious new employee at Zoom Group, is tempted to avoid paying taxes by bribing customers with cash payments, an act that is both illegal and unethical. When a coworker warns her this behavior is unacceptable, Steele counters with, "I'm interested in making a profit, and so are our stakeholders. What's wrong with a little bribe here and there if it saves us money?" How does the corporate social responsibility pyramid apply to this situation?

A) Investors demand that businesses show a profit and don't care if employees violate laws.
B) Zoom Group does not apply any of the principles of the global social responsibility pyramid.
C) A company's first duty is to make a profit, but companies also have a legal responsibility to obey laws.
D) Making a profit is not part of the pyramid, but obeying the laws of host countries as well as international law is.

Question 24

Legal responsibility, or obeying the laws of host countries as well as international law, is a key element of

A) the corporate social responsibility pyramid.
B) a company's profitability.
C) the Sarbanes-Oxley Act.
D) a company's mission statement.

Question 25

Corporate social responsibility is a concern for

A) ensuring that the company earns maximum profits in a given year.
B) taking actions that will benefit society as well as the organization.
C) avoiding costly lawsuits by discouraging workers from suing.
D) making sure that individual employees follow company rules.

Question 26

When a corporation is ________, it contributes to society and can improve people's lives.

A) popular
B) socially responsible
C) legal
D) focused solely on profits

Question 27

Which situation is an example of corporate social responsibility?

A) An office manager occasionally permits employees to work remotely.
B) A car dealership gives customers free bottles of water.
C) A retailer offers a three-day sale on key items.
D) A company sends supplies to hurricane victims.

Question 28

Because businesses create certain problems (such as environmental pollution), they should also help solve those problems. This statement is an argument in favor of

A) corporate social responsibility.
B) environmental activism.
C) establishing a code of ethics.
D) affirmative action.

Question 29

Alvarez Construction Company was hired by the county to build a meeting hall at Greenleaf Park. During its work, the company left trash all over the construction site, displaced birds and other wildlife, and created noise that disturbed park visitors. To make up for the problems they caused at the park, the company organized a companywide clean-up week and left the park more attractive and sustainable than ever. This is an example of the attitude that because businesses create some problems, they should

A) charge customers more for solving them.
B) help to solve the problems they create.
C) deny responsibility for those problems.
D) educate society as to why those problems occur.

Question 30

An argument against corporate social responsibility is that if a firm is distracted from ________, society will suffer.

A) supporting charities
B) maximizing profits
C) outperforming competitors
D) professional development

Question 31

Carmen Bautista works at Gourmet Burger, a restaurant chain. She wants to accept an invitation Gourmet Burger has received to sponsor a local girls' soccer team. But her manager Carl Krikorian is against the idea, saying, "The best way Gourmet Burger can support the local community is to create more jobs by selling more burgers." Krikorian's opinion is an example of an argument against

A) ethics codes.
B) profit sharing.
C) social responsibility.
D) whistle blowing.

Question 32

Julie Yuen has clearly defined goals for ensuring that her new meal delivery service, Magic Chef, is socially responsible. One goal is to donate a percentage of her profits to local charities. How can Yuen ensure that Magic Chef is implementing its socially responsible goals?

A) conduct a social audit to assess performance
B) ask employees to keep her goals in mind
C) post a list of goals in the employee break room
D) include a note with each delivery stating her goals

Question 33

Abigail Airitam is the ethics officer for Puppy Love, a manufacturer of dog treats. The company has the charitable goals of donating food and supplies to a local homeless shelter, as well as volunteering to bring homeless dogs to shelters to interact with the residents. Airitam is looking into how well Puppy Love is meeting these target goals, a process known as a

A) charitable survey.
B) corporate policy.
C) values screening.
D) social audit.

Question 34

One of the key goals of a social audit is evaluating whether a company

A) supports charities.
B) maximizes profits.
C) files taxes.
D) pays competitive wages.

Question 35

A key area of a social audit known as ________ involves evaluating whether a company's economic development meets present needs without endangering the ability of future generations to meet their own needs.

A) social entrepreneurship
B) sustainability
C) philanthropy
D) cause-related marketing

Question 36

Shaun Johnson is a top manager at a construction firm that has been tasked with laying a pipeline through a large section of the state. In some ways the project will help the local community. But in other ways, such as harming the environment, it will hurt the local community. Johnson is concerned about the project's ________, or whether a company's economic development meets present needs without endangering the ability of future generations to meet their own needs.

A) utility
B) practicality
C) sustainability
D) stability

Question 37

A skateboard manufacturer plans to support skateboarding competitions in low-income neighborhoods. This is an example of a goal that would be included in the company's

A) code of ethics.
B) professional development.
C) social audit.
D) mission statement.

