Chapter 2—Being Ethical and Socially Responsible essay



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174. Ethics is the study of right and wrong and of the morality of the choices we make.

ANS: T PTS: 1 DIF: Easy REF: p. 35

OBJ: 2-1 NAT: AACSB: Ethics TOP: Business Ethics Defined
175. An ethical decision or action is one that is right according to some standard of behavior.

ANS: T PTS: 1 DIF: Easy REF: p. 35

OBJ: 2-1 NAT: AACSB: Ethics TOP: Business Ethics Defined
176. The field of business ethics applies moral standards to business situations.

ANS: T PTS: 1 DIF: Easy REF: p. 35

OBJ: 2-1 NAT: AACSB: Ethics TOP: Business Ethics Defined
177. Ethical issues often arise out of business's relationships with investors, customers, employees, creditors, or competitors.

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

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
178. Businesspeople face ethical issues every day, and some of these issues can be difficult to assess.

ANS: T PTS: 1 DIF: Easy REF: p. 35

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
179. Fairness and honesty in business are two important ethical concerns.

ANS: T PTS: 1 DIF: Easy REF: p. 35

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
180. Relationships with customers and coworkers rarely create ethical problems.

ANS: F PTS: 1 DIF: Easy REF: p. 36

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
181. False and misleading advertising is illegal and unethical.

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

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
182. All bribes are unethical.

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

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
183. Customers are so used to misleading advertising that it no longer infuriates them.

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

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
184. Sponsors of advertisements aimed at children must be especially careful to avoid misleading messages.

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

OBJ: 2-2 NAT: AACSB: Ethics TOP: Ethical Issues
185. An individual's moral values and central, value-related attitudes clearly influence one's business behavior.

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

OBJ: 2-3 NAT: AACSB: Ethics

TOP: Factors Affecting Ethical Behavior


186. Most authorities agree that business ethics should be improved.

ANS: T PTS: 1 DIF: Easy REF: p. 39

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


187. Employees have an easier time determining what is acceptable behavior if their company provides them with a code of ethics.

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

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


188. A code of ethics is a written guide to acceptable and ethical behavior as defined by an organization.

ANS: T PTS: 1 DIF: Easy REF: p. 39

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


189. The Sarbanes-Oxley Act of 2002 deals with corporate responsibility, conflicts of interest, and corporate accountability.

ANS: T PTS: 1 DIF: Easy REF: p. 39

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


190. The Sarbanes-Oxley Act of 2002 gives those who report corporate misconduct sweeping new legal protection.

ANS: T PTS: 1 DIF: Easy REF: p. 39

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


191. It is easy for an organization to develop ethics codes, policies, and procedures to deal with all relationships and every situation.

ANS: F PTS: 1 DIF: Easy REF: p. 39

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


192. During the 1980s, very few organizations created and implemented ethics codes.

ANS: F PTS: 1 DIF: Easy REF: p. 40

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


193. A corporate code of ethics officer informs the press about unethical practices within the organization.

ANS: F PTS: 1 DIF: Difficult REF: p. 40

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


194. Whistle-blowing is informing the press or government officials about unethical practices within one's organization.

ANS: T PTS: 1 DIF: Easy REF: p. 40

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


195. Those who "blow whistles" sometimes lose their jobs.

ANS: T PTS: 1 DIF: Easy REF: p. 40-41

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


196. A businessperson can take some comfort when faced with an ethical dilemma by talking openly about it with management because ethical decisions will always withstand scrutiny.

ANS: T PTS: 1 DIF: Difficult REF: p. 42

OBJ: 2-4 NAT: AACSB: Analytic

TOP: Encouraging Ethical Behavior


197. Social responsibility does not cost money.

ANS: F PTS: 1 DIF: Easy REF: p. 42

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


198. Customers can't find out which firms are acting responsibly and which are not.

ANS: F PTS: 1 DIF: Moderate REF: p. 42

OBJ: 2-4 NAT: AACSB: Ethics

TOP: Encouraging Ethical Behavior


199. Businesses' record of social responsibility today is much better than in past decades.

ANS: T PTS: 1 DIF: Easy REF: p. 47

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


200. During the first quarter of the twentieth century, working conditions were deplorable by today's standards.

ANS: T PTS: 1 DIF: Easy REF: p. 47

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


201. When translated, caveat emptor means "let the buyer beware."

ANS: T PTS: 1 DIF: Easy REF: p. 47

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


202. President Franklin D. Roosevelt's program for restoring the economy and improving social conditions became the foundation for increased government involvement in business.

