Question 1

Which of the following is the greatest challenge in meeting a firm's social responsibility?

Accepted Answer

The greatest challenge in meeting a firm's social responsibility is determining how to respond to the interests of one part of society (e.g., investors) which conflict with the needs of another part of society (e.g., customers). This requires balancing competing demands and finding solutions that satisfy all stakeholders. Determining when to conduct ethical training or social audits and determining the contents of the code of ethics are important considerations but not the greatest challenge. Knowing what social responsibility is may be a challenge for some firms, but it is not as significant as the challenge of balancing stakeholder interests.

Question 2

When a food company lists the ingredients that make up their products,which consumer right is it addressing?

Accepted Answer

When a food company lists the ingredients that make up their products, they are addressing the consumer's right to be informed. This right ensures that consumers have access to accurate and truthful information about the products they purchase, including ingredients, nutritional value, and potential allergens or other hazards.

Question 3

Consumerism is

Accepted Answer

Consumerism is the movement that seeks to protect and expand the rights of consumers in their dealings with businesses, including the right to be informed about products, the right to choose products, and the right to safe products. While A, C, D, and E are all aspects of consumer rights, they do not fully define consumerism as a movement.

Question 4

Which consumer right is violated by a company that restricts and interferes with competition?

Accepted Answer

The right to choose what they buy is violated when a company restricts and interferes with competition, as it limits consumers' options and freedom to select from a variety of products or services.

Question 5

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

Accepted Answer

Consumerism is social activism that is dedicated to protecting the rights of consumers in their dealings with businesses. Whistle-blowing refers to exposing illegal or unethical practices within an organization. Kiting is a fraudulent activity related to check writing. Price gouging refers to charging excessively high prices for goods and services during times of crisis or demand. Collusion refers to a secret agreement between two or more parties for illegal or unethical purposes.

Question 6

The CEO of Perry's Pizzeria,a rapidly growing restaurant chain,is committed to a high level of corporate social responsibility along with continued business success.Which action by the CEO would most enhance the company's reputation for social responsibility?

Accepted Answer

Using more nutritious but more expensive ingredients would demonstrate a commitment to social responsibility by prioritizing the health of customers over cost-cutting measures. This action aligns with the CEO's commitment to social responsibility and would likely be viewed positively by stakeholders. The other options prioritize profit over social responsibility and could damage the company's reputation.

Question 7

Jordan is a recent college graduate with a degree in computer programming.He has just begun his first full-time job and is excited to apply the skills that he worked so hard to acquire.Though he excelled as a student,Jordan is anxious about how successful he will be as an employee.When an opportunity unexpectedly presents itself to take credit for a brilliant software program that someone else wrote,Jordan does not resist and claims the program as his own.Which of the following would least likely also happen along with Jordan's decision?

Accepted Answer

The company's ethics committee agreeing that employees should not be expected to tell the truth if honesty is not part of their personal ethics is least likely to happen, as it contradicts the fundamental principles of most organizational ethics policies.

Question 8

Jana and Kate are the owners of an upscale jewelry boutique that offers unique and much-desired accessories in a wealthy neighborhood.Jana and Kate are concerned,however,that the company's commitment to social responsibility has begun to diminish in various respects.How would this most likely be evident?

Accepted Answer

A diminishing commitment to social responsibility would likely be evident if the health of employees and their children is starting to suffer, as this indicates a lack of care for employee welfare.

Question 9

Which of the following questions would a company dedicated to increasing its level of corporate social responsibility be least likely to ask?

Accepted Answer

A company dedicated to increasing its level of corporate social responsibility would not ask a question about potentially laying off employees in order to increase profits. This question does not align with the goal of increasing social responsibility, as it would negatively impact the well-being of the company's workforce.

Question 10

All of the following groups are organizational stakeholders except

Accepted Answer

Competitors are not considered organizational stakeholders as they do not have a direct interest or investment in the organization. Stakeholders typically include groups like employees, investors, and customers who are directly affected by the organization's actions.

