BUSN ch.4

Corporate etiquette is the obligation of a business to contribute to society. True or False

False

In the context of the three types of emissions tracked by corporations, Scope 1 emissions refer to direct emissions produced by corporate operations. True or False

True

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees. a. organizational culture b. socioeconomic background c. workplace diversity d. sexual orientation

a. organizational culture

An American petroleum company is facing legal action because it discharges a significantly higher level of greenhouse gases than the level permitted by the Environmental Protection Agency. In this scenario, the company is guilty of increasing its _____. a. ecological debt b. carbon footprint c. green procurement d. liquid-to-gas ratio

b. carbon footprint

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____. a. green marketing b. corporate philanthropy c. integralism d. consumerism

b. corporate philanthropy

A chocolate manufacturing company promoted a high-calorie product without providing complete information about the risks involved in its consumption. In the context of business behavior, the company's business conduct was: a. illegal but ethical. b. legal but unethical. c. illegal but unethical. d. legal but ethical.

b. legal but unethical.

Aragon, a brand of inverters, provides products that work well in the first year of their use. The performance of the products, however, starts declining after the first year, and the products eventually become unusable within a short period of time. The pattern of breakdown is similar for all Aragon inverters. Reports suggest that Aragon intentionally creates inferior products to increase repurchases. In the given scenario, Aragon is guilty of _____. a. modular function deployment b. planned obsolescence c. crash simulation d. project mismanagement

b. planned obsolescence

Transparency International, a leading anticorruption organization, published its yearly index of "perceived corruption" across 168 countries in 2015. Its findings showed that: a. there was greater corruption in the business cultures of richer countries than poorer countries b. .the United States scored lesser than most of the European countries in the index of perceived corruption. c. countries such as India and China had a higher score in the index of perceived corruption than the United States. d. the corruption level in the world's poorest countries was very low as most businesses were owned by the government.

b. the United States scored lesser than most of the European countries in the index of perceived corruption.

In the context of codes of ethics, the Johnson & Johnson Credo has guided the company profitably through a number of crises. This is considered the best-known code because it: a. allows employees to choose the kind of moral and ethical principles they wish to follow. b. carefully refrains from allowing whistle-blowing. c. carefully refrains from overpromising financial rewards. d. focuses on ethnocentrism and moral absolutism.

c. carefully refrains from overpromising financial rewards

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to: a. produce products that you know will break before their time. b. reward integrity and lead by example. c. collaborate with other medical clinics to guarantee low prices in low-income counties. d. encourage fraudulent accounting.

c. collaborate with other medical clinics to guarantee low prices in low-income counties

Anaida is an entrepreneur who believes in providing equal opportunity to people regardless of their age, gender, race, or religion. She is open-minded and detests the idea of taking advantage of others. In the context of universal ethical standards, Anaida most likely possesses the core value of _____. a. responsibility b. frugality c. fairness d. citizenship

c. fairness

In the context of a socially responsible organization, which of the following statements is true of consumerism? a. It describes the judgmental and excessive bargaining power of buyers. b. It is a drive that supports contribution to nonprofits through cause-related marketing. c. It focuses on the right of the customers to be involved in the pricing of certain products. d. It is a movement that suggests that customer rights should be the starting point of any business.

d. It is a movement that suggests that customer rights should be the starting point of any business.

In the context of monitoring ethics and social responsibility, which of the following statements is true of a social audit? a. Firms that monitor themselves are entitled to tax exemptions for most of their services. b. Determining how to measure the achievement of goals is the starting point for a social audit. c. It does not account for social-responsibility indicators, such as community involvement. d. The threat of government legislation keeps some industries motivated to self-regulate.

d. The threat of government legislation keeps some industries motivated to self-regulate.

Rene's boss asks her to perform a social audit of the company following mass media's harsh criticism of the company's ethical standards. In this case, Rene will first: a. determine how to measure the achievement of goals during the social audit. b. evaluate if the firm had achieved its initial social responsibility objectives. c. quantify the involvement of the firm in societal development activities. d. establish the goals required to conduct the social audit.

d. establish the goals required to conduct the social audit.

Fritzman Inc., a market research company, stocks its office pantry with an array of organic drinks and snacks to promote healthy eating habits among its employees. It also provides all its employees a free membership to a local gym. These gestures are Fritzman Inc.'s idea of _____. a. consumerism b. corporate philanthropy c. freeganism d. social responsibility

d. social responsibility