Question 1

By discontinuing the practice of confining sows in gestation crates during pregnancy, even though doing so was not legally required, pork producer Smithfield Foods assumed the ________ of business.

Accepted Answer

By discontinuing the practice of confining sows in gestation crates during pregnancy, even though it was not legally required, Smithfield Foods showed ethical responsibility towards animal welfare.

Question 2

Julia, a frontline manager, is known for her moral awareness, judgment, and character. But reporting her own boss for unethical behavior will be very difficult for her. Julia knows that she will require

Accepted Answer

Julia will require courage to report her own boss for unethical behavior, as it can be a difficult and potentially risky decision to make. It may require going against the norms and expectations within the workplace and potentially facing backlash or retaliation. But demonstrating ethical leadership and upholding moral standards is important for both personal and organizational integrity.

Question 3

In accordance with corporate social responsibility, meeting societal expectations that are not written as law is a(n)________ responsibility of business.

Accepted Answer

Ethical responsibility involves meeting societal expectations that are not codified into law but are expected by society, such as fair treatment and honesty.

Question 4

The Happy Egg Company, one of the largest producers of free-range eggs in the United Kingdom, seeks to put the welfare of their hens first. The company claims to operate above established free-range egg production standards. By raising their hens in this manner, Happy Eggs is assuming the ________ responsibilities of business.

Accepted Answer

The answer of The Happy Egg Company, one of the...

Question 5

Milton Friedman, Nobel Prize-winning economist, said, "The social responsibility of business is to increase profits," Yet his statement was ethical, in that

Accepted Answer

Friedman's perspective was that businesses should focus on their primary objective of generating profit for their shareholders, rather than taking on roles or responsibilities that might traditionally fall to elected officials or public institutions. He argued that business leaders are not elected to make societal or ethical decisions on behalf of the public and that using company funds for social causes unrelated to the business's core objectives could be seen as misappropriating shareholders' investments.

Question 6

"I asked my manager why our firm supports various causes and charities, instead of focusing solely on maximizing profits," said Alex. "She said that one of our core values is contributing to the long-term welfare of others, and the name of that value is

Accepted Answer

The value mentioned by Alex's manager, which prioritizes contributing to the long-term welfare of others over solely focusing on profit, aligns with the concept of stewardship. This involves taking responsibility for the impact of a company's actions on society and the environment. Options A and B do not directly relate to this idea, while options C and D focus on legal and economic responsibilities rather than broader values.

Question 7

Javi Torres, general manager of Fabricated Products, Inc., told his mentor, "I find it difficult to balance our economic, legal, ethical, and philanthropic responsibilities in my decision-making." His mentor replied, "Javi, the accumulated evidence indicates that

Accepted Answer

The accumulated evidence shows that social responsibility is associated with better financial performance. This means that companies that are socially responsible can still make profits while also fulfilling their economic, legal, ethical, and philanthropic responsibilities. Thus, Javi should not feel that it is difficult to balance these responsibilities, as being socially responsible can actually benefit his organization financially.

Question 8

One of the five higher goals of a transcendent education is

Accepted Answer

Civil aspiration is one of the five higher goals of a transcendent education, which emphasizes the development of an individual's sense of responsibility and commitment to the betterment of society. This includes promoting social justice, environmental sustainability, and ethical leadership.

Question 9

The business community's view toward environmental issues has changed in the twenty-first century because

Accepted Answer

In recent years, businesses have increasingly recognized the potential financial benefits of addressing environmental issues, such as cost savings from energy efficiency measures, new revenue streams from sustainable products and services, and improved public image and customer loyalty. Therefore, the business community's view toward environmental issues has shifted from seeing them as a burden to seeing them as a business opportunity.

Question 10

Madison, a manager, is considering having to lay off Roy, because Roy's skills do not match the company's needs in a changing marketplace. Roy is a popular employee, and Madison knows that laying off Roy will have a negative impact on the morale of other employees, among other ethical implications. In the context of making an ethical decision, this stage is known as moral

Accepted Answer

Moral awareness is the stage where an individual recognizes that a situation or decision has ethical implications. Madison's consideration of the impact of laying off Roy, including the effect on employee morale and the ethical implications, indicates that she is in the stage of moral awareness, recognizing the ethical dimensions of her potential decision.

