Chapter 04 – Demanding Ethical and Socially Responsible Behavior
While “doing the right thing” is an admirable code of ethics, there are no international
organizations dealing with global ethics and corruption.
Feedback: Several international organizations have entered into agreements to identify
common global ethics and to fight corruption. The Organization of American States, the
European Union, and the Organization for Economic Cooperation and Development have
entered into anti-corruption agreements.
139. Due to the complicated laws and ethical standards abroad, U.S. businesses are
encouraged to adopt a, “don’t ask, don’t tell” policy.
Feedback: U.S. businesses are held to high ethical standards, whether they are dealing with
customers in the U.S. or internationally. Large and small companies are scrutinized by “watch
dog” groups. International bodies such as the Organization of American States, the European
Union, and the Organization for Economic Cooperation and Development have adopted
global ethical policies.
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140. A few years ago, several U.S. clothing manufacturers were sued in Los Angeles courts
by watchdog groups who learned of poor working conditions in manufacturing plants on a
U.S. territory known as the Marianas Islands. Customers are concerned with human rights
abuses and other problems with supplier relationships abroad.
Feedback: Companies who contract manufacturing abroad are subject to watchdog groups
and others who expect them to be socially responsible when partnering with low cost labor
manufacturers abroad. These organizations are watching; the companies are starting to make
ethical decisions about working conditions in third world countries before the government
interferes.
141. Olivia is ordering trendy necklaces and earrings made with semi-precious stones from
a supplier in Belize, for her city boutique. Due to low paying wages in Belize, the supplier
has promised an excellent wholesale price for these goods. You concur with Olivia when
she explains to you that international business law is very clear-cut with these dealings. As
long as the supplier is not breaking any labor laws in his country, Olivia’s social
responsibility is covered.
Feedback: The fairness of requiring international suppliers to adhere to U.S. ethical standards
is not as clear-cut as we would like it to be. U.S. businesses will be held to a higher standard
by their customers and watch-dogs. Particularly, the issue of low wages and child-labor laws
in foreign countries is of great concern to socially conscious investors and customers.
142.
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In the Reaching Beyond our Borders box titled, “Ethical Culture Clash”, the story
proves that a large multi-national company such as Motorola can ask its employees, and
should expect them to follow the same ethical standards they would practice if living and
working within the U.S. borders.
Feedback: The Motorola story demonstrates how one company’s belief that their employee
policies are reasonable may not span continents and across borders. The employee wanted the
same housing allowance as other employees who live and work in South America, but did not
want to spend the entire housing allowance on his living quarters, as stipulated by the
employer, Motorola.
143. In the Reaching Beyond our Borders box titled, “Ethical Culture Clash”, the story
demonstrates the many ethical similarities between North and South American business.
This is fortunate for Motorola and other large electronics firms who do business south of
the U.S. border. They can depend on their subsidiary firms to have no problems when
implementing U.S. company employee policies.
Feedback: The Motorola story demonstrates how one company’s belief that their employee
policies are reasonable may not span continents and across borders. The employee wanted the
same housing allowance as other employees who live and work in South America, but did not
want to spend the entire housing allowance on his living quarters, as stipulated by the
employer, Motorola.
144.
Chapter 04 – Demanding Ethical and Socially Responsible Behavior
The Motorola story told in the Reaching Beyond our Borders box demonstrates how a
corporation’s perception of ethical behavior may not be everyone’s reality.
Feedback: The Motorola story demonstrates how one company’s belief that their employee
policies are reasonable may not span continents and across borders. The employee wanted the
same housing allowance as other employees who live and work in South America, but did not
want to spend the entire housing allowance on his living quarters, as stipulated by the
employer, Motorola.
145. Obeying the law is ________ ethical behavior.
A. essentially the same as
B. the first step towards
C. the opposite of
D. unlikely to lead to
146. ________ refers to standards of moral behavior.
