Question 1

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 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 corporate social responsibility requires a company to consider the needs and interests of all its stakeholders, including employees, owners/shareholders, consumers, the community, and society as a whole. Therefore, in order to be socially responsible, Applied Business Corporation must take into account the needs of all these stakeholders. Option A is incorrect because it only includes consumers, the community, and society, leaving out employees and owners. Option B is also incorrect because it only includes employees and owners, leaving out other important stakeholders. Option D is clearly incorrect as a company cannot be socially responsible by ignoring its stakeholders.

Question 3

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 acts as a guiding principle for all employees, sets clear expectations for behavior, and helps to create a culture of integrity within the company. Discharging employees who do not adhere to the code may be necessary, but it should not be the primary way to set a tone of ethical behavior. Publicizing the ethical code of conduct through an ad campaign is a good idea, but it is not the most effective way to create a culture of ethical behavior. Directing employees to "do as we say, not as we do" is not a recommended practice as it creates a double standard and undermines the credibility of the organization's ethical standards.

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

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 actions undermine the ethical standards she sets for her employees, which can cause a lack of trust and respect amongst her staff. This can lead to a poor ethical tone in the company, as the employees may feel that the standards do not apply to everyone equally.

Question 6

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, Inc.'s efforts to ensure employee safety, product safety, and minimal environmental impact indicate that the company believes in corporate social responsibility, which involves taking into account the impact of the company's actions on society and the environment in addition to maximizing profits.

Question 7

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 8

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

Accepted Answer

Ethical decision making involves considering the impact of choices on different stakeholders. Therefore, it is important for the management of Spencer Hydraulics Corporation to consider the effect their decisions will have on different groups, such as employees, customers, suppliers, and shareholders. Choosing option A would prioritize the well-being of all stakeholders and align with ethical principles.

Question 9

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

Demonstrating a commitment to ethical decision making sets a tone for the entire organization to prioritize ethical behavior. The other options either promote unethical behavior or fail to address the importance of ethical behavior.

Question 10

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

Accepted Answer

Keeping records that "accurately and fairly" reflect financial activities will allow for transparency and accountability, making it easier to detect any illegal bribes that may have occurred. Concealing records or making bribes through third parties would only serve to further hide illegal activity, while permitting unlawful payments goes against ethical and legal standards.

Question 11

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

Accepted Answer

The ethical standards can be violated if the company deals with a supplier that repeatedly violates labor and environmental standards. It is not ethical to benefit from the exploitation of workers or the degradation of the environment. Therefore, Team Logos Merchandising Corporation should not do business with a company that does not meet ethical standards.

Question 12

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

Online reporting systems like NAVEX Global allow employees to report unethical behavior anonymously, which can help to protect them from retaliation by their supervisor. This can encourage employees to speak up and report potential ethical violations without fear of losing their job or facing other consequences.

Quiz 3: Business Ethics