Chapter 2: Concept Reviews

Which Act established a national air-quality standard for ozone?

Clean Air Act Amendment (1987)

Which document provides the information the firm needs to evaluate and revise its social responsibility program?

A social audit

What is the name for a plan designed to increase the number of minority employees at all levels within an organization?

Affirmative action program

______________ is the application of moral standards to business situations.

Business ethics

Who should prepare a social audit for the firm?

Director of the social responsibility program

____________ is the study of right and wrong and of the morality of choices individuals make.

Ethics

Green marketers must ensure that their claims are backed by evidence that shows a significant environmental benefit and does not mislead consumers. If they don't, which of the following groups would likely investigate them?

Federal Trade Commission

___________________ refers to the amount of freedom an organization gives an employee to behave unethically if he or she makes that choice.

Opportunity

Which Act (passed in 2002) provided sweeping new legal protection for employees who report corporate misconduct?

Sarbanes-Oxley Act

Which Act was passed to prevent businesses from restraining trade and monopolizing markets, and condemns "every contract, combination, or conspiracy in restraint of trade"?

Sherman Antitrust Act

Which model of social responsibility places emphasis not only on profits, but also on the impact of decisions in society?

Socioeconomic model of social responsibility

Why did Congress create the Equal Employment Opportunity Commission (EEOC)?

To investigate complaints of employment discrimination and sue firms that practice it

Which of the following is an individual factor that influences the level of ethical behavior in an organization? a. Significant others b. Personal values c. Cultural norms d. Use of the Internet e. Co-workers

b. Personal values

Which of the following statements is true regarding sexual harassment and other abusive behavior in the workplace? a. The majority of victims of bullying do report it. b. Sexual harassment can result in poor morale, high turnover, and expensive lawsuits. c. Management should wait until sexual harassment incidents occur and then create a policy to handle them. d. Bullying is illegal

b. Sexual harassment can result in poor morale, high turnover, and expensive lawsuits.

Which of the following is an argument against increasing social responsibility? a. Because business is a part of society, it cannot ignore social issues b. Social problems affect society in general, so individual businesses should not be expected to solve these problems c. Corporate time, money, and talent should be used to solve society's problems, not to maximize profits d. Business has the technical, financial, and managerial resources needed to tackle today's complex social issues e. Socially responsible decision-making by firms can prevent increased government intervention

b. Social problems affect society in general, so individual businesses should not be expected to solve these problems

According to the consumer bill of rights, the right to _______ assures consumers' interests will receive full consideration and appropriate action will be taken when customers complain.

be heard

Which of the following was not asserted as a basic right by President Kennedy's Consumer Bill of Rights? a. The right to safety b. The right to be informed c. The right to fair prices d. The right to choose

c. The right to fair prices

Which statement is true regarding ethical issues that arise out of a business relationship? a. As long as an issue is legal, it is not unethical to pressure others in the workplace to undertake the action regarding the issue b. Plagiarism does not have consequences in a business environment c. When ethical misconduct occurs in a business, investors also suffer d. The main consequence of ethics violations in the business workplace is humiliation e. Ethical issues, faced by businesspeople every day, are typically right or wrong and easy to assess

c. When ethical misconduct occurs in a business, investors also suffer

False and misleading advertising is an example of where ______________ issues can present ethical questions.

communications

The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers are called:

consumerism

Which of the following is correct regarding an effective code of ethics? a. It replaces the need for monitoring business information systems. b. It defines whistle-blowing as a violation of ethics within an organization. c. It provides organizational assurance that no payments or favors are offered to influence others. d. It helps create an environment where employees recognize the importance of code compliance. e. It covers all possible situation to eliminate problems within an organization.

d. It helps create an environment where employees recognize the importance of code compliance.

Ethical misconduct can take on many forms within the business environment, including all of the following, except: a. deceptive business practices b. withholding important information from investors or customers c. accepting gifts, entertainment, or other gratuity while working on a business deal d. prohibiting employees from taking gratuities from customers

d. prohibiting employees from taking gratuities from customers

Which of the following is an argument for increased social responsibility? a. If it is important, then the government will force businesses to make changes to procedures b. Social issues are the responsibility of government officials who are elected for that purpose c. Business managers are responsible primarily to stockholders, so management must be concerned with providing a return on the owner's investments d. Corporate time, money, and talent should be used to maximize profits, not to solve society's problems e. By helping resolve social issues, businesses can create a more stable environment for long-term profitability

e. By helping resolve social issues, businesses can create a more stable environment for long-term profitability

Whistle-blowers can be helped by protecting them from:

management retaliation

An issue related to fairness and honesty that involves knowingly taking the words, ideas, or original material of others without acknowledging the source is known as ____________________________________.

plagiarism

The contamination of water, air, or land through the actions of people in an industrialized society is known as:

pollution

Consumer-oriented legislation passed during the last 55 years is primarily based on _____ rights.

six

The general sets of factors that influence standards of ethical behavior in an organization are individual factors, opportunities, and _____________________________.

social factors

Companies that contribute resources, knowledge, and products as well as money to help neighbors and others during times of crisis are demonstrating ____________________________.

social responsibility