Deck 2: Business Ethics and Social Responsibility

Question 1

Individual employees have a major influence over ethical expectations and behaviour.

Answer 1

True

Question 2

Businesses must find a balance between doing what is right and doing what is profitable.

Answer 2

True

Question 3

Technology has expanded the range and impact of unethical behaviour.

Answer 3

True

Question 4

Companies that put profits ahead of safety are using a stakeholder model of business ethics.

Question 5

Society's forces, such as demonstrations against a company's product or service, could shape the actions that businesses take. True or false?

Question 6

Setting appropriate ethical standards is a fairly straightforward task for most managers.

Question 7

The Sarbanes-Oxley Act requires that each member of a firm's Board of Directors certify the truthfulness of financial statements.

Question 8

Some employees rationalize questionable or unethical behaviour by saying, "Everyone does it."

Question 9

Walmart's survey of its suppliers about their sustainability practices was a first step in developing a "sustainability index".

Question 10

An individual employee acting ethically will have little influence on his or her coworkers.

Question 11

Some people engage in activities that are contrary to their personal and moral values because they feel pressured by their jobs.

Question 12

A recent study found that 49 percent of employees surveyed "witnessed misconduct on the job" in 2009, an increase over 2007.

Question 13

The legal requirements of the Sarbanes-Oxley Act vary from state to state.

Question 14

Social and ethical issues are a bigger concern in smaller companies than larger companies.

Question 15

Teresa discovered unlawful conduct at her company and notified authorities. Under the Sarbanes-Oxley Act of 2002, anyone who retaliates against Teresa can be prosecuted.

Question 16

Over the long term, society can give power to a business or take that power away, if the business operates outside the expectations of stakeholders. True or false?

Question 17

Fundamentally, a business is responsible only to its customers and investors.

Question 18

Bill 198 of 2003 is the Canadian version of the Sarbanes-Oxley Act of 2002.

Question 19

Organizations wishing to prosper cannot do so without considering business ethics.

Question 20

James, a final year business student in your school, argues that a company's responsibility to society, and its responsibility to remain profitable, are mutually exclusive. Is this statement true or false?

Question 21

An advertising agency representing two companies that compete with one another has an obvious conflict of interest.

Question 22

The only safe way to handle a potential conflict of interest is to avoid situations in which one might occur.

Question 23

It is NOT always easy to distinguish between right and wrong in many business situations.

Question 24

An employee who "goes public" with evidence of improper actions by his or her employer is known as a whistle-blower.

Question 25

If companies provide a code of conduct and ethical training, there is no need to hire a compliance officer or to provide an anonymous employee hotline to report unethical behaviour they have witnessed.

Question 26

In the real world of business, loyalty and honesty rarely conflict with one another.

Question 27

A conflict of interest exists when a person is faced with a decision in which an action will harm one individual or group while benefiting another.

Question 28

One of the first steps in the establishment of sound business ethics is to help employees identify ethical problems when they occur.

Question 29

Employees should always be loyal, regardless of the situation.

Question 30

A code of conduct is a formal document that identifies and evaluates all company activities related to social issues, such as conservation, employment practices, environmental protection, and philanthropy.

Question 31

In order to be ethical, employees should be loyal to their employers under all circumstances. True or false?

Question 32

Employers expect employees to generally act in the best interests of the organization.

Question 33

Adhering to deeply felt ethical principles in business situations is known as loyalty.

Question 34

Business education in colleges and universities plays the primary role in developing the ethical standards of future business leaders. True or false?

Question 35

Ethics compliance officers are responsible for conducting employee training programs that help identify potential fraud and abuse within the firm, investigating sexual harassment and discrimination charges, and monitoring any potential conflicts of interest.

Question 36

Integrity goes beyond truthfulness.

Question 37

A real estate agent who represents both the buyer and seller most likely faces a conflict of interest.

Question 38

Whistle-blowers always act out of self-interest.

Question 39

Loyal employees would never be whistle-blowers.

Question 40

On-the-job ethical dilemmas are very rare but can be quite significant.

Question 41

A company's ethical training for employees should always be developed and conducted in house. True or false?

