Question 1

Businesses have a social responsibility to create jobs.

Accepted Answer

A) True 
 B)False

Question 2

Ethical behavior requires more than following the law.

Accepted Answer

A) True 
 B)False

Question 3

Anna is a stockbroker for Bank of Bux. A client who works at Game Guys, Ltd., just called to purchase thousands of shares of Game Guys' company's stock. He reveals to her that the company is soon announcing the appointment of a new superstar CEO. Anna asks her client if this information is public knowledge. The reason she asks is to make certain that her client, her company, and she remain in compliance with Regulation FD, the fair disclosure rule.

Accepted Answer

A) True 
 B)False

Question 4

Henderson HVAC Pros is a heating and cooling company in Kansas City, Kansas. Henderson allows its employees paid time off to volunteer for nonprofit organizations. Which of the following statements best explains this company's action?

Accepted Answer

A)  Several smaller firms do not have enough work to keep employees busy. They fear that employees will quit and go to work elsewhere during a time of low unemployment. They protect their pool of skilled labor. 
B)  Employers are learning that millennial employees are physically stronger. They would rather permit them to work on nonprofit construction sites and other laborious projects, than build them a gym at the company site. 
C)  Companies find it less costly to permit employees to volunteer for food pantries and other nonprofit organizations in their area of operation, rather than make large philanthropic contributions. 
D)  Employee time is measured as going further for social causes than monetary contributions. 
A)  Several smaller firms do not have enough work to keep employees busy. They fear that employees will quit and go to work elsewhere during a time of low unemployment. They protect their pool of skilled labor. 
B)  Employers are learning that millennial employees are physically stronger. They would rather permit them to work on nonprofit construction sites and other laborious projects, than build them a gym at the company site. 
C)  Companies find it less costly to permit employees to volunteer for food pantries and other nonprofit organizations in their area of operation, rather than make large philanthropic contributions. 
D)  Employee time is measured as going further for social causes than monetary contributions.

Question 5

Ethical behavior at work is learned by

Accepted Answer

A)  attending corporate responsibility seminars. 
B)  tracking the failures of those who are caught in business scandals. 
C)  reading about why others were fired from the job. 
D)  observing the actions of others. 
A)  attending corporate responsibility seminars. 
B)  tracking the failures of those who are caught in business scandals. 
C)  reading about why others were fired from the job. 
D)  observing the actions of others.

Question 6

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Accepted Answer

Compliance-based ethics codes emphasize

Question 7

Tobacco companies label their products with warnings of the potential health hazards that could occur from smoking. Due to the fact that this is a government-mandated disclosure, it is part of the industry's compliance-based ethics.

Accepted Answer

A) True 
 B)False

Question 8

Management can create an environment in which unethical behavior can develop.

Accepted Answer

A) True 
 B)False

Question 9

A corporate policy should never make a value statement about the environment or other social and political issues, because it is doubtful the company can live up to the proclamation.

Accepted Answer

A) True 
 B)False

Question 10

As a manager, you have a responsibility for the unethical behavior of your employees.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is

Accepted Answer

A)  a job. 
B)  a commitment to programs that promote green living. 
C)  a high-end product line. 
D)  flexible work hours. 
A)  a job. 
B)  a commitment to programs that promote green living. 
C)  a high-end product line. 
D)  flexible work hours.

Question 15

The majority of CEOs blame unethical employee conduct on

Accepted Answer

A)  the breakdown of traditional religious institutions. 
B)  a failure of leadership to establish ethical standards. 
C)  the increase in lawsuits used to avoid personal responsibility. 
D)  the nation's business schools that tolerate unethical behavior in students. 
A)  the breakdown of traditional religious institutions. 
B)  a failure of leadership to establish ethical standards. 
C)  the increase in lawsuits used to avoid personal responsibility. 
D)  the nation's business schools that tolerate unethical behavior in students.

Question 16

Business relationships often present ethical dilemmas that are

Accepted Answer

A)  not easily resolved. 
B)  easily resolved by following the relevant laws. 
C)  best resolved by creating a win-lose situation. 
D)  irrelevant and therefore require no action. 
A)  not easily resolved. 
B)  easily resolved by following the relevant laws. 
C)  best resolved by creating a win-lose situation. 
D)  irrelevant and therefore require no action.

Question 17

A common form of cheating in schools today is plagiarizing online material.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

Applying the ethical standards of the U.S. to foreign firms is a difficult process for U.S. firms.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Businesses have a social responsibility to create jobs.

Ethical behavior requires more than following the law.

Henderson HVAC Pros is a heating and cooling company in Kansas City, Kansas. Henderson allows its employees paid time off to volunteer for nonprofit organizations. Which of the following statements best explains this company's action?

Ethical behavior at work is learned by

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Tobacco companies label their products with warnings of the potential health hazards that could occur from smoking. Due to the fact that this is a government-mandated disclosure, it is part of the industry's compliance-based ethics.

Management can create an environment in which unethical behavior can develop.

A corporate policy should never make a value statement about the environment or other social and political issues, because it is doubtful the company can live up to the proclamation.

As a manager, you have a responsibility for the unethical behavior of your employees.

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

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

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

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is

The majority of CEOs blame unethical employee conduct on

Business relationships often present ethical dilemmas that are

A common form of cheating in schools today is plagiarizing online material.

Applying the ethical standards of the U.S. to foreign firms is a difficult process for U.S. firms.

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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