Question 1

With the passage of the Sarbanes­Oxley Act, the U.S. government provides more protection to workers who engage in:
A) green investing.
B) whistle­blowing.
C) dangerous occupations.
D) union organizing campaigns.

Accepted Answer

The Sarbanes-Oxley Act provides protection to workers who engage in whistle-blowing, which is the act of reporting illegal or unethical activities within a company. The act established protection for employees who provide information to law enforcement agencies, Congress, or other authorities about any violations of SEC rules or regulations, accounting fraud, or other illegal activities. The act makes it illegal for any company to retaliate against whistle-blowers, making it a criminal offense punishable by up to 10 years in prison.

Question 2

Which of the following is NOT an important step in the successful implementation of a code of ethics?
A) Ensuring that the ethical code is different for workers in different regions or countries
B) Ensuring that top management repeatedly and forcefully emphasizes the importance of ethical behavior
C) Being sure that outside parties, such as supplies, distributors, and customers understand the code
D) Setting up a system that allows workers to report illegal or unethical behavior anonymously

Accepted Answer

Ensuring that the ethical code is different for workers in different regions or countries is not an important step in the successful implementation of a code of ethics. In fact, having a consistent ethical code across all regions and countries is important for ensuring ethical behavior across the entire organization.

Question 3

Which of the following statements is true of the steps to be taken by top managers in executing the integrated approach to the implementation of a code of ethics in an organization?
A) They should ensure that their ethics code is both local and global in scope.
B) They should ensure that they do not overcommunicate the importance of ethics.
C) They should separate the ethics training given to employees from mandatory staff training.
D) They should enforce strict laws and penalties against whistleblowers in the organization.

Accepted Answer

Top managers should ensure that their ethics code is both local and global in scope, taking into account the cultural and legal differences across locations where their organization operates. Option B is incorrect as top managers should communicate the importance of ethics repeatedly and consistently in order to make it a core part of the organizational culture. Option C is incorrect as ethics training should be integrated into mandatory staff training. Option D is incorrect as top managers should encourage and protect whistleblowers who report ethical violations, rather than penalize them.

Question 4

The spectrum of how firms address issues concerning social responsibility ranges from:
A) firms that never contribute to socially responsible causes to firms that choose to integrate social responsibility into their strategic plans.
B) firms that tolerate social ambiguity in their strategic plans to firms that never tolerate social ambiguity in their strategic plans.
C) employees who choose not to support social causes in any way to those who donate not only money to social causes but also their own time and effort.
D) firms that do not spend any profits on socially responsible causes to firms that are willing to be unprofitable for the sake of socially responsible causes.

Accepted Answer

The spectrum of how firms address issues concerning social responsibility ranges from firms that never contribute to socially responsible causes to firms that choose to integrate social responsibility into their strategic plans. This answer accurately describes the spectrum of how firms approach social responsibility.

Question 5

Ben & Jerry's is recognized for being a socially conscious trendsetter. As a socially responsible company, this maker of high­quality ice cream is likely to focus on:
A) putting the needs of other stakeholders above the needs of the owners and employees of their company.
B) finding the proper balance between earning profits and meeting responsibilities to other stakeholders.
C) providing its ice cream at the lowest possible price.
D) partnering with nondairy manufacturers.

Accepted Answer

Ben & Jerry's is known for its commitment to social responsibility and balancing profit with other stakeholder responsibilities. They prioritize environmental sustainability, ethical sourcing of ingredients, and supporting their local communities, which often results in higher prices for their products. They also advocate for social issues such as marriage equality and climate change. Therefore, the proper balance between earning profits and meeting responsibilities to other stakeholders is the most likely focus for Ben & Jerry's.

Question 6

Neil noticed that some of his company's sales representatives were behaving in an unethical manner with clients. He intends to report this to top management, which would make him a _____.
A) whistle­blower
B) stakeholder
C) bell­ringer
D) social auditor

Accepted Answer

Neil would become a whistleblower by reporting the unethical behavior of his colleagues to top management. A whistle-blower is an individual who exposes illegal or unethical activities within an organization to the authorities or the public.

Question 7

The outdoor clothing company Patagonia, Inc. pledges one percent of its annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to society. This is an example of _____.
A) social responsibility
B) ethical relativity
C) moral absolutism
D) green marketing

Accepted Answer

Patagonia's pledge to donate one percent of its annual revenue to environmental causes is an example of social responsibility, which involves businesses taking actions that benefit society beyond their immediate financial interests.

