Deck 2: Ethics Firstthen Customer Relationships

Question 1

If a salesperson has a drug or alcohol problem that is bad enough to require professional help, the appropriate action of the sales manager is to remove the individual from his or her territory.

Answer 1

False

Question 2

According to the textbook, if the activity is not illegal, then it must be ethical.

Answer 2

False

Question 3

Company ABC ltd has an outstanding loan with a large Canadian Bank.Based on this scenario, the Canadian Bank is one of ABC's stakeholders.

Answer 3

True

Question 4

Constituents of a village are protesting for Company YYZ to stop its plant production at night time because a majority of the people living nearby are unable to sleep due to high levels of noise.In this scenario, Company YYZ has a social responsibility to comply with the request of the constituents.

Question 5

Candace is a commission salesperson for a college textbook publisher.Her territory is Nova Scotia.Management at Candace's firm has decided to increase the number of territories in the province.Candace should be excited about the opportunity this presents for her to earn more money.

Question 6

According to the text, over the next ten years, rising global unemployment will cause society to reduce its expectations for corporations to act with social responsibility.

Question 7

Legal and ethical responsibilities are synonymous.

Question 8

Social responsibility is defined as business' obligation to maximize its negative impact and minimize its positive impact on society.

Question 9

Companies must be able to fulfill their economic responsibilities before focusing on their discretionary responsibilities.

Question 10

Giving an expensive gift to a client who might be considering your sales proposal to influence her decision is considered unethical behaviour.

Question 11

The notion of corporate social responsibility is easy to understand.

Question 12

Jordan is constantly ranked among the top three salespersons at the retail electronic store where he works.However, he is also ranked highest in returns.Upon investigating, his manager finds out that Jordan exaggerates performance of low-end products in order to push the sales of high-end products.In this case, Jordan is involved in an ethical misconduct.

Question 13

Simply put, ethical behaviour refers to treating others fairly.

Question 14

A sales person at the conventional moral development level will often ask himself/herself the following question: "What am I legally required to do?"

Question 15

Stakeholder is a term used to describe groups inside the organization who have a stake in its performance, while stockholder is a term used to describe groups outside the firm who have an interest in its performance.

Question 16

Only 10 to 20% of people behave at the conventional level.

Question 17

Businesses wanting to generate profits and the notion of serving society are not mutually exclusive.

Question 18

The textbook explicitly suggest organizations should wait for issues to surface from a social responsibility perspective before acting.

Question 19

In Canada, the Charter of Rights and Freedoms consists of rules for private organizations on how they can collect, use, or disclose personal information.

Question 20

Companies are only responsible for making profit to keep their businesses in operation.

Question 21

In order to intervene in a pro-competition tying, the law must be able to determine if the consumers were paying high prices, getting less variety, or both.

Question 22

In order to motivate a buyer John, a sales representative, knowingly embellished the actual performance of his product.Because of the notion of "buyer be aware," the buyer has no legal recourse when the product fails to meet John's embellished statements.

Question 23

Mark is a salesperson at a company which is a member of the Direct Sellers Association.Based on this fact, it is uncertain that any product claims provided by Mark will be based on actual facts.

Question 24

According to the textbook, 90% of the colleges' and universities' business programs in Canada have at least one course in ethics in their curriculum.

Question 25

According to the textbook, bribes and kickbacks account for only 10% of the white-collared crimes in North America.

Question 26

Mutual fund representatives try to maximize the returns on their clients' portfolios, so they can earn more commission.However, they may also be on a lookout for making trades, which will earn them the most commission even if it might not be best solution for their clients.This is an example of a conflict of interest.

Question 27

A salesperson who exaggerates about product capabilities may be guilty of misrepresentation.

Question 28

It is easy to distinguish between a gift and a bribe.

Question 29

Hamilton Plastics Company requires anyone who wants to use its product to purchase only from it.This contractual arrangement is called an exclusive dealership and if it lessens competition it is illegal under the Competition Act.

Question 30

Employees will on occasion misuse company assets.The best strategy to deal with this issue is to apply strong punitive consequences after the misuse happens.

Question 31

Sales managers only have ethical responsibilities to their sales personnel.

Question 32

In Canada, in price discriminatory cases, the buyer cannot be held liable along with the seller.

