Question 1

Only since Enron's collapse have ethicists and business professionals really been concerned about the increasing focus on "short-term" earnings.

Accepted Answer

The focus on short-term earnings has been a concern for ethicists and business professionals for many years, not just since Enron's collapse. Enron's collapse did, however, bring greater attention to the negative consequences of this short-term focus.

Question 2

Because stakeholders' interests frequently do not overlap, an organization is able to focus on one stakeholder at a time.

Accepted Answer

It is important for an organization to balance the interests of all stakeholders, rather than focusing on one stakeholder at a time. This helps to ensure the long-term success and sustainability of the organization.

Question 3

Reference: Matching Key Stakeholders and Regulatory Agencies
-The Federal Trade Commission

Accepted Answer

The Federal Trade Commission is responsible for protecting consumers from deceptive or unfair business practices, making choice B the best choice. The other choices relate to different stakeholder groups and are not within the scope of the FTC's responsibilities.

Question 4

It's clear that the system for advertising drugs and bringing them to market poses huge ethical issues for the drug companies, many of which have been admired for their ethical reputations.

Accepted Answer

The statement suggests that the system for advertising drugs and bringing them to market poses ethical issues for drug companies, many of which are admired for their ethical reputations.

Question 5

The real proportion of wrong-doers is probably quite small.

Accepted Answer

Research has shown that most people are generally honest and law-abiding, with only a small percentage of individuals engaging in criminal or unethical behavior.

Question 6

In ethical decision-making and particularly in cases dealing with product safety, firms are best served when they consider the long-term consequences of a decision.

Accepted Answer

Considering the long-term consequences of a decision in ethical decision-making can help firms avoid negative impacts and potential legal or reputational issues in the future.

Question 7

Reference: Matching Key Terms and Definitions
-Owners, customers, and employees.

Accepted Answer

The answer of Reference: Matching Key Terms and Definitions
-Owners, customers,...

Question 8

The definition of conflict for an organization is similar to that for an individual ; that is, if a stakeholder thinks that an organization's judgment is biased because of a relationship it has with another firm, a conflict could exist.

Accepted Answer

The statement correctly describes the definition of conflict for an organization.

Question 9

Ethical disasters in corporations often start as small issues and it is either denial or mismanagement that causes seemingly minor situations to mushroom into huge legal, ethical, and public relations nightmares.

Accepted Answer

Ethical disasters often begin as small issues and are made worse by denial or mismanagement.

Question 10

Reference: Matching Key Stakeholders and Regulatory Agencies
-The Federal Communication Commission (FCC)

Accepted Answer

The FCC is primarily responsible for regulating the communications industry and ensuring that consumers' rights are protected. While some of their decisions may also indirectly affect employees and shareholders, their primary focus is on guarding the rights of consumers.

Question 11

Reference: Matching Key Stakeholders and Regulatory Agencies
-The Federal Reserve Board

Accepted Answer

The Federal Reserve Board is primarily responsible for regulating and overseeing the banking industry and monetary policy in the United States, which is directly linked to protecting the rights of shareholders. The other options (B, C, and D) are typically under the jurisdiction of other regulatory agencies such as the Consumer Financial Protection Bureau, the Department of Labor, and the Environmental Protection Agency, respectively.

Question 12

Reference: Matching Key Terms and Definitions
-Individuals who have an interest/claim in what the organization does or how it performs.

Accepted Answer

Stakeholders are individuals or groups who have an interest or claim in what the organization does or how it performs. This includes both primary stakeholders, such as customers, employees, and shareholders, as well as secondary stakeholders, such as the community, government regulators, and suppliers.

Question 13

Reference: Matching Key Terms and Definitions
-Opinion formers, community, and authorities.

Accepted Answer

The answer of Reference: Matching Key Terms and Definitions
-Opinion formers,...

Question 14

Despite Johnson & Johnson's best efforts to respond to its customers by pulling Tylenol off shelves, the product has never regained its market share.

Accepted Answer

Johnson & Johnson's effective crisis management and decision to pull Tylenol off the shelves actually helped the company to regain consumer trust and eventually recover its market share.

