Preparation for Session 11

Read: Text book chapter BUSINESS ETHICS AND SOCIAL RESPONSIBILITY Identify the apparatus (notes, indexes, glossaries, etc.) used in the Chapter and explain each of the following:
a. Corporate Philanthropy; b. Occupational Safety and Health Administration; c. Consumerism; d. Integrity e. Social Audits; f. Social Responsibility; g. Business Ethics; h. Sexual Harassment; i. Code of Conduct; j. Conflict of Interest; k. Product Liability; l. Family Leave; m. Boycott; n. Whistle Blowing; o. Green Marketing;

Match the following to the correct expression in the list on top: 1. A formal statement that defines how the organization expects and requires employees to resolve ethical
questions. 2. The act of an organization giving something back to the communities in which it earns profits. 3. The main federal regulatory force in setting workplace safety and health standards. 4. The standards of conduct and moral values governing actions and decisions in the work environment. 5. A situation where a business decision maybe influenced by the potential for personal gain. 6. Managements acceptance of the obligation to consider profit, consumer satisfaction, and societal wellbeing of equal value in evaluating the firms performance. 7. Some firms measure social performance by conducting . 8. Inappropriate actions of a sexual nature in the workplace 9. Having . means adhering to deeply felt ethical principles in all business situations. 10. In a ., consumers refused to buy a companys products. 11. The public demand that a business consider the needs and wants of its customers in making decisions is called 12. .. refers to the responsibility of manufacturers for injuries and damages caused by their goods. 13. Many organizations now offer .. to help employees to deal with family matters. 14. in an employees disclosure to government authorities of illegal, immoral, or unethical practices of his or her employer. 15. A strategy that emphasizes a firms commitment to environmentally safe products and production is called

Page 1 of 17

Essay Type Questions

1. What are business ethics and why are they important? 2. Why it is often difficult in business to decide what is right or wrong in a given situation? 3. Explain how technology has impacted business ethics 4. List and briefly describe the 3 stages of moral and ethical development 5. When does a conflict of interest pose an ethical challenge? How should a conflict of interest be handled? 6. How could loyalty vs. truth create an ethical dilemma for a business person? 7. What is a code of conduct and what is it designed to do? 8. Why is ethical leadership so important? 9. The development of a corporate culture to support business ethics happens on 4 levels. Explain each of the 4 levels. 10. What is social audit? Who conducts one? 11. List the 4 classifications of social responsibilities of a business. 12. What are the objectives of the consumerism movement? 13. List the major responsibilities business has to its workers 14. Why do investors expect a firm to act ethically and exhibit social responsibility? 15. List the constituencies to which business are responsible.

Multiple Choice Questions 1. When management considers social and economic issues in decision making, the company is practising
. a. Business ethics b. Social responsibility c. Consumerism d. Social welfare 2. For a company to prosper over the long term, it .. a. Business ethics b. Should maximize profits c. Should maximize social responsibility d. Should maximize revenues 3. Why should a company act in an ethical manner? a. Because the government will take action if a firm fails to act ethically b. Because acting ethically always maximizes profits in the short run c. Because acting ethically will help a company to prosper in the long run d. Because the right thing to do is always a cheaper alternative 4. Business should .. a. Do what is right regardless of profits b. Find the balance between doing what is right and what is profitable c. Do whatever is profitable d. Do whatever is in the companys best interests 5. Which of the following statements is correct a. Setting ethical standards is easy b. Setting ethical standards is clear-cut c. Doing what is right can sometimes be difficult d. Social and ethical problems affect only a few companies
Page 2 of 17

