Deck 3: Business Ethics and Social Responsibility: Doing Well by Doing Good

Question 1

Business ethics are the application of right and wrong,good and bad,to decisions an employee makes within a business setting.

Answer 1

True

Question 2

When all is said and done,all choices and actions have definite ethical implications.

Answer 2

False

Question 3

An ethical dilemma is a situation in which there is a single choice that is obviously correct,but the correct choice will result in negative consequences.

Answer 3

False

Question 4

A medical facility operates illegally and unethically when they allow pharmaceutical companies to market to their customers

Question 5

If two different individuals facing the same ethical dilemma use the same ethical framework,they should always reach the same ethical decisions.

Question 6

Sally is responsible for ensuring that all equipment is placed in its proper location at the end of her work shift.She notices that one employee always leaves his equipment on the floor,but he is one of the top performers.Sally ignores the employee's negligence and stores the equipment in its proper location.Sally is displaying her individual ethics.

Question 7

Managers should not be expected to apply ethical guidelines to issues that directly affect their company's profits.

Question 8

An individual's ethical beliefs are influenced by his or her social group and culture.

Question 9

Ben and Josh are good friends who are working on a team assignment in statistics.They had planned to work on the project last night,but Josh called at the last minute saying he had a conflict,so Ben ended up doing all of the work.The instructor is giving each student the opportunity to critique the effort of his or her partner.Ben knows Josh needs the points on the assignment in order to pass the course and would like to keep Josh as a friend.If Ben decides to say that Josh deserves equal credit,he would be using relative ethical standards.

Question 10

Ethical standards are established based on guidelines provided by the Canadian government.

Question 11

Universal ethical standards are ethical norms that apply to people across a broad spectrum of situations.

Question 12

An ethical dilemma refers to a situation in which an individual clearly has performed some kind of misconduct.

Question 13

It is possible for someone's actions to be completely legal yet still be unethical.

Question 14

Marty Watkins is upset about his current salary at Right Touch Car Wash Inc.In order to increase his income,he begins charging customers more for each car wash and pocketing the difference.His actions are not unethical because Right Touch will not suffer a financial loss.

Question 15

Ethics and social responsibility are just two different terms that mean the same thing.

Question 16

Universal ethical standards also apply to international businesses.

Question 17

Jim was low on money and had access to the petty cash fund.He had been with his company for over 12 years without incident.One day at work,he thought about borrowing $100 from the petty cash fund with the intention of returning the funds on pay day.This is an example of an ethical dilemma in the workplace.

Question 18

All acts that are illegal must also be unethical.

Question 19

The best approach to ethical decision making is to rely on relative standards rather than universal standards.

Question 20

The easiest business challenges to address are those involving business ethics.

Question 21

In order to make ethical decisions,it is helpful to think about several questions,including (1)who will be impacted by the decision,(2)who will benefit from the decision,and (3)who will suffer from the decision.

Question 22

Managers of socially responsible companies are guaranteed to make ethical decisions regardless of the situation.

Question 23

The ethical standards a company establishes should be clearly communicated to outside parties such as suppliers and customers.

Question 24

According to a group of residents who live in a neighbourhood a few kilometres from an Early Oil Company refinery,the plant's emissions are a likely cause of severe headaches and other health problems among young people.Since these residents are not customers,employers,or investors in the company,Early Oil has no social responsibility to these individuals.

Question 25

A company's code of ethics describes the preferred behaviour of the firm in its business operation.It typically flows from the corporate culture.

Question 26

A written code of ethics is the cornerstone of an organization's formal ethics program.

Question 27

A corporate code of ethics guarantees that employees will not participate in unethical behaviours while at work.

Question 28

A question to ask when making a decision based on individual ethical beliefs is: Could you defend your decision on national TV?

Question 29

A written code of ethics provides guidelines for ethical behaviour in the workplace.

Question 30

Most writers on the topic of ethics would agree that the ethics of a firm is strongly influenced by the CEO's ethical standards.

Question 31

Whistleblowers desire to bring illegal and sometimes unethical company behaviour to the attention of regulators and advocacy groups.

Question 32

An ethical lapse is a situation in which every choice has undesirable consequences,forcing the decision maker to choose between undesirable alternatives.

Question 33

Studies have shown that as long as a company establishes a written code of ethics,it doesn't really have to actively enforce that code in order for it to be effective.

Question 34

Companies that protect whistleblowers encourage employees to be forthcoming with information that could be detrimental to the company.

Question 35

Companies should discourage whistleblowing because it creates an atmosphere of fear and mistrust.

Question 36

The law regulates standards of behaviour; however,it does not enforce ethical norms.Therefore,companies should focus on the legality of their actions and not worry about their ethical implications.

Question 37

The Ethics Resource Center (ERC)suggests organizational culture influences the ethical conduct of employees.

Question 38

The Bill and Melinda Gates Foundation regularly donates money to provide vaccines for people living in third world countries,addressing the elimination of some basic childhood diseases.Their work demonstrates social responsibility.

Question 39

Some firms only operate within the legal limits of the law and do not contribute to the well-being of their stakeholders.

Question 40

A manager advises his company that a vendor will offer the company a discount if contracts are renewed another 12 months.This is an example of an unethical business practice.

Question 41

A company demonstrates its corporate philanthropy when it allows employees time off to volunteer at community events.

Question 42

Although cause-related marketing can help a company meet its social responsibilities,it doesn't help build the company's brands.

Question 43

The business model to becoming a socially responsible company includes proactive contributions,community reinvestments,and understanding the needs of customers.

