978-0134741086 Chapter 2 Part 2

Part 3: Chapter Exercises

You Be the Consultant: “Funding Social Ventures

Through Franchise Businesses”

1. What challenges does owning and operating a franchise business create for these

nonprofits? Explain. (LO 4) (AACSB: Reflective thinking)

2. What advantages do franchise businesses offer nonprofits that seek side

businesses to generate revenues to support their causes? (LO 5) (AACSB:

Analytical thinking)

3. Select a local nonprofit and work with a team of your classmates to brainstorm

ideas for a franchise business that could help create a sustainable cash flow to

support the mission of the social venture. What advice can you offer social

entrepreneurs on how to develop alternative revenues to replace declining grants

and donations? (LO 10) (AACSB: Application of knowledge)

Chapter 2, Page 29

to find shelter, appropriate work attire, and interviewing and other workplace skills. As a

result a for-profit employer may partner with and provide funding for the nonprofit in an

effort to then provide jobs for the formerly homeless people.

You Be the Consultant: “Think Before You Tweet”

1. If you were the judge reviewing the O’Connor case, how would you rule?

Explain your reasoning. (LO 7) (AACSB: Ethical understanding and reasoning)

2. If you were the judge in the Riley case, how would you rule? Explain your

reasoning. (LO 7) (AACSB: Ethical understanding and reasoning)

3. What policies would you put in place as a business owner about employee

comments on social media sites like Facebook and Twitter? Explain your

policies based on the cases discussed here. (LO 7) (AACSB: Ethical

understanding and reasoning)

You Be the Consultant: “But Is It Safe?”

1. How could the owners of Willow Springs have ensured the safety of their

customers and prevented the infections from occurring? Explain. (LO 10)

2. Would it have been ethical for Willow Springs to remain open after Kali’s case

came to light, even though there could never be definitive evidence linking the

infection to its lake? Explain. (LO 10) (AACSB: Ethical understanding and

3. What do you think the owners of Willow Springs should do with their property?

Should they reopen the water park if they can ensure that the water is safe for

4. Create a detailed diagram of all the stakeholders of Willow Springs. How is each

of the stakeholders affected by the water park’s actions? What conclusions can

you draw from this analysis? Explain. (LO 10) (AACSB: Ethical understanding

Chapter 2, Page 31

of these stakeholders will be affected to varying degrees, so allow students some latitude

in their assertions. In fact some debate about the degree of impact on each type of

stakeholder could lead to a healthy discussion. Steer the conversation to the triple bottom

line (3BL), which involves measuring business performance using profitability, its

commitment to ethics and social responsibility, and its impact on the environment (profit,

people, planet).

Part 4: Chapter Discussion Questions

2-1. What is ethics? (LO 1) (AACSB: Ethical understanding and reasoning)

2-2. Discuss the three levels of ethical standards. (LO 1) (AACSB: Ethical

understanding and reasoning)

2-3. List the core personal values you intend to bring to your business (e.g., treating

people fairly, giving something back to the community, and so on). (LO 1)

2-4. Where does each of your core values come from (e.g, religious faith, family,

2-5. Why is each of your core values important to you? (LO 1) (AACSB: Reflective

thinking)

2-6. In any organization, who determines ethical behavior? (LO 3) (AACSB: Ethical

2-7. Briefly describe the three ethical styles of management. (LO 1) (AACSB:

Ethical understanding and reasoning)

2-8. What are the benefits of moral management? (LO 1) (AACSB: Ethical

understanding and reasoning)

2-9. Describe the various methods for establishing ethical standards. (LO 3)

(AACSB: Ethical understanding and reasoning)

Establishing Ethical Standards (Refer to Table 2.5)

2-10. Which method for establishing ethical standards is most meaningful to you?

Chapter 2, Page 33

(LO 3) (AACSB: Application of knowledge)

Students’ responses will vary. However, this is a good question to stimulate them to think

about what is most important to them.

2-11. Why is it the most meaningful method for establishing ethical standards? (LO

3) (AACSB: Reflective thinking)

2-12. What can business owners do to maintain high ethical standards in their

companies? (LO 3) (AACSB: Ethical understanding and reasoning)

2-13. What is a social entrepreneur? (LO 4) (AACSB: Ethical understanding and

reasoning)