Question 1

Mary started her dot.com business in 2005.Recently,she hired Jackie as VP of Sales and Marketing.As part of company policy,management was to give a blood test for verification of AIDS or any drug abuse.When the results came back,Mary found out that Jackie had AIDS.She was fired because the company does not tolerate having employees with AIDS.

Accepted Answer

Mary is in violation of discrimination laws by firing Jackie because of her HIV status. It is illegal to discriminate against employees based on their medical conditions, including HIV/AIDS. Mary should have consulted with an attorney and made accommodation for Jackie instead of firing her. It is not necessary to give blood tests to everyone on a quarterly basis as it is a violation of privacy rights.

Question 2

The greater the reward or the smaller the penalty for unethical acts,the greater is the probability that such behavior will occur.This refers to:

Accepted Answer

This statement refers to opportunity pressures, which are external factors that provide individuals with the opportunity and means to engage in unethical behavior. The greater the reward or smaller the penalty, the more tempting it is to engage in such behavior when the opportunity arises. Competitive pressures refer to the pressures faced by individuals or organizations to outperform their rivals, globalization pressures refer to the pressures faced by organizations to adapt to the changing global environment, and personal pressures refer to the individual's internal motivations or pressures to engage in unethical behavior.

Question 3

Stakeholders are the individuals and groups affected by a decision.

Accepted Answer

This is a commonly accepted definition of stakeholders.

Question 4

Building a reputation for ethical behavior typically takes a long time.

Accepted Answer

Building a reputation for ethical behavior involves consistently demonstrating ethical behavior over a prolonged period, which takes time and effort. It cannot be achieved overnight or through a single action.

Question 5

Which of the following statements is correct?

Accepted Answer

All three statements are correct and emphasize the importance of ethical behavior in the business world. A) Entrepreneurs need to understand that going against society's ethical standards can lead to negative consequences. B) A single employee's actions can harm the reputation of a business, highlighting the need for ethical training and conduct. C) How customers perceive a business's ethics impacts their willingness to do business with the company. All these points reinforce the need for businesses to prioritize ethical behavior in their operations.

Question 6

A few examples of small businesses giving back to the community are:

Accepted Answer

All of the above options are examples of small businesses giving back to the community. Literacy programs can include donating books or volunteering to read to children, while food bank programs can involve donating excess food or organizing food drives. Clean environment programs can include initiatives to reduce waste or promote sustainable practices. All of these efforts demonstrate a commitment to improving the well-being of the community and can have a positive impact on those in need.

Question 7

Business ethics consist of the fundamental ________ values and behavioral standards that form the foundation for the people of an organization as they make decisions and interact with stakeholders.

Accepted Answer

Business ethics are based on moral values and principles that guide the behavior and decision-making of individuals and organizations. While religious, societal, and legal factors may also influence business ethics to some extent, the core foundation is rooted in moral values such as honesty, integrity, fairness, and respect for others. Therefore, option B is the best choice as it reflects the essence of business ethics.

Question 8

To create an environment for your people that facilitates ethical behavior,an entrepreneur should:

Accepted Answer

Setting the tone and establishing and enforcing policies is essential for creating an environment that facilitates ethical behavior. Educating employees on ethical standards is also important, but it is not a choice provided in the options. Punishing whistleblowers is unethical and can contribute to a culture of fear and silence, so it should not be encouraged. Therefore, the best option is A.

Question 9

The first step in developing an ethical framework is to identify the key stakeholders.

Accepted Answer

The answer of The first step in developing an ethical...

Question 10

In most situations,the ethical dilemma is clear-cut and obvious.

Accepted Answer

Ethical dilemmas are often complex and can involve conflicting values, interests or principles. There may be no clear-cut or obvious solution, and individuals may need to make difficult choices based on their own moral compass and professional responsibilities.

Question 11

A key determinant of ethical behavior is:

Accepted Answer

The answer of A key determinant of ethical behavior is:
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Question 12

Small business owners seldom feel the pressure to violate ethical standards or to take shortcuts in their careers.

Accepted Answer

Small business owners, like any other professionals, may face ethical dilemmas or feel pressure to take shortcuts in order to achieve success or stay competitive in their industry. However, it is important to prioritize ethical behavior and make choices that align with one's values and principles, even if it might come at a short-term cost or challenge.

Question 13

Joan was hired as a sales representative.One of her responsibilities was to make outside sales calls.Over the years,she got friendly with her customers.One of the customers has been asking her for a date for a while and finally told her that she will not be getting any orders unless she goes out with him.

Accepted Answer

The answer of Joan was hired as a sales representative.One...

Question 14

The policies and procedures concerning ethical behavior in an organization serve as specific guidelines for people as they make daily decisions.

Accepted Answer

Policies and procedures concerning ethical behavior are put in place to help employees understand what is expected of them and make informed decisions that align with organizational values and principles. These guidelines serve as a reference point for daily decision-making, ensuring that employees act in a manner that is consistent with ethical standards and promotes the best interests of the organization.

Question 15

If a small business owner obeys the law,he/she can be certain that his/her actions are ethical.

Accepted Answer

Obeying the law is necessary but not sufficient to ensure ethical behavior. Some actions may be legal but still unethical, while some actions may be ethical but not explicitly covered by the law. Ethical decision-making involves considering not only legal requirements, but also moral values and principles, and the potential impact of actions on stakeholders.

Question 16

Fortunately,for businesses,it only takes a short time to build a reputation and it takes a long time to destroy it.

Accepted Answer

This statement is false. It actually takes a long time to build a reputable business, and it can be easily destroyed by one negative incident or poor decision. A good reputation takes consistent effort and positive actions over a long period of time.

Question 17

Since ethical decisions are based on absolute standards of conduct,it is unimportant to identify the stakeholders in any specific decision when determining the ethical thing to do.

Accepted Answer

Identifying the stakeholders is important when determining the ethical thing to do because ethical decisions should consider the impact of the decision on all parties involved. Ignoring the stakeholders can lead to unethical or unfair outcomes.

Question 18

In terms of ethical behavior,the law merely establishes the minimum standard of behavior.

Accepted Answer

The law sets forth the baseline for acceptable conduct in society, but ethical behavior goes beyond legal requirements and involves making decisions that align with moral principles and values. Therefore, ethical standards are generally higher than legal standards.

Question 19

Polls show that increasingly the public is only holding companies accountable for the economic impact of their decisions,not the ethical implications.

Accepted Answer

Polls and consumer behavior studies increasingly show that the public is also holding companies accountable for the ethical implications of their decisions, not just the economic impact. This includes concerns over environmental sustainability, labor practices, and corporate governance.

Question 20

Ethics are the fundamental moral values and behavioral standards that form the foundation for the people of an organization as they make decisions and interact with stakeholders.

Accepted Answer

Ethics are considered as the core values and principles that dictate the behavior and decision-making of people in an organization. These values and standards help to establish a culture of integrity, transparency, and honesty.

Quiz 2: Ethics and Social Responsibility: Doing the Right Thing