Deck 3: Ethics and Social Responsibility

Question 1

Many firms have a statement that defines the core purpose of the organization and its values. Which of the following would LEAST likely include that statement?

A)corporate vision
B)operations manual
C)mission statement
D)code of ethics

Answer 1

B

Question 2

If you are developing your own personal ethical system, which of the following would NOT be appropriate to include in your evaluation?

A)your beliefs
B)your age
C)your behavior
D)your character

Answer 2

B

Question 3

Victor is using the Internet to research past charges that have been filed against the pharmaceutical company Pharmacure. Victor is primarily trying to find out about Pharmacure's ________.

A)code of ethics
B)corporate vision
C)record of legal compliance
D)mission statement

Answer 3

C

Question 4

"Nice guys finish last." and "Hard work always pays off" are examples of ________.

A)goals
B)beliefs
C)virtues
D)behaviors

Question 5

Patricia often acts without thinking of the consequences. She usually comes home late and even skips her turn to do household chores. When someone asks her if she thinks what she does is right or wrong, she says she doesn't really know and she doesn't really care. Patricia's behavior can be classified as ________.

A)amoral
B)unethical
C)ethical
D)moral

Question 6

Situational ethics was considered very controversial when it was established by Joseph Fletcher because it challenged the idea that ________.

A)universal rules exist and can be applied to every situation
B)people make decisions based on a specific situation no matter what the consequences are
C)people make decisions based on a specific situation instead of universal laws
D)most people act in their own self interest when making decisions

Question 7

Living ethically can provide all of the following benefits EXCEPT ________.

A)reduced stress-related ailments
B)improved personal happiness
C)heightened agreement between personal and communal values
D)improved capability of dealing with challenging situations

Question 8

The responsibility of cultivating a company's ethics MOST often rests on ________.

A)conscientious leaders
B)a good marketing strategy
C)a productive workforce
D)stringent but coherent rules

Question 9

Which of the following ethical issues should be of the LEAST concern to a business?

A)A customer has failed to report all of her income to the IRS.
B)An employee uses recreational drugs on the weekends.
C)A manager is having a romantic relationship with one of his team members.
D)An employee who operates equipment drinks several beers while offsite eating lunch.

Question 10

When the wife of Mark Whitacre, who was involved in illegal activities at Archer Daniels Midland (ADM), threatened to divorce him if he did not end his involvement with the price fixing, she demonstrated an example of ________.

A)flexible ethical standards
B)strong personal ethics
C)compromised business ethics
D)legal oversight

Question 11

In business relations all of the following are influenced by our personal ethics EXCEPT ________.

A)actions
B)job titles
C)thoughts
D)words

Question 12

Which of the following would LEAST likely be a source of a company's values and principles?

A)the company's code of ethics
B)the company's marketing campaign
C)the company's mission statement
D)the owner's behaviors and priorities

Question 13

Unethical behavior is defined as behavior that does not conform to a set of approved standards of ________ behavior.

A)amoral
B)diplomatic
C)social
D)religious

Question 14

Which of the following is NOT an example of how corporate social responsibility can be consistent with profitability?

A)using recycled styrofoam as cups in a coffee shop
B)offering bonuses to employees who embellish profit and loss statements
C)paying employees in a developing nation more than the minimum
D)encouraging employees to volunteer within the local community

Question 15

Corporate social responsibility can be defined as a company's obligation to ________.

A)blend its activities into the social fabric of whatever country it conducts business in
B)include social networking and society events that bring in prominent members of the community
C)conduct its activities with the aim of achieving social, environmental, and economic development
D)behave in whatever manner is necessary to earn the highest profit for owners

Question 16

According to moral relativism ________.

A)gossiping creates a more divisive workplace
B)everyone is equal in the eye of the law
C)no single view is more valid than any other
D)people make decisions based on specific situation instead of universal laws

Question 17

A new school of psychology, established by Dr. Martin Seligman of the University of Pennsylvania, addresses the causes of happiness instead of looking into treatments for mental dysfunctions. This area of psychology is called ________.

A)evaluative therapy
B)positivism
C)the happiness factor
D)positive psychology

Question 18

Situational ethics encourages people to ________.

A)create a personal code of ethics based on their family background
B)make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws
C)evaluate how they can best meet their individual needs in any particular situation
D)apply the basic values shared all major religious traditions to a variety of situations

Question 19

Which of the following questions enables a person to BEST understand her behavior from an ethical perspective?

A)What are the most important beliefs you hold and use to make decisions in your life?
B)What characteristics would others use to describe you?
C)How do your relationships reflect your character and beliefs?
D)Where did your beliefs and your view of your character come from?

