Chapter 6:
Which of the following is the best description of a code of ethics?
A formal statement of an organization's primary values and the ethical rules it expects its employees to follow.
A company makes eco-friendly dog toys, mats, and beds; uses recycled paper and soy-based ink in its packaging; and encourages customers to return used products for recycling. According to the "four shades of green" approach to addressing the environment, which approach is the company using?
Activist
An organization that wants to comply with ________ requirements must develop a total management system for meeting environmental challenges.
ISO 14000
Brite Plating doesn't dump contaminated water from its electroplating process into the storm sewers because it is legally required to refrain from doing this. According to the "four shades of green" approach to addressing the environment, which approach is the firm using?
Legal
Tyrone has a plaque on the wall of his office that reads, "I am the master of my destiny." Which of the following does this plaque best illustrate?
Locus of control
To meet the growing demands of its customers, a local fast food restaurant changes its packaging so that it uses less non-biodegradable materials. According to the "four shades of green" approach to addressing the environment, which approach is the restaurant using?
Market
What is a linear economy?
One in which products are produced, consumed, and subsequently discarded
In which level of moral development do individuals define moral values apart from the authority of the groups to which they belong or society in general?
Principled
According to Jim Fitterling, Dow CEO, what do investors expect?
Profits and environmental sustainability
Which of the following is LEAST likely to be a valid reason for a company to be socially responsible?
Pursuing social goals dilutes the business's primary purpose of economic productivity.
Dow's approach to social responsibility is best described by which view?
Socioeconomic
An employee comes to work on time every day only because he knows that his pay will be docked if he is caught coming in late. However, when he knows his boss will be gone that day, he's frequently late. What stage of moral development does this represent?
Stage 1
You choose not to get drunk at a party because you know your friends will think less of you and that would make you feel badly about yourself. What stage of moral development does this represent?
Stage 3
Which approach best describes Dow's efforts to promote environmental sustainability?
Stakeholder approach
According to research, which of the following is the single most important influence on an employee's decision to act ethically or unethically?
The behavior of managers
Which of the following statements best describes moral development at the pre-conventional stage?
The individual views right vs. wrong in terms of the consequences of the action.
You know that it is going to take a lot to persuade upper management to accept your position and the idea of becoming more socially responsible. You have heard talk of scrapping both and plowing more profits back into updating production facilities. What would be the best argument for what you are trying to do at Tri-State?
You selected arguing that social responsibility aids long-term profitability. This was the best choice. There are many reasons why social responsibility is a great path for organizations, and in this situation, this is the most appropriate argument.
Now that the code of ethics has been revised, how do you intend to measure how well employees are conforming to the code of ethics?
You selected performance reviews. This was the best choice. By making the ethics code part of the performance review process, you are demonstrating that ethics matter, and each employee is accountable for honoring the code.
In the industry and the community, Tri-State is known for its low-cost business strategy, but also as a company that is generous to its employees. After 100 years of successful operation, it now finds itself with a respected brand and a market share leader. Tri-State also prides itself on helping with school lunch programs in disadvantaged school districts. In the past, it has helped organizations like the Salvation Army and Red Cross when natural disasters occur across the United States, but this is on an as-needed basis. How would you classify Tri-State's social actions?
You selected social responsiveness. This was the best choice. Currently, it doesn't appear that Tri-State has reached the highest level of social action, but it is farther along than the classical approach. Social responsiveness fits between those two levels of social action.
Jane, a Tri-State employee, speaks to you privately and says: "I'm concerned about the fact that the barns aren't being kept clean and that the animals aren't being checked for disease and infection. I'm not sure what the rules are about this, but I thought you should know because I think it's a problem."
You selected that Jane's concerns should be taken seriously and investigated. This was the best choice. This choice promotes an ethical culture. Furthermore, Tri-State now has the opportunity to alleviate the issue and better protect customers and employees.
Tri-State has come off a very good year financially and has plans to do more for the community. You discuss with the CEO your plan to do the most good at the lowest cost. The CEO asks, "Why don't we just make a financial donation to a worthy cause?" What is the best response?
You selected that Tri-State could simply donate money, but there are additional ways that Tri-State could achieve the same positive impact at a lower cost. This was the best choice. This was the best argument in favor of social responsibility activities. While donations can do good, a company in Tri-State's position can likely find other ways to have a greater impact at lower costs.
