BUS 10

As you assume this new position, you realize in order to promote broad based ethical behavior you must act on several fronts. Check the areas where you should focus your attention to promote and maintain high ethical standards: a. Implement a policy banning employees from accepting meals paid for by suppliers. b. Establish a mechanism to communicate potential safety issues and defective part recalls to employees and consumers. c. Instruct all managers to lower production targets for all products so that more time can be spent on quality control. d. Implement a policy regarding how company employees will interact with customers and competitors.

a. Implement a policy banning employees from accepting meals paid for by suppliers. b. Establish a mechanism to communicate potential safety issues and defective part recalls to employees and consumers. d. Implement a policy regarding how company employees will interact with customers and competitors.

You are determined to promote ethical business practices throughout your organization. You have demonstrated a commitment to ethics by: a. Offering clear protections for whistle-blowers b. Asking the rest of the executive team to avoid company meetings about ethics. Avoiding these meetings will provide assurance to customers that the executive team was not involved in the ethical violations on the suspension production line. c. Accepting the position of Chief Ethics Officer d. Adopting a business ethics policy

a. Offering clear protections for whistle-blowers c. Accepting the position of Chief Ethics Officer d. Adopting a business ethics policy

Based on the example below, choose the most likely impact on the stakeholders. Example: A large jeans manufacturer decides to close its plant in U.S. and outsource production of jeans to a country with lower labor costs. All 300 employees at U.S. plant will be laid off. Cost of production will drop by 40%, and price of jeans will remain the same. Possible Stakeholders Likely Impact Investors ________________________1 Employees ________________________2 Customers ___________________________3 Local community (of U.S. plant) _____________________4 Government _____________________________5

1.Costs will decrease, potentially increasing profits 2. loss of jobs 3. no impact 4. higher unemployment and big, empty buildings in town 5. decreased tax revenue from income and payroll taxes.

Use the drop down menu to choose the model that would best complete the passage.a. An oil company supports countries in the developing world by funding education and literacy programs, with the hopes that these programs foster innovation and human progress in these markets. This is an example of ______________________ 1 .b. An oil company supports countries in the developing world by building oil fields that provide good-paying jobs to local residents. This is an example of a(n) __________________________ 2 .c. A pharmaceutical company promotes health by developing a new flu vaccine. This is an example of a(n) _____________________________ 3 .d. A pharmaceutical company promotes health by making company medicines available to low-income Americans at little or no cost. This is an example of a(n) ________________________________4 .e. A food company creates healthier cereals in response to market demand. This an example of a(n) __________________________ 5 .f. A food company provides grants to support fitness and nutrition education in the local community. This is an example of a (n) __________________________________6 .

1. Socieconomic model 2. economic mode 3.economic model 4. socieconomic model 5. economic model 6. socioeconomic model

A used car salesperson is showing cars to a man who is looking to purchase a small car. The man explains he has $8,000 to spend and would like to get a clean, reliable car he can use to drive to and from work. The man has narrowed his decision down to two cars—a blue sedan at this dealership or a silver coupe at a dealership across town. The salesperson checks the accident report on the blue sedan. He discovers it was in a major accident, but was repaired by a reputable body shop. He tells the man about the accident report which is an example of ___________________1 .The salesperson, hoping to make the sale, tells the man the dealership across town hikes up their prices and adds hidden fees to the sales price. The salesperson is not______________________ 2 .The salesperson, close to meeting his monthly goal, tells the man he will include 15 free carwash coupons and new floor mats if the man purchases the car today. The salesperson is not ________________________________ 3 .

1. being transparent 2. competing fairly and honestly 3. avoiding a conflict of interest

Founders of a new outdoor clothing retailer, Peak, strive to act ethically in their new business. The founders know this won't always be easy, but they have developed some guidelines to help them achieve their goals. In an effort to ___________________________1 , Peak will list all factories, farms, and textiles mills they do business with on their Web site. In order to make the biggest profit possible, many companies seek to cut expenses. Other companies in the industry may take advantage of farmers in foreign countries by buying wool and down for prices below market value and bribing government officials to bypass quota restrictions. The founders at Peak agree to _____________________________ 2 by partnering with foreign farmers and creating lasting relationships with them. Peak will offer farmers a living wage which reflects fair market value for materials and will not engage in any bribery activity.Peak founders believe they are designing and manufacturing the best outdoor clothing gear available on the market. Their Web site offers a side by side comparison of their products with competitors' most popular products. Consumers can compare Peak's Summit parka with parkas from Patagonia, Columbia, REI and other retailers on dimensions such as price, temperature rating, materials, and other features. This is an example of _____________________________ 3 .

