Chapter 4 Demanding Ethical and Socially Responsible Behavior

The management of Enron committed which of the following illegal acts

Created off the books partnerships to hide debts

What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008

Greed

Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:

allows them to connect directly with customers reaches broad and diverse groups allows them to reach specific groups more directly

Enhanced forms of philanthropy directly related to the company's competencies are called:

corporate social initiatives

The strong relationship between academic dishonesty and dishonesty at work is likely to

make employers reluctant to hire those who have cheated

Economic Milton Friedman believed that a business's only social responsibility was to make _ for its owners and that anything else was socialism

money

Even small companies participate in _ through donations and volunteer support of local causes and national charities, such as the Red Cross and the United Way

philanthropy

Whistleblowers can be helped by protecting them from:

retaliation

Which of the following illustrates the difficulties in enforcing U.S. ethical standards on foreign countries

Banning child labor when the child's salary is needed to support the family Sometimes what would be considered as bribes in the United States are considered gives in other countries

Which of these categories should social audits measure

Community relations Product safety Environment

Enron's management committed which of the following ethical violation

Company executives created off- the- books partnerships to hide losses

Identify examples of how companies contribute to social justice

Contributing toward caring for the elderly Cleaning up the environment Building community toilets

Which of the following are dimensions of social performance

Corporate responsibility Corporate policy Corporate philanthropy

_ is a businesses concern for the welfare of society

Corporate social responsibility

From the list below identify the groups considered to be a type of watchdog group

Customers Union officials Environmentalist

Identify which of the following would classify as Internet plagiarism

Cutting and pasting information from a website without giving proper credit Copying full article content from Internet sites and presenting it as your own Buying research papers online and submitting them as your own

Which of the following are examples of outside stakeholders that must be told about a company's ethics program

Distributors Suppliers Customers

Studies show that companies with good ethical reputations also enjoy which of the following outcomes as a result

Draw more customers Attract and retain better employees

True or false: Trust and cooperation must exist between workers and management, but it is not a prerequisite for positive relationships between businesses or nations

False

Which of the following behaviors are illegal in the United States, but potentially put our companies at a disadvantage in overseas markets

Influence peddling Hiring young children for factory work Bribery

The objective "create an environment that supports ethically sound behavior" describes which type of ethical code

Integrity based

When faced with an ethical decision what should you ask yourself

Is the proposed action legal Is it balanced How will it make me feel about myself

Which of the following are true regarding ethical behavior

It does not subtract from the bottom line; it adds to it

_ make business people more accountable for their actions than knowing what is ethical

Law

Which of the following is an example of a corporate social initiative

Legman's Supermarkets donating regularly to Foodlink

Which of the following are examples of green jobs that cannot be outsourced offshore

Manufacturing solar panels Installing solar panels to existing buildings Weatherizing existing buildings

Which of the following represents ethical behavior beyond what is legally required

Offering clients the best product for their needs regardless of profitability Investing in local communities in which a company does business

Which of the following represent examples of how corporations set positive standards of ethical behavior

Periodically asking every employee to evaluate the company's ethics performance Reevaluating its ethics codes based on the input of its customers

Which of the following are examples of how U.S companies try to influence overseas suppliers to act according to our ethics

Starbucks buying only fair-trade coffee from overseas suppliers Refusing to buy goods produced by prison labor Companies choosing not to do business with unethical overseas suppliers

Which of the following examples would be a situation in which you would want to question the legality of the decision before acting upon it

The decision to terminate an employee

Which of the following are reasons a business should be managed ethically

To avoid lawsuits To maintain a good reputation To attract customers

Which of the following facts best exemplifies the statement that "ethical problems are not unique to the United State"

Top leaders from other countries have been charged with bribery

Rank the following jobs according to their importance in influencing the implementation of ethical standards. List the most influential on top

Top management Supervisor Full-time co-workers Part-time co-workers

True or false: A company that treats employees with respect will usually have employees who respect the company in return

True

True or false: An employee with access to Internet at work, who does personal shopping during work hours is acting unethically

True

True or false: Corporate Social Responsibility (CSR) and corporate profits can at time go hand in hand

True

True or false: Individuals have social responsibilities regarding their ethical behavior in the business world

True

True or false: Many investors believe that by choosing to put their money into companies whose goods and services benefit society, the can improve society's financial health as well as their own

True

True or false: Perceptions of ethics can differ in different societies

True

An employee was fired for not carrying out an unethical request by his manager. This is an example of

a negative consequence of acting ethically

By making socially conscious decisions about whether or not to buy a company's products, customers are:

acting as watchdogs affecting a company's sales

Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and _ charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets

bribery

Many businesses believe that they should have an influential and important role in:

building communities

Elements of an integrity-based ethics code include

clear guiding values trust and shared accountability

Corporate social initiatives are an enhanced form of corporate philanthropy dealing directly with a company's core_

competencies

Ethic codes that emphasize control and punishment of wrong-doers are _-_ ethics codes

compliance based

Socially _ companies are views more favorably by consumers

conscious

Patagonia's statement that they donate at least 1 percent of sales to reverse the steep decline in the overall health of our planet is an example of

corporate policy

The statement by Patagonia that "A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of:

corporate policy

The most forceful way to communicate the importance of an ethics code is to:

enforce it

_ are the activists who apply pressure by publicly naming companies that pollute the air and water

environmentalists

Joseph has taken a sick day, although he is not actually sick. This is an example of a decision that is legal but not _

ethical

Facing a decision is either act unethically at the request of a supervisor or be fired for not acting as directed is referred to as an:

ethical dilemma

Societies set the standards for moral behavior, known as _

ethics

The standards of right versus in a society are also called:

ethics

_ guide people's decisions about how to treat one another in an honest and responsible way, whereas _ are narrower and protect us from fraud, theft, and violence

ethics laws

Having a(n) _ is a vital in enforcing the ethics code of an organization

ethics officer

Trust and cooperation between workers and managers must be based on which of the following

fairness moral integrity honesty

Many investors believe that it make both _ and moral sense to invest in companies that plan ahead to create a better environment

financial

A product's carbon_ is one possible, although sometimes controversial, measure of the product's impact on the environment

footprint

A person who lacks moral absolutes decides what is right or wrong:

for their individuals needs at any time depending on the situation

The right to safety, to be informed, to choose, and to be heard are

four basic rights of consumers

Increasing public concern for the environment created by the _ movement has more businesses looking for environmentally friendly ways to do business

green

The _ movement has had a positive impact on the U.S labor force by creating jobs in new industries such as the manufacture of social panels

green

According to some research, three out of five new businesses fail. Accordingly, if a business is to have a chance of survival, it is important to first be _ when dealing with customers

honest

In the case involving a secretary at IBM who spread inside information to her friends and family, the U.S. Securities and Exchange Commission (SEC) required the defendants to pay a penalty of twice their profit gain. This is an example of:

how the government tries to deter people from engaging in insider trading

The SEC Regulations on Fair Disclosure are designed to prevent _

insider trading

The use of private company information by an employee for personal financial gain is called_

insider trading

Written ethics codes can be categorized as

integrity-based compliance- based

Enforcement in a timely manner is the _ and most critical step in the development of an ethics code program

last

_ protect people form fraud, theft, and violence, while _ are used to decide how we treat others responsibly according to society's views of right and wrong

laws ethics

A company that has socially responsible human resources management is

likely to perform better financially

Some believe that there are six steps a company must follow to improve its business ethics. Some of these steps are:

managers and others must be trained to consider the ethical implications of all business decisions Having an ethics office to allow anonymous reports of unethical conduct Top management must adopt and unconditionally support an explicit corporate code of conduct

Workers who have lost their commitment, confidence, and trust in the company and its management may

manipulate budgets and expenses do the minimum to get by

Financial and political leaders can restore trust in the free market system by

passing laws to make accounting records more transparent making businesspeople more accountable for their actions

In the 1970s, the Foreign Corrupt Practices Act sent a chill throughout the U.S. business community by criminalizing the act of _ foreign business or government leaders to get business

paying

Compliance-based ethics codes focus on:

penalizing wrong-doers increasing control

Using information form the internet or other sources without giving credit to the author is:

plagiarism

The Dodd-Frank Wall Street Reform and Consumer Protection Act:

provides a "bounty" for successful whistleblowers

Companies that try to act in a socially responsible way are likely to focus on such activities as

providing safety equipment and training for their workers using recyclable packaging increasing the diversity of their workforce

Companies, such as Sears and Dow chemical, have tried to influence their international suppliers by:

refusing products made by prison labor requiring they conform to U.S. standards for pollution and safety

Effective ethics officers:

relate well to employees at all levels can be trusted to maintain confidentiality

Making ethical decisions that are fair and balanced over the long term is important to maintaining healthy _

relationships

Socially conscious research organizations exist to analyze and _ on corporate social responsibility

report

Making decision that we know are different from what is right erodes our _

self-esteem

If the statement "ethics is caught more than it is taught" is true, then management facilitates this by:

setting a good example

The _ is a systemic evaluation of an organization's progress toward implementing socially responsible and responsive programs

social audit

The low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is _

social media

Corporate social responsibility (CSR) is based on the belief that business should be concerned with the welfare of _ and not one of their owners

society

Setting a strong example is important, because organizational ethics are learned by observing _

strong managers

Many U.S. businesses demand socially responsible behavior from their international_ to assure they do not violate U.S. human rights and environmental standards

suppliers

Socially conscious investors insist that a company extend its own high standards to its _

suppliers

Which of the following exemplify possible outcomes of insider trading

the SEC brings charges against those involved Insider trading charges are brought Investors purchase stock only to see the price plummet as the real information is made public

Developing _ between management and employees through fairness, honesty and moral integrity is he basis for an ethical organizations

trust

New accounting laws that produce more transparency will hopefully restore _ in the accounting profession

trust

The watch dog group that is most concerned with workers' right and hunts down companies who them is:

union leaders

Executives at Enron, and Tyco were found guilty of _ behavior that damaged their companies' reputations

unlawful

About one out of four adults in the U.S. chooses to take responsibility for the communities they live in through _ work

volunteer

Insiders, such as lower-level employees, who report concerns about a company's accounting or auditing practices are called:

whistleblowers

Is ethical behavior more than obeying the law

yes