Question 1

Publicity efforts that portray a company as being environmentally friendly when its actions speak otherwise are called ________.

Accepted Answer

A)  environmental minimalism 
B)  quasi-environmentalism 
C)  greenwashing 
D)  collectivism 
E)  proactivism

Question 2

President John F.Kennedy announced a "bill of rights" for consumers,laying the foundation for a wave of consumer-oriented legislation.

Accepted Answer

A) True 
 B)False

Question 3

Compare and contrast insider trading and whistle-blowing.

Accepted Answer

The answer of Compare and contrast insider trading and whistle-blowing....

Question 4

Which of the following statements is true regarding ethical decision making?

Accepted Answer

A)  When an employee is unable to make a decision because more than one side of an issue can be supported with valid arguments, it is called an ethical lapse. 
B)  The disclosure of information by a company insider that exposes unethical behavior by others within the organization is called an ethical lapse. 
C)  Stakeholders' needs often conflict, requiring managers to make tough decisions about resource allocation. 
D)  Making objective decisions will lead to ethical lapses. 
E)  When the question of what is right and what is wrong is clear, ethical decisions are easy to implement.

Question 5

The CEO of a company considers offshoring some of its production to another country with lower labor costs.This decision would favor the company's customers who will benefit from lower prices.The shareholders also stand to benefit from lower production costs,which could increase sales,profits,or both,probably leading to increases in share prices.However,some employees will lose their jobs,and morale is likely to suffer among those employees who keep theirs.In this situation,the CEO faces a(n)________.

Accepted Answer

A)  ethical dilemma 
B)  ethical lapse 
C)  strategic CSR 
D)  defensive CSR 
E)  cognitive dissonance

Question 6

________ refers to a written statement setting forth the principles that guide an organization's decisions.

Accepted Answer

A)  Code of ethics 
B)  Limited liability agreement 
C)  Employee procedure policy 
D)  Statement of sustainable development 
E)  Statement of corporate opportunity

Question 7

Compare and contrast philanthropy and strategic CSR.

Accepted Answer

The answer of Compare and contrast philanthropy and strategic CSR....

Question 8

Conflicts of interest involve business decisions that might be influenced by the potential for personal gain.

Accepted Answer

A) True 
 B)False

Question 9

An employee at Cleveland Medical Center informs the media of certain health law violations and negligence that lead to documented illness and even death in certain cases.This is an example of ________.

Accepted Answer

A)  insider trading 
B)  whistle-blowing 
C)  affirmative action 
D)  consumerism 
E)  strategic CSR

Question 10

A situation in which you must choose between two conflicting but arguably valid alternatives would be known as a(n)________.

Accepted Answer

A)  insider trading 
B)  ethical lapse 
C)  corporate opportunity 
D)  ethical dilemma 
E)  conflict of interest

Question 11

What are cap and trade programs?

Accepted Answer

The answer of What are cap and trade programs?...

Question 12

Which of the following is an example of insider trading?

Accepted Answer

A)  The marketing manager of a company is accused of using company resources for personal use. 
B)  An executive receives a compensation comprising of cash, paid expenses, and shares of the company. 
C)  An employee hacks the firm's computer networks, systems, and databases to obtain customer records so that he can sell the information to rival firms. 
D)  The chief executive officer of an IT company purchases shares in the company as he learns that the company is being taken over by a leading, global IT firm. 
E)  A firm disseminates fraudulent information in chat rooms, forums, Internet boards, and via email, with the purpose of causing a dramatic price increase in thinly traded stocks of the company.

Question 13

The Resource Recovery Act (1970)________.

Accepted Answer

A)  subsidizes pilot recycling plants 
B)  regulates treatment, storage, transportation, and disposal of hazardous waste 
C)  establishes a structure for coordinating all federal environmental programs 
D)  authorizes grants to states for water-pollution control 
E)  prohibits ocean dumping that could threaten human health or the marine environment

Question 14

What is consumerism? List the fundamental consumer rights.

Accepted Answer

The answer of What is consumerism? List the fundamental consumer...

Question 15

Discuss the two-tiered approach to CSR.

Accepted Answer

The answer of Discuss the two-tiered approach to CSR....

Question 16

Which of the following ethical approaches emphasizes desirable character traits such as integrity and compassion?

Accepted Answer

A)  utilitarianism 
B)  Kantian ethics 
C)  deontological ethics 
D)  affirmative action 
E)  virtue

Question 17

Compare and contrast ethical lapse and ethical dilemma?

Accepted Answer

The answer of Compare and contrast ethical lapse and ethical...

Question 18

Which of the following statements is true?

Accepted Answer

A)  The creation, delivery, use, and disposal of products that society values can be carried out without generating any pollution and consuming any natural resources. 
B)  Web-based businesses are "clean" because there is no pollution associated with them. 
C)  Environmental issues are easy and simple, and companies can easily make decisions when faced with such issues. 
D)  Environmental issues faced by businesses are about forests, rivers, and wildlife; and not about human health and safety. 
E)  Dealing with environmental issues often requires tough trade-offs, occasional sacrifice, and disruptive change.

Question 19

What is the meaning of the term "consumerism"?

Accepted Answer

A)  overspending by customers 
B)  overspending by corporations 
C)  pressuring businesses to consider consumer needs 
D)  pressuring consumers to consider business needs 
E)  unexpected demand by buyers

Question 20

John,a business owner,refuses to contribute to social causes.He argues that he is an honest,law abiding businessman who never evades his taxes.He states that by providing good quality products at a fair price,he has fulfilled his company's obligation to society.John would be said to have a ________ approach to CSR.

Accepted Answer

A)  defensive 
B)  minimalist 
C)  cynical 
D)  proactive 
E)  strategic

Exam 4: Business Ethics and Corporate Social Responsibility