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Exam 4: Demanding Ethical and Socially Responsible Behavior

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Question 41

Multiple Choice

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One strategy guaranteed to displease your customers is to:

A) provide a quality product at only a fair price.
B) focus on cost and quality control systems within your organization.
C) practice deception regarding product safety issues.
D) shift the production of goods to foreign facilities and layoff U.S. workers.

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

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Question 42

True/False

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Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone for unauthorized personal phone calls. Fred misrepresents his product to a potential customer. All of these are examples of unethical behavior.

A) True
B) False

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Question 43

Multiple Choice

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

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

Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales.

When managers disregard ethical concerns, the likely result is:

Ethical behavior covers a range of conduct than legal behavior.

In the Reaching Beyond our Borders box titled, "Ethical Culture Clash", the story demonstrates the many ethical similarities between North and South American business. This is fortunate for Motorola and other large electronics firms who do business south of the U.S. border. They can depend on their subsidiary firms to have no problems when implementing U.S. company employee policies.

A common form of cheating in schools today is plagiarizing material from the Internet.

To be effective, an organization's code of ethics needs to be communicated to outsiders such as suppliers, subcontractors, and customers.

As a result of pressure from business lobbyists, Congress failed to pass legislation protecting whistleblowers.

Out-Tel, a computer chip manufacturer, knowingly sold defective chips and failed to notify customers of the potential problems. When the problem became public knowledge, the firm's stock price fell dramatically. This illustrates the value that investors place on the ethical behavior of businesses.

Two recent studies found a strong correlation between academic dishonesty among undergraduates and dishonesty at work.

The Foreign Corrupt Practices Act deals with:

Which of the following questions can help us avoid a decision that would injure our self-esteem?

Fresh Walls Paint Company promotes its products as nontoxic and made from natural, organic substances that are safe for all persons including those with asthma and other lung conditions. In order to live up to customer expectations, it must walk the walk and not just talk the talk! If consumers learn that Fresh Walls' paints do not meet their expectations, their reaction is likely to tarnish the company's image.

One responsibility of business is to satisfy customers by offering them goods and services with real value.

Legal behavior is a first step toward ethical behavior.

Punishing business leaders who have broken the law may help restore trust in the free-market system and leaders in general.

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