Question 1

Being socially responsible is generally considered

Accepted Answer

The answer of Being socially responsible is generally considered
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Question 2

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

The example illustrates that the impact of unethical actions can reach far beyond the corporation, as evidenced by the loss of sponsorship for a community charity due to WorldCom's financial crimes. It does not necessarily suggest that unethical firms cannot be socially responsible or that there is a lack of information needed to make ethical decisions. The advantage of social responsibility is not directly questioned by the example.

Question 3

When Johnson & Johnson removed all Tylenol from the shelves after some containers were tampered with,poisoning and killing seven people,the company

Accepted Answer

Johnson & Johnson's decision to remove all Tylenol from the shelves was a demonstration of their commitment to putting their customers' safety and well-being first. By sacrificing short-term profits, they were able to preserve their long-term credibility and trust with consumers. There was no evidence that they were forced to do so or were ordered by the FDA, and selling the returned bottles in less developed countries would have been unethical and likely illegal.

Question 4

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

Employees should be considered the primary stakeholder when considering changes to retirement programs as it directly affects their future financial security. Shareholders may also have an interest in the financial impact of these changes on the company, but their stakeholder interest is secondary to that of the employees. Customers, marketing managers, and competition may be indirectly affected, but their stakeholder interest is not as significant as that of the employees.

Question 5

When auditing expenses claimed by the university president,the auditors found extravagant spending on $1,000 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

This example illustrates that the impact of unethical actions can affect the organization in unanticipated ways. The extravagance of university president caused adverse consequences, such as firing the president, declining of alumni donations, and loss of staff members. Hence, it is essential to identify such unethical issues before implementing them.

Question 6

The Johnson & Johnson Credo acknowledges the company's responsibility to

Accepted Answer

The Johnson & Johnson Credo clearly states the company's responsibility to its users (customers), employees, the community, and its stockholders. This reflects the ideal of corporate social responsibility, where a company is not solely focused on profit-making but also on promoting the well-being of its stakeholders. Choices B, C, D, and E either prioritize other parties over users of its products or do not include all the stakeholders mentioned in the Johnson & Johnson Credo.

Question 7

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 8

The Johnson & Johnson Credo

Accepted Answer

The Johnson & Johnson Credo has guided the firm since it was written in the 1940s. It is a set of principles that guide the company's decision-making process, and it emphasizes the company's responsibility to its customers, employees, communities, and shareholders. Although the Tylenol crisis in 1982 put the company's values to the test, the Credo remained a guiding principle throughout the crisis and reinforced the company's commitment to safety and customer satisfaction.

Question 9

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 presents the viewpoint that some executives and boards of directors do not believe social responsibility is part of their mission or responsibility. Among the options provided, the closest match to this perspective is option E, which suggests that these leaders view social responsibility as being beyond the norms of corporate ethical behavior. The other options suggest that social responsibility is a basic requirement, a key to operational effectiveness, or a component of basic business ethics. While some executives may hold these views, the question asks for the perception of those who do not prioritize social responsibility. Option B also comes close to this perspective by suggesting that social responsibility is equivalent to the ethical value of "Do no harm," but it does not capture the potential belief that social responsibility is not a priority at all.

Question 10

Janice was disturbed to find that the real estate company she had just started working for did not have a(n)__________,the starting point for creating a strong ethical climate.

Accepted Answer

A set of ethical values is the starting point for creating a strong ethical climate. Without a clear set of ethical values, it is difficult for employees to understand what behaviors are expected of them and for the company to maintain a consistent ethical standard. While ethical behavior seminars, employment contracts, social responsibility programs, and ethical activity bonuses can all contribute to an ethical climate, they are not as essential as having a strong foundation of ethical values.

Question 11

When making decisions,managers often have to decide between doing what is beneficial for them (and possibly the firm)in the short run,and doing what is right and beneficial for the firm and for society in the long run.To address this conflict,a firm

Accepted Answer

The best way to address the conflict between short-term and long-term goals is to ensure that the long-term goals are aligned with the short-term goals of each individual within the firm. This way, managers can make decisions that benefit themselves in the short-term while also contributing to the firm's long-term goals. It is important to note that this does not mean that the firm should ignore ethics or societal needs, but rather find a balance between short-term and long-term objectives.

Question 12

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

Despite Enron's unethical business practices, they were still demonstrating corporate social responsibility by being a major donor to Houston area charities. This shows that they were making an effort to give back to their community and contribute to social causes, even if their actions in other areas were unethical.

Question 13

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

Accepted Answer

Promoting the firm's corporate social responsibility efforts is not a step in the Ethical Decision-Making Framework. The other steps are crucial for identifying ethical issues and making informed decisions that prioritize the well-being of stakeholders.

Question 14

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.Hisaoki never considered that this problem might arise.In the Framework for Ethical Decision Making,Hisaoki's company failed to

Accepted Answer

Hisaoki's company failed to identify the ethical issue that could arise from associating alcoholic beverage logos with a sporting event for handicapped children.

Question 15

Compared to the average company,firms with strong ethical climates tend to

Accepted Answer

Firms with strong ethical climates are more likely to prioritize social responsibility and ethical behavior in their decisions and actions, leading to a more positive impact on society and the environment.

Question 16

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, their issues and gathering data related to an ethical decision making situation, engaging in brainstorming and evaluation of alternatives is the best choice. This allows for all parties to contribute their ideas and concerns and for the best possible course of action to be decided upon. Legal discourse and a vote may not necessarily lead to the most ethical or effective solution, and reidentification of issues may not necessarily lead to new information or solutions.

Question 17

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 be involved in brainstorming and evaluation of alternatives. This ensures that all perspectives and interests are taken into account in the decision-making process. It also promotes transparency and accountability, which is essential for ethical decision making.

Question 18

Jacqueline was pleased to read a paraphrasing of the Golden Rule,"Do unto our customers as you would have them do unto you," as part of her new employer's mission statement.Next,Jacqueline expects to find in the firm's employee handbook

Accepted Answer

Since the mission statement includes the paraphrased Golden Rule, it suggests that the company values ethical treatment of customers. Therefore, it would be reasonable to expect explicit rules governing transactions to be included in the employee handbook to ensure that employees act in accordance with the company's values. The other options are not directly related to the company's stated values and mission.

Question 19

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 step in the Ethical Decision-Making Framework should be to engage in brainstorming and evaluate alternatives. This will help the board come up with potential solutions to address the issue of deteriorating school facilities within the constraints of a shrinking budget, taking into account the concerns of all stakeholders involved. Only after evaluating these alternatives can the board choose a course of action.

Question 20

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems.Previously,they were only expected to answer buyers' questions.The new regulation addressed the marketing ethical problem of

Accepted Answer

The new real estate disclosure regulation requires sellers and their agents to disclose any existing problems, which was previously not required. This means that they can no longer withhold information from prospective buyers, addressing the ethical problem of withholding information.

Quiz 4: Marketing Ethics