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Exam 2: A: Being Ethical and Socially Responsible

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Question 81

Multiple Choice

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____ is all activities undertaken to protect the rights of consumers.

A) Consumerism
B) Bill of rights
C) Lobbying
D) Caveat emptor
E) Protectionism

F) C) and D)
G) A) and C)

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Question 82

Multiple Choice

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Excellent Air Inc. (EAI) Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in the industry. The company prides itself on good customer service and being concerned with the broader societal good. EAI management is concerned not only with doing things right, but also with doing the right things. Many of its decisions reflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management. As a result, the company made sure its employees knew the firm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to be upheld within the company. Since the code of conduct has been put in place, there have been much fewer ethical violations. Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success. -Refer to Excellent Air Inc. To fix the ethical issue problems, EAI management should have implemented all of the following guidelines for making ethical decisions except which one?

A) Listen and learn.
B) Identify the ethical issue.
C) Create and analyze options.
D) Create an industry benchmark.
E) Explain your decision and resolve any differences that arise.

F) D) and E)
G) A) and C)

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Question 83

Multiple Choice

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XYZ Coffee Nancy is a highly respected person within her community. She is Hispanic in a largely Caucasian-populated area. Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position. After the interview, Nancy felt confident that she would be hired because of her qualifications. However, she did not get a call back. Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend. The company had hired an inexperienced Caucasian male with a history of unemployment. At this point, Nancy was quite aggravated, but she left the issue alone. She ended up asking an associate for an espresso machine. The employee informed Nancy where the machine was located and retrieved it for her. Nancy asked if there were any other espresso machines of higher quality. When the associate said no, Nancy purchased the item and left. After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her. Nancy asked where they had purchased it, and they responded, “XYZ Coffee.” -Refer to XYZ Coffee. If Nancy were Caucasian and the company employees were mostly Hispanic, the way she was treated would be referred to as

What are the three major consumerism forces today?

Which president stated that consumers have the right to safety, to be informed, to choose, and to be heard?

Steve had a problem with a coffee maker he purchased recently. He has been trying for days to speak with the company by calling its toll-free number, but it rings forever or sends him through a long menu with no opportunity to speak to an individual or to leave a message. Steve feels his basic consumer right to ____ has been violated.

By ensuring that products are safe and reliable, the Food and Drug Administration and the Consumer Product Safety Commission are taking part in a movement known as

The statement "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health" supports the consumers' rights to

Why are fairness and honesty in business important ethical concerns? Give examples.

The governments of the United States and Canada have recently signed an agreement to cooperate in eliminating acid rain. Their efforts are primarily an attempt to reduce

The ____ factor affecting ethical behavior includes one's moral values and central attitudes.

Kenneth's great-great-grandfather worked in the steel industry in the early 1900s. Which most likely describes the amount of time Kenneth's great-great-grandfather worked per week?

The company you work for recently has committed itself to implementing a program of social responsibility. After the company has gotten the commitment of top executives, planned the program, and appointed a program director, you suggest that a(n) ____ be prepared periodically to evaluate the success of the program.

Which of the following statements reflects the socioeconomic model of social responsibility?

Susan Scholz was fired from her sales clerk's job at the Walgreens store in North Mall after refusing to work on Sundays. The Christian Reformed Church, of which she was a member, prohibited working on Sunday. Therefore, she did not go to work on those days even though she was scheduled to do so. Susan filed a lawsuit against the company because she felt her rights had been violated. Which right(s) was/were violated?

Which type of pollution has seen the least improvement since environmental issues became important?

What are the two views of social responsibility? Explain.

Which of the following is the most important legislation in improving the condition of U.S. waters?

Dinesh lives in Phoenix where he hears almost daily reports about the high levels of ozone along with suggestions on when individuals should purchase gasoline. As he views the hazy condition in the sky, he decides the government is basically ignoring environmental problems. Which statement best describes the government's involvement?

The economic model of social responsibility was developed in a period when the primary concern of firms was