Question 1

In which of the following instances does a social responsibility problem exist?

Accepted Answer

The answer of In which of the following instances does...

Question 2

Vocam Inc.,a Canadian business training company,is currently marketing a training video designed to teach companies how to address social media and email etiquette. Which of the following is an example of a secondary stakeholder group for Vocam?

Accepted Answer

Secondary stakeholders are those who do not have a direct economic exchange with the company but can influence or be influenced by the company's actions. Business magazines that run ads for the training video are secondary stakeholders because they are not directly involved in the economic transactions of selling or using the video but can influence its market presence.

Question 3

Which of the following terms best applies to the expectations that a company will voluntarily serve a social role beyond its economic,legal,and ethical responsibilities?

Accepted Answer

The term "discretionary responsibilities" best applies to the expectations that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities. Discretionary responsibilities are not required by any law, regulation or ethical standards, but are rather the extra social responsibilities that a company takes on out of choice. Examples of discretionary responsibilities include philanthropy, community involvement, and environmentally friendly practices.

Question 4

When media informed the public that Nestlé had access to groundwater reservoirs at a very low price,creating significant public interest,Nestlé responded by acknowledging that they shared the public's "concern" for water sustainability. Which kind of strategy did Nestlé use to respond to its social responsibility problems?

Accepted Answer

Nestlé used a reactive strategy because they responded to the public's concern after the media informed them about the issue.

Question 5

Canada is one of a few nations globally that permits seal hunting. It is illegal to hunt newborn seals in Canada,but the fur of newborn seals is still sold to some buyers. If companies buy this fur,what kind of responsibility to society would they be ignoring?

Accepted Answer

The answer of Canada is one of a few nations...

Question 6

A Canadian metals broker advertises "95 percent of orders shipped from stock" even though the company has no warehouses and no inventory. When questioned about the falseness of the ad,the broker responded,"We do ship 95 percent of our orders from stock,but from suppliers' stocks,not ours." Which type of strategy did the broker use to respond to the ethical question?

Accepted Answer

The broker used a reactive strategy by responding to the ethical question after the fact, without taking proactive steps to address the misleading nature of the advertisement.

Question 7

GlaxoSmithKline (GSK)has been making anti-AIDS drugs such as Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. At which level of social responsibility was GSK acting by providing the drugs at a fraction of their usual costs?

Accepted Answer

GSK was not obligated to provide the drugs at a reduced cost, as it was not required by law or regulations. This act was an example of discretionary social responsibility, where the company voluntarily takes action to benefit society beyond what is required by law.

Question 8

The Rainforest Action Network launched a bruising PR campaign against Home Depot to stop it from selling old-growth lumber. After two years of bad publicity and resistance to new store locations,Home Depot surrendered. Today,its suppliers work with environmental and forestry groups to certify that their wood products are not from endangered areas. What type of strategy did Home Depot use to respond to demands that it be socially responsible?

Accepted Answer

Home Depot used an accommodative strategy, which involved working with environmental and forestry groups to ensure that their wood products were sourced responsibly. This was a response to demands for social responsibility from the Rainforest Action Network and other groups.

Question 9

Gas prices in Belleville and Kingston,ON were allegedly fixed in an anti-competitive manner during 2007,and companies such as Pioneer Energy,Canadian Tire,Mr. Gas,and Sunoco were investigated. Which responsibilities did these companies allegedly ignore?

Accepted Answer

The companies allegedly ignored their legal responsibilities by engaging in anti-competitive behavior that fixed gas prices in an illegal manner. They may have also violated antitrust laws and regulations.

Question 10

A company faced with a social problem decides to demonstrate the greatest possible willingness to meet or exceed society's expectations of how it should respond. Which type of strategy is the company implementing?

Accepted Answer

A proactive strategy involves anticipating social expectations and taking action to address them before they become a problem. By demonstrating a willingness to meet or exceed society's expectations, the company is taking a proactive approach to the social problem.

Question 11

Nestlé is facing boycotts from an organization called The Council of Canadians as a result of Nestlé's rights to use groundwater reservoirs for a very low price. Which type of stakeholder is The Council of Canadians with respect to Nestlé?

