https://www.stuvia.com/
TEST BANK FOR FOUNDATIONS OF
b b b b b
BUSINESS 5TH EDITION BY PRIDE
b b b b
,https://www.stuvia.com/
Chapter 02 Being Ethical and Socially Responsible
b b b b b b
ESSAY
1. Definebbusinessbethics.
GradersbInfob:
Ethicsbisbthebstudybofbrightbandbwrongbandbofbthebmoralitybofbthebchoicesbindividualsbmake.bBusinessbethics,bmorebsp
ecificallybdefined,bisbthebapplicationbofbmoralbstandardsbtobbusinessbsituations.
2. Whybarebfairnessbandbhonestybinbbusinessbimportantbethicalbconcerns?bGivebexamples.
GradersbInfob:
Fairnessbandbhonestybinbbusinessbarebconsideredbasbtwobimportantbethicalbconcerns.bInbadditionbtobobeyingballblaw
sbandbregulations,bbusinesspeoplebarebexpectedbtobrefrainbfrombknowinglybdeceiving,bmisrepresenting,borbintimida
tingbothers.bThebPricewaterhouseCoopersbLLPbandbAnderson'sbArkbandbAssociatesbcasesbprovebthatbtheblackbofbfair
nessbandbhonestybalsobisbanbexpensivebproposition.
3. Whatbarebthebmajorbethicalbissuesbbusinesspeoplebface?
GradersbInfob:
Challengesbtobbeingbfairbandbhonest,btemptationsbofbplacingbpersonalbwelfarebabovebthebwelfarebofbtheborganizatio
n,bandbconflictsbofbinterestbarebamongbcommonbethicalbissuesbthatbbusinesspeoplebmaybregularlybface.bBusinessbco
mmunications,bespeciallybadvertising,bcanbalsobpresentbethicalbquestionsbforbemployeesbwithinborganizations.
4. Whatbarebthebthreebmajorbsetsbofbfactorsbbelievedbtobaffectbethicalbbehaviorbinbanborganization?
GradersbInfob:
Individualbfactorsbsuchbasbindividualbknowledgebofbissues,bpersonalbvalues,bandbpersonalbgoalsbinfluencebtheblevelb
ofbethicalbbehaviorbinbanborganization.bSocialbfactorsbsuchbasbculturalbnorms,bactionsbandbdecisionsbofbco-
workers,bsignificantbothers,bandbthebusebofbthebInternetbaffectbethicalbbehavior.bAlso,bthebamountbofbfreedombanbo
rganizationbgivesbanbemployeebtobbehavebunethicallybaffectsbethicalbbehaviorbinbanborganization.
5. Whatbarebsomebofbthebsocialbfactorsbthatbaffectbethicalbdecisions?
GradersbInfob:
,https://www.stuvia.com/
Culturalbnormsbisbanbimportantbfactorbinbconsideringbethicalbdecisionbmaking.bThebactionsbandbdecisionsbofbco-
bworkersbimpactbotherbemployees'bsensebofbbusinessbethics.bSignificantbothers-spouses,bfriends,bandbrelatives--
alsobcanbaffectbanbemployee'sbperceptionbofbethicalbandbunethicalbdecisionsbinbthebworkplace.bAlso,bthebusebofbthebI
nternetbbybemployeesbinbabbusinessbsettingbisbalsobanbimportantbsocialbfactorbthatbaffectsbethicalbdecisionbmaking.
6. Howbcanbthebgovernmentbencouragebethicalbbehavior?bGivebanbexample.
GradersbInfob:
Thebgovernmentbencouragesbethicalbbehaviorbbyblegislatingbregulations.bOnebofbthebimportantblandmarkbregulatio
nsbthatbthebgovernmentbhasbcreatedbisbthebSarbanes-
OxleybActbofb2002bwhichbdealsbwithbcorporatebresponsibility,bconflictsbofbinterest,bandbcorporatebaccountability.
7. Definebabcodebofbethics.bDobcodesbcoverbeverybbusinessbsituation?
GradersbInfob:
Abcodebofbethicsbisbabwrittenbguidebtobacceptablebandbethicalbbehaviorbinbanborganization.bAbcodeboutlinesbuniformb
policies,bstandards,bandbpunishmentsbforbviolations.bAbcodebofbethicsbcannotbpossiblybcoverbeverybsituationbthatbmi
ghtbarisebinbanborganization.bAnbenvironmentbinbwhichbemployeesbrecognizebthebimportancebofbcomplyingbwithbtheb
writtenbcodebmustbalsobbebinbplace.
