Deck 2: Making Ethical Decisions and Managing a Socially Responsible Business

Question 1

The only social responsibility that a company has to its investors is an economic responsibility--it must make a profit.

Answer 1

False

Question 2

Amgen, the largest biotechnology company in the world, donates millions of dollars annually to raise the value of science literacy in the community and attract bright young minds into the field of science.Since Amgen, as an employer would benefit from this philanthropy, it would be characterized as strategic giving.

Answer 2

True

Question 3

Corporate philanthropy excludes any noncash donations.

Answer 3

False

Question 4

The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.

Question 5

The most basic responsibility of all businesses is its economic responsibility.

Question 6

To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules.

Question 7

Organizations can be evaluated on two basic dimensions with regard to social responsibility--legality and responsibility.

Question 8

If the company wants employees to take ethical training seriously, the training should not include games.

Question 9

Businesses engage in environmental protection activities to show their responsibility to their general public stakeholders.

Question 10

An organization's first responsibility is to provide a job to employees.

Question 11

Human rights include an individual's right to life, to freedom, and to the pursuit of happiness.

Question 12

Enlightened firms are realizing that empowerment puts too much stress on employees and are eliminating empowerment programs.

Question 13

Summer Dean was walking through the mall and found a gym bag lying on the ground.The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves:

A)consumerism
B)ethics
C)the marketing concept
D)cultural awareness
E)social reciprocity

Question 14

_____ is the set of moral standards for judging whether something is right or wrong.

A)Ethics
B)Social responsibility
C)The marketing concept
D)Consumerism
E)Legality

Question 15

The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible.

Question 16

Ethical decision making begins in the marketing department.

Question 17

Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.

Question 18

All businesses approach ethics the same way.

Question 19

It is a firm's responsibility to its customers to deliver what it has promised.

Question 20

Social responsibility is a voluntary obligation.

Question 21

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society.The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:

A)distributive justice
B)preconventional morality
C)social responsibility
D)utilitarianism
E)consumerism

Question 22

Which of the following statements about ethics training is true?

A)The most effective ethics training begin with the techniques for solving ethical dilemmas.
B)Ethics training is formal training to develop an awareness of questionable business behavior and to practice appropriate responses.
C)Ethical training does not have to be boring.
D)Fewer than half of all American companies have some type of ethics training programs.
E)All of the above statements about ethics training are true.

Question 23

Wal-Mart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council.Wal-Mart's size gives it a unique opportunity to improve the fishing industry.This concern for _____ is one of many initiatives Wal-Mart is introducing to improve our environment.

A)social responsibility
B)consumerism
C)macroeconomics
D)organizational culture issues
E)stakeholder satisfaction

Question 24

Which of the following statements about utilitarianism is true?

A)Utilitarianism is concerned with providing for the needs of the minorities.
B)The concept of utilitarianism supports affirmative action programs.
C)Utilitarianism holds that an action that affects the majority adversely is morally wrong.
D)Utilitarianism is primarily concerned with the legal aspects of business decisions.
E)None of the above statements about utilitarianism is true.

Question 25

Which of the following is an example of an ethical business activity?

A)The employee told several jokes that made fun of blonde women.
B)The employee used the company postage meter to mail letters to her family.
C)The employee reported to his supervisors that a co-worker had misappropriated company funds.
D)The employee went to see a movie one afternoon when she was supposed to be making a sales call.
E)The employee condoned a fellow employee's use of alcohol on the job.

Question 26

Utilitarianism:

A)states that any act that jeopardizes the individual's rights is wrong
B)creates win-win situation
C)is difficult to implement because it is hard to tell how one decision will impact a large number of people
D)supports the belief that life should be fair
E)is easy to implement because of its childlike simplicity

Question 27

U.S.Steel has established an alcoholic rehabilitation program for the city of Pittsburgh.The company provides the facilities and the personnel to operate the program.U.S.Steel is practicing:

A)macroeconomics
B)social responsibility
C)environmental services
D)the marketing concept
E)social welfare

Question 28

One of the keys to ethical business behavior is:

A)how many people near retirement age are in the company
B)how many levels of organization does the business have
C)the perception of the company by its employees
D)the number of rules, regulations, and guidelines the company has
E)how the company's top management conducts themselves

Question 29

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong.This philosophy holds that an action that affects the majority adversely is morally wrong.

