Question 1

Identify and discuss the social responsibilities of a firm to three of the four stakeholder groups described in your textbook.

Accepted Answer

The answer of Identify and discuss the social responsibilities of...

Question 2

Megan is concerned about the legality of her idea of firing union workers in order to hire employees willing to work for less pay. Megan values ________ ethics, but has little concern for other types.
A) integrity-based
B) compliance-based
C) socially based
D) policy-based

Accepted Answer

A compliance-based ethics code emphasizes preventing unlawful behavior by seeking legal advice and following the letter of the law.

Question 3

The boxed material entitled Reaching Beyond Our Borders that told the story about Joe, the telecommunication employee, suggests that U.S. firms operating overseas are
A) not as flexible on social issues as local employees would like them to be.
B) exploiting employees by working them long hours at low pay.
C) complying with the ethical standards of the people they employ, in the countries in which they are operating.
D) responding to their stockholders' desire for profits.

Accepted Answer

The story demonstrates a culture clash between business ethics abroad and business ethics practiced in the U.S. Joe, a telecommunication employee, used the housing allowance provided by his employer for other expenses that did not fall under the area of living accommodations. If Joe worked in the U.S., it would be highly unethical to falsify expense reports in order to receive the housing stipend. Joe did not consider it an offense in South America.

Question 4

Identify the six-step approach to achieve a long-term improvement of business ethics.

Accepted Answer

The answer of Identify the six-step approach to achieve a...

Question 5

Erin recommends a marketing strategy aimed at increasing sales through the development of a positive corporate image. She suggests the first step toward this goal is to identify and evaluate the firm's programs for community involvement. Erin is calling for a ________ to be completed.
A) strategic plan
B) social audit
C) socialist review
D) corporate contribution index

Accepted Answer

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are socially responsible and responsive.

Question 6

As the number of multinational corporations continues to grow, we are experiencing a greater number of international ethical dilemmas. One very real concern has been the human rights abuses in sweatshops in exchange for cheap labor. Several retailers have now banded together to set ethical standards in foreign factories. Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?
A) Multinationals must subjectively determine the local living wage, which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops.
B) Economically sensitive customers want companies to pass along cost savings to them, at all costs, even if the products are made through offshore outsourcing. Companies want to please customers, first!
C) Most multinational corporations have made no attempt to improve working standards at sweatshop factories. They will turn a blind eye to the problem unless U.S. law is passed to force the issue. Customers understand that legal limits come before ethical standards.
D) Multinationals cannot be expected to demand socially responsible behavior from their supplier, including foreign sweatshops. When doing business abroad, the U.S. company need not comply with U.S. law when its supplier(s) is not in the U.S. or on U.S. territory.

Accepted Answer

Companies must act ethically and responsibly toward employees who produce their goods and services. They must make certain that foreign producers agree to a living wage-a wage that is enough for employees to provide for themselves and their families. Customers claim they will pay a higher price if they know the difference is passed on to the employees who made the goods.

Question 7

Identify and discuss the five types of groups that serve as watchdogs. Also discuss how well companies enforce their ethical and social responsibility policies.

Accepted Answer

The answer of Identify and discuss the five types of...

Question 8

On which of the three ethics check questions would Megan primarily focus?
A) Is it legal?
B) Is it fair and balanced?
C) How will it make me feel about myself?
D) Is this a win-win situation?

Accepted Answer

Megan's concern is compliance with the law.

Question 9

According to the Reaching Beyond Our Borders box, which of the following is true?
A) Corporate ethics are intended to be consistent with cultural ethics.
B) Corporate ethics have priority over corporate profit.
C) Corporate profits have priority over corporate ethics.
D) Corporate ethics can clash with cultural ethics.

Accepted Answer

Joe falsified receipts for living expenses in order to be able to provide money for his family's education. Joe felt that this was necessary to honor the memory of his late father. The company was concerned about Joe's apparent lack of integrity.

Question 10

Identify the three questions that an ethics-based manager should ask when facing a potentially unethical action, and provide an example of a situation where you would use these questions to evaluate a decision.

Accepted Answer

The answer of Identify the three questions that an ethics-based...

Question 11

If management adopts Ryan's suggestion of reducing Frozen Fun Ice Cream's charitable donations until profits grow, the company will essentially reduce its
A) corporate citizenship.
B) nonprofit volunteerism.
C) corporate philanthropy.
D) RF factor.

