Question 1

__________is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard.

Accepted Answer

Consumerism is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard. It promotes the idea of protecting consumer interests and ensuring fair trade practices by businesses. Green marketing refers to the marketing of eco-friendly products, while economic liberalism is a political ideology emphasizing free trade and minimal government intervention in the economy. Outsourcing refers to the practice of hiring an external source to perform tasks that were previously handled in-house.

Question 2

Five individuals get food poisoning after consuming aerated drinks of a well-known company. Following this incident, the public demands an inquiry into the company's manufacturing processes. This demand by the public represents _____.

Accepted Answer

Consumerism is the idea that consumers should have a voice and be able to make informed decisions about what they purchase. In this scenario, the public is demanding an inquiry into the company's manufacturing processes, which is a reflection of the public's desire to have access to accurate information and safe products. Protectionism refers to the practice of protecting domestic industries from foreign competition, while commercialism refers to the promotion of commercial interests, and integralism is not a widely recognized economic concept.

Question 3

CappaStreet is a company that produces gourmet coffee. The company's employees, the coffee bean growers who supply raw materials to the company, the people who purchase its coffee, and the people who live in the community where the company has its production unit are CappaStreet's:

Accepted Answer

CappaStreet's employees, coffee bean growers, customers, and community members are all groups that can affect or be affected by the company's actions, making them stakeholders. As a result, CappaStreet must consider the needs and desires of all of these groups when making business decisions.

Question 4

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____.

Accepted Answer

Lily is a whistle-blower as she reported the misbehavior of the department head to the store manager. A whistle-blower is an individual who exposes information about unethical or illegal activities within an organization.

Question 5

Rene's boss asks her to perform a social audit of the company following mass media's harsh criticism of the company's ethical standards. In this case, Rene will first:

Accepted Answer

The first step in performing a social audit is to establish the goals required to conduct the audit. The goals will dictate what data needs to be collected and analyzed in the audit. Only after the goals have been established can Rene determine how to measure achievement of those goals, evaluate if the firm had achieved its initial social responsibility objectives, and quantify the involvement of the firm in societal development activities.

Question 6

Consumerism is a widely accepted social movement. Which of the following can be considered a consumer's right?

Accepted Answer

The answer of Consumerism is a widely accepted social movement....

Question 7

In the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?

Accepted Answer

Advocating a forceful, integrated approach to ethics involves ensuring that the company's ethics code is both local and global in scope, as ethical issues can arise in any part of the world. It also involves integrating ethics into mandatory staff training and ensuring that top managers communicate the importance of ethics consistently and not just occasionally. Enforcing strict laws against whistle-blowers does not align with an ethical approach to business.

Question 8

Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent business trip because I need the money, and my company has not given me a raise in the past year." In this scenario, Janet is an employee who views ethics as _____.

Accepted Answer

Janet's viewpoint is an example of moral relativism, which is the belief that morality is relative to an individual's beliefs and culture. She believes that lying is wrong, but also believes that overstating her expense account is acceptable in her current situation. This view is relativistic because her moral judgment is based on her personal circumstances, rather than a universal, objective ethical principle.

Question 9

In the context of social responsibility,__________include employees and investors who have a personal interest in the performance and actions of an organization.

Accepted Answer

Stakeholders include individuals or groups that have a direct or indirect interest in the performance and actions of an organization. This can include employees and investors, as well as customers, suppliers, and the communities in which the organization operates. Social responsibility requires organizations to consider the impact of their actions on all stakeholders, not just shareholders or owners.

Question 10

In the context of legal and ethical dimensions of business conducts, it is illegal but ethical to:

Accepted Answer

Collaborating with other medical clinics to guarantee low prices in low-income counties can be seen as ethical because it aims to make healthcare more affordable for low-income individuals. However, it may be illegal due to antitrust laws that prohibit collusion and price-fixing among competitors.

Question 11

FreshBean is an online grocery delivery service. Its employees and customers, the farmers from whom the company obtains its products, and the people who live in the community where the company operates are FreshBean's _____.

Accepted Answer

The term "stakeholders" refers to individuals or groups who have an interest in or are affected by the actions of a company or organization. In this scenario, FreshBean's employees, customers, farmers, and community members are all stakeholders as they have a stake in the success and sustainability of the company. A) Union organizers and B) shop stewards are specific roles within labor unions and do not apply to this scenario. C) Philanthropists are individuals who donate money or resources to support charitable causes and are not relevant to this business model.

