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Exam 2: Being Ethical and Socially Responsible

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Question 91

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Harold Finn III and his son, father, and grandfather gathered last week to compare notes on their business.Harold's grandfather started the business in 1928.His father became active in 1947, Harold in 1965, and his son in 1983.During their conversations, they discovered that many things about the past were similar to conditions today, although others were quite different.For example, after the 1930s

A) government protection of workers and consumers increased.
B) working conditions were often deplorable by today's standards.
C) there was a period of laissez-faire business conditions.
D) the average work week under the law once exceeded fifty hours.
E) businesses were free to operate pretty much as they chose.

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

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Question 92

Multiple Choice

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Babkok Corporation set up an effective program for social responsibility.Its top managers developed a policy statement outlining key areas of concern.This statement will serve as a guide for other employees as they become involved in the program.Now,

A) a committee of managers should be appointed to plan the program.
B) employees should be appointed to submit suggestions to management.
C) a top-level executive should be appointed to direct implementation of the program.
D) employees should evaluate the program.
E) the program director should prepare a social audit for the firm at specified intervals.

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

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Question 93

Multiple Choice

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Elizabeth believes her company has discriminated against her because her minority coworkers, who are less qualified, have been promoted ahead of her.Which agency should Elizabeth contact?

Businesspeople face ethical issues every day, and some of these issues can be difficult to assess.

For health-related companies such as Weight Watchers, one of the most frequent ethical issues related to communications that they face is

The statement "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health" supports the consumers' rights to

Gabriel is an environmentalist with very strong beliefs about who should pay for environmental cleanup.What is most likely to be Gabriel's view?

One way a social responsibility program can be funded is by passing on the cost to the consumer in the form of higher prices.

When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer.This is an example of _____.

What are the three major consumerism forces today?

Why did Congress create the Equal Employment Opportunity Commission?

Major advances in consumerism have come through

Citizens have a right to demonstrate against unfair rate increases and safety violations as well as other issues.In doing so, they exercise their right to

How does the economic model of social responsibility differ from the socioeconomic model of social responsibility?

Which of the following accurately describes the objective of affirmative action?

One major reason for improving product safety is the consumer's demand for safe products.

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.Since the company created its code of conduct, employees have limited ____ or amount of freedom to perform an unethical act.

Fortunately, the acid-rain problem has been solved in recent years.

The motion picture industry uses a rating system to describe the content of its movies.Movies are accompanied by ratings such as PG (parental guidance suggested) or R (not suitable for those under 17) .This rating system satisfies consumers' right to

Major advances in consumerism have come through federal legislation.