A)Distributive justice
B)Preconventional morality
C)Social responsibility
D)Utilitarianism
E)Consumerism

Question 30

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down.The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

A)distributive justice
B)preconventional morality
C)social responsibility
D)utilitarianism
E)consumerism

Question 31

A code of ethics:

A)provides employees with the knowledge of what their firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers
B)can offer a lengthy and detailed set of guidelines to employees
C)is a summary statement of the firm's goals, policies, and priorities
D)is considered by some to be public relations gimmicks
E)is accurately described by all of the above

Question 32

Which of the following statements about human rights is true?

A)Any human right is also a legal right.
B)Distributive justice is a human right.
C)There is no time when it is appropriate to deny an individual his or her legal rights.
D)Human rights are expressed in the U.S.Constitution.
E)None of the above statements about individual rights is true.

Question 33

The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public.These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others.It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.

A)ethical covenant
B)code of ethics
C)moral guidelines
D)ethical oath
E)educational standards

Question 34

In the 21^st century, we define justice as: A an equitable distribution of the burdens and rewards that society has to offer
B)the creation of a situation in which all involved are winners
C)support for the development of legal measures to define ethics
D)a global concept, which is defined the same throughout the world
E)the avoidance of wrong

Question 35

Codes of ethics:

A)may be influential in determining a person's decision-making behavior
B)deal only with the employees' relationships with customers and with no other group
C)contain common ethical dilemmas and provide the appropriate resolutions to employees
D)are typically informal information about how to recognize and deal with ethical problems
E)deal only with external ethical issues and not with internal issues

Question 36

_____ is the concern of businesses for the welfare of society as a whole.

A)Social responsibility
B)Business ethics
C)Consumerism
D)The marketing concept
E)Business morality

Question 37

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

A)equity
B)utilitarianism
C)validity
D)righteousness
E)justice

Question 38

Which of the following is an example of an unethical business activity?

A)The employee uses the company computer to check his results in a network auction.
B)The employee did not report his supervisor for taking several illegal deductions on his income tax report.
C)The employee told several jokes that demeaned Polish people.
D)The salesperson allowed the customer to believe that delivery would be within the next week when the salesperson knew that delivery was at least four weeks away.
E)All of the above are examples of unethical business activities.

Question 39

Which of the following statements about utilitarianism is true?

A)Utilitarianism is designed to create both winners and losers.
B)The application of the utilitarianism concept will only produce winners.
C)There are no negative costs associated with utilitarianism.
D)Using utilitarianism, a manager can accurately calculate how his or her decision will affect the majority of its stakeholders.
E)Utilitarianism is a legal concept-not an ethical one.

Question 40

Which of the following statements about ethics training is true?

A)Ethics training is formal training to develop awareness of inappropriate behavior and to practice appropriate responses.
B)Ethics training is best done informally to allow employees to feel free to admit their mistakes.
C)One of the purposes of ethics training is to get employees to admit when and where they have acted unethically.
D)The most effective ethics training begins with the development of a personal code of ethics.
E)The most effective ethics training involves new recruits; the ethics of long-time employees cannot be changed.

Question 41

Wal-Mart ran a series of ads in trade journals with the following headline: "We're Looking for Quality Products That Are Guaranteed Not to Last." What Wal-Mart was in fact doing was asking its suppliers to develop more environmentally friendly products and to use material that could be recycled.This concern about the environment is one way that Wal-Mart practices:

A)macroeconomics
B)social responsibility
C)environmental services
D)the marketing concept
E)social welfare

Question 42

_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.

