FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Demanding Ethical and Socially Responsible Behavior

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

True/False

Review LaterAdd Note

Review Later

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.

A) True
B) False

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

One responsibility of business is to satisfy customers by offering them goods and services with real value.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

True/False

Review LaterAdd Note

The Enron scandal illustrates the difference between unethical behavior and illegal behavior.

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

As the number of multinational corporations continues to grow, we are experiencing a greater number of international ethical dilemmas. One very real concern has been the human rights abuses in sweatshops in exchange for cheap labor. Several retailers have now banded together to set ethical standards in foreign factories. Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?

Ethical problems and issues of social responsibility are

In reality, ethical behavior depends on the situation. For example, in negotiating a contract with your employees, the way they win higher wages is by your losing the fight to hold down labor costs. You realize it is a win-lose relationship.

When Kira graduated with a degree in computer science, she started her software company. On her first day of operations, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated

Effective corporate values start with employees and develop throughout the organization to include top management.

The position a firm takes on issues that affect the corporation as well as society is known as its

Mini-Case Megan, Erin, and Ryan are in the middle of a heated discussion. The trio are the chief operating officers of the Frozen Fun Ice Cream Corporation and are reviewing the latest financial reports. Intense competition has resulted in deceased profits. Each of the three officers has his or her own view of how to help the company turn around. Megan suggests cutting costs by firing union workers and hiring replacement employees at lower wages. She has asked the firm's attorney to find a loophole in the contract that will allow for this action. Erin protests, stating that Megan's proposal is unethical and unfair. Erin believes that every stakeholder should be treated equally, and that profiting at the expense of others is reckless. Ryan, agreeing in part with Erin, states, "We must be sensitive to all affected parties, but clearly our primary goal is to make a profit for our investors." In an attempt to resolve the conflict between Megan and Erin, Ryan offers an alternative suggestion: reduce the firm's charitable contributions until acceptable profit levels rise. Erin is outraged and reminds Ryan of the social responsibilities that Frozen Fun Ice Cream has to the community, environment, suppliers, employees, and investors. -If management adopts Ryan's suggestion of reducing Frozen Fun Ice Cream's charitable donations until profits grow, the company will essentially reduce its

To be effective, an organization's code of ethics should be kept in-house and not communicated to outsiders such as suppliers, subcontractors, and customers.

Integrity-based ethics codes are based on avoiding legal punishment.

Although college graduates would prefer to work for socially responsible companies,

Mini-Case Megan, Erin, and Ryan are in the middle of a heated discussion. The trio are the chief operating officers of the Frozen Fun Ice Cream Corporation and are reviewing the latest financial reports. Intense competition has resulted in deceased profits. Each of the three officers has his or her own view of how to help the company turn around. Megan suggests cutting costs by firing union workers and hiring replacement employees at lower wages. She has asked the firm's attorney to find a loophole in the contract that will allow for this action. Erin protests, stating that Megan's proposal is unethical and unfair. Erin believes that every stakeholder should be treated equally, and that profiting at the expense of others is reckless. Ryan, agreeing in part with Erin, states, "We must be sensitive to all affected parties, but clearly our primary goal is to make a profit for our investors." In an attempt to resolve the conflict between Megan and Erin, Ryan offers an alternative suggestion: reduce the firm's charitable contributions until acceptable profit levels rise. Erin is outraged and reminds Ryan of the social responsibilities that Frozen Fun Ice Cream has to the community, environment, suppliers, employees, and investors. -Ryan's view tends to lean toward the concerns of investors, first and foremost. This is the view taken by

Mini-Case Megan, Erin, and Ryan are in the middle of a heated discussion. The trio are the chief operating officers of the Frozen Fun Ice Cream Corporation and are reviewing the latest financial reports. Intense competition has resulted in deceased profits. Each of the three officers has his or her own view of how to help the company turn around. Megan suggests cutting costs by firing union workers and hiring replacement employees at lower wages. She has asked the firm's attorney to find a loophole in the contract that will allow for this action. Erin protests, stating that Megan's proposal is unethical and unfair. Erin believes that every stakeholder should be treated equally, and that profiting at the expense of others is reckless. Ryan, agreeing in part with Erin, states, "We must be sensitive to all affected parties, but clearly our primary goal is to make a profit for our investors." In an attempt to resolve the conflict between Megan and Erin, Ryan offers an alternative suggestion: reduce the firm's charitable contributions until acceptable profit levels rise. Erin is outraged and reminds Ryan of the social responsibilities that Frozen Fun Ice Cream has to the community, environment, suppliers, employees, and investors. -Megan is concerned about the legality of her idea of firing union workers in order to hire employees willing to work for less pay. Megan values ________ ethics, but has little concern for other types.

Ethical behavior refers to the standards that are accepted by society as true or false.

Many U.S. companies are demanding socially responsible behavior from their international suppliers.

A charitable donation contributed by a corporation is an example of corporate philanthropy.

Making accounting records more transparent may help restore trust in the free-market system and leaders in general.