Question 1

In which stage of ethical decision making do individuals primarily consider their own needs and desires in making decisions?&#10;A) at all three stages&#10;B) the preconventional stage&#10;C) the conventional stage&#10;D) the postconventional stage

Accepted Answer

In the preconventional stage of ethical decision making, individuals primarily consider their own needs and desires in making decisions. At this stage, individuals focus on what is best for themselves, and may make decisions based solely on avoiding punishment or obtaining rewards. This stage is characterized by egocentrism and lack of concern for others. As individuals progress through the other stages of ethical decision making, they become more aware of the needs and perspectives of others and are more likely to make decisions based on broader ethical principles.

Question 2

The Exodus Company is a producer of plastic water bottles for athletes. Exodus contributed to the Olympics and then created an advertising campaign that featured the company's sponsorship of the Olympics. The Exodus Company is undertaking:

A) Corporate philanthropy
B) Corporate social responsibility activities
C) Green marketing
D) Cause-related marketing

D

Accepted Answer

The Exodus Company is engaging in cause-related marketing by promoting its sponsorship of the Olympics in its advertising campaign.

Question 3

Kate witnessed a senior manager ordering a subordinate to put in place a contract with his brother's company even though the price was higher than four bids of the same quality from other companies. When she got home she sent an email to the Chairman of the Board disclosing what she saw. In this scenario, Kate would be best described as:

A) Being in a conflict of interest
B) A loyal employee
C) A whistleblower
D) An untrustworthy employee

C

Accepted Answer

Kate is a whistleblower because she reported an unethical and potentially illegal act by a senior manager to the Chairman of the Board. She is not in a conflict of interest as she has no personal involvement in the situation, nor is she acting as a disloyal or untrustworthy employee.

Question 4

In September 1982, seven people died in the Chicago area after swallowing Tylenol capsules that had been tainted with cyanide, replaced in their packaging and put on store shelves for sale. Johnson & Johnson maintained that the tampering could not have been foreseen, and was therefore not their fault, but still recalled all Tylenol capsules and canceled advertising at a pre-tax loss estimated at $100 million. It also developed a capsule-shaped tablet that would be more difficult to tamper with. In doing this, Johnson & Johnson…

A) admitted product liability.
B) handled the situation in a socially responsible way.
C) raised awareness of the dangers of using Tylenol.
D) avoided accepting responsibility and therefore acted unethically.

Accepted Answer

Johnson & Johnson handled the situation in a socially responsible way by voluntarily recalling all Tylenol capsules, canceling advertising, and developing a safer product to prevent tampering. Although they maintained that the tampering could not have been foreseen and therefore may not have accepted product liability, their actions after the incident demonstrate a commitment to public safety and responsibility.

Question 5

Management's acceptance of its obligation, when evaluating company performance, to consider profit to be of equal value as indicators such as employee satisfaction, consumer satisfaction, and societal well-being is referred to as:

A) Social responsiveness
B) Social persuasiveness
C) Social responsibility
D) Social audits

Accepted Answer

The concept of considering profit to be of equal value as indicators such as employee satisfaction, consumer satisfaction, and societal well-being is referred to as social responsibility. Social responsiveness refers to the actions that a company takes in response to social issues, while social persuasiveness refers to a company's ability to influence social attitudes and behaviors. Social audits are a systematic evaluation of a company's social and environmental impact.

Question 6

A strategy that promotes environmentally safe products and production methods is called:&#10;A) green marketing.&#10;B) cause-related marketing.&#10;C) the Safe Environment Project.&#10;D) a public health issue.

Accepted Answer

Green marketing is a strategy that promotes environmentally safe products and production methods. It involves incorporating sustainability into all aspects of marketing, including product design, packaging, communication, and promotion. Green marketing is focused on meeting the needs of consumers who value sustainability, and it can help businesses differentiate themselves from competitors by demonstrating their commitment to environmental responsibility.

Question 7

According to the Competition Bureau of Canada's Guidelines for Environmental Claims in Green Marketing, a product or package that is reusable for its original purpose is correctly described as:&#10;A) Refillable&#10;B) Recyclable&#10;C) Compostable&#10;D) Degradable

Accepted Answer

According to the Competition Bureau of Canada, a product or package that is reusable for its original purpose is correctly described as "refillable". "Recyclable" refers to a product or package that can be processed through an established recycling program, "compostable" refers to a product or package that can be broken down into natural elements through composting, and "degradable" refers to a product or package that breaks down into smaller pieces over time, but may not necessarily be environmentally friendly.

Question 8

Business ethics are shaped by:&#10;A) the company's Code of Ethics.&#10;B) the ethical climate in the organization.&#10;C) the company's upper management.&#10;D) all of these.

Accepted Answer

Business ethics are shaped by a combination of factors, including a company's Code of Ethics, the ethical climate within the organization, and the actions and attitudes of upper management. All of these factors work together to establish the norms and standards for ethical behavior within the company. Therefore, the correct answer is D - all of these.

Question 9

Lucent Technologies requires employees to participate in a Web-based compliance and business ethics training program. This type of program primarily serves which level of ethics development?&#10;A) ethical awareness&#10;B) ethical education&#10;C) ethical action&#10;D) ethical leadership

Accepted Answer

Lucent Technologies' Web-based compliance and business ethics training program provides employees with education on ethics, indicating that it is primarily serving the level of ethical education.

Question 10

When Benjamin's Coffee Company purchases coffee beans from a developing country and pays more for them than necessary in an effort to promote better trading conditions in developing countries, the company is engaging in:

A) Free trade
B) Fair trade
C) Local trade
D) Corporate philanthropy

Accepted Answer

Fair trade is a movement that aims to promote fair compensation and better trading conditions for farmers and workers in developing countries. By choosing to pay more for their coffee beans, Benjamin's Coffee Company is actively engaging in fair trade practices.

Deck 2: Business Ethics and Social Responsibility