Business Essentials Ch. 2 Quiz

When evaluating a decision based on the ethical norm based on individual rights, a manager is MOST likely to consider which of the following questions?

Does the decision respect all the individuals involved?

What is the extent to which an organization conforms to local, state, federal, and international laws known as?

Legal compliance

Which of the following best supports an organization's stance in terms of social responsibility and ethical leadership?

Organizational leadership practices

What is the name of the concept that expanded the role of business in protecting and enhancing the general welfare of society?

Accountability

Which type of pollution is created by carbon monoxide produced by manufacturing plants?

Air

Ron has an employee who he thinks is acting in a manner that is not in the best interest for the organization. Ron has gathered facts from a variety of vendors, suppliers, and co-workers. Which of the following is Ron's next step in assessing the ethical behavior of his employee?

Analyze the facts and determine the most appropriate moral values.

Which category of ethics relates to matters such as hiring, firing, working conditions, privacy and respect?

Behavior toward employees

How do top managers BEST demonstrate a commitment to ethical business practices?

By adopting and enforcing written codes of ethics

Which of the following is the ethical norm that measures how consistent an act is in terms of people's responsibility to each other?

Caring

What is the main cause of water pollution?

Chemical and waste dumping

ABCo works hard to maintain a positive working relationship with employees, suppliers, and vendors. They have developed clear positions on how the firm and the employees will conduct business. Which of the following should ABCo use to encourage and guide ethical behavior in the workplace?

Code of conduct

Which of the following should be the first step in assessing ethical behavior in a certain situation?

Collect facts related to the situation.

Each quarter, Mabel determines which local event the company will volunteer with and support financially. They typically donate cash, and allow workers to take the day off work to volunteer at the event. Which of the following stakeholders does Mabel's organization seek to establish a strong relationship with?

Communities

When an activity benefits an individual but not the employer, which ethical dilemma has been created?

Conflict of interest

What must every corporation do in maintaining and reporting its financial status?

Conform to generally accepted accounting principles

Social activism dedicated to protecting the rights of consumers is the result of what?

Consumerism

When businesses work to honor warranties, charge fair prices and stand behind the quality of their products, what stakeholder group are they supporting?

Customers

Which of the following is likely the single MOST effective step that a company can take to set ethical standards?

Demonstrate support from top management.

Which element of the stakeholder model of responsibility considers the need to treat workers fairly and make them a part of the team?

Employees

Sally's boss is out of town and she is considering taking an extended lunch to get some shopping done. Although no one will know she is gone, she knows this is not the right things to do, and that her boss has placed trust in her work ethic. Which of the following confirms Sally's belief about what is right and good, and the social norms expected of her?

Ethical behavior

What is the extent to which members of an organization follow basic ethical and legal standards of behavior?

Ethical compliance

What are the individual beliefs about what is right and wrong or good and bad referred to as?

Ethics

Which of the following regulates advertising and pricing practices to protect consumers?

Federal Trade Commission

When a firm modifies a production process to limit the consumption of valuable resources, and promotes the product produced as environmentally friendly, which business practice are they engaging in?

Green marketing

Why do ethics vary from person to person, from situation to situation, and from culture to culture?

Ideas of right and wrong are based on beliefs and social context

n business, ethical decisions are generally based on what?

Individual ethics

Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?

Insider trading

What stakeholder group is being protected when managers follow proper procedures and strive to be accurate and candid in assessing future growth?

Investors

Which of the following ethical norms ensures an action is consistent with what's fair?

Justice

What types of organizations are used to solicit money that then is distributed to political candidates?

Political action committees

When a firm significantly increases the price of a good or service because of an increase in demand, what unethical practice are they potentially engaging in?

Price gouging

Pour House Coffee uses cups and napkins make from recycled materials. Which element of green marketing does Pour House Coffee support by using these products?

Production process

In what way can the government use indirect regulation to affect social responsibility?

Providing tax incentives

When the government dictates what organizations can and cannot do, what tactic is the government using?

Regulation

Which of the following is a way to tell how an organization is doing in meeting its social responsibility goals?

Social audit

Where do direct regulations imposed by the government evolve from?

Social beliefs

In addition to an individual's values and morals, which of the following will determine whether a behavior is regarded as ethical or unethical?

Social context

What concept is supported by those who believe that corporations should help improve the lives of citizens?

Social responsibility

Which term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?

Social responsibility

In order to behave responsibility to stakeholders, Willa's Wholesale often shares delivery schedules, adjusts profit margins, and works to ensure reasonable delivery schedules from those companies who provide Willa's Wholesale with raw material. Which of the following is Willa's Wholesale working with in terms of stakeholder responsibility?

Suppliers

Which element of green marketing support the process of using renewable resources and managing limited resources responsibly and efficiently?

Sustainability

When a multinational organization supports its commitment to stakeholders, which stakeholders are they most concerned with?

The stakeholders in every country where business is done

Which of the following is created by the chemical or radioactive by-products of the manufacturing process?

Toxic waste

Which ethical norm considers whether a particular act optimizes the benefits to those who are affected by it?

Utility

What is the term for an employee who discovers an illegal or unethical activity and tries to put an end to it by speaking up?

Whistle-blower

Which of the following is an informal dimension for managing social responsibility?

Whistle-blowing

Woojin is a new employee and wants to ensure he is supporting the organization's core principles and values in all he does. Where can he learn more about the values and principles that are especially important to his organization?

Written codes and policies

Within the organization, the use of formal committees, training, and codes of conduct help to ensure standards of

ethical compliance

When a business hires a staff to formally represent the organization before a political body, in efforts to influence that political body, the business is

lobbying

Firms typically confront concerns about responsibility towards the environment, customers, employees, and investors, which is referred to as

social responsibility