Question 1

After a firm has identified the various stakeholders and their issues and gathered the available data,all parties relevant to the decision should engage in brainstorming and evaluation of alternatives._________________ then review and refine these alternatives,and choose a course of action.

Accepted Answer

The answer of After a firm has identified the various...

Question 2

A new law in South Carolina makes it illegal for people under the age of 18 to smoke cigarettes.Previously,the law banned sales of cigarettes to anyone under age 18,but not smoking.Which of the following types of companies would be unlikely to have to incorporate this change into the Ethical Decision-Making Framework?

Accepted Answer

Since the new law affects the act of smoking, all establishments where smoking is allowed (restaurants, dance clubs, bars) and where cigarettes are sold (convenience stores) would have to incorporate this change into their ethical decision-making framework.

Question 3

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision making situation,______________ should engage in brainstorming and evaluation of alternatives.

Accepted Answer

All parties relevant to the decision should engage in brainstorming and evaluation of alternatives in order to ensure that all perspectives and potential consequences are considered. This includes stakeholders, elected officials, customers, employees, and any other individuals or groups with a vested interest in the decision.

Question 4

For his class in ethics,Isaac examined the practices of a number of nationally focused and international firms to determine how ethics and corporate social responsibility were being practiced.He found:

Accepted Answer

Isaac found that all of the options were possible outcomes in his examination of firms' practices in ethics and corporate social responsibility. Firms could be both ethical and socially responsible or they could be ethical but not socially responsible. Additionally, some firms could be neither ethical nor socially responsible but still be part of the business community. Furthermore, some firms could have questionable ethical practices but still donate money to socially responsible causes.

Question 5

Garrett has just purchased a beer distributorship.He wants to increase the visibility of his firm in local markets,but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages.According to the Framework for Ethical Decision-Making,the first thing Garrett should do is to:

Accepted Answer

The answer of Garrett has just purchased a beer distributorship.He...

Question 6

Ironically,while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit,the company was a major donor to Houston area charities.Enron had unethical business practices but was also:

Accepted Answer

Enron's charitable donations were an example of the company's commitment to corporate social responsibility, which is the idea that businesses should have a positive impact on society beyond just making profits. Despite the unethical business practices of Enron's leaders, the company's charitable donations show that they also recognized the importance of giving back to the community.

Question 7

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories.The firm has identified the various stakeholders and their issues and gathered the available data.Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives.Management reviewed and refined the alternatives,and then chose a course of action.If the managers are not confident about the decision,they should:

Accepted Answer

If the managers are not confident about the decision, they should re-examine their alternatives. This will ensure that they have thoroughly evaluated all possible options and chosen the best course of action. Lowering the offering price for the competing firm or choosing the least risky option may not necessarily resolve the issue of lack of confidence in the decision. Consulting customers can also be helpful, but it may not address the issue of confidence in the decision-making process. Therefore, re-examining the alternatives is the best choice in this scenario.

Question 8

The Harvest County School Board is concerned about deteriorating school facilities,combined with a shrinking budget.The board began by studying the issue,and then identified parents,children,teachers,staff,and taxpayers as groups who have a vested interest in the problem.The school board has listened to each group's concerns.In the Ethical Decision-Making Framework,its next action should be to:

Accepted Answer

The next action in the Ethical Decision-Making Framework should be to engage in brainstorming and evaluate alternatives. This will allow the school board to come up with potential solutions to the problem and then evaluate them based on their feasibility, effectiveness, and potential impact on the various stakeholders. Once the alternatives have been evaluated, the board can then choose a course of action that aligns with ethical principles and addresses the needs of all stakeholders. While issues of concern to lawmakers and assessing impact of actions beyond the classroom are important, they are not the immediate next steps in the framework.

Question 9

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision making situation,all parties relevant to the decision should engage in:

Accepted Answer

After identifying stakeholders and gathering data, the best next step is for all parties to engage in brainstorming and evaluation of alternatives to find the best course of action that considers the concerns of all stakeholders. This process can lead to creative and ethical solutions that may not have been apparent at the outset. Legal discourse, a vote, or simply choosing a course of action without considering alternatives may not adequately address the ethical complexities of the situation or satisfy the needs of all stakeholders. Re-identification of issues may also be a helpful step, but it should be done in conjunction with exploring alternative courses of action.

Question 10

Which of the following is NOT one of the questions typically asked in the Ethical Decision-Making Metric?