6. A company removes a profitable product from the market because it may be dangerous. This company is demonstrating a. Ethical behaviour b. Short-term thinking c. How not to run a business d. Social welfare 7. Are seeking profits and upholding high principles of right and wrong mutually exclusive goals? Today a growing number of businesses of all sizes are saying a. Depends on social and economic implications of each decision b. The priority is for profits which are the primary purpose of most businesses c. Yes d. No 8. In todays business environment who can make the difference in ethical expectations and behaviour? a. Everyone b. No one c. Only managers d. Only the CEO 9. In order for a company to operate to a high set of ethical standards,.must be involved. a. The CEO b. The managers c. Only customers d. Everyone 10. Technology has .. ethical issues. a. Expanded the range of b. Reduced the range of c. Made little difference on the range of d. Eliminated most 11. Which type of company typically experiences the high cost abuses of ethics a. Large firms b. Small firms c. Internet firms d. Manufacturing firms 12. Which of the following has expanded the range and impact of unethical behaviour? a. Work place diversity b. An aging population c. Technology d. Government regulation 13. Theft of intellectual property such as copyrighted or patented material is a growing problem today. Approximately what % of intellectual property thefts is believed to be committed by insiders? a. Less than 10% b. About 25% c. About 50% d. About 67% 14. What is the most common excuse given by individuals for not acting ethically?
Page 3 of 17

a. b. c. d.

Everyone does it It violates company policy It did not violate my personal values and morals It is easy to get away with

15. Many people rationalize unethical acts because they.. a. Know they can get away with b. Are fundamentally unethical c. Have no personal or moral values d. Feel pressured on their jobs to meet performance goals 16. Katsuko decides not to take office supplies home because she fears shell be fired if shes caught since its against company rules. Which stage of ethical development is Katsuko in? a. Pre-conventional b. Conventional c. Post-conventional d. Concentrations stage 17. Tanisha wouldnt make personal long-distance phone calls at work because it will end up costing her employer money. Which stage of ethical development is Tanisha in? a. Pre-conventional b. Conventional c. Post-conventional d. Concentrations stage 18. Al makes a point of turning off his computer when hes not using it because it saves his employer money and saves energy. Which stage of ethical development is Al in? a. Pre-conventional b. Conventional c. Post-conventional d. Concentrations stage 19. When an individual considers the interest and expectations of others in making decisions and following rules because it is a part of belonging to the group, which stage of ethical development is this individual in? a. Pre-conventional b. Conventional c. Post-conventional d. Concentrations stage 20. When a business person is faced with a situation where his/her decision maybe influenced by the potential of personal gain, it is called a. Whistle-blowing b. Honesty and integrity c. Cultural consequences d. A conflict of interest 21. Your supervisor asks you to conceal information from the outside auditors examining the companys financial records. What is your ethical challenge? a. Loyalty vs. truth b. Conflict of interest c. Honesty and integrity d. You have none

Page 4 of 17

22. Outside auditors are examining your companys financial records. You know that their maybe an error
and will tell them about it, if they ask. They dont ask. Your could be questioned. a. Loyalty b. Truthfulness c. Integrity d. Nothing youve done could be called into question 23. An investment advisor wants to recommend a stock that he or she also owns. How should the advisor best deal with this potential conflict of interest? a. He/She should not make the recommendation b. He/She should make a negative recommendation c. He/She should disclose the fact that he/she owns the stock while making the recommendation d. He/She should make a positive recommendation then sell the stock 24. How should a business person deal with a conflict of interest? a. Disclose it b. Avoid it c. Disclose it or Avoid it d. Not worry about it 25. During a meeting with government regulators, Nicole voluntarily points out a potential problem with a new drug her company is testing. Nicole has shown a. Honesty b. Loyalty c. Truthfulness d. Integrity 26. When a businessperson refuses to accept responsibility for mistakes, he or she is showing a lack of .. a. Integrity b. Honesty c. Truthfulness d. Loyalty 27. Bob takes responsibility for something his assistant failed to do. Bob has shown.. a. Integrity b. Honesty c. Truthfulness d. Loyalty 28. Two traits that are highly valued by employers and that are the most important qualities sought in job applicants are .. a. Honesty and loyalty b. Honesty and integrity c. Integrity and loyalty d. Competence and commitment 29. .. goes beyond truthfulness a. Honesty b. Loyalty c. Integrity d. Competence

Page 5 of 17

30. Whistle-blowers. a. Are demonstrating unethical behaviour b. Are acting in their own self interest c. Are placing ethical standards above personal self interest d. Are being disloyal

