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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)
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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
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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?
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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)
