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 81

True/False

Review LaterAdd Note

Review Later

Enforcement is perhaps the most important step in an effective code of ethics.

A) True
B) False

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

When WorldCom used intentional accounting irregularities to make the company look more profitable than it actually was,it:

A) Provided its stockholders profit through a tax-loophole.
B) Acted in an acceptable business manner.
C) Engaged in illegal behavior.
D) Executed its responsibility to its owners.

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

An ethic of justice is based on a sense of responsibility to reduce actual harm or suffering.

Applying the ethical standards of the U.S.to foreign firms is a difficult process for U.S.firms. Requiring international suppliers to adhere to American ethical standards is not as clear-cut as you might think.Is it always ethical for American companies to demand compliance with our moral standards? What about countries where child labor is an accepted part of their society?

A list of "watchdogs" (including customers,socially conscious investors,and environmentalists)monitor how well firms enforce their ethical and social responsibility policies.

Opponents of CSR (Corporate Social Responsibility)argue that firms who use their profits to promote social causes are not being fair to investors who provided the funds for the purpose of financial gain. Critics,including the late Milton Friedman believe that a firm is first and foremost responsible to its owners (investors)who provided the funds for growth and financial gain.Some go so far as to say that the act is essentially "stealing from investors."

Out-Tel,a computer chip manufacturer,knowingly sold defective chips and failed to notify customers of the potential problems.When the problem became public knowledge,the firm's stock price fell dramatically.This illustrates the value that investors place on the ethical behavior of businesses. The perception of unethical business practices will cause profit seeking,socially conscious investors to react to ethically unfavorable circumstances.

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

The majority of CEOs believe that employee misconduct results from the failure of organizational leadership to establish ethical standards.

With respect to Arthur Anderson,a large and well-known public accounting and consulting firm,the Legal Briefcase box,"Paying the Price" explains:

The Green Movement:

While speaking with his sales force,the director of sales explains,"Anyone caught violating a sales law will be fired." After studying business ethics,you recognize this remark as a reference to the firm's __________ ethics.

As a show of corporate responsibility to your customers,your firm may elect to provide more information regarding your product than the law demands.

Ethical behavior at work is learned by:

Overly ambitious business goals and employee incentives can lead to unethical behavior.

All else held equal,socially responsible firms:

America's business ethics can improve simply by requiring written contracts with employees,customers,and owners.This alone will do the job! Six steps can help improve America's business ethics: (1)top management must adopt and unconditionally support an explicit corporate code of conduct; (2)employees must understand that expectations for ethical behavior begin at the top and that senior management expects all employees to act accordingly; (3)managers and others must be trained to consider the ethical implications of all business decisions; (4)an ethics office must be set up; (5)outsiders must be told about the ethics program; (6)the ethics code must be enforced.Written contracts alone will not improve America's business ethics.

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

The green movement has resulted in a positive impact on U.S.jobs.

Considering the potential impact on others prior to making a decision is consistent with ________ behavior.