Question 20

Cindy is a popular actress and has won countless acting awards in her 15 years in the industry. People always ask her what her secret is, and Cindy tells them, "Hard work always pays off!" She adds that each time she acts she's giving her all. Cindy's belief is most likely in line with her ________.

A)social ethics
B)personal ethics
C)political ethics
D)religious ethics

Question 21

Since goods are more widely manufactured and sold in the global marketplace, this has caused U.S. companies to ________.

A)have more control over ethical standards in other countries since governments are eager to meet the expectations of companies that wish to operate within their borders
B)close down offshore manufacturing facilities because of different ethical standards
C)respect and care for their employees in the U.S. with higher ethical standards
D)face difficult decisions about working with companies in other countries that do not meet U.S. standards for human rights and employment standards in the workplace

Question 22

A corporation's first responsibility is ________.

A)to the society at large
B)to its employees
C)to its stockholders
D)to the government

Question 23

How do companies conduct a social audit?

A)They submit their corporate social responsibility portfolios to third-party companies that rate and rank them against other companies.
B)They file reports to their stockholders and investors about proposed corporate social responsibility activities related to social work and environmental conservation.
C)They partner with charitable organizations that interact with the local community and employee relations on their behalf.
D)They conduct an internal systematic examination that measures and monitors the progress of the company in meeting its corporate social responsibility goals.

Question 24

When a pharmaceutical company develops a new drug to fight malaria and ships it out to a region of the world where the populace cannot afford to buy the drug, this is an example of ________.

A)an action intended to tease
B)an ethical dilemma
C)a quality issue
D)a global marketing conflict

Question 25

Which of the following is NOT a benefit of corporate social responsibility?

A)Sales increase through environmentally and ethically conscious labeling.
B)lower costs for materials and labor
C)Efficiency increases when companies use materials efficiently and minimize waste.
D)The best available talent is retained.

Question 26

Which of the following is least likely to be an environmental, health, or safety concern for a farmer?

A)the operation of heavy machinery in harvesting crops
B)the runoff of pesticides from fields
C)the shipping of harvested crops in containerized trucks
D)the construction of steel-walled barns to replace old wood barns

Question 27

A toy company regularly donates some of its profits to charitable organizations. This company is exercising ________.

A)self-reporting
B)corporate philanthropy
C)social audits
D)public ratings and rankings

Question 28

Corporate social responsibility is mainly concerned with how a company affects the ________.

A)family
B)investor
C)community
D)vendors

Question 29

Which of the following best defines the essential task of self-reporting?

A)to define values and ethical standards in the workplace
B)to report the company's actions regarding corporate social responsibility to its stockholders
C)to donate profits or resources to socially conscious and environmental organizations
D)to submit all financial accounts to public scrutiny

Question 30

When a magazine refuses to accept advertisements featuring "size zero" models on the grounds that it could encourage eating disorders in young women, this is an example of paying attention to which pillar of corporate social responsibility?

A)marketing and consumer issues
B)human rights and employment standards in the workplace
C)community and good neighbor policies
D)ethical sourcing and procurement

Question 31

The primary mission of most corporations is ________.

A)to make a profit
B)to produce products that the public will find useful
C)to provide jobs to workers
D)to create a stable balance sheet between income and expenses

Question 32

When a community gives Wal-Mart subsidies to attract them to the area and then the workers are paid so poorly that they have to apply for public assistance, this is an example of the failure of which of the pillars of corporate social responsibility?

A)community and "good neighbor" policies
B)human rights and employment standards in the workplace
C)environmental, health, and safety concerns
D)marketing and consumer issues

Question 33

Which of the following is an example of ratings and rankings of the level of corporate social responsibility of companies?

A)a Time Warner press release discussing advances in corporate citizenship
B)The founder of Clif Bar, Inc. won the Business Ethics Award given by Business Ethics magazine.
C)A regional heating fuel supplier performs a social audit of how resources such as funding and manpower have been applied to the goals of corporate social responsibility.
D)The Bill and Melinda Gates Foundation, started by Microsoft chairman Bill Gates, has begun an initiative for a malaria vaccine, which has had a positive impact on the public perception of Microsoft.

Question 34

Which is an example of using social networking to foster corporate social responsibility?

A)Burger King's use of YouTube to advertise its brand
B)Toyota's Auto-biography Facebook campaign where Toyota owners can discuss their experiences
C)Pepsi RefreshEverything's Web site where people from across the country can post their project proposals for meeting community needs
D)American Express awards grants to nonprofit organizations as part of its Corporate Responsibility program

Question 35

When the banana supplier Chiquita begins to improve conditions for its workers by constructing schools for employees' families, this is an example of which of the following pillars of corporate social responsibility?

