Question 1

The last step in a basic model of ethical decision making is to _____.

Accepted Answer

The last step in a basic model of ethical decision making is to act on the situation, which means to implement the chosen course of action. While it is important to diagnose the situation, analyze alternatives, and monitor the results, the ultimate goal is to take action based on ethical principles and values. Therefore, option C is the best choice.

Question 2

Secondary stakeholders are important to a company because:

Accepted Answer

Secondary stakeholders, such as customers, suppliers, and local communities, can affect public perceptions about a company's socially responsible behavior. This can have a significant impact on the company's reputation and overall success, making it important for companies to consider and address the concerns of these stakeholders. While secondary stakeholders may not have direct control over management decisions, their opinions and actions can influence a company's bottom line.

Question 3

Rizenton-Pharm, a pharmaceutical company, produces a significant amount of chemical waste every day. The company disposes the waste in a nearby lake despite strict government regulations regarding waste disposal. This scenario illustrates that Rizenton-Pharm has failed to fulfill its _____.

Accepted Answer

Rizenton-Pharm has failed to fulfill its legal responsibility by not adhering to government regulations regarding waste disposal.

Question 4

_____ is a business's obligation to pursue policies, make decisions, and take actions that benefit society.

Accepted Answer

Social responsibility is a business's duty to act towards the welfare and interests of society. It involves taking into consideration the impact of business decisions on various stakeholders, such as customers, employees, shareholders, and the community. It includes activities such as corporate philanthropy, environmental conservation, ethical labor practices, and community involvement.

Question 5

Philippa saw one of her coworkers making copies of important company documents and putting them in her bag. She immediately reported the incident to her manager. Philippa's action is an example of _____.

Accepted Answer

Whistle-blowing refers to the act of reporting unethical or illegal behavior within an organization to someone who is in a position of authority to take action. In this case, Philippa reported her coworker's behavior to her manager, which is an example of whistle-blowing. This is an important action to take in order to protect the company and its stakeholders. Option A, brainstorming, refers to a group problem-solving technique. Option C, personal aggression, refers to hostile or aggressive behavior towards others. Option D, property deviance, refers to actions that damage or steal company property.

Question 6

_____ is a company's social responsibility to make a profit by producing a valued product or service.

Accepted Answer

Economic responsibility refers to a company's obligation to generate profit by providing a valuable product or service to customers. This is the most fundamental responsibility of a business and supports its long-term viability. Discretionary, legal, and ethical responsibilities are all important as well, but economic responsibility must be fulfilled first.

Question 7

The act of reporting others' ethics violations to management or legal authorities is known as _____.

Accepted Answer

Whistle-blowing is the act of reporting unethical or illegal activities to management or legal authorities. This may include reporting on the company's activities or the actions of fellow employees.

Question 8

In a basic model of ethical decision making, after a problem has been identified, the next step is to _____.

Accepted Answer

After identifying a problem, the next step in ethical decision making is to identify the constituents, which involves understanding who is affected by the decision and considering their perspectives and interests.

Question 9

Zultin, an electronics company, manufactured and sold new laptops that increased its profits by 20% and made it the market leader in the electronics industry. This scenario illustrates that the company is fulfilling its _____.

Accepted Answer

Zultin's focus on increasing profits through manufacturing and selling new laptops aligns with its economic responsibility to make a profit and be financially successful. This is the most basic and fundamental responsibility of any business.

Question 10

Horizon Inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. The company disposes the waste in the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that Horizon has failed to fulfill its _____.

Accepted Answer

Horizon Inc. is breaking the law by disposing of waste in the ocean despite strict government regulations. Therefore, it has failed to fulfill its legal responsibility.

Question 11

Benjamin saw one of his colleagues stealing office supplies while all the other employees had gone for lunch. He immediately reported the incident to his supervisor. Benjamin's action is an example of _____.

