Business Ethics Assessment Questions 6-11

Bribery generally injures individuals and which other entities?

in addition to individuals, bribery injures competitors, the government, and the free-market system as a whole

As of 2018, the current federal minimum wage was ________. a. $7.25 per hour b. $10 per hour c. $12.50 per hour d. $15 per hour

a. $7.25 per hour

A successful telecommuting program would include which of the following? a. a written policy that spells out expectations b. an oral policy the manager can change at will c. subjective criteria for each individual worker d. preference for some people to telecommute over others

a. a written policy that spells out expectations

The use of robots at work ________. a. can reduce the exposure of humans to dangerous working conditions b. costs more than human labor c. must first be approved by the Occupational Safety and Health Administration d. is unlikely to affect the number of people in the overall workforce

a. can reduce the exposure of humans to dangerous working conditions

Understanding the various personalities at work can be a complex task but it is an important one for developing which of the following? a. collegiality b. emotional intelligence c. empathy d. personality harmony

a. collegiality

How could offering a shared job help an employer recruit more employees?

applicants who are interested in working fewer hours will be encouraged to apply for a job they would have to pass up if it were full-time

A payment in some form (cash or noncash) for an act that runs counter to the legal or ethical culture of the work environment is called ____________. a. insider trading b. bribery c. illegal transaction d. manipulation

b. bribery

In the United States, CEO pay is on average ________ times as high as the pay of the average worker in the same company. a. 30 b. 50 c. 100 d. 300

d. 300

Participating in the gig economy often means working for a company as a part-time worker with no guarantee the job will last. Why would someone do it?

gig work allows flexible scheduling, the ability to work for more than one company at a time, and the ability to work more or fewer hours each week, as desired

T/F?: Minimum wages have at least kept pace with the cost of living, because of the automatic cost-of-living adjustment clause in the law.

- False - minimum wages have not kept up with inflation, in fact they have fallen far behind

T/F?: Most European countries have multipayer health care systems like the United States.

- False - most European countries have single-payer health care systems

T/F?: Workplace drug testing is completely prohibited in some states.

- False - no state completely bands drug testing, some regulate it to make sure it is fair and accurate

T/F?: Children are discerning viewers of television advertising.

- False - research studies indicate that children are the least-discerning audience for much advertising content

T/F?: Sexual harassment is unethical but not illegal.

- False - sexual harassment is both unethical and illegal

T/F?: Advance permission from employees is required before they can be electronically monitored under federal law.

- False - if an employer is monitoring any device owned by the company, such as a telephone or computer, no advance notice is required

Though federal law does not mandate it, do some companies nevertheless allow LGBTQ employees to extend insurance coverage to partners?

Yes, the law does not mandate or prohibit extending benefits to LGBTQ partners; it is up to the company

T/F?: All fifty states require that an employee refrain from acting in a manner contrary to the employer's interest.

True

T/F?: Cosmetics manufacturing is an area where testing with synthetic human skin is an acceptable substitute for animal testing.

True

T/F?: Diversity programs may fail due to resistance from employees within a company.

True

T/F?: Emotional intelligence is a willingness to step into someone else's shoes.

True

T/F?: Employees are more likely to develop some degree of brand loyalty when they have a common sense of purpose and identity with the company.

True

T/F?: Even rational adults often fail to cast a suspicious eye to sophisticated ad pitches and end up making frivolous purchases.

True

T/F?: Insurance coverage offers a benefit we hope never to claim.

True

T/F?: One drawback to job sharing is that employees may become competitive with one another, which could cause communication difficulties.

True

T/F?: Some telecommuters may be penalized by a perception that they are lazy.

True

T/F?: Telecommuting presents some difficulties for on-site technology departments providing security and technical assistance.

True

T/F?: The First Amendment does not protect employees at work who criticize their boss or their company.

True

T/F?: The design of corporate campuses is meant to enhance opportunities for employees to collaborate.

True

T/F?: The percentage of income earned by the top 1 percent of households in the United States has more than doubled since the early 1980s.

True

T/F?: The terms "sharing economy" and "access economy" both refer to a marketplace that differs from the traditional, more capital-intensive, shareholder-owned corporations.

True

T/F?: U.S. union membership today is at the lowest level since the 1950s.

True

Generally, Europe has more restrictions on animal testing than does the United States. How does this affect U.S. companies?

