Deck 15: Incorporating Ethics and Social Responsibility Into the Business

Question 1

In the context of ethics, most ethical dilemmas require balancing conflict among three perspectives: _____, obligations or duty, and utility or cost/benefit.

A) accountability
B) awareness
C) ideals
D) integrity
E) actions

Answer 1

C

Question 2

Ethics derives from the cultural, social, political, and ethnical norms with which people were raised as children.

Answer 2

True

Question 3

A company's core values are based on the personal values and beliefs of the founder or the founding team.

Answer 3

True

Question 4

It is not possible for a company to be successful without a vision.

Question 5

Which of the following statements best represents the subjectivist approach to avoiding ethical issues?

A) "I simply will never lie or cheat or steal."
B) "Everyone needs to look out for him- or herself."
C) "Ethics is simply a point of view."
D) "Do unto others as you would have them do unto you."
E) "When in Rome, do as the Romans."

Question 6

Developing a strong ethical code and enlisting the cooperation of everyone in the business will allow a company to avoid the ethical problems that business brings.

Question 7

Aristotle, the Greek philosopher, said that _____ is the first of the human virtues because without it, the others are not possible.

A) r esponsibility
B) v ision
C) c ourage
D) h ope
E) compassion

Question 8

A conflict of interest occurs when a person's private or personal interests clash with his or her

A) professional obligations.
B) stakeholder interests.
C) personal ethics.
D) survival tactics.
E) social responsibilities.

Question 9

_____ refers to operating a business in a way that exceeds the ethical, legal, commercial, and public expectations that society has of the business.

A) Purpose
B) Social responsibility
C) Vision
D) Success
E) Mission

Question 10

Which of the following approaches to avoiding ethical issues is best represented by the statement, "Everyone needs to look out for him- or herself."

A) Dogmatic approach
B) Egoistic approach
C) Situational approach
D) Relativist approach
E) Subjectivist approach

Question 11

A triple bottom line strategy consists of people, planet, and profit.

Question 12

Most ethical issues are not criminal acts but rather small dilemmas that present themselves with great regularity every day.

Question 13

Which of the following is NOT one of the four categories of ethical decision making that entrepreneurs face on a daily basis that has been identified by recent research?

A) Individual values
B) S ocial responsibility
C) Organizational values
D) C ustomer satisfaction
E) External accountability

Question 14

In Eastern culture, ethical leaders are viewed as being

A) closed to others' ideas.
B) modest.
C) materialistic.
D) driven.
E) charismatic.

Question 15

An effective way to become socially responsible is to try to support many different causes rather than pick a single cause to focus on.

Question 16

Strategies are the plans for achieving the goals and, ultimately, accomplishing the mission of a company.

Question 17

The process of developing _____ begins with a company's self-examination to identify values held by individuals and alert everyone to inconsistencies in how people deal with particular issues.

A) a s trategic plan
B) a plan of action
C) social responsibility
D) integrity
E) a  code of ethics

Question 18

In Eastern culture, ethical behavior tends to be described in terms of appropriate behavior, moral standards, and compliance.

Question 19

Most ethical dilemmas require balancing conflict among three perspectives: ideals (what ought to be true), reality (what is actually true), and utility or cost/benefit.

Question 20

_____ is a critical first step in identifying and assessing an ethical dilemma.

A) A ccountability
B) Awareness
C) Legality
D) Vision
E) Exposure

Question 21

Which of the following would NOT be considered a stakeholder of a company?

A) An employee
B) A supplier
C) A competitor
D) An investor
E) A customer

Question 22

Entrepreneurs who play too close to the edge of legality are in danger of

A) pushing the limits of the law.
B) running into conflicts of interest.
C) using survival tactics.
D) succumbing to  peer pressure.
E) N one of these are correct.

Question 23

_____ are the fundamental beliefs that a company holds about what is important in business and in life in general.

A) Mission statements
B) Social responsibilities
C) Survival tactics
D) Core values
E) Operating objectives

Question 24

In the context of the components of company vision, _____ are the means to execute the strategies for achieving the goals of a company.

