Intro to Business Ch. 2
An automobile manufacturer learns about an ignition switch defect that may cause serious safety issues but rather than enact an expensive recall of hundreds of thousands of vehicles, management covers it up. Which approach to social responsibility would this BEST demonstrate?
Obstructionist stance
Which of the following approaches to social responsibility reflects the lowest degree of socially responsible practices?
Obstructionist stance
Alysia's cosmetic company was at the forefront of the move to ban testing on animals. Her firm has adopted an aggressive energy conservation approach to manufacturing, and it actively participates in programs to reduce poverty and illiteracy in the community. Which of the following would BEST describe the company's approach to social responsibility?
Proactive stance
Which of the following BEST describes a conflict of interest?
When an activity may benefit an individual to the detriment or his or her employer
_______ involves public disclosure, often by an employee, of corruption, a wrongdoing, or illegal or unethical conduct on the part of others within an organization.
Whistle-blowing
John, a purchasing agent, is offered an all-expense paid trip to Hawaii by a supplier if he agrees to award a substantial amount of business to the supplier. Accepting this trip would constitute __________.
a conflict of interest
A manager who discriminates against a member of a protected class in an employment decision such as hiring, firing, training, or promotion demonstrates _______ behavior.
both unethical and illegal
Ethical or unethical behaviors by employees and managers in the context of their jobs are referred to as _________.
business ethics
Which of the following questions would a manager ask if s/he were examining an action or policy based upon the ethical norm of caring?
Is this action consistent with people's responsibilities to each another?
A company donates a share of its profits to charitable programs and is a corporate sponsor of the philharmonic orchestra. The company is demonstrating social responsibility toward which of the following organizational stakeholders?
Local community
"First lie, then deny" would be consistent with which approach to social responsibility?
Obstructionist stance
Which of the following groups or individuals would NOT be considered an organizational stakeholder?
Competitors
A company that produces and distributes alcoholic beverages places all legally required warning labels on its products. However, in countries where such warning labels are not required, it does not do so. What approach to social responsibility does this BEST demonstrate?
Defensive stance
Which of the following is deemed as the single MOST effective step an organization can take in order to encourage ethical behavior in the workplace?
Demonstrate top management support of ethical standards.
A manager must decide whether a particular course of action is ethical. What is the FIRST step the manager should take in reaching this decision?
Gather the relevant factual information.
A manager who is examining an action or policy based on the ethical norm of justice would likely ask which of the following questions?
Is the action or policy consistent with what is considered fair or equitable?
Absco Enterprises meticulously follows all laws and regulations and attempts to satisfy ethical requirements, but it does not go out of its way to address social or environmental issues unless it is persuaded to do so. This would suggest that the company has adopted a(n) _______ stance to social responsibility.
accommodative
Organized efforts by individuals, groups, and the government to help protect consumers from unfair business practices are referred to as _______.
consumerism
A senior level manager in a corporation learns that the Chief Financial Officer is going to be indicted the following day on charges of accounting fraud. He quickly sells his shares of stock in the corporation, fearing that the stock will fall after news of the indictment. This is an example of _______.
insider trading
The National Association of Realtors hires a consulting group to meet with members of Congress and the Senate and develop, advance, and influence legislation concerning the ownership and operation of real estate. This is an example of _______.
lobbying
Phyllis's company donates $1 million to the local humane shelter so that it can build a new facility in the area. This is an example of ________.
philanthropic giving
A group formed for the purpose of soliciting funds and then contributing those funds to the campaigns of politicians is known as a(n) _______.
political action committee (PAC)
The National Weather Service is predicting that a major hurricane will impact the area within the next 48 hours. A local hardware store quickly doubles its prices on portable generators, plywood, and batteries in response to this weather forecast. This is an example of _______.
price gouging
Direct influence to shape social responsibility practices by the government is most often accomplished through _______.
regulation
Jack discovers that his employer is dumping dangerous chemicals into the river rather than disposing of them correctly. When management refuses to listen to his concerns, he contacts the Environmental Protection Agency to report the firm's conduct. This is an example of _______.
whistle-blowing