Question 33

Peter writes a weekly newsletter profiling Canadians in industry.Last week, Peter wrote a column in which he claimed Mary Jones lied on her employment application.At a later date, it was determined that the information Mary provided in her application was factual.Peter has committed an act of slander; hence, may be exposed to legal action by Mary.

Question 34

Company A will sign the deal with Company B if Company B also agrees to purchase Company A's product.This is known as exclusive dealing.

Question 35

Although discrimination on the basis of a person's sex is illegal, there are no laws against sexual harassment.

Question 36

Canada's human rights legislation prohibits the denial of employment on the basis of marital status.

Question 37

In Canada, banks are not entitled to engage in coercive tied selling.

Question 38

The majority of transactions in which a Canadian sales representative participates fall within the scope of the Sale of Goods Act.

Question 39

Anti-competitive tying occurs when a company allows its suppliers to take advantage of the economies of scale.

Question 40

Under the Sale of Goods Act, the buyer can refuse the goods if the goods were delivered on time.

Question 41

Which of the following actions does not demonstrate corporate social responsibility?

A)Engaging in activities which resolve environmental issues.
B)Acting retroactively to solve problems after receiving public condemnation.
C)Developing and implementing a code of conduct.
D)Following industry-wide standards and imposing self-regulation within the organization.
E)Taking part in appropriate social programs.

Question 42

A Toronto based Credit Union decides to donate 10% of its pre-tax earnings to a local not-for-profit organization that restores inner city parks.Which of the following terms embodies the Credit Union's social responsibility commitment?

A)self-disciplined
B)discriminatory
C)proxy mandate
D)discretionary
E)derived

Question 43

According to the textbook, which of the following would best fit the definition of a socially responsible business?

A)has managers who make choices and take actions that will contribute to the welfare of society as well as to those of the organization
B)serves its customers in a profitable and lawful manner
C)serves its customers and employees in an ethical and lawful manner
D)encourages managers to monitor the off-duty behaviour of employees
E)pursues profits only as a short run objective

Question 44

Setting up a hotline to get your employees to report any unethical behaviours of their peers is an example of whistleblowing encouragement.

Question 45

Which of the following statements about an organization's social responsibilities is true?

A)A business has no economic responsibility to stay in business and make a profit.
B)Discretionary responsibilities are involuntary.
C)Local town councils, provincial government, and federal regulatory agencies impose ethical responsibilities.
D)Legal responsibility defines what society deems as important with respect to appropriate corporate behaviour.
E)Discretionary responsibility is the lowest criterion of social responsibility.

Question 46

Operating an ethical organization requires simply that organizations provide employees with the required training on the broad topics associated with ethical business practices.

Question 47

Alison considers herself a responsible person.She upholds moral and legal laws and conforms to the expectations of others.Alison is functioning at what level of moral development?

A)consensual
B)principled
C)conventional
D)discretionary
E)preconventional

Question 48

Which of the following would be classified as the highest criterion of social responsibility?

A)self-disciplined
B)environmental
C)designated
D)discretionary
E)moral

Question 49

Which of the following groups are not part of the eight major stakeholders of an organization represented by the acronym CCC GOMES?

A)Customers
B)Suppliers
C)Competitors
D)Communities
E)All of these are stakeholders

Question 50

Which of the following terms describe any group that has an indirect or direct interest in a particular business?

A)investors
B)stakeholder
C)proxy group
D)legal representative
E)input provider

Question 51

In an earthquake-ravaged city, Millennials Hotel is providing free accommodation to 50 people per night for the next two weeks.This is an example of what kind of company responsibility?

A)Discretionary responsibility
B)Ethical responsibility
C)Legal responsibility
D)Economic responsibility
E)Moral responsibility

Question 52

The textbook identifies several main areas of responsibility organizations have to the various groups who have an interest in its activities.Which of the following is NOT one of those areas of responsibility?

A)economic
B)discretionary
C)ethical
D)legal
E)technical

Question 53

Code of Conduct documents are almost always written by individuals holding the position of ethical ombudsman.

Question 54

Two major influences on the ethical behaviour of sales personnel are:

A)the organization's employees and the culture of the organization
B)the organization's production and finance departments
C)internal and external organizational environments
D)national and international policies
E)the organization's customers and stockholders

Question 55

You have been asked by your management team to put together a list of activities an organization could undertake to demonstrate its commitment to social responsibility.Which of the following choice(s) would be appropriate to include in your list?