Question 44

Fast food restaurants can meet one of their social responsibilities to customers by offering menu items such as fruit,yogurt,and salads,which provide healthier choices.

Question 45

One problem with socially responsible business policies is that they tend to undermine the value of the firm to its owners.

Question 46

Kleen Things,a mobile dry-cleaning service,provides pick-up and drop-off services to its customers.Although there is a delivery/pick-up charge,Kleen Things offers a 50% discount if customers return the hangers.This is an example of sustainable development.

Question 47

A socially responsible business might use employee retention programs to reduce turnover rates.

Question 48

Stakeholders have a personal interest in the performance and activities of an organization.

Question 49

The U.S.Sarbanes-Oxley Act requires CEOs and CFOs to review the company's financial records and verify that their contents are valid.

Question 50

Corporate responsibility refers to the contributions of money and time to help achieve socially responsible goals.

Question 51

The federal government may be a major stakeholder in private business organizations.

Question 52

Managers of socially responsible businesses proactively support stakeholders' needs.

Question 53

Every January Procter & Gamble distributes special coupons for some of its leading brands and pays the Special Olympics 10 cents for every redeemed coupon.This tie-in between Procter & Gamble and the Special Olympics is an example of cause-related marketing.

Question 54

Planned obsolescence designs products with limited durability in order to shorten the time between consumer purchases.

Question 55

Companies typically enter into cause-related marketing programs to help a not-for-profit organization achieve a worthy cause and have little expectation that this partnership will benefit their own brand.

Question 56

The U.S.Sarbanes-Oxley Act was created to set higher ethical standards for public corporations and accounting firms.

Question 57

Cause-related marketing dollars are not tax deductible for a company but often enhance the company's brand.

Question 58

The federal government is a core stakeholder for all businesses.

Question 59

Total Bedlam Video Games has had the number one action video game on the market for the past two years.The company is currently working on a sequel to the game with better video and audio and several new types of missions.While the old game still works fine and should retain a loyal following,the company hopes that its new game will rapidly gain market acceptance due to its many enhancements.This represents a strategy known as planned obsolescence.

Question 60

Consumerism focuses on the right to purchase products regardless of the consumer's buying power.

Question 61

Firms that market globally are exempt from any responsibility for the well-being of workers abroad.

Question 62

Socially responsible companies use social audits to determine if an employee's ethical needs are to be adjusted.

Question 63

What does a nation's legal system provide businesses with when they establish a code of ethics?

A)a starting point
B)comprehensive guidelines
C)a way to distinguish between ethical issues and nonethical issues
D)very little useful guidance

Question 64

A social audit evaluates the ethical guidelines of a business and how those goals are linked to the overall goals of the firm.

Question 65

A socially responsible company entrusts a watchdog group to provide solutions to unethical behaviours.

Question 66

Harriette owned a diner in the 1950s.At that time,the state in which Harriette's diner was located had a law declaring that it was illegal for restaurants to serve whites and blacks in the same dining room.But Harriette never made customers of different races eat in separate rooms.What does this situation demonstrate about Harriette's business practice?

A)it is an example of an ethical lapse
B)it is clearly unethical because obeying the law is the most fundamental ethical requirement of all
C)it is ethical even though it was illegal according to state law
D)it is neither ethical nor unethical; it represents a pure business decision that has no ethical dimension

Question 67

Canadian retailers such as Roots and Zellers need not be concerned with child labour laws in the nations where they contract-manufacture their clothing lines,as long as the laws of those nations permit children to work in sweatshops and soft-goods factories.

Question 68

Human rights,worker safety,and wage practices are not factors a socially responsible business considers when deciding on what vendors and suppliers best meet its needs.

Question 69

Most consumers are willing to pay significantly higher prices and accept somewhat lower performance in order to purchase goods that are environmentally friendly.

Question 70

A business using a green marketing strategy promotes environmentally safe products in an effort to gain a competitive edge within an industry.

Question 71

In the business world,what does social responsibility refer to?

A)attempts to earn the highest possible return for the owners of a business
B)the obligation to obey the law
C)the obligation of a business organization to contribute to society
D)decisions individuals make about what is right and wrong

Question 72

By spending time and money on ergonomically enhanced facilities that promote employee health and safety,firms actively demonstrate socially responsible behaviour.

Question 73

What are the moral principles that govern behaviour?

A)business ethics
B)ethics
C)codes of conduct
D)social responsibilities

Question 74

Companies use watchdog groups to monitor employee behaviours while away from the work site.

Question 75

Before conducting a successful social audit,a company must define socially responsible goals and determine realistic measurements for those goals.

Question 76

As they apply to everyone in society,the function of laws in Canada is to establish and enforce what?

A)financial norms
B)advanced standards
C)social norms
D)ethical norms

Question 77

Green marketing is the marketing of environmentally sound products and practices to gain a competitive edge.

Question 78

The "double bottom line" referred to in a social audit measures a firm's philanthropic activities and its hiring practices.

Question 79

Which of the following best describes a nation's legal system?

A)It provides a starting point for examining ethical standards.
B)It provides guidance as to whether an action is unethical or illegal
C)It suffices as the ethical framework for a business.
D)It has little relevance to an organization's ethical standards.

Question 80

Triple Play,an upscale club,offers three floors of music and live entertainment.Each floor represents a music era,and the decor creates the ambiance.The club has established a set of goals related to its social and ethical responsibilities and carefully monitors its progress in achieving these goals.Triple Play's efforts are consistent with the use of a social audit.