TEST BANK FOR FOUNDATIONS OF
k k k k k
BUSINESS 5TH EDITION BY PRIDE
k k k k
,Chapter 02 Being Ethical and Socially Responsible
k k k k k k
ESSAY
1. Definekbusinesskethics.
GraderskInfok:
Ethicskiskthekstudykofkrightkandkwrongkandkofkthekmoralitykofkthekchoiceskindividualskmake.kBusinesskethics,kmorekspe
cificallykdefined,kiskthekapplicationkofkmoralkstandardsktokbusinessksituations.
2. Whykarekfairnesskandkhonestykinkbusinesskimportantkethicalkconcerns?kGivekexamples.
GraderskInfok:
Fairnesskandkhonestykinkbusinesskarekconsideredkasktwokimportantkethicalkconcerns.kInkadditionktokobeyingkallklawsk
andkregulations,kbusinesspeoplekarekexpectedktokrefrainkfromkknowinglykdeceiving,kmisrepresenting,korkintimidatin
gkothers.kThekPricewaterhouseCooperskLLPkandkAnderson'skArkkandkAssociateskcaseskprovekthatktheklackkofkfairness
kandkhonestykalsokiskankexpensivekproposition.
3. Whatkarekthekmajorkethicalkissueskbusinesspeoplekface?
GraderskInfok:
Challengesktokbeingkfairkandkhonest,ktemptationskofkplacingkpersonalkwelfarekabovekthekwelfarekofkthekorganization
,kandkconflictskofkinterestkarekamongkcommonkethicalkissueskthatkbusinesspeoplekmaykregularlykface.kBusinesskcom
munications,kespeciallykadvertising,kcankalsokpresentkethicalkquestionskforkemployeeskwithinkorganizations.
4. Whatkarekthekthreekmajorksetskofkfactorskbelievedktokaffectkethicalkbehaviorkinkankorganization?
GraderskInfok:
Individualkfactorsksuchkaskindividualkknowledgekofkissues,kpersonalkvalues,kandkpersonalkgoalskinfluencektheklevelko
fkethicalkbehaviorkinkankorganization.kSocialkfactorsksuchkaskculturalknorms,kactionskandkdecisionskofkco-
workers,ksignificantkothers,kandkthekusekofkthekInternetkaffectkethicalkbehavior.kAlso,kthekamountkofkfreedomkankor
ganizationkgiveskankemployeektokbehavekunethicallykaffectskethicalkbehaviorkinkankorganization.
5. Whatkareksomekofktheksocialkfactorskthatkaffectkethicalkdecisions?
GraderskInfok:
,Culturalknormskiskankimportantkfactorkinkconsideringkethicalkdecisionkmaking.kThekactionskandkdecisionskofkco-
kworkerskimpactkotherkemployees'ksensekofkbusinesskethics.kSignificantkothers-spouses,kfriends,kandkrelatives--
alsokcankaffectkankemployee'skperceptionkofkethicalkandkunethicalkdecisionskinkthekworkplace.kAlso,kthekusekofkthekIn
ternetkbykemployeeskinkakbusinessksettingkiskalsokankimportantksocialkfactorkthatkaffectskethicalkdecisionkmaking.
6. Howkcankthekgovernmentkencouragekethicalkbehavior?kGivekankexample.
GraderskInfok:
Thekgovernmentkencourageskethicalkbehaviorkbyklegislatingkregulations.kOnekofkthekimportantklandmarkkregulation
skthatkthekgovernmentkhaskcreatedkiskthekSarbanes-
OxleykActkofk2002kwhichkdealskwithkcorporatekresponsibility,kconflictskofkinterest,kandkcorporatekaccountability.
7. Definekakcodekofkethics.kDokcodeskcoverkeverykbusinessksituation?
GraderskInfok:
Akcodekofkethicskiskakwrittenkguidektokacceptablekandkethicalkbehaviorkinkankorganization.kAkcodekoutlineskuniformkpo
licies,kstandards,kandkpunishmentskforkviolations.kAkcodekofkethicskcannotkpossiblykcoverkeveryksituationkthatkmightk
arisekinkankorganization.kAnkenvironmentkinkwhichkemployeeskrecognizekthekimportancekofkcomplyingkwithkthekwritt
enkcodekmustkalsokbekinkplace.
8. Whatkmightkbekthekpersonalkandksocialkconsequenceskofkwhistle-blowingkwithinkone'skownkfirm?
GraderskInfok:
Whistle-
blowing,kthekpracticekofkinformingkthekpresskorkgovernmentkofficialskaboutkunethicalkpracticeskwithinkone'skorganiz
ation,kcouldkimpactkthekemployeekwhokblewkthekwhistlekthroughklosskofkhiskorkherkjobkevenkthoughkthekSarbanes-
OxleykActkofk2002kprotectskwhistle-
blowerskwhokreportkcorporatekmisconduct.kRetaliationkbykexecutiveskiskakcriminalkoffensekbut,knevertheless,kretali
ationkdoeskoccur.
9. Whatkarekakfewkexampleskofkcompanieskactingksociallykresponsible?
GraderskInfok:
Studentkanswerskwillkvary.kSomekpossiblekanswerskincludekWalmart'skdonationkofk$20kmillionkinkcash,k10
0ktruckloadskofkfreekmerchandise,kandkfoodkfork100,000kmealskafterkHurricanekKatrina,kGeneralkMills'
foundationkthatkawardskmillionskofkdollarskinkgrantsktokcommunitykorganizations,kandkDell'skfoundationkthatksupport
skakwidekrangekofkprogramskthatkbenefitkchildrenkinkDell'skprincipalkU.S.klocations.
10. Definekthekdoctrinekofkcaveatkemptor.
GraderskInfok:
, CaveatkemptorkiskakLatinkphrasekmeaningk"letkthekbuyerkbeware."kDuringkthekearlyk1900s,kbusinesskactedkprimarilykw
ithoutkoversightkbykgovernmentkregulationkandkconsumerskwerekleftktoktheirkownkdevicesktokdeterminekifkakproductk
orkservicekwaskwhatkwaskexpectedkandkwhatkwaskportrayed.
11. Howkdoeskthekeconomickmodelkofