Intro to Business Ch. 2

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

Which of the following approaches to social responsibility reflects the lowest degree of socially responsible​ practices?

Obstructionist stance

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

Which of the following BEST describes a conflict of​ interest?

When an activity may benefit an individual to the detriment or his or her employer

_______ 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

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

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 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 groups or individuals would NOT be considered an organizational​ stakeholder?

Competitors

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 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.

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?

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

Organized efforts by​ individuals, groups, and the government to help protect consumers from unfair business practices are referred to as​ _______.

consumerism

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

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

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

Direct influence to shape social responsibility practices by the government is most often accomplished through​ _______.

regulation

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