Accepted Answer

Corporate philanthropy involves charitable donations to nonprofit groups.

Question 12

As a recent college graduate, Jonah started working for an export trading company. His job has already taken him around the globe, including Asia on several occasions. He was amazed to see the difference in working conditions in the developing nations he visited, as opposed to similar operations in the United States. The expectations of workers were not the same. Jonah's experience is an example of
A) corporate philanthropy differences in different countries.
B) social responsibility differences between similar firms, but in different countries.
C) differences in corporate social initiatives in foreign nations.
D) the need for whistleblowers abroad.

Accepted Answer

Developing nations do not have the same labor standards as well-developed nations. In order to get ahead, employees in developing nations are willing to work in what would be considered poor working conditions in the U.S. Job choices are meager. Workers are willing to work for long hours, in poor conditions, for a few cents more each hour.

Question 13

Ryan's view tends to lean toward the concerns of investors, first and foremost. This is the view taken by
A) corporate philanthropists.
B) Franklin D. Roosevelt.
C) the late Milton Friedman, famous economist.
D) a watchdog such as an environmentalist.

Accepted Answer

The late Milton Friedman, famous economist, proclaimed in a well-known speech that the only social responsibility of business was to make money for stockholders.

Question 14

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Accepted Answer

The answer of Explain the difference between a compliance-based ethics...

Question 15

Which of the following indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers?
A) The establishment of the Equal Opportunity Employment Commission
B) The decision of Walmart to open stores worldwide
C) The decision of Nike to cancel orders from suppliers that violate its ethics code
D) The creation of the North American Free Trade Zone (NAFTA) between the U.S., Canada, and Mexico

Accepted Answer

U.S. businesses are demanding that their international suppliers not violate human rights and environmental standards. Sears, Nike, Dow Chemical, and McDonald's have all had social responsibility issues with their international suppliers.

Question 16

International issues of social responsibility and ethical behavior are
A) the result of greed found in capitalist countries.
B) found primarily in countries with a low standard of living.
C) a concern only of business professors.
D) difficult and not as clear-cut as U.S. firms would like them to be.

Accepted Answer

Ethical problems and issues of social responsibility are not unique to an economic system or level of income. Although U.S. businesses demand socially responsible behavior from their international suppliers, ethical standards are not as clear-cut as they would like them to be. Some question whether U.S. businesses should expect or require international suppliers to adhere to U.S. law.

Question 17

Provide examples that serve to explain the differences among the following terms: (1) corporate responsibility; (2) corporate social initiatives; (3) corporate philanthropy.

Accepted Answer

The answer of Provide examples that serve to explain the...

Quiz 4: Demanding Ethical and Socially Responsible Behavior

Identify and discuss the social responsibilities of a firm to three of the four stakeholder groups described in your textbook.

Megan is concerned about the legality of her idea of firing union workers in order to hire employees willing to work for less pay. Megan values ________ ethics, but has little concern for other types.

The boxed material entitled Reaching Beyond Our Borders that told the story about Joe, the telecommunication employee, suggests that U.S. firms operating overseas are

Identify the six-step approach to achieve a long-term improvement of business ethics.

Erin recommends a marketing strategy aimed at increasing sales through the development of a positive corporate image. She suggests the first step toward this goal is to identify and evaluate the firm's programs for community involvement. Erin is calling for a ________ to be completed.

Identify and discuss the five types of groups that serve as watchdogs. Also discuss how well companies enforce their ethical and social responsibility policies.

On which of the three ethics check questions would Megan primarily focus?

According to the Reaching Beyond Our Borders box, which of the following is true?

Identify the three questions that an ethics-based manager should ask when facing a potentially unethical action, and provide an example of a situation where you would use these questions to evaluate a decision.

If management adopts Ryan's suggestion of reducing Frozen Fun Ice Cream's charitable donations until profits grow, the company will essentially reduce its

Ryan's view tends to lean toward the concerns of investors, first and foremost. This is the view taken by

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Which of the following indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers?

International issues of social responsibility and ethical behavior are

Provide examples that serve to explain the differences among the following terms: (1) corporate responsibility; (2) corporate social initiatives; (3) corporate philanthropy.