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Exam 4: Demanding Ethical and Socially Responsible Behavior

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Question 131

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Obeying the law is ________ ethical behavior.

A) essentially the same as
B) the first step towards
C) the opposite of
D) unlikely to lead to

E) A) and B)
F) All of the above

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Question 132

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The Enron scandal revealed ________ corporate behavior.

A) legal but unethical
B) predictable
C) illegal
D) ethical

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

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Question 133

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When Angela graduated with a degree in computer science and started her software company,she posted a sign that read,"This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day,this demonstrated:

Ethical behavior involves the clear and easy choice of right and wrong actions towards others.

On her company website,Ali asks customers who fill orders to place a check-mark in a box if they are willing to let her share their information with her suppliers.By asking this question,Ali is addressing privacy issues,and covering her actions in case someone should try to sue her for sharing private information.She is responding to the question,"Are my proposed actions legal?" Asking the question,"Are my proposed actions legal?" is the first step toward addressing ethical concerns.By asking and answering this question,the business owner takes the first step in determining if the action is acceptable behavior.

Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales. Increased pressure on employees to meet sales quotas can create an environment where management is insensitive to ethical considerations.The text presents an example of this issue with Sears,Roebuck & Company.

International issues of social responsibility and ethical behavior are:

A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics code. Compliance-based ethics codes emphasize the prevention of unlawful behavior by increasing control and by penalizing wrongdoers.

Ethical behavior focuses on treating others fairly. Ethical behavior focuses on proper relations with other people.An ethical person will treat others with honesty and sincerity.Perhaps the essence of this behavior is The Golden Rule,"do unto to others as you would have them do unto you."

Environmental quality is considered to be a public good.This means that:

Corporate values are:

U.S.businesses consider The Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.

According to the Legal Briefcase box,"Paying the Price",corporate executives who commit fraud,securities fraud,and other business crimes are sentenced to fines,but not to jail because these acts are not considered to be criminal convictions. Many business leaders who have run afoul of the law are serving long sentences in prison.The most recent was Bernie Madoff who was sentenced to 150 years in prison for his illegal Ponzi scheme that bilked investors out of billions of dollars.

The Enron scandal illustrates the difference between unethical behavior and illegal behavior.

A social audit measures a firm's progress in the area of worker-management relations.

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. Winning at the expense of others is not a balanced decision.The health of our relationships with our co-workers is very important.We should avoid major imbalances and strive to make decisions that benefit all employees.

Moral behavior refers to behavior that is accepted by society as right versus wrong. Ethics defines the standards of moral behavior,or the attempt to live by certain values and standards of conduct accepted by society as right rather than wrong.

The Motorola story told in the Reaching Beyond our Borders box demonstrates how a corporation's perception of ethical behavior may not be everyone's reality. The Motorola story demonstrates how one company's belief that their employee policies are reasonable may not span continents and across borders.The employee wanted the same housing allowance as other employees who live and work in South America,but did not want to spend the entire housing allowance on his living quarters,as stipulated by the employer,Motorola.

Many individuals today believe that ethical behavior is determined by what is best for them at the time.This is an example of:

In an effort to promote the importance of a valuable education,the faculty and staff at the local community college are trained to ask each student about their career preferences,rather than suggest courses that may not benefit the student's future goals.Although it would be tempting to suggest courses just to increase the College's enrollment,employees know that it is more important to serve each student well,even if it means suggesting courses and/or degrees offered at other institutions.This approach is consistent with: