Business ch 7

You are determined to promote ethical business practices throughout your organization. You have demonstrated a commitment to ethics by:

Adopting a business ethics policy Accepting the position of Chief Ethics Officer Offering clear protections for wisthle-blowers

You are a big believer in sustainable business practices and begin drafting your sustainability plan. Select the items that are appropriate for a sustainability plan.

Allowing a local electricity generating wind turbine manufacturer to install turbines on your property. Implement a recycling process for defective parts.

As you begin taking steps to eliminate the shortcuts that led to shipping defective product, you realize your actions are consistent with the socioeconomic model of social responsibility. Elements of that model include: (select all that apply)

Businesses can create a more stable environment for long-term profitability by helping to resolve social issues. Businesses cannot ignore social issues. Socially responsible decision-making by firms can prevent increased government intervention.

The local media published a story about the new ethics practices at your company, which resulted in a wave of positive publicity. This not only improved relationships with your existing customers, but also helped the company win two new accounts. Big ones. These accounts alone will increase profits next year by 20%. Which stakeholders are affected by this ethics policy and the resulting publicity?

Chevrolet, who uses your suspension systems in their SUVs Libby, who works third shift on the assembly line Roger, a school teacher in the town where your plant is located The government Maria, who owns stock in the company as part of her mutual fund

b. An oil company supports countries in the developing world by building oil fields that provide good-paying jobs to local residents. This is an example of a(n)

Economic model

c. A pharmaceutical company promotes health by developing a new flu vaccine. This is an example of a(n)

Economic model

e. A food company creates healthier cereals in response to market demand. This an example of a(n)

Economic model

In order to ensure prompt and accurate reporting of unethical business practices, you draft a company policy requiring all employees to report any unethical business practices directly to your office. In addition, all employees are required to submit signed copies of the policy to you. This practice is:

Ethical and legal

As you assume this new position, you realize in order to promote broad based ethical behavior you must act on several fronts. Check the areas where you should focus your attention to promote and maintain high ethical standards:

Implement a policy regarding how company employees will interact with customers and competitors. Implement a policy banning employees from accepting meals paid for by suppliers. Establish a mechanism to communicate potential safety issues and defective part recalls to employees and consumers.

As an employer, you demonstrated responsibility to employees by taking which of the following actions:

Implementing a mandatory safety training program for line workers

a. An oil company supports countries in the developing world by funding education and literacy programs, with the hopes that these programs foster innovation and human progress in these markets. This is an example of a(n)

Socioeconomic model

d. A pharmaceutical company promotes health by making company medicines available to low-income Americans at little or no cost. This is an example of a(n)

Socioeconomic model

f. A food company provides grants to support fitness and nutrition education in the local community. This is an example of a (n)

Socioeconomic model

After a month on the job, you reflect on the progress made so far. The product manager for the suspension department approaches you because he is worried the company will go too far the other way. In an effort to make sure no "shortcuts" are taken during the manufacturing process, he's afraid that the production line will become bogged down, costs will skyrocket, and the company's suspension systems will no longer be competitive. He's also concerned about shipping lead times becoming so long that the company cannot fulfill their orders on time - which will infuriate customers. The line workers are already getting anxious about all of the new "rules" and everyone is looking over their shoulder with fear of getting reported for unethical conduct. It's making the manager's job that much harder because the compensation of the line workers is partly based on how many systems they ship per month. You need to find a balance between promoting high ethical standards and allowing the production lines to remain productive and profitable. As you decide how to navigate this ethical dilemma, which of the following actions utilizes the guidelines for ethical decision-making. Select all that apply.

Solicit ideas from the product manager and line managers about how productivity enhancements could be implemented quickly but transparently, so that company management knows what decisions are being made on the production floor. Individually meet with members of the suspension production team to identify what represents a production "shortcut" versus a legitimate productivity improvement.

You have received a lawsuit from a customer seeking reimbursement for the defective products shipped plus additional financial damages. The damages being claimed in the lawsuit are based on the violation of laws related to which consumer right?

The right to safety