Chapter 2 Questions
In the early 1900s, consumer rights were almost nonexistent. The phrase caveat emptor meant
let the buyer beware
The ________ means that consumers should be provided with enough education and product information to enable them to be responsible buyers.
right to be informed
The ________ means that consumers should be assured that the goods and services they purchase are not injurious with normal use.
right to be safe
President Gerald Ford added _______ meaning that all consumers are entitled to be informed about their rights as consumers.
right to consumer education
Cultural norms are considered ________ factors that affect ethics.
social
The definition of business ethics is _______.
the application of moral standards to business situations
Passing laws and regulations is one way _________ can encourage ethical behavior.
the government
During the planning stage of developing a social responsibility program, ______.
the key areas of concern in the executives' policy statement are addressed in a proposal for the program
Bank of America provides all its employees a written guide to acceptable and ethical behavior as defined by the organization, outlining uniform policies, standards, and punishments for violations. This written guide is known as which of the following?
A code of ethics
Suppose that Marta, a Facebook employee, works during her "off hours" for a start-up company that is developing a social networking site designed to compete with Facebook. Marta is faced with which of the following ethical dilemmas?
A conflict of interest
The _______ provided stringent automotive, aircraft, and factory emission standards.
Clean Air Amendment (1970)
Which section of the social audit report will you choose to research? Sustainability Community involvement Quality and safety of products Human resources
Community involvement
If a purchasing manager does business with a company in which they are an investor, it would be considered what type of ethical issue?
Conflict of interest
Personal knowledge, values, and goals are considered ______________ factors that affect ethics.
individual
Salesforce.com is a Fortune 500 company and one of the largest enterprise software companies in the United States. As one of its goals, Salesforce.com strives to use 100 percent renewable energy, and it tracks its progress annually, releasing its findings in a stakeholder impact report on its website. This is an example of which of the following?
A social audit
Which of the following is not true? A top manager is responsible for recommending specific policies for the organization. A social audit is conducted only as needed. A social responsibility plan requires the commitment of top executives. Outside consultants may help with the planning stage of a social responsibility program.
A social audit is conducted only as needed.
The Coca-Cola Company, a Fortune 500 company, actively seeks to increase the number of employees from underrepresented groups at all levels within its organization. This means that Coca-Cola supports which of the following?
Affirmative action
As part of her undergraduate education, Isabel would like to study the application of moral standards to business situations. Which academic discipline should she pursue to best fulfill this academic objective?
Business ethics
Rishaan just researched the Bernard Madoff scandal, and he is appalled by what he has learned. Bernard Madoff was a fraudster and financier who ran the largest Ponzi scheme in history, defrauding his clients of approximately $50 billion in investments. Rishaan's research and his reaction relate most closely to which of the following academic disciplines?
Business ethics
Immediately after their business ethics class on Tuesday morning, Beatriz and Yang began to debate the relative merits of the economic and the socioeconomic views of social responsibility. Beatriz supports the economic model of social responsibility, while Yang supports the socioeconomic model. Which of the following is an argument in support of Beatriz's position?
Business managers are responsible primarily to stockholders, so management must be concerned with providing a return on owners' investments.
The ______ is in charge of making sure that companies comply with laws designed to protect the environment.
Environmental Protection Agency (EPA)
What is the distinction between ethics and business ethics?
Ethics is the study of right and wrong and the morality of the choices individuals make, while business ethics is the application of moral standards to business situations.
Which of the following is correct regarding advertising? It is not a recognized type of business communications. Advertisers of health-related products are not subject to Federal Trade Commission guidelines on the use of descriptive product labels. False and misleading advertising is both illegal and unethical. Sponsors of advertisements aimed at children are held to a lower legal and ethical standard compared to sponsors of advertisements aimed at adults.
False and misleading advertising is both illegal and unethical.
In July 2020, Apple Inc. (headquartered in Cupertino, California) announced its plan to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030. The company's "climate roadmap" includes steps to increase the use of low carbon and recycled materials in its products, expand its energy efficiency, move its entire supply chain to renewable energy sources, improve its processes and materials, and actively work to remove carbon from the atmosphere. This is an example of which of the following?
Green marketing
Mikkel is a 45-year-old male with a tenth-grade education. He has been unemployed on numerous occasions and for extended periods of time during his adult life. Mikkel's mother has encouraged him to take classes at the local community college to learn a marketable trade skill, but to no avail. Mikkel is classified as which of the following?
Hard-core unemployed
Suppose that Vincente, founder of his own investment firm, orchestrates a Ponzi scheme designed to defraud investors. Vincente's actions are most indicative of which of the following factors affecting ethics?
Individual
What is the legislative impact of the Sarbanes-Oxley Act of 2002?
It provides sweeping legal protection for those who report corporate misconduct.
Patrick, a receptionist in a dental office, has been put in sole charge of his employer's financial records. Shortly after this occurred, Patrick embezzled $15,000 from the practice, and manipulated the financial records to hide the fact that he had stolen the money. Patrick's actions are most indicative of which of the following factors affecting ethics?
Opportunity
Copying someone else's work without acknowledging the source is considered which type of ethical issue?
Organizational relationships
In writing his final paper for Business Ethics class, Nikolaj copied significant parts of the paper from other sources without acknowledging those sources. Once his professor discovered this, he failed Nikolaj for the course. Which of the following violations did Nikolaj commit?
