Question 1

Moia is a successful entrepreneur who owns several popular pastry shops.She often imports macadamia nuts from countries with poor economic conditions,which has furthered her desire to help improve the lives of the people living there.How can Moia BEST exhibit corporate social responsibility to the citizens of these nations?
A) by including labels on her products indicating where the nuts come from
B) by hiring people who have traveled to these nations
C) by opening pastry shops in these countries that would create jobs for the citizens there
D) by purchasing the nuts more regularly
E) by shipping free pastries to these nations

Accepted Answer

C)A company that is socially responsible makes ethical decisions in the area of ethical sourcing and procurement, and community and "good neighbor" policies.

Question 2

Which of the following statements about corporate social responsibility is TRUE?
A) It cannot legitimately be influenced by a company's competing interests.
B) It does not include issues raised by marketing and advertising.
C) It must be concerned only with the well-being of employees and consumers.
D) Environmental matters must be addressed at the expense of profits.
E) It benefits a business by increasing efficiency and sales.

Accepted Answer

E)Having a strong and clear ethical policy, or taking part in corporate social responsibility, leads companies to use materials efficiently, minimize waste, and increase sales through product innovation and environmentally and ethically conscious labeling.

Question 3

When evaluating a decision based on the ethical norm of utility,a manager is MOST likely to consider which of the following questions?
A) Is the decision consistent with what we regard as fair?
B) Does the decision respect the rights of the individuals involved?
C) Is the decision consistent with people's responsibility to each other?
D) Is the decision consistent with best management practice?
E) Does the decision optimize the benefits for those who are affected by it?

Accepted Answer

E)The ethical norm of utility addresses those affected by a decision and whether the decision optimizes what is best for those individuals.

Question 4

When evaluating a decision based on the ethical norm of rights,a manager is MOST likely to consider which of the following questions?
A) Is the decision consistent with what we regard as fair?
B) Does the decision respect the individuals involved?
C) Is the decision consistent with people's responsibilities to each other?
D) Does the decision optimize the benefits for those who are affected by it?
E) Does the decision comply with current legislation?

Accepted Answer

B)The ethical norm of rights addresses the rights of individuals involved with the decision and whether the decision respects those individuals' rights.

Question 5

Which of the following steps would be LEAST likely to help a business develop and maintain an ethical environment?
A) Ensure that a mission statement is in place.
B) Communicate standards of behavior to all employees.
C) Implement ethics training programs.
D) Offer orientation programs so that new employees understand the business's ethical standards.
E) Trust that management-level employees will act ethically.

Accepted Answer

E)An ethical environment is created by modeling ethical behavior, and to do this there needs to be clear communication of standards coming from the top down; it is not enough to trust that management will act ethically on its own.

Question 6

Wei-Yin runs a small,socially responsible business in which she sells her own watercolor paintings.Wei-Yin has a passion to help aspiring artists in her area achieve their dreams,but so far has assisted only a few of them.Which of the following would MOST likely be a reason for this?
A) Wei-Yin does not have much time or money to devote to this desire.
B) Wei-Yin is consumed with making a large profit in her business.
C) Wei-Yin fears that helping more artists will mean more competition for her company.
D) Wei-Yin does not have a sound ethical code in place.
E) Wei-Yin does not wish to engage in corporate philanthropy.

Accepted Answer

A)If Wei-Yin has an interest in helping other artists but does not carry it out fully, it is most likely because she is not able to fully pursue it with limited resources.

Question 7

What is the MOST effective step that a company can take to promote ethical behavior?
A) conduct frequent comprehensive audits of all financial information
B) have employees sign a code of conduct upon hiring
C) demonstrate top management support of ethical standards
D) publicize efforts to become more ethical
E) survey employees on their personal ethical codes

Accepted Answer

C)Such a policy contributes to a corporate culture that values ethical standards and announces that the firm is as concerned with good citizenship as with profits.

Question 8

What is a social audit?
A) an examination of a company's financial records to determine their conformance with GAAP
B) a program to promote consumer activism
C) an analysis by the government of a company's compliance with employment laws
D) an analysis of a firm's success in using funds earmarked for meeting its social responsibility goals
E) a check on consumer rights

Accepted Answer

D)Occasional analyses will help businesses determine whether their social responsibility goals are being effectively and efficiently met.

Question 9

What is the full meaning of the acronym GAAP?
A) general action accounting points
B) gradually accepted activity positions
C) generally accepted accounting principles
D) greater antagonistic action plans
E) general action audit principles

Accepted Answer

C)In maintaining and reporting its financial status, every corporation must conform to generally accepted accounting principles (GAAP).