Question 12

In the context of an organization dedicated to promoting corporate social responsibility, which of the following statements is true of measuring a company's success by evaluating a double bottom line?

Accepted Answer

Evaluating a double bottom line involves measuring both financial and social performance. While traditional financial indicators such as earnings can be included, the focus is on evaluating a company's social or environmental impact. Choice A is incorrect because it only addresses financial measures, while choice C is incorrect because it focuses on individual performance rather than evaluating the company as a whole. Choice D is incorrect because it assumes a preference for profit over social contributions, which is not necessarily the case with a double bottom line approach.

Question 13

Angorasia, an Asian country, supports a free market system. The flexible economy of the country makes it fairly easy for new sellers to enter the market, which in turn gives buyers a variety of choices in terms of products and services. Given this information, it can be said that Angorasia supports _____.

Accepted Answer

Angorasia's support for a free market system and flexible economy indicates a focus on providing a variety of choices for buyers, which aligns with the principles of consumerism.

Question 14

Quinbeck Inc., a computer manufacturing company, annually donates 6% of its total profits to an orphanage. The company also provides free personal computers to children to promote learning among them. Given this information, Quinbeck Inc. most likely engages in _____.

Accepted Answer

Quinbeck Inc.'s actions of donating profits and providing free computers align with the practice of corporate philanthropy, where a company gives back to the community through charitable donations and actions.

Question 15

Antonsen Inc., an accounting firm in Texas, follows certain guidelines while providing consulting services to a firm. One such guideline is to limit the services it provides to the firms it audits. The CEO of Antonsen Inc. is also required to certify the validity of the company's financial statements. In this scenario, Antonsen Inc. most likely abides by the requirements of the _____.

Accepted Answer

The Sarbanes-Oxley Act requires accounting firms to limit their consulting services to the firms they audit and mandates that the CEO of the auditing firm certify the validity of the client company's financial statements. Therefore, Antonsen Inc.'s guidelines are in compliance with the Sarbanes-Oxley Act. The Blaine Act, Landrum-Griffin Act, and Dawes Act do not pertain to accounting or auditing regulations.

Question 16

Heleus Oil & Gas Company routinely performs emission tests to keep a check on the emissions produced by its corporate operations and find new ways to reduce them significantly. In this scenario, Heleus Oil & Gas Company is tracking its:

Accepted Answer

Emission tests are performed to keep a check on emissions produced by corporate operations, which fall under Scope 1 emissions. Scope 2 emissions are indirect emissions from the consumption of purchased energy, while Scope 3 emissions include all indirect emissions from sources outside the company's operations, such as the supply chain and even customer use of the company's products. Scope 4 emissions do not exist as a recognized category in the GHG Protocol Corporate Standard.

Question 17

Which of the following statements is true of ethics?

Accepted Answer

Just because an action is legal does not necessarily mean it is ethical. There are many situations where laws may not reflect ethical standards or where actions may be legal but still considered unethical.

Question 18

In the context of ethics and social responsibility in the global arena, which of the following statements is true of a business's responsibility to workers abroad?

Accepted Answer

When deciding living wages, companies must bring together their own values with the laws of both the United States and their host countries. This statement recognizes the importance of understanding and respecting the local laws and standards of the host country while also upholding the values and standards of the home country. It acknowledges that living wages may differ from country to country, and that companies must take these differences into account. It also reflects the idea that companies must take responsibility for the well-being of their workers, including providing fair wages that enable a decent standard of living.

Question 19

The residents of North Barkminster, a suburb in the European country of Geratow, protest against a large corporation that is newly established in the area. They complain that there has been a rise in respiratory illnesses among the people because of the pollution caused by employee commute following the company's establishment. In this scenario, the residents of North Barkminster are protesting against the company's _____ emissions.

Accepted Answer

The answer of The residents of North Barkminster, a suburb...

Question 20

The employees of a multinational company follow a standardized and formal set of written guidelines that help them make right decisions in various situations. These guidelines have been translated into 20 languages and are followed by employees across all branches of the company. One of the guidelines is to include all supervisors in discussions regarding instances of violation of rules. In this scenario, the multinational company has:

Accepted Answer

The standardized and formal set of written guidelines that help employees make right decisions in various situations, including the guideline to include all supervisors in discussions regarding instances of violation of rules, suggest that the company has created a code of ethics for its members. The fact that these guidelines have been translated into 20 languages and are followed by employees across all branches of the company indicates that this code of ethics is a global one.

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