Deck 2: Business Ethics and Social Responsibility

Question 1

Toxic waste must be destroyed or processed into harmless material.

Answer 1

False

Question 2

Hiring a relative rather than a more qualified applicant is both illegal and unethical.

Answer 2

False

Question 3

Air, water, and land pollution are the three greatest environmental problems facing businesses.

Answer 3

True

Question 4

Most people believe that a company's social responsibility to employees goes beyond compliance with employment laws, such as equal employment opportunity and family leave.

Question 5

Because of better customer service, large banks have outperformed smaller banks in recent years.

Question 6

According to the Intergovernmental Panel on Climate Change, greenhouse emissions are expected to decrease in the 21st century.

Question 7

Much of the damage to forests and streams in the eastern United States and Canada has been attributed to acid rain originating in sulfur from manufacturing and power plants in the Midwestern United States.

Question 8

The consumer rights presented by President John F. Kennedy have been modified many times in order to keep up with changes in laws and regulations related to consumerism.

Question 9

Which of the following issues led to Enron's demise?

A) price gouging
B) misleading investors
C) insider trading
D) collusion

Question 10

During the first few years of his administration, some of the harshest criticism toward President Bush was directed at his _____ policies.

A) economic
B) environmental
C) foreign
D) technological

Question 11

Social responsibility toward customers generally falls into two categories. What are they?

A) providing product safety; pricing products fairly
B) providing courteous service; pricing products fairly
C) providing quality products; providing courteous service
D) providing quality products; pricing products fairly

Question 12

Which problems are less likely to be costly to fix?

A) customer problems
B) environmental problems
C) technological problems
D) none of the above

Question 13

On what are apparel manufacturers required to provide full disclosure?

A) type of fabric used
B) type of dye used
C) place of manufacture
D) size of the garment

Question 14

A company that has established websites to provide product information is most likely attempting to give consumers _____.

A) a right to be heard
B) a right to be informed
C) a right to choose which products to buy
D) a right to safe products

Question 15

Social responsibility toward employees includes _____.

A) recruiting fairly
B) hiring fairly
C) promoting fairly
D) all of the above

Question 16

Financial mismanagement is _____.

A) unethical and illegal
B) ethical and legal
C) unethical but not necessarily illegal
D) illegal but not necessarily unethical

Question 17

Ethical issues confronting big-businesses _____.

A) are very different from those facing small businesses
B) are very similar to those facing small businesses
C) usually require more complex decision making than those issues facing small businesses.
D) A and C

Question 18

_____ is the practice of responding to increased demand with overly steep prices.

A) Price gouging
B) Price lining
C) Price fixing
D) Collusion

Question 19

An act of an ethical commitment in the Tylenol case was exhibited by which of the following companies?

A) United Technologies
B) Seagate Technologies
C) Johnson & Johnson
D) Merck Pharmaceuticals

Question 20

Which of the following is NOT true regarding the stakeholder model of responsibility?

A) Most companies concentrate on customers as one of their priorities.
B) Most companies concentrate on communities as one of their priorities.
C) The stakeholder model does not apply to international business.
D) The stakeholder model applies to international business.

Question 21

Energy supplies that are roughly equal to the annual energy consumption of the New York Metropolitan area and used by the Intergovernmental Panel on Climate Change for carbon dioxide levels are measured in _____.

A) kilowatts
B) megabytes
C) exajoules
D) pounds per square inch

Question 22

The criteria for estimating changes in the atmosphere developed by the Intergovernmental Panel on Climate change consists of which of the following?

A) population
B) economic growth
C) energy supplies
D) all of the above

Question 23

Carbon monoxide emitted by automobiles contributes to _____.

A) land pollution
B) air pollution
C) noise pollution
D) water pollution

Question 24

Which of the following occurs when sulfur is pumped into the atmosphere, mixes with natural moisture, and falls to the ground?

A) toxic waste
B) acid rain
C) water pollution
D) dew

Question 25

Water becomes polluted primarily through _____.

A) chemical and waste dumping
B) animal use
C) rainfall
D) none of the above

Question 26

As a rule, toxic waste must be _____.

A) eaten
B) burned
C) diluted
D) stored

Question 27

Into which two areas does social responsibility toward customers generally fall?

A) service and price
B) safety and service
C) service and quality
D) quality and price

Question 28

A key to business success is to decide in advance how to respond to the issues that underlie all questions of ethics and _____.

A) personnel complaints
B) compensatory damages
C) governmental support
D) social responsibility

Question 29

Companies such as L.L. Bean, Land's End, and Johnson & Johnson have reputations for demonstrating a high level of social responsibility to _____.

A) the investors
B) local communities
C) their employees
D) their customers

Question 30

Companies such as The Container Store, Starbucks, Microsoft, FedEx, and American Express have reputations for demonstrating a high level of social responsibility to _____.

A) the investors
B) local communities
C) their employees
D) their customers

Question 31

General economic prosperity in the 1980s and 1990s led people to view business as _____.

A) a negative social force
B) being able to police itself through the free market
C) a hotbed for corporate scandals
D) the main cause for moral outrage

Question 32

Under the Intergovernmental Panel on Climate Change's "worst-case" scenario for world-wide climate changes, we would find a(n) _____.

A) decrease in the number of hurricanes
B) increase in the number of droughts
C) decrease in severe winter weather
D) decrease in energy supplies

Question 33

Which of the following types of wastes can be separated and used as fuels in industrial boilers?

A) phosphates
B) acid rain
C) combustible
D) chloride

Question 34

The air around which city is generally considered to be the most polluted in the entire world?

A) Chicago, Illinois
B) Arlington, Virginia
C) Mexico City, Mexico
D) Tokyo, Japan

Question 35

Laws forbidding dumping of _____ have resulted in water in New York and Florida becoming safe for fishing and swimming.

A) silver
B) phosphates
C) carbon
D) chloride

Question 36

Much of the damage to forests and streams in the eastern United States and Canada has been attributed to acid rain originating in sulfur from manufacturing and power plants in _____.

A) Canada
B) the Midwestern United States
C) Mexico
D) Europe

Question 37

The Justice Department recently charged three international pharmaceutical firms with _____ for illegally controlling worldwide prices of vitamins.

A) consumerism
B) price lining
C) price fixing
D) price gouging

Question 38

Define consumerism.

Question 39

What factors may serve as the basis for social responsibility toward employees?

Question 40

Why are employers concerned about what messages travel through employee e-mail?

Question 41

What is an encrypted e-mail message?

Question 42

How does the product from Tumbleweed Communications benefit managers in corporations?

Question 43

In this scenario, to what does "the electronic equivalent of paper shredding" refer?

Question 44

In what way do American businesses use "incentives" to get things done?

Question 45

What does jeitinho mean?

Question 46

What does jeitinho involve?

Question 47

Why might it be difficult for an American business to conduct business in a country in which bribes, and jeitinho, are acceptable?