A)Empowerment
B)Micromanagement
C)Bureaucratic management
D)Limited autonomy
E)Consumerism

Question 43

Social responsibility goes beyond obligations provided by law or union contract.Two important aspects of social responsibility are that the obligation is both:

A)voluntary and broad
B)public and private
C)state and federal
D)open and lawful
E)internal and external

Question 44

Laws have curtailed smoking, and as a result, the sale of cigarettes is down.Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes.Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade.In terms of the social responsibility pyramid, at which level is the cigarette industry operating?

A)ethical
B)legal
C)economic
D)stakeholder
E)philanthropic

Question 45

_____ are all the individuals or groups to whom a business has a responsibility.

A)Stockholders
B)Consumers
C)Lobbying bodies
D)Stakeholders
E)Investors

Question 46

It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler.If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?

A)ethical
B)legal
C)economic
D)stakeholder
E)philanthropic

Question 47

A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.

A)altruistic
B)societal
C)global
D)philanthropic
E)munificent

Question 48

Which of the following would be stakeholders for a manufacturer of agricultural pesticides?

A)the farmers who buy the products
B)EPA representatives who inspect the plant
C)people who live in the community in which the plant is located
D)employees of the plant
E)all of the above

Question 49

At the base of the corporate social responsibility pyramid is:

A)philanthropic responsibilities
B)economic responsibilities
C)legal responsibilities
D)responsibilities to stakeholders
E)ethical responsibilities

Question 50

A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:

A)obligated its employees to help customers
B)ignored the rights of its customers
C)empowered its employees to help customers
D)created an ethical dilemma
E)ignored the rights of its employees

Question 51

The highest level of the corporate social responsibility pyramid is:

A)philanthropic responsibilities
B)economic responsibilities
C)legal responsibilities
D)responsibilities to stakeholders
E)ethical responsibilities

Question 52

A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime.At which stage of the social responsibility pyramid is the builder most likely operating?

A)ethical
B)legal
C)economic
D)stakeholder
E)philanthropic

Question 53

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

A)stakeholder
B)societal
C)cultural
D)corporate
E)ethical

Question 54

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle.Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight.This yo-yoing is almost as bad for the body as the excess weight.These weight-loss programs are engaged in _____ behavior.

A)legal and irresponsible
B)legal but irresponsible
C)illegal but responsible
D)legal and responsible

Question 55

Social responsibility should extend beyond the shareholders to include:

A)employees
B)suppliers
C)consumers
D)community
E)all of the above

Question 56

Which of the following statements about social responsibility is true?

A)Companies that exhibit corporate philanthropy are not acting socially responsible.
B)The four components of the social responsibility pyramid are of equal importance.
C)The federal government has written laws that require businesses to act socially responsible.
D)The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.
E)All of the above statements about social responsibility are true.

Question 57

In the chocolate market, Green & Black is acting at the _____ responsibilities level of the pyramid of corporate social responsibility when it makes a profit, does so by abiding by the laws, and helps cocoa farmers by agreeing to pay above-market prices for cocoa.

A)stakeholder
B)societal
C)cultural
D)corporate
E)ethical

Question 58

Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:

A)profitability and philanthropy
B)legality and profitability
C)customer satisfaction and profitability
D)legality and responsibility
E)consumerism and responsibility

Question 59

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:

A)investors
B)shareholders
C)partners
D)stakeholders
E)agents

Question 60

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

A)Economic responsibility
B)Financial empowerment
C)Ethical responsibility
D)Corporate philanthropy
E)Corporate benevolence

Question 61

The lowest level on the pyramid of social responsibility has to do with a business's _____ responsibilities.

Question 62

_____ is the practice of tying philanthropy closely to the corporate mission or goals and targeting donations to regions where a company operates.

