Deck 2: Business Ethics and Social Responsibility

Question 1

Price gouging occurs when a company sells products below cost.

Answer 1

False

Question 2

Some ethical and unethical behaviors fall into gray areas while others are widely agreed upon.

Answer 2

True

Question 3

Unethical behavior complies with individual beliefs and social norms about what's right and good.

Answer 3

False

Question 4

Consumerism is a form of social activism dedicated to protecting the rights of consumers in their dealings with businesses.

Question 5

Ethical behavior is behavior that individual beliefs and social norms define as being wrong and bad.

Question 6

Ethics are beliefs about what is right and wrong or good and bad.

Question 7

Collusion is an illegal agreement between two or more companies or individuals to commit a wrongful act.

Question 8

Whistle-blowers may report wrongdoing to their direct supervisors,as well as to outside agencies.

Question 9

Social responsibility is an attempt by a business to balance its commitments to groups and individuals in its environment,including customers,other businesses,employees,and investors.

Question 10

Insider trading occurs when someone uses confidential information to gain from the purchase or sale of stocks.

Question 11

The term organizational stakeholder refers to groups,individuals,and organizations that are directly affected by the practices of an organization.

Question 12

The standards of behavior that guide individual managers in their work is called managerial ethics.

Question 13

Today,almost all major corporations have written codes of ethics.

Question 14

An employee of an organization can be considered an organizational stakeholder.

Question 15

Greenwashing is the use of advertising to project a green image while adopting substantive environmentally friendly changes.

Question 16

A conflict of interest occurs when an activity may benefit the individual to the detriment of his or her employer.

Question 17

Accepting and offering bribes is a normal part of doing business in some parts of the world.

Question 18

In recent years,companies have found that they can increase profits by going green.

Question 19

Business ethics refers to ethical or unethical behaviors by employees in the context of their personal lives.

Question 20

Under a defensive stance to social responsibility,companies meet only their minimum legal requirements.

Question 21

Most companies have concluded that ethics training programs are ineffective.

Question 22

A business's social responsibility to investors includes following proper accounting procedures,providing appropriate information to shareholders about financial performance,and managing the organization to protect shareholder rights and investments.

Question 23

Some actions,such as stealing during periods of natural disaster,may be illegal yet considered ethical.

Question 24

Greenwashing is using false advertising by pushing the truth to the limit.

Question 25

In response to the economic turmoil of the Great Depression,the government deregulated most business activity.

Question 26

A manager who discriminates against African Americans in hiring exhibits both unethical and illegal behavior.

Question 27

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

Question 28

In the United States,there are increased expectations for a greater social role for business.

Question 29

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

Question 30

Because ethics are based on both individual beliefs and social concepts,they do not vary from person to person.

Question 31

The first formal declaration of consumer rights protection occurred when President Richard M.Nixon identified four basic consumer rights.

Question 32

The practice of greenwashing is socially responsible.

Question 33

Ethical standards relating to business practices are fairly consistent around the world.

Question 34

What constitutes ethical and unethical behavior is determined partly by the individual and partly by the culture.

Question 35

Social responsibility must start at the top of the organization.

Question 36

The single most effective step a company can take to encourage ethical behavior is upper-management support.

Question 37

About half of all whistle-blowers eventually get fired.

Question 38

Most companies have policies that forbid buyers from accepting gifts from suppliers.

Question 39

The number of companies adopting written codes of ethics has declined in the last 30 years.

Question 40

What constitutes ethical behavior is determined entirely by the individual.

Question 41

________ are beliefs about what is right and wrong or good or bad.

A) Mores
B) Motivators
C) Cultures
D) Ethics

Question 42

The Ronald McDonald House is a good example of a proactive stance to social responsibility.

Question 43

Though an individual feels that his behavior is ethical,that behavior may still be considered unethical if social norms consider it to be so.

Question 44

Companies adopting an accommodative stance to social responsibility do as little as possible to solve social or environmental problems and may deny or cover up violations.

Question 45

Whistle-blowers can confidently report findings to higher-level managers,who can be expected to take action.

Question 46

________ refers to ethical or unethical behaviors by employees in the context of their jobs.

A) Social ethics
B) Business ethics
C) Collusion
D) Social responsibility

Question 47

Ethical and unethical behaviors are determined by ________.

A) the individual
B) the culture
C) both the individual and the culture
D) neither the individual nor the culture

Question 48

There is general consensus within the United States that social responsibility must take precedence over profits.

Question 49

In recent years,there have been fewer concerns about ethics in advertising.

Question 50

The most essential ingredient in encouraging ethical behavior in an organization is getting all employees to buy into it.

Question 51

The Consumer Bill of Rights is backed by numerous federal and state laws.

Question 52

In the 1960s and 1970s,business was seen as a negative social force.

