Question 1

The acceptability of behavior of a business rests solely with the business itself.

Accepted Answer

The acceptability of behavior in business is determined by not only the organization, but also stakeholders such as customers, competitors, government regulators, interest groups, and the public, as well as each individual's personal principles and values.

Question 2

When it comes to ethical behavior, co-workers and superiors exert significant control over one's choices at work through authority and example.

Accepted Answer

While you have great control over your personal ethics outside the workplace, your co-workers and superiors exert significant control over your choices at work through authority and example. In fact, the activities and examples set by co-workers, along with the rules and policies established by the firm, are critical in gaining consistent ethical compliance in an organization.

Question 3

A business must choose to be either profitable or socially responsible; they cannot be both.

Accepted Answer

There is much evidence that social responsibility is associated with improved business performance. Consumers are refusing to buy from businesses that receive publicity about misconduct. A number of studies have found a direct relationship between social responsibility and profitability, as well as a link that exists between employee commitment and customer loyalty-two major concerns of any firm trying to increase profits.

Question 4

Which of the following best exemplifies a company with a strong ethical culture?

Accepted Answer

To truly create an ethical culture, managers must show a strong commitment to ethics and compliance. This "tone at the top"
requires top managers to acknowledge their own role in supporting ethics and compliance, clearly communicate company expectations for ethical behavior to all employees, educate all managers and supervisors in the business about the company's ethics policies, and train managers and employees on what to do if an ethics crisis occurs.

Question 5

Which statement is true regarding business ethics and social responsibility?

Accepted Answer

Many consumers and social advocates believe that businesses should not only make a profit but also consider the social implications of their activities. Socially responsible businesses win the trust and respect of their employees, customers, and society and, in the long run, increase profits.

Question 6

A local landscaping company donates and plants a tree in the community for every new client that uses its landscaping design services. This exhibits the company's

Accepted Answer

Social responsibility is a business's obligation to maximize its positive impact and minimize its negative impact on society. Donating and planting trees shows this company's social responsibility. Businesses should not only make a profit but also consider the social implications of their activities.

Question 7

Premier Products is well-received by the community in which it operates. Every year Premier hosts a charity fundraiser to support local charities; its employees regularly volunteer within the community and the company is committed to using sustainable manufacturing processes. The actions taken by Premier Products best exemplify

Accepted Answer

Social responsibility refers to a business's obligation to maximize its positive impact and minimize its negative impact on society.

Question 8

How do the terms business ethics and social responsibility differ from each other?

Accepted Answer

Although many people use the terms social responsibility and ethics interchangeably, they do not mean the same thing. Business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire business's activities on society.

Question 9

Which law reformed the financial industry and offered consumers protection against complex and/or deceptive financial products?

Accepted Answer

After the financial crisis occurred in the most recent recession, the Dodd-Frank Act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products.

Question 10

Which statement is true of how the mass media reports on the ethical conduct of businesses?

Accepted Answer

The mass media frequently reports about firms that engage in misconduct related to bribery, fraud, and unsafe products. However, the good ethical conduct of the vast majority of firms is not reported as often. Therefore, the public often gets the impression that misconduct is more widespread than it is in reality.

Question 11

Tracor Industries decided to buy less expensive materials from a foreign supplier that resulted in a significant reduction in the quality of its product. As a result, company sales dropped, many retailers refused to carry the product, and consumers left negative reviews online about the product. This is an example of

Accepted Answer

Regardless of what an individual believes about a particular action, if society judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals. Ethical conduct builds trust among individuals and in business relationships, which validates and promotes confidence in business relationships. Establishing trust and confidence is much more difficult in organizations that have reputations for acting unethically.

Question 12

After a major horse race, it was discovered that the winner had drugged his horse to make it run faster. Even though there was not a specific rule against drugging horses, the horse's owner, trainer, and jockey were banned from the racing industry. This exemplifies how

Accepted Answer

This example shows how negative judgment directly affects an organization's ability to achieve its business goals. Whether made in science, politics, sports, or business, most decisions are judged as right or wrong, ethical or unethical.

Question 13

Daniel notices that one of his colleagues arrives late and leaves early from work every day. In deciding whether or not to report this behavior, what must he do first?

Accepted Answer

Employees need to know when to rely on their organizations' policies and codes of ethics or have discussions with co-workers or managers on appropriate conduct. Ethical decision making is not always easy because there are always gray areas that create dilemmas, no matter how decisions are made. The question of whether or not to report his colleague requires Daniel to understand his company's policy regarding the ethics of his colleague's choice and decide whether to ask for guidance.

Question 14

Joylene and Kurt are competing for a promotion. Hoping to sway her manager to promote her over Kurt, Joylene gives her manager an expensive bottle of wine. This is an example of

Accepted Answer

This is an example of bribery. Bribes are payments, gifts, or special favors intended to influence the outcome of a decision.

Question 15

All of the following are common areas of misconduct observed in the workplace EXCEPT

Accepted Answer

The National Business Ethics Survey found that workers witness many instances of ethical misconduct in their organizations, including misuse of company time, abusive and intimidating behavior, misuse of company resources, and conflict of interest.

Question 16

What is true of misusing company time?

Accepted Answer

Theft of time is a common area of misconduct observed in the workplace. Time theft costs can be difficult to measure but are estimated to cost companies hundreds of billions of dollars annually. The average employee steals 4.5 hours a week with late arrivals, leaving early, long lunch breaks, inappropriate sick days, excessive socializing, and engaging in personal activities. These activities add up to lost productivity and profits.

Question 17

Felix speaks fluent Spanish, and English is his second language. When communicating with his colleagues, Amanda and Joe, he uses words that are normal in his language, but they consider them profane. What does this exhibit?

Accepted Answer

Abusive behavior is difficult to assess and manage because of diversity in culture and lifestyle. If you are using words that are normal in your language but that others consider to be profanity, intent can determine whether you've insulted, abused, or disrespected them or if it was simply a mistake.

Question 18

Marissa needs William's help to resolve an urgent work issue. She has emailed and called him several times, but William doesn't respond to any of her communications. William's behavior is an example of

Accepted Answer

Failing to communicate or return communication is an example of bullying.

Question 19

Physical threats, ignoring someone, yelling, and the use of profanity fall under which type of organizational misconduct?

Accepted Answer

Abusive or intimidating behavior is the most common ethical problem for employees. These concepts can mean anything from physical threats, false accusations, profanity, insults, yelling, harshness, and unreasonableness to ignoring someone or simply being annoying.

Question 20

Spending an excessive amount of time on personal e-mails, submitting personal expenses on company expense reports, and using the company copier for personal use are all examples of

Accepted Answer

Examples of the misuse of company resources might include spending an excessive amount of time on personal e-mails, submitting personal expenses on company expense reports, or using the company copier for personal use.

Quiz 2: Business Ethics and Social Responsibility