Question 8

The outdoor clothing company Patagonia, Inc. pledges one percent of the company's annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to society. This is an example of:
A) social responsibility.
B) ethical relativity.
C) moral responsibility.
D) green marketing.

Accepted Answer

Patagonia's pledge to donate a portion of their revenue to environmental causes demonstrates their commitment to social responsibility, which is the idea that businesses have a duty to contribute positively to society beyond just their financial goals. The other answer choices are not applicable in this scenario.

Question 9

Which of the following is a duty of socially responsible organizations toward customers?
A) Donating a significant amount of money and resources to charitable organizations
B) Using strategies such as planned obsolescence for the firm's growth
C) Delivering consumer value by providing quality products at fair prices
D) Being involved in competitive practices such as collusion and monopoly

Accepted Answer

Socially responsible organizations have a duty to deliver consumer value by providing quality products at fair prices. This ensures that customers receive value for their money and are not exploited by the organization. Donating to charities is a philanthropic activity that is not necessarily a duty, while using strategies such as planned obsolescence or engaging in competitive practices such as collusion and monopoly are unethical and not socially responsible.

Question 10

A canoe and recreation club recently filed suit against a number of manufacturing plants located along the Missouri River. In the suit, the club claimed that the plants had failed to adequately treat the waste that was being dumped into the streams and waterways thus adversely affecting the recreational opportunities available to club members. The canoe and recreation club's with the manufacturing companies that operate these plants is one of _____.
A) quasi­customer
B) stakeholder
C) supplier
D) external user

Accepted Answer

The canoe and recreation club is a stakeholder as they are directly affected by the actions of the manufacturing plants, and have a vested interest in the environmental impact of the plants' waste disposal practices.

Question 11

ZappaStreet is a company that produces gourmet coffee. Its employees, coffee bean growers who supply the company, people who drink its gourmet coffee, and the people who live in the community where it produces the coffee are ZappaStreet's _____.
A) benefactors
B) investors
C) philanthropists
D) stakeholders

Accepted Answer

ZappaStreet's stakeholders are all the individuals or groups who can affect or be affected by the company's operations and decisions. This includes employees, suppliers, customers, and members of the local community. These stakeholders have a vested interest in the success of the company and are affected by its actions, making them critical to the company's success.

Question 12

_____ is the social movement supporting the consumer's right to be informed, to be safe, to choose, and to be heard.
A) Cause­related marketing
B) Consumerism
C) Social marketing
D) Cybermediating

Accepted Answer

Consumerism is the social movement that supports the consumer's right to be informed, to be safe, to choose, and to be heard. It promotes and protects the interests of consumers by demanding improved safety standards, product labeling, and fair business practices.

Question 13

One core responsibility of business is to:
A) view customer complaints as immediate threats.
B) donate a significant amount of money and time to the community.
C) deliver consumer value by providing quality products at fair prices.
D) support and encourage planned obsolescence to increase its profits.

Accepted Answer

One of the core responsibilities of business is to deliver consumer value by providing quality products at fair prices. This ensures customer satisfaction and loyalty, which ultimately leads to profitability. The other options, such as viewing customer complaints as threats or supporting planned obsolescence, would be counterproductive to the goal of delivering consumer value. Donating to the community is a noble pursuit but not a core responsibility of business.

Question 14

Stakeholders are:
A) non­affiliated media organizations that report on a company's performance.
B) vendors and suppliers who do not provide services to a business.
C) ex­employees of an organization.
D) groups or individuals with a personal interest in the performance and actions of a business.

Accepted Answer

Stakeholders are groups or individuals who have a personal interest in the performance and actions of a business. This includes customers, investors, employees, suppliers, and the local community, among others. It is important for businesses to consider the needs and concerns of their stakeholders to build positive relationships and ensure long-term success. Options A, B, and C do not accurately describe stakeholders.

Question 15

A code of ethics should include:
A) executive exemptions because they make decisions based on information other employees don't often have.
B) executive buy­in and top management communication and leading by example.
C) vague representations of ethical standards since every individual is different.
D) a lax approach to enforcement.

