Business Ethics and Social Responsibility

1
Business Ethics and Social Responsibility

• Chapter 2 CRS Questions and Answers

2
Ethical behavior conforms to _____ about what is
right and good.

• Social norms
• Individual beliefs
• Conventional wisdom
• Public service messages
• Both 1 and 2 above

3
Ethical behavior conforms to _____ about what is
right and good.

• Social norms
• Individual beliefs
• Conventional wisdom
• Public service messages
• Both 1 and 2 above

Ethical behavior conforms to individual beliefs
and social norms about whats right and good.
4
_____ are behavior standards that guide
individual managers in their work.

• Business ethics
• Managerial ethics
• Individual ethics
• Social responsibilities
• Rules of management

5
_____ are behavior standards that guide
individual managers in their work.

• Business ethics
• Managerial ethics
• Individual ethics
• Social responsibilities
• Rules of management

Managerial ethics are standards of behavior that
guide individual managers in their work.
6
Managerial ethics can be classified in terms of
behavior toward _____.

• Employees
• The organization
• Other economic agents
• All of the above
• None of the above

7
Managerial ethics can be classified in terms of
behavior toward _____.

• Employees
• The organization
• Other economic agents
• All of the above
• None of the above

Managerial ethics can be classified based on
behavior toward employees, the organization, and
other economic agents.
8
All of the following except _____ are ethical
norms.

• Utility
• Rights
• Caring
• Justice
• Expediency

9
All of the following except _____ are ethical
norms.

• Utility
• Rights
• Caring
• Justice
• Expediency

When assessing ethical behavior, one should
consider the ethical norms of utility, rights,
justice, and caring.
10
The stakeholder model of social responsibility
focuses on _____.

• Customers
• Employees
• Local communities
• Investors and suppliers
• All of the above

11
The stakeholder model of social responsibility
focuses on _____.

• Customers
• Employees
• Local communities
• Investors and suppliers
• All of the above

Socially responsible companies focus on five main
groups of stakeholders customers, employees,
suppliers, investors, and local communities.
12
_____ occurs when two or more firms agree to
commit illegal acts.

• Collusion
• Collaboration
• Unfair pricing
• Insider trading
• Fiscal impropriety

13
_____ occurs when two or more firms agree to
commit illegal acts.

• Collusion
• Collaboration
• Unfair pricing
• Insider trading
• Fiscal impropriety

Collusion is an illegal agreement between two or
more companies to commit a wrongful act, such as
price fixing.
14
_____ is an employee who publicizes a firms
illegal or unethical activities.

• An insider
• A tattletale
• A whistle-blower
• A corporate guerrilla
• A boardroom activist

15
_____ is an employee who publicizes a firms
illegal or unethical activities.

• An insider
• A tattletale
• A whistle-blower
• A corporate guerrilla
• A boardroom activist

A whistle-blower is an employee who detects and
exposes a companys unethical, illegal, or
socially irresponsible actions.
16
Which of the following is not an approach to
corporate social responsibility?

• Proactive stance
• Reactive stance
• Defensive stance
• Obstructionist stance
• Accommodative stance

17
Which of the following is not an approach to
corporate social responsibility?

• Proactive stance
• Reactive stance
• Defensive stance
• Obstructionist stance
• Accommodative stance

There are four approaches to corporate social
responsibility obstructionist, defensive,
accommodative, and proactive.
18
The buying or selling of stock based on
confidential information is called _____.

• Profiteering
• Racketeering
• Insider trading
• Improper stock trading
• Fiscal mismanagement

19
The buying or selling of stock based on
confidential information is called _____.

• Profiteering
• Racketeering
• Insider trading
• Improper stock trading
• Fiscal mismanagement

Insider trading occurs when someone uses
confidential information to gain from the
purchase or sale of stock.
20
_____ checks a firms use of funds set aside to
meet social responsibility goals.

• A tax audit
• A social audit
• An ethical audit
• An interim audit
• An internal audit

21
_____ checks a firms use of funds set aside to
meet social responsibility goals.

• A tax audit
• A social audit
• An ethical audit
• An interim audit
• An internal audit

A social audit analyzes a firms success in using
funds earmarked for meeting its social
responsibility goals.