Question 1

Many U.S. companies are demanding socially responsible behavior from their international suppliers.

Accepted Answer

A) True 
 B)False

Question 2

The Irish Plastering Corporation recently instituted a corporate ethics code. The president of the company, Seamus McHale, realized that ethical relationships are based on

Accepted Answer

A)  fairness and honesty. 
B)  strict penalties for illegal activities. 
C)  a full-time compliance officer monitoring employee behavior. 
D)  watchdogs and whistleblowers. 
A)  fairness and honesty. 
B)  strict penalties for illegal activities. 
C)  a full-time compliance officer monitoring employee behavior. 
D)  watchdogs and whistleblowers.

Question 3

Some experts feel that corporate social responsibility means solely making money for stockholders.

Accepted Answer

A) True 
 B)False

Question 4

Employees observe behavior and adopt standards of right and wrong.

Accepted Answer

A) True 
 B)False

Question 5

An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

Accepted Answer

A) True 
 B)False

Question 6

Legal behavior is directly related to our relationships with others, while ethical behavior is not.

Accepted Answer

A) True 
 B)False

Question 7

Compliance-based ethics codes typically

Accepted Answer

A)  rely on laws and regulations outside the firm for guidance. 
B)  have a strong affinity for shared accountability among employees. 
C)  promote a "do-it-right" climate. 
D)  enable responsible employee conduct. 
A)  rely on laws and regulations outside the firm for guidance. 
B)  have a strong affinity for shared accountability among employees. 
C)  promote a "do-it-right" climate. 
D)  enable responsible employee conduct.

Question 8

Although the green movement is a social trend, it is difficult to predict its future contributions to society.

Accepted Answer

A) True 
 B)False

Question 9

Businesses are under more and more pressure from society to be socially responsible. However, even the strongest advocates for corporate responsibility can't seem to agree

Accepted Answer

A)  on what social responsibility involves. 
B)  who should be policing businesses' behavior. 
C)  if all businesses, large and small, should be held to the same standards. 
D)  if politicians should be held to the same standards of behavior. 
A)  on what social responsibility involves. 
B)  who should be policing businesses' behavior. 
C)  if all businesses, large and small, should be held to the same standards. 
D)  if politicians should be held to the same standards of behavior.

Question 10

Dewey Cheatsum urges his employees to find and use legal loopholes to gain a competitive advantage whenever they can. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.

Accepted Answer

A) True 
 B)False

Question 11

One factor causing businesses to vigorously enforce ethical standards is the

Accepted Answer

A)  desire to eliminate employee turnover. 
B)  fear of negative publicity. 
C)  focus on criminal penalties. 
D)  evasion of social audit measurements. 
A)  desire to eliminate employee turnover. 
B)  fear of negative publicity. 
C)  focus on criminal penalties. 
D)  evasion of social audit measurements.

Question 12

Many Americans define ethical behavior according to the situation in which they find themselves. This way of thinking suggests that there may be situations where ________ to cheat, steal, or lie.

Accepted Answer

A)  it is absolutely wrong 
B)  it might be okay 
C)  business people are expected 
D)  capitalism forces people 
A)  it is absolutely wrong 
B)  it might be okay 
C)  business people are expected 
D)  capitalism forces people

Question 13

Enrollment at Bayside College keeps going up, despite tuition and fee hikes to help cover the cost of new wind turbines installed on campus. These turbines generate enough power to serve the campus buildings and to sell to local business establishments. After reading about corporate social responsibility, you conclude

Accepted Answer

A)  new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs. 
B)  although it is a trendy social cause, this effort is not showing good long-term social responsibility toward the students who will end up with sizeable future debt. 
C)  this is a demonstration of corporate philanthropy. 
D)  students are willing to pay the extra tuition in the short term because they believe that the means (the use of innovative technology) will justify the end (a better environment). 
A)  new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs. 
B)  although it is a trendy social cause, this effort is not showing good long-term social responsibility toward the students who will end up with sizeable future debt. 
C)  this is a demonstration of corporate philanthropy. 
D)  students are willing to pay the extra tuition in the short term because they believe that the means (the use of innovative technology) will justify the end (a better environment).

Question 14

U.S. businesses consider the Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Accepted Answer

A) True 
 B)False

Question 15

Corporate social responsibility refers to the concern businesses have for the welfare of society.

Accepted Answer

A) True 
 B)False

Question 16

Top leaders in government and business today are

Accepted Answer

A)  held to higher ethical standards than in the past. 
B)  held to less strict moral standards than in the past. 
C)  less interested in social responsibility than in the past. 
D)  at odds with the general public in regard to ethical issues. 
A)  held to higher ethical standards than in the past. 
B)  held to less strict moral standards than in the past. 
C)  less interested in social responsibility than in the past. 
D)  at odds with the general public in regard to ethical issues.

Question 17

Compliance-based ethics codes are based on preventing unlawful behavior.

Accepted Answer

A) True 
 B)False

Question 18

Ethical behavior focuses on treating others fairly.

Accepted Answer

A) True 
 B)False

Question 19

Fresh Coats Paint Co. promotes its products as nontoxic and made from natural, organic substances. The paints are safe for all persons, including those with asthma and other lung conditions. If consumers learn that Fresh Coats' paints do not meet their expectations, their reaction is likely to tarnish the company's image.

Accepted Answer

A) True 
 B)False

Question 20

People should look at each situation individually and decide for themselves if it is right or wrong.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Many U.S. companies are demanding socially responsible behavior from their international suppliers.

The Irish Plastering Corporation recently instituted a corporate ethics code. The president of the company, Seamus McHale, realized that ethical relationships are based on

Some experts feel that corporate social responsibility means solely making money for stockholders.

Employees observe behavior and adopt standards of right and wrong.

An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

Legal behavior is directly related to our relationships with others, while ethical behavior is not.

Compliance-based ethics codes typically

Although the green movement is a social trend, it is difficult to predict its future contributions to society.

Businesses are under more and more pressure from society to be socially responsible. However, even the strongest advocates for corporate responsibility can't seem to agree

Dewey Cheatsum urges his employees to find and use legal loopholes to gain a competitive advantage whenever they can. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.

One factor causing businesses to vigorously enforce ethical standards is the

Many Americans define ethical behavior according to the situation in which they find themselves. This way of thinking suggests that there may be situations where ________ to cheat, steal, or lie.

U.S. businesses consider the Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

Corporate social responsibility refers to the concern businesses have for the welfare of society.

Top leaders in government and business today are

Compliance-based ethics codes are based on preventing unlawful behavior.

Ethical behavior focuses on treating others fairly.

People should look at each situation individually and decide for themselves if it is right or wrong.

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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