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73) Cherries on Top, a national ice cream shop, is struggling financially to keep up with the bigger
chains. The top executives have decided to close all the stores in the Northeast and Texas, as that
will give them an additional one million dollars to put into marketing. This executive is practicing
the
A) individual approach.
B) utilitarian approach.
C) moral-rights approach.
D) justice approach.
E) value system approach.
74) Laura turns off lights when she leaves a room, brings her water bottle from home and refills it
throughout the day, and walks to work. Laura is
A) reducing her carbon footprint.
B) increasing her level of exercise.
C) expanding her awareness of social realities.
D) spending time in nature.
E) avoiding people who lack integrity.
75) North West Jacket Company has a policy that each employee volunteer at the local elementary
school reading or helping with math for 2 hours a month. They also donate coats for all children
who need them in the winter and give a financial contribution to the school. North West is
demonstrating its social responsibility through
A) operating with integrity.
B) 1/1/1 charitable giving.
C) fostering employee success.
D) a journey toward sustainability.
E) natural capital.
76) Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of
interests, and kickbacks. Also with the local elections just around the corner, management sent out
reminders about political contributions and confidentiality of company information. All of these
policies can be found in Olympia Marketing's
A) employee handbook.
B) policies and procedures manual.
C) moral rights approach.
D) code of ethics.
E) value system.
77) Sunset Oil is a large oil drilling company off the Gulf Coast. They want to expand their drilling
area and are receiving a great deal of push back from the local community. It will now be on the
ballot at the next election. Sunset Oil is concerned about how all of this will impact their bottom
line. Which of the following should be a consideration for Sunset Oil?
A) task environment
B) social audit
C) triple bottom line
D) clawbacks
E) crowdfunding
78) Imagination Museum is holding nominations for its board of directors. It is the first time that
over half of the positions are vacant, due to either retirements or term expirations. The new CEO
wants to be sure that the board is representative of the community, as well as the patrons who
attend most of the events. Which of the following considerations are important for a good board?
A) racial balance
B) financial balance
C) religious/cultural balance
D) educational attainment balance
E) gender balance
79) This year Aetna announced it was moving out of Hartford, Connecticut, where it had held it
headquarters for over 100 years. The announcement sent shockwaves through an already
economically challenged state. How would Aetna leaving have an impact on the local community?
A) People would move out of Connecticut causing a housing market issue with too many homes
for sale.
B) Restaurants close to the office building may close due to lack of customers.
C) There would be vacant office buildings with no property taxes being paid.
D) Employees would no longer exercise at the local park.
E) Courses in insurance adjustment would no longer be offered at the community college.
80) Cara has discovered that due to a time crunch, her boss has let the latest round of prescription
medications be sent to pharmacies without the final check. She claims that there has never been an
issue with this particular drug in the past and if patients weren't able to get their medications on
time, the story would definitely be in the newspaper. Her boss is willing to take the risk. After all
what could possibly go wrong? What do you think Cara should do?
A) Report her boss for an ethical violation.
B) Agree with her boss and do nothing.
C) Agree with her boss, but document her objections, just in case.
D) Report her boss to the newspaper.
E) Disagree with her boss and ask HR to reassign her.
81) Darci wants incorporate changes into her life that will make her more ethical. She has heard
that people who get the right amount of sleep are less tempted by unethical behavior, so she has
made a commitment to go to bed earlier, when possible. She also is going to pick up reading again,
a hobby she has just not made time for lately, which will reduce her screen time especially right
before bed. What else might she try to do?
A) She might start thinking she is good at everything and can do no wrong, instilling confidence in
herself.
B) She might start handwashing her clothes instead of using the washing machine to reduce energy
costs.
C) She might get in the practice of turning off lights when she leaves rooms and remember to bring
a reusable water bottle to work.
D) She might stop her cable/satellite service and instead switch to a streaming service like Netflix
or Hulu.