8. Whatbmightbbebthebpersonalbandbsocialbconsequencesbofbwhistle-blowingbwithinbone'sbownbfirm?
GradersbInfob:
Whistle-
blowing,bthebpracticebofbinformingbthebpressborbgovernmentbofficialsbaboutbunethicalbpracticesbwithinbone'sborgan
ization,bcouldbimpactbthebemployeebwhobblewbthebwhistlebthroughblossbofbhisborbherbjobbevenbthoughbthebSarbane
s-OxleybActbofb2002bprotectsbwhistle-
blowersbwhobreportbcorporatebmisconduct.bRetaliationbbybexecutivesbisbabcriminalboffensebbut,bnevertheless,bretal
iationbdoesboccur.
9. Whatbarebabfewbexamplesbofbcompaniesbactingbsociallybresponsible?
GradersbInfob:
Studentbanswersbwillbvary.bSomebpossiblebanswersbincludebWalmart'sbdonationbofb$20bmillionbinbcash,b10
0btruckloadsbofbfreebmerchandise,bandbfoodbforb100,000bmealsbafterbHurricanebKatrina,bGeneralbMills'
foundationbthatbawardsbmillionsbofbdollarsbinbgrantsbtobcommunityborganizations,bandbDell'sbfoundationbthatbsuppo
rtsbabwidebrangebofbprogramsbthatbbenefitbchildrenbinbDell'sbprincipalbU.S.blocations.
10. Definebthebdoctrinebofbcaveatbemptor.
GradersbInfob:
,https://www.stuvia.com/
CaveatbemptorbisbabLatinbphrasebmeaningb"letbthebbuyerbbeware."bDuringbthebearlyb1900s,bbusinessbactedbprimarilyb
withoutboversightbbybgovernmentbregulationbandbconsumersbwerebleftbtobtheirbownbdevicesbtobdeterminebifbabprod
uctborbservicebwasbwhatbwasbexpectedbandbwhatbwasbportrayed.
11. Howbdoesbthebeconomicbmodelbofbsocialbresponsibilitybdifferbfrombthebsocioeconomicbmodelbofbsocial
bresponsibility?
GradersbInfob:
Thebeconomicbmodelbofbsocialbresponsibilitybascribesbthatbsocietybbenefitsbmostbwhenbbusinessbisbleftbalonebtobpro
ducebandbmarketbprofitablebproductsbthatbsocietybneeds.bThisbcontrastsbsharplybwithbthebsocioeconomicbmodelbofbs
ocialbresponsibilitybwhichbplacesbemphasisbnotbonlybonbprofitsbbutbalsobonbthebimpactbofbbusinessbdecisionsbonbsoci
ety.
12. Whatbwouldbproponentsbofbthebsocioeconomicbmodelbarguebtobsupportbtheirbposition?
GradersbInfob:
Sincebabcorporationbisbabcreationbofbsocietybandbisbdeemedbabpartbofbsociety,babcorporationbmustbactbasbabgoodbcitiz
enborbsocietybhasbthebrightbtobdemandbchangesbbybthatbentity.bBusinessesbhavebabresponsibilitybtobnotbonlybstockho
ldersbbutbalsobtobcustomers,bemployees,bsuppliers,bandbthebgeneralbpublic.
13. Whatbwouldbopponentsbofbthebsocioeconomicbmodelbarguebtobsupportbtheirbposition?
GradersbInfob:
Businessesbarebmostbfunctionalbandbsuccessfulbandbofbmostbbenefitbtobsocietybwhenbleftbalonebtobproducebandbmar
ketbprofitablebproductsbandbservicesbthatbsocietybneedsbandbwants.bSocialbresponsibilitybisbsomeonebelse'sbjobbandbi
sbnotbabprimarybresponsibilitybofbabbusiness.bAbfirmbisblegallybobligatedbtobactbinbthebeconomicbinterestbofbitsbstockh
oldersbandbsuccessfulbbusinessesbpaybtaxesbthatbarebusedbtobmeetbthebneedsbofbsociety.
14. Definebconsumerism.bHowbhavebthebrightsbofbconsumersbchangedbsinceb1930?
GradersbInfob:
Consumerismbconsistsbofballbactivitiesbundertakenbtobprotectbthebrightsbofbconsumers.bThebthreebprimarybcategories
bofbthebconsumerbmovementbincludebenvironmentalbprotection,bproductbperformancebandbsafety,bandbinformation
bdisclosure.bBeforebtheb1930s,bworkers,bconsumers,bandbgovernmentbhadbveryblittlebinfluencebonbbusinessbactivities
.bConsumerismbsincebtheb1930sbhasbshownbconsumersbthatbtheybdobhavebrightsbandbcanbexpectbbusinessesbtobmeet
benvironmental,bsafety,basbwellbasbotherbexpectations.