Question 11

Eduardo, an account executive, has a difficult ethical decision to make regarding one of his clients. In determining what to do, he knows that

Accepted Answer

Eduardo must consider economic outcomes, legal requirements, and ethical duties when making his ethical decision. It is important for him to make the right decision without causing financial harm to his employer or the client, while also considering his ethical responsibilities. It is not necessary for him to take action that is illegal, nor does he need to worry about communicating his decision to his employer's other clients. The main focus should be on finding a solution that is ethical, legal, and financially feasible.

Question 12

Smith's Hardware supports Habitat for Humanity, a nonprofit that builds affordable housing for those struggling with poverty, housing, or homelessness. Donation to such an organization is an example of ________ responsibility.

Accepted Answer

Donating to a nonprofit organization that supports affordable housing for the impoverished aligns with philanthropic responsibility, which involves voluntarily contributing to social causes that benefit communities beyond the profit-seeking of the business.

Question 13

A company's requirement to be profitable represents its

Accepted Answer

A company's requirement to be profitable is its economic responsibility, as it is expected to make a return on investment for its shareholders and ensure long-term sustainability.

Question 14

Within the pyramid of global corporate social responsibility and performance, doing what is required by global stakeholders is categorized as a(n)________ responsibility.

Accepted Answer

Doing what is required by global stakeholders falls under legal responsibility, meaning that corporations are expected to obey the laws and regulations in their operating countries. This includes complying with labor laws, environmental regulations, and other legal requirements.

Question 15

"It's not all about profit," said Tom to his young accountant. "We have to always keep in mind the 'triple bottom line', and that means our stakeholders' broader expectations of

Accepted Answer

The 'triple bottom line' refers to the three dimensions of performance that a business should consider - economic, social, and environmental. Option B is the only choice that lists these three dimensions. Options A, C, D, and E include some of these dimensions but not all three.

Question 16

A company's efforts to be a good global corporate citizen, such as supporting community programs, represents its

Accepted Answer

Supporting community programs goes beyond the economic, legal, and financial responsibilities of a company. It falls under the philanthropic responsibility, which is the discretionary or voluntary responsibilities that a company takes up to give back to the society.

Question 17

Laura Higgins, Chief Ethics Officer for WrightWay Corporation, told her CEO, "We must identify actions that will maximize profits while satisfying the demand for corporate social responsibility from multiple stakeholders. To do this, we should evaluate actions as we would all other investment decisions, by

Accepted Answer

Evaluating actions through cost-benefit analyses ensures that the potential impact on profits and social responsibility is considered, balancing short-term and long-term impacts. This approach allows for informed decision-making that considers the concerns of multiple stakeholders, rather than just the demands of shareholders or legal requirements.

Question 18

The order of the levels in the pyramid of global corporate social responsibility and performance from bottom to top is

Accepted Answer

The pyramid of global corporate social responsibility and performance begins with economic responsibilities, moves on to legal responsibilities, then ethical responsibilities, and finally philanthropic responsibilities. This order reflects the idea that a corporation's primary responsibility is to make a profit and comply with relevant laws and regulations, but also to act ethically and contribute to society in the form of philanthropic activities. Therefore, option C is the correct order: economic, legal, ethical, and philanthropic.

Question 19

The CEO of Southwest Groceries, Inc. has asked you to enhance the firm's public image through its ethical responsibilities. Thus, you are most likely to propose that the company

Accepted Answer

By choosing to only sell dairy and meat products originating from animals living in humane environments, the company can enhance its public image by demonstrating its ethical responsibility towards animal welfare. This can attract customers who prioritize such values in their buying decisions and ultimately lead to a positive impact on the company's profits. Additionally, this choice also aligns with the current trend of consumers seeking ethically sourced products, which can reinforce the company's competitiveness in the market.

Question 20

________ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

Accepted Answer

The economic responsibility of a business is its primary responsibility as it involves producing goods and services that society wants at a reasonable price that allows the business to make a profit and satisfy its investors. The other responsibilities (legal, environmental, philanthropic, and ethical) are also important, but they are secondary to the economic responsibility.

Quiz 5: Ethics, Corporate Responsibility, and Sustainability