Chapter 7

Question 1

Ted’s Telecom company has a clear philosophy that states it will only take business actions that will not put future generations at a disadvantage as they try to meet their needs. Based on that statement, Ted’s company believes strongly in __________.

Answer 1

sustainable development

Question 2

Ethics in advertising is an important subject that is being complicated by innovative practices. Some companies pay individuals (often actors) to promote their products to other individuals, in regular settings, like a cafe or even on the street. This practice is known as __________.

Answer 2

stealth advertising

Question 3

Sam was at home reading his email when he realized his supervisor had accidentally included him on a private work email about one of his colleagues. Sam immediately contacted his supervisor and explained that he would keep the information confidential. This is an example of ________.

Answer 3

Business ethics

Question 4

The extent to which the members of an organization follow basic ethical and legal standards of behaviour is referred to as ________.

Answer 4

Ethical compliance

Question 5

What is an accommodative stance toward social responsibility?

Answer 5

The approach to social responsibility by which a company, if specifically asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environment.

Question 6

What is an illegal agreement by two or more companies to commit wrongful acts?

Answer 6

Collusion

Question 7

The beliefs that it is good to help others and wrong to steal, for example, are known as __________.

Answer 7

Ethics

Question 8

There are four ethical norms we can apply in making ethical decisions: rights, justice, caring, and utility. Utility would BEST be evaluated by asking what questions?

Answer 8

Does a particular act optimize the benefits to those who are affected by it?

Question 9

Moving factory production to an area with low wages and few health regulations may not be illegal, but it would mostly likely be considered ________.

Answer 9

Unethical behaviour

Question 10

What is consumerism?

Answer 10

A social movement that seeks to protect and expand the rights of consumers in their dealings with businesses

Question 11

When you shop at Loblaws, you will notice that all food products list their ingredients on the packaging. This is an example of the ________ in practice.

Answer 11

right to be informed

Question 12

The practice of writing a cheque from one account, depositing it in a second account, and then immediately spending money from the second account while the money from the first account is still in transit is known as ___________. This practice is irresponsible because it involves using other people’s money without paying for it.

Answer 12

cheque kiting

Question 13

Customers, employees, investors, suppliers, and the local community are collectively referred to as __________.

Answer 13

organizational stakeholders

Question 14

What are standards of behaviour that guide individual corporate leaders in their work?

Answer 14

Managerial ethics

Question 15

What is ethical compliance?

Answer 15

The extent to which the members of the organization follow basic ethical and legal standards of behaviour

Question 16

Consumerism is a movement dedicated to protecting the rights of consumers in dealing with businesses. Central to this right is free and open competition among companies. This statement relates to a consumer’s right to __________.

Answer 16

choose what they buy

Question 17

What is collusion?

Answer 17

Illegal agreement between two or more companies to commit a wrongful act

Question 18

When an activity benefits the employee at the expense of the employer, this is considered a(n) __________.

Answer 18

conflict of interest

Question 19

The __________ movement is designed to help workers in developing countries receive equitable payments for their work.

Answer 19

fair-trade

Question 20

What is a social audit?

Answer 20

A systematic analysis of how a firm is using funds earmarked for social responsibility goals and how effective these expenditures have been

Question 21

What is a proactive stance to social responsibility?

Answer 21

Exhibiting the highest degree of social responsibility at all times
The approach to social responsibility by which a company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment

Question 22

What is based on individual beliefs and social concepts and vary from person to person?

Answer 22

Ethics

Question 23

What is the approach to social responsibility that involves doing as little as possible and may involve attempts to deny or cover up violations?

Answer 23

Obstructionist stance

Question 24

What is ethical sourcing?

Answer 24

The process of monitoring factories that produce a company’s products to make sure that those factories are providing good working conditions for their employees.

Question 25

What can a company do to take an accommodative stance towards social responsibility?

