adaptive test prep lesson 2
McDonald's has lowered the sale, sugar and fat levels in Happy Meal menu items over recent years and has provided improved nutritional information on packaging and the back of trayliners. This exemplifies which of the following statements?
Because business is a part of our society, it cannot ignore social issues like childhood obesity.
Companies that are environmentally conscious would most likely state which of the following claims?
As awareness of environmental issues has increased, many companies have made increased efforts to implement sustainable business practices.
Deloitte offers its employees up to 48 paid volunteer hours in which they can use their skills to better the world. This would BEST demonstrate which of the following statements?
Because business is a part of our society, it cannot ignore social issues.
Granite Enterprises hires a third-party consultant to measure its performance in areas such as plant safety, ecology, and community involvement. This is an example of _______.
a social audit
The American Medical Association (AMA) has issued standards of conduct that define the essentials of honorable behavior for physicians. This is an example of:
a trade association's role in encouraging ethics.
When you are torn between acting ethically in a certain situation or letting the issue go unresolved, you are experiencing:
an ethical dilemma
The application of moral standards to business situations is known as:
business ethics
A set of guidelines that defines and governs ethical principles and actions within an organization and establishes consequences for violations is known as a(n) _______.
code of ethics
On Black Friday 2016, clothing company Patagonia donated 100% of sales to grassroots organizations working to create positive change for the planet. This example best illustrates which of the following sustainability strategies?
community outreach
When companies campaign for environmental cleanups, this is called:
community outreach
Amber, a sales rep, is provided with a company car, but she is required to reimburse the company for personal mileage each quarter. She inflates the number of miles she drives for business purposes so that she has fewer personal miles to report. This would best be described as a(n)_______.
conflict of interest
Which of the following laws required credit bureaus to provide credit reports to consumers regarding their own credit files and information on how to correct inaccurate information?
credit card liability act
A company that adheres to the _______ model of social responsibility believes that its social obligations are met through the production and marketing of profitable products needed by society.
economic
Company policy at Harper Enterprises is enforced fairly, consistently and equitably. Which factor affecting the level of ethical behavior within the organization would this most accurately reflect?
opportunity
Company policy prohibits you from accepting gifts from suppliers that exceed $25 in value, but the supplier is offering tickets to an NBA game on the 50-yard line, so you accept the tickets, knowing your supervisor won't find out. Which factor affecting ethical behavior is demonstrated here?
opportunity
You find a wallet containing a significant amount of cash in a store parking lot. Before you turn it into the customer service desk of the store, you're tempted to take the cash. Which of the following factors is influencing your decision to keep the cash or turn it in with the wallet?
opportunity factors
The three factors that affect the level of ethical behavior in an organization are:
opportunity, individual factors, and social factors.
Seventh Generation, a producer of laundry detergents, soaps and other cleaning products, uses plant-based and recycled materials for all packaging and leaves out fragrances or chemicals that could be harmful to consumers. What sustainability strategy does this best reflect?
product design improvements
A manufacturer of fire extinguishers recalls nearly 38 million fire extinguishers because they can fail to activate during a fire emergency. What is the impact of this issue on investors?
public perception of company
Although not included in the original Consumer Bill of Rights, President Bill Clinton added the right to _______ to the Consumer Bill of Rights in 1994.
service
Which of the following is an example of transparency? Hiding information about a company's operational behavior is the opposite of:
A company shares high-level financial information with its employees, including salaries of all employees from the CEO down.
Which of the following statements is MOST consistent with the economic model of social responsibility?
Companies have an obligation to produce quality goods and services and maximize profits.
Which government agency is responsible for the enforcement of laws that make discrimination illegal in the workplace?
Equal Employment Opportunity Commission
Which of the following individuals would be considered a whistle-blower?
Marie reports safety violations in the plant to OSHA, a governmental agency that regulates safety.
Which of the following statements concerning social responsibility is most accurate?
Most firms have chosen some middle ground between the two extremes of the economic model and the socioeconomic model of social responsibility.
Whistle-blowers who report corporate misconduct are protected under which of the following laws?
Sarbanes-Oxley Act of 2002
Which of the following is an example of a conflict of interest?
You choose a supplier because you are a shareholder in the supplier's company and stand to gain personally from the decision.
A human resources manager accepts center court tickets to an NBA game from a training and development company and then recommends the purchase of the company's products without evaluating products from other vendors. The human resources manager is guilty of _______.
a conflict of interest
American economist Milton Friedman wrote, "There is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." Based on this statement, Friedman appears to support the _______ model of social responsibility.
economic
The socioeconomic model of social responsibility:
emphasizes profits as well as the effect of business decisions on society.