Question 11

Social return on investment (SROI)helps companies to

Accepted Answer

Social return on investment (SROI) focuses on measuring the social, environmental, and economic impacts that a company's activities have on their stakeholders. It helps companies to understand, manage, and communicate the social value of their activities, which is important for building trust and reputation with stakeholders. Improving financial return on investment, increasing employee satisfaction, and improving ethics within the company are not the primary focus of SROI. While SROI can help companies comply with government regulations on social responsibility, this is not its primary purpose.

Question 12

Which of the following illustrates consumers' rights to safe products?

Accepted Answer

Consumers have the right to safe products, which includes the absence of hazards that could cause harm. A vacuum cleaner must be free of electrical hazards to be considered safe for use in a consumer's home.

Question 13

With respect to the issue of counterfeit brands,it is correct to say that

Accepted Answer

None of the statements are true. Counterfeit brands continue to be a significant problem in various industries, including pharmaceuticals and electronics. The sale of counterfeit products not only damages the reputation and financial performance of the legitimate brand owner but can also be unsafe for consumers who unknowingly purchase fake goods. Additionally, buying counterfeit goods supports illegal activities and is not beneficial to the economy. It can also be difficult for consumers to distinguish between counterfeit and genuine products.

Question 14

Atlas Corp.offers a money back guarantee on products and provides complaint hot lines for its customers.This is an example of which of the following consumer rights?

Accepted Answer

The right to be heard includes the ability for consumers to voice their complaints and have them addressed by the company. Atlas Corp.'s provision of complaint hotlines for customers aligns with this consumer right. The other options, such as right to be informed or right to low prices, are not directly related to Atlas Corp.'s money back guarantee and complaint hotlines.

Question 15

Why did the fair-trade movement develop?

Accepted Answer

The fair-trade movement developed primarily in response to exploitation of workers in developing countries who were not receiving fair payment for their products, such as coffee. Fair trade aims to establish better trading conditions for producers in developing countries, advocating for higher prices and improved social and environmental standards.

Question 16

A chocolate company with a primary emphasis on ethical sourcing and procurement would most likely avoid which of the following?

Accepted Answer

The answer of A chocolate company with a primary emphasis...

Question 17

Ian is the president of a medium-sized manufacturing company.He wants to ensure that his company behaves in a socially responsible way.Which of the following is the greatest challenge facing Ian?

Accepted Answer

The greatest challenge facing Ian is determining how to respond to the interests of different parts of society that may conflict with each other. This can be a difficult balancing act and requires careful consideration and decision-making to ensure that the company behaves in a socially responsible way. The other options are important considerations for social responsibility, but not as significant as addressing conflicting interests in society.

Question 18

The recent surge of products being called "light" led to an investigation by government agencies.This illustrates concerns about which of the basic consumer rights?

Accepted Answer

The investigation into products labeled "light" suggests concerns about the right to be informed, as consumers have a right to accurate information about the products they are purchasing.

Question 19

When two or more firms agree to collaborate on wrongful acts,it is referred to as

Accepted Answer

Collusion refers to an agreement between two or more firms to work together to achieve a common goal, which is often illegal or unethical. This can include price-fixing, bid-rigging, or market allocation. It is considered a violation of antitrust laws and can result in fines and other legal penalties. Consumerism refers to the movement for consumers' rights and protections. Market segmentation refers to dividing a market into smaller groups based on specific characteristics. Oligopoly refers to a market structure in which a few large firms dominate the market. Monopoly refers to a market structure in which one firm controls the entire market.

Question 20

The Canadian Competition Bureau investigated possible ________ of bread by Loblaws,Sobeys and Metro.

Accepted Answer

The Canadian Competition Bureau investigated possible price fixing of bread by Loblaws, Sobeys, and Metro, which involves an agreement between competitors to set prices at a certain level.

Quiz 3: Conducting Business Ethically and Responsibly