Question 38

A big company that helps small nonprofit firms working to make a difference in antipoverty, literacy, and the environment by providing them with small loans is an example of

A) community activity.
B) cause-related marketing.
C) financial auditing.
D) social entrepreneurship.

Question 39

Teresa Padilla is a manager for a small software start-up company, Provantix. To keep up employee morale while the company struggles to grow, she decides to start a new activity of encouraging each employee to contribute a small amount of money to a pool. When employees have a personal financial need, they can borrow money from the pool. These micro loans are an example of social entrepreneurship. Another example of social entrepreneurship is when a company

A) encourages its employees to volunteer to teach English to English language learners.
B) shows up at a public event and conducting a customer relations survey.
C) tries an unconventional marketing method, like street theater that is an advertisement.
D) sponsors professional development classes for its employees so they can learn to start their own firms.

Question 40

Social ________ is an innovative, social value-creating activity that can occur within or across the for-profit and nonprofit sectors.

A) entrepreneurship
B) networking
C) ethics sharing
D) event planning

Question 41

A positive result of a company's social audit could be a decision to engage in

A) cause-related marketing.
B) employee recruitment.
C) unethical business decisions.
D) tax avoidance.

Question 42

A nonprofit organization that helps the local victims of a hurricane is involved in

A) a philanthropic effort.
B) compliance-based ethics.
C) a social audit.
D) social marketing.

Question 43

A company can measure its level of ________ by evaluating whether a given company activity creates social value through innovation.

A) ethics
B) community engagement
C) social entrepreneurship
D) sustainability

Question 44

Evaluating a company's ________, or its stated positions on political and social issues, is only a starting point toward measuring its social responsibility.

A) social media profile
B) annual report
C) mission statement
D) corporate policy

Question 45

In the long run, a company's unethical or unlawful behavior will have the effect of

A) lowering its stock price.
B) attracting quality employees.
C) generating goodwill.
D) benefiting the local community.

Question 46

________ can hurt a company's profitability.

A) Giving employees time off to volunteer in the community
B) Lawsuits resulting from illegal behavior
C) Donating money, goods, and services
D) Reducing calories and fat to make a food product healthier

Question 47

Not only customers and the community but also owners, employees, and suppliers benefit from

A) aggressive social media marketing.
B) price slashing and deep discounts.
C) ethical behavior and social responsibility.
D) turning a blind eye to ethics violations.

Question 48

Thomas Park is interviewing for a job with Hyper Group. Kristin Ortega, the hiring manager, explains that Hyper Group insists on ethical behavior and corporate social responsibility. "Our commitment to ethics and CSR benefits our customers and our community," she tells Park. Park is interested in the job in part because he realizes that, if he is hired, Hyper Group's commitment is also likely to

A) benefit him.
B) support growth.
C) protect him from legal action.
D) serve to crush competition.

Question 49

A form of ________ that can hurt a company is embezzlement schemes.

A) sustainability
B) profitability
C) philanthropy
D) fraud

Question 50

Strivant Industries is a struggling company whose profits are dropping. Manager Jill Trainor is looking at the numbers on the annual report she is preparing to send out to investors. She takes a red pencil and strikes through several numbers, replacing them with figures that make Strivant seem more profitable than it really is. What impact might this action have on Strivant Industries?

A) It will require the firm to complete a social audit.
B) It will likely result in a diminished reputation and profit for the firm.
C) It will eventually lead to an actual increase in profits.
D) It will improve the firm's economic responsibility.

Question 51

A place where workers labor long hours for low wages, usually under environmentally, physically, or mentally abusive conditions, is known as a

A) candy shop.
B) sweatshop.
C) gold mine.
D) salt mine.

Question 52

"It takes ten years to build up your company's reputation, but only ten seconds for you to lose it." This comment from investor Warren Buffett applies to the way ________ can hurt a company.

A) insufficient promotion
B) the distractions of social responsibility
C) illegal or unethical behavior
D) choosing the wrong publicist

Question 53

"It takes ten years to build up your company's reputation, but only ten seconds for you to lose it." Investor Warren Buffett's comment applies to the way illegal and unethical behavior can

A) attract investors.
B) expedite growth.
C) increase profits.
D) hurt a company.

Question 54

John Grantham, a sales manager at Construction Outlet, is good at what he does, so good that he frequently gets job offers from competing companies. He's flattered, but he turns them down because he is proud of his company's commitment to building affordable green homes and planting trees. Grantham's loyalty to Construction Outlet is a direct example of

A) how unethical behavior can hurt a company.
B) the positive effects of a company's being good.
C) how a firm's good behavior benefits suppliers.
D) how ethical behavior results in high job turnover.

Question 55

A major reason employees stay at their companies is

A) their organization's concern for ethics.
B) their organization's location.
C) the medical benefits are good.
D) values and ethics are not mandatory.

Question 56

In general, a company's ________ is enhanced by its reputation for honesty and corporate citizenship.