A)human rights and employment standards in the workplace
B)environmental, health, and safety concerns
C)ethical sourcing and procurement
D)marketing and consumer issues

Question 36

When Shell Oil works toward reducing emissions of nitrous oxide and sulfur dioxide from its facilities, this is NOT an example of which of the following pillars of corporate social responsibility?

A)community and "good neighbor" policies
B)marketing and consumer issues
C)ethical sourcing and procurement
D)environmental, health, and safety concerns

Question 37

When Gary Erickson, the founder of Clif Bar, Inc., was about to accept an offer of $120 million for the company, he changed his mind because ________.

A)the offer was too high
B)the offer was too low
C)the purchasers were planning to move Clif Bar out of state and fire all current employees
D)the purchasers were not intending to use renewable energy as the main power source for the company

Question 38

Which of the following is an internal examination by a company to measure its performance in relation to corporate social responsibility?

A)a corporate watchdog analysis
B)self-reporting
C)a social audit
D)public ratings and rankings

Question 39

The Calvert Company assigns companies scores between 1 and 5 on which of the following categories?

A)freedom of information
B)transparency
C)community relations
D)truth in advertising

Question 40

Which of the following is the practice of reporting to stockholders about corporate social responsibility and the ethical advances of a company?

A)a corporate watchdog analysis
B)self-reporting
C)a social audit
D)public ratings and rankings

Question 41

The Equal Employment Opportunity Commission (EEOC)monitors legal compliance by investigating complaints of violations of federal laws on a variety of issues, NOT including ________.

A)sexual harassment
B)compliance with Americans with Disabilities Act
C)discrimination
D)criminal fraud

Question 42

To have a product certified as organic, a company must ________.

A)charge more for the product than for a comparable non-organic product
B)allow the Food and Drug Administration (FDA)to conduct routine, frequent inspections
C)meet annual inspections by the USDA to check on standards
D)produce only organic products in its facilities

Question 43

Which of the following is NOT a legal right?

A)the right to be heard
B)the right to bear witness
C)the right to safety
D)the right to choose

Question 44

When shoppers boycotted Target because the chain had a policy of not allowing solicitors, including the Salvation Army, to collect money outside their doors, Target responded by ________.

A)donating $9 million to the Salvation Army
B)launching an advertising campaign claiming that the company supported a variety of charities and did not include the Salvation Army
C)creating a department in its stores for inexpensive used goods
D)allowing solicitors, including the indigent homeless, to solicit money just inside the front entrances to their stores

Question 45

________ are the laws that govern the products and processes of an industry.

A)Legal regulations
B)Ethical standards
C)Ethical codes
D)Legal standards

Question 46

Which of the following is not an environmentally based corporate social responsibility issue?

A)allowing chemical contaminants to enter the local groundwater system
B)trucking toxic substances to Mexico to regions where it is legal to recycle them
C)exposing employees to potentially hazardous materials
D)effects on employees of a negative corporate culture

Question 47

Jeremy is a telemarketer who is hearing impaired. His hearing aid helps him take calls at work and this compensates for his disability. He accidentally broke his hearing aid and did not have the money to replace it. He asked for an advance on salary and was refused. He asked for a loan and was refused. As a result, Jeremy was unable to take calls from customers and he was fired from his job because of "poor performance." Which government agency shall he call to help Jeremy in this situation?

A)the Securities and Exchange Commission
B)the Equal Employment Opportunity Commission
C)the United States Congress
D)the Department of Health and Human Services

Question 48

Which of the following is NOT a way for a company to reduce its environmental footprint?

A)reduce carbon emissions
B)increase use of postal mail
C)increase recycling
D)increase use of email

Question 49

The Sarbanes-Oxley Act requires that ________.

A)companies be held financially responsible for environmental damage caused by their actions
B)CEOs verify their companies' financial statements and vouch for their accuracy with the SEC
C)all food packaging displays complete nutritional information
D)investment bankers disclose the percentage of their assets that are considered high risk

Question 50

When a business implements a strong corporate social responsibility plan, it will MOST likely ________.

A)ensure its long-term sustainability
B)cause the business to be financially unstable
C)cause the prices of the products of that business to rise
D)limit the long-term investment potential of the company

Question 51

Tools like the Hogan Personal Inventory assess a job candidate in areas such as ________.