31. Serenas boss tells her, in confidence that Jade will be laid off when the company announces a round of
job cuts next week. Afterwards, Jade asks Serena if there is any truth to the rumour of impending job cuts and if she knows about her status. What is Serenas ethical challenge? a. Conflict of interest b. Loyalty vs. truth c. Honesty vs. integrity d. Serena faces no ethical challenge 32. How many steps (or levels) are their in the development of a corporate culture that supports ethical making a. 1 b. 2 c. 3 d. 4 33. Development of a corporate culture to support business ethics occurs in each of the following levels EXCEPT. a. Ethical leadership b. Ethical awareness c. Ethical success d. Ethical reasoning 34. Which of the following is the first step in the development of a corporate culture designed to support ethical behaviour a. Ethical leadership b. Ethical awareness c. Ethical reasoning d. Ethical action 35. A formal statement that defines how the organization expects and requires employees to resolve ethical questions is.. a. A code of conduct b. An organizational culture c. The Ethics challenge d. An ethical environmental statement 36. Which of the following can help to improve ethical reasoning? a. A code of conduct b. Practical training sessions c. Ethical environment statement d. Organization culture 37. Ethical reasoning a. Is incorporated into the companys code of conduct b. Helps resolve black and white ethical dilemma c. Helps resolve grey areas
Page 6 of 17

d. Can be successfully taught in the classroom 38. Games such as the Ethics Challenge can help to improve.. a. Ethical awareness b. Ethical reasoning c. Ethical leadership d. Ethical action 39. Macrohard, Inc. provides support for employees faced with ethical dilemma. An ethics officer is available in the Human Resources Office or through an employee hotline. This is an example of . a. Ethical leadership b. Ethical awareness c. Ethical action d. Ethical reasoning 40. A company hands out cards to employees designed to help them make ethical decisions. This is an example of a. Ethical leadership b. Ethical awareness c. Ethical action d. Ethical reasoning

41. When a firm strives to have each individual personally committed to the companys core values and be
willing to base their actions on them, this is.. a. Ethical leadership b. Ethical awareness c. Ethical action d. Ethical reasoning 42. The sales manager decides to double each salespersons monthly quota. What impact is this action likely to have on the companys ethical climate? a. It will improve b. It will remain the same c. It will deteriorate d. It will initially deteriorate and then improve 43. Development of a corporate culture to support business ethics happens on four levels. The foundation of an ethical climate is. a. Ethical leadership b. Ethical awareness c. Ethical action d. Ethical reasoning 44. If employees believe that their companys ethics program is designed primarily to protect upper management from being blamed for any misconduct, how are they likely to respond? a. Their ethical standards will remain the same b. The ethical standards will improve c. Their ethical standards will deteriorate d. It is impossible to tell what will happen

45. Hi-Way Construction has five plant sites with each site employing about 300 employees. The general
manager and several supervisors at the Gamma site were fired recently and face charges for bribery and
Page 7 of 17

for not using acceptable materials for several government contracts. Rather than close down the Gamma site, top management decides to take steps intended to create the correct ethical climate. They must begin with Hi-Ways code of conduct and use it to establish the basic level of .. a. Ethical leadership b. Ethical awareness c. Ethical action d. Ethical compliance

46. Hi-Way construction has 5 plant sites with each site employing about 300 employees. The general
manager and several supervisors at the Gamma site were fired recently and face charges for bribery and for not using acceptable materials for several government contracts. Rather than close down the Gamma site, top management decides to take steps intended to create the correct ethical climate. Mike was an employee at the Gamma site for 10 years. Though Mike worried about his families security should he loose his job, Mike went to the governments authorities and informed them of the faulty construction. Mikes action is called a. Ethical compliance b. Good intentions c. Whistle blowing d. Ethical allegations 47. Historically, which of the following were considered a measure for evaluating a firms social performance? a. Employment opportunities b. Product safety standards c. Industrial safety standards d. Pollution control standards 48. Which of the following would be least likely to be a factor in evaluating a firms social performance? a. Providing a safe, healthy workplace b. Respecting the cultural diversity of employees c. Holding company-sponsored social events d. Producing safe high-quality products

49. A formal procedure that identifies and evaluates all company activities relating to social issues are
known as a(n) . a. Ethical profiles b. Social audit c. Social inventory d. Mission analysis 50. Which of the following organizations would be least likely to conduct a social audit of a business? a. The firm itself b. Religious organizations c. Environmental organizations d. The government