Answer 25

Exceed legal minimum legal requirements in its commitments to groups and individuals in its social environment

Question 26

What is ethics?

Answer 26

Includes beliefs that it is good to help others and wrong to steal, for example

Question 27

There are four commonly used ethical norms. What exemplifies the type of question you might ask if you were considering justice?

Answer 27

Is a particular act consistent with what’s fair?

Question 28

What defines insider trading?

Answer 28

The use of confidential information to gain from the purchase or sale of stock.

Question 29

\_\_\_\_\_\_ are beliefs about what is right and​ wrong, or good and bad.
A.
Folkways
B.
Ethics
C.
Attitudes
D.
Ethical behaviour
E.
Business ethics

Answer 29

Ethics

Question 30

\_\_\_\_\_\_\_\_\_\_ is a term often used to refer to ethical or unethical behaviours by a manager or an employee of a business.
A.
Business ethics
B.
Managerial ethics
C.
Ethical dilemma
D.
Code of ethics
E.
Social responsibility

Answer 30

Business ethics

Question 31

A movement designed to help workers in developing countries receive fair payment for their work is called​ \_\_\_\_\_\_\_\_\_\_\_.
A.
fair trade
B.
free trade
C.
trade embargo
D.
open economies
E.
tariff reduction

Answer 31

fair trade

Question 32

A measure developed to help companies​ understand, manage, and communicate the social value of their activities for stakeholders is​ \_\_\_\_\_\_\_\_\_\_.
A.
business ethics rating​ (BER)
B.
social return on investment​ (SROI)
C.
social responsibility rating​ (SRR)
D.
return on investment​ (ROI)
E.
return on social investment​ (RSI)

Answer 32

social return on investment​ (SROI)

Question 33

A company with​ a(n) \_\_\_\_\_\_\_\_\_\_ stance to social responsibility meets all its legal and ethical​ requirements, and in some cases even goes beyond what is required.
A.
accommodative
B.
obstructionist
C.
proactive
D.
moral
E.
defensive

Answer 33

accommodative

Question 34

A company with​ a(n) \_\_\_\_\_\_\_\_\_\_ stance to social responsibility will do as little as possible to solve social or environmental problems.
A.
proactive
B.
obstructionist
C.
accommodative
D.
ethical
E.
defensive

Answer 34

obstructionist

Question 35

Olivia works for Company A and decides to take some office supplies home to use for a charity drive she leads. This is an example of​ \_\_\_\_\_\_\_\_.
A.
unethical behaviour
B.
ethical behaviour
C.
social responsibility
D.
collusion

Answer 35

unethical behaviour

Question 36

Canwest learns it has been improperly charging customers for the past three years. In the short​ term, the BEST way for Canwest to demonstrate their commitment to ethical behaviour would be for top management to​ \_\_\_\_\_\_\_\_.
A.
discuss the issue internally
B.
acknowledge and take decisive action
C.
implement an ethics program for its employees
D.
revise the​ company's code of ethics

Answer 36

acknowledge and take decisive action

Question 37

Distributors of multilevel marketing products will increase their commissions by recruiting new members to the network.​ However, distributors are often also aware that these new recruits may never see a profit on their​ investment, even with the investment of a considerable amount of time. This is an issue of​ \_\_\_\_\_.
A.
responsibility
B.
ambiguity
C.
technology
D.
ethics

Answer 37

ethics

Question 38

In the​ video, Andrea Kao from New Perspectives Communication discussed a concern with an employee who was offered an​ all-expenses paid trip to the Super Bowl. Why was this a concern for the​ company?
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Part 1
A.
Company policy did not allow for gifts of any kind.
B.
Attendance at the Super Bowl was not acceptable for managers.
C.
Accepting the trip could create the appearance of favoritism for a particular vendor.
D.
Accepting the trip would have been a violation of federal law.
E.
Other employees were upset that they were not invited.

Answer 38

Accepting the trip could create the appearance of favoritism for a particular vendor.