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Chap 2 - Business Ethics & Social Responsibility

Total questions: 15

Worksheet time: 5mins

Name
Class
Date
1.

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

a)

Seek the advice of managers.

b)

Make a judgment based on the outcome of the activity.

c)

Collect facts related to the situation.

d)

Gather a range of opinions on the effectiveness of the policy.

2.

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

a)

Suggest that employees take ethics training.

b)

Post ethical rules on bulletin boards.

c)

State that the workplace values diversity.

d)

Demonstrate support from top management.

3.

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

a)

By adopting and enforcing written codes of ethics

b)

By decentralized decision-making practices

c)

By cooperating with other companies

d)

By monitoring employees' web searches

4.

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

a)

Lack of social responsibility

b)

Conflict of interest

c)

Violation of the code of conduct

d)

Conflict of morals

5.

Standards that help to shape behaviors towards employees, the organization, and other economic agents are

a)

social responsibilities.

b)

values.

c)

managerial ethics.

d)

morals.

6.

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

a)

Social responsibility

b)

Business ethics

c)

Socialization

d)

Corporatization

7.

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

a)

Identity theft

b)

A guarantee

c)

Insider trading

d)

Collusion

8.

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

a)

Prevent insider trading

b)

Guarantee the accuracy of financial reporting

c)

Engage in strategic management

d)

Oversee the implementation of ethical standards

9.

When working to protect the environment, what type of pollution is created by carbon monoxide and other chemicals produced by manufacturing plants?

a)

Noise

b)

Land

c)

Water

d)

Air

10.

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

a)

Consumerism

b)

Recycling

c)

Green marketing

d)

Collusion

11.

What stance do firms who do as little as possible to solve social or environmental problems take?

a)

Obstructionist

b)

Social accommodation

c)

Defensive

d)

Accommodative

12.

If a manager believes their job is to generate profits and is willing to do everything legally required, but no more, what social responsibility stance is being taken?

a)

Proactive

b)

Accommodative

c)

Obstructionist

d)

Defensive

13.

Firms that meet, and occasionally exceed legal and ethical requirements take what type of social responsibility stance?

a)

Accommodative

b)

Proactive

c)

Defensive

d)

Obstructionist

14.

How does the government affect the idea of social responsibility in a planned economy?

a)

The government heavily regulates business activities to ensure the business supports social ideals.

b)

The government passes laws to make sure business interests do not damage society.

c)

The government attempts to offset small business restrictions.

d)

The government requires higher stakeholder returns.

15.

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

a)

Enacting laws

b)

Imposing fines to violators

c)

Cooperating with foreign governments

d)

Providing tax incentives