Question 53

The ethical norm of utility evaluates whether an act is relevant to the most beneficial party.

Question 54

An individual's personal code of ethics is shaped by their life experiences.

Question 55

The ethical norm of caring evaluates whether the decision is consistent with people's responsibilities to each other.

Question 56

Cost concerns have created reluctance to "go green" because the opportunity to make money by marketing green products to environmentally conscious consumers is not apparent.

Question 57

A behavior that does not conform to accepted beliefs and social norms is defined as ________.

A) ethical behavior
B) unethical behavior
C) irresponsibility
D) business ethics

Question 58

Behavior that conforms to individual beliefs and social norms about what is right and good is referred to as ________.

A) collusion
B) social reaction
C) ethical behavior
D) GAAP

Question 59

In a social audit,an independent group of examiners evaluate a company's compliance with GAAP.

Question 60

Small businesses must answer many of the same social responsibility questions as big businesses.

Question 61

A(n)________ stance to social responsibility occurs when a company meets only the minimum legal requirements in its commitments to groups and individuals in its social environment.

A) accommodative
B) obstructionist
C) proactive
D) defensive

Question 62

A(n)________ stance to social responsibility involves doing as little as possible and may involve attempts to deny or cover up violations.

A) accommodative
B) obstructionist
C) proactive
D) defensive

Question 63

Social activism dedicated to protecting the rights of consumers in their dealings with businesses is called ________.

A) conservation
B) consumerism
C) collusion
D) whistle-blowing

Question 64

Bob Crawford sold shares in XYZ Company after finding out from XYZ's CEO that XYZ's stock was about to drop in price.Bob engaged in ________.

A) whistle-blowing
B) misrepresentation of finances
C) insider trading
D) an accommodative stance to social responsibility

Question 65

An employee who discovers and tries to put an end to a company's unethical,illegal,or socially irresponsible actions by publicizing them is called ________.

A) top management
B) an outside contractor
C) a whistle-blower
D) an investor

Question 66

Top managers demonstrate commitment to ethical business practices with ________.

A) the adoption of written codes of ethics
B) employee empowerment
C) decentralized decision making practices
D) collusion with other companies

Question 67

Which of the following is NOT necessary to assess ethical behavior?

A) gather facts
B) make a judgment based on the rightness or wrongness of the activity or policy
C) consider appropriate moral values
D) listen to what is being said in the rumor mill

Question 68

Product advertising that some consumers consider morally objectionable would include such products as

A) underwear
B) condoms
C) alcohol
D) all of the above

Question 69

In setting ethical standards,perhaps the most effective step that a company can take is to ________.

A) adopt a code of ethics
B) demonstrate top management support of ethical standards
C) engage employees in ethics training
D) take an accommodative stance

Question 70

Green marketing encompasses a wide variety of business strategies and practices such as production process,product modification,and

A) reducing prices.
B) packaging reduction.
C) painting products.
D) price gouging.

Question 71

The Sarbanes-Oxley Act of 2002 requires that ________.

A) the chief financial officer prevent insider trading
B) the chief financial officer engage in strategic management
C) the chief financial officer guarantee the accuracy of financial reporting
D) the chief financial officer engage in creative accounting

Question 72

Which of the following statements could possibly be included in a company's code of ethics?

A) We have respect for individuals.
B) We encourage innovation.
C) We achieve our objective through teamwork.
D) All of these are possibilities.

Question 73

In maintaining and reporting its financial status,every corporation must ________.

A) conform to generally accepted accounting principles (GAAP)
B) purchase stocks on margin
C) use creative accounting practices
D) support increased stock prices

Question 74

With a(n)________ stance to social responsibility,a firm will hide wrongdoing.

A) defensive
B) obstructionist
C) accommodative
D) proactive

Question 75

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

A) identity theft
B) a margin purchase
C) insider trading
D) collusion

Question 76

The way in which a business tries to balance its commitments to groups and individuals in its social environment is called ________.

A) business ethics
B) socialization
C) corporate responsibility
D) social responsibility

Question 77

Firms that adopt a(n)________ stance to social responsibility meet their legal requirements and exceed legal minimums when specifically asked.

A) accommodative
B) obstructionist
C) proactive
D) defensive

Question 78

In a(n)________ stance to social responsibility,a company actively seeks opportunities to contribute to the well being of groups and individuals in its social environment.

A) accommodative
B) obstructionist
C) proactive
D) defensive

Question 79

________ are groups,individuals,and organizations that are directly affected by the practices of an organization.

A) Whistle-blowers
B) Social audits
C) Directors
D) Organizational stakeholders

Question 80

Which statement is false?

A) Fewer and fewer companies are adopting codes of ethics.
B) More and more companies are adopting codes of ethics.
C) Some ethical responses can be learned through experience.
D) Social responsibility involves providing quality products and pricing products fairly.