Exam 4: Demanding Ethical and Socially Responsible Behavior

Insider trading provides the information needed for the securities markets to operate fairly and efficiently.

Christina owns a boutique and is ordering jewelry made using semi-precious stones from a supplier in Mexico. Due to low wages in Mexico, her supplier promised an excellent wholesale price for these goods. You agree with Christina when she explains to you that international business law is very clear-cut with these dealings. As long as the supplier is not breaking any labor laws in his country, her social responsibility is covered.

Enrico is a CPA for a large company. Recently, he noticed that the company's accounting records significantly overstated the amount of inventory on hand. This led to an overstatement of the assets the company holds. Initially, he brought it to the attention of his supervisor, but when nothing was done to correct the mistake in a timely manner, he decided the best course of action was to report it to the appropriate government official. Although his actions took him outside the company, Enrico was counting on current law, under the ________, to protect him against company retaliation.

Gary and his college friends often spend weekends hanging out at a small pub. Last weekend, after a few beers, one of his friends took the salt and pepper shakers from the table because they needed a set at their apartment. In this situation, this was not an unethical action because it was a restaurant and potential loss is figured into the prices.

International issues of social responsibility and ethical behavior are

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

After developing a code of ethics, it should be communicated to

American clothing manufacturer Simple Suits was sued in New York courts by watchdog groups that discovered the poor working conditions in manufacturing plants in a U.S. territory. Customers are typically concerned with human rights abuses and other problems with supplier relationships at home and abroad.

An important source of public scrutiny is watchdogs. These are

The boxed material entitled Reaching Beyond Our Borders that told the story about Joe, the telecommunication employee, suggests that U.S. firms operating overseas are

Trying to make decisions that will benefit all parties involved is consistent with the question "How will it make me feel about myself?"

When police set up sobriety checkpoints, they aim to lessen drunk driving and save lives. While not required, the makers of apps that help users navigate around the checkpoints have complied with the public request of several legislators and have obediently stopped operating. After studying about ethics and social responsibility, which of the following statements applies to this situation?

Micah often takes longer lunch breaks than allowed. Melissa chooses to use her work computer to check out her personal Twitter account instead of using up her phone's data. Louis misrepresents his product to a potential customer. All of these are examples of unethical behavior.

Ethical dilemmas in business

The first step when facing an ethical dilemma is to ask

Environmental quality is considered to be a public good. This means that

In the Reaching Beyond Our Borders box, the story proves that a large multinational company can ask its employees to follow, and should expect them to follow, the same ethical standards they would practice if living and working within the U.S. borders.