Chapter 2

Question 1

ethics

Answer 1

the study of right and wrong and the morality of the choices individuals make

Question 2

business ethics

Answer 2

the application of moral standards to business situations.

Question 3

Sarbanes-Oxley of 2002

Answer 3

provides sweeping new legal protection for employees who report corporate misconduct.

Question 4

code of ethics

Answer 4

a guide to acceptable and ethical behavior as defined by the organization

Question 5

whistle-blowing

Answer 5

informing the press or government officials about unethical practices within one’s organization.

Question 6

social responsibility

Answer 6

the recognition that business activities have an impact on society and the consideration of that impact in business decision making ability

Question 7

caveat emptor

Answer 7

a Latin phrase meaning “let the buyer beware”

Question 8

What year was the Interstate Commerce Act?

Answer 8

1887

Question 9

Define the Interstate Commerce Act

Answer 9

First federal act to regulate business practices; provided regulation of railroads and shipping rates.

Question 10

What year was the Sherman Antitrust Act?

Answer 10

1890

Question 11

Define the Sherman Antitrust Act of 1890.

Answer 11

Prevented monopolies or mergers where competition was endangered.

Question 12

What year was the Pure Food and Drug Act?

Answer 12

1906

Question 13

What are major provisions of the Pure Food and Drug Act of 1906?

Answer 13

Established limited supervision of interstate sales of food and drugs.

Question 14

What year was the Meat Inspection Act?

Answer 14

1906

Question 15

Define major provisions of the Meat Inspection Act of 1906.

Answer 15

Provided for limited supervision of interstate sales of meat and meat products.

Question 16

What year was the Federal Trade Commission Act?

Answer 16

1914

Question 17

Define major provisions of the Federal Trade Commission Act of 1914.

Answer 17

Created the Federal Trade Commission to investigate illegal trade practces.

Question 18

What year was the Clayton Antitrst Act?

Answer 18

1914

Question 19

What is the Clayton Antitrust Act of 1914?

Answer 19

Eliminated many forms of price discrimination hat gave large businesses a competitive advantage over smaller firms

Question 20

What two notable laws were passed in 1906 affecting businesses.

Answer 20

1. Pure Food and Drug Act

2. Meat Inspection Act

Question 21

What two laws affecting business were passed in 1914?

Answer 21

1. Federal Trade Commission Act

2. Clayton Antitrust Act

Question 22

economic model of social responsibility

Answer 22

the view that society will benefit most when business is left alone to produce and market profitable products that society needs.

Question 23

socioeconomic model of social responsibility

Answer 23

the concept that business should emphasize not only profits but also he impact of its decisions on society

Question 24

What are the two views of social responsibility?

Answer 24

1. The Economic Model

2. The Socioeconomic Model

Question 25

Economic Model Primary Emphasis

Answer 25

1. Production
2. Exploitation of natural resources
3. Internal, market-based decisions
4. Economic return (profit)
5. Firm’s or manager’s interest
6. Minor role for government

Question 26

Socioeconomic Model Primary Emphasis

Answer 26

1. Quality of Life
2. Conservation of natural resources
3. Market-based decisions, with some community controls
4. Balance of economic return and social return.
5. Firm’s and community’s interests
6. Active government

Question 27

consumerism

Answer 27

all activities undertaken to protect the rights of consumers

Question 28

minority

Answer 28

a racial, religious, political, national, or other group regarded as different from the larger group of which it is part and that is often singled out for unfavorable treatment

Question 29

What year was the Truth in Lending Act?

Answer 29

1968

Question 30

What is the “Truth in Lending Act”?

Answer 30

Required lenders and credit merchants to disclose the full cost of finance charges in both dollars and annual percentage rates

Question 31

What year was the “Fair Credit Reporting Act”?

Answer 31

1971

Question 32

What was the Fair Credit Reporting Act of 1971?

Answer 32

Required credit bureaus to provide credit reports to consumers regarding their own credit files; also provided for correction of incorrect information

Question 33

affirmative action program

Answer 33

a plan designed to increase the number of minority employees at all levels within an organization

Question 34

EEOC

Answer 34

Equal Employment Opportunity Commission

Question 35

Equal Employment Opportunity Commission (EEOC)

Answer 35

government agency with the power to investigate complaints of employment discrimination and power to sue firms that practice it.

Question 36

hard-core unemployed

Answer 36

workers with little education or vocational training and a long history of unemployment

Question 37

NAB

Answer 37

National Alliance of Business

Question 38

National Alliance of Business (NAB)

Answer 38

a joint business-government program to train the hard-core unemployed.

Question 39

polution

Answer 39

the contamination of water, air, or land through the actions of people in an industrialized society.

Question 40

What year was the National Environmental Policy Act passed?

Answer 40

1970

Question 41

Major provisions of the National Environmental Policy Act

Answer 41

Established the EPA to enforce federal laws that involve the environment

Question 42

What year did major environmental laws start passing

Answer 42

Starting in the ‘70’s

Question 43

social audit

Answer 43

a comprehensive report of what an organization has done and is doing with regard to social issues that affect it.