Question 1

Our government uses the tax codes to indirectly influence our behavior.

Accepted Answer

The government can use tax deductions or credits to incentivize certain behaviors, such as investing in renewable energy or donating to charity, while also using higher taxes on certain products or services to discourage their consumption or use, such as tobacco or alcohol.

Question 2

Organizations that take an obstructionist approach to social responsibility meet their basic legal obligations but nothing more.

Accepted Answer

An obstructionist approach to social responsibility involves companies doing as little as possible and may even involve attempts to deny or cover up violations, rather than simply meeting their basic legal obligations.

Question 3

A manager who discriminates against a fifty year old man in hiring is exhibiting both unethical and illegal behavior.

Accepted Answer

Discrimination based on age is prohibited by the Age Discrimination in Employment Act (ADEA) and is illegal. It is also considered unethical to judge a candidate solely based on their age rather than their qualifications and ability to perform the job duties.

Question 4

Secrecy and confidentiality are major considerations in the relationship of the employee to the firm.

Accepted Answer

Secrecy and confidentiality are crucial for maintaining trust and protecting the sensitive information of the firm. Employees are expected to maintain these standards and breach of confidentiality can result in serious consequences.

Question 5

If competitors from different countries are giving bribes to get contracts in developing countries, it is acceptable under U.S. law that a U.S. company can do the same if it can show competitive reasoning.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies from giving bribes to foreign officials to get contracts or other business advantages in foreign countries, regardless of whether competitors are also engaging in bribery. It is illegal for a U.S. company to give bribes to win contracts or gain any unfair advantage, even if the company can show competitive reasoning.

Question 6

Organizations themselves do not have ethics.

Accepted Answer

Organizations are made up of people who have ethics, but the organization as a structure or entity itself does not have ethics. It is the people within the organization who make ethical or unethical decisions.

Question 7

Procedural justice refers to people's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization.

Accepted Answer

Procedural justice refers to people's perceptions of the fairness of the processes used to determine the distribution of rewards, not the distribution itself, which is referred to as distributive justice.

Question 8

After Japan won the World Cup one of its players apologized profusely for appearing to criticize the coach. American athletes in many sports criticize fellow players, coaches, and managers. This is an example of how ethical behavior is similar across cultures.

Accepted Answer

The statement highlights a difference in cultural norms regarding public criticism. In Japan, public criticism of authority figures is typically avoided out of respect, while in the United States it may be more accepted or even encouraged in certain contexts. Therefore, this is an example of how ethical behavior can differ across cultures.

Question 9

A manager paying an employee less than he deserves, simply because the manager knows the employee cannot afford to quit or risk losing his job by complaining, might be considered unethical.

Accepted Answer

This situation involves taking advantage of the employee's vulnerability and is not considered fair or ethical behavior on the part of the manager.

Question 10

Ethics are cultural beliefs about whether behavior, actions, or decisions are right or wrong.

Accepted Answer

The answer of Ethics are cultural beliefs about whether behavior,...

Question 11

The Internet is also seen as having the potential to play an important role in natural resource conservation, as many e-commerce businesses and transactions are reducing both energy costs and pollution.

Accepted Answer

Many e-commerce businesses operate without physical storefronts, reducing the need for energy consumption and decreasing pollution associated with transportation-related emissions. Additionally, online marketplaces for used products are helping to extend the life of items that might otherwise be discarded, contributing to a more sustainable and environmentally friendly economy.

Question 12

Information technology and privacy continues to be an ethical issue.

Accepted Answer

Information technology and privacy have become increasingly intertwined, with companies and individuals collecting and sharing data through the use of technology. This has raised ethical concerns around the collection, use, and protection of personal information. As a result, information technology and privacy remain an ongoing ethical issue.

Question 13

A code of ethics will ensure ethical behavior by employees.

Accepted Answer

A code of ethics provides guidelines for ethical behavior but does not guarantee that employees will act ethically; adherence depends on individual choices and organizational culture.

Question 14

The Sarbanes-Oxley Act requires CIOs to personally vouch for the truthfulness and fairness of their firms' financial disclosures.

Accepted Answer

The Sarbanes-Oxley Act requires CEOs and CFOs to personally vouch for the truthfulness and fairness of their firms' financial disclosures, but not CIOs.

Question 15

Trust is indispensable to any business transaction.

Accepted Answer

Trust is necessary for building relationships and establishing credibility in business transactions. Without trust, people are less likely to do business with an individual or company, and it can lead to a breakdown in communication and collaboration.

Question 16

Informational justice relates to the degree of fairness people see in how they are treated by others in their organization.

Accepted Answer

Informational justice refers to the perceived fairness of the communications provided to employees from authorities, not how they are treated by others in their organization. This involves the transparency and thoroughness of information given.

Question 17

Westerman is an American company that makes cylindrical steel containers used to safely ship uranium.  A Westerman executive is accused of bribing Russian officials to win contracts.  This would be illegal in the U.S., but is permissible in Russia.

Accepted Answer

Bribing foreign officials to win contracts is illegal under the U.S. Foreign Corrupt Practices Act (FCPA), regardless of whether such practices might be permissible or overlooked in other countries.

Question 18

The ethical norm justice, means whether a particular act optimizes what is best for the organization's constituencies.

Accepted Answer

The ethical norm justice means treating individuals fairly and impartially, without discrimination or bias. It does not specifically refer to what is best for the organization's constituencies.

Question 19

The existence of laws and regulations makes it necessary for companies that strive to be responsible to their stakeholders to concentrate first and foremost on government.

Accepted Answer

While laws and regulations are important, responsible companies also focus on ethical practices, social responsibility, environmental sustainability, and stakeholder interests beyond just government compliance.

Question 20

The highest degree of social responsibility that an organization can exhibit is referred to as the proactive stance.

Accepted Answer

The proactive stance is the highest level of social responsibility, where an organization actively takes actions to prevent social, ethical, and environmental issues before they occur. This involves going above and beyond legal requirements and industry standards to make a positive impact on society.

Quiz 4: Responding to the Ethical and Social Environment