Question 1

Because New Horizons' image and reputation are at stake,all employees should realize that it's the major activities and interactions,and not the trivial,day-to-day gestures that build character among an organization's members.

Accepted Answer

Character within an organization is often built through consistent, day-to-day interactions and gestures, not just through major activities. These small actions contribute significantly to the overall culture and reputation of an organization.

Question 2

Top management at New Horizons Insurance Company is concerned about how to maintain honesty and integrity among managers, agents, and claims adjusters. Over the past year, for example, the company has received more complaints than ever before, both about agents pushing policies that clients don’t need or can’t afford and about adjusters being unresponsive to client needs. Executives have decided to exercise more care in hiring new employees and to require more training in ethics as well as sales skills and product knowledge.
-Although it's a good rule of thumb to follow your own code of personal conduct and act according to your own convictions,the fact that some employees' personal codes seem to be flawed makes it legitimate to take steps beyond this guideline.

Accepted Answer

Given the context of increasing complaints and unethical behavior, it's reasonable for the company to implement additional measures beyond relying on individual personal codes of conduct to ensure ethical behavior across the organization.

Question 3

Pembroke Native Flower Seeds has a unique _____ or ways of doing things that evolve through shared values and beliefs.

Accepted Answer

The phrase "ways of doing things that evolve through shared values and beliefs" best describes a company's culture, which encompasses the norms, values, and practices shared within an organization.

Question 4

Organizational leaders must be willing to _____ and take appropriate action.

Accepted Answer

The answer of Organizational leaders must be willing to _____...

Question 5

What are you doing when you're "dumpster-diving"?

Accepted Answer

Dumpster-diving involves searching through trash to find valuable information, such as discarded documents, that could provide a competitive advantage.

Question 6

Which of the following episodes made TheStreet.com's list of "The Five Dumbest Things on Wall Street for the Week"?

Accepted Answer

A convicted CEO receiving his salary while in prison was considered a dumb move by Wall Street standards, making it to TheStreet.com's list.

Question 7

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions.
-The chef's mistake was in trying to rationalize the situation.Which of the following is not regarded as a common rationalization for workplace misconduct?

Accepted Answer

Rationalizations for workplace misconduct typically involve justifying actions based on perceived benefits, secrecy, or minimizing the severity of the conduct. Defending an employer's reputation is not commonly cited as a rationalization for misconduct, as it implies a motive more aligned with loyalty or protection rather than self-justification or denial of harm.

Question 8

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions.
-Betty and Herb should probably have created a document detailing the procedures to follow in the event of such an incident (after all,it's not an uncommon occurrence in the food-services business).Such a document is usually called a _____.

Accepted Answer

A code of conduct outlines the principles and guidelines that employees should follow, including how to handle situations like the discovery of spoiled or contaminated food.

Question 9

In blatant disregard of their rights,Johns Manville made a deliberate,cold?blooded decision to do nothing to protect workers whose health was at risk.

Accepted Answer

Johns Manville was aware of the health risks posed by asbestos exposure to their workers but chose not to inform or protect them, leading to numerous health issues and subsequent lawsuits.

Question 10

Fiduciary responsibility means that managers are responsible for safeguarding a company's assets and handling its funds in a trustworthy manner.

Accepted Answer

Fiduciary responsibility refers to the obligation of an individual or organization to act in the best interest of another party, such as a company or its shareholders, which includes safeguarding the company's assets and managing its funds responsibly and ethically.

Question 11

Rather than publish a code of ethics,management must in this case train employees to pay more serious attention to the company code of conduct.

Accepted Answer

A code of ethics and a code of conduct serve different purposes; both can be important. A code of ethics provides a broad set of principles to guide decision-making, while a code of conduct offers specific guidelines for behavior. Training on both can be beneficial.

Question 12

The Hershey code of conduct covers all of the following except;

Accepted Answer

The Hershey code of conduct covers various aspects of ethical behavior and corporate responsibility, including the use of corporate funds and resources, conflict of interests, and protection of proprietary information. However, it does not specifically address executive behavior in the event of fraud, which would typically be covered under separate fraud policies or legal regulations.

Question 13

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions.
-Of all the people involved in this business,who most needs ethics counseling?

Accepted Answer

The chef most needs ethics counseling because he knowingly used spoiled produce, risking customer health, and did not report the issue to his employers or take responsibility for the potential harm caused.

Question 14

Unethical behavior in organizations can be reduced if management does all of the following except:

Accepted Answer

Depending totally on an employee's personal ethics does not actively reduce unethical behavior in organizations. Establishing formal codes, reporting mechanisms, and punishment for violations are proactive steps by management to foster an ethical environment. Depending solely on personal ethics lacks the structured approach necessary for consistent ethical behavior across an organization.

Question 15

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions.
-If Kari reports the owners to the health department because they refuse admit to disclose what happened,she'd be called a _____.

Accepted Answer

Kari would be called a whistle-blower because she is reporting wrongdoing (in this case, the handling of spoiled produce leading to customer illness) by her employers to the authorities.

Question 16

Management should train everyone to be honest not only with customers,but with management,coworkers,competitors,and the public as well.

Accepted Answer

Honesty in all interactions builds trust, enhances reputation, and fosters a positive work environment, which is beneficial for both the organization and its stakeholders.

Question 17

Some employees are justified in thinking that because upper management isn't doing enough to control questionable behavior,they can't remain in an ethically toxic environment without losing some of their own integrity.

Accepted Answer

Employees may feel compelled to leave an ethically toxic environment if they perceive that upper management is not adequately addressing questionable behavior, as staying could compromise their own integrity by implicitly condoning such behavior.

Question 18

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions.
-Who is not a stakeholder in this scenario?

Accepted Answer

The owners' family is not mentioned as being directly involved or affected by the incident involving the spoiled produce, making them not stakeholders in this specific scenario.

Question 19

Martin Marietta serves as a good example of the principle of _____.

Accepted Answer

Martin Marietta is often cited as an example of integrity in business practices, emphasizing ethical conduct and honesty in its operations.

Question 20

According to the law,people must be hired,evaluated,promoted,and rewarded on the basis of merit,not personal characteristics.

Accepted Answer

This principle is foundational to equal employment opportunity laws and anti-discrimination laws in many countries, which mandate that employment decisions should be based on an individual's qualifications, skills, and performance rather than on personal characteristics such as race, gender, age, or religion.

Quiz 4: Business Ethics and Social Responsibility