ANS: T PTS: 1 DIF: Moderate REF: p. 48

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


203. Awareness of businesses' social responsibilities has increased along with government involvement.

ANS: T PTS: 1 DIF: Easy REF: p. 48

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


204. Within a firm, social responsibility begins with management's attitude.

ANS: T PTS: 1 DIF: Easy REF: p. 48

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


205. The economic model of social responsibility emphasizes profits.

ANS: T PTS: 1 DIF: Easy REF: p. 48-49

OBJ: 2-6 NAT: AACSB: Analytic

TOP: Two Views of Social Responsibility


206. The socioeconomic model of social responsibility emphasizes the effect of business decisions on society.

ANS: T PTS: 1 DIF: Easy REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


207. Increasing numbers of managers have adopted the socioeconomic model of social responsibility.

ANS: T PTS: 1 DIF: Moderate REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


208. There are many more socially responsible businesses today than there were ten years ago.

ANS: T PTS: 1 DIF: Easy REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


209. In support of their position, proponents of the socioeconomic model argue that businesses should be allowed to ignore social issues.

ANS: F PTS: 1 DIF: Moderate REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


210. Much consumer-oriented legislation has grown out of the statement of six rights, which became known as the consumer bill of rights.

ANS: T PTS: 1 DIF: Easy REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
211. President Franklin D. Roosevelt declared that consumers are entitled to safety, to be informed, to choose, and to be heard.

ANS: T PTS: 1 DIF: Moderate REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
212. Consumerism consists of all activities undertaken to protect the rights of consumers.

ANS: T PTS: 1 DIF: Easy REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
213. The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.

ANS: F PTS: 1 DIF: Moderate REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
214. Recently, consumers and the government have been losing an increasing number of product liability lawsuits against sellers of defective products.

ANS: F PTS: 1 DIF: Difficult REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
215. One major reason for improving product safety is the consumer's demand for safe products.

ANS: T PTS: 1 DIF: Easy REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
216. Manufacturers are not required by law to inform consumers about the potential dangers of using their products.

ANS: F PTS: 1 DIF: Moderate REF: p. 51

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
217. The right to consumer education entitles people to be fully informed about their rights as consumers.

ANS: T PTS: 1 DIF: Easy REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
218. The right to service entitles consumers to convenience, courtesy, and responsiveness from manufacturers and sellers of consumer products.

ANS: T PTS: 1 DIF: Moderate REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
219. Two additional rights added in the last decade are the right to consumer education and the right to courteous service.

ANS: T PTS: 1 DIF: Easy REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
220. The right to choose means that consumers must have a choice of products offered by different manufacturers and sellers.

ANS: T PTS: 1 DIF: Moderate REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
221. The lesser the competition, the greater the choice available to consumers.

ANS: F PTS: 1 DIF: Easy REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
222. Consumer advocates, such as Ralph Nader, take it upon themselves to protect the rights of consumers.

ANS: T PTS: 1 DIF: Easy REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
223. Increasingly, consumer education is becoming a part of high school and college curricula and adult-education programs.

ANS: T PTS: 1 DIF: Easy REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
224. Major advances in consumerism have come through federal legislation.

ANS: T PTS: 1 DIF: Easy REF: p. 52

OBJ: 2-7 NAT: AACSB: Ethics TOP: Consumerism
225. An affirmative action program is designed to ensure that minority employees are represented in about the same proportion as in the surrounding community.

ANS: T PTS: 1 DIF: Moderate REF: p. 54

OBJ: 2-8 NAT: AACSB: Ethics TOP: Employment Practices
226. Affirmative action plans encompass all areas of human resources management, including recruiting, hiring, training, promotion, and pay.

ANS: T PTS: 1 DIF: Moderate REF: p. 54

OBJ: 2-8 NAT: AACSB: Ethics TOP: Employment Practices
227. The hard-core unemployed are made up of mentally ill individuals and those with prior criminal convictions.

