Business Ethics, 8e Jennings
UNIT SEVEN – ETHICS, BUSINESS OPERATIONS, AND
RIGHTS
True/False Questions
termination.
ride in them. It would be unethical to use a company car to drive you and your spouse to
a movie.
your duties at work. Each week you must submit case analyses to your professor. Using
work time to complete the analyses would be unethical.
would be unethical.
purchasing, you were largely responsible for awarding that supplier the contract. The
supplier’s sales representative has just called and would like to take you to lunch to thank
you for the support. Going to lunch with the sale representative does not present any
ethical problems.
are pending.
Under county regulations, all steps in plumbing construction from the initial dig to the final
installation of sink and bathroom fixtures requires an inspection sign-off. Your plumbing
contractor friend has just called and wants to take you to dinner for your birthday at a
five-star restaurant. Because you are friends anyway, the dinner presents no ethical
problems.
using. You have taken one home and set it up for personal use. This is unethical
conduct.
Business Ethics, 8e Jennings
in the district and supervise construction and remodeling and assess various building
needs. When you are traveling around to the various schools, you use a district vehicle
that is clearly marked as such. One day you stop at the country club and have lunch
before heading to the next school since the country club is on the way. You also stop at
the bank drive-thru teller to do some personal banking business. Both the lunch and the
bank stop are ethical breaches.
co-worker who is very bright and capable and hardworking. Your supervisor has asked
you to document everything Jane does and says that will help build a case for
termination. You should do as your supervisor tells you.
husband is not paying the child support the temporary court order requires. As a result,
Alice is broke until she can get her court hearing. Alice has been able, through diverting
checks returned to the company, to take about $2200 from the company to “temporarily
help her cover her bills,” as she has explained to you. You must report Alice’s
embezzlement.
Organists. Alice has been placed in charge of the Guild’s national convention. Each time
you pass by Alice’s desk or go to her to have some work done, you notice she is on the
phone discussing or working on the convention. Alice’s work on the convention during
work hours is an ethical violation.
his desk for several months. A secretary spotted the calendar and commented to your
supervisor that it was not appropriate for an office. Your supervisor took down the
calendar and has asked you to back him up if any complaints are filed. He has asked
you to say that you never saw the calendar. It would not be unethical for you to do as
your supervisor requests because he has removed the calendar.
without taking time off.
paper, paper clips, pens) is not an ethical violation.
your family.
not result in good feedback about you if your supervisors there are contacted.
through the lines of authority.
to a prospective employer is a breach of ethics.
privacy.
Business Ethics, 8e Jennings
have no rights of privacy.
turn to external avenues.
wait and see how much harm can result before taking precautions.
she is covering has a conflict of interest.
is no bid pending.
nothing from suppliers.
conflict of interest.
compensation systems.
a stretcher.
Business Ethics, 8e Jennings
rig.
offshore drilling following BP’s Deepwater Horizon spill.
problems after Feuerstein paid them whilst the factory was being rebuilt.
continuing oiling effects.
pharmaceutical companies.
pharmas for docs.
to the agent’s employer is ethical so long as the agent would have chosen that seller
anyway.
without disclosing that the agent owns 50% of the firm has committed an ethical violation.
Business Ethics, 8e Jennings
without disclosure to either has not committed an ethical violation if both parties are
happy with the transaction.
conflict of interest in voting on the city’s award of a contract for the handling of the city’s
waste.
F 77. A physician conducting a study on a new prescription drug manufactured by a firm in
which he is a 10% shareholder does not have a conflict of interest so long as his stock
ownership is disclosed in his report on the drug.
conflict of interest if she has an endorsement contract with one of the shoe companies
that manufactures the shoes she will be evaluating.
company board is not a conflict of interest.
part of the labs, but do not disclose such, is a conflict of interest.
your spouse should not create perception problems so long as your purchasing decisions
are based on the merits.
evaluating collateral is not a conflict of interest.
still an ethical violation.
researcher conducting studies has validated the firm’s claims is a conflict of interest.
company headquarters building for Smithco. A friend you have known since high school
works in Smithco’s capital budgeting area and has full knowledge of all the bids from all
firms. It would be unethical for your friend to share that information with you before you
submitted your bid.
information to your company.
with your company.
exposure to harm from chemicals at work.
chemicals that harm fetuses.
Business Ethics, 8e Jennings
that competes with the subject of his research.
conflict of interest in voting on the city’s award of a contract for the handling of the city’s
waste.
Under county regulations, all steps in plumbing construction from the initial dig to the final
installation of sink and bathroom fixtures requires an inspection sign-off. Your plumbing
contractor friend has just called and wants to take you to dinner for your birthday at a
five-star restaurant. Because you are friends anyway, the dinner presents no ethical
problems.
in the district and supervise construction and remodeling and assess various building
needs. When you are traveling around to the various schools, you use a district vehicle
that is clearly marked as such. One day you stop at the country club and have lunch
before heading to the next school since the country club is on the way. You also stop at
the bank drive-thru teller to do some personal banking business. Both the lunch and the
bank stop are ethical breaches.
stadium. The mayor has a conflict of interest and should not vote on the location of the
stadium when the city council takes action on the site.
regulates.
disqualify herself if her spouse works for the insurer.
between the city and the football team can accept tickets, dinners, and team clothing
items without raising conflicts issues.
case.
administrative hearings involving the company.
which he holds an ownership interest.
Multiple Choice Questions
1. When Ann Hopkins submitted her application for partnership, how many female partners did
Price Waterhouse have?
Business Ethics, 8e Jennings
2. How long had Hopkins been with Price Waterhouse at the time she applied for partnership?
3. Of those who were applying for partnership at the time Ann Hopkins was applying, how many
were women?
4. Which of the following was not a description of Ann Hopkins that appeared in the comments from
the partners at Price Waterhouse?
5. Which of the following was not a description of Ann Hopkins that appeared in the comments from
the partners at Price Waterhouse?
6. Which of the following was not a description of Ann Hopkins that appeared in the comments from
the partners at Price Waterhouse?
7. How many candidates were approved for partnership in the year Hopkins was a candidate?
8. What happened to Hopkins?
9. What percentage of Price Waterhouse partners today are women?
10. What is the percentage of female partners in all accounting firms today?
11. Why was Julie Roehm fired by Walmart?
12. Which is the form employers must have for employees from other countries?
13. What was Ms. Wetlaufer’s job when she met Jack Welch?
14. Why did fellow employees demand Ms. Wetlaufer’s resignation?
15. As a result of the Welch divorce, what happened at GE?
16. Mr. Welch and Ms. Wetlaufer:
17. What ethical issue existed with the Harvard Business Review editor and Jack Welch?
18. Who is Randi W.?
19. What was Gadams’s first place of employment?
20. What happened at Gadams’s first place of employment?
21. Who is Gilbert Rossette?
22. What type of letter of recommendation did Gadams’s receive from his first employer?
23. Who said he would “recommend him (Gadams) for almost any administrative position he wishes
24. What conduct was Gadams involved in while at Golden Plains School?
25. How many schools was Gadams employed at prior to Livingston?
26. How many positive letters of recommendation did Gadams receive from administrators at the
schools?
27. How did the information about Gadams’s employment and letters of recommendation become
known?
28. Why are former employers reluctant to furnish negative information to prospective employers of
their former employees?
29. You have witnessed one of your co-workers engaged in behavior that constitutes sexual
harassment of one of the department secretaries. The secretary has spoken with you about the
behavior and her concerns. She has also said, “Let me handle it.” It seems that she is not able
to handle it because the behavior has continued. You should:
30. You are a sales associate with a large department store chain. You have noticed that a fellow
sales associate has been taking high-ticket items home with her. You have checked the sales
records and she has not been paying for the items. You should:
31. You had quite a night last night of partying. Because of excessive drinking, you are unable to get
to work today. When you call your supervisor you:
32. You are at lunch when you notice one of your firm’s delivery drivers sitting at the bar in the
restaurant. The driver is having shots of tequila over the course of the lunch hour. He then
returns to his truck in the parking lot and resumes deliveries. You:
33. Dr. Joseph Biederman and Dr. Timothy Wilens are members of the psychiatry department at
Harvard Medical School. The two scholars reported, in hindsight, $1.6 million they received from
drug makers between 2000 and 2007. The two are known for their advocacy of the use of
antipsychotic medicines in children and the payments to the two came from pharmaceutical firms
that produce such drugs. Consulting arrangements with the pharmas were already a topic of
concern because the good docs advocated unapproved uses of the drugs. Dr. Biederman
responded to the disclosure of the fees and his belated compliance with university policy on
reporting consulting arrangements, “My interests are solely in the advancement of medical
treatment through rigorous and objective study.” Which of the following best describes what
happened with Dr. Biederman?
34. After reading about the events in the Randi W case, which of the following would be the best
advice you could give a supervisor who is looking for guidance on writing reference letters for
employees who have been fired for cause, but who would like to avoid litigation against the
company?
35. Which of the following employers is likely to have an English-only policy upheld?
36. What accident at BP was a precursor to the Deepwater Horizon explosion?