Chapter 2 Business Quiz
Which of the following statements about social responsibility is true?
The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.
_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.
social investing
The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.
code of ethics
To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules.
false
One of the keys to ethical business behavior is:
how the company's top management conducts themselves
Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:
legality and responsibility
Codes of ethics:
may be influential in determining a person's decision-making behavior
_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.
Corporate philanthropy
Which of the following statements about ethics training is true?
All of the above- Ethics training is formal training to develop an awareness of questionable business behavior and to practice appropriate responses.Ethical training does not have to be boring.The most effective ethics training begin with the techniques for solving ethical dilemmas.Fewer than half of all American companies have some type of ethics training programs.
Amgen, the largest biotechnology company in the world, donates millions of dollars annually to raise the value of science literacy in the community and attract bright young minds into the field of science. Since Amgen, as an employer would benefit from this philanthropy, it would be characterized as strategic giving. Correct!
True
is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong. Correct!
Utilitarianism
Which of the following statements about utilitarianism is true?
Utilitarianism is designed to create both winners and losers.
Social responsibility should extend beyond the shareholders to include:
all of the above, community, suppliers, employees, and consumers
In the 21st century, we define justice as:
an equitable distribution of the burdens and rewards that society has to offer
It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler. If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?
economic
At the base of the corporate social responsibility pyramid is:
economic responsibilities
A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:
empowered its employees to help customers
_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.
empowerment
Corporate philanthropy excludes any noncash donations.
false
Ethical decision making begins in the marketing department.
false
If the company wants employees to take ethical training seriously, the training should not include games.
false
The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible.
false
Social investing:
is the practice of limiting investments to companies that have ethical policies that match those of the investor
Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating?
legal
U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.S. Steel is practicing:
social responsibility
Wal-Mart ran a series of ads in trade journals with the following headline: "We're Looking for Quality Products That Are Guaranteed Not to Last." What Wal-Mart was in fact doing was asking its suppliers to develop more environmentally friendly products and to use material that could be recycled. This concern about the environment is one way that Wal-Mart practices:
social responsibility
_____ is the concern of businesses for the welfare of society as a whole.
social responsibility
_____ are all the individuals or groups to whom a business has a responsibility.
stakeholders
Which of the following is an example of a trend in ethics and social responsibility?
strategic giving
It is a firm's responsibility to its customers to deliver what it has promised.
true
Social responsibility is a voluntary obligation.
true
The most basic responsibility of all businesses is its economic responsibility.
true
Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:
voluntary and broad