1. transparent 2. avoid a conflict of interest 3. competing fairly and honestly

The local media published a story about the new ethics practices at your company, which resulted in a wave of positive publicity. This not only improved relationships with your existing customers, but also helped the company win two new accounts. Big ones. These accounts alone will increase profits next year by 20%. Which stakeholders are affected by this ethics policy and the resulting publicity? a. Roger, a school teacher in the town where your plant is located b. Chevrolet, who uses your suspension systems in their SUVs c. Libby, who works third shift on the assembly line d. The government e. Maria, who owns stock in the company as part of her mutual fund

a. Roger, a school teacher in the town where your plant is located b. Chevrolet, who uses your suspension systems in their SUVs c. Libby, who works third shift on the assembly line d. The government e. Maria, who owns stock in the company as part of her mutual fund

In order to ensure prompt and accurate reporting of unethical business practices, you draft a company policy requiring all employees to report any unethical business practices directly to your office. In addition, all employees are required to submit signed copies of the policy to you. This practice is: a. Unethical but legal b. Ethical and legal c. Unethical and illegal d. Ethical but illegal

a. Unethical but legal c. Unethical and illegal d. Ethical but illegal

The local media published a story about You are a big believer in sustainable business practices and begin drafting your sustainability plan. Select the items that are appropriate for a sustainability plan. a. Offer a settlement for the lawsuit filed by customers seeking reimbursement for defective suspension rods. b. Allowing a local electricity generating wind turbine manufacturer to install turbines on your property. c. Recommending changes in the law to strengthen the safety procedures manufacturers must follow when fabricating parts for the automobile industry. d. Implement a recycling process for defective parts.

b. Allowing a local electricity generating wind turbine manufacturer to install turbines on your property. d. Implement a recycling process for defective parts.

Select the actions a corporation can take to encourage ethical behavior. a. Punish whistle-blowers b. Create ethics code c. Establish ethics officers d. Provide ethical guidelines and enforcement for industry members e. Create high-stakes competition among workers f. Pass laws g. Demonstrate leadership commitment to ethics h. Ensure that employees know they won't be punished for ethical violations i. Protect whistle-blowers

b. Create ethics code c. Establish ethics officers g. Demonstrate leadership commitment to ethics i. Protect whistle-blowers

As an employer, you demonstrated responsibility to employees by taking which of the following actions: a. Meeting with employees and telling them you are there to 'help turn the company around'. b. Implementing a mandatory safety training program for line workers. c. Creating a policy on business ethics. d. Requiring employees to sign the business ethics policy.

b. Implementing a mandatory safety training program for line workers.

1. As you decide how to navigate this ethical dilemma, which of the following actions utilizes the guidelines for ethical decision-making. Select all that apply. a. Because of the concerns, allow the production workers to vote on whether the ethics policy should be implemented at the company. b. Individually meet with members of the suspension production team to identify what represents a production "shortcut" versus a legitimate productivity improvement. c. Solicit ideas from the product manager and line managers about how productivity enhancements could be implemented quickly but transparently, so that company management knows what decisions are being made on the production floor. d. Distribute a memo that communicates your sympathy for the concerns of the workers, but also be clear that new ethics polices must always take priority over productivity concerns. e. Inform the product manager about all of the liability that was created when the defective suspension systems were shipped. Show him the lawsuit to prove your point about liability, because it seems he doesn't fully understand the ramifications of what happened.

b. Individually meet with members of the suspension production team to identify what represents a production "shortcut" versus a legitimate productivity improvement. c. Solicit ideas from the product manager and line managers about how productivity enhancements could be implemented quickly but transparently, so that company management knows what decisions are being made on the production floor.

As you begin taking steps to eliminate the shortcuts that led to shipping defective product, you realize your actions are consistent with the socioeconomic model of social responsibility. Elements of that model include: (select all that apply) a. Company social obligations are met through the basic functioning of the business. b. Socially responsible decision-making by firms can prevent increased government intervention. c. Businesses can create a more stable environment for long-term profitability by helping to resolve social issues. d. Businesses cannot ignore social issues. e. Social concerns are primarily the responsibility of government and social institutions.

b. Socially responsible decision-making by firms can prevent increased government intervention. d. Businesses cannot ignore social issues.

You have received a lawsuit from a customer seeking reimbursement for the defective products shipped plus additional financial damages. The damages being claimed in the lawsuit are based on the violation of laws related to which consumer right? a. The right to be informed b. The right to choose c. The right to be heard d. The right to safety

d. The right to safety