A. Legality
B. Responsibility
C. Integrity
D. Ethics
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158. The purpose of sobriety checkpoints that are set up by community and state police is
to deter drunk driving and ultimately save lives. While not mandated, the makers of
Blackberry™ have complied with the public request of several legislators and have
obediently removed apps that permit smartphone users to navigate around the
checkpoints. Google™ and Apple™ have elected not to honor such requests. Google
said the apps do not violate the company’s content policy. After studying about ethics and
social responsibility, which of the following statements applies to this situation?
A. Laws represent the minimum guidelines that companies must follow, whereas a firm’s
ethical stance may venture beyond the minimum level of compliance.
B. Google and Apple are showing corporate social responsibility because they
demonstrate concern for their investors, which is exactly where their focus should be.
C. Blackberry is acting philanthropically toward government.
D. Google and Apple are showing their distrust for big government, and their avoidance
of contributing toward philanthropic causes.
Feedback: Laws represent the minimum level of compliance required by citizens and
businesses. A society may falter if businesses consider only “what is legal” when making
company decisions. Behaving ethically requires more than just following the law.
159. 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.
Feedback: The first standard in business ethics is the legality of the activity. Engaging in
accounting irregularities is illegal.
160.
Chapter 04 – Demanding Ethical and Socially Responsible Behavior
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Cigarette producers refused to voluntarily place health warnings on their packages. In
response, the federal government passed laws requiring health warnings on all cigarette
packages. With respect to ethical behavior, this sequence of events is:
A. The intended approach.
B. The desired approach.
C. Not the desired approach.
D. Not really a concern.
Feedback: Ethical behavior by businesses is a reflection of a concern for the welfare of
society as a whole. Many different sources give the following statements of basic moral
values: integrity, respect for human life, self-control, honesty, courage, and self-sacrifice are
right; cheating, cowardice, and cruelty are wrong.
161. When Angela graduated with a degree in computer science and started her software
company, 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:
A. Her commitment to high ethical standards of behavior.
B. Her commitment to respect the law.
C. Her expectation that all employees follow the laws that apply to the business.
D. Her aversion to cheating, stealing, and dishonesty.
Feedback: Following the laws that apply to her business, and expecting employees to do the
same will protect the firm from paying the price of convictions for crimes that are clearly
against the law; however, operating within a legal framework is only the first step towards
behaving as an ethical company.
162.
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After a few years of being in business, employees who worked for a start-up software
company noticed that the owner overlooked certain questionable actions of high billing
associates, versus other employees who worked hard but only brought in an average
number of new clients each month. With respect to what you learned in this chapter about
the ethical behavior of many Americans, which of the following statements applies here?
A. This story indicates that moral absolutes are very prevalent today in business settings.
B. The owner will continue to operate this way until someone blows the whistle.
C. We cannot expect people in the U.S. to all follow similar ethical patterns because there
are too many cultures to deal with. Businesses are no different.
D. As is often the case today, some leaders will look at each situation individually when
making value judgments.
Feedback: Although not recommended, some leaders will evaluate each action situationally.
This has dramatically decreased moral absolutes.
163. Which of the following questions will help individuals and organizations when
deciding if their decisions are ethical?
A. Can I do this without getting caught?
B. Is it balanced?
C. Has it been done before?
D. Is there a desirable alternative?
164.
Chapter 04 – Demanding Ethical and Socially Responsible Behavior
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When discussing moral and ethical issues, it is helpful to remember that ethical behavior
begins with ___________________.
A. schools
B. religious institutions
C. law enforcement officers
D. each of us
165. The first step when facing an ethical dilemma is to ask:
A. “Is it legal?”
B. “Is it balanced?”
C. “How will it make me feel about myself?”
D. “Is it ethical?”
166. Which of the following questions can help us avoid a decision that would injure our
self-esteem?
A. Is it legal?
B. Is it balanced?
C. How will it make me feel about myself?
D. How can I avoid taking the blame?
167.
