Question 1

Tiffany's Taffy Shop is known for its commitment to corporate social responsibility. However, Tiffany has learned that an employee has been unknowingly ordering candy wrappers that are harmful to the environment. How could she best recover from this ethical lapse?

Accepted Answer

The best way to recover from this ethical lapse is to seek ways to remedy any harm that may have been caused. It is important to take responsibility for the mistake and work towards correcting it rather than punishing the employee or decreasing the amount of taffy sold. Ethics training for all employees could also be helpful in preventing similar situations in the future. Switching to more environmentally friendly candy wrappers would also be a positive step towards corporate social responsibility.

Question 2

Battleford Corp. is in the processes of setting up a system to manage its social responsibility program. What should they do first?

Accepted Answer

Before implementing a social responsibility program, it is essential to ensure that support is evident from top management. Without proper support and commitment, the program might not be successful. Therefore, the first thing that Battleford Corp. should do is make sure that top management is committed to the initiative.

Question 3

The fundamental goal of sustainable development is to

Accepted Answer

The fundamental goal of sustainable development is to pursue activities that meet current needs, but which will not put future generations at a disadvantage when they attempt to meet their needs. This means that economic, social, and environmental factors should be taken into account to ensure that present and future generations can enjoy a high quality of life. In other words, sustainable development aims to balance the needs of the present with the needs of the future.

Question 4

At the end of an especially good year, a company decides to give bonuses to its sales employees. Two salespersons are included: Tracy shows a better-than-average sales record, whereas Colin was only an average salesperson. Colin has a reputation for being a straight shooter who complies strictly with the company's ethical code. On the other hand, Tracy made some deals that, as co-workers confided to middle managers, were "on the edge" of dishonesty. When the company's ethics panel reviewed one such deal, it was found to have been compliant with the letter of the stated code. Nevertheless, the financial officer recommends that both employees be given the same bonus. Which of the following, if true, most strongly supports the financial officer's position?

Accepted Answer

The financial officer's recommendation to give both employees the same bonus despite differences in their sales records and adherence to the company's ethical code is most strongly supported by the concern about the firm's tolerance of predatory practices and their impact on workplace morale. This suggests that rewarding ethical behavior equally, regardless of sales performance, could address these concerns and improve workplace morale.

Question 5

In the 2015 Global 100 list of the most sustainable corporations in the world, which company ranked first?

Accepted Answer

Biogen Idec was ranked first in the 2015 Global 100 list of the most sustainable corporations in the world, recognized for its efforts in reducing carbon intensity and water use, among other sustainability measures.

Question 6

The ________ describes the systematic analysis of a firm's success in using funds that it has earmarked for its social responsibility goals.

Accepted Answer

The term that best describes the systematic analysis of a firm's success in using funds that it has earmarked for its social responsibility goals is social audit.

Question 7

Lance owns a small business where he sells his own paintings. He really wants to help aspiring artists, but hasn't assisted very many of them to this point. What is the most likely reason for this?

Accepted Answer

The most likely reason Lance hasn't assisted many aspiring artists is that he doesn't have the time or money to help. As the owner of a small business, resources can be limited, making it challenging to extend support beyond the business's immediate needs.

Question 8

Sustainable development

Accepted Answer

Sustainable development refers to pursuing activities that meet current needs without compromising the ability of future generations to meet their needs. It involves finding a balance between economic growth, social development, and environmental protection. It is an essential goal for companies to promote responsible and environmentally friendly business practices while ensuring long-term economic viability.

Question 9

At the end of an especially good year, a company decides to give bonuses to its sales employees. Two salespersons are included: Tracy shows a better-than-average sales record, whereas Colin was only an average salesperson. Colin has a reputation for being a straight shooter who complies strictly with the company's ethical code. On the other hand, Tracy made some deals that, as co-workers confided to middle managers, were "on the edge" of dishonesty. When the company's ethics panel reviewed one such deal, it was found to have been compliant with the letter of the stated code. Nevertheless, the financial officer recommends that both employees be given the same bonus. Which of the following, if true, might strengthen the ethical case for giving a larger bonus for Tracy?

Accepted Answer

B) strengthens the ethical case for giving a larger bonus to Tracy by indicating that the company has a policy of tying bonuses strictly to sales records, which would justify a larger bonus for Tracy due to her better-than-average sales record.

Question 10

Jays Inc. dumped toxic chemicals in the river next to their factory. Upon being caught, Jays Inc. not only denied their wrongdoings, they went to great lengths to hide their behaviour. Jays Inc. is taking a(n) ________ stance to social responsibility.

Accepted Answer

Jays Inc. not only denied their wrongdoings but also attempted to hide their behaviour. This indicates that they are not willing to take any measures to address the issue, but rather obstructing any attempts to hold them accountable. Thus, Jays Inc. is taking an obstructionist stance to social responsibility.

Question 11

What is the purpose of a social audit?

Accepted Answer

The purpose of a social audit is to conduct a systematic analysis of how a firm has used funds that are earmarked for social programs, including evaluating the effectiveness and impact of those programs. This helps ensure that the company is meeting its social responsibility commitments and using its resources in the most effective way possible.

Question 12

Steve Beatty, the head salesperson of a computer company, contracts with a supplier for technical equipment. Just before the winter holiday, a greeting card comes to his home address from the president of the supplier. In it, he finds a Best Buy gift card worth $500, with a note that says, "Go buy some toys for the kids." His children are excited, because they had been looking forward to getting some newly released video game equipment. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use. It does not specifically say that gifts for family members are included. He decides to keep the card.
Which of the following, if true, strengthens Beatty's ethical position?

Accepted Answer

The fact that the president of the supplier is Beatty's father-in-law and the gift is intended for his grandchildren makes the gift more of a personal family gesture rather than a professional bribe or unethical incentive, which could strengthen Beatty's ethical position by framing the gift within a personal, familial context rather than a professional one.

Question 13

The top management level at Brown Corp. has already publicly stated its commitment to being socially responsible. What is the next action that Brown Corp. needs to take?

Accepted Answer

The answer of The top management level at Brown Corp....

Question 14

A firm is considering opening a new plant in an existing building at a business park. It is located in the middle of a coal-producing region, which remains visibly blighted by the effects of strip mining. The plant's heating system is based on coal heat, which is locally produced and relatively cheap, reducing the plant's operating expenses significantly. Company engineers note that the plant's roof is ideal for solar panels, which would reduce the firm's future dependence on coal, nuclear, and other conventional sources of energy. However, the cost of installing the panels is considerable and would mean that the new plant would not return a profit to the company for several years. The CEO feels that the panels should be installed.
Which of the following, if true, strengthens the ethical standing of the CEO's position?

Accepted Answer

The commitment to "green" and sustainable energy use would lower the company's emissions locally and support the development of an alternative power industry, aligning with ethical considerations for environmental responsibility.

Question 15

Cartier Partners Financial Services Inc. provides the local swim team with a cash donation to help pay for the swim meet each year, but the team has to make its case to the company each year. Cartier's stance to social responsibility is

Accepted Answer

Cartier Partners Financial Services Inc.'s stance to social responsibility is accommodative because although they do provide a cash donation to the local swim team, they require the team to make its case to them each year, indicating that they are receptive to supporting the community but only on their terms.

Question 16

What is triple bottom line reporting?

Accepted Answer

Triple bottom line reporting measures the social, environmental, and economic performance of a company. It goes beyond just financial performance and considers the impact a company has on society and the environment as well.

Question 17

Steve Beatty, the head salesperson of a computer company, contracts with a supplier for technical equipment. Just before the winter holiday, a greeting card comes to his home address from the president of the supplier. In it, he finds a Best Buy gift card worth $500, with a note that says, "Go buy some toys for the kids." His children are excited, because they had been looking forward to getting some newly released video game equipment. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use. It does not specifically say that gifts for family members are included. He decides to keep the card.
Which of the following, if true, most clearly makes Beatty's action professionally unsupportable?

Accepted Answer

Beatty's action is professionally unsupportable because his work contract explicitly states that he must report all gifts from people associated with firms with which they do business. Therefore, he is violating company policy by not reporting the gift card to his employer. Additionally, even though the code of ethics does not specifically mention gifts for family members, it still cautions against accepting gifts for personal use, which makes Beatty's action ethically questionable. The other options either do not provide strong arguments against Beatty's action or are unrelated to the situation.

Question 18

The Lexington Corporation's mission statement shows a primary commitment to compassionately improve the lives of elderly citizens. Which of the following is least likely to be true with respect to the company's ethical code?

Accepted Answer

The company's mission statement emphasizes the improvement of the lives of the elderly, and since elderly citizens are expected and required to contribute to society may contradict this mission statement or ethical code.

Question 19

A firm is considering opening a new plant in an existing building at a business park. It is located in the middle of a coal-producing region, which remains visibly blighted by the effects of strip mining. The plant's heating system is based on coal heat, which is locally produced and relatively cheap, reducing the plant's operating expenses significantly. Company engineers note that the plant's roof is ideal for solar panels, which would reduce the firm's future dependence on coal, nuclear, and other conventional sources of energy. However, the cost of installing the panels is considerable and would mean that the new plant would not return a profit to the company for several years. The CEO feels that the panels should be installed.
Which of the following, if true, tends to compromise the ethical standing of the CEO's position?

Accepted Answer

The CEO's decision to purchase solar panels from her grandson's company suggests a conflict of interest and potential nepotism, compromising the ethical standing of the decision. Choices A, C, D, and E are not directly related to the CEO's decision to install solar panels and do not compromise the ethical standing of the decision.

Question 20

Owners of small business firms face the same type of social concerns as larger firms, but

Accepted Answer

Owners of small business firms face the same type of social concerns as larger firms, but on a smaller scale. They have to deal with social concerns such as employee welfare, customer satisfaction, environmental issues, and community involvement, but the magnitude of these concerns is smaller in comparison to larger firms. However, owners of small businesses may have to handle these concerns with fewer resources and a limited budget.

Quiz 3: Conducting Business Ethically and Responsibly