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Exam 2: Being Ethical and Socially Responsible

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Question 41

Multiple Choice

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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 C)
G) B) and E)

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Question 42

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Within a firm, social responsibility begins with management's attitude.

A) True
B) False

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Question 43

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Megan Miller is an ethics officer at a large financial institution. She likely performs all of the following duties except

Major advances in consumerism have come through

The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.

Business ethics rarely involves the application of moral standards to the business activity of a normal company.

What are the three sets of factors that influence the standards of behavior in an organization?

XYZ Coffee Nancy is a highly respected person within her community. She is Hispanic in a largely Caucasian-populated area. Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position. After the interview, Nancy felt confident that she would be hired because of her qualifications. However, she did not get a call back. Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend. The company had hired an inexperienced Caucasian male with a history of unemployment. At this point, Nancy was quite aggravated, but she left the issue alon -Refer to XYZ Coffee. Before he got his job, another description for the employee who was hired over Nancy would be

What is probably the most effective way for a company to encourage ethical behavior?

​The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. This economic model is based on the notion that

You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Chicago Bears if you help him out. This tactic is

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

Tom stormed into the office, exclaiming, "That's the last straw! I've experienced unethical behavior at this company one time too many. I'll be calling the press immediately." It appears that Tom is about to engage in

How can the government encourage ethical behavior? Give an example.

Why are fairness and honesty in business important ethical concerns? Give examples.

When Ford discovered the fault with its Pinto model that caused the car to explode easily when hit from the rear, what action should it have taken to preserve basic consumer rights?

A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporations from which it might purchase component parts. The company is trying to prevent

A credit card company is offering an annual percentage rate of 3.9 percent. However, the company fails to mention that this is an introductory rate, and when consumers receive their bills after six months the rate increases to 21.9 percent. The consumers feel their right to ____ has been abused.

Before the 1930s, the average work week prescribed by law was forty hours; however, workers were dissatisfied because there was no minimum wage.

At Ledbetter Industries, employees are allowed one-hour lunches, but it has become common that most stroll back fifteen minutes late every day. The factor affecting the ethical behavior of Ledbetter's employees is