Question 10

Zach's company has appointed him to boost the business's level of corporate social responsibility.Which of the following would MOST likely be an appropriate step for Zach toward achieving this task?
A) extending employees' hours while paying them the same
B) placing less priority on the satisfaction of investors
C) reducing the company's number of charitable contributions
D) offering employees better health benefits while still increasing the company's profit
E) suspending standards designed to protect the environment

Accepted Answer

D)A company's participation in a strong corporate social responsibility plan allows it to serve its local and global communities in the area of human rights and employment standards in the workplace, but it also ideally benefits the corporation in a direct way.

Question 11

The Omega Group's mission statement conveys a primary commitment to compassionately improving the lives of elderly citizens.What is LEAST likely to be true of the company's ethical code?
A) The company values the well-being of others.
B) The company believes that all people have worth.
C) The company prohibits age discrimination when hiring employees.
D) The company expects and requires elderly citizens to contribute to society.
E) The company prioritizes fair treatment of all human beings.

Accepted Answer

D)The Omega Group's stated mission is to improve the lives of elderly citizens, not to expect them to contribute to society.

Question 12

Which of the following questions would a company dedicated to increasing its level of corporate social responsibility be LEAST likely to ask?
A) "How can we afford to pay our employees more?"
B) "Should we offer more sales in order to better serve our customers?"
C) "Can we purchase better quality ingredients while still making a profit?"
D) "Which charitable donations will make our investors most happy?"
E) "If our profits go up, can we lay off some of our employees?"

Accepted Answer

E)A company's participation in a strong corporate social responsibility plan allows it to serve its local and global communities in the area of community and "good neighbor" polices, but it also ideally benefits the corporation's employees in a direct way too.

Question 13

Moia is a successful entrepreneur who owns several popular pastry shops.She often imports macadamia nuts from countries with poor economic conditions,which has furthered her desire to help improve the lives of the people living there.Which of the following challenges would Moia likely find to be MOST central in seeking to run both a socially responsible and successful business?
A) how to engage in fair marketing practices that are cost-effective
B) how to pay her overseas workers fair wages, sell her pastries for less there, and still make the necessary profit
C) how to obtain the best quality macadamia nuts at a much lower price than they are worth
D) how to decrease employee benefits without experiencing subsequent complaints
E) how to perform a social audit without taking up too much valuable work time

Accepted Answer

B)Being socially responsible involves ethical sourcing and procurement, as well as making ethical decisions in human rights and employment standards in the workplace, but it is a skill to make these ethical decisions and continue to grow as a financially successful business.

Question 14

The CEO of Perry's Pizzeria,a rapidly growing restaurant chain,is committed to a high level of corporate social responsibility along with continued business success.Which of the following would likely be a failure in the area of legal compliance for the pizzeria?
A) Ingredients used in Perry's pan pizza are not as healthy as those of other companies' pizza.
B) Female applicants are not hired for delivery jobs, even when they are capable of performing those duties.
C) An employee is fired after she is caught stealing money from the cash register.
D) Persons with certain food allergies are not hired as employees.
E) Perry's signature dessert is advertised as being made from a popular chocolate bar.

Accepted Answer

B)By law, businesses cannot practice a wide variety of forms of discrimination against people in any facet of the employment relationship. Examples in the text include discrimination based on sex, race, and ethnicity.

Question 15

Carla's Collegiate Exchange,a popular bookseller among university students,has just drafted its mission statement.The company seeks to sell books on a sliding scale based on a student's available income.What does this MOST likely reveal about the company's ethical code?
A) The company believes financially challenged students should not be hindered from succeeding educationally.
B) The company believes that poor individuals should be given a greater chance at success than are wealthy individuals.
C) The company is indifferent to people's financial well-being.
D) The company is not concerned with fostering the success of others.
E) The company is most motivated by a desire for greater profits.

Accepted Answer

A)This statement is in support of Carla's Collegiate Exchange and its mission to provide feasible financial options to low-income students.

Question 16

A husband and wife have just opened a gymnastics center,with the hope of training future Olympians.They desire to run their center in a socially responsible way.Which of the following should they certainly avoid?
A) purchase of substandard gym equipment
B) advertising methods intended to profit the center
C) initiatives that decrease the satisfaction of investors
D) doubling of enrollment fees for the program
E) provision of attractive salaries for employees

Accepted Answer

A)A socially responsible company makes ethical decisions with safety concerns. Substandard gym equipment hinders safety.

Question 17

Pamela is the manager of a local eyewear store.She wants to ensure that the ethical conduct of her employees is above reproach.Which of the following should Pamela avoid doing?
A) underscoring the importance of ethics to all employees
B) encouraging and equipping employees to follow the company's ethical standards
C) modeling behavior that employees should adopt
D) relying on management alone to report ethics violations
E) ensuring that a strict code of ethics is in place

Accepted Answer

D)Management at very high strategic levels needs to have a common vision communicated to the company as a whole of how to enforce a code of ethics.

