Deck 10: Ethical Problems of Organizations

Question 1

Despite Johnson & Johnson's best efforts to respond to its customers by pulling Tylenol off shelves,the product has never regained its market share.

Answer 1

False

Question 2

Only since Enron's collapse have ethicists and business professionals really been concerned about the increasing focus on "short-term" earnings.

Answer 2

False

Question 3

Reference: Matching Key Stakeholders and Regulatory Agencies
a)Guard rights of shareholders
b)Guard rights of consumers
c)Guard rights of employees
d)Guard rights of the community
The Federal Reserve Board

Answer 3

a

Question 4

Before the beginning of the twentieth century,consumers did not have the right to sue manufacturers for a defective product.

Question 5

Toyota,like Johnson & Johnson,halted production in response to its concerns for its customers.

Question 6

The real proportion of wrong-doers is probably quite small.

Question 7

Nothing will put a company out of business faster than offering a product that is dangerous,poorly produced,or of inferior quality.

Question 8

Because stakeholders' interests frequently do not overlap,an organization is able to focus on one stakeholder at a time.

Question 9

Reference: Matching Key Terms and Definitions
a)Stake
b)Primary stakeholder
c)Secondary stakeholder
Opinion formers,community,and authorities.

Question 10

In the past five-to-ten years,most lawsuits filed against pharmaceuticals are related to the companies' advertising and marketing practices.

Question 11

Reference: Matching Key Stakeholders and Regulatory Agencies
a)Guard rights of shareholders
b)Guard rights of consumers
c)Guard rights of employees
d)Guard rights of the community
The Federal Trade Commission

Question 12

Conflicts involving organizations are more damaging than those who involve individuals.

Question 13

Reference: Matching Key Terms and Definitions
a)Stake
b)Primary stakeholder
c)Secondary stakeholder
An interest,claim,or right to something.

Question 14

Reference: Matching Key Terms and Definitions
a)Stake
b)Primary stakeholder
c)Secondary stakeholder
Business partners,customers,and employees.

Question 15

Reference: Matching Key Stakeholders and Regulatory Agencies
a)Guard rights of shareholders
b)Guard rights of consumers
c)Guard rights of employees
d)Guard rights of the community
The Environmental Protection Agency (EPA)

Question 16

The definition of conflict for an organization is similar to that for an individual ;that is,if a stakeholder thinks that an organization's judgment is biased because of a relationship it has with another firm,a conflict could exist.

Question 17

Reference: Matching Key Stakeholders and Regulatory Agencies
a)Guard rights of shareholders
b)Guard rights of consumers
c)Guard rights of employees
d)Guard rights of the community
The Federal Communication Commission (FCC)

Question 18

Ethical disasters in corporations often start as small issues and it is either denial or mismanagement that cause seemingly minor situations to mushroom into huge legal,ethical,and public relations nightmares.

Question 19

One of the most common faults in ethical decision making is to ignore the long-term consequences of a decision.

Question 20

Reference: Matching Key Stakeholders and Regulatory Agencies
a)Guard rights of shareholders
b)Guard rights of consumers
c)Guard rights of employees
d)Guard rights of the community
Occupational Safety and Health Administration (OSHA)

Question 21

The idea that consumers have the right to safety,right to be heard,right to choose,and right to be informed came from ____________ in ________.

A)Theodore Roosevelt;1930.
B)The Food and Drug Act;1906.
C)John F.Kennedy;1962.
D)George W.Bush;2004.

Question 22

The pharmaceutical industry has found that advertising directly to the consumer minimizes problems experienced earlier with consumers regarding their confidence in products.

Question 23

Organizations have many ethical obligations to their employees including

A)right to privacy,right to a safe workplace,right to promotional opportunities
B)right to privacy,right to a safe workplace,right to freedom of speech
C)right to a safe workplace,right to freedom of speech,right to promotional opportunities
D)right to a safe workplace,right to freedom of speech,right to three weeks vacation
E)right to fair treatment,right of privacy,right to c-level opportunities if they earned their MBA

Question 24

Companies face a myriad of stakeholders that often have conflicting interests.Briefly describe a company or an incident that demonstrates how stakeholders' conflicting interests can lead to unethical behavior.

Question 25

In ethical decision-making and particularly in cases dealing with product safety,firms are best served when they consider the long-term consequences of a decision.

Question 26

In a classic example of failing to protect its employees,___________ knew asbestos caused cancer as early as 1930.However,the company lied to its employees and used several tactics to cover-up the product's effects.

A)Johnson & Johnson
B)A)H.Robbins
C)Manville Corporation
D)McWane,Inc.

Question 27

The due care theory involves at least the elements set out below.

A)products and services meet all government regulations and specifications
B)ability to return the product if dissatisfied for any reason
C)products should be inspected regularly for quality
D)manufacturers should institute a system to recall products that prove dangerous after distribution
E)a & b
F)a,c,& d
G)all of the above

Question 28

For the public,the top three factors in corporate reputation are :

A)transparent and honest practices,trustworthiness,and high-quality products and services
B)transparent and honest practices,community philanthropy,and high quality products and services
C)trustworthiness,high-quality products,and a no-layoff policy
D)trustworthiness,high-quality products,and a 90-day customer return policy

Question 29

In this example of a conflict of interest,________ conducted a series of off-the-books partnerships that were used to hide the organization's debt and inflate its stock price.The partnerships were managed by the company's executives who stood to profit the most from the transactions.

A)Merrill Lynch
B)Enron
C)Citicorp
D)Adelphia

Question 30

In a 2002 poll,_________ ranked last on the "who do you trust scale."

A)Lawyers
B)Politicians
C)Chief executive officers
D)Accountants

Question 31

In this classic example of a company treating its employees responsibly,____________ was the first company to offer company-paid vacations,stock ownership plans,employee suggestion program,and the guaranteed employment plan.This company has not laid off employees in the United States since 1948.

A)McWane,Inc.
B)Lincoln Electric
C)Scott Paper Company
D)Manville Corporation