Exam 2: Business Ethics and Social Responsibility

A(n)________ occurs when an activity may benefit the individual to the detriment of his or her employer.

Joe paid John less than he deserved because he knew John needed the job badly.Joe's behavior may be considered ________.

The single most effective step a company can take to encourage ethical behavior is upper-management support.

How could Omniva's software promote social responsibility?

A conflict of interest occurs when an activity may benefit the individual to the detriment of his or her employer.

Ethics are based on individual beliefs and social concepts and vary from ________.

Describe the three-step model for applying ethical judgments.

The Sarbanes-Oxley Act of 2002 requires that ________.

An employee of an organization can be considered an organizational stakeholder.

A(n)________ stance to social responsibility occurs when a company meets only the minimum legal requirements in its commitments to groups and individuals in its social environment.

In the United States,tobacco companies are legally required to include warnings to smokers on their products and to limit advertising to prescribed media.Within the U.S.,they follow these rules but use more aggressive methods in countries with no such rules.As such,tobacco companies typically adopt a(n)________ stance to social responsibility in marketing their products.

What is insider trading? How does it benefit the investor?

The most effective step that a company can take to promote ethical behavior is to ________.

Insider trading occurs when someone uses confidential information to gain from the purchase or sale of stocks.

Short Case Scenario 2-1 MKD Transportation owns and operates a fleet of container ships and tankers that transport goods around the globe. Company executives have just been contacted by the media with a credible report that one of their ships is leaking an oily substance off the coast of Belize. If true, some of the world's most beautiful coral reefs could be in danger. On the other hand, the captain of the ship in question has not notified the company of any problem, and cleanup could be very costly. Environmental groups and the government of Belize have demanded that the company admit responsibility and immediately begin cleanup. -What might the general public begin to think about MKD's responsibilities toward the environment?

Which of the following is NOT necessary to assess ethical behavior?

Bob Crawford sold shares in XYZ Company after finding out from XYZ's CEO that XYZ's stock was about to drop in price.Bob engaged in ________.

Companies adopting an accommodative stance to social responsibility do as little as possible to solve social or environmental problems and may deny or cover up violations.

Sam's Meat Market raised prices considerably during peak tourist seasons,knowing that consumers would be willing to pay higher prices for premium meats.This is an example of ________.

Short Case Scenario 2-1 MKD Transportation owns and operates a fleet of container ships and tankers that transport goods around the globe. Company executives have just been contacted by the media with a credible report that one of their ships is leaking an oily substance off the coast of Belize. If true, some of the world's most beautiful coral reefs could be in danger. On the other hand, the captain of the ship in question has not notified the company of any problem, and cleanup could be very costly. Environmental groups and the government of Belize have demanded that the company admit responsibility and immediately begin cleanup. -If the general public were to follow the three-step model for applying ethical judgments to situations,what would the public do?