A)math abilities
B)business background
C)stress tolerance
D)morning routines

Question 52

What does it mean when a firm goes "green"?

A)It becomes eco-friendly.
B)It becomes political.
C)The business shifts to bigger profit goals.
D)The type of product sold by the business changes.

Question 53

Conducting a business within the boundaries of all laws that govern that industry is referred to as ________.

A)legal excellence
B)legal compliance
C)legal adaptation
D)legal integrity

Question 54

Which of the following companies, formerly in the top 25 of Fortune magazine's 100 Best Companies to Work For, no longer is in business because of flagrant legal and ethical violations?

A)Verizon
B)Exxon-Mobil
C)Enron
D)Archer Daniels Midland

Question 55

Several investors are looking for information about an up-and-coming soft drink company, Soft Sip. Which government agency ensures that the investors have access to this information?

A)the Equal Employment Opportunity Commission
B)the Securities and Exchange Commission
C)the United States Department of Agriculture
D)the United States Congress

Question 56

In June 2006, Bank of America offered over 21,000 employees in three cities $3,000 toward the purchase of hybrid vehicles. Bank of America's offer shows the bank's commitment to ________.

A)ethical sourcing and procurement
B)community and good neighbor policies
C)environmental, health, and safety concerns
D)marketing and consumer issues

Question 57

Which of the following steps would be LEAST likely to improve the culture of ethical and responsible conduct in a business?

A)Calendars with the mission statement of the company can be printed and distributed for all employees to use at home and to give away at holiday time.
B)The mission statement can be posted throughout the workplace.
C)Managers can set clear examples for the standards of behavior expected.
D)Orientation programs can be offered to inform new employees of ethical standards in place and conduct expected of them.

Question 58

Which of the following is LEAST likely to create an opportunity for a business to expand or improve its products or services?

A)redesigning the business so that there is no longer a negative impact on the environment
B)creating new markets with an ethical focus
C)using ethical challenges as a tool to unite and empower employees
D)sending out public relations statements saying the company is against the deforestation of the Amazon rainforest

Question 59

Which of the following companies has NOT been involved in a major legal battle over ethical issues in recent years?

A)MCI WorldCom
B)Archer Daniels Midland
C)Verizon
D)Arthur Anderson

Question 60

Socially responsible investing (SRI)is defined as investing only in companies that have met a certain standard of ________.

A)social acceptability
B)global impact
C)corporate social responsibility
D)financial transparency

Question 61

Walmart's behavior demonstrates that it places great value on the importance of corporate social responsibility.

Question 62

Companies must uphold their moral and ethical obligations to consumers above their need to respond to investors.

Question 63

At the Kaplan Thaler advertising agency, one of the firm's ethical principles is that their employees are expected to be helpful to their colleagues.

Question 64

United States companies that locate their operations in less developed parts of the world are required to enforce U.S. standards regarding child labor, pollution, fair wages, and human rights.

Question 65

Consumers have limited resources for determining whether a company has engaged in unlawful actions or has been irresponsible in its activities.

Question 66

The Americans with Disabilities Act is a federal law that upholds ethical standards.

Question 67

Telecommuting is one instance when a person's employer may influence how an employee behaves at home.

Question 68

When you agree to work for a company, you're saying that you agree with its mission and ethics.

Question 69

In effect, ethics are the guidelines you use to make daily decisions.

Question 70

A company's track record of legal compliance can be used to evaluate a company's ethical conduct.

Question 71

The production of toxic materials is moving at a far faster pace than the growth of proper storage facilities and techniques, so disposal becomes more and more expensive.

Question 72

Sexual conduct outside the office will never impact the professional role of the employee involved.

Question 73

The decision to abide by the speed limit when driving is not an ethical decision.

Question 74

As a consequence of The Bill and Melinda Gates Foundation work to upgrade public access to technology, Microsoft's leadership has demonstrated its high regard for CSR.

Question 75

Moral relativism is a perspective that holds that there is a universal moral truth that is modified by individuals to suit differing circumstances.

Question 76

Companies with a strong sense of corporate social responsibility are obligated to understand the work structure of their suppliers.

Question 77

The environmental and social concerns of the Amazon Basin would be taken into consideration when a socially responsible U.S. manufacturer of furniture is making the decision about whether to purchase wood from that region.

Question 78

Legal compliance refers to conducting a business within the boundaries of all the legal regulations of that industry.

Question 79

Intel consistently scores high as an industry leader in its commitment to strong CSR practices because it supports many charitable groups and is responsive to the needs of the communities where it has facilities.

Question 80

Educating the local workforce is part of a thorough corporate social responsibility commitment.