E) She might begin to have her food delivered by a food service such as Hello Fresh or Blue Apron
instead of eating out.
82) "Glenn is the president of the senior class, and he is having a very busy semester, trying to
balance his coursework and his internship at a major company. He can't find the time he needs to
write a term paper for his history course. To save himself time, he decides to buy a prewritten
paper from a website that sells papers for a hefty fee." Alexi, his roommate, finds out and reports
him to the Dean of Student Services. Glenn is given an F on the paper and a chance to rewrite it,
which is seen as generous. Justify Alexi's actions.
83) Glenn is the president of the senior class, and he is having a very busy semester, trying to
balance his coursework and his internship at a major company. He can't find the time he needs to
write a term paper for his history course. To save himself time, he decides to buy a prewritten
paper from a website that sells papers for a hefty fee. Alexi, his roommate, finds out and reports
him to the Dean of Student Services. Glenn is given an F on the paper and a chance to rewrite it,
which is seen as generous. Justify Alexi's actions.
84) This question has two parts; be sure to answer both.
First, explain each element of the triple bottom line.
Next, imagine that you are managing Bright Smile Inc., a company that produces chemical
treatments that dentists use to whiten their patients' teeth. Explain how you might take each
element of the triple bottom line into account in your day-to-day management of the company.
85) This question has two parts; be sure to answer each one.
First, what are stakeholders, and why is it important for managers to understand this concept?
Second, describe the stakeholders at a nonprofit organization, Not For Me, whose employees
travel to grammar schools to talk with students about the dangers of drugs.
86) This question has two parts; be sure to answer both.
First, what are external stakeholders?
Next, imagine you are the manager of an art gallery, Designz, whose mission is to show (and sell)
art by marginalized populations, such as the homeless or undocumented immigrants. Describe at
least three of Designz's external stakeholders in the task environment.
46
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
As an art gallery, Designz is likely not subject to government regulation. It may work with
special-interest groups of artists to ensure that their work is represented at the gallery. The gallery
will also likely have a presence on social media, such as Facebook and Twitter, and will actively
seek friends and followers—all with the goal of getting the word out and selling more art.
Difficulty: 2 Medium
Topic: External Stakeholders
Learning Objective: 03-03 Identify important stakeholders outside the organization.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
87) Randy, a small café owner, is facing possible bankruptcy due to a severe decrease in business
in his restaurant. Evelyn, a friend of Randy, approached him about hiring illegal immigrants
because Randy can pay those workers a lower pay rate and save on payroll. Discuss some of the
legal and ethical issues involved in this situation. How should Randy respond to his ethical
dilemma—should he hire the illegal immigrants or not? Explain your answer.
88) Describe the Sarbanes-Oxley Act of 2002 and the mandates it placed on organizations.
89) Describe Lawrence Kohlberg's three levels of personal moral development. Imagine that you
manage a local bookstore, and explain how your management style or techniques would be
different at each level.
90) Contrast the viewpoints for and against social responsibility. Which leading economist argued
against social responsibility?
91) This question contains two parts; be sure to answer both.
First, compare the four levels of Carroll's global corporate social responsibility pyramid. Give an
example of what is desired, expected, or required at each level by global stakeholders or global
capitalism at each level.
Next, imagine that you are the CEO of a corporation that runs a well-branded fast-food chain,
Simply Salads. Simply Salads is in many countries, including nations in Europe, Asia, Africa,
North America, and South America. Apply each of Carroll's four levels to your business.
51
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 03-05 Describe the concept of social responsibility and its role in today's
organizations.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
92) Explain the recent concerns for the independence of the board of directors.
93) Roanoke Paper has planted a tree for every tree it has cut down for the last 20 years. It also
recycles its water through a sophisticated filter system that it can conserve this natural resource.
Explain how Roanoke Paper has gone green.
94) Fordham professor Robert Hurley said, "We do not have a crisis of ethics in business today.
We have a crisis of trust." Would you agree?
95) How can you become an ethical consumer?
