Biz101 Chapter 2
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
Organized efforts by individuals, groups, and the government to help protect consumers from unfair business practices are referred to as _______.
consumerism
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
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 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?
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 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
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 approaches to social responsibility reflects the lowest degree of socially responsible practices?
obstructionist stance
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
Direct influence to shape social responsibility practices by the government is most often accomplished through _______.
regulation
Which of the following BEST describes a conflict of interest?
An employee engaging in an activity that may benefit that individual to the detriment of his or her employer
Which of the following groups or individuals would NOT be considered an organizational stakeholder?
Competitors
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
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
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
_______ 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
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
As a supervisor for a food processing company cleanup crew, you contact a reporter for a major news network and disclose unsafe food-handling practices that are condoned by your company. The company is a major advertiser on the station that hosts the news and was warned that there was a potentially damaging story in the works. The story is never aired and upper management is aware that you are the source and has warned you to stay quiet. Your BEST course of action would be to _________.
contact the company's ethics committee or a U.S. Government regulatory agency such as the USDA
In addition to a wide variety of soda, Pepsico produces and distributes corn and potato chips, breakfast cereals, and a variety of juices and teas. As part of its Corporate Social Responsibility campaign, the company has stated goals to reduce added sugars, fats, and sodium by the year 2025. The stakeholders MOST likely to benefit from these changes are___________.
customers
EpiPens contain a pre-set dose of epinephrine, a life-saving drug used by people at risk of experiencing anaphylactic shock from an allergic reaction. In 2007, Mylan obtained the rights to sell EpiPen and increased the list price from $94 to $609. Because it is a prescribed medication, sales of EpiPen did not drop and company revenues have steadily increased. This is BEST described as an example of a(n) ____________ issue.
ethical
Your business partner routinely posts his personal reviews of your products online in order to boost sales. This might be __________ as well as ___________.
illegal; unethical
Some opponents of the national minimum wage laws believe that eliminating the minimum wage would virtually wipe out unemployment. Proponents of the minimum wage point to historical studies that show that raising the minimum wage has little or no effect on unemployment. As a corporate CEO, the BEST way for you to try to change the minimum wage law would be to __________.
personally contact your state and federal legislators
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