Plagiarism
A trade association would most likely do which of the following to encourage ethical behavior?
Provide guidelines for companies
Dick's Sporting Goods, the biggest sporting goods retailer in the United States, earned significant publicity several years ago when it decided to stop selling guns to customers younger than 21 and removed assault rifles and high-capacity ammunition magazines from all of its stores. This decision is most consistent with which of the following public responsibilities of business?
Public health
Which of the following is not true about sexual harassment?
Sexual harassment is not very prevalent in workplaces today.
The _________ prevented monopolies or mergers where competition was endangered.
Sherman Antitrust Act (1890)
For months, Miguel, a waiter, has watched his coworker and fellow server, Oliver, steal money from the restaurant cash register. On numerous occasions, Oliver has encouraged Miguel to do the same, contending that such action is justified because the restaurant does not pay them adequately. Eventually, Miguel does take money from the register, and he is immediately caught by his employer. Miguel's action is most indicative of which of the following factors affecting ethics?
Social
_______ is the recognition that business activities have an impact on society and the consideration of that impact in business decision making.
Social responsibility
Jun is a single parent of two children, Bohai and Jian. She has applied for numerous home mortgages, but she has been denied credit every time, even though Jun has a full-time job as a surgical technician making $55,000 per year. Based on several comments made by bank representatives during the mortgage application process, Jun believes that she has been discriminated against because she is unmarried. Which of the following may provide a legal remedy for Jun if she can establish that she was in fact discriminated against because she is single?
The Equal Credit Opportunity Act (1974)
Tiana, a manufacturing employee for a company headquartered and doing business in the United States, believes that the company is denying her promotional opportunities due to her race. If Tiana decides to pursue a workplace discrimination claim, with which of the following federal administrative agencies should she file her claim?
The Equal Employment Opportunity Commission
Adebola is preparing a research paper for her Introduction to Business class regarding early government regulations that affected American business. Which of the following was the first federal act to regulate business practices?
The Interstate Commerce Act
Which of the following laws established the Environmental Protection Agency (EPA) to enforce federal laws that involve the environment?
The National Environmental Policy Act (1970)
Aisha owns and operates a food truck in San Antonio, Texas. Aisha believes that there is too much government regulation of business (she is particularly concerned about all the health regulations governing food sales). She believes that both her business and her customers would benefit most if the government simply left her alone to make and sell the food that her customers want. Which model of social responsibility does Aisha's views represent?
The economic model of social responsibility
Which of the following is not true about the hard-core unemployed? They have been unemployed for a short period of time. Companies can train and teach them skills for employment. They may have experienced barriers to employment. They have little education or vocational training.
They have been unemployed for a short period of time.
Which of the following is correct regarding trade associations' role in encouraging ethics? Trade associations rarely provide ethical guidelines for their members. Trade associations are in a poor position to exert pressure on members to stop engaging in questionable business practices that may harm all firms in the industry. Trade associations must ensure that their ethical codes do not contain provisions that run afoul of antitrust laws. The authority to implement ethical guidelines for members is the same among trade associations.
Trade associations must ensure that their ethical codes do not contain provisions that run afoul of antitrust laws.
Teresa Ross brought a lawsuit against Group Health Cooperative under the False Claims Act. Ross, who worked as Director of Risk Adjustment Services for the healthcare firm, believed that Group Health Cooperative was defrauding Medicare by inflating or altering patients' diagnoses to receive higher payments. The company eventually settled the case with the United States Department of Justice for $6.3 million, and Ross was awarded approximately $1.5 million for engaging in which of the following?
Whistle-blowing
Maricel has a horrible boss named Dimitri. Dimitri verbally humiliates and intimidates Maricel daily, telling her on the shop floor and in front of her coworkers that she is a terrible employee, and that he will fire her soon if she does not improve her performance. Dimitri's actions have made Maricel anxious and deeply depressed, and her productivity has only decreased as a result. Dimitri's statements to Maricel likely constitute which of the following?
Workplace bullying
Supporters of the socioeconomic model of social responsibility argue that _______.
businesses can create a more stable environment for long-term profitability if they help resolve social issues
A(n) _______can help employees understand what their company considers acceptable behavior.
code of ethics
North American Dental Group recently hired Keith Carrington as its chief compliance and privacy officer. One thing that Carrington may be responsible for is creating a _____, which would outline policies for acceptable and ethical behavior.
code of ethics
The last step of creating a social responsibility program is ______.
conducting a social audit
Generally, the situation occurring at North American Dental Group offices is an ethical issue related to _____.
fairness and honesty
The process of creating, making, delivering, and promoting products that are environmentally safe is known as _______.
green marketing
Affirmative action programs ______.
try to make sure that members of underrepresented groups are represented in the organization in the same proportion as the surrounding community
Complete Dental Care in eastern Ohio is one of the dental offices that is part of North American Dental Group. Dr. John Kramer runs a competing dental practice. He saw several of Complete Dental Care's former patients. One patient had gotten two root canals and was told she needed more despite what Dr. Kramer saw on X-rays. When he saw another patient that was told he needed 18 root canals, Dr. Kramer became concerned with Complete Dental Care's practices. He filed a federal False Claims Act lawsuit against Complete Dental Care and North American Dental Group. Dr. John Kramer is engaging in ______.
whistle-blowing