Exam 2: B: Being Ethical and Socially Responsible

Customers can't find out which firms are acting responsibly and which are not.

President Franklin D. Roosevelt declared that consumers are entitled to safety, to be informed, to choose, and to be heard.

The director of a company's social responsibility program should be a consumer advocate who can express the social issues facing the firm to the organization's management.

A social responsibility program may be funded by the federal government through tax reductions or other incentives.

Businesspeople face ethical issues every day, and some of these issues can be difficult to assess.

Businesses' record of social responsibility today is much better than in past decades.

The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.

One major reason for improving product safety is the consumer's demand for safe products.

During the 1980s, very few organizations created and implemented ethics codes.

Fairness and honesty in business are two important ethical concerns.

Consumer advocates, such as Ralph Nader, take it upon themselves to protect the rights of consumers.

Awareness of businesses' social responsibilities has increased along with government involvement.

A successful program for training hard-core unemployed people is the National Alliance of Business.

The socioeconomic model of social responsibility emphasizes the effect of business decisions on society.

Before the 1930s, the average work week prescribed by law was forty hours; however, workers were dissatisfied because there was no minimum wage.

Negotiated settlements for cleaning up hazardous wastes became known as sweetheart deals because the EPA helped only those companies friendly to them.

An affirmative action program is designed to ensure that minority employees are represented in about the same proportion as their representation within the community.

The Sarbanes-Oxley Act of 2002 gives those who report corporate misconduct sweeping new legal protection.

The Sarbanes-Oxley Act of 2002 deals with corporate responsibility, conflicts of interest, and corporate accountability.

The EPA was created by the government to develop new and improved ways to clean and improve the environment.