U.S. companies lose sales abroad because they cannot sell products that were tested on animals in the European Union markets

T/F?: Minimum wages are established by federal law only.

- False - minimum wage can be set by city (municipal), state or federal governments

T/F?: Business insurance is a relatively recent offering.

- False - British merchant shippers began insuring themselves against loss of their cargos in the 17th century

T/F?: Employer-sponsored wellness programs have no downsides for employees.

- False - Employer-sponsored wellness programs carry some risk of invasion of worker privacy

T/F?: The right to work without joining a union is controlled by federal law.

- False - Right-to-work laws are state laws

. T/F?: Title VII of the Civil Rights Act prohibits discrimination based on sexual orientation.

- False - Title VII of the Civil Rights Act does not address sexual orientation and federal laws do not prohibit discrimination based on this characteristic

T/F?: There are not yet viable alternatives to animal testing in medical research.

- False - alternatives include the use of patient-drug databases, virtual drug trails, computer models and simulations, noninvasive imaging techniques, and microdosing

T/F?: The phrase caveat emptor means the seller is principally responsible for purchase decisions, not the buyer.

- False - caveat emptor means the buyer is principally responsible for purchase decisions, not the seller

T/F?: Worker displacement is a problem that companies have a legal duty to address when implementing the use of robots.

- False - companies have no such duty

T/F?: Because legal and cultural differences allow bribes in some other countries, U.S. firms and their employees are permitted to pay them.

- False - despite legal and cultural differences that may allow bribes in other countries, U.S. firms and their employees are prohibited from paying them

T/F?: Entrepreneurs are usually motivated by the teamwork spirit.

- False - entrepreneurs are usually motivated by the hope of profit

T/F?: Most U.S. companies prohibit employees from disclosing or discussing salaries among themselves.

- False - generally speaking, labor law gives workers the right to discuss among themselves the specifics of their individual employment agreements, including matters of salary

T/F?: There are no similarities between legal protections in the workplace for religion and disability.

- False - in both cases, employers must be willing to make a reasonable accommodation for the employee

Do some states have laws mandating a higher wage than the federal minimum?

- Yes, a state can set its own minimum wage higher than the federal level - currently 29 states do so

Federal law does not currently protect LGBTQ applicants from discrimination in hiring. Are there any applicable state laws that do so?

- Yes, approximately half of U.S. states have local laws that provide protection even though federal law does not - yet some of those states prohibit sexual orientation discrimination only in public workplaces, not private ones

Could an ethical case be made for managers dictating that employees adopt or avoid certain lifestyle practices (e.g., legally consuming cannabis) even when they are off the job? What would that argument be? What ethical counterarguments could be made?

- Yes, such a case could be made, particularly if the company is providing health coverage for its employees, because the cost of this coverage to the employer is driven by the # of health claims made against it by workers - Furthermore, absenteeism reflects the health of employees, and their actions off the job help determine this - Conversely, permitting employers to stipulate worker behavior when not on the clock places great oversight in the hands of management and reduces individual autonomy significantly

What are some of the reasons that have contributed to women making less than men in similar jobs?

- among the factors are discrimination, historically wage rates, and artificially manipulated job titles

How can an employer develop trust in a telecommuting employee?

- an employer can communicate clear expectations and then regularly check the employee's successful completion of tasks according to specifications

If you were designing an office building for a mid-size advertising firm, what ideas could you incorporate to enhance collaboration?

- any new office building could incorporate flexible work space to allow for greater collaboration among employees - less space would be dedicated to individual offices - a manager would also want to include collaborative technology that allows employees to easily contact customers, vendors and other suppliers

Should insurance coverage be mandatory for some U.S. areas, such as hurricane coverage in the Southeast, tornado coverage in the Midwest, earthquake coverage on the Pacific Coast? Why or why not? Should government subsidies help underwrite the cost of this coverage? Why or why not?

- arguably, yes - residences and businesses in these catastrophe-prone areas certainly would benefit from coverage - the difficulty comes in paying for it, it can be very expensive given the potential for catacylsmic loss - so, an apparatus that would combine payment on the part of the insured but supplemented with tax subsidies might be most fair

Based on a non-compete agreement what should the employee avoid creating with the employer?

- conflict of interest: the employee must not act in a way that would result in a conflict of interest with the employer

Why have some states raised minimum wages above the federal minimum?