Question 18

A university has filed a formal complaint against a local hospital for failing to be socially responsible in its treatment of university students completing internships there.Which of the following would most likely be a valid response by a hospital that was NOT guilty of this charge?
A) "The responsibility to take disciplinary action against the supervisor who physically threatened the student interns lies with someone else."
B) "Because sanitary conditions are very important, floors are mopped regularly and are sometimes left wet. We cannot be held responsible if student interns unfamiliar with this practice slip and injure themselves."
C) "All student interns are clearly instructed to wear gloves and protective covering when handling blood samples that may endanger the interns' health."
D) "We expect our student interns to work double shifts after a day of classes so that they will be well prepared for a career in the health professions."
E) "Unforeseen budget cuts have forced us to revoke our contracts with student interns regarding hourly compensation."

Accepted Answer

C)A socially responsible hospital makes decisions that promote health and safety, as well as maintain high employment standards in the workplace.

Question 19

Tiffany's Taffy Shop is known for its commitment to corporate social responsibility.However,the owner,Mrs.Wu,has learned that an employee has been unknowingly ordering candy wrappers that are harmful to the environment.How could Mrs.Wu BEST recover from this ethical lapse?
A) by firing the employee immediately
B) by seeking ways to remedy any harm that may have been caused
C) by considering ethics training for all employees
D) by ordering candy wrappers that are less expensive
E) by decreasing the amount of taffy sold

Accepted Answer

B)By seeking remedy for harm caused by the environmentally unsound candy wrappers, Tiffany will come back into alignment with the social responsibility tenet of making ethical decisions for the environment.

Question 20

Which of the following steps would be LEAST likely to help a business develop and maintain an ethical environment?
A) Ensure that a mission statement is in place.
B) Communicate standards of behavior to all employees.
C) Implement ethics training programs.
D) Offer orientation programs so that new employees understand the business's ethical standards.
E) Trust that employees will act ethically.

Accepted Answer

E)An ethical environment is created by modeling ethical behavior. It is not enough to trust that employees will already have sufficient ethical values in place.

Quiz 2: Understanding Business Ethics and Social Responsibility

Which of the following statements about corporate social responsibility is TRUE?

When evaluating a decision based on the ethical norm of utility,a manager is MOST likely to consider which of the following questions?

When evaluating a decision based on the ethical norm of rights,a manager is MOST likely to consider which of the following questions?

Which of the following steps would be LEAST likely to help a business develop and maintain an ethical environment?

Wei-Yin runs a small,socially responsible business in which she sells her own watercolor paintings.Wei-Yin has a passion to help aspiring artists in her area achieve their dreams,but so far has assisted only a few of them.Which of the following would MOST likely be a reason for this?

What is the MOST effective step that a company can take to promote ethical behavior?

What is a social audit?

What is the full meaning of the acronym GAAP?

Zach's company has appointed him to boost the business's level of corporate social responsibility.Which of the following would MOST likely be an appropriate step for Zach toward achieving this task?

The Omega Group's mission statement conveys a primary commitment to compassionately improving the lives of elderly citizens.What is LEAST likely to be true of the company's ethical code?

Which of the following questions would a company dedicated to increasing its level of corporate social responsibility be LEAST likely to ask?

The CEO of Perry's Pizzeria,a rapidly growing restaurant chain,is committed to a high level of corporate social responsibility along with continued business success.Which of the following would likely be a failure in the area of legal compliance for the pizzeria?

Carla's Collegiate Exchange,a popular bookseller among university students,has just drafted its mission statement.The company seeks to sell books on a sliding scale based on a student's available income.What does this MOST likely reveal about the company's ethical code?

A husband and wife have just opened a gymnastics center,with the hope of training future Olympians.They desire to run their center in a socially responsible way.Which of the following should they certainly avoid?

Pamela is the manager of a local eyewear store.She wants to ensure that the ethical conduct of her employees is above reproach.Which of the following should Pamela avoid doing?

A university has filed a formal complaint against a local hospital for failing to be socially responsible in its treatment of university students completing internships there.Which of the following would most likely be a valid response by a hospital that was NOT guilty of this charge?

Tiffany's Taffy Shop is known for its commitment to corporate social responsibility.However,the owner,Mrs.Wu,has learned that an employee has been unknowingly ordering candy wrappers that are harmful to the environment.How could Mrs.Wu BEST recover from this ethical lapse?

Which of the following steps would be LEAST likely to help a business develop and maintain an ethical environment?