Accepted Answer

Benjamin's action of reporting the incident to his supervisor is an example of whistle-blowing, which is the act of reporting unethical or illegal activities by an organization's members.

Question 12

Rose found strong evidence that her supervisor, Roger, was stealing confidential documents from the company. She immediately reported Roger's actions to the top management. Rose's action is an example of _____.

Accepted Answer

Whistle-blowing is the act of reporting unethical or illegal activities to someone who is in a position of authority to take action. In this scenario, Rose reported Roger's actions to the top management, which is an example of whistle-blowing.

Question 13

According to the _____, the only social responsibility that businesses have is to maximize profits.

Accepted Answer

The shareholder model, also known as the shareholder primacy model, asserts that the primary responsibility of a business is to maximize profits for its shareholders. This model assumes that maximizing shareholder value will ultimately benefit all stakeholders in the long run.

Question 14

_____ is a company's social responsibility to not violate accepted principles of right and wrong when conducting its business.

Accepted Answer

Ethical responsibility refers to a company's obligation to act in a morally and socially responsible manner, which includes adhering to accepted principles of right and wrong in conducting its business. This can include issues such as fair treatment of employees, sustainable practices, and transparency in business dealings. Legal responsibility refers to the company's obligation to comply with laws and regulations, while economic responsibility refers to maximizing profits for the shareholders. Discretionary responsibility is optional and relates to a company's contributions to social causes and charitable giving.

Question 15

_____ are defined as persons or groups with a legitimate interest in a company.

Accepted Answer

Stakeholders are defined as persons or groups with a legitimate interest in a company. This includes shareholders, employees, customers, suppliers, and community members who may be affected by the company's actions. Baby boomers and millennials are generational labels and are not relevant to the definition of stakeholders. "Boomerangs" is not a term commonly used in the context of business stakeholders.

Question 16

Infra Inc., a mining company, produces a significant amount of industrial waste every day. The company disposes the waste in a nearby landfill site despite strict government regulations against disposing waste in the site. This scenario illustrates that Infra Inc. has failed to fulfill its _____.

Accepted Answer

Infra Inc.'s act of disposing waste in a landfill site despite strict government regulations against it implies that the company has failed to fulfill its legal responsibility. Legal responsibility refers to abiding by the laws and regulations set by the government and relevant authorities.

Question 17

SprintFuel, an energy drink manufacturing company, spiked all its energy drinks with banned substances and did not include their details in the ingredient list. The athletes who consumed SprintFuel were tested positive for these banned substances and were suspended. This scenario illustrates that SprintFuel failed to fulfill its _____.

Accepted Answer

SprintFuel had a legal responsibility to accurately list all ingredients in their product and not include any banned substances. By failing to do so, they violated the law and caused harm to the athletes who consumed their product.

Question 18

Which of the following is an argument put forth by economist Milton Friedman?

Accepted Answer

Milton Friedman was a proponent of the idea that the primary responsibility of businesses is to maximize profits for their shareholders. He argued that diverting resources towards social causes or charitable organizations is not the responsibility of businesses and is socially irresponsible. This argument is reflected in option C.

Question 19

Which of the following stakeholder groups does not engage in regular transactions with a company?

Accepted Answer

Special interest groups do not engage in regular transactions with a company. Customers purchase products or services, governments may regulate or purchase from a company, and local communities may be impacted by a company's operations. However, special interest groups typically advocate for certain causes or issues and do not have direct transactions with a company.

Question 20

Which of the following is an objective of ethics training programs for employees?

Accepted Answer

The objective of ethics training programs for employees is to achieve credibility with employees. This helps in building a culture of transparency and trust within the organization. By imparting knowledge about ethical standards and practices, organizations can create an environment where employees are aware of what is expected of them, and how they should behave in various situations. This can lead to a reduction in unethical behavior, which in turn can help in enhancing the reputation of the organization. The other options listed are not objectives of ethics training programs.

Quiz 4: Ethics and Social Responsibility