15. Explainbthebsixbbasicbrightsbofbconsumers.
GradersbInfob:
TEST BANK FOR FOUNDATIONS OF
b b b b b
BUSINESS 5TH EDITION BY PRIDE
b b b b
,https://www.stuvia.com/
Chapter 02 Being Ethical and Socially Responsible
b b b b b b
ESSAY
1. Definebbusinessbethics.
GradersbInfob:
Ethicsbisbthebstudybofbrightbandbwrongbandbofbthebmoralitybofbthebchoicesbindividualsbmake.bBusinessbethics,bmorebsp
ecificallybdefined,bisbthebapplicationbofbmoralbstandardsbtobbusinessbsituations.
2. Whybarebfairnessbandbhonestybinbbusinessbimportantbethicalbconcerns?bGivebexamples.
GradersbInfob:
Fairnessbandbhonestybinbbusinessbarebconsideredbasbtwobimportantbethicalbconcerns.bInbadditionbtobobeyingballblaw
sbandbregulations,bbusinesspeoplebarebexpectedbtobrefrainbfrombknowinglybdeceiving,bmisrepresenting,borbintimida
tingbothers.bThebPricewaterhouseCoopersbLLPbandbAnderson'sbArkbandbAssociatesbcasesbprovebthatbtheblackbofbfair
nessbandbhonestybalsobisbanbexpensivebproposition.
3. Whatbarebthebmajorbethicalbissuesbbusinesspeoplebface?
GradersbInfob:
Challengesbtobbeingbfairbandbhonest,btemptationsbofbplacingbpersonalbwelfarebabovebthebwelfarebofbtheborganizatio
n,bandbconflictsbofbinterestbarebamongbcommonbethicalbissuesbthatbbusinesspeoplebmaybregularlybface.bBusinessbco
mmunications,bespeciallybadvertising,bcanbalsobpresentbethicalbquestionsbforbemployeesbwithinborganizations.
4. Whatbarebthebthreebmajorbsetsbofbfactorsbbelievedbtobaffectbethicalbbehaviorbinbanborganization?
GradersbInfob:
Individualbfactorsbsuchbasbindividualbknowledgebofbissues,bpersonalbvalues,bandbpersonalbgoalsbinfluencebtheblevelb
ofbethicalbbehaviorbinbanborganization.bSocialbfactorsbsuchbasbculturalbnorms,bactionsbandbdecisionsbofbco-
workers,bsignificantbothers,bandbthebusebofbthebInternetbaffectbethicalbbehavior.bAlso,bthebamountbofbfreedombanbo
rganizationbgivesbanbemployeebtobbehavebunethicallybaffectsbethicalbbehaviorbinbanborganization.
5. Whatbarebsomebofbthebsocialbfactorsbthatbaffectbethicalbdecisions?
GradersbInfob:
,https://www.stuvia.com/
Culturalbnormsbisbanbimportantbfactorbinbconsideringbethicalbdecisionbmaking.bThebactionsbandbdecisionsbofbco-
bworkersbimpactbotherbemployees'bsensebofbbusinessbethics.bSignificantbothers-spouses,bfriends,bandbrelatives--
alsobcanbaffectbanbemployee'sbperceptionbofbethicalbandbunethicalbdecisionsbinbthebworkplace.bAlso,bthebusebofbthebI
nternetbbybemployeesbinbabbusinessbsettingbisbalsobanbimportantbsocialbfactorbthatbaffectsbethicalbdecisionbmaking.
6. Howbcanbthebgovernmentbencouragebethicalbbehavior?bGivebanbexample.
GradersbInfob:
Thebgovernmentbencouragesbethicalbbehaviorbbyblegislatingbregulations.bOnebofbthebimportantblandmarkbregulatio
nsbthatbthebgovernmentbhasbcreatedbisbthebSarbanes-
OxleybActbofb2002bwhichbdealsbwithbcorporatebresponsibility,bconflictsbofbinterest,bandbcorporatebaccountability.
7. Definebabcodebofbethics.bDobcodesbcoverbeverybbusinessbsituation?
GradersbInfob:
Abcodebofbethicsbisbabwrittenbguidebtobacceptablebandbethicalbbehaviorbinbanborganization.bAbcodeboutlinesbuniformb
policies,bstandards,bandbpunishmentsbforbviolations.bAbcodebofbethicsbcannotbpossiblybcoverbeverybsituationbthatbmi
ghtbarisebinbanborganization.bAnbenvironmentbinbwhichbemployeesbrecognizebthebimportancebofbcomplyingbwithbtheb
writtenbcodebmustbalsobbebinbplace.
