Question 1

Out-Tel,a computer chip manufacturer,knowingly sold defective chips and failed to notify customers of the potential problems.When the problem became public knowledge,the firm's stock price fell dramatically.This illustrates the value that investors place on the ethical behavior of businesses.

Accepted Answer

A) True 
 B)False

Question 2

Blake Mycoskie started a shoe business known as TOMS.As a social entrepreneur,Mr.Mycoskie takes the concept of ___________________ to a new level.TOMS social causes are directly related to the firm's expertise: selling shoes.

Accepted Answer

A)  social auditing
B)  corporate social initiative
C)  corporate policy
D)  corporate philanthropyE) A) and C)
F) C) and D)

Question 3

Studies show that consumers are not concerned about the socially conscious behavior of the firms with which they do business.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

Compliance-based ethics codes emphasize ...

Question 5

The social audit is:

Accepted Answer

A)  a company report that always include a net social contribution.
B)  a government mandated report required of all firms who have a business license.
C)  a company report that measures the firm's social contributions inside and outside of the firm.
D)  a recent development that creates a ratio to compare a firm's corporate philanthropy to its profits.E) B) and C)
F) None of the above

Question 6

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm.Enron and WorldCom participated in inappropriate accounting methods.According to the Legal Briefcase,"Cost of Corruption":

Accepted Answer

A)  The notion that the financial system is complicated and difficult to understand often perpetuates these crimes.
B)  Madoff was convicted for his crime because he was a "lone ranger" in white-collar crime,whereas Enron and WorldCom were part of the "too big to fail" corporations.The government was compelled to protect them due to the fact that too many people would lose their jobs.
C)  Ponzi schemes are not illegal.This was a case of "buyer beware." The investor must take the majority of the responsibility for not performing due diligence prior to investing with Madoff.
D)  Enron's and WorldCom's executives were acquitted of crime because they were using generally accepted accounting principles,and no whistleblowers came forward to attest to any wrongdoing.E) B) and C)
F) None of the above

Question 7

Business relationships often present ethical dilemmas that are:

Accepted Answer

A)  not easily resolved.
B)  easily resolved by following the relevant laws.
C)  best resolved by creating a win-lose situation.
D)  irrelevant and therefore require no action.E) A) and D)
F) All of the above

Question 8

Zach spent several months developing a good relationship with a business client.The client is now buying a significant amount of product from Zach's company,resulting in high commissions for Zach,personally.After checking the sales records for the past six months,Ben a sales colleague of Zach's) started visiting the same client in the hopes of capturing some of the client's business too.Although he considers it "legal and fair game",sales reps in his firm have begun to avoid him because they consider it a violation of:

Accepted Answer

A)  company-based ethics.
B)  compliance-based ethics.
C)  integrity-based ethics.
D)  whistleblowing-based ethics.E) B) and C)
F) None of the above

Question 9

Which of the following people would be most in favor of CSR Corporate Social Responsibility) ?

Accepted Answer

A)  Milton Friedman
B)  Adam Smith
C)  Bill Gates
D)  Kenneth LayE) A) and B)
F) B) and D)

Question 10

Making ethical choices is always easy.

Accepted Answer

A) True 
 B)False

Question 11

The brewers of Budweiser beer encourage their customers to drink responsibly and "know when to say when." This reflects a compliance-based approach to ethics.

Accepted Answer

A) True 
 B)False  False

Question 12

In the Reaching Beyond our Borders box titled,"Ethical Culture Clash",the story proves that a large multi-national company such as Motorola can ask its employees,and should expect them to follow the same ethical standards they would practice if living and working within the U.S.borders.

Accepted Answer

A) True 
 B)False  False

Question 13

If a business fails to meet its responsibilities to its employees,which of the following is likely to occur?

Accepted Answer

A)  There is reduced employee turnover.
B)  Employees believe it is easier to get ahead.
C)  More jobs are created.
D)  Employees do the minimum needed to get by.E) A) and C)
F) A) and B)

Question 14

Idle Time Gaming,Inc. ,would like its employees,customers,and the general public to be aware of the activities and programs it has achieved for the community over the past year.The company might consider performing a:

Accepted Answer

A)  contributory analysis.
B)  responsibility review.
C)  social audit.
D)  annual payment report.E) A) and B)
F) None of the above

Question 15

A recent study revealed that employee fraud causes 30% of all business failures.

Accepted Answer

A) True 
 B)False

Question 16

After a few years of being in business,employees who worked for a start-up software company noticed that the owner overlooked certain questionable actions of high billing associates,versus other employees who worked hard but only brought in an average number of new clients each month.With respect to what you learned in this chapter about the ethical behavior of many Americans,which of the following statements applies here?

Accepted Answer

A)  This story indicates that moral absolutes are very prevalent today in business settings.
B)  The owner will continue to operate this way until someone blows the whistle.
C)  We cannot expect people in the U.S.to all follow similar ethical patterns because there are too many cultures to deal with.Businesses are no different.
D)  As is often the case today,some leaders will look at each situation individually when making value judgments.E) All of the above
F) A) and B) D

Question 17

The first step when facing an ethical dilemma is to ask:

Accepted Answer

A)  "Is it legal?"
B)  "Is it balanced?"
C)  "How will it make me feel about myself?"
D)  "Is it ethical?"E) None of the above
F) B) and D)

Question 18

Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

Accepted Answer

A) True 
 B)False

Question 19

Green washing:

Accepted Answer

A)  is the most popular sub-movement of the green movement.
B)  clears the path for a firm to develop products and services that benefit society.
C)  is the appearance of being "green",when in fact the business is only making green claims without genuinely demonstrating a commitment to going green.
D)  changing one's entire product line to only offering green products.E) A) and B)
F) A) and C)

Question 20

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

Accepted Answer

A) True 
 B)False

Exam 4: Demanding Ethical and Socially Responsible Behavior

Out-Tel,a computer chip manufacturer,knowingly sold defective chips and failed to notify customers of the potential problems.When the problem became public knowledge,the firm's stock price fell dramatically.This illustrates the value that investors place on the ethical behavior of businesses.

Correct Answer
verified

Blake Mycoskie started a shoe business known as TOMS.As a social entrepreneur,Mr.Mycoskie takes the concept of ___________________ to a new level.TOMS social causes are directly related to the firm's expertise: selling shoes.

Correct Answer
verified

Studies show that consumers are not concerned about the socially conscious behavior of the firms with which they do business.

Correct Answer
verified

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

Correct Answer
verified
Compliance-based ethics codes emphasize ...
View Answer

The social audit is:

Correct Answer
verified

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm.Enron and WorldCom participated in inappropriate accounting methods.According to the Legal Briefcase,"Cost of Corruption":

Correct Answer
verified

Business relationships often present ethical dilemmas that are:

Correct Answer
verified

Correct Answer
verified

Which of the following people would be most in favor of CSR Corporate Social Responsibility) ?

Correct Answer
verified

Making ethical choices is always easy.

Correct Answer
verified

The brewers of Budweiser beer encourage their customers to drink responsibly and "know when to say when." This reflects a compliance-based approach to ethics.

Correct Answer
verified
False

In the Reaching Beyond our Borders box titled,"Ethical Culture Clash",the story proves that a large multi-national company such as Motorola can ask its employees,and should expect them to follow the same ethical standards they would practice if living and working within the U.S.borders.

Correct Answer
verified
False

If a business fails to meet its responsibilities to its employees,which of the following is likely to occur?

Correct Answer
verified

Idle Time Gaming,Inc. ,would like its employees,customers,and the general public to be aware of the activities and programs it has achieved for the community over the past year.The company might consider performing a:

Correct Answer
verified

A recent study revealed that employee fraud causes 30% of all business failures.

Correct Answer
verified

Correct Answer
verified
D

The first step when facing an ethical dilemma is to ask:

Correct Answer
verified

Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

Correct Answer
verified

Green washing:

Correct Answer
verified

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

Correct Answer
verified

Exam 4: Demanding Ethical and Socially Responsible Behavior

Out-Tel,a computer chip manufacturer,knowingly sold defective chips and failed to notify customers of the potential problems.When the problem became public knowledge,the firm's stock price fell dramatically.This illustrates the value that investors place on the ethical behavior of businesses.

Correct AnswerverifiedShow Answer

Blake Mycoskie started a shoe business known as TOMS.As a social entrepreneur,Mr.Mycoskie takes the concept of ___________________ to a new level.TOMS social causes are directly related to the firm's expertise: selling shoes.

Correct AnswerverifiedShow Answer

Studies show that consumers are not concerned about the socially conscious behavior of the firms with which they do business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedCompliance-based ethics codes emphasize ...View AnswerShow Answer

The social audit is:

Correct AnswerverifiedShow Answer

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm.Enron and WorldCom participated in inappropriate accounting methods.According to the Legal Briefcase,"Cost of Corruption":

Correct AnswerverifiedShow Answer

Business relationships often present ethical dilemmas that are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following people would be most in favor of CSR Corporate Social Responsibility) ?

Correct AnswerverifiedShow Answer

Making ethical choices is always easy.

Correct AnswerverifiedShow Answer

The brewers of Budweiser beer encourage their customers to drink responsibly and "know when to say when." This reflects a compliance-based approach to ethics.

Correct AnswerverifiedFalse

In the Reaching Beyond our Borders box titled,"Ethical Culture Clash",the story proves that a large multi-national company such as Motorola can ask its employees,and should expect them to follow the same ethical standards they would practice if living and working within the U.S.borders.

Correct AnswerverifiedFalse

If a business fails to meet its responsibilities to its employees,which of the following is likely to occur?

Correct AnswerverifiedShow Answer

Idle Time Gaming,Inc. ,would like its employees,customers,and the general public to be aware of the activities and programs it has achieved for the community over the past year.The company might consider performing a:

Correct AnswerverifiedShow Answer

A recent study revealed that employee fraud causes 30% of all business failures.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

The first step when facing an ethical dilemma is to ask:

Correct AnswerverifiedShow Answer

Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

Correct AnswerverifiedShow Answer

Green washing:

Correct AnswerverifiedShow Answer

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Compliance-based ethics codes emphasize ...
View Answer

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Correct Answer
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False

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False

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Correct Answer
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D

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