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Exam 4: Demanding Ethical and Socially Responsible Behavior

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Question 41

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Fresh Coats Paint Co. promotes its products as nontoxic and made from natural, organic substances. The paints are safe for all persons, including those with asthma and other lung conditions. If consumers learn that Fresh Coats' paints do not meet their expectations, their reaction is likely to tarnish the company's image.

A) True
B) False

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Question 42

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Ethical behavior requires more than following the law.

A) True
B) False

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Question 43

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

People need to make a living. Under this circumstance, one of the best social programs a firm can offer is

After years of customer feedback, Bank of Bux is finally going paperless. The bank's communications team promoted the strategy both internally and externally. Customers were strongly encouraged to utilize the bank's website and mobile system for all their banking needs. Customers unfamiliar or uncomfortable with online banking could sign up for workshops where employees show them how to navigate both the bank's new website and mobile app. The bank's initiative demonstrates

A common form of cheating in schools today is plagiarizing online material.

When it comes to social responsibility, some people feel that "before you can do good, you must do well." This reflects a firm's primary responsibility to its

An ethical manager's decisions are based only on the following questions: "Is it legal?" and "Is it profitable?"

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.

Applying the ethical standards of the U.S. to foreign firms is a difficult process for U.S. firms.

Ethical behavior at work is learned by

Businesses have a social responsibility to create jobs.

Management can create an environment in which unethical behavior can develop.

Business relationships often present ethical dilemmas that are

Explain the difference between a compliance-based ethics code and an integrity-based ethics code.

Henderson HVAC Pros is a heating and cooling company in Kansas City, Kansas. Henderson allows its employees paid time off to volunteer for nonprofit organizations. Which of the following statements best explains this company's action?

The majority of CEOs blame unethical employee conduct on

Anna is a stockbroker for Bank of Bux. A client who works at Game Guys, Ltd., just called to purchase thousands of shares of Game Guys' company's stock. He reveals to her that the company is soon announcing the appointment of a new superstar CEO. Anna asks her client if this information is public knowledge. The reason she asks is to make certain that her client, her company, and she remain in compliance with Regulation FD, the fair disclosure rule.

Tobacco companies label their products with warnings of the potential health hazards that could occur from smoking. Due to the fact that this is a government-mandated disclosure, it is part of the industry's compliance-based ethics.

As a manager, you have a responsibility for the unethical behavior of your employees.