Business Quiz: Ethical Behavior And Social Responsibility

1.

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

A.

Wider
B.

More narrow
C.

Smaller
D.

Less demanding

Correct Answer
A. Wider

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.

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2.

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

A.

Is it legal?
B.

Is it balanced?
C.

How will it make me feel about myself?
D.

How can I benefit at the expense of others?

Correct Answer
B. Is it balanced?

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.

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3.

An ethical dilemma describes a situation where you must:

A.

Treat someone unfairly
B.

Choose between qually unsatisfactory alternatives
C.

Choose between a correct and an incorrect option
D.

Balance the concerns of profit and legality

Correct Answer
B. Choose between qually unsatisfactory alternatives

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.

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4.

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

A.

Reduced employee turnover
B.

Improved manager morale
C.

Reduced lawsuits
D.

Mistrust between workers and management

Correct Answer
D. Mistrust between workers and management

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.

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5.

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

A.

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

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

Personal ethics begin at home
D.

Management is insensitive to ethical issues

Correct Answer
B. An individual's behavior is influenced by the behavior of others

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.

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6.

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

A.

Legal
B.

Responsibility
C.

Compliance
D.

Integrity

Correct Answer
C. Compliance

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.

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7.

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:

A.

An integrity-based ethics code
B.

A compliance-based ethics code
C.

Government regulatory mandates
D.

Corporate philanthropy

Correct Answer
A. An integrity-based ethics code

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.

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8.

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:

A.

Customers
B.

Investors
C.

Employees
D.

Society

Correct Answer
B. Investors

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.

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9.

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

A.

"when in Rome, do as the Romans"
B.

Follow the laws of the community
C.

The appearance of wrongdoing can be harmful
D.

This is a trendy fad that won't last long

Correct Answer
C. The appearance of wrongdoing can be harmful

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.

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10.

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?

A.

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

An anti-government radical with intentions of overthrowing the establishment
C.

A student in environmental engineering attending a local college
D.

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

Correct Answer
B. An anti-government radical with intentions of overthrowing the establishment

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).

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