Question 1

Recent surveys indicate that students are willing to agree to lower salaries if they know their employer is participating in socially responsible activities.

Accepted Answer

Recent surveys have indeed indicated that students are willing to agree to lower salaries if they know their employer is participating in socially responsible activities.

Question 2

Since most ethics violations are small and rather insignificant in nature, employees need to understand that addressing these issues is secondary to making profits. CEOs may be justified in putting these on the back-burner, waiting for more convenient moments to address them.

Accepted Answer

Ethics violations should never be secondary to making profits, no matter how small they may seem. They should always be addressed promptly and appropriately to maintain an ethical workplace culture. Ignoring them can have negative consequences in the long run.

Question 3

An important step in improving U.S. business ethics is for companies to hire whistleblowers.

Accepted Answer

The answer of An important step in improving U.S. business...

Question 4

When stating a firm position on various social and political issues, corporate policies often commit company profits to back these positions.

Accepted Answer

Corporate policies often make commitments to support certain social and political issues, and may allocate resources, including profits, to support these positions.

Question 5

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

Accepted Answer

Fair disclosure, also known as Regulation Fair Disclosure (Reg FD), is a rule by the SEC that requires publicly traded companies to disclose material information to all investors at the same time. This is to prevent selective disclosure or giving certain investors an unfair advantage over others.

Question 6

At Fast-Track Financial Services, it is not unusual for a financial consultant to lose a client to another consultant working out of the same office. Clients have a right to do business with whomever they choose. If it is a high net worth client, with the potential for high commissions on sales, the incentive to steal a fellow co-worker's client exists because the firm's culture has not established integrity based ethics to deter this activity.

Accepted Answer

The passage states that it is not unusual for a financial consultant to lose a client to another consultant in the same office, and that the incentive to do so exists if the client is high net worth and there is potential for high commissions. This suggests that the firm's culture may not have established strong ethical principles to discourage such behavior.

Question 7

Dewy Cheatum encourages his employees to create and use legal loopholes to gain a competitive advantage. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.

Accepted Answer

While using legal loopholes may be morally questionable, as long as it is within the bounds of the law and does not violate any regulations or codes of conduct, it is within compliance-based ethics.

Question 8

Corporate philanthropy refers to the position a firm takes on issues that affect society.

Accepted Answer

The answer of Corporate philanthropy refers to the position a...

Question 9

A charitable donation contributed by a corporation is an example of corporate philanthropy.

Accepted Answer

A charitable donation by a corporation is a classic example of corporate philanthropy.

Question 10

Some investors believe it makes financial as well as moral sense to invest in companies whose practices promote sensitivity towards the environment.

Accepted Answer

Some investors recognize the potential of sustainable and environmentally-friendly companies to deliver long-term financial returns while also benefiting society and minimizing the environmental impact of their operations.

Question 11

Corporate philanthropy refers to the position a firm takes on social and political issues.

Accepted Answer

Corporate philanthropy specifically refers to a company's charitable giving and donations to social causes, rather than its position on these issues.

Question 12

The brewers of Budweiser beer encourage their customers to drink responsibly and "know when to say when." This reflects a compliance-based approach to ethics.

Accepted Answer

The answer of The brewers of Budweiser beer encourage their...

Question 13

As a show of corporate responsibility to your customers, your firm may elect to provide more information regarding your product than the law demands.

Accepted Answer

It is true that a firm can choose to provide more information about their product to show their corporate responsibility towards their customers. There is no legal obligation that limits the amount of information a company can provide to its customers. Providing additional information can help build trust with customers, increase transparency, and demonstrate a commitment to product safety and quality.

Question 14

Cigarette producers label their products with warnings of potential health hazards. Due to the fact that this is a government mandated disclosure, it is part of the industry's compliance-based ethics.

Accepted Answer

The fact that cigarette producers label their products with warnings of potential health hazards is due to government regulations, which fall under the category of compliance-based ethics.

Question 15

One responsibility of business is to satisfy customers by offering them goods and services with real value.

Accepted Answer

One of the primary responsibilities of businesses is to meet the needs and wants of their customers by providing goods and services that offer them value. This is essential for building customer loyalty and satisfaction, which in turn contributes to the success and profitability of the business. Failure to meet this responsibility can result in loss of customers and negative reputation, which can have a significant impact on the business's bottom line.

Question 16

America's business ethics can improve simply by requiring written contracts with employees, customers, and owners. This alone will do the job!

Accepted Answer

While written contracts are important for establishing clear expectations and responsibilities, they alone cannot guarantee ethical behavior. Companies will also need to establish a culture of accountability and ethical decision-making, provide ethical training for employees, and hold individuals and teams accountable for their actions.

Question 17

Corporate social responsibility refers to the concern businesses have for the welfare of society.

Accepted Answer

Corporate social responsibility (CSR) is the concept that businesses have a responsibility to consider the impact of their decisions and actions on society and the environment, in addition to their financial bottom line. It involves a commitment to ethical conduct, environmental sustainability, and social justice.

Question 18

Business issues such as minority hiring practices and pollution control fall under the umbrella of corporate responsibility.

Accepted Answer

Yes, corporate responsibility encompasses a wide range of issues including social, environmental, and ethical concerns such as diversity and inclusion in hiring practices and efforts to reduce pollution and foster sustainability.

Question 19

In light of the fact that over 60% of all theft in retail stores is committed by employees, New Generations Clothier, Inc., requires that managers personally unlock fitting rooms for all sales associates and count the number of items associates take to the fitting rooms. This policy is written in the company manual. Breaking with the policy is grounds for dismissal. It is correct to say that this is part of New Generations' compliance-based ethics.

Accepted Answer

The policy of requiring managers to personally unlock fitting rooms and count items taken by associates is a compliance-based approach to preventing theft by employees. The consequence of dismissal for breaking with the policy reinforces a strict adherence to the established rules and regulations.

Question 20

Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with one, socially irresponsible activity.

Accepted Answer

Customers value consistency and reliability in the behavior of companies. If a company engages in one socially irresponsible activity, it can damage the trust and loyalty that customers have built with that company.

Quiz 4: Demanding Ethical and Socially Responsible Behavior