Question 42

Although social responsibility in a business is commendable, most companies are NOT judged by their interactions within the community.

Question 43

If managers and supervisors fail to show ethical leadership, it is unrealistic to expect employees to behave ethically.

Question 44

The primary social responsibility of a company is to its customers.

Question 45

Formally stating that employees must NOT discriminate on the basis of race, gender, or age in their dealings with customers is something that could be found in a company code of conduct.

Question 46

A company's CEO alone determines the ethical climate of the business.

Question 47

A code of conduct rarely goes beyond stating the rules, laws, and regulations employees are expected to follow.

Question 48

Starbucks' effort to go green with recyclable cups is an example of social responsibility.

Question 49

Social audits conducted internally are of no value because they are always biased in favour of the company.

Question 50

A manager who doubles employee performance goals every quarter most likely will see an increase in the number of ethically questionable actions by employees.

Question 51

A social audit is used to measure a company's social responsibility performance.

Question 52

When businesses fail to operate in an acceptable manner, the law must step in to enforce good business practice. True or false?

Question 53

Social responsibility is management's acceptance of the obligation to consider societal well-being and consumer satisfaction as being equally important as profit when evaluating the firm's performance.

Question 54

Halting the production and sale of a potentially dangerous product, even if it hurts profits, is an example of ethical behaviour.

Question 55

Many ethical dilemmas involve gray areas that may require individuals to sort through several courses of actions, each with its own set of consequences.

Question 56

External groups often conduct their own evaluations of businesses, but firms typically ignore these reports in favour of internal evaluations.

Question 57

Many electric products contain toxins such as lead and mercury and are difficult to reuse or recycle.

Question 58

A code of conduct is part of the ethical awareness stage of ethical development.

Question 59

Corporate philanthropy is the notion that businesses should give back to the communities where they earn their profits.

Question 60

Social audits are informal business surveys that report customer satisfaction with a company's products.

Question 61

If employees of Patagonia are paid by the company to volunteer their time and skills in community activities, then the company is engaging in corporate philanthropy. True or false?

Question 62

Business ethics begins with ___.

A) the individual employee
B) the government
C) a firm's investors
D) a firm's customers

Question 63

Helping employees stop smoking is an example of a social responsibility revolving around public health.

Question 64

Consumerism is the concept that business must give consideration to employee wants and needs.

Question 65

When firms fail to be socially responsible, thousands of investors can suffer. True or false?

Question 66

Lauren complained to her employer about a sexually explicit calendar hanging on her co-worker's wall. Her employer must ask the co-worker to remove the calendar in order to avoid a claim of sexual harassment.

Question 67

Investors are generally unconcerned with whether a company is behaving ethically; instead, they only focus on whether or NOT it is making a profit.

Question 68

All publicly traded companies consistently set and meet high ethical standards.

Question 69

Sexual harassment is divided into two categories: pressure to comply with unwelcome advances for job security and a hostile work environment.

Question 70

Hewlett-Packard's use of new and recycled plastics in the manufacture of its scanners is an example of acting responsibly to satisfy societal demands.

Question 71

One goal of consumerism is for consumers to have access to enough education and production information to make responsible purchase decisions.

Question 72

Employers have a responsibility to their employees to provide a safe working environment.

Question 73

Companies which fail to follow high ethical standards often see their stock prices drop.

Question 74

A "green" product that claims to be environmentally friendly must be substantiated in accordance with guidelines presented by the Competition Bureau of Canada.

Question 75

Paying corporate taxes is an example of corporate philanthropy.

Question 76

Practicing sound business ethics automatically makes a company's operations sustainable. True or false?

Question 77

Environmental issues have become more important concerns of the public in recent years.

Question 78

A company removes a profitable product from the market because it may be dangerous. This company is demonstrating ___.

A) ethical behaviour
B) green marketing
C) conflict of interest
D) social welfare

Question 79

Money spent on social responsibility activities belongs to a company's shareholders and should NOT be used as such. This statement is an argument against social responsibility. True or false?

Question 80

The gap between what workers with college degrees earn and what those with high school degrees earn has decreased in recent years.