- cost of living variations and concern about a shrinking middle class are positive motives for a state to enact its own above-federal minimum wage

Why should employees care about the way they treat customers?

- customers' perceptions are formed by the employees with whom they have contact, and these perceptions affect not only the company but all the employees who depend on its success for their livelihood

What duty requires an employee to maintain the secrecy of proprietary material such as trade secrets, intellectual property, and customer data?

- duty of confidentiality: employers are well within their rights to expect employees to honor their duty of confidentiality and maintain the secrecy of such proprietary material as trade secrets, intellectual property, and customer data

What is typically not an appropriate motive for reporting the employer to authorities unless the company is breaking the law?

- employees should not seek revenge on a boss with whom they are angry with - of course, even if an employee has a personal revenge motive, if the company is actively breaking the law, it is still important that the wrongdoing be reported

Artificial intelligence and robotics in the United States are thus far largely unregulated. Do you see more regulations coming? Why or why not?

- likely, yes, for example in the area of self-driving cars, where we have already (in 2018) experienced a pedestrian's death caused by a self-driving car

Why do some companies provide free or inexpensive meals for their employees? Are they behaving ethically by doing so?

- making free or inexpensive food available in the workplace is a receiving and retention tool - the employer may also hope that if food is available on the premises, employees will spend less time getting meals and more time working - it might be considered unethical to try to control employees' time and limit social interactions away from work

How does executive pay in the United States compare to that in other countries?

- most studies indicate that U.S. executives are paid much more highly than executives in other countries, including those that are very competitive in the U.S. - the pay ratio is approximately 300 in the U.S. are compared with 22 in the UK, and 12 in Germany

Religious apparel and/or appearance are protected under Title VII's umbrella of religious nondiscrimination. Give an example.

- one example of religious apparel that is protected under Title VII is Muslim women's head scarves, which, in most situations, they may wear

Premium rates for insurance coverage are based on statistical calculations of the historical rate of incidence of certain kinds of accidents, disasters, and theft, among other calamities against which we insure ourselves. Is this the most equitable way to assign these rates? Why or why not?

- statistically, this makes sense, but it often pays out unfairly for this insured individuals who absolutely do not contribute to the higher incidence of claims in certain areas - for example, suppose you are a very safe driver in a neighborhood of dangerous drivers... your premiums for auto insurance will reflect not so much on your own safety record as the overall rate of claims in your community

Studies have been conducted on the financial performance of companies with high levels of diversity. Briefly DISCUSS the results of such studies.

- studies indicate that the financial performance of companies with a diverse workforce is above average for their industries - McKinsey & Company found that companies featuring great diversity in their workforces typically enjoyed earnings between 15-35% greater than their respective US industry medians

What are examples of benefits or perks that women usually value more than men?

- surveys show that women value benefits related to childcare and health care more highly than do men, although the benefit mix any employee values most is an individual one

Since the passage of federal laws such as the Civil Rights Act of 1964, the percentage of women in leadership positions has improved but not reached parity with that of men. Briefly DISCUSS the percentage of women in leadership positions in different industries and what might be some of the benefits of improving the representation of women.

- the % of women in leadership positions remains much lower than for men, generally less than 20% of positions - the benefits of greater gender diversity in the workforce include improved internal relationships and employee morale and more effective internal & external communication - studies have also shown that companies in the top 25% for executive and/or board diversity had returns on equity more than 50% higher than those companies that ranked in the lowest 25%

The primary law prohibiting discrimination against disabled workers is the ADA. What is its main requirement?

- the ADA's main requirement is that employers make reasonable accommodations for applicants and workers with disabilities to allow them to perform the essential functions of the job

Why is union membership at an all-time low?

- the U.S. has switched from a manufacturing economy to a service economy - the law now affords workers many of the protections they once got only through a collective bargaining agreement

Should drug testing of employees be allowed?

- the answer is yes, as long as a company is responsible for what its employees do - then businesses need to check for drugs due to reasons such as workplace safety and protection of property

What are the two major exceptions to the Electronic Communications Privacy Act that weaken its protections of employee privacy rights?

- the business purpose for doing so - the consent exception, which allows employers to monitor employee communications provided employees have given their consent

What are the four categories of violence at work according to the National Institute for Occupational Safety and Health (NIOSH)?