51. The Wright Tire Co. uses a company-wide term of employees to identify all company activities related
to social issues, to report on how the firm is responding to those issues, and to evaluate how effectively the firm has met those issues. The Wright Tire team is conducting a(n) a. Environmental impact audit b. Government-mandated audit c. Internal accounting audit
Page 8 of 17

d. Social audit 52. All of the following issues deal with the social responsibility of business to the general public EXCEPT . a. Acid rain b. Building profitable products c. Building safe products d. Saving energy

53. Three health-related issues that relate to business responsibilities are

a. b. c. d. Smoking, acid rain and AIDS Alcohol abuse, AIDS and pollution AIDS, smoking and alcohol abuse Pollution, the greenhouse effect and acid rain

54. Pollution. a. Is of concern only to business b. Can only occur in forests or oceans c. Primarily occurs as the result of natural forces d. Is the destroying or tainting of a natural environment 55. Which of the following statements about acid rain is UNTRUE? a. Wind can carry the sulphur created from burning fossil fuels all over the world b. Acid rain can pollute ground water c. Acid rain kills fish and trees d. Countries around the world have come to an agreement about what should be done about acid rain 56. Reprocessing used materials so they can be reused is known as a. Rotation b. Recycling c. Ecology d. Conversion 57. AIDS represents a challenge to business because.. a. Sick people make poor employees b. You can get the disease from someone elses coffee c. Many people have the disease without knowing it d. It makes good positive public relations a difficult assignment

58. The doctrine of the right to be heard as put forth by former President John F. Kennedy in his speech
on consumer rights would be best reflected by.. a. Product safety b. Disclosure of true annual interest rates on revolving charge accounts c. Disclosure of sodium content on labels of processed foods d. A firm establishing a consumer appeals board 59. The public demand that business give proper consideration to consumer wants and needs in making its decisions is known as.. a. Consumerism b. Political activism c. Conservation
Page 9 of 17

d. Ethics 60. Consumerism a. Has become a major social and economic movement b. Is concerned with equal employment opportunity c. As a movement has had little effect on society d. Is a movement basically concerned with industrial safety 61. All of the following are current social issues related to businesss responsibilities to employees EXCEPT.. a. Sexual harassment b. Discrimination against older workers c. Discrimination against workers who earns minimum wages d. Quality of life issues 62. Star Corporation allowed Tamika to take 60 days off from work to care for her seriously ill child. Tamikas time of work falls within the realm of .. a. Sick leave b. Maternity leave c. Professional leave d. Family leave 63. All of the following groups are specifically identified by federal equal employment opportunity laws EXCEPT. a. Vietnam-era veterans b. Obese persons c. Handicapped persons d. Persons over age 40 64. The age discrimination in Employment Act and its amendment protect workers a. Between the ages of 45 and 65 b. Aged 40 and over c. Between the ages of 40 and 70 d. Aged 65 and older 65. According to many experts, the next round of equal opportunity protection will extend to . a. Genetics b. Obesity c. Tobacco use d. Alcohol use

66. Approximately what percentage of managerial and professional positions is currently held by women?
a. b. c. d. About 50 percent About 33 percent About 25 percent Less than 25 percent

67. Which of the following would not be included in an effective sexual harassment prevention program? a. Developing a complaint procedure can follow b. Creating an atmosphere in which harassed employee can come forward c. Exempting employees in certain job classifications d. Punishing those reporting sexual harassment
Page 10 of 17

68. Which federal agency is designed to protect investors from the financial misdeeds of companies?
a. b. c. d. The Federal Trade Commission (FTC) The Justice Department The Securities and Exchange Commission (SEC) The Equal Employment Opportunity Commission (EEOC)

69. Zardoz, Inc. uses questionable accounting practices to artificially inflate its profits. What federal agency might become involved? a. The Federal Trade Commission (FTC) b. The Justice Department c. The Securities and Exchange Commission (SEC) d. The Equal Employment Opportunity Commission (EEOC) 70. Companies that adhere to high ethical standards.. a. Often make poorer investments in the long run b. Often makes better investments in the long run c. Always make higher profits d. Always make lower profits 71. Which of the following is an ethical issue dealing with a company and its direct relations with investors and the financial community? a. Questionable accounting practices b. Being insensitive to cultural differences among employees c. Forcing older workers to retire d. Paying women less than men

72. Businesses have responsibilities

a. b. c. d. Only to investors To investors, customers, and employees To investors and customers To investors, customers, employees and society

73. Business ethics begins a. With the individual employee b. With the government c. With a code of conduct d. With a firms customers

74. According to recent surveys, what percentage of Americans admires business executives?
a. b. c. d. Less than 25% Between 25% and 50% Between 50% and 75% More than 75%

75. Approximately percent of companies have set up ethics standards and coders of conducts. a. 25 b. 50 c. 75 d. virtually 100

Page 11 of 17

76. The minimum requirements for an ethics compliance program includes all of the following except
a. b. c. d. High-level personnel responsible for compliance Substantial discretionary authority given to compliance officials Establishment of systems to monitor, audit and report misconduct Consistent enforcement of ethical codes

77. Each year, US organizations lose to fraud a. Less than $100million b. Between $100million and $300million c. Between $300million and $500million d. More than $500million 78. What percentage of American workers knew of, or suspected unethical behaviour at their companies? a. Around one-quarter b. Around one-third c. Around one-half d. Around three-quarters 79. Under the Sarbenese-Oaxley Act must personally certify the validity of a companys financial statements a. The CEO b. The Chief financial officer c. Neither the CEO nor chief financial officer d. Both the CEO and chief financial officer 80. If an individual looks out only for his or her own interests when making decisions, he or she is at the .. stage of ethical development a. Pre-conventional b. Conventional c. Post-conventional d. Concentrations 81. Even though his company doesnt specifically have a policy forbidding it, Sean doesnt use his office computer for personal business. Sean is at the .. stage of ethical development. a. Pre-conventional b. Conventional c. Post-conventional d. Concentrations 82. If an individual follows personal principles for resolving ethical dilemmas and considers personal, group and societal interests, he or she is at the . Stage of ethical development. a. Pre-conventional b. Conventional c. Post-conventional

83. A pharmaceutical company has been asked by a developing nation to cut the price of a drug in half to
make it more affordable. This price cut, however, means that the pharmaceutical company will be selling the drug at a loss. What ethical dilemma does the company face? a. A conflict of interest b. A question of integrity c. A question of loyalty d. It faces no dilemma

Page 12 of 17

84. Harold knows of a defect in a product his company sells. He will disclose the defect but only if the customer specifically asks about it. Harolds .. could be called into question. a. Loyalty b. Truthfulness c. Integrity d. Whistleblowing

85. Mica learns that her company is secretly discharging untreated waste into the city sewer systems. She
informs the local EPA office. All of the following describe Micas ethical situation except a. She is acting as a whistleblower b. She has a conflict of interest c. She is showing integrity d. She is showing loyalty

86. One of the best measures of is how well a company focuses on the welfare
of its investors, customers and employees and how well it performs in the long-run a. Ethical awareness b. Ethical reasoning c. Ethical action d. Ethical leadership 87. Providing the necessary tools for employees to evaluate options and arrive at suitable decisions is called a. Ethical awareness b. Ethical reasoning c. Ethical action d. Ethical leadership 88. Providing structures and approaches will help to foster among employees a. Ethical awareness b. Ethical reasoning c. Ethical action d. Ethical leadership 89. After meeting with employees, a manager realizes that she has set performance goals realistically high for her departments employees. If she makes employee performance goals more realistic, what will likely happen to the departments ethical climate? a. It will improve b. It will stay about the same c. It will deteriorate d. It will deteriorate initially and then improve 90. A group urges its members not to buy the products of a particular firm because of the firms employment practices. The group is conducting a a. Green marketing campaign b. Boycott c. Social audit d. Mission analysis 91. A strategy that promotes environmentally friendly products and production method is called a. Consumerism b. Recycling c. Ethical awareness d. Green marketing
Page 13 of 17

92. Alcohol ads appearing in magazines a. Are illegal b. Shouldnt appear as thought the company is encouraging underage drinking c. Are unethical d. Cannot contain color 93. What percentage of corn and soybeans currently grown in the US, have been genetically engineered? a. Less than 25 percent b. Between one-third and one-half c. Between one-half and three quarters d. More than three-quarters 94. The US is currently in a trade dispute with . Over genetically engineered agricultural products a. The European Union b. The United Nations c. Canada d. Japan 95. In the US most new jobs require and the gap between the highest-paid and lowest-paid workers has been . a. High-school degrees only; increasing b. High-school degrees only; decreasing c. College-educated workers; increasing d. College-education workers; decreasing 96. College graduates, on average, earn .. more than high school graduates. a. Between one-quarter and one-half b. Between one-half and three-quarters c. Between three-quarters and 100 percent d. Over 100 percent 97. All of the following are examples of corporate philanthropy EXCEPT a. Supporting the local public radio station b. Sponsoring a Reed Cross blood drive c. Paying local property taxes d. Giving employees release time to participate in volunteer activities 98. All of the following are business responsibilities to customer EXCEPT a. The right to be heard b. The right to be safe c. The right to be informed d. The right to low prices

99. Which federal agency is responsible for ensuring the safety of prescription drugs
a. b. c. d. The FDA The FTC The SEC The FCC

100.

Which federal agency is responsible for setting workplace health and safety standards? a. The FTC b. The FDA
Page 14 of 17

c. OSHA d. The FCC 101. ......................producing industries have the highest number of worker injuries and illnesses (per 100 workers) and in recent years this rate has been . a. Goods, raising b. Goods, falling c. Services, raising d. Services, falling

True / False Questions 1. Social and ethical issues affect every company.
2. Organizations wishing to prosper cannot do so without considering business ethics 3. Halting the production and sale of a potentially danger product, even if it hurts profits, is an example of ethical behaviour 4. Putting profits ahead of safety is an example of reasonable business behaviour 5. Business must find a balance between doing what is right and doing what is profitable 6. Setting appropriate ethical standards is a fairly straight-forward task for most managers 7. All companies consistently set and meet high ethical standards 8. With training, both and managers and operative employees learn that deciding what is right and wrong in a given situation is a clear-cut choice 9. Individual employees have little influence over ethical expectations and behaviour 10. A single employee acting ethically will have little influence on his or her co-workers 11. Small companies appear to experience the highest-cost abuses of ethics 12. Technology has expanded the range and impact of unethical behaviour 13. Insiders are responsible for less than half of all thefts of intellectual property 14. Some employees rationalize questionable or unethical behaviour by saying, everyone does it. 15. Employees can avoid many ethical conflicts on the job by being truthful as well as being loyal to their companies 16. Some people engage in activities that are contrary to their personal and moral values because they feel pressured on their jobs 17. Pre-conventional behaviour is the term used to describe an employees disclosure to the media or government authorities of illegal, immoral, or unethical practices of the organization 18. An employee refrains from padding his or her expense account because if the employee is caught, he or she will be fired. This person is at the conventional stage of moral and ethical development 19. An employee refrains from padding his or her expense account because it hurts the company. This person is at the conventional stage of moral and ethical development 20. A person takes actions that will help his or her company, as well as protect the environment. This person is at the post-conventional stage of moral and ethical development 21. Pre-conventional behaviour is the term for an employees disclosure to the media or government authorities of illegal, immoral or unethical practices of the organization 22. It is not easy to distinguish between right and wrong in many business situations 23. On-the-job ethical dilemmas are very rare, but can be quite significant 24. An ad agency representing two companies that compete with one another has an obvious conflict of interest 25. A conflict of interest exists when a person is faced with a decision in which an action will harm one individual or group while benefiting another 26. A real estate agent can represent both the buyer and seller without any conflict of interest 27. The only safe way to handle a potential conflict of interest is to avoid situations in which one might occur
Page 15 of 17

28. Integrity goes beyond truthfulness 29. The personality traits most sought in job applicants are loyalty and truthfulness 30. A CEO tells shareholders that the accounting department intentionally inflated profits for the past five years. However, since she didnt know about the misdeed, she is not responsible. The CEO is showing integrity 31. Employers expect employees to generally act in the best interests of the organization 32. Employees should always be loyal, regardless of the situation 33. An employee goes public with evidence of improper actions by his or her employer. This employee is a whistleblower 34. Whistleblowers are always acting out of self-interest 35. Loyal employees are never whistleblowers 36. Most ethical lapses in business reflect the values of the firms corporate culture 37. Choices made by individuals are strongly influenced by the standards of conduct established within the organizations where people work 38. Development of a corporate culture to support business ethics occurs on the following levels: ethical climate, ethical awareness, ethical reasoning and ethical action 39. The development of a corporate culture to support business ethics occurs on four levels 40. A code of conduct is an informal proposal that suggests how the organization expects employees to make decisions 41. In addition to codes of conduct and ethical training, firms should provide structures and approaches that allow decisions to be turned into ethical actions 42. One of the first steps in the establishment of sound business ethics is to help employees identify ethical problems when they occur 43. Formally stating that employees must not discriminate on the basis of race, gender or age in their dealings with customers is something that could be found in a company code of conduct 44. A code of conduct rarely goes beyond stating the rules, laws and regulations employees are expected to follow 45. Many ethical dilemmas involve grey areas that may require individuals to sort through several courses of actions, each with its own set of consequences 46. When it comes to properly resolving ethical dilemma, most experts believe that there is no substitute for practical experience 47. A manager doubles employee performance goals every quarter. This action will likely increase the amount of ethically questionable actions by employees 48. If managers and supervisors fail to show ethical leadership, it is unrealistic to expect employees to behave ethically 49. Social responsibility is managements acceptance of the obligation to consider societal well-being and consumer satisfaction as being equally important as profit when evaluating the firms performance 50. A social audit is used to measure a companys social responsibility performance 51. Outside groups often conduct their own evaluations of businesses. Firms typically ignore those reports in favour internal evaluations 52. Social audits conducted internally are of little value because they are always biased in favour of the company 53. In the past, a firms social responsibility has usually been evaluated on the basis of its contribution to employment opportunities 54. Some groups organize boycotts of companies they find to be socially irresponsible 55. Alcohol companies have been criticized for targeting teens as well as members of ethnic and racial minorities in their advertising 56. Corporate philanthropy is the notion that businesses should give back to the communities where they ear their profits 57. Helping employees stop smoking is an example of a social responsibility revolving around public health 58. Most consumers view alcohol advertising as appropriate, so long as its isnt aimed at teenagers 59. Environment issues are becoming less important concerns of the public
Page 16 of 17

60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88.

A number of major employers have come out in favour of pre-employment AIDS testing Recycling will provide a substantial portion of the materials required in manufacturing businesses. Pollution is the major ecological problem today Consumerism is the concept that business must give consideration to employee wants and needs Corporate philanthropy describes the work for not-for-profit organizations in serving the public good The area of business responsibilities to company personnel is increasing The Equal Employment Opportunity Commission (EEOC) was established to police business compliance with the Civil Rights Act The rate of workplace injuries and illnesses has risen in recent years Investors are generally unconcerned with whether a company is behaving ethically; instead they only focus on whether or not it is making a profit The principle federal agency responsible for protecting investors from financial misdeeds is the Federal Trade Commission Companies who fail to follow high ethical standards often see their stock prices drop The percentage of people who say that they admire business executives has dropped sharply in recent years Fundamentally, a business is responsible only to its customers and investors The Sarbanese-Oxley Act requires that each member of a firms accounting department certify that truthfulness of financial statements Even though her company doesnt have a policy prohibiting it, Maria wouldnt make personal longdistance calls at work because it costs the company money. Maria is in the conventional stage of ethical development Individuals at the same stage of ethical development always adopt the same style for resolving ethical dilemmas In the real world of business, loyalty and honesty rarely conflict with one another The first stage in the development of ethical environment is ethical awareness A code of conduct is part of the ethical awareness stage of ethical development Providing employees tools to help them evaluate options and arrive at suitable decisions is part of the ethical action stage of ethical development One of the best measures of ethical leadership is how well a company performs in the long-run The primary social responsibility of a company is to the general public Companies have wide latitude when it comes to the user of environmental terms in advertising and marketing Experience shows that consumers are willing to pay higher prices for so-called green products The US is currently in a trade dispute with the European Union over genetically engineered food products Paying taxes is an example of corporate philanthropy In developed economies like that of the US, most new jobs require college degrees and/or advanced technical training The gap between what workers with college degrees earn and what those with high-school degrees earn has gotten smaller in recent years One of the goals of consumerism is for consumers to have access to enough education and production information to make responsible purchase decisions

Page 17 of 17