Module 6: Business Ethics and Corporate Social Responsibility

A company wishing to reinforce its commitment to ethical behavior could institute:

A Whistleblower program

What is the difference in definition between a bribe and a gift?

A bribe is an act in expectation/return for a quick pro quo

Kickback is a form of bribery distinguished on the basis of:

A negotiated agreement among both the giver and receiver.

Golf outings, meals, entertainment, and vehicles have been used in lieu of cash to pay purchasing agents in exchange for business deals. This type of payment is known as:

Bribery

________ regulate(s) actions and behaviors that lie beyond control from government and applies to all aspects of business conduct relevant to an entire organization and individual actions.

Business ethics

Companies that use the pink ribbon symbol for Breast Cancer awareness on their product packaging are practicing:

Cause-related marketing

Bribery, conflict of interest, honesty and integrity, whistle-blowing are:

Common business ethical challenges

Jon is a middle manager who has just joined a large pharma corporation. On his first day with the company, he is asked to read and sign a corporate code of ethics. This document consists of:

Company vision, values, and guidance on ethical standards

As a business owner, you also serve on the City Council of the location of your business. When city contracts are awarded, your business is in the running to win the bid. Concerned citizens claim you are unethical citing:

Conflict of Interest and Self Dealing.

Google.org made a $2.4 million grant to GiveDirectly, a nonprofit that provides direct cash aid to the poor. This example of Corporate Social Responsibility is known as:

Corporate Philanthropy

Examples of approaches to Corporate Social Responsibility include:

Corporate Philanthropy, Cause-related Marketing, Sustainability

Corporate philanthropy, cause-related marketing, and sustainability are examples of:

Corporate Social Responsibility programs

Whistleblower laws in the United States are designed to protect:

Employees

The key to ethical behavior by both a business and individual employees is:

Ethical standards and leadership set and practiced by senior management

________ are a set of standards that govern the conduct of a person, especially a member of a profession. A good example is the medical profession's oath to "do no harm."

Ethics

Nepotism is a form of conflict of interest and describes situations where:

Family members or their common employer gain favorable treatment because of their family ties.

Overstating the impact of environmental actions to promote "eco-friendly" products is known as:

Greenwashing

What does business ethics involve?

It refers to standards or values governing behavior and actions of individuals in a business organization and actions of the business itself.

________ follow(s) the dictates of laws, which are written down and interpreted by the courts.

Legal behavior

Facts supporting the importance and nature of corporate social responsibility include:

Most large corporations spend money on lobbying.

You are the Chief Purchasing Officer for an established business. Your daughter (a recent college grad with a business degree) applies for a job with your company. If hired, your family relationship could constitute concerns of:

Nepotism

In 2015, the German automaker Volkswagen revealed that it had installed software on millions of cars in order to trick the Environmental Protection Agency's emissions testers into thinking that the cars were more environmentally friendly than they were. This action was:

Non-compliant with environmental regulations

Stock prices may be impacted by a company's social responsibility performance, when:

Poor performance drives stock prices down.

The CEO of Wells Fargo resigned in October 2016 due to the scandal surrounding the bank's:

Practice of forcing employees to open new customer accounts without the customer's permission.

In spite of the controversial nature of Corporate Social Responsibility corporations are adopting programs because:

Profit related benefits, recruiting and keeping the best employees, risk management.

The term "business ethics" refers to:

Standards and values that govern the actions and behaviors of employees and the business itself

Determining the legality of a course of action will include a review of:

Statutes, regulations, and codes

To be prepared for your exam, you need to study for 10 hours. How should you split up your study time to be most effective?

Study for 1 hour per day

If you need to study for 10 hours to be prepared for your exam, how should you space out this study time to learn the most?

Study for 1 hour per day for the 10 days leading up to the exam

The Golden Spigot hotel and casino was recently rocked by scandal with unethical gaming practices and lack of certain hotel safety disclosures. Upper management has been fired and you are brought in as the new CEO to change things around. You have called everyone to a company meeting and are starting off by defining how you will be implementing strict business ethics. Which of the following begins to change the business ethics environment best for the company?

The Golden Spigot will publish standards governing the behavior and actions of employees and actions of the business, and implement mandatory policy training for all employees.

A company's supply chain is part of its Corporate Social Responsibility because:

The company is also responsible for its suppliers' products and services.

Companies who provide services and/or component products to another company are necessarily included in corporate social responsibility programs. These outside companies are known as:

The supply chain

After taking $45 billion in taxpayer funding to remain afloat, CitiBank spent $50 million on a new private jet. This action was:

Unethical since taxpayer money was given solely with the intent to keep CitiBank solvent.

Employees compelled to report a significant wrongdoing by their employer are protected by:

Whistleblower protection laws

As a real estate agent, you learn that the home you are trying to sell resides in a low-lying frequently flooded area. The seller has not disclosed the information, and the buyer has only seen the property on "dry" days. Choose your best ethical choice:

You disclose the information to the potential buyer and inform the seller of your action. You are risking the sale of the property.

Joel has been accepting small presents from his company's suppliers for years. Now one supplier has approached him with an offer to share a $50k commision in exchange for a lucrative contract award. This action would be defined as:

a Kickback

John, the officer of a large corporate department, interviews both internal and external candidates for a new leadership position in his division. The most qualified candidate is Joan, who has been with the company for 16 years and is 59 years old. John would like to promote Joan, but is concerned that she will not have the energy or commitment to handle the job in years ahead. This is an example of:

a legal dilemma

Corporate Social Responsibility strategies encourage:

a positive impact on the environment and stakeholders.

You notice a co-worker attending the same church that you attend, and over time you begin to become attracted to one another. Your company policy forbids romantic relationships between employees. This is an example of:

an ethical dilemma

Althea works for the Sunnyvale Tax Department in the collections department. She knows that the owner of the vacant lot next door to her home owes almost 5 years back taxes and the property will soon be auctioned off at a bargain price. If the lot is sold and someone builds on it, she will no longer have a view of the lake. On a Monday morning, her supervisor asks her to contact the local newspaper and place the notice of sale in the weekend edition. Althea knows that once the notice goes into the paper, dozens of investors will show up to bid on the lot. If she "forgets" to put the notice in the paper, no one outside of the few people in the tax office will know the sale is occurring and she and her husband could purchase the lot for ¼ of its actual market value. In this situation, Althea is facing a decision that involves:

an issue of honesty and integrity

The sincerity of corporate Social Responsibility programs is questioned:

as corporate "window-dressing".

Referring to a company's policy regarding the acceptance of gifts will:

assist you in distinguishing between a bribe and a gift.

The purpose of aligning corporate ethics and social responsibility is to:

build trust and create community between employees and stakeholders across all levels

As society evolves, what constitutes legal behavior:

changes

A ________ tends to support a company's obligation to its' stakeholders, rather than regulating a profession.

code of ethics

Expulsion from membership in a professional organization could occur due to failure to comply with its':

code of practice

Companies today are held to higher standards than ever before. Consumer and other groups consider not only the quality and price of a company's products but also its:

commitment to environmental and social concerns

The Body Shop decided years ago to hold its products to higher standards than competitors. It never tested on animals and spent money on building a more sustainable supply chain for its products. This is an example of corporate social responsibility which illustrates the Body Shop's:

commitment to environmental and social concerns

David is a sales person for a large software company. In working with a new client on their needs for a new accounting system, he hears them converse about the need for a third-party consultant to help instill best practices. Although David's company offers the same professional services, David recommends his brother's firm who is an independent consultant in the same field. This would be considered a:

conflict of interest

You work for a company that manages apartment buildings. The company did not renew their contract with a local landscaping company and are now looking for a new landscaping services provider for the apartment complex. You are asked by management to locate a new landscaping company. Your son runs his own lawn care business. If he gets the contract for the apartment complex you will no longer need to make his car payments and he might even start paying you rent. This situation brings up a potential ________ for you.

conflict of interest

Decision makers in organizations exhibit values and create practices and policies which are a result of ________ beliefs held by these individuals.

ethical

Juan is a middle manager at a technology company. This week he is hosting a group of businesspeople who are considering a strategic partnership with the company. As the week progresses, some of the visitors ask Juan for access to sensitive classified information that is about the company's newest technology developments. He knows that the partnership is of great importance to the company, and if he can solidify the deal, it could lead to a VP position in the company for himself. He is now faced with a(n) ________ issue.

ethical

Malia is a partner of a small clothing company. This week she has been hosting a group of potential investors. Several of the potential investors asked about the company's newest technology and their ability to sell clothing online. If these potential investors decide to invest in her company it could mean enormous growth in revenue. However she is being asked to divulge specific information about the company that she and her partner decided would not be discussed with the investors. She is now faced with a(n) ________ issue.

ethical

A pharmaceutical company owns all of the marketable medicines for a disease. Due to the critical nature of the disease, and their market monopoly, they are able to charge extremely high prices for the drug. The shareholders are delighted with their returns but the CEO faces a(n) ________ every day.

ethical dilemma

Google's statement of "don't do evil" is an example of:

ethical policy

Many businesses will set the ________ through their organizational leadership.

ethical tone

Legal behavior changes as society:

evolves

Home healthcare providers, in collusion with referral agents, bill Medicare for unnecessary treatment. This type of arrangement constitutes a form of bribery known as:

kickback

Fred is a realtor selling Katie's home. Katie filled out the "Property Condition Disclosure" paperwork, and Fred is obligated to disclose present and future disclosures to potential buyers. The property is now under contract to sell to new owners. In a casual conversation however, Katie tells Fred three years ago there was a termite problem but it was eradicated. After checking the paperwork, Fred discovers no indication of this on the disclosure paperwork. Fred is now faced with a(n) ________ dilemma.

legal

How do we differentiate between ethical and legal behavior in the workplace?

legal behavior is governed by laws, whereas ethical behavior is governed by standards

Kathy, in accounts receivable, receives a cash overpayment from a loyal customer. Her boss never reviews the details of accounts receivable transactions, so Kathy could easily pocket the overpayment amount. Kathy is faced with a(n) ________ dilemma.

legal dilemma.

When executives bend the rules or turn a blind eye to bad behavior, the policies ________ value and executives ________ the respect of employees.

lose, lose

Which of following categories fall within the definition of conflict of interest?

nepotism, self-dealing, outside employment, and gifts from friends

To assist you in distinguishing the difference between a gift and a bribe you should:

refer to company policy regarding the acceptance of gifts.

In the National Business Ethics Survey, ________ of the employees identified pressure to meet unrealistic objectives as the most likely cause for them to compromise their ethical standards.

the majority

A healthcare service company delivering in-home treatment to the elderly receives referrals from a Medicare authorized provider for a fee. This activity becomes an illegal kickback scheme when:

the provider makes unnecessary treatment referrals and gets paid for them by Medicare

Executives play an important role in creating company policies on ethics and by:

visibly following and upholding the policies.

Consumers wishing to encourage corporate social and environmental responsibility can:

vote with their wallet