A company is evaluating whether it should move operations to a state with a lower cost of living, lower wages, and lower taxes. Which stakeholder groups will be negatively impacted if they decide to move operations?
employees and the local community
The objective of an affirmative action program is to:
ensure that minorities are represented within the organization in approximately the same proportion as in the surrounding community.
PepsiCo's facility in Casa Grande, Arizona generates half its electricity requirements with solar power, and water is recycled to drinking standards. This best illustrates the sustainability strategy of:
facility and vehicle improvements.
Which of the following laws outlawed abusive collection practices by third parties?
fair debt collection practices act
Which of the following laws requires all products sold across state lines to be labeled with information such as net weight, ingredients, and manufacturer's name and address?
fair packaging and labeling act
Stakeholders are those impacted by the activities of a business, including investors, employees, customers, suppliers, and the government. Which of the following obligations does a business owe its customers?
fair prices and product quality
Stakeholders are those impacted by the activities of a business, including investors, employees, customers, suppliers, and the government. Which of the following obligations does a business owe its employees?
fair wages and safe working conditions
You own a gas station in a small town that has only one other gas station. Rather than engage in price wars with the owner of the other station and decrease both of your profits, you reach an agreement that you will offer the same prices. This behavior would be considered:
illegal and unethical
A coworker is running late and sends you a text, asking you to clock in for her at work because she's already on probation. You refuse to do so. Which factor affecting ethical behavior is demonstrated here?
individual factors
A company knowingly includes incorrect information on its financial statements to induce shareholders to invest in the company. What ethics violation does this best reflect?
lack of transparency
How should you as a manager act in order to maintain ethical behavior in your organization?
lead by example
A coworker is running late and sends you a text, asking you to clock in for her at work because she's already on probation. You agree to do so because she's a friend and you don't want to see her get fired. This action is:
legal but unethical
Cheating on a test in your accounting class is:
legal but unethical
A company has a policy that it employs only non-smokers. The HR manager learns that an employee smokes off the job and fires her. Although smoking is _______, it is _______ because it violates company policy.
legal;unethical
You're a plant manager in a factory in Taiwan. Customs is holding up a badly needed shipment but a Customs agent will release the shipment if you pay a "facilitation fee" of $5,000. Which of the following factors is influencing your decision to accept or decline his offer?
social factors
Your supervisor is out of town at a conference for a few days, so you come in late and take a longer lunch hour while she's gone. Which of the following factors is influencing your decision to do so?
social factors
A business's initiatives to assess and take responsibility for its effects on social and environmental wellbeing as well as profitability are known as:
social responsibility
A company believes that, in addition to the economic responsibility to be profitable and the legal responsibility to obey the laws of the nation, it has an ethical responsibility to do what's right even when the business isn't compelled to do so by law. This is best described as the _______ model of social responsibility.
socioeconomic
Stakeholders are those impacted by the activities of a business, including investors, employees, customers, suppliers, and government. Which of the following obligations does a business owe the government?
tax revenue
The government agency that deals with contamination and use of water, land, and air is the:
the Environmental Protection Agency.
A company appointments an ethics officer who is responsible for training employees on ethics and taking action on ethics code violations. This best demonstrates which of the following?
the company's role in encouraging ethics
The basic framework for ethical behavior is _______.
the legal system
When you apply for a mortgage, the lender must give you several disclosures, including a good faith estimate that spells out the estimated fees you'll need to pay at closing, a mortgage servicing disclosure statement, and a consumer information booklet. Which basic consumer right does this illustrate?
the right to be informed
Which of the following is NOT one of the basic consumer rights set forth in the Consumer Bill of Rights?
the right to fair prices
A company refuses to recall its strollers despite numerous injuries, claiming that its strollers are safe when properly assembled and used by the customer. Which basic consumer right do the company's actions violate?
the right to safety
A company's employee handbook states that all disclosures made in financial reports and public documents are fair, accurate and timely, and misrepresentation of facts or falsification of records is cause for immediate dismissal. The intent of this statement is to encourage _______.
transparency
Zappos is totally open with its vendors in terms of internal information instead of being secretive and using private information as a means to increase its leverage with those vendors. This is an example of _________.
transparency
UPS operates one of the largest private alternative fuel and advanced technology fleets in the U.S., including all-electric, hybrid electric, and hydraulic hybrid vehicles. What sustainability strategy does UPS appear to be embracing?
vehicle improvements
A popular cereal company was accused of misleading customers by claiming that its cereal contained immunity-boosting properties, whereas its competitors' cereals did not contain these properties. This is an example of _______.
violating fair and honest competition
Jonathan learns that his company is dumping toxic chemicals in a nearby river. He reports his observations to his supervisor, who tells him to mind his own business. Jonathan then contacts the Environmental Protection Agency (EPA) to report the situation. Jonathan is:
whistle-blowing