A) values
B) tactics
C) employees
D) mission statements
E) investments

Question 25

Management guru Peter Drucker always asserted that a company's _____ should "fit on a t-shirt."

A) code of ethics
B) mission
C) action plan
D) purpose
E) strategy

Question 26

A small company can have a socially responsible impact on its community if it does a few things by way of preparation. First, the company needs to

A) create a mission statement.
B) set goals.
C) partner with a for-profit organization.
D) involve only a few people in the organization.
E) develop action plans.

Question 27

A company's _____ is what brings everyone together to achieve a common objective and is closely related to the company's purpose.

A) operational plan
B) mission
C) social responsibility
D) strategy
E) code of ethics

Question 28

An entrepreneur's personal _____ is really a function of the core values and vision that the entrepreneur has for his or her life.

A) code of ethics
B) mission
C) strategy
D) purpose
E) definition of success

Question 29

By giving something back to the community or communities in which it does business and, through them, to society as a whole, the business holds itself to a higher standard of

A) social responsibility.
B) business ethics.
C) corporate culture.
D) customer service.
E) core values.

Question 30

Which of the following is NOT one of the constants that seem to permeate everyone's definition of success?

A) Purpose
B) Having to pay for, or earn, success
C) Beliefs about failure
D) A sense of satisfaction with what was accomplished
E) Ambition

Question 31

Which of the following is NOT one of the five most common types of ethical dilemmas in business?

A) Conflict of interest
B) Invasion of privacy
C) Stakeholder pressure
D) Pushing the legal limit
E) Responding to initiatives

Question 32

Which of the following should be known about a company in order to answer the question "Why does the business exist?"

A) Its  purpose
B) Its  mission
C) Its  strategies and tactics
D) Its  core values
E) All of these are correct.

Question 33

Research has shown that the ethical behavior of employees is very much influenced by

A) the dogmatic approach.
B) the situational approach.
C) the code of ethics of the company.
D) social responsibility.
E) societal norms.

Question 34

Ethics is derived, principally, from the _____ norms with which we were raised as children.

A) cultural
B) social
C) political
D) ethnical
E) All of these are correct.

Question 35

Abigail is a goal-oriented entrepreneur. When asked why she went into business, she would most likely give which of the following reasons?

A) Less risk
B) Lack of uncertainty
C) Confirmed success
D) Control of one's destiny
E) Peer pressure

Question 36

In the context of components of company vision, _____ are the foundation for all the decisions an entrepreneur will make as his or her company grows.

A) obligations
B) g oals
C) c ore values
D) s ocietal norms
E) s trategies

Question 37

All of the following are examples of poor ethics EXCEPT

A) not reporting all cash receipts.
B) cheating customers on price.
C) failing to pay bills on time .
D) getting to work late .
E) lying to customers, employees, and suppliers .

Question 38

To ensure that the code of ethics established for the company is implemented and maintained over time, an entrepreneur should do all of the following EXCEPT

A) educate employees about ethics through workshops that put employees in hypothetical situations .
B) publicly report ethical lapses.
C) demonstrate commitment to the ethics program by mentioning it on a regular basis.
D) model the behavior expected of others in the company.
E) provide examples of appropriate behavior that employees display during the course of their work.

Question 39

A _____ precisely identifies the environment in which the company operates and communicates the company's fundamental philosophy.

A) code of ethics
B) mission statement
C) vision
D) purpose
E) strategy

Question 40

Which socially responsible rule does Paul Brainerd, founder of The Brainerd Foundation in Seattle, Washington, suggest?

A) Wait until you are older to become socially responsible.
B) Don't wait until later in life to begin giving back.
C) Wait until the venture is well established before giving back.
D) Go for something huge.
E) None of these are correct.

Question 41

List some benefits of being socially responsible.

Question 42

List the four constants of success.

Question 43

Define stakeholders.

Question 44

List the four categories of ethical decision making that entrepreneurs face on a daily basis.

Question 45

Define conflicts of interest.

Question 46

Discuss the characteristics of an effective code of ethics.

Question 47

Discuss the process of developing a code of ethics.

Question 48

List some ways in which a company can become socially responsible.

Question 49

List and briefly describe the components of company vision.

Question 50

Define ethics.