Chapter 04 – Demanding Ethical and Socially Responsible Behavior
Ethical dilemmas in business:
A. force us to make poor choices.
B. always end up bringing out the best in us.
C. often force us to choose between equally unsatisfactory alternatives.
D. define us as being moral absolutists or moral situationalists.
168. Ethical behavior will result in which of the following?
A. Mistrust between employees and managers.
B. Agreements that create benefits for only the shareholders.
C. Negative publicity from the news media.
D. Improved self-esteem – makes us feel good about our decision.
Feedback: Decisions that go against our sense of right and wrong make us feel bad—they
corrode our self-esteem. Following an ethics-based approach to decision making will result in
improved self-esteem.
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172. A U.S. government official has indicated that for a generous contribution to his
reelection fund, he would ignore your firm’s apparent violation of several anti-pollution
laws. Which of the following “ethics check questions” would you consider first?
A. Is it legal?
B. Is it fair and balanced?
C. How will it make me feel about myself?
D. Is it a generous amount?
Feedback: Agreeing to this offer would be (1) illegal, (2) unfair to other involved parties, and
(3) damaging to your self-esteem. However, the most basic ethics check question is “Is it
legal?”
173. A friend offers to share with you a term paper previously prepared for her Introduction
to Business class last semester. When you tell her that it wouldn’t be fair, she reminds you
of your habit of reading an entire Harry Potter book at the local bookstore without paying
for the book. Which ethics-based question would be most helpful in evaluating these
situations?
A. Is it legal?
B. Is it balanced?
C. Who wins and who loses?
D. Will I get caught?
Feedback: The question in these situations is one of fairness rather than legality. Balancing
self interests with the interests of others creates a win-win environment.
174.
Chapter 04 – Demanding Ethical and Socially Responsible Behavior
A high-level manager gathers his team of supervisors together to create a new office
policy that will affect all employees at the company. After receiving a verbal nod from the
supervisors, he then proceeds to pass around a written form of the new policy and asks all
members of the team to initial it. He explains to the supervisors that the new policy will be
posted in the break rooms on each floor of corporate headquarters. If you were a part of
this work team, which question would you ultimately ask yourself before initialing your
approval of this policy?
A. Is it legal?
B. Is it balanced?
C. How will it make me feel about myself?
D. Is it a lose-lose situation?
Feedback: By initialing this document, the supervisor is confident that it is the right decision
and is proud to share the decision with friends and co-workers. He/she is willing to show
everyone that he/she believes it is the ethical way to operate.
175. The majority of CEOs blame unethical employee conduct on:
A. the breakdown of traditional religious institutions.
B. a failure of leadership to establish ethical standards.
C. the increase in lawsuits used to avoid personal responsibility.
D. the nation’s business schools that tolerate unethical behavior in students.
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176. Ethical behavior at work is learned by:
A. Attending corporate responsibility seminars.
B. Tracking the failures of those who are caught in business scandals.
C. Reading about why others were fired from the job.
D. Observing the actions of others.
177. Which of the following is a reason why a business should be managed ethically?
A. It is the right thing to do.
B. Strict global regulations require it.
C. It is the law in the U.S.
D. Employees demand it.
178. Relationships between businesses and among nations,
A. should be based on international law, exclusively.
B. should be based on fairness, honesty, openness, and moral integrity.
C. should be scrutinized carefully to make some determination as to whether both sides
have the same type of leader behavior when it comes to assigning work.
D. will be adversarial because seldom does either side believe in win-win situations.
179.
Chapter 04 – Demanding Ethical and Socially Responsible Behavior
Corporate values are:
A. a personal matter to be determined by each employee.
B. taught by attending company-sponsored seminars.
C. instilled by the leadership of outside consultants.
D. learned by observing the actions of others in the organization.
Feedback: Ethics is caught more than it is taught. That is, people learn their standards and
values from observing what others do, not what they say.
180. When managers disregard ethical concerns, the likely result is:
A. a reduction in employee turnover.
B. an improvement in overall manager morale.
C. a reduction in lawsuits.
D. a general mistrust between workers and management.
Feedback: Corporate standards demonstrated by top management impact the values of the rest
of the organization. People learn their standards and values from observing others. Any trust
and cooperation between workers and managers must be based on fairness, honesty, openness,
and moral integrity.
181.