Question 1

Last year the Bank of Plenty, Inc., made an all-out effort to go paperless. The bank's public relations arm promoted the strategy both internally and externally. Customers were strongly encouraged to utilize the bank's online banking for all their banking needs. Customers could sign up for local workshops where employees were dedicated to showing them how to navigate the bank's new website and find the information they required. The bank's initiative demonstrates:

Accepted Answer

The bank's initiative to go paperless demonstrates an effort to contribute to the green effort as well as cut costs.

Question 2

Enrollment at Tradewinds College has increased by about 3% each year for three years, even though tuition and fees have gone up to help defray the cost of new wind turbines installed on campus to generate enough power to serve the campus buildings and to sell to local business establishments. As a recent student of contemporary corporate social responsibility, you conclude:

Accepted Answer

The fact that enrollment has increased despite the increase in tuition and fees suggests that students are willing to pay for the use of innovative technology to achieve a better environment. This shows that the college is demonstrating good corporate social responsibility by investing in sustainable technology and students are willing to support this effort in the short-term for a long-term benefit.

Question 3

Ethical problems and issues of social responsibility are:

Accepted Answer

Ethical problems and issues of social responsibility are not unique to the United States and can arise in any business or organization, regardless of location or industry. In fact, with the increasing globalization of businesses, it is becoming even more important to consider ethical and socially responsible practices in all aspects of a company's operations.

Question 4

As the number of multinational corporations increases, we are experiencing international ethical dilemmas. One very real concern during the past decade is the human rights abuses in sweatshops where several multinationals contract manufacture their products, in exchange for cheap labor. Several retailers have banned together to set ethical standards in foreign factories. Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?

Accepted Answer

This choice accurately summarizes the challenges faced by multinational corporations in determining a fair living wage for workers in developing countries, and the willingness of customers to pay more for products made in ethical factories with better working conditions.

Question 5

Top leaders in government and business today are:

Accepted Answer

In recent years, there has been greater public scrutiny and demand for transparency and ethical behavior from both government and business leaders. This has resulted in a trend toward holding these leaders to higher ethical standards than in the past.

Question 6

The Foreign Corrupt Practices Act deals with:

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) specifically deals with bribery in order to obtain business and prohibits the offering or giving of anything of value to foreign officials in exchange for business advantages. It applies to all U.S. persons and companies as well as foreign companies that have securities listed in the U.S. or conduct business in the U.S.

Question 7

Which of the following is an unresolved ethical issue that surrounds global trade?

Accepted Answer

Labor standards, particularly in developing countries, continue to be a major ethical issue in global trade. Many companies are accused of exploiting workers and violating their rights by paying low wages, providing unsafe working conditions, and exposing them to hazardous chemicals. The issue of labor standards raises questions about the moral obligation of companies to treat workers fairly and ethically, and the responsibility of governments to enforce international labor regulations. Product quality, transportation issues, and time to market issues are all important considerations in global trade, but they are not necessarily ethical issues.

Question 8

Last week, the Local Citizens for a Greener America sent a formal document to Chipper's Golf Resort asking the private club to measure its carbon footprint and publicly disclose the amount of fertilizer and other carbon-emitting substances that it uses on its two award-winning golf courses. LCGA is an example of ___________.

Accepted Answer

The Local Citizens for a Greener America (LCGA) is described as a "watchdog group" in the given passage. This suggests that they are a group that monitors and advocates for certain issues or causes, in this case, environmental sustainability at Chipper's Golf Resort. They are not an employee organization, a disgruntled nonprofit organization, or a public interest group, as none of these descriptions accurately reflect their stated purpose or actions.

Question 9

The boxed material entitled Reaching Beyond Our Borders that told the story about Joe, the telecommunication employee, suggests that U.S. firms operating overseas are:

Accepted Answer

The answer of The boxed material entitled Reaching Beyond Our...

Question 10

Hendry HVAC, a heating and cooling company headquartered in Milwaukee, Wisconsin, permits its employees to volunteer for nonprofit organizations, as part of their paid company time. According to recent findings, which of the following statements best explains this company's action?

