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Which type of pollution has seen the least improvement since environmental issues became important?


A) land
B) air
C) ocean
D) water
E) factory

F) A) and C)
G) B) and E)

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Customers expect a firm's products to


A) boost sales.
B) be profitable.
C) earn a reasonable return on investment.
D) be available everywhere.
E) be safe, reliable, and reasonably priced.

F) A) and C)
G) All of the above

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President Franklin D.Roosevelt's program for restoring the economy and improving social conditions became the foundation for increased government involvement in business.

A) True
B) False

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A social audit is a


A) review of the costs of operating a social program.
B) report of what a business has done and is doing about social issues.
C) review of a tax statement by the Internal Revenue Service.
D) review of management's social activity for the year.
E) report filed by social sector accountants.

F) C) and D)
G) B) and C)

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Noise pollution can be reduced by


A) cleaning up land polluted with chemicals and industrial waste.
B) modifying machinery and equipment.
C) banning strip-mining of coal.
D) nonselective cutting of forests.
E) the development of agricultural land for housing and industry.

F) A) and B)
G) A) and E)

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What specific gas is internationally considered a top concern for air pollution?


A) carbon monoxide
B) nitrogen dioxide
C) carbon dioxide
D) greenhouse gas
E) hydrogen monoxide

F) A) and E)
G) A) and B)

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Dinesh lives in Phoenix where he hears almost daily reports about the high levels of ozone along with suggestions on when individuals should purchase gasoline.As he views the hazy condition in the sky, he decides the government is basically ignoring environmental problems.Which statement best describes the government's involvement?


A) The government relies mostly on businesses to control various types of pollution and expects them to cover the costs.
B) Although the government has established several environmental agencies, actual spending on reducing pollution is only about $100 million per year.
C) The government is delegating most of the responsibility for a cleaner environment to individuals and nonprofit organizations.
D) The government is encouraging technology that will eliminate pollution but not supporting this research financially.
E) The government is spending several billions of dollars a year to reduce various types of pollution.

F) A) and B)
G) B) and E)

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Certain executives were aware of the financial difficulties of WorldCom.What action might they have taken to help the owners, employees, and communities involved?


A) whistle-blowing
B) selling their shares of WorldCom
C) leaving the company
D) transferring to a more ethical division
E) denying their knowledge of the company's problems

F) A) and B)
G) C) and D)

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Employees have an easier time determining what is acceptable behavior if their company provides them with a code of ethics.

A) True
B) False

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Excellent Air Incorporated (EAI) Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations. Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success. -Refer to Excellent Air Incorporated.Initially, employees were not willing to go to EAI management with ethical issues, but would instead report them to the press.This is an example of _____.


A) whistle-blowing
B) a social audit
C) poor employees
D) opportunity emptor
E) a narc

F) B) and D)
G) B) and C)

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A social responsibility program may be funded by the federal government through tax reductions or other incentives.

A) True
B) False

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Travis is in charge of writing a report for his company that talks about the quality and safety of his company's products, business practices, involvement in the community, human resources, and efforts to reduce pollution.This is called a(n) _____.


A) ethics report
B) social audit
C) compliance review
D) responsibility policy
E) citizenship report

F) A) and C)
G) A) and D)

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Ranee is a businessperson who works for a successful and admired Fortune 500 company.How often is Ranee likely to encounter ethical issues in the workplace?


A) once or twice during her career
B) about two to three times per year
C) approximately once a month
D) almost every week
E) on a daily basis

F) B) and C)
G) None of the above

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An effective program for social responsibility takes time, money, and organization.

A) True
B) False

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By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth maximization.The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments?


A) Corporate resources should be devoted to maximizing profits, not to solving society's problems.
B) Individual businesses should not be responsible for solving problems that affect all of society.
C) Socially responsible actions by business firms increase the role of government in business.
D) Businesses are ill-equipped to handle today's complex social issues.
E) Social responsibility promotes environmental stability and long-run profitability.

F) A) and B)
G) All of the above

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Two additional rights added in the last decade are the right to consumer education and the right to courteous service.

A) True
B) False

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During the first quarter of the twentieth century, working conditions were deplorable by today's standards.

A) True
B) False

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Which of the following best describes the trend in social responsibility models used by companies?


A) Most companies are changing from a socioeconomic approach, to an economic approach, to social responsibility.
B) There has really been no pattern of change over the last century because most companies take a socioeconomic approach.
C) There has been a sporadic shift back and forth between the economic and socioeconomic model as the best business solution.
D) Relatively little transformation has left the economic model as the philosophy for most businesses.
E) More companies have been bypassing the economic model in favor of the socioeconomic model in recent years.

F) All of the above
G) None of the above

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Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy.However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most.The factor affecting the ethical behavior of Publix's employees is _____.


A) individual
B) social
C) opportunity
D) demographic
E) internal code

F) B) and E)
G) A) and B)

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"We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers.If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation.This manager's comments reveal what concept?


A) the socioeconomic model of social responsibility
B) the economic model of social responsibility
C) the strictest model of social responsibility
D) the need to preserve management rights
E) consumerism

F) B) and C)
G) B) and D)

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