A)strive to make profits on an ongoing basis
B)admit mistakes
C)take public stands on social issues
D)monitor the social environment
E)All of the following choices are correct

Question 56

Dennis works as a sales representative for a tractor manufacture.The particular line of tractors he sells is of high quality; however, it has an expensive service schedule that increases operating costs.Dennis's employer insists that all sales include a signed agreement from the customer acknowledging that the sales person has provided this information to the customer.Dennis follows this sales process only because if he does not, he will be fired.Which of the following moral development levels best describes Dennis?

A)principled
B)consensual
C)conventional
D)discretionary
E)preconventional

Question 57

"I don't care what the boss said.It's wrong and I'm not going to do it.If I get fired, then that's just the way it will have to be." The salesperson who just made this statement to a co-worker is apparently working at what level of moral development?

A)non-discriminatory
B)principled
C)conventional
D)consensual
E)preconventional

Question 58

Which of the following actions can a corporation do to demonstrate social responsibility?

A)Avoid taking corrective action before it is required.
B)Evade taking public stands on social issues.
C)Strive to make profits on an ongoing basis.
D)Avoid publicity concerning any socially damaging mistakes.
E)None of these actions demonstrates social responsibility.

Question 59

Mary is a manager of a small Vancouver based manufacturing company.She manages a business that respects the rights and interests of her workers by being fair and impartial in her decision making process.Which of the following terms best describes Mary's approach to management?

A)approachable
B)ethical
C)goal oriented
D)following "the letter of the law"
E)amoral

Question 60

The notion that "no two people are alike" simply means that everyone has a different view of things.This is known as:

A)Planet view
B)Earth view
C)Opposite view
D)Alike view
E)World view

Question 61

Sharon is finishing up her third sales call with a big client.She is close to signing the deal with this company when she realizes that it's Friday September 28 and there is a big sales contest which starts on Monday October 1.The sales contest will award a bonus of $5,000 to the top salesperson for the month of October.After remembering the sales contest, Sharon somehow stalls the signature for the coming Monday.Which of the following unethical practices is Sharon involved in?

A)Moonlighting.
B)Misusing company's assets.
C)Technology theft.
D)Affecting other salespeople.
E)Cheating.

Question 62

Which of the following is NOT identified in the textbook as an example of an organization practicing corporate social responsibility?

A)helping establish industry wide standards of conduct
B)making the environment a top priority
C)creating and leveraging an internal code of conduct
D)taking positions of social issues
E)having little or no concern for the organization's financial position

Question 63

According to the text, which of the following is NOT an example of ethical considerations faced by a sales manager?

A)level of sales pressure to place on a salesperson
B)whether to be honest with a salesperson
C)the salesperson's relationship with his or her spouse
D)employees' rights
E)decisions concerning a salesperson's territory

Question 64

Brett is a commission salesperson whose territory for the last three years has been the entire province of Alberta.Through hard work he has greatly increased his company's business in the province.Now her manager has decided to split the state into two territories.Brett can expect:

A)to be given several new "key accounts" to sell to
B)an increase in his earnings
C)a decrease in his earnings
D)to keep all the customers he had before this management decision
E)to be fired for his poor past performance

Question 65

Which of the following is not a principle of PIPEDA?

A)Accountability.
B)Challenging compliance.
C)Individual access.
D)Unlimited data collection.
E)Safeguards.

Question 66

Which of the following statements about ethical dilemmas is true?

A)Ethical dilemmas occur because many ethical standards are not codified.
B)Friends are never the cause of an ethical dilemma.
C)Cultural differences between different parts of the world are never the source of ethical dilemmas.
D)Ethical dilemmas do not occur when right and wrong cannot be clearly identified.
E)Ethical dilemmas do not occur when a person must choose among alternative choices or behaviours--all of which have unethical elements.

Question 67

Kiely Hall is a salesperson who is enrolled in a night MBA program.From time to time, he takes off most of the day before his night class meets in order to prepare assignments that are due that evening without receiving permission from his employer.Which of the following terms best describes Kiely's actions?

A)guilty of misrepresentation
B)misusing company assets
C)cheating
D)moonlighting
E)acting quite ethically

Question 68

Based on the rule "if you don't want your mother or boss to see it, then don't write about it on social media", which of the following scenarios will not get a salesperson in trouble?

