Question 1

What is the purpose of a social audit?

Accepted Answer

To conduct a systematic analysis of how a firm has used funds that are earmarked for social programs

Question 2

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

Accepted Answer

on a smaller scale.

Question 3

Business ethics is a term often used to refer to the ethical or unethical behaviour of a manager or employee of an organization.

Accepted Answer

Business ethics is a term used to refer to the moral principles and values that guide the behavior of individuals and organizations in the world of commerce. It encompasses a wide range of issues such as fairness, honesty, responsibility, accountability, transparency, and sustainability. It is concerned with both the ethical conduct of individuals within organizations and the ethical practices of the organizations themselves.

Question 4

An individual's peers have only limited influence on the development of ethical values.

Accepted Answer

Peers can have a significant impact on an individual's ethical values as they often play a role in shaping social norms and expectations. Research has shown that peer pressure can lead individuals to engage in unethical behavior, and socialization within peer groups can shape an individual's beliefs about what is right or wrong. However, it is also true that an individual's ethical values can be influenced by a variety of other factors, including family upbringing, personal experiences and beliefs, and cultural norms. Therefore, while peers can be an important influence on ethical development, their influence is not the only or even necessarily the most significant factor.

Question 5

Bendix Corp.'s Board of Directors has just received a detailed plan regarding social responsibility activities that was developed by a committee of top managers at the company.What is the next step Bendix Corp.should take if it wants to follow the four-step process for managing social responsibility programs?

Accepted Answer

A director of the firm's social agenda must be appointed.

Question 6

Clarion Corp.has just established a committee of top managers to develop a plan detailing the level of support they will give to various social programs.What do they need to do next?

Accepted Answer

Give authority to one specific person to act as director of the firm's social agenda

Question 7

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 if it wants to follow the four-step process for managing social responsibility programs?

Accepted Answer

A committee of top managers must develop a strategic plan for social responsibility.

Question 8

The four basic steps in managing a social responsibility program,in order from first to last,are

Accepted Answer

top management support,strategic planning,appointment of a director,and a social audit.

Question 9

The final step in managing a social responsibility program is to

Accepted Answer

conduct a social audit.

Question 10

The ethical norm of utility evaluates whether the decision is consistent with cultural standards of fairness.

Accepted Answer

The ethical norm of utility evaluates the decision based on its ability to produce the greatest amount of good for the greatest number of people, regardless of cultural standards. The ethical norm of fairness evaluates whether the decision is consistent with cultural standards of fairness.

Question 11

The fundamental goal of sustainable development is to

Accepted Answer

pursue activities that meet current needs,but that will not put future generations at a disadvantage when they attempt to meet their needs.

Question 12

The ethical norm of caring evaluates whether the decision is consistent with people's responsibilities to each other.

Accepted Answer

The ethical norm of caring considers the impact of the decision on others and evaluates whether it aligns with our obligations and responsibilities towards them. It involves showing empathy, concern, and compassion towards others and their well-being. Therefore, option A is correct.

Question 13

Ethical behaviour is behaviour that conforms to individual beliefs and social norms about what is right and good.

Accepted Answer

This statement is true as ethical behaviour is subjective and depends on individual beliefs and societal norms.

Question 14

A business firm's influence on the ethical behaviour of its employees is very limited because their family and friends influenced their beliefs about right and wrong long before they joined the business firm.

Accepted Answer

A business firm can significantly influence the ethical behavior of its employees through its culture, policies, leadership, and training programs, which can shape and reinforce ethical standards and practices.

Question 15

What constitutes ethical and unethical behaviour is determined partly by the individual and partly by culture.

Accepted Answer

Ethics are a combination of personal values and cultural norms that determine what is considered right or wrong behavior in a particular society or community. While personal values and beliefs can influence individual ethical decision-making, cultural norms and societal expectations also play a significant role in shaping ethical behavior. Therefore, ethical and unethical behavior is determined partly by the individual and partly by culture.

Question 16

The ethical norm of justice evaluates if the decision is consistent with cultural standards of fairness.

Accepted Answer

The ethical norm of justice evaluates the fairness of a decision in relation to cultural and societal norms.

Question 17

Brantford Corp.has decided to commit to an active social responsibility program.Top management has already developed and published a policy statement outlining the company's commitment.What does Brantford need to do next?

Accepted Answer

Form a committee of top managers to develop a detailed plan

Question 18

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

Accepted Answer

Make sure that support is evident from top management.

Question 19

What distinguishes ethical behaviour from unethical behaviour is often subjective and influenced by differences of opinion.

Accepted Answer

Ethical behaviour can vary based on one's personal values and cultural norms, making it subjective and subject to differing opinions.

Question 20

Because ethics are based on both individual beliefs and social concepts,they do not vary from person to person.

Accepted Answer

Ethics can vary from person to person based on individual beliefs and cultural norms. What may be considered ethical in one society or culture may not be in another.

Quiz 3: Conducting Business Ethically and Responsibly