Accepted Answer

The company most likely permits its employees to volunteer for nonprofit organizations because it is less costly than making large philanthropic contributions. This also helps the company's image in the community and can improve employee morale.

Question 11

Which of the following indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers?

Accepted Answer

The decision of Phillips-Van Heusen to cancel orders from suppliers that violate its ethics code indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers. This decision shows that Phillips-Van Heusen values ethical behavior from its suppliers and is willing to take action if those standards are not met. This trend is becoming more prevalent as consumers and investors demand higher levels of social responsibility from businesses.

Question 12

International issues of social responsibility and ethical behavior are:

Accepted Answer

International issues of social responsibility and ethical behavior are complex and context-dependent, and therefore not always clear-cut. U.S. firms may encounter different cultural values and practices that require them to navigate and negotiate with stakeholders in ways that may differ from their home country. Therefore, U.S. firms must prepare themselves for these complex and dynamic environments if they are to engage ethically and responsibly with their global stakeholders.

Question 13

According to the Reaching Beyond Our Borders box, which of the following is true?

Accepted Answer

The Reaching Beyond Our Borders box states that "Corporate ethics can clash with cultural ethics."

Question 14

J. D. started working for an export trading company right out of college. His job took him to Asia on several occasions, where he interacted with manufacturers and got to practice his limited Chinese. He was amazed to see the difference in working conditions in the developing nations where he visited, compared to similar operations in the U.S. The expectations of workers were not the same. J.D.'s experience is an example of: 
A) corporate philanthropy differences in different countries.
B) social responsibility differences between similar firms, but in different countries.
C) differences in corporate social initiatives in foreign nations.
D) the need for whistleblowers abroad.

Accepted Answer

J.D.'s experience highlights the differences in social responsibility between similar firms in different countries.

Question 15

Blake Mycoskie started a shoe business known as TOMS. As a social entrepreneur, Mr. Mycoskie takes the concept of ___________________ to a new level. TOMS social causes are directly related to the firm's expertise: selling shoes.

Accepted Answer

The concept of corporate social initiative refers to a business's proactive efforts to make a positive social impact beyond its immediate financial goals or legal requirements. TOMS is an example of this because it has built social causes such as providing shoes to children in need into its business model. Unlike corporate philanthropy, in which a business simply donates money or resources to social causes, TOMS uses its expertise in shoe-selling to actively contribute to solving social problems.

Question 16

When working with international firms, U.S. businesses:

Accepted Answer

U.S. businesses should expect socially responsible behavior from their international business partners. It is important to hold firms accountable for ethical standards, regardless of their location. Business relationships built on mutual respect, trust, and accountability are essential to sustained success.

Question 17

Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were:

Accepted Answer

The individuals who received the information and traded on it were engaging in insider trading, which is illegal. They used information that was not publicly available to make a profit, which gives them an unfair advantage over other investors.

Question 18

Idle Time Gaming, Inc., would like its employees, customers, and the general public to be aware of the activities and programs it has achieved for the community over the past year. The company might consider performing a:

Accepted Answer

The best choice for the company would be to perform a social audit, as it is a comprehensive evaluation of the company's social and environmental performance. This would enable the company to assess its impact on society and the community, and create transparency in its operations. A social audit would be the most appropriate way for Idle Time Gaming to showcase its activities and programs to its stakeholders.

Question 19

Several outside groups regularly monitor the activities of Metro Chemical Corporation. These groups are interested in the firm's involvement and enforcement of their ethical and social responsibility policies. Who of the following is the least likely to be among the "watchdog" groups?

Accepted Answer

The World Trade Organization is not typically a watchdog group for individual companies' ethical and social responsibility policies. Their focus is on promoting free trade among member countries. The other options are more likely to be monitoring Metro Chemical Corporation's activities from an ethical and social responsibility standpoint.

Question 20

Management's philosophy at Apple, Inc., has often stated that a fit body contributes to more productivity at work. Apple provides exercise facilities at most of its sites across America, and permits employees to use a half-hour of work time each day to relieve stress through exercise. This serious position on physical fitness is part of Apple's ___________.

Accepted Answer

Apple's serious position on physical fitness is a part of its corporate policy.

Quiz 4: Demanding Ethical and Socially Responsible Behavior