Accepted Answer

The question "Does this decision respect the rights, dignity, and profits of stockholders?" is not typically asked in the Ethical Decision-Making Metric. However, the other four questions are commonly considered in this metric.

Question 11

The Ethical Decision-Making Framework includes all of the following steps EXCEPT:

Accepted Answer

The Ethical Decision-Making Framework includes the following steps: identify issues, gather information and identify stakeholders, brainstorm and evaluate alternatives, choose a course of action. While promoting the firm's corporate social responsibility efforts may be a part of a company's ethical decision-making framework, it is not one of the specific steps listed in this framework.

Question 12

Darwin's company is facing a difficult ethical issue.The firm has identified the various stakeholders and their issues and gathered the available data.Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives.Management reviewed and refined the alternatives.It should now choose the course of action that:

Accepted Answer

Considering the concerns of all stakeholders is the best approach to make an ethical decision, as it takes into account the impact of the decision on everyone including customers, employees, suppliers, shareholders, and the larger community. Maximizing profits alone may not be ethical and could harm some stakeholders. Creating the least possible publicity may not address the underlying ethical concern. Involving the fewest employees or minimizing costs may not be fair or just to all stakeholders.

Question 13

A recent court ruling banned the use of terms such as "light,low tar,natural,or mild" by tobacco companies.The stakeholders for this decision are the:

Accepted Answer

All of these stakeholders are affected by the court ruling. Shareholders may see a decrease in profits due to decreased sales or increased costs associated with rebranding products. Employees may face job loss or changes in responsibilities due to the impact on the company. Customers may no longer be misled into thinking that certain products are healthier than others. Marketing managers may need to come up with new strategies for advertising products.

Question 14

When Bernie Ebbers,WorldCom's CEO,was convicted of financial crimes,WorldCom was forced to merge with MCI.One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament.The tournament funds the Heritage Foundation,a major community charity.This example illustrates:

Accepted Answer

This example shows that the impact of unethical actions can reach far beyond the corporation, affecting community charities and social responsibility efforts. It also suggests the need to identify issues and make ethical decisions based on available information. However, it does not necessarily imply that unethical firms cannot be socially responsible.

Question 15

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility.These business leaders consider corporate social responsibility to be:

Accepted Answer

The question asks for the perception of executives and corporate boards regarding social responsibility. According to the question, many of them do not consider it as part of their mission or responsibility. The answer choices A, B, C, and D present social responsibility as a basic requirement, equivalent to ethical values, a key to operational effectiveness, or a component of basic business ethics, which is not the perception of the question. Therefore, option E, which suggests that social responsibility is beyond the norms of corporate ethical behavior, is the best fit for the given scenario.

Question 16

When auditing expenses claimed by the university president,the auditors found extravagant spending on $1000 per night hotels,banquets,and gourmet restaurants.The president was fired,alumni donations declined,and staff members--who were disturbed by the extravagance while staff salaries were frozen--quit their jobs.This example illustrates:

Accepted Answer

The example illustrates that unethical actions can have unforeseen consequences and negative impacts on an organization, such as a decrease in donations and employee turnover. It also highlights the importance of identifying and addressing ethical issues within an organization. The other options are not supported by the information given.

Question 17

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for handicapped children.The letter writer is critical of a banner displayed at the event,with the logos of alcoholic beverages and Hisaoki's company name.In the Framework for Ethical Decision-Making,Hisaoki's company failed to:

Accepted Answer

The answer of Hisaoki picks up the local newspaper and...

Question 18

Many corporations are shifting from defined benefit to defined contribution retirement programs.When considering changes to retirement programs,the primary stakeholders are the:

Accepted Answer

When considering changes to retirement programs, the primary stakeholders are the employees. They are directly affected by the change in retirement benefits and have a vested interest in the impact it will have on their future financial security. While shareholders may also have an interest in the financial implications of retirement benefits, employees should be the primary consideration in such decisions. Customers and marketing managers are not directly affected by changes to retirement programs and therefore are not considered primary stakeholders in this context.

Question 19

Which of the following questions is typically asked in the Ethical Decision-Making Metric?

Accepted Answer

All of the questions listed are typically asked in the Ethical Decision-Making Metric. It is important to consider each of these questions when making ethical decisions to ensure that all parties involved are treated fairly and respectfully.

Question 20

Being socially responsible is generally considered:

Accepted Answer

The answer of Being socially responsible is generally considered:
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Quiz 3: Marketing Ethics