A) risk
B) longevity
C) tax liability
D) profitability

Question 57

The Global Compact is a voluntary agreement established in 2000 by ________ that promotes human rights, good labor practices, environmental protection, and anticorruption standards for businesses.

A) the United Nations
B) the World Trade Organization
C) NATO
D) the United States

Question 58

An example of the _____ can be seen when the American Red Cross provides disaster relief across the world to countries in need.

A) Sarbanes-Oxley Act
B) UN Global Compact
C) corporate social responsibility pyramid
D) code of ethics

Question 59

A business that adheres to the principles of the UN Global compact, would uphold the ________ of all forms of forced labor.

A) fair compensation
B) sustainability
C) preservation
D) elimination

Question 60

Jayden Taylor is a top manager at Bronze Effects, a manufacturer of skin and hair care products for African Americans. Taylor wants to find a way to make his company more socially responsible about the environment. He is considering providing employees up to two months' paid leave with full benefits so that they can volunteer with a nonprofit organization that supports solutions to global warming. What would be thebest advice for Taylor?

A) Go ahead with the plan because employees are more loyal to companies they perceive as ethical.
B) Go ahead with the plan because it will get rid of all the employees not motivated to work hard.
C) Don't go ahead with the plan because the employees who participate will not return after two months.
D) Don't go ahead with the plan because customers might not believe in supporting solutions to global warming.

Question 61

Julian takes used office supplies from his employer and donates them to underprivileged schools and youth groups in his community. This action can bebest described as

A) legal and ethical.
B) illegal, but ethical.
C) legal, but unethical.
D) illegal, but practical.
E) legal and socially responsible.

Question 62

MachineWerks Manufacturing wants to encourage responsible conduct for its employees. What wouldmost likely help MachineWerks to meet this goal?

A) training on the compliance-based ethics code
B) sharing the principal provisions of Sarbanes-Oxley
C) building a social responsibility pyramid
D) creating an integrity-based ethics code
E) conducting a social audit

Question 63

King Filtration disposed of its obsolete water filters in the past, even if they were unused. After hiring an ethics officer, she suggested an innovative approach-donate the filters to communities with contaminated water. Which of the social audit areas does this examplebest represent?

A) philanthropy
B) cause marketing
C) corporate policy
D) sustainability
E) social entrepreneurship

Question 64

CertPro Logistics was recently in the news after being fined for failing to honor an important government contract. What ismost likely to happen?

A) The company may be sued by members of the Global Compact.
B) The company will be fined under the Sarbanes-Oxley guidelines.
C) Instances of embezzlement may increase.
D) The company's reputation may be diminished.
E) The IRS will require the company to conduct a social audit.

Question 65

ESCO Manufacturing hired an ethics officer last year. Her first goal was to research the two types of ethical codes and summarize them to the senior leadership team. She has also been asked to explain what ESCO could expect to accomplish by implementing both codes. Help the ethics officer by describing the key functions of both types of ethical codes. What do you think the organization can accomplish by implementing both codes?

Question 66

Describe the argument behind the belief that corporate social responsibility and profit are contradictory goals. Similarly, describe the argument behind the belief that corporate social responsibility must be pursued concurrently. Which of the arguments is the ideal approach and why?

Question 67

608 Entertainment wants to evaluate its social performance and hires a consultant to help. Assist the consultant by describing at least three areas that should be considered during their evaluation of 608 Entertainment.

Question 68

Provide examples of unethical and illegal behavior and describe their negative effect on a business.

Question 69

The ethics officer at Homeshield Security is meeting with the board and has been asked to provide examples of groups that will benefit from ethical business practices within the company. Provide at least three examples he can use for his meeting.

Question 70

Theterm value refers to a temporary feeling that helps determine people's behavior.

Question 71

An example of a business situation in the United States that is both illegal and unethical is canceling a company retirement plan.

Question 72

A company diversity policy is legal but unethical.

Question 73

To foster high ethical standards, managers should conduct formal training programs in ethics.

Question 74

A clerk deciding to steal office supplies because managers are using the company jet for personal vacation travel is an example of the importance of a company having managers who support a strong ethical climate.

Question 75

A compliance-based ethics code attempts to foster responsible employee conduct by creating an environment that supports ethically desirable behavior.

Question 76

A values-based ethics code attempts to prevent criminal misconduct by increasing control and by punishing violators.

Question 77

In 2002, the Code of Ethics established protections for whistleblowers, recordkeeping requirements for public companies, and penalties for noncompliance.

Question 78

A concern for taking actions that will benefit society as well as the organization is known as corporate strategy.

Question 79

When a corporation is socially responsible, it can improve people's lives.

Question 80

A well-known argument against corporate social responsibility is that society will suffer if a company is distracted from its mission of maximizing profits.