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Exam 2: Being Ethical and Socially Responsible

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Question 1

Multiple Choice

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A program to implement social responsibility in business begins with

A) total commitment of top management.
B) careful planning.
C) appointment of a director.
D) a board of directors meeting.
E) conducting a social audit.

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

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A

Question 2

True/False

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Customers are so used to misleading advertising that it does not infuriate them anymore.

A) True
B) False

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Question 3

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

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

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.

Those who "blow whistles" sometimes lose their jobs.

MasterCard sends a customer a memo that discloses the true cost of borrowing with each billing statement. It does this because it realizes that the customer has the right to

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 alon -Refer to XYZ Coffee. Nancy is a(n) ____ within her community.

What are a few examples of companies acting socially responsible?

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

Primary emphasis in the economic model of social responsibility is on

Which of the following examples least represents the definition of social responsibility?

Early government regulations prior to 1920 that affected American business include all of the following except the

"We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. This manager's comments reveal what concept?

When DVD players were first introduced, the price was very high, thereby preventing the average consumer from purchasing one. Today, however, as a result of increased competition in the market, most consumers can afford one because they are significantly cheaper. By reducing the price of these products and ensuring a large number of product offerings, competition has promoted consumers' right to

In the 1970s, the Pinto, a subcompact car manufactured by Ford, was known to catch on fire when rear-ended, even at inner-city speeds. This stripped consumers of their right to

Define consumerism. How have the rights of consumers changed since 1930?

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

​Starbucks investigates coffee bean growing regions and before it contracts to buy the beans from local growers, sets up clinics to inoculate residents from diseases in the area, provides sources of clean water for the villages, and otherwise works to improve the standard of living for the residents. This is an example of the company acting on its perception of its

A government agency with the power to investigate complaints of discrimination and to sue firms practicing employment discrimination is known as the