Question 15

At the turn of the last century, consumers didn't even have the right to sue a manufacturer for a defective product.

Accepted Answer

Before the 20th century, the legal principle of "caveat emptor" (buyer beware) applied, meaning the burden was on the buyer to ensure a product was safe and reliable before purchasing it. There were no legal protections for consumers against defective or dangerous products.

Question 16

Conflicts involving organizations are more damaging than those who involve individuals.

Accepted Answer

When conflicts involve organizations, the consequences can be much greater than conflicts involving individuals. This is due to the fact that organizations tend to have a larger impact on society and can cause greater harm or disruption if their conflicts are not resolved effectively. Additionally, conflicts within organizations can result in damage to reputation, loss of revenue, and even legal consequences.

Question 17

One of the most common faults in ethical decision making is to ignore the long-term consequences of a decision.

Accepted Answer

Ignoring long-term consequences can lead to unintended negative outcomes and ethical violations in the future. It's important to consider the potential impact of a decision not just in the present, but also in the future.

Question 18

Toyota, like Johnson & Johnson, halted production in response to its concerns for its customers.

Accepted Answer

The answer of Toyota, like Johnson & Johnson, halted production...

Question 19

Reference: Matching Key Stakeholders and Regulatory Agencies
-The Environmental Protection Agency (EPA)

Accepted Answer

The Environmental Protection Agency (EPA) is responsible for enforcing laws and regulations that protect the environment and the public's health. Therefore, it guards the rights of the community by ensuring that businesses and industries comply with environmental laws that protect the air, water, and land. The EPA does not have a direct responsibility for guarding the rights of shareholders, consumers, or employees.

Question 20

Reference: Matching Key Stakeholders and Regulatory Agencies
-Occupational Safety and Health Administration (OSHA)

Accepted Answer

The Occupational Safety and Health Administration (OSHA) is responsible for ensuring the safety and health of employees in the workplace. Therefore, OSHA's primary role is to guard the rights of employees.

Quiz 10: Ethical Problems of Organizations

Only since Enron's collapse have ethicists and business professionals really been concerned about the increasing focus on "short-term" earnings.

Because stakeholders' interests frequently do not overlap, an organization is able to focus on one stakeholder at a time.

Reference: Matching Key Stakeholders and Regulatory Agencies -The Federal Trade Commission

It's clear that the system for advertising drugs and bringing them to market poses huge ethical issues for the drug companies, many of which have been admired for their ethical reputations.

The real proportion of wrong-doers is probably quite small.

In ethical decision-making and particularly in cases dealing with product safety, firms are best served when they consider the long-term consequences of a decision.

Reference: Matching Key Terms and Definitions -Owners, customers, and employees.

The definition of conflict for an organization is similar to that for an individual ; that is, if a stakeholder thinks that an organization's judgment is biased because of a relationship it has with another firm, a conflict could exist.

Ethical disasters in corporations often start as small issues and it is either denial or mismanagement that causes seemingly minor situations to mushroom into huge legal, ethical, and public relations nightmares.

Reference: Matching Key Stakeholders and Regulatory Agencies -The Federal Communication Commission (FCC)

Reference: Matching Key Stakeholders and Regulatory Agencies -The Federal Reserve Board

Reference: Matching Key Terms and Definitions -Individuals who have an interest/claim in what the organization does or how it performs.

Reference: Matching Key Terms and Definitions -Opinion formers, community, and authorities.

Despite Johnson & Johnson's best efforts to respond to its customers by pulling Tylenol off shelves, the product has never regained its market share.

At the turn of the last century, consumers didn't even have the right to sue a manufacturer for a defective product.

Conflicts involving organizations are more damaging than those who involve individuals.

One of the most common faults in ethical decision making is to ignore the long-term consequences of a decision.

Toyota, like Johnson & Johnson, halted production in response to its concerns for its customers.

Reference: Matching Key Stakeholders and Regulatory Agencies -The Environmental Protection Agency (EPA)

Reference: Matching Key Stakeholders and Regulatory Agencies -Occupational Safety and Health Administration (OSHA)