business ethics test review

Which of the following statements is true of an ethics code?

A written code is worthless if it does not reflect living principles.

Which of the following statements is true of ethics?

Actions that are completely legal can still be unethical.

In the context of social responsibility, which of the following is a way of contributing to nonprofits?

Cause-related marketing

In the context of a socially responsible organization, which of the following statements is true of consumerism?

It is a movement that suggests that customer rights should be the starting point of any business.

One core responsibility of business is to deliver consumer value by providing quality products at fair prices. _____ are critical components of this equation.

Loyalty and integrity

Which of the following statements is true of green marketing?

The vast majority of people are not willing to sacrifice convenience to buy green products.

Which of the following is a difference between corporate philanthropy and corporate responsibility?

Unlike corporate philanthropy, corporate responsibility focuses on the actions of the business itself rather than donations.

Trotin Langdon Corp., a leading car dealer, operates in many countries. The company has a clearly written mandate for all its contractors abroad. According to this, all contractors must ensure that standardized safety measures are implemented in their factories and workers are made to work only for nine hours a day. In this scenario, Trotin Langdon Corp. has set _____ for its vendors.

a code of conduct

In the context of business ethics, _____ refers to a decision that involves a conflict of values.

an ethical dilemma

In the context of the core values identified by the Character Counts organization, being honest, not deceiving, cheating, or stealing, and doing what you say you'll do represent the universal ethical standard of _____.

c. trustworthiness

One of the ways by which companies can show their responsibility toward the environment is by reducing their

carbon footprint

In the context of codes of ethics, the Johnson & Johnson Credo has guided the company profitably through a number of crises. This is considered the best-known code because it:

carefully refrains from overpromising financial rewards.

In the context of universal ethical standards, being open-minded and not taking advantage of others exemplifies the core value of

caring

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____.

citizenship

Finwes is an advertising company. Because of certain untoward incidents in the company, the management decides to create a formal written document that would guide the employees in making right decisions in various professional situations. In this scenario, the management wants to create a _____.

code of ethics

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

codes of conduct

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to:

collaborate with other medical clinics to guarantee low prices in low-income counties.

Crumbie, a cereal company, not only provides nutritional information on the packaging box of its product but also goes a step ahead by providing a pamphlet that gives a detailed description of the production process. Given this information, it can be deduced that Crumbie is an advocate of _____.

consumerism

Krempe Foods, a fast-food chain in Dallas, gives paramount importance to consumer feedback and has a well- established consumer feedback system. Given this information, it can be said that Krempe Foods supports

consumerism

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____.

corporate philanthropy

Homebound, a home decor company, annually donates blankets to various nonprofit organizations. These nonprofit organizations distribute the blankets among the poor. Given this information, Homebound's gesture is an example of:

corporate philanthropy.

The employees of a multinational company follow a standardized and formal set of written guidelines that help them make right decisions in various situations. These guidelines have been translated into 20 languages and are followed by employees across all branches of the company. One of the guidelines is to include all supervisors in discussions regarding instances of violation of rules. In this scenario, the multinational company has:

created a code of ethics for its members.

In the context of creating and maintaining an ethical organization, Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, declares that to establish an ethical culture, _____.

ethical words must be backed up with documented practices, processes, and procedures, all understood around the globe

Socially responsible firms support consumer choice by:

following laws that prevent anticompetitive behavior such as collusion.

The purpose of a written code of ethics is to:

give employees the information they need to make ethical decisions across a range of situations.

The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____.

illegal and unethical

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

illegal and unethical.

In the context of the legal and ethical dimensions of business conduct, providing rock-bottom prices only to distributors in underserved areas is _____.

illegal but ethical

In the context of the legal and ethical dimensions of business conduct, it is legal and ethical to:

lead by example.

A chocolate manufacturing company promoted a high-calorie product without providing complete information about the risks involved in its consumption. In the context of business behavior, the company's business conduct was:

legal but unethical

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

legal but unethical

Gander, an apparel company, is known to be a profit-hungry company. It lands in a controversy when it comes to light that the company pays almost nonliving wages to the workers in its manufacturing subsidiaries based in developing countries. In the context of business behavior, Gander's business conduct is:

legal but unethical.

Vandium, a high-end smartphone, is known for its excellent audio quality and processing speed. However, most of its users complain of certain technical issues after a period of five months. The company, however, is well aware of these issues because it deliberately designs these products to fail after a certain period—a strategy to generate revenue through service charges. In the context of business behavior, Vandium's business conduct is:

legal but unethical.

_____ has more influence than any other variable on the ethical conduct of individual employees.

organizational culture

_____ has more influence than any other variable on the ethical conduct of individual employees. a. socioeconomic background

organizational culture

In the context of the stakeholder approach to business, the federal government is a key stakeholder in:

pharmaceutical companies.

Spacein, a hard drive manufacturer, is accused of deliberately creating flaws in its product design. News reports hint that the company has been doing this for years to reduce the time between consumer repurchases. In the context of social responsibility, Spacein has been accused of _____.

planned obsolescence

Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent business trip because I need the money, and my company has not given me a raise in the past year." In this scenario, Janet is an employee who views ethics as _____.

relative

Universal ethical standards can solve the problem of too many people viewing ethics as _____.

relative

Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____.

respect

Ethics refer to:

sets of beliefs about right and wrong.

After being stagnant for a few years, a clothing company started making profits consistently. Following this, the CEO of the company decided to contribute to the growth of the community by starting an apprenticeship program in tailoring. The program involved providing training to a batch of 10 uneducated, underprivileged people free of cost every year. In this scenario, the company's gesture exemplifies _____.

social responsibility

The obligation of a business to contribute to society is referred to as _____.

social responsibility

FreshBean is an online grocery delivery service. Its employees and customers, the farmers from whom the company obtains its products, and the people who live in the community where the company operates are FreshBean's _____.

stakeholders

The trade union members of a wool manufacturing company are the company's _____.

stakeholders

The trade union members of a wool manufacturing company are the company's _____. a. stakeholders

stakeholders

This includes employees and investors who have a personal interest in the performance and actions of an organization.

stakeholders

A cement company decided to modify its production methods to minimize the negative impact of the company's activities on the environment. The company also invested in the purchase of upgraded machinery to implement this plan. In the given scenario, the cement company most likely embraced the idea of _____.

sustainable development

David is the chief executive officer of Grand Rocks Mining Company. He has convinced the company's board of directors to implement a change in the mining procedure. According to the new procedure suggested by David, less resources will be exhausted. This will ensure that the ability of future generations to meet their needs is not harmed because of shortage of natural resources. By agreeing to David's suggestion, Grand Rocks has embraced the idea of _____.

sustainable development

To bring a code of ethics to life, experts advocate a forceful, integrated approach to ethics. According to this, _____.

when people violate ethical norms, companies must respond publicly to retain employee trust