Question 1

At a recent town hall meeting, citizens expressed concern regarding the impact of a proposed new gambling casino. The owner of the proposed casino responded, "I don't know what all of this fuss is about. I'm just a businessman trying to earn a profit, provide new jobs, and pay taxes." His response reflects an overall commitment to corporate social responsibility.

Accepted Answer

A) True 
 B)False

Question 2

In order to maintain a good reputation, it is good strategy to manage your business ethically.

Accepted Answer

A) True 
 B)False

Question 3

Establishing a formal code of ethics is:

Accepted Answer

A)   more common with small businesses than large businesses.
B)   unnecessary given the level of government regulation.
C)   growing in popularity.
D)   mandated by the Corporate and Criminal Fraud Accountability Act.E) A) and C)
F) B) and D)

Question 4

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code.

Accepted Answer

A) True 
 B)False

Question 5

Going green means:

Accepted Answer

A)   increased global warming.
B)   increasing one's bottom line, before any other social considerations.
C)   increasing one's carbon footprint
D)   increasing one's initiatives toward a concern for the environment.E) None of the above
F) B) and C)

Question 6

Although the green movement is a social trend, it is difficult to predict its future contributions to society.

Accepted Answer

A) True 
 B)False

Question 7

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is:

Accepted Answer

A)   a job.
B)   a commitment to programs that promote green living.
C)   a high-end product line.
D)   flexible work hours.E) A) and B)
F) B) and D)

Question 8

Which of the following would most likely involve ethical concerns?

Accepted Answer

A)   Overstating an expense report.
B)   Forecasting sales for the next year.
C)   Developing the marketing plan for the next year.
D)   Improving working conditions.E) A) and B)
F) A) and C)

Question 9

The International Organization for Standardization (ISO) plans to publish a standard on social responsibility called ISO 26000.

Accepted Answer

A) True 
 B)False

Question 10

Given the level of diversity within the United States, agreement on common standards of ethical behavior is unachievable.

Accepted Answer

A) True 
 B)False

Question 11

After developing a code of ethics, it should be communicated to:

Accepted Answer

A)   everyone with whom the business has dealings.
B)   the Attorney General in jurisdictions where the business has operations.
C)   all levels of management.
D)   stockholders.E) A) and B)
F) A) and D)

Question 12

A recent study revealed that most Americans have:

Accepted Answer

A)   strong moral values.
B)   a strong desire to do what is right.
C)   few moral absolutes.
D)   a great desire to help their community.E) A) and D)
F) B) and C)

Question 13

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

Accepted Answer

A) True 
 B)False

Question 14

"Do what I say, not what I do" can be an effective code of conduct to instill corporate values.

Accepted Answer

A) True 
 B)False

Question 15

Defining a socially responsible company is complicated. Businesses differ from other businesses, as well as the people they serve, on what we mean by "socially responsible."

Accepted Answer

A) True 
 B)False

Question 16

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

Accepted Answer

A) True 
 B)False

Question 17

When managers disregard ethical concerns, the likely result is:

Accepted Answer

A)   a reduction in employee turnover.
B)   an improvement in overall manager morale.
C)   a reduction in lawsuits.
D)   a general mistrust between workers and management.E) All of the above
F) A) and B)

Question 18

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm. Enron and WorldCom participated in inappropriate accounting methods. According to the Making Ethical Decisions box:

Accepted Answer

A)   The notion that the financial system is complicated and difficult to understand often perpetuates these crimes.
B)   Madoff was convicted for his crime because he was a "lone ranger" in white-collar crime, whereas Enron and WorldCom were part of the "too big to fail" corporations. The government was compelled to protect them due to the fact that too many people would lose their jobs.
C)   Ponzi schemes are not illegal. This was a case of "buyer beware." The investor must take the majority of the responsibility for not performing due diligence prior to investing with Madoff.
D)   Enron's and WorldCom's executives were acquitted of crime because they were using generally accepted accounting principles, and no whistleblowers came forward to attest to any wrongdoing.E) None of the above
F) A) and B)

Question 19

Ethical problems and issues of social responsibility are:

Accepted Answer

A)   unique to firms involved in global trade.
B)   unique to the United States.
C)   not unique to the United States.
D)   less important now than in the past.E) A) and B)
F) All of the above

Question 20

Many businesses have developed internal procedures to enforce their ethical policies. Which of the following is an example of an outside group urging ethical behavior in businesses?

