Question 1

Some critics of corporate social responsibility view spending money on CSR as

Accepted Answer

A)  a necessary evil. 
B)  stealing from investors. 
C)  important for America. 
D)  moving toward capitalism. 
A)  a necessary evil. 
B)  stealing from investors. 
C)  important for America. 
D)  moving toward capitalism.

Question 2

Which of the following indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers?

Accepted Answer

A)  The establishment of the Equal Opportunity Employment Commission 
B)  The decision of Walmart to open stores worldwide 
C)  The decision of Nike to cancel orders from suppliers that violate its ethics code 
D)  The creation of the North American Free Trade Zone (NAFT
A)  between the U.S., Canada, and Mexico 
A)  The establishment of the Equal Opportunity Employment Commission 
B)  The decision of Walmart to open stores worldwide 
C)  The decision of Nike to cancel orders from suppliers that violate its ethics code 
D)  The creation of the North American Free Trade Zone (NAFT
A)  between the U.S., Canada, and Mexico

Question 3

Ethical behavior refers to the standards that are accepted by society as true or false.

Accepted Answer

A) True 
 B)False

Question 4

After years of customer feedback, Bank of Bux is finally going paperless. The bank's communications team promoted the strategy both internally and externally. Customers were strongly encouraged to utilize the bank's website and mobile system for all their banking needs. Customers unfamiliar or uncomfortable with online banking could sign up for workshops where employees show them how to navigate both the bank's new website and mobile app. The bank's initiative demonstrates

Accepted Answer

A)  a gimmick for cutting costs that watchdogs will soon uncover. 
B)  an effort to not be left in the lurches by its competitors who are using state-of-the-art website technology. 
C)  an area where the firm can contribute to the green effort, as well as cut costs. 
D)  a costly effort because at least 50% of all customers still prefer a paper trail due to safety concerns such as identity theft, when it comes to online banking. 
A)  a gimmick for cutting costs that watchdogs will soon uncover. 
B)  an effort to not be left in the lurches by its competitors who are using state-of-the-art website technology. 
C)  an area where the firm can contribute to the green effort, as well as cut costs. 
D)  a costly effort because at least 50% of all customers still prefer a paper trail due to safety concerns such as identity theft, when it comes to online banking.

Question 5

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.

Accepted Answer

A) True 
 B)False

Question 6

Making accounting records more transparent may help restore trust in the free-market system and leaders in general.

Accepted Answer

A) True 
 B)False

Question 7

Compliance-based ethics codes focus on preventing unlawful behavior by increasing control and by penalizing wrongdoers.

Accepted Answer

A) True 
 B)False

Question 8

America's business ethics can improve simply by requiring written contracts with employees, customers, and owners. This alone will do the job!

Accepted Answer

A) True 
 B)False

Question 9

When Blake Mycoskie started TOMS, he took the concept of ________ to a new level. With its well-known "one for one" shoe giving program, TOMS social causes are directly related to the firm's expertise of selling shoes.

Accepted Answer

A)  social auditing 
B)  corporate social initiative 
C)  corporate policy 
D)  corporate philanthropy 
A)  social auditing 
B)  corporate social initiative 
C)  corporate policy 
D)  corporate philanthropy

Question 10

A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

Accepted Answer

A)  legal 
B)  corporate responsibility 
C)  compliance 
D)  integrity 
A)  legal 
B)  corporate responsibility 
C)  compliance 
D)  integrity

Question 11

When it comes to social responsibility, some people feel that "before you can do good, you must do well." This reflects a firm's primary responsibility to its

Accepted Answer

A)  customers. 
B)  investors. 
C)  employees. 
D)  community. 
A)  customers. 
B)  investors. 
C)  employees. 
D)  community.

Question 12

In order to be successful, efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate code of conduct.

Accepted Answer

A) True 
 B)False

Question 13

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

Accepted Answer

A) True 
 B)False

Question 14

When Kira graduated with a degree in computer science, she started her software company. On her first day of operations, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated

Accepted Answer

A)  her commitment to high ethical standards of behavior. 
B)  her commitment to respect the law. 
C)  her expectation that all employees follow the laws that apply to the business. 
D)  her aversion to cheating, stealing, and dishonesty. 
A)  her commitment to high ethical standards of behavior. 
B)  her commitment to respect the law. 
C)  her expectation that all employees follow the laws that apply to the business. 
D)  her aversion to cheating, stealing, and dishonesty.

Question 15

Identify the six-step approach to achieve a long-term improvement of business ethics.

Accepted Answer

1. Top management must adopt and uncondi

Question 16

An ethical manager's decisions are based only on the following questions: "Is it legal?" and "Is it profitable?"

Accepted Answer

A) True 
 B)False

Question 17

In the Reaching Beyond Our Borders box, the story demonstrates the many ethical similarities between North and South American businesses. This is fortunate for large firms that do business south of the U.S. border. They can depend on their subsidiary firms to have no problems when implementing U.S. company employee policies.

Accepted Answer

A) True 
 B)False

Question 18

Business behavior determines the ethics of society. We can improve society's moral and ethical behavior by first making a commitment to improving business's moral and ethical behavior.

Accepted Answer

A) True 
 B)False

Question 19

One problem with conducting a social audit is

Accepted Answer

A)  that most businesses are really not very concerned with these issues. 
B)  how to determine what should be measured and how to calculate the effect on society. 
C)  that the primary focus of management is on the interests of stakeholders. 
D)  governmental "red-tape." 
A)  that most businesses are really not very concerned with these issues. 
B)  how to determine what should be measured and how to calculate the effect on society. 
C)  that the primary focus of management is on the interests of stakeholders. 
D)  governmental "red-tape."

Question 20

Enforcement is perhaps the most important step in an effective code of ethics.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Some critics of corporate social responsibility view spending money on CSR as

Which of the following indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers?

Ethical behavior refers to the standards that are accepted by society as true or false.

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.

Making accounting records more transparent may help restore trust in the free-market system and leaders in general.

Compliance-based ethics codes focus on preventing unlawful behavior by increasing control and by penalizing wrongdoers.

America's business ethics can improve simply by requiring written contracts with employees, customers, and owners. This alone will do the job!

When Blake Mycoskie started TOMS, he took the concept of ________ to a new level. With its well-known "one for one" shoe giving program, TOMS social causes are directly related to the firm's expertise of selling shoes.

A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

When it comes to social responsibility, some people feel that "before you can do good, you must do well." This reflects a firm's primary responsibility to its

In order to be successful, efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate code of conduct.

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

When Kira graduated with a degree in computer science, she started her software company. On her first day of operations, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated

Identify the six-step approach to achieve a long-term improvement of business ethics.

An ethical manager's decisions are based only on the following questions: "Is it legal?" and "Is it profitable?"

Business behavior determines the ethics of society. We can improve society's moral and ethical behavior by first making a commitment to improving business's moral and ethical behavior.

One problem with conducting a social audit is

Enforcement is perhaps the most important step in an effective code of ethics.

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

Filters