Question 1

The first step when facing an ethical dilemma is to ask

Accepted Answer

A)  "Is it legal?" 
B)  "Is it balanced?" 
C)  "How will it make me feel about myself?" 
D)  "Is it ethical?" 
A)  "Is it legal?" 
B)  "Is it balanced?" 
C)  "How will it make me feel about myself?" 
D)  "Is it ethical?"

Question 2

Business issues such as treating employees fairly and ethically are part of corporate responsibility.

Accepted Answer

A) True 
 B)False

Question 3

Legal behavior and ethical behavior are basically the same.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

The danger in writing new laws to correct behavior is that

Accepted Answer

A)  people may begin to think that any behavior that is legal is ethically acceptable. 
B)  people will see the difference between ethics and legality. 
C)  legal behavior will reflect the totality of people's relations with one another. 
D)  there will not be enough jails to house those who break the law. 
A)  people may begin to think that any behavior that is legal is ethically acceptable. 
B)  people will see the difference between ethics and legality. 
C)  legal behavior will reflect the totality of people's relations with one another. 
D)  there will not be enough jails to house those who break the law.

Question 7

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 8

Determining what is involved for a firm to be socially responsible

Accepted Answer

A)  is easy. 
B)  varies even among those who are interested in corporate responsibility. 
C)  helps government officials develop appropriate legislation. 
D)  varies from industry to industry due to different laws. 
A)  is easy. 
B)  varies even among those who are interested in corporate responsibility. 
C)  helps government officials develop appropriate legislation. 
D)  varies from industry to industry due to different laws.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Considering the potential impact on others prior to making a decision is consistent with ________ behavior.

Accepted Answer

A)  legal 
B)  anti-social 
C)  ethical 
D)  self-motivated 
A)  legal 
B)  anti-social 
C)  ethical 
D)  self-motivated

Question 11

The green movement has turned the heads of very few firms.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

Due to the fact that American ethical standards are very clear-cut, international suppliers do not have difficulty adhering to them.

Accepted Answer

A) True 
 B)False

Question 16

Corporate values are

Accepted Answer

A)  a personal matter to be determined by each employee. 
B)  taught by attending company-sponsored seminars. 
C)  instilled by the leadership of outside consultants. 
D)  learned by observing the actions of others in the organization. 
A)  a personal matter to be determined by each employee. 
B)  taught by attending company-sponsored seminars. 
C)  instilled by the leadership of outside consultants. 
D)  learned by observing the actions of others in the organization.

Question 17

Mini-Case
Megan, Erin, and Ryan are in the middle of a heated discussion. The trio are the chief operating officers of the Frozen Fun Ice Cream Corporation and are reviewing the latest financial reports. Intense competition has resulted in deceased profits. Each of the three officers has his or her own view of how to help the company turn around.
Megan suggests cutting costs by firing union workers and hiring replacement employees at lower wages. She has asked the firm's attorney to find a loophole in the contract that will allow for this action. Erin protests, stating that Megan's proposal is unethical and unfair. Erin believes that every stakeholder should be treated equally, and that profiting at the expense of others is reckless.
Ryan, agreeing in part with Erin, states, "We must be sensitive to all affected parties, but clearly our primary goal is to make a profit for our investors." In an attempt to resolve the conflict between Megan and Erin, Ryan offers an alternative suggestion: reduce the firm's charitable contributions until acceptable profit levels rise. Erin is outraged and reminds Ryan of the social responsibilities that Frozen Fun Ice Cream has to the community, environment, suppliers, employees, and investors.
-Erin recommends a marketing strategy aimed at increasing sales through the development of a positive corporate image. She suggests the first step toward this goal is to identify and evaluate the firm's programs for community involvement. Erin is calling for a ________ to be completed.

Accepted Answer

A)  strategic plan 
B)  social audit 
C)  socialist review 
D)  corporate contribution index 
A)  strategic plan 
B)  social audit 
C)  socialist review 
D)  corporate contribution index

Question 18

Employees at GloboTech, a start-up software company, noticed that the owner overlooked certain questionable actions of high billing associates. Other employees, who worked hard but only brought in an average number of new clients each month, were highly scrutinized. After you read this chapter about the ethical behavior of many Americans, which of the following statements applies here?

Accepted Answer

A)  This story indicates that moral absolutes are very prevalent today in business settings. 
B)  The owner will continue to operate this way until someone blows the whistle. 
C)  We cannot expect people in the U.S. to all follow similar ethical patterns because there are too many cultures to deal with. Businesses are no different. 
D)  As is often the case today, some leaders will look at each situation individually when making value judgments. 
A)  This story indicates that moral absolutes are very prevalent today in business settings. 
B)  The owner will continue to operate this way until someone blows the whistle. 
C)  We cannot expect people in the U.S. to all follow similar ethical patterns because there are too many cultures to deal with. Businesses are no different. 
D)  As is often the case today, some leaders will look at each situation individually when making value judgments.

Question 19

People who report illegal or unethical behavior are called whistleblowers.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 4: Demanding Ethical and Socially Responsible Behavior

The first step when facing an ethical dilemma is to ask

Business issues such as treating employees fairly and ethically are part of corporate responsibility.

Legal behavior and ethical behavior are basically the same.

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

Compliance-based ethics codes typically

The danger in writing new laws to correct behavior is that

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

Determining what is involved for a firm to be socially responsible

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

Considering the potential impact on others prior to making a decision is consistent with ________ behavior.

The green movement has turned the heads of very few firms.

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

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

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

Due to the fact that American ethical standards are very clear-cut, international suppliers do not have difficulty adhering to them.

Corporate values are

People who report illegal or unethical behavior are called whistleblowers.

Top leaders in government and business today are

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

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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