Tri-State is selling a high-fat, high-sugar yogurt snack called Lactose Defiant. Which of the following, if true, would argue that selling the product violates Tri-State's code of ethics?
You selected that Tri-State is responsible for foreseeable misuses of its products. This was the best choice. Misuse of this product - overeating - is clear and easy to predict.
In Tri-State's region, "organic" is defined as lacking preservatives, pesticides, or other chemicals, and being non-destructive to the environment. What would be the best approach to becoming organic?
You selected that Tri-State products could be made entirely with organic ingredients. This was the best choice. It helps Tri-State products meet the definition of "organic."
While you are waiting on the top management team to present your recommendations to the board of directors, you take a look at updating Tri-State's current code of ethics. In summary, it states that customers and employees should be treated with respect, that all business should be carried out in accordance with all applicable laws, and that any violation of Tri-State's ethical guidelines is cause for disciplinary action.
You selected that it covers no ethical responsibilities beyond conforming to law and supporting employees. This was the best choice. A code of ethics should cover responsibility to the public.
After some great discussions with the CEO and Vice Presidents, you now feel that you have a majority of the top management team on board. Although resources are limited, you feel that the most pressing need is to become more sustainable. This is an important issue not just in the milk industry, but worldwide. Success here could lead to important impacts down the road. For now, management wants your recommendation: Which project is most likely to lead Tri-State into becoming more sustainable, but also provide a significant return to Tri-State?
You selected to begin a line of organic products. This could make Tri-State's products healthier and have a big impact on the environment. This was the best choice. By offering an organic line, the company could become more sustainable and capitalize on a new product line.
How will you determine Tri-State's ethical responsibilities?
You selected to determine Tri-State's core values, and specify goals based on those core values. This was the best choice. A code of ethics should be based on core values.
Most research focusing on social responsibility and a firm's economic performance shows ________ relationship exists.
a small positive
Dow CEO Jim Fitterling mentions a(n) _____ in support of companies' efforts to remove plastic waste from the oceans.
alliance
The ________ view of social responsibility holds that a firm's first and only obligation is to maximize profits for its shareholders.
classical
Two personality variables have been found to influence an individual's actions according to his or her beliefs about what is right or wrong: locus of control and ________.
ego strength
Jeff Mendelsohn is the founder of New Leaf Paper, a company that works closely with paper mills to use recycled waste paper and environmentally friendly bleach to create high-quality stock that is used to print magazines. This is an example of social ________.
entrepreneurship
Cisco created an interactive program that presents employees with different scenarios about sales practices, procurement issues, and other common dilemmas. Similar to America's Got Talent, the scenarios are evaluated by "judges" and employees are asked to vote, making judgment calls on each situation. Each episode ends with the Cisco compliance officer providing the answer and an explanation. This is an example of ________.
ethics training
Barnes Plating pays employees minimum wage and offers only those employee benefits that it is legally mandated to provide. This is an example of social ________.
obligation
HD Consulting is very involved in the local community. The firm sponsors a fundraiser to help the local humane shelter, and top managers donate a considerable amount of time as corporate mentors, helping new entrepreneurs get started so they can provide jobs in the community. As a result, HD has low employee turnover, loyal customers, and increasing revenue. This is an example of how social ________ can benefit a company in the long run.
responsibility
Social ________ is defined as a business's intention, beyond its legal and economic obligations, to do the "right thing" and act in ways that are good for society.
responsibility
In response to the growing popularity of social media among at-risk youth, a software gaming company uses a variety of social media outlets to discourage gang and youth violence. This is an example of social ________.
responsiveness
Johnson Brothers Manufacturing believes that, although making a profit is important, it also has an obligation to its customers, employees, suppliers, and society as a whole. This demonstrates the ________ view of social responsibility.
socioeconomic
Basic convictions about what is right and what is wrong are referred to as ________.
values
Heather discovered that her boss was falsifying reports to the EPA about the release of harmful chemicals into the community's water supply. She confronted her boss, who told her to mind her own business. She then contacted the EPA and reported what she had learned. Heather would be described as a(n) ________.
whistleblower
One of the best ways to encourage ethical and honest behavior in an organization is to conduct ________.
pre-employment integrity tests