Accepted Answer

Executive buy-in and top management communication and leading by example are crucial for the success and adherence to a code of ethics. Executive exemptions, vague representations of ethical standards, and a lax approach to enforcement can all lead to ethical issues and non-compliance.

Question 16

Socially responsible employers:
A) make use of strategies such as planned obsolescence.
B) create a workplace environment that only values profit.
C) provide minimal safety requirements.
D) ensure that hard work, commitment, and talent pay off.

Accepted Answer

Socially responsible employers ensure that hard work, commitment, and talent pay off by offering fair wages, benefits, and opportunities for advancement. They also prioritize the well-being and safety of their employees and may engage in sustainable business practices. Options A, B, and C do not align with socially responsible practices.

Question 17

A person who reports illegal or unethical behavior within an organization is known as a(n) _____.
A) advocate
B) whistle­blower
C) stakeholder
D) grandstander

Accepted Answer

A whistle-blower is a person who reports illegal or unethical behavior within an organization. A whistle-blower raises concerns about wrongdoing occurring within an organization to an internal or external party that can take action to address the issue. An advocate is someone who supports a particular cause, stakeholder is any person or organization that is involved in a particular business or industry, and grandstander is a person who seeks to gain attention or recognition for themselves.

Question 18

When an organization develops a code of ethics, research has indicated that it is important to integrate the code of ethics into which of the following areas?
A) New employee orientation only
B) New employee orientation as well as ongoing training
C) Upper management only
D) Banks in the country of operation

Accepted Answer

It is important to integrate the code of ethics into both new employee orientation as well as ongoing training. This ensures that all employees, regardless of tenure, are aware of and understand the organization's ethical standards and expectations. Integrating the code of ethics into upper management is also important, but it should not be limited to that level of the organization. The choice of D (Banks in the country of operation) is not relevant to integrating a code of ethics into an organization.

Question 19

The spectrum of socially responsible behavior of firms may vary from:
A) no profits to generous profits.
B) no contributions to proactive contributions.
C) intangible ideas to tangible ideas.
D) business initiatives to proactive business dealings.

Accepted Answer

The spectrum of socially responsible behavior of firms can vary from not making any contributions at all to being proactive in making contributions towards social and environmental issues. So option B, which talks about the varying degrees of contributions made by firms, is the best choice. Options A, C, and D do not cover the entire spectrum of socially responsible behavior and are more limited in their scope.

Question 20

Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers.
A) the right to the lowest price
B) the right to purchase an extended warranty
C) the right to be informed
D) the right to return the product in seven days for a full refund

Accepted Answer

The right to be informed is a key principle of consumerism, as consumers have the right to know what they are buying, including information about the product's safety, ingredients, and potential risks. The other choices are not universal rights of consumers but rather options or extras that may or may not be available depending on the specific product or retailer.

Quiz 4: Business Ethics Social Responsibility: Doing Well by Doing Good

With the passage of the SarbanesOxley Act, the U.S. government provides more protection to workers who engage in:

Which of the following is NOT an important step in the successful implementation of a code of ethics?

Which of the following statements is true of the steps to be taken by top managers in executing the integrated approach to the implementation of a code of ethics in an organization?

The spectrum of how firms address issues concerning social responsibility ranges from:

Ben & Jerry's is recognized for being a socially conscious trendsetter. As a socially responsible company, this maker of highquality ice cream is likely to focus on:

Neil noticed that some of his company's sales representatives were behaving in an unethical manner with clients. He intends to report this to top management, which would make him a _____.

The outdoor clothing company Patagonia, Inc. pledges one percent of its annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to society. This is an example of _____.

The outdoor clothing company Patagonia, Inc. pledges one percent of the company's annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to society. This is an example of:

Which of the following is a duty of socially responsible organizations toward customers?

ZappaStreet is a company that produces gourmet coffee. Its employees, coffee bean growers who supply the company, people who drink its gourmet coffee, and the people who live in the community where it produces the coffee are ZappaStreet's _____.

_____ is the social movement supporting the consumer's right to be informed, to be safe, to choose, and to be heard.

One core responsibility of business is to:

Stakeholders are:

A code of ethics should include:

Socially responsible employers:

A person who reports illegal or unethical behavior within an organization is known as a(n) _____.

When an organization develops a code of ethics, research has indicated that it is important to integrate the code of ethics into which of the following areas?

The spectrum of socially responsible behavior of firms may vary from:

Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers.