Business Quiz: Ethical Behavior And Social Responsibility

1. Ethical behavior covers a ____ range of conduct than does legal behavior.

Wider

More narrow

Smaller

Less demanding

Ethical behavior covers a wider range of conduct than does legal behavior. This means that ethical behavior encompasses more actions and behaviors that are considered morally right or wrong, beyond what is strictly defined by the law. While legal behavior is limited to adhering to the laws and regulations set by society, ethical behavior goes beyond legal obligations and includes principles such as honesty, fairness, and respect for others. Thus, ethical behavior has a broader scope and encompasses a wider range of actions and choices.

Explanation

Ethical behavior covers a wider range of conduct than does legal behavior. This means that ethical behavior encompasses more actions and behaviors that are considered morally right or wrong, beyond what is strictly defined by the law. While legal behavior is limited to adhering to the laws and regulations set by society, ethical behavior goes beyond legal obligations and includes principles such as honesty, fairness, and respect for others. Thus, ethical behavior has a broader scope and encompasses a wider range of actions and choices.

2. With respect to business ethics, it can be said that "it takes two to tango." This indicated that:

Dancing around issues should be part of a firm's code of ethics

An individual's behavior is influenced by the behavior of others

Personal ethics begin at home

Management is insensitive to ethical issues

The correct answer is "an individual's behavior is influenced by the behavior of others." This statement suggests that people's ethical behavior is influenced by the actions and behavior of those around them. It implies that individuals are more likely to engage in ethical behavior if they observe others doing the same. This highlights the importance of setting a positive example and fostering an ethical culture within an organization.

Explanation

The correct answer is "an individual's behavior is influenced by the behavior of others." This statement suggests that people's ethical behavior is influenced by the actions and behavior of those around them. It implies that individuals are more likely to engage in ethical behavior if they observe others doing the same. This highlights the importance of setting a positive example and fostering an ethical culture within an organization.

3. Which of the following reflects the desire of a manager to achieve a "win-win" relationship in dealing with others?

Is it legal?

Is it balanced?

How will it make me feel about myself?

How can I benefit at the expense of others?

The desire to achieve a "win-win" relationship in dealing with others reflects a manager's intention to find a fair and equitable solution that benefits all parties involved. By asking if it is balanced, the manager is considering the needs and interests of both themselves and others, ensuring that the outcome is not one-sided or unfair. This approach promotes cooperation, collaboration, and mutual respect, fostering positive relationships and effective teamwork.

Explanation

The desire to achieve a "win-win" relationship in dealing with others reflects a manager's intention to find a fair and equitable solution that benefits all parties involved. By asking if it is balanced, the manager is considering the needs and interests of both themselves and others, ensuring that the outcome is not one-sided or unfair. This approach promotes cooperation, collaboration, and mutual respect, fostering positive relationships and effective teamwork.

4. When the actions of management appear indifferent or insensitive to ethical concerns, the likely results would include:

Reduced employee turnover

Improved manager morale

Reduced lawsuits

Mistrust between workers and management

When the actions of management appear indifferent or insensitive to ethical concerns, it is likely to result in mistrust between workers and management. This is because employees may feel that their concerns are not being taken seriously or that management does not prioritize ethical behavior. This lack of trust can lead to a breakdown in communication, decreased employee morale, and a negative work environment. It may also result in employees questioning the credibility and integrity of the management team.

Explanation

When the actions of management appear indifferent or insensitive to ethical concerns, it is likely to result in mistrust between workers and management. This is because employees may feel that their concerns are not being taken seriously or that management does not prioritize ethical behavior. This lack of trust can lead to a breakdown in communication, decreased employee morale, and a negative work environment. It may also result in employees questioning the credibility and integrity of the management team.

5. In an effort to help employees resis the pressure to make an unethical decision, the Johnston Petroleum Company has communicated their code of ethics statement to outsiders. Suppliers, subcontractors, distributors, and customers have been told of the firm's core values. This approach is consistent with:

An integrity-based ethics code

A compliance-based ethics code

Government regulatory mandates

Corporate philanthropy

The given answer, an integrity-based ethics code, is the most appropriate explanation for the situation described. By communicating their code of ethics statement to outsiders such as suppliers, subcontractors, distributors, and customers, the Johnston Petroleum Company is demonstrating a commitment to ethical behavior and values. An integrity-based ethics code focuses on promoting ethical conduct and values within an organization and encourages employees to make ethical decisions even in the face of pressure. This approach aligns with the company's efforts to resist the pressure to make unethical decisions and emphasizes the importance of ethical behavior in their relationships with external stakeholders.

Explanation

The given answer, an integrity-based ethics code, is the most appropriate explanation for the situation described. By communicating their code of ethics statement to outsiders such as suppliers, subcontractors, distributors, and customers, the Johnston Petroleum Company is demonstrating a commitment to ethical behavior and values. An integrity-based ethics code focuses on promoting ethical conduct and values within an organization and encourages employees to make ethical decisions even in the face of pressure. This approach aligns with the company's efforts to resist the pressure to make unethical decisions and emphasizes the importance of ethical behavior in their relationships with external stakeholders.

6. A(n) ______-based ethics code emphasizes the prevention of unlawful behavior by penalizing wrongdoers.

Legal

Responsibility

Compliance

Integrity

A compliance-based ethics code focuses on ensuring that individuals adhere to laws and regulations, and aims to prevent any illegal behavior by imposing penalties on those who engage in wrongdoing. This approach emphasizes the importance of following legal requirements and holding individuals accountable for their actions.

Explanation

A compliance-based ethics code focuses on ensuring that individuals adhere to laws and regulations, and aims to prevent any illegal behavior by imposing penalties on those who engage in wrongdoing. This approach emphasizes the importance of following legal requirements and holding individuals accountable for their actions.

7. An ethical dilemma describes a situation where you must:

Treat someone unfairly

Choose between qually unsatisfactory alternatives

Choose between a correct and an incorrect option

Balance the concerns of profit and legality

The correct answer is "choose between equally unsatisfactory alternatives." An ethical dilemma occurs when you are faced with a situation where there are no ideal or satisfactory options to choose from. In such cases, you must make a decision that may not fully address the ethical concerns or may have negative consequences, but it is necessary to choose the lesser of two undesirable outcomes. This choice between equally unsatisfactory alternatives highlights the challenging nature of ethical dilemmas and the need to carefully consider the ethical implications of our actions.

Explanation

The correct answer is "choose between equally unsatisfactory alternatives." An ethical dilemma occurs when you are faced with a situation where there are no ideal or satisfactory options to choose from. In such cases, you must make a decision that may not fully address the ethical concerns or may have negative consequences, but it is necessary to choose the lesser of two undesirable outcomes. This choice between equally unsatisfactory alternatives highlights the challenging nature of ethical dilemmas and the need to carefully consider the ethical implications of our actions.

8. An important point to be made in the discussion of corporate ethics is:

"when in Rome, do as the Romans"

Follow the laws of the community

The appearance of wrongdoing can be harmful

This is a trendy fad that won't last long

The explanation for the given answer is that in the discussion of corporate ethics, it is important to consider the perception of wrongdoing. Even if an action is legal or morally acceptable in a certain community or culture, it may still appear unethical to others. The appearance of wrongdoing can damage a company's reputation, leading to loss of trust from stakeholders, customers, and the public. Therefore, it is crucial for corporations to not only follow the laws of the community but also consider the potential harm that can arise from the mere appearance of unethical behavior.

Explanation

The explanation for the given answer is that in the discussion of corporate ethics, it is important to consider the perception of wrongdoing. Even if an action is legal or morally acceptable in a certain community or culture, it may still appear unethical to others. The appearance of wrongdoing can damage a company's reputation, leading to loss of trust from stakeholders, customers, and the public. Therefore, it is crucial for corporations to not only follow the laws of the community but also consider the potential harm that can arise from the mere appearance of unethical behavior.

9. Several outside groups monitor the Metro Chemical Corporation to see how well the firm enforces their ethical and social responsibility policies. Who of the following would not be likely to be among the "watchdog" groups?

The financial officer of a church with funds invested in the chemical company

An anti-government radical with intentions of overthrowing the establishment

A student in environmental engineering attending a local college

The president of the union representing the workers at the chemical company

An anti-government radical focused on overthrowing the establishment is unlikely to monitor a chemical corporation's ethical policies, as their main goals do not align with typical watchdog activities concerned with corporate ethics. Other listed individuals have direct interests related to the company's ethical and social practices. Correct answer: (B).

Explanation

An anti-government radical focused on overthrowing the establishment is unlikely to monitor a chemical corporation's ethical policies, as their main goals do not align with typical watchdog activities concerned with corporate ethics. Other listed individuals have direct interests related to the company's ethical and social practices. Correct answer: (B).

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

Customers

Investors

Employees

Society

The explanation for the given answer is that when a firm prioritizes doing well financially, it can generate profits and returns for its investors. By prioritizing the interests of investors, the firm can ensure their financial success and stability. This allows the firm to have the resources and capabilities to engage in social responsibility initiatives and contribute positively to society. Therefore, by focusing on the interests of investors, the firm can ultimately fulfill its responsibility to society.

Explanation

The explanation for the given answer is that when a firm prioritizes doing well financially, it can generate profits and returns for its investors. By prioritizing the interests of investors, the firm can ensure their financial success and stability. This allows the firm to have the resources and capabilities to engage in social responsibility initiatives and contribute positively to society. Therefore, by focusing on the interests of investors, the firm can ultimately fulfill its responsibility to society.