- traditional criminal intent - violence by one worker against another - violence stemming from a personal relationship - violence by a customer

List the factors that help establish the ethics (and legality) of gift giving and receiving.

- value of a gift - its purpose - the circumstances under when it is given - the position of the person receiving it - company policy - the law

How prevalent has redlining been in the United States?

- very prevalent, though it is essentially illegal everywhere, traces of it remain

Which of the following is especially important for developing and maintaining employee loyalty to the brand? a. empowerment b. engagement c. commitment d. dedication

a. empowerment - employers can encourage positive behavior toward customers by empowering employees to use their best judgement when working with them

One danger a growing start-up can face is ________. a. encroaching bureaucracy b. lack of good employees c. legal issues d. venture capitalists

a. encroaching bureaucracy

Which of the following is not a potential downside of a corporate campus? a. Impaired productivity b. Reduced ability of labor markets to adjust to changing conditions c. Adverse impact on local businesses d. Increased fiscal burden on local government

a. impaired productivity

The buying or selling of stocks, bonds, or other investments based on nonpublic information that is likely to favorably affect the price of the security being traded is which of the following? a. insider trading b. bribery c. illegal transaction d. manipulation

a. insider trading

Psychological appeals succeed when they ________. a. make consumers feel better about themselves b. let consumers compare themselves to their peers c. show consumers how to save money d. introduce new products

a. make consumers feel better about themselves

The primary reason small-business entrepreneurs might want to hire mostly contract labor is that ________. a. the cost of fringe benefits is reduced b. only contract workers can be part-time but employees must be full-time c. only employees can file workers compensation claims d. it improves the company's stock price

a. the cost of fringe benefits is reduced

If an ADA accommodation is significantly expensive, ________. a. the courts may rule that it is not reasonable b. the courts may rule that it must be provided anyway c. the EEOC guidelines do not apply d. the federal government must subsidize the expense

a. the courts may rule that it is not reasonable

In the European tradition, the main responsibility for supplying workers with health care lies with which of these groups? a. the government and labor unions b. labor unions c. nonprofit agencies and private companies d. individual workers

a. the government and labor unions

What advantages does a company gain from hiring gig workers?

advantages include reduced payroll taxes, reduced cost of benefits, and the ability to use and, hence, pay for workers only when they are needed

Regardless of their working style preferences, or quirks, what do employees owe one another?

employees owe each other courtesy and respect

Which of the following is not a prospective benefit to the firm of implementing a telecommuting program? a. higher productivity of telecommuting workers b. greater connectivity and collaboration among employees c. lower operating costs d. more satisfied workers

b. greater connectivity and collaboration among employees

Efforts to get employees to believe in the product to commit to the idea that the company is selling something worth buying, and even to think about buying it are part of ___________. a. brand loyalty b. internal marketing c. employee engagement d. company identity

b. internal marketing

Laws protecting animal rights in cosmetic testing are ________. a. more advanced in the United States than in the European Union b. more advanced in the European Union than in the United States c. more advanced in Asia than in the United States d. more advanced in Asia than in the European Union

b. more advanced in the European Union than in the U.S.

According to data presented in the chapter, about how much do women earn in comparison with men doing the same job? a. a lot less (about 40%-50%) b. somewhat less (about 70%-80%) c. almost the same (95%) d. about the same (100%)

b. somewhat less (about 70%-80%)

Diversity and inclusion at all levels of a private-sector company is ________. a. mandated by federal law b. the approach preferred by many companies c. required by state law in thirty states d. contrary to the company's fiduciary duty to stockholders

b. the approach preferred by many companies

Corporate culture comes from ________. a. the commitment of the company's employees b. the founder's idea of what the work environment should be like c. government regulations about labor relations d. the nature of the company's product or service

b. the founder's idea of what the work environment should be like

An employee who works in the graphic design department of a large advertising agency most likely cannot moonlight after business hours for a friend's __________. a. bakery business b. web design business c. construction business d. landscaping design business

b. web design business

Going to an official government agency and disclosing an employer's violation of the law is ___________. a. insider trading b. whistleblowing c. free speech expression d. tattle telling

b. whistleblowing

The primary law prohibiting religious discrimination in the private sector workplace is ________. a. the First Amendment of the Constitution b. state law c. Title VII of the Civil Rights Act d. the Declaration of Independence