A)Social philanthropy
B)Social investing
C)Strategic giving
D)Strategic paternalism
E)Consumer-based donating

Question 63

_____ is a set of moral standards for judging whether something is right or wrong.

Question 64

Corporate philanthropy:

A)is the practice of limiting investments to companies that behave in accordance with the investors' code of ethics
B)is defined as the corporation's responsibility to satisfy the needs of its investors
C)can be either a cash or a noncash donation
D)is not a way that many companies today express their social responsibilities
E)is defined by none of the above

Question 65

A _____ provides employees with the knowledge of what their firm expects in terms of their responsibilities and behaviors toward their fellow employees, customers, and suppliers.

Question 66

_____ is the concern of businesses for the welfare of society as a whole.

Question 67

The Home Depot supplies all the materials and the labor expertise for Habitat Homes in various regions of the country where the retail giant has a store.Its top management believes that this type of philanthropy better reflects the company's commitment to the community than simple donations to the American Cancer Society and similar national charities.The Home Depot is using the practice of:

A)social philanthropy
B)social investing
C)strategic giving
D)strategic paternalism
E)consumer-based donating

Question 68

Strategic giving:

A)is less popular today that it was in the 1960s
B)refers to the practice of tying philanthropy closely to the corporation's mission or goals
C)is a subset of social investing.
D)reflects the stakeholder's desire to make corporations act with more economic responsibility and less emphasis on social responsibility
E)is accurately described by all of the above

Question 69

The philosophy of _____ can be used to explain the idea that "people should act so as to greatest good for the greatest number of people."

Question 70

_____ is defined as whatever is considered fair according to the prevailing standards of society.

Question 71

Kraft Foods Inc.joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud - a first-of-its-kind healthy lifestyles educational program designed by Latinos for Latinos.The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems.Kraft donated $2 million to the program's startup.This donation is an example of:

A)social philanthropy
B)social investing
C)strategic giving
D)strategic paternalism
E)consumer-based donating

Question 72

The Healing Garden is the manufacturer and marketer of organic beauty aids.Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:

A)economic responsibility
B)financial empowerment
C)ethical responsibility
D)corporate philanthropy
E)corporate paternalism

Question 73

Social investing:

A)was more popular in the 1960s than it is today
B)has little impact on whether a company chooses to operate with social responsibility
C)is a type of corporate philanthropy
D)is the practice of limiting investments to companies that have ethical policies that match those of the investor
E)is another name for strategic giving

Question 74

Seeds of Change manufactures and markets certified organic entrees.Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities.In other words, Seeds of Change engages in:

A)consumerism
B)social investing
C)strategic giving
D)strategic paternalism
E)consumer-based donating

Question 75

_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.

A)Corporate philanthropy
B)Investor paternalism
C)Strategic giving
D)Social investing
E)Ethical financing

Question 76

Alonzo Dwork will not buy stock in a company that sells bottled water because more than 1.5 million barrels of oil are used annually to make the plastic bottles used for water, and nearly 90 percent of these bottles are disposed of after one use.Dwork is a strong believer in environmental protectionism, and this _____ is his way of expressing that belief.

A)social investing
B)social paternalism
C)strategic giving
D)ethical giving
E)corporate philanthropy

Question 77

The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network.Its donations are an example of:

A)economic responsibility
B)financial empowerment
C)ethical responsibility
D)corporate philanthropy
E)corporate paternalism

Question 78

A group of investors in a retirement fund removed their money from the fund when they learned the fund manager had invested in a gambling casino.The investors' religious beliefs lead them to believe in the fundamental evil of all forms of gambling.These investors were engaging in:

A)social investing
B)social paternalism
C)strategic giving
D)ethical giving
E)corporate philanthropy

Question 79

Which of the following is an example of a trend in ethics and social responsibility?

A)strategic giving
B)the addition of a fifth level to the social responsibility pyramid
C)limits placed on employee empowerment
D)decreased concern about international ethics
E)all of the above

Question 80

The highest level on the pyramid of social responsibility has to do with a business's _____ responsibilities.