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Exam 4: Demanding Ethical and Socially Responsible Behavior

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Question 51

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A phone call to a government official by an employee of the Enron Corporation disclosed the deception and dishonesty of the firm's accounting records. This employee played the role of a:

A) whistleblower.
B) horn blower.
C) cheerleader.
D) moral policeman.

E) C) and D)
F) B) and D)

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Question 52

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Corporate philanthropy refers to the position a firm takes on social and political issues.

A) True
B) False

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Question 53

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People involved in business may be tempted to do something unethical in order to increase sales and profits, but rarely do because if they are caught, our legal system will deal harshly with them.

Corporate philanthropy refers to the position a firm takes on issues that affect society.

When working with international firms, U.S. businesses:

As the human resources director for your company, it is your job to evaluate the company's benefits plan. Although several workers utilize the company day care facility, the facility costs the firm considerably more than another benefit might cost, such as having an on-site physician. The on-site physician services are supported by insurance, and the physician actually rents space from the company. Under these circumstances, eliminating the day care is a balanced decision.

Which of the following statements best describes a firm's commitment to its customers?

America's business ethics can improve simply by requiring written contracts with employees, customers, and owners. This alone will do the job!

A corporate policy should never make a value statement about the environment or other social and political issues, because it is doubtful the company can live up to the proclamation.

The purpose of a(n) ________ is to evaluate an organization's progress toward implementing programs that are socially responsible and responsive.

A society gets into trouble when people consider only what is illegal and not also what is ethical or unethical.

A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.

Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone for unauthorized personal phone calls. Fred misrepresents his product to a potential customer. All of these are examples of unethical behavior.

Enforcement is perhaps the most important step in an effective code of ethics.

Recently, a large insurance company in the Midwest made a public commitment toward corporate philanthropy when it dedicated 3% of its profits toward the cultural and environmental concerns of the large metropolitan area that houses its corporate headquarters. The CEO stated, "In honor of several hundred employees that come to work here every day, we want to give something back." In light of the fact that this is only helping one metropolitan area, the donation falls outside the realm of corporate social responsibility.

Recently, Bob was trying to choose among three mutual fund investments for his retirement account. As a socially conscious investor, he will prefer to invest in funds that hold the stocks of oil and coal companies, as opposed to wind-turbine and renewable energy companies.

A(n) ________-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.

Mini-Case Harry, Sirly, and Bo are in the midst of a heated discussion. As the chief operating officers of the U-Scream Ice Cream Corporation, they are reviewing the latest financial reports. Intense competition has resulted in deceased profits. Each of the three officers has his own view of how to reverse the current trend. Harry suggests cutting costs by firing union employees and hiring replacement workers at lower wages. He has directed the firm's attorney to find a loophole in the contract that will allow for this action. Sirly protests, stating that Harry's proposal is unethical and unfair. Sirly feels that every stakeholder should be treated equally, and that profiting at the expense of others is foolhardy. Bo, agreeing in part with Sirly, states, "We must be sensitive to all affected parties, but clearly our primary goal is to make a profit for our owners." In an attempt to resolve the conflict between Harry and Sirly, Bo offers an alternative suggestion: reduce the firm's charitable contributions until acceptable profit levels are realized. Sirly is outraged and reminds Bo of the social responsibilities that U-Scream Ice Cream has to the community, environment, suppliers, employees, and stockholders. -On which of the three ethics check questions would Harry primarily focus?

Ethical behavior will result in which of the following?