c. Title VII of the Civil Rights Act

What characteristic is common to most entrepreneurs? a. an advanced degree b. deep management experience c. a driven, highly competitive nature d. a large network of business contacts

c. a driven, highly competitive nature

The common law concept that requires an employee to render loyal and faithful service to the employer is ________. a. the duty of confidentiality b. a non-compete agreement c. the duty of loyalty d. trade secret protection

c. duty of loyalty

Alternatives to animal testing for cancer drugs ________. a. do not exist b. exist but are prohibitively expensive c. exist and are not any more expensive than animal testing d. exist and are far cheaper than animal testing

c. exist and are not any more expensive than animal testing

Google ________. a. has the most diverse workforce of any major U.S. company b. uses a strict quota system in its hiring practices c. is similar to other technology companies, most of which lag on diversity d. promotes women at higher rates than men

c. is similar to other technology companies, most of which lag on diversity

The middle class in the United States ________. a. has steadily increased every year since World War II b. has steadily declined every year since 1990 c. shows a significant decline since 2000 d. has grown since the recession of 2008

c. shows a significant decline since 2000

How often should managers in a workplace anticipate an inspection from the Occupational Safety and Health Administration? a. every day b. once a month c. upon request or complaint d. never

c. upon request or complaint

When considering the issue of work-life balance, which of the following points does not apply? a. Each employee probably assesses this differently. b. Managers and workers as cohorts often have different perspectives on it. c. Workers with families at home should be entitled to a "better" balance. d. All employees have a right to pursue this.

c. workers with families at home should be entitled to a "better" balance

Are individual states allowed to have laws protecting LGBTQ applicant or employee rights? a. Yes, but it is not really necessary because federal law already protects them. b. No, because it would violate federal law, which prohibits it. c. Yes, some states extend this protection because there is no law at the federal level. d. No, because the Supreme Court ruling in Obergefell v. Hodges now protects these rights

c. yes, some states extend this protection because there is no law at the federal level

In what ways does telecommuting help companies recruit and retain employees?

companies can use telecommunicating to recruit and retain employees who wish to facilitate work-life balance, or employees from locations that are not within daily travel distance to the facility

Worker retraining programs for employees who lose their jobs to robots ________. a. are a "Band-Aid" solution most of the time b. will be needed only for a small minority of the workers who lose their jobs c. are offered and funded by the employers only if a sufficient number of workers are displaced d. are an obligation taken on by ethical companies

d. are an obligation taken on by ethical companies

Some employers allow workers a compressed work week as long as ________. a. the work can be put off until the next week b. the workplace is a store c. it is a week in which a holiday falls on Monday d. the employee can completely finish the work in a shorter time

d. the employee can completely finish the work in a shorter time

A job setting in which an employee gym and a snack bar featuring healthy foods and beverages were perks would benefit which of these groups? a. the owners/managers b. the customers or clients of the firm c. the employees d. all the above

d. the owners/managers; the customers or clients of the firm; and the employees

A patient becomes violent on hospital premises after being turned down for the clinical trial of a new drug therapy. This scenario best fits which of the following workplace violence categories? a. traditional criminal intent b. violence by one worker against another c. violence stemming from a personal relationship d. violence by a customer

d. violence by a customer - violence by a customer occurs when the violent person has a legitimate relationship with the business, perhaps as a customer or patient

What kind of information can employees post online under the protection of federal statute?

employees can post information online about wages, hours, and working conditions, and that speech is protected by federal statute

Hiring a worker as an independent contractor saves an employer about 30 percent of the cost of an employee in benefits. Identify 1 or 2 of these benefits.

independent contractors are not covered by workers' compensation or unemployment insurance or health insurance coverage

What can a company do to try to reduce sexual harassment?

managers can model ethical behavior by example, and the company can offer training and communicate and strictly enforce a written policy

Robots have usually been operated by a human at the controls but now are becoming more independent. How?

the development of AI allows robots to act on their own much more often, meaning humans do not always control them

What should the employees usually try first before going public with an accusation that their company may be breaking the law?

the employee should usually try internal reporting channels first, to disclose the problem to management before going public

Why would a company want to monitor Internet use at work?

there are at least 2 reasons a company might want to monitor Internet use at work - productivity - electronic security - managers do not want employees wasting time or exposing the company to breaches of data security, identity theft, or the legal ramifications of inappropriate or offensive behavior