Accepted Answer

A)   management teams
B)   union officials
C)   suppliers
D)   foreign trade representativesE) A) and C)
F) None of the above

Exam 4: Demanding Ethical and Socially Responsible Behavior

Establishing a formal code of ethics is:

Correct Answer
verified

The International Organization for Standardization (ISO) plans to publish a standard on social responsibility called ISO 26000.

Correct Answer
verified

Although the green movement is a social trend, it is difficult to predict its future contributions to society.

Correct Answer
verified

After developing a code of ethics, it should be communicated to:

Correct Answer
verified

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

Correct Answer
verified

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm. Enron and WorldCom participated in inappropriate accounting methods. According to the Making Ethical Decisions box:

Correct Answer
verified

When managers disregard ethical concerns, the likely result is:

Correct Answer
verified

Defining a socially responsible company is complicated. Businesses differ from other businesses, as well as the people they serve, on what we mean by "socially responsible."

Correct Answer
verified

Going green means:

Correct Answer
verified

Ethical problems and issues of social responsibility are:

Correct Answer
verified

In order to maintain a good reputation, it is good strategy to manage your business ethically.

Correct Answer
verified

Correct Answer
verified

Which of the following would most likely involve ethical concerns?

Correct Answer
verified

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code.

Correct Answer
verified

A recent study revealed that most Americans have:

Correct Answer
verified

Many businesses have developed internal procedures to enforce their ethical policies. Which of the following is an example of an outside group urging ethical behavior in businesses?

Correct Answer
verified

Given the level of diversity within the United States, agreement on common standards of ethical behavior is unachievable.

Correct Answer
verified

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is:

Correct Answer
verified

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

Correct Answer
verified

"Do what I say, not what I do" can be an effective code of conduct to instill corporate values.

Correct Answer
verified

Exam 4: Demanding Ethical and Socially Responsible Behavior

Establishing a formal code of ethics is:

Correct AnswerverifiedShow Answer

The International Organization for Standardization (ISO) plans to publish a standard on social responsibility called ISO 26000.

Correct AnswerverifiedShow Answer

Although the green movement is a social trend, it is difficult to predict its future contributions to society.

Correct AnswerverifiedShow Answer

After developing a code of ethics, it should be communicated to:

Correct AnswerverifiedShow Answer

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

Correct AnswerverifiedShow Answer

Bernie Madoff's Ponzi scheme swindled about $65 million from customers who invested with his firm. Enron and WorldCom participated in inappropriate accounting methods. According to the Making Ethical Decisions box:

Correct AnswerverifiedShow Answer

When managers disregard ethical concerns, the likely result is:

Correct AnswerverifiedShow Answer

Defining a socially responsible company is complicated. Businesses differ from other businesses, as well as the people they serve, on what we mean by "socially responsible."

Correct AnswerverifiedShow Answer

Going green means:

Correct AnswerverifiedShow Answer

Ethical problems and issues of social responsibility are:

Correct AnswerverifiedShow Answer

In order to maintain a good reputation, it is good strategy to manage your business ethically.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would most likely involve ethical concerns?

Correct AnswerverifiedShow Answer

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code.

Correct AnswerverifiedShow Answer

A recent study revealed that most Americans have:

Correct AnswerverifiedShow Answer

Many businesses have developed internal procedures to enforce their ethical policies. Which of the following is an example of an outside group urging ethical behavior in businesses?

Correct AnswerverifiedShow Answer

Given the level of diversity within the United States, agreement on common standards of ethical behavior is unachievable.

Correct AnswerverifiedShow Answer

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is:

Correct AnswerverifiedShow Answer

"Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.

Correct AnswerverifiedShow Answer

"Do what I say, not what I do" can be an effective code of conduct to instill corporate values.

Correct AnswerverifiedShow Answer

Correct Answer
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