A)Salesperson lands a big account and posts about it on his Twitter account.
B)Salesperson avoids critically discussing the competition on LinkedIn.
C)Salesperson is posting personal pictures on the business Facebook account.
D)Salesperson is complaining about his boss on his Instagram account.
E)These could all get the salesperson in trouble.

Question 69

"Caveat Emptor" is a term commonly used in the personal sales world.The term is usually associated with which level of organizational responsibilities?

A)Economic Responsibility.
B)Legal Responsibility.
C)Ethical Responsibility.
D)Discretionary Responsibility.
E)Social Responsibility.

Question 70

Which of the following statements/questions would a person following the "Core Principles" say/ask?

A)"taking corrective action when required by law"
B)"avoiding public stands on social issues"
C)"what is the right thing to do?"
D)"what are the minimum requirements of the contract?"
E)"when in Rome, do as the Romans do"

Question 71

Enda has been an extraordinary salesperson at his company for 15 years.However, for last three weeks he has gotten into a bad habit of coming to work hungover.The company does not want to let go of Enda because he has been a valuable asset for them.Which of the following options is the best possible solution to this issue for both the company and Enda?

A)The company should fire him immediately as there is no other alternative solution to this.
B)The company can give Enda time-off to think things over.
C)The company should offer its EAP options to Enda.
D)The company should do nothing and let Enda come to work as it is.
E)The company should transfer Enda to another department.

Question 72

According to the text, if there are no official policies or procedures in place to handle ethical dilemmas, what should a salesperson faced with an ethical dilemma do?

A)Apply the see-no-evil policy.
B)Apple the hear-no-evil policy.
C)Apply the speak-no-evil policy.
D)None of the these.
E)All of these.

Question 73

Which of the following is not one of the five ethical considerations faced by a sales manager?

A)The level of sales pressure placed on a salesperson.
B)Decisions concerning a salesperson's territory.
C)Being honest with the salesperson.
D)What to do with newly hired personnel.
E)Employee rights.

Question 74

In Canada, the definition of discrimination has most recently been extended to include:

A)Marital status.
B)Sexual orientation.
C)Language.
D)Physical or mental disability.
E)Sexual harassment.

Question 75

The text identifies several benefits associated with organizations that undertake a proactive approach towards creating an employment environment that is discrimination free.Which of the following are benefits employers may receive if a discrimination free environment is supported by senior management?

A)an image as a good employer
B)reduced legal fees
C)high quality work environment
D)lower turnover
E)all of the choices are correct

Question 76

Amanda, who majored in English education, has just been hired for a sales position with a large consumer products company that expects its salespeople to exhibit ethical behaviour.Amanda has asked you what ethical behaviour is.Which of the following would you include in your answer to Amanda?

A)being loyal to your employer
B)being honest
C)following the rules
D)giving 100 percent effort to your work
E)all of the choices are correct

Question 77

John worked his assigned territory building up an impressive portfolio of wholesale customers.Last year, his company decided to restructure and changed assigned sales territories.In this process, some of John's accounts were reclassified as "house accounts." Which of the following statements best describes the term "house account"?

A)mall account that a salesperson typically handles by telephone from his or her home
B)wholesale account located in the same city as the salesperson's place of residence
C)term used to describe accounts for items that are straight-rebuy
D)wholesale account that the salesperson asks the sales manager to remove from his or her territory, usually because of its low volume
E)large account handled by someone from the home office or a key account salesperson

Question 78

Sofia has recently quit her job and she has been asked to return all of the company's belongings, including their laptop.Before returning the laptop, Sofia decides to copy off all of the customer database, so she can use it for her new position at another firm.Sofia has been involved in which of the following unethical practices:

A)Moonlighting.
B)Misusing company's assets.
C)Cheating.
D)Technology theft.
E)Affecting other salespeople.

Question 79

Most salespeople operate at what level of moral development?

A)consensual
B)principled
C)conventional
D)discretionary
E)responsive

Question 80

Which of the following would be an example of a salesperson who is moonlighting unethically?

A)a computer software salesperson taking a weekend MBA program
B)a restaurant equipment salesperson who tries to sell vacation real estate to some of his or her present customers
C)a pharmaceutical salesperson who sells antiques on the Internet
D)a fire equipment salesperson who demonstrates her equipment to prospects by setting real fires
E)a retail sales clerk who tells his wife when store sales are scheduled before they are announced to the public