Exam 4: Demanding Ethical and Socially Responsible Behavior

If a business fails to meet its responsibilities to its employees, which of the following is likely to occur?

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

Colin is a recent hire at Bender's Book Stop. On his first day in his new job, his store manager handed him a small booklet consisting of company rules. He was asked to read it and sign and submit the last page, before starting his work. Among other things, the rules explicitly discussed punishments for grievous behavior and firing if the firm could prove that the employee was stealing product from the store. This booklet represented the ________ of the store.

In recent years, progressive firms have embarked upon ________, where they will commit company resources and expertise toward helping out in emergency type situations.

It's merger mania in the banking industry. Shortly after Bank of Bux bid on The Abundance Bank, a story hit the local news about the investigation into the purchase of several thousand shares of stock of the Abundance Bank by three of its top executives, just prior to the announcement that Bank of Bux planned to buy Abundance Bank. Upon close examination by the SEC (Securities and Exchange Commission) it was determined that the stock purchases were an illegal maneuver on the part of these executives. This is an example of insider trading. The executives were "banking" on the stock price rising sharply when the purchase announcement was made public.

Watchdogs (including customers, socially conscious investors, and environmentalists) monitor how well firms enforce their ethical and social responsibility policies.

When managers disregard the company's ethical concerns, the likely result is

Ethical behavior will result in which of the following?

The management staff at Doc's Motorcycles believes the company has a social responsibility to its community. They believe that the company can have the greatest impact in this area through cash contributions to local nonprofit organizations. This is an example of

Establishing a formal code of ethics is

The difference between an organization's positive social contributions and its negative social impacts is called their

While "doing the right thing" is an admirable code of ethics, there are no international organizations dealing with global ethics and corruption.

Going green means

It can be very difficult to maintain a balance between ethics and goals such as pleasing stakeholders.

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

Making ethical choices is always easy.

Tobacco companies initially refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is

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

Which of the following questions can help us avoid a decision that would injure our self-esteem?

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code.