Business & Society, 16e (Lawrence)
Chapter 15 Employees and the Corporation
1) Rights of employees are ethical and social, not legal or contractual, in nature.
2) Employees in the United States have the right to organize and bargain collectively.
3) Employers are not required by law to agree to the union’s demands, but they are required to
bargain in good faith.
4) Some labor unions have exerted their influence through political action committees.
5) The Occupational Safety and Health Act gives workers the right to a job “free from recognized
hazards that are causing or likely to cause death or serious physical harm.”
6) Employment-at-will is a legal doctrine that means employees are hired and retain their jobs at
the sole discretion of the employer.
7) The U.S. Department of Labor has ruled that employees who are economically dependent on the
employer should be classified as independent contractors.
8) The level of income inequality in the United States has fallen since the 1980s.
9) In a business context, privacy rights refer to protecting an individual’s personal life from
unwarranted intrusion by his or her employer.
10) In recent years, the use of drug testing in the workplace has increased as drugs have become
more available.
11) Drug testing for cause is commonly used after an accident or some observable change in
behavior.
12) The problem of alcohol-related accidents in the workplace is caused almost entirely by
hard-core alcoholics.
13) Critics have argued that honesty tests discriminate disproportionately against minorities.
14) Some firms require managers to sign a consensual relationship agreement to protect against
harassment suits related to failed office romances.
15) The U.S. Constitution protects the right to free speech—which means only the government can
take away this right.
16) If someone is entitled to be treated in a certain way, this refers to a(n):
A) Relationship.
B) Obligation.
C) Duty.
D) Right.
17) Employees in the United States have a legal right to:
A) Organize and bargain collectively.
B) A safe and healthy workplace.
C) A job.
D) Both of these answers are correct: Organize and bargain collectively; and a safe and healthy
workplace.
18) Where are workers not permitted to form independent unions?
A) Europe.
B) Some communist countries.
C) Some military dictatorships.
D) Both some communist countries and some military dictatorships.
19) Under U.S. laws, who has the right to hold an election to choose what union they want to
represent them, if any?
A) Only private workers.
B) Only public workers.
C) Most private and public workers.
D) Only the employer.
20) As shown in Figure 2, in 2015 the countries with the highest and lowest percentages of
unionized labor, respectively, were:
A) Belgium, United States.
B) Iceland, Turkey.
C) Canada, France.
D) United States, Ireland.
21) States that have adopted right-to-work laws:
A) Bar companies from forming unions to represent their employees.
B) Prevent unions from requiring all workers they represent to pay fees or dues.
C) Require the formation of unions in all manufacturing organizations.
D) Have taken away the rights of workers in the public sector to form unions.
22) Since the mid-1950s the proportion of American workers represented by unions has:
A) Decreased.
B) Increased.
C) Remained about the same.
D) Grown only in the manufacturing sector.
23) The right to a safe and healthy workplace is accurately described by which statement?
A) Over recent years no new categories of accidents or illnesses have emerged.
B) Extensive training and careful precautions are necessary to avoid accidents, injuries, and
illness.
C) A very limited number of jobs are potentially hazardous to workers’ safety and health.
D) Regulations and enforcement have failed to curb worker accidents.
24) According to the U.S. Department of Labor, some of the most dangerous jobs include:
A) Biologists and lab technicians.
B) Teachers and school administrators.
C) Pilots and flight attendants.
D) Police, fire fighters, prison guards.
25) The practice of adapting the job to the worker is called:
A) Social contracts.
B) Living wages.
C) Electronic monitoring.
D) Ergonomics.
26) The leading cause of death on the job is due to:
A) Falls.
B) Vehicle accidents.
C) Contact with equipment.
D) Murder.
27) The Occupational Safety and Health Act gives workers the right to a job:
A) With equal wages for similar kinds of work.
B) With wages that enable an employee to enjoy a decent standard of living.
C) That is free from recognized hazards that are likely to cause death or serious injury.
D) That does not require them to lift, bend, or move items at any time on the job.
28) Some studies have shown that the burden of complying with safety regulations falls hardest on:
A) The government.
B) Large businesses.
C) Small businesses.
D) The manufacturing sector only.
29) According to the new social contract:
A) The employer is obligated to provide long-term job security.
B) Companies try to attract workers by giving them interesting and challenging work.
C) Job security is based on seniority, but salaries may be lowered for poor performance.
D) The employer is without any responsibilities toward employees.
30) One important aspect of the new social contract regarding fixed pension benefits is:
A) Pension benefits are on the rise.
B) These benefits have remained a solid incentive for workers.
C) Fixed pensions have been reduced in the U.S. by around 90 percent.
D) Defined contribution plans now provide more returns and less risk.
31) The “gig” (or sharing) economy is accurately described by which of these?
A) Many companies have become more cost-efficient.
B) Risk has shifted from the worker to the company.
C) The generally low wages have increased the welfare burden on the government.
D) Both of these answers are correct: Many companies have become more cost-efficient; and the
generally low wages have increased the welfare burden on the government.
32) A strong employer-employee relationship is central to:
A) Achieving a corporation’s economic goals.
B) Satisfying the wishes of those who contribute their skills and talents to the company.
C) Increasing the gross domestic product of a nation.
D) Both of these answers are correct: Achieving a corporation’s economic goals; and satisfying the
wishes of those who contribute their skills and talents to the company.
33) Businesses can reduce income inequality by which action?
A) Adjust minimum wage laws to increase worker pay.
B) Pass a new tax law that benefits workers.
C) Provide very high executive compensation.
D) Commit to paying a living wage to all employees.
34) A living wage has been defined as a wage that:
A) Equals or exceeds the minimum wage established by law.
B) Equals or exceeds one-and-a-half times the minimum wage established by law.
C) Supports the basic needs of an average-sized family, based on local prices.
D) Supports half the basic needs of an average-sized family, based on local prices.
35) A reason for an increase in employee monitoring does not include:
A) To achieve greater efficiency at work.
B) To avoid lawsuits if employees act in inappropriate ways.
C) To make sure employees do not disclose confidential information.
D) To reduce the employer’s health insurance premiums.
36) Romantic relationships in the workplace are described by which statement?
A) Most businesses have strict policies forbidding all romantic relationships in the workplace.
B) OSHA requires businesses to forbid workplace romantic relationships.
C) Many companies allow managers to become romantically involved with subordinates, so long
as they do not supervise them directly.
D) Almost all businesses ban romantic relationships between employees in the different
departments.
37) Random drug testing of employees is accurately described by which statement?
A) It screens randomly selected employees at various times through the year.
B) It randomly tests selected applicants before hiring, as a part of a physical examination.
C) It tests an employee believed to be impaired by drugs and unfit for work.
D) It regularly tests employees from randomly selected job categories or job levels.
38) Employee Assistance Programs (EAPs) are correctly described by which of these statements?
A) They offer counseling and follow-up to alcohol and drug abusers.
B) Almost all employers with 1,000 or more workers offer EAPs.
C) Nearly three-quarters of small companies with 50 to 99 employees offer EAPs.
D) All of these answers are correct.
39) Employee theft is correctly described by which statement?
A) Almost half of all inventory losses are due to employee theft in the U.S.
B) It is a significant economic, social, and ethical problem in the workplace.
C) Almost half of all employees have stolen from an employer at least once in his or her career.
D) In 2017, employee theft in the U.S. costs business almost $30 million.
40) The right to free speech is protected in the United States by the:
A) Constitution.
B) Patriot Act.
C) False Claims Act.
D) Fair Labor Standards Act.
41) When an employee believes his or her employer has done something that is wrong or harmful
to the public, and he or she reports alleged organizational misconduct to the media, government, or
high-level company officials, what has occurred?
A) Insider trading.
B) Hot-lining.
C) Whistle-blowing.
D) Snitching.
42) The Sarbanes-Oxley Act makes it illegal for employers to:
A) Sue federal contractors for fraud.
B) Retaliate against whistle-blowers who report information that could have an impact on the
value of a company’s shares.
C) Hire employees who have a prior record of accounting fraud.
D) Both of these answers are correct: Retaliate against whistle-blowers who report information
that could have an impact on the value of a company’s shares; and hire employees who have a prior
record of accounting fraud.
43) Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent
of any amount recovered by the government?
A) False Standards Act.
B) Economic Priorities Act (as amended in 1999).
C) U.S. False Claims Act (as amended in 1986).
D) Fair Labor Standards Act.
44) What criteria must be met before a whistle-blower goes public?
A) The unreported act would do some harm to others.
B) The employee has not yet tried to resolve the issue internally.
C) Reporting the problem publicly may or may not resolve the issue.
D) There is enough potential harm to justify the possible costs of disclosure to the whistle-blower.
45) In the case The Ugly Side of Beautiful Nails, the nail salon industry violated which of these
worker rights?
A) To privacy.
B) To organize and bargain collectively.
C) To due process on the job.
D) To a safe and healthy workplace.
46) Workers in the United States enjoy several important legal guarantees. Discuss three major
worker rights. What are the U.S. laws and regulations that govern each? How do such policies
compare with those of other countries?
47) Discuss working conditions around the world. What challenges face multinational
corporations? What approaches are companies using to establish fair labor standards? Are there
circumstances under which some approaches might work better than others?
48) Discuss the pros and cons of the new social contract from the viewpoint of an employer and
employee. What duty does an employer have to provide job security to its workers?
49) Income inequality has grown in the United States since the 1980s. In what ways do businesses
contribute to this trend? What, if anything, can businesses do to reduce income inequality?
50) Some people believe that the right of privacy should be extended to the workplace. Others feel
that, on the contrary, such an extension would constitute an unwarranted incursion into
management’s right to manage. Please comment on this debate, using examples from the text
discussion of electronic monitoring, romance in the workplace, employee drug testing, and
employee honesty testing. Are there particular circumstances under which it is, or is not,
appropriate for employers to monitor employee behavior?
51) As the use of electronic communication at work has risen, new ethical issues involving worker
privacy have emerged. Should employers be allowed to read employee e-mail, inspect their
Facebook pages or blogs, or access files located on a personal computer at work? Why or why not?
52) Provide an example where employee whistle-blowing is justified and an example where it is
not. Provide support for each example.