Question 1

Margaret is the top manager of Pecans,Inc.She sets strict ethical standards for all employees.Margaret,however,often takes some of the company's best nuts and sells them from her house.The ethical tone at Pecans,Inc.is

Accepted Answer

Margaret's unethical behavior undermines the ethical standards she has set for her employees. It creates a culture of hypocrisy, where employees may also feel justified in acting unethically if they see their boss doing it. The ethical tone at Pecans, Inc. is therefore not likely to be good.

Question 2

Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach,to be considered socially responsible when making a business decision,Applied must take into account the needs of

Accepted Answer

The stakeholder approach to business ethics emphasizes the importance of considering the needs and interests of all stakeholders - individuals or groups who have a stake in or are affected by a company's decisions and actions. As Applied Business Corporation makes and markets its products nationwide, it is responsible not only to its employees and owners but also to its consumers, the community, and society as a whole. Therefore, the socially responsible decision-making process should take into account the needs of all these stakeholders.

Question 3

Straitway Company encourages its managers to behave ethically,reasoning that the employees will take their cues from management.One of the most important ways to create and maintain an ethical behavior workplace is for management to

Accepted Answer

By demonstrating a commitment to ethical decision making, managers set the tone for the organization and create a culture where employees are encouraged to behave ethically. The other choices promote unethical behavior and are not conducive to maintaining an ethical workplace.

Question 4

At a meeting of employees,Fuel Injection Design & Manufacturing,Inc.'s managers announce the creation of a new company-wide code of ethical conduct and the initiation of an ad campaign to publicize the new code.They also say that any employees who do not adhere to the code will be discharged.The effectiveness of this code will be determined by

Accepted Answer

The answer of At a meeting of employees,Fuel Injection Design...

Question 5

Olaf,an executive with Pharma Product Distribution,Inc.,has to decide whether to market a product that might have undesirable side effects for a small per-centage of users.How should Olaf de-cide whether to sell the prod-uct? How does the standard of ethics that is applied affect this answer?

Accepted Answer

The answer of Olaf,an executive with Pharma Product Distribution,Inc.,has to...

Question 6

Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with a company in a developing nation that

Accepted Answer

Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with a company in a developing nation that routinely violates labor and environmental standards. By doing business with such a company, Team Logos would be indirectly supporting the unfair treatment of workers and the destruction of the environment, which is considered unethical by many organizations and individuals.

Question 7

To assist in detecting illegal bribes,International Civil Engineers,Inc.,and all other U.S.companies must

Accepted Answer

Keeping accurate financial records is crucial in detecting illegal bribes. It helps to identify any discrepancies or suspicious transactions and investigate them further. Concealing records or making unlawful payments would only make detecting illegal bribes more difficult and could result in legal consequences. Making bribes through third parties also does not guarantee that they will not be detected or considered illegal.

Question 8

Richard suspects his supervisor of unethical accounting practices.However,he does not want to lose his job if he reports the supervisor and the supervisor finds out who reported him.An important feature of online reporting systems like NAVEX Global is

Accepted Answer

The important feature of online reporting systems like NAVEX Global is that the employee reporting the unethical behavior can do so anonymously. This ensures that the employee can report the misconduct without fear of retaliation or losing their job.

Question 9

A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that its decision will have on

Accepted Answer

Ethical dilemmas often involve balancing the needs and interests of different groups of stakeholders. The management of Spencer Hydraulics Corporation needs to consider how their decisions will impact their employees, customers, shareholders, and the wider community. It is important to make decisions that are fair and just for all parties involved. Choices B, C, and D do not directly address this ethical dilemma.

Question 10

MeatMen,Inc.spends a great deal of money and effort to ensure that all employees are safe on the job,that all products are safe for consumers,and that the environmental impact of the corporation is minimal.MeatMen appears to strongly believe in the concept of

Accepted Answer

MeatMen's efforts align with the concept of corporate social responsibility (CSR), which refers to a company's commitment to acting ethically and contributing to economic development while also addressing the social and environmental impacts of its operations. By prioritizing employee safety, consumer safety, and environmental impact, MeatMen is demonstrating its commitment to CSR. The other options do not accurately reflect MeatMen's actions or beliefs.

Question 11

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way.Does the firm owe an ethical duty to take this product off the market? What con-flicts might arise if the firm stops selling this product?

Accepted Answer

The answer of Recreation & Sports Equipment Corporation sells a...

Question 12

Ergonomic Corporation convenes its employees for its managers to announce (1) a new company-wide ethical code of conduct,(2) an ad campaign to publicize the new code,and (3) the discharge of employees who do not adhere to the code.One of the most effective ways to set a tone of ethical behavior within a business organization is

Accepted Answer

Creating an ethical code of conduct is an effective way to set a tone of ethical behavior within a business organization. It provides clear guidelines for employees to follow and sets expectations for ethical behavior. The ad campaign and discharge of employees who do not adhere to the code can also reinforce the importance of ethical behavior, but without a clear code of conduct, employees may not know what is expected of them. Directing employees to "do as we say, not as we do" sends a mixed message and undermines the credibility of the ethical code of conduct. Posting a marketing campaign online is helpful in promoting ethical behavior, but it should be used in conjunction with a clear code of conduct.

Quiz 3: Ethics and Business Decision Making