Accepted Answer

The Council of Canadians is a secondary stakeholder for Nestlé, as they are not directly involved in the company's operations or transactions, but are affected by the company's actions and have a vested interest in the issue of water rights for communities.

Question 12

Which of the following social responsiveness strategies could be considered a public relations approach?

Accepted Answer

The answer of Which of the following social responsiveness strategies...

Question 13

Gas prices in Belleville and Kingston,ON were allegedly fixed in an anti-competitive manner during 2007,and a settlement,admitting no wrong-doing,was reached with Pioneer Energy,Canadian Tire,Mr. Gas and Sunoco. Which type of strategy did the four firms implement?

Accepted Answer

The four firms reached a settlement, admitting no wrong-doing, indicating a reactive strategy where they responded to the allegations rather than implementing a proactive or accommodative strategy. The offensive strategy involves taking aggressive actions to gain a competitive advantage, and accommodative strategy involves making changes to address the issue and satisfy stakeholders.

Question 14

A consumer advocacy group is critical of ads by a delivery company that claim its priority service is a low-cost,two-day service while failing to disclose that their regular service generally reaches the destination just as quickly and for a tenth of the cost. The consumer advocacy group wants the delivery company to take responsibility for its actions and do what is right. What term defines this type of responsibility?

Accepted Answer

The type of responsibility being referred to is ethical responsibility, which involves doing what is morally right and just, even if it may not be required by law or common practice. The consumer advocacy group is calling for the delivery company to act ethically by being transparent and truthful in its advertising.

Question 15

Which type of strategy is a company implementing if it chooses to accept responsibility for a problem and does all that society expects to solve the problem?

Accepted Answer

Accepting responsibility for a problem and doing all that society expects to solve the problem is an example of an accommodative strategy. This strategy involves acknowledging the problem and taking action to address it in a way that meets stakeholders' expectations.

Question 16

Which type of responsibility can companies fail to fulfill and still be considered ethical?

Accepted Answer

Discretionary responsibilities are voluntary actions that companies can take to further benefit society. While not fulfilling these responsibilities may not be ideal, it does not necessarily make a company unethical as they are not legally required to do so. Legal responsibilities are mandatory and failure to fulfill them would be considered unethical behavior. Fiscal responsibilities deal with financial obligations such as paying taxes and fulfilling contracts, and failure to fulfill these obligations would also be considered unethical. Overt responsibility is not a recognized concept in business ethics.

Question 17

Lever's most successful product in India is Fair & Lovely,a skin-whitening agent that is sold to dark-skinned women in India to help them conform to their culture's definition of beauty. Lever is emphasizing one type of responsibility,to make a profit,and ignoring another type of responsibility,which is to help women realize that appearance is superficial. What are these two types of responsibilities,respectively?

Accepted Answer

Lever is focusing on economic responsibility by making a profit and ignoring discretionary responsibility, which involves contributing to societal well-being beyond economic and legal obligations.

Question 18

Which of the following represents the principle of long-term self-interest?

Accepted Answer

The answer of Which of the following represents the principle...

Question 19

Which of the following represents the audience for Warren Buffett's formulation of the principle of personal virtue-the "Front Page of the Newspaper Test"?

Accepted Answer

The "Front Page of the Newspaper Test" by Warren Buffett suggests that before making a decision, one should consider how they would feel about the decision if it were reported on the front page of a newspaper to their spouse, children, and friends. This principle is aimed at encouraging personal integrity and ethical decision-making by considering the impact of one's actions on those closest to them.

Question 20

GlaxoSmithKline (GSK)has been making anti-AIDS drugs such as Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. Still,it managed to outrage AIDS prevention groups. GSK decided to use the patent protection rules of the World Trade Organization (WTO)to take action against governments importing lower-cost drug versions. At which level of social responsibility was GSK acting by using the WTO's regulation?

Accepted Answer

The answer of GlaxoSmithKline (GSK)has been making anti-AIDS drugs such...

Quiz 3: Ethics and Social Responsibility