ANS: F PTS: 1 DIF: Moderate REF: p. 55

OBJ: 2-8 NAT: AACSB: Ethics TOP: Employment Practices
228. A successful program for training hard-core unemployed people is the National Alliance of Business.

ANS: T PTS: 1 DIF: Easy REF: p. 56

OBJ: 2-8 NAT: AACSB: Ethics TOP: Employment Practices
229. The EPA was created by the government to develop new and improved ways to clean and improve the environment.

ANS: F PTS: 1 DIF: Easy REF: p. 56

OBJ: 2-9 NAT: AACSB: Ethics

TOP: Concern for the Environment


230. Once they are made aware of the pollution problem, most firms respond rather than waiting to be cited by the EPA.

ANS: T PTS: 1 DIF: Moderate REF: p. 56

OBJ: 2-9 NAT: AACSB: Ethics

TOP: Concern for the Environment


231. Improved water quality is not only necessary, it is attainable at no cost.

ANS: F PTS: 1 DIF: Easy REF: p. 57

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


232. Fortunately, the acid-rain problem has been solved in recent years.

ANS: F PTS: 1 DIF: Moderate REF: p. 57

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


233. Of the three factors mentioned as contributors to air pollution, only the combination of weather and geography cannot be changed.

ANS: T PTS: 1 DIF: Moderate REF: p. 58

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


234. Air and water quality may be improving, but land pollution is still a serious problem in many areas.

ANS: T PTS: 1 DIF: Easy REF: p. 58

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


235. The fundamental issues concerning land pollution are how to restore already contaminated land and how to prevent further contamination.

ANS: T PTS: 1 DIF: Moderate REF: p. 58

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


236. The $1.6 billion Superfund created in 1980 is to be used to develop successful ways of storing land pollutants.

ANS: F PTS: 1 DIF: Easy REF: p. 59

OBJ: 2-9 NAT: AACSB: Ethics

TOP: Concern for the Environment


237. People exposed to loud noises for a long time can suffer permanent hearing loss.

ANS: T PTS: 1 DIF: Easy REF: p. 59

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


238. Negotiated settlements for cleaning up hazardous wastes became known as sweetheart deals because the EPA helped only those companies friendly to them.

ANS: F PTS: 1 DIF: Difficult REF: p. 59

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


239. Consumers will probably pay in large part for cleaning up our environment through increased taxes or increased product costs.

ANS: T PTS: 1 DIF: Moderate REF: p. 59

OBJ: 2-9 NAT: AACSB: Analytic

TOP: Concern for the Environment


240. A firm's social responsibility program will be ineffective if it has less than the total commitment of the company's top business officials.

ANS: T PTS: 1 DIF: Moderate REF: p. 59

OBJ: 2-10 NAT: AACSB: Ethics

TOP: Implementing a Program of Social Responsibility


241. An effective program for social responsibility takes time, money, and organization.

ANS: T PTS: 1 DIF: Easy REF: p. 59

OBJ: 2-10 NAT: AACSB: Ethics

TOP: Implementing a Program of Social Responsibility


242. The planning stage of a social responsibility program can involve outside consultants to help develop it.

ANS: T PTS: 1 DIF: Moderate REF: p. 60

OBJ: 2-10 NAT: AACSB: Ethics

TOP: Implementing a Program of Social Responsibility


243. The director of a company's social responsibility program should be a consumer advocate who can express the social issues facing the firm to the organization's management.

ANS: F PTS: 1 DIF: Moderate REF: p. 60

OBJ: 2-10 NAT: AACSB: Ethics

TOP: Implementing a Program of Social Responsibility


244. One way a social responsibility program can be funded is by passing on the cost to the consumer in the form of higher prices.

ANS: T PTS: 1 DIF: Moderate REF: p. 60

OBJ: 2-10 NAT: AACSB: Ethics

TOP: Implementing a Program of Social Responsibility


245. A social responsibility program may be funded by the federal government through tax reductions or other incentives.

ANS: T PTS: 1 DIF: Moderate REF: p. 60

OBJ: 2-10 NAT: AACSB: Ethics

TOP: Implementing a Program of Social Responsibility





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