Exam 2: Business Ethics and Social Responsibility

The CEO of Beautymax Products is horrified by the negative publicity and wants immediate crisis management performed by the public relations department. The public relations department provides a list of strategic options for the CEO to deal with the bad publicity. Which of the following statements, if True, would NOT be a strategic option for the CEO?

A whistle-blower is an outsider who reports publicly on the wrongdoings of companies.

Which of the following would NOT be included among the primary agents of interest with regard to a company's ethical behavior?

Describe the three-step model for applying ethical judgments.

The ethical norm of utility evaluates whether an act respects the rights of all parties.

Which of the following, if True, most clearly makes Beatty's action professionally unsupportable?

Save-a-Bunch Hardware has tripled its prices for plywood and other building supplies after a tornado strikes the area. What business practice is Save-a-Bunch Hardware demonstrating?

A university has filed a formal complaint against a local hospital for failing to be socially responsible in its treatment of university students completing internships there. Which of the following would most likely be a valid response by a hospital that was NOT guilty of this charge?

Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?

Define consumerism.

Acme Inc. meets its legal and ethical requirements. In addition, Acme donates $50,000 per year to local charities when asked. Which of the following approaches is being taken by Acme toward social responsibility?

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

Which of the following statements is most likely to be included in a company's code of ethics?

The proactive approach to social responsibility argues that profits should not be spent on social programs.

Dara's Dress Shop was honored last year for its strong commitment to corporate social responsibility. Which of the following would MOST likely decrease the shop's chances of being recognized again this year?

How might this situation have been different in the event that MKD had initially adopted a proactive stance to social responsibility?

A company that does not act responsibly toward its customers may lose their trust and ultimately their business.

Describe the stakeholder model of social responsibility.

Which of the following, if True, might strengthen the ethical case for giving a larger bonus for Tracy?

In an attempt to act socially responsibly toward investors, on what might MKD focus?