8. Whatbmightbbebthebpersonalbandbsocialbconsequencesbofbwhistle-blowingbwithinbone'sbownbfirm?
GradersbInfob:
Whistle-
blowing,bthebpracticebofbinformingbthebpressborbgovernmentbofficialsbaboutbunethicalbpracticesbwithinbone'sborgan
ization,bcouldbimpactbthebemployeebwhobblewbthebwhistlebthroughblossbofbhisborbherbjobbevenbthoughbthebSarbane
s-OxleybActbofb2002bprotectsbwhistle-
blowersbwhobreportbcorporatebmisconduct.bRetaliationbbybexecutivesbisbabcriminalboffensebbut,bnevertheless,bretal
iationbdoesboccur.
9. Whatbarebabfewbexamplesbofbcompaniesbactingbsociallybresponsible?
GradersbInfob:
Studentbanswersbwillbvary.bSomebpossiblebanswersbincludebWalmart'sbdonationbofb$20bmillionbinbcash,b10
0btruckloadsbofbfreebmerchandise,bandbfoodbforb100,000bmealsbafterbHurricanebKatrina,bGeneralbMills'
foundationbthatbawardsbmillionsbofbdollarsbinbgrantsbtobcommunityborganizations,bandbDell'sbfoundationbthatbsuppo
rtsbabwidebrangebofbprogramsbthatbbenefitbchildrenbinbDell'sbprincipalbU.S.blocations.
10. Definebthebdoctrinebofbcaveatbemptor.
GradersbInfob:
,https://www.stuvia.com/
CaveatbemptorbisbabLatinbphrasebmeaningb"letbthebbuyerbbeware."bDuringbthebearlyb1900s,bbusinessbactedbprimarilyb
withoutboversightbbybgovernmentbregulationbandbconsumersbwerebleftbtobtheirbownbdevicesbtobdeterminebifbabprod
uctborbservicebwasbwhatbwasbexpectedbandbwhatbwasbportrayed.
11. Howbdoesbthebeconomicbmodelbofbsocialbresponsibilitybdifferbfrombthebsocioeconomicbmodelbofbsocial
bresponsibility?
GradersbInfob:
Thebeconomicbmodelbofbsocialbresponsibilitybascribesbthatbsocietybbenefitsbmostbwhenbbusinessbisbleftbalonebtobpro
ducebandbmarketbprofitablebproductsbthatbsocietybneeds.bThisbcontrastsbsharplybwithbthebsocioeconomicbmodelbofbs
ocialbresponsibilitybwhichbplacesbemphasisbnotbonlybonbprofitsbbutbalsobonbthebimpactbofbbusinessbdecisionsbonbsoci
ety.
12. Whatbwouldbproponentsbofbthebsocioeconomicbmodelbarguebtobsupportbtheirbposition?
GradersbInfob:
Sincebabcorporationbisbabcreationbofbsocietybandbisbdeemedbabpartbofbsociety,babcorporationbmustbactbasbabgoodbcitiz
enborbsocietybhasbthebrightbtobdemandbchangesbbybthatbentity.bBusinessesbhavebabresponsibilitybtobnotbonlybstockho
ldersbbutbalsobtobcustomers,bemployees,bsuppliers,bandbthebgeneralbpublic.
13. Whatbwouldbopponentsbofbthebsocioeconomicbmodelbarguebtobsupportbtheirbposition?
GradersbInfob:
Businessesbarebmostbfunctionalbandbsuccessfulbandbofbmostbbenefitbtobsocietybwhenbleftbalonebtobproducebandbmar
ketbprofitablebproductsbandbservicesbthatbsocietybneedsbandbwants.bSocialbresponsibilitybisbsomeonebelse'sbjobbandbi
sbnotbabprimarybresponsibilitybofbabbusiness.bAbfirmbisblegallybobligatedbtobactbinbthebeconomicbinterestbofbitsbstockh
oldersbandbsuccessfulbbusinessesbpaybtaxesbthatbarebusedbtobmeetbthebneedsbofbsociety.
14. Definebconsumerism.bHowbhavebthebrightsbofbconsumersbchangedbsinceb1930?
GradersbInfob:
Consumerismbconsistsbofballbactivitiesbundertakenbtobprotectbthebrightsbofbconsumers.bThebthreebprimarybcategories
bofbthebconsumerbmovementbincludebenvironmentalbprotection,bproductbperformancebandbsafety,bandbinformation
bdisclosure.bBeforebtheb1930s,bworkers,bconsumers,bandbgovernmentbhadbveryblittlebinfluencebonbbusinessbactivities
.bConsumerismbsincebtheb1930sbhasbshownbconsumersbthatbtheybdobhavebrightsbandbcanbexpectbbusinessesbtobmeet
benvironmental,bsafety,basbwellbasbotherbexpectations.
15. Explainbthebsixbbasicbrightsbofbconsumers.
GradersbInfob:
