Chapter 2—Being Ethical and Socially Responsible essay



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ANS: A PTS: 1 DIF: Moderate REF: p. 35

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
40. Tony Shinn is applying for a mortgage to purchase his first home. His credit rating is mediocre due to several late payments on his credit cards and car loan. He is upset because his friend Jerry was offered an interest rate 3 percent less than what Tony was offered by the same mortgage company. This mortgage company's actions were

a.

unethical¾both Tony and Jerry should have been charged the same interest rates, regardless of their credit histories.

b.

ethical¾this is just a part of doing business because credit history is an important indicator of future payments.

c.

illegal¾subjective factors may not be used when determining which credit offers may be extended to certain customers.

d.

unethical if Tony is a minority and Jerry is not.

e.

unethical and illegal¾customers must all be treated the same.

ANS: B PTS: 1 DIF: Moderate REF: p. 35

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
41. Metabo-Miracle offers a guaranteed weight loss of 10 pounds in one week without dieting or exercise. Thousands of customers purchase the products and about 200 call in with complaints that the product was ineffective. What action should Metabo-Miracle take?

a.

It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.

b.

It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.

c.

It should explain to the customers that they misused the product and try to sell them more of the product.

d.

It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.

e.

It should ignore the customers' complaints and hope they will tire of calling and writing letters.

ANS: D PTS: 1 DIF: Difficult REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
42. Ranee is a businessperson who works for a successful and admired Fortune 500 company. How often is Ranee likely to encounter ethical issues in the workplace?

a.

once or twice during her career

b.

about two to three times per year

c.

approximately once a month

d.

almost every week

e.

on a daily basis

ANS: E PTS: 1 DIF: Difficult REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
43. You are the executive vice president for Cooper Tire, the sixth largest U.S. tire maker. You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo. Your situation could create

a.

a code of ethics.

b.

the usual decision-making problems of cost versus benefit to Cooper Tire.

c.

a wonderful, ethical opportunity to make a lot of money.

d.

an ethical opportunity to move the distribution center to your hometown.

e.

a conflict of interest.

ANS: E PTS: 1 DIF: Moderate REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
44. Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning _____.

a.

fairness and honesty

b.

organizational relationships

c.

conflict of interest

d.

communications

e.

freedom of choice

ANS: B PTS: 1 DIF: Moderate REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
45. Publisher's Clearing House has a policy that no employees or their family members are eligible to win the big sweepstakes. This policy was likely implemented to

a.

shrink the pool of possible winners, which increases each individual's odds of winning.

b.

prevent employees from accepting gifts or bribes from other employees.

c.

encourage more magazine sales.

d.

avoid an apparent conflict of interest.

e.

satisfy the families of Publisher's Clearing House employees.

ANS: D PTS: 1 DIF: Difficult REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
46. A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporations from which it might purchase component parts. The company is trying to prevent

a.

their employees from having other jobs.

b.

a conflict of interest.

c.

trade secrets from being revealed.

d.

losing its executives to other organizations.

e.

fairness and honesty.

ANS: B PTS: 1 DIF: Difficult REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
47. Mattel, the maker of Barbie dolls, frequently shows television ads aimed at children on Saturday mornings, when many children are known to watch cartoons. Some of these ads mix cartoon-type animation and "real" shots of the dolls so that it is sometimes difficult for even an adult to determine what the doll can or cannot do. This most likely represents

a.

a conflict of interest.

b.

an ethical problem because children may be deceived about what Barbie can do.

c.

an ethical concern for many creditors of Mattel.

d.

illegal payoffs, if parents are getting more than they actually know they are paying for.

e.

that Mattel employees need better working conditions and higher pay.

ANS: B PTS: 1 DIF: Difficult REF: p. 37

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
48. Which of the following holds true in the case of bribes?

a.

They are unethical.

b.

They are ethical only under certain circumstances.

c.

They are uncommon in many foreign countries.

d.

They are economic returns.

e.

They are ethical.

ANS: A PTS: 1 DIF: Easy REF: p. 37

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
49. When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer. This is an example of _____.

a.

an unethical organizational relationship

b.

a conflict of interest

c.

social responsibility

d.

unethical communications

e.

ethical persuasion

ANS: D PTS: 1 DIF: Difficult REF: p. 37

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
50. You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Chicago Bears if you help him out. This tactic is _____.

a.

a corporate discount

b.

a common business practice

c.

a bribe

d.

personal selling

e.

ethical

ANS: C PTS: 1 DIF: Moderate REF: p. 37

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
51. For health-related companies such as Weight Watchers, one of the most frequent ethical issues related to communications that they face is

a.

deception.

b.

providing too much information.

c.

seeking FDA approval.

d.

experiments on animals.

e.

safe packaging.

ANS: A PTS: 1 DIF: Moderate REF: p. 37

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
52. Which specific area of business communications presents ethical questions by sometimes containing false and misleading messages for adults and especially children?

a.

press releases

b.

newspaper articles

c.

Consumer Reports' rankings

d.

advertising

e.

audited financial reports

ANS: D PTS: 1 DIF: Moderate REF: p. 37

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
53. What are the three sets of factors that influence the standards of behavior in an organization?

a.

organizational norms, circumstances, morals

b.

peer pressure, attitudes, social factors

c.

historical factors, management attitudes, opportunity

d.

opportunity, individual factors, social factors

e.

financial factors, opportunity, morals

ANS: D PTS: 1 DIF: Moderate REF: p. 37

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


54. The ____ factor affecting ethical behavior includes individual knowledge of an issue, personal values, and personal goals.

a.

individual

b.

social

c.

opportunity

d.

moral

e.

ethical

ANS: A PTS: 1 DIF: Easy REF: p. 38

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


55. At Ledbetter Industries, employees are allowed one-hour lunches, but most stroll back fifteen minutes late every day. The factor affecting the ethical behavior of Ledbetter's employees is _____.

a.

individual

b.

social

c.

opportunity

d.

code of ethics

e.

whistle-blowing

ANS: B PTS: 1 DIF: Moderate REF: p. 38

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


56. Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most. The factor affecting the ethical behavior of Publix's employees is _____.

a.

individual

b.

social

c.

opportunity

d.

demographic

e.

internal code

ANS: B PTS: 1 DIF: Difficult REF: p. 38

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


57. At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control?

a.

individual

b.

social

c.

moral

d.

circumstantial

e.

opportunity

ANS: E PTS: 1 DIF: Moderate REF: p. 38

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


58. Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed's ethical behavior?

a.

individual

b.

social

c.

moral

d.

circumstantial

e.

opportunity

ANS: E PTS: 1 DIF: Difficult REF: p. 38

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


59. All of the following are factors that affect the level of ethical behavior in an organization except ______.

a.

individual factors

b.

social factors

c.

opportunity

d.

demographic factors

e.

moral values

ANS: D PTS: 1 DIF: Easy REF: p. 38-39

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


60. If a company deals with violations of its ethical codes ____, the opportunity to be unethical will be reduced.

a.

leisurely and lightly

b.

firmly and consistently

c.

on a case-by-case basis

d.

quietly and erratically

e.

frequently and severely

ANS: B PTS: 1 DIF: Moderate REF: p. 39

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


61. What is probably the most effective way for a company to encourage ethical behavior?

a.

hire employees who are ethical and in agreement with the company's views

b.

have ethics training sessions for interested employees

c.

threaten employees with immediate termination for unethical behavior

d.

post signs discouraging sexual harassment and discrimination

e.

develop and enforce a written code of ethics for the organization


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