Question 1

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope.Compliance with these laws is not always sufficient to determine "right" behavior because

Accepted Answer

Laws cannot cover every aspect of ethical behavior and there may be situations where ethical considerations go beyond legal requirements.

Question 2

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 an example for employees to follow and shows that ethical behavior is valued within the company. The other options promote unethical behavior and do not create a culture of ethical behavior within the workplace.

Question 3

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 interests of different groups, such as shareholders, employees, customers, and society at large. It is important for the management of Spencer Hydraulics Corporation to consider the potential impact of their decision on all relevant stakeholders and try to make a decision that is fair and equitable for everyone involved. The opinions of competitors, the government, and the U.S. Chamber of Commerce may also be important to consider, but they should not be the primary factor in making an ethical decision.

Question 4

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 requires a company to consider the needs and interests of all stakeholders, including employees, owners, consumers, the community, and society as a whole. Therefore, Applied must take into account the needs of all these stakeholders when making business decisions in order to be considered socially responsible. Choice A is incorrect because it only includes some of the stakeholders, while choice B excludes consumers and the community. Choice D is incorrect as it goes against the concept of social responsibility.

Question 5

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

An important feature of online reporting systems like NAVEX Global is that the employee reporting the unethical behavior can do so anonymously. This would alleviate Richard's concern about losing his job if he reports the supervisor and the supervisor finds out who reported him.

Question 6

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

Accepted Answer

Keeping accurate and fair financial records is a requirement for all U.S. companies, including International Civil Engineers, Inc. This can aid in detecting any illegal bribes, as well as serving as a form of transparency and accountability for the company's financial activities. Concealing financial records or making unlawful payments are not ethical or legal solutions. Using third parties to make bribes also does not guarantee legality or prevent detection.

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 percentage of users.How should Olaf decide whether to sell the product? How does the standard of ethics that is applied affect this answer?

Accepted Answer

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

Question 8

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 own unethical behavior undermines the standards she has set for the employees, making it likely that they will also engage in unethical behavior. This creates a negative ethical tone at Pecans, Inc.

Question 9

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 effectiveness of a code of ethical conduct is ultimately determined by the commitment of company leadership to enforcing it. If leaders do not take the code seriously and do not enforce it consistently, employees will not see the code as important or necessary to follow. The other options presented are less likely to determine the effectiveness of the code - employee compliance is important, but it is influenced by the commitment of leadership; a marketing campaign may bring attention to the code, but it does not guarantee adherence to it; and management directing employees to disregard ethical practices themselves would be counterproductive to the goal of establishing a code of ethical conduct.

Question 10

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 conflicts might arise if the firm stops selling this product?

Accepted Answer

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

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

Ethical standards would be violated if Team Logos Merchandising Corporation deals with a company in a developing nation that routinely violates labor and environmental standards. This would involve exploitation of workers and harm to the environment, which are both unethical practices. Even if the company agrees to produce goods at Team Logos's desired price or goes unnoticed by "corporate watch" groups, it does not justify violating ethical standards. Paying workers less than the U.S. minimum wage is also unethical, but it is not explicitly mentioned in the scenario.

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 one of the most effective ways to set a tone of ethical behavior within a business organization. It provides clear guidance to employees on what is expected of them and helps to prevent unethical behavior from occurring in the first place. Discharging employees who do not adhere to the code may be necessary in some cases, but it should not be the primary means of promoting ethical behavior. Posting a marketing campaign online may help to promote the company's ethical tone, but it is not a substitute for a comprehensive code of conduct. Finally, directing employees to "do as we say, not as we do" is not effective and can actually undermine the company's efforts to promote ethical behavior.

Quiz 2: Business Ethics