Question 1

Corporate philanthropy refers to the position a firm takes on social and political issues.

Accepted Answer

A) True 
 B)False

Question 2

Ethical problems and issues of social responsibility are

Accepted Answer

A)  unique to firms involved in global trade. 
B)  unique to the United States. 
C)  not unique to the United States. 
D)  less important now than in the past. 
A)  unique to firms involved in global trade. 
B)  unique to the United States. 
C)  not unique to the United States. 
D)  less important now than in the past.

Question 3

If management adopts Ryan's suggestion of reducing Frozen Fun Ice Cream's charitable donations until profits grow, the company will essentially reduce its

Accepted Answer

A)  corporate citizenship. 
B)  nonprofit volunteerism. 
C)  corporate philanthropy. 
D)  RF factor. 
A)  corporate citizenship. 
B)  nonprofit volunteerism. 
C)  corporate philanthropy. 
D)  RF factor.

Question 4

Tobacco companies initially refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is

Accepted Answer

A)  the intended approach. 
B)  the desired approach. 
C)  not the desired approach. 
D)  not really a concern. 
A)  the intended approach. 
B)  the desired approach. 
C)  not the desired approach. 
D)  not really a concern.

Question 5

Behavior that is in conflict with your values and sense of right and wrong can damage your self-esteem.

Accepted Answer

A) True 
 B)False

Question 6

One responsibility of business is to satisfy customers by offering them goods and services with real value.

Accepted Answer

A) True 
 B)False

Question 7

When Delish Donuts uses in-store recycling and composting, and cleans with nontoxic detergents, Delish Donuts is participating in corporate

Accepted Answer

A)  philanthropy. 
B)  social initiatives. 
C)  responsibility. 
D)  policy. 
A)  philanthropy. 
B)  social initiatives. 
C)  responsibility. 
D)  policy.

Question 8

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?

Accepted Answer

A)  Can I do this without getting caught? 
B)  Is it balanced? 
C)  Has it been done before? 
D)  Is there a desirable alternative? 
A)  Can I do this without getting caught? 
B)  Is it balanced? 
C)  Has it been done before? 
D)  Is there a desirable alternative?

Question 9

Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with one socially irresponsible activity.

Accepted Answer

A) True 
 B)False

Question 10

Identify and discuss the five types of groups that serve as watchdogs. Also discuss how well companies enforce their ethical and social responsibility policies.

Accepted Answer

1. Socially conscious investors who insi

Question 11

While "doing the right thing" is an admirable code of ethics, there are no international organizations dealing with global ethics and corruption.

Accepted Answer

A) True 
 B)False

Question 12

As a result of pressure from business lobbyists, Congress failed to pass legislation protecting whistleblowers.

Accepted Answer

A) True 
 B)False

Question 13

What is the benefit of employing an ethics officer?

Accepted Answer

A)  This professional serves as a law-enforcement officer, with the authority to arrest employees who do not abide by the ethics code. 
B)  This individual writes the ethics code and keeps this document current. He has sole authority to change the document as he sees fit. 
C)  This professional has the responsibility to make certain that the ethics code remains a private company document; however, since the position has very little authority, it becomes a token job with high turnover. 
D)  This individual's job is dedicated to objectively investigating ethics breaches. If necessary, employees feel comfortable with communicating confidentially to this professional. 
A)  This professional serves as a law-enforcement officer, with the authority to arrest employees who do not abide by the ethics code. 
B)  This individual writes the ethics code and keeps this document current. He has sole authority to change the document as he sees fit. 
C)  This professional has the responsibility to make certain that the ethics code remains a private company document; however, since the position has very little authority, it becomes a token job with high turnover. 
D)  This individual's job is dedicated to objectively investigating ethics breaches. If necessary, employees feel comfortable with communicating confidentially to this professional.

Question 14

The Enron scandal illustrates the difference between unethical behavior and illegal behavior.

Accepted Answer

A) True 
 B)False

Question 15

Ethical behavior covers a ________ range of conduct than legal behavior.

Accepted Answer

A)  broader 
B)  more limited 
C)  smaller 
D)  less demanding 
A)  broader 
B)  more limited 
C)  smaller 
D)  less demanding

Question 16

An important step in improving U.S. business ethics is for companies to hire whistleblowers.

Accepted Answer

A) True 
 B)False

Question 17

Chip's CPUs, a computer chip manufacturer, knowingly sold flawed chips and decided not to tell its customers of the possible problems. When it became public knowledge, however, the firm's stock price fell dramatically. This demonstrates the value that investors place on the ethical behavior of businesses.

Accepted Answer

A) True 
 B)False

Question 18

Many businesses have developed internal procedures to enforce their ethical policies. Which of the following is an example of an outside group urging ethical behavior in businesses?

Accepted Answer

A)  Management teams 
B)  Union officials 
C)  Suppliers 
D)  Foreign trade representatives 
A)  Management teams 
B)  Union officials 
C)  Suppliers 
D)  Foreign trade representatives

Question 19

After spending several months developing a good relationship with a business client, Rob's client is now purchasing substantial amounts of products from Rob's company, resulting in high commissions for him. After checking the sales records for the past six months, a colleague of Rob's started visiting the same client in the hopes of capturing some of that client's business too. Although he considers it "legal and fair game," sales reps in his firm have begun to avoid him because they consider it a violation of

Accepted Answer

A)  company-based ethics. 
B)  compliance-based ethics. 
C)  integrity-based ethics. 
D)  whistleblowing-based ethics. 
A)  company-based ethics. 
B)  compliance-based ethics. 
C)  integrity-based ethics. 
D)  whistleblowing-based ethics.

Question 20

Overly ambitious business goals and employee incentives can lead to unethical behavior.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Corporate philanthropy refers to the position a firm takes on social and political issues.

Ethical problems and issues of social responsibility are

If management adopts Ryan's suggestion of reducing Frozen Fun Ice Cream's charitable donations until profits grow, the company will essentially reduce its

Tobacco companies initially refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is

Behavior that is in conflict with your values and sense of right and wrong can damage your self-esteem.

One responsibility of business is to satisfy customers by offering them goods and services with real value.

When Delish Donuts uses in-store recycling and composting, and cleans with nontoxic detergents, Delish Donuts is participating in corporate

Which of the following questions will help individuals and organizations when deciding if their decisions are ethical?

Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with one socially irresponsible activity.

Identify and discuss the five types of groups that serve as watchdogs. Also discuss how well companies enforce their ethical and social responsibility policies.

While "doing the right thing" is an admirable code of ethics, there are no international organizations dealing with global ethics and corruption.

As a result of pressure from business lobbyists, Congress failed to pass legislation protecting whistleblowers.

What is the benefit of employing an ethics officer?

The Enron scandal illustrates the difference between unethical behavior and illegal behavior.

Ethical behavior covers a ________ range of conduct than legal behavior.

An important step in improving U.S. business ethics is for companies to hire whistleblowers.

Many businesses have developed internal procedures to enforce their ethical policies. Which of the following is an example of an outside group urging ethical behavior in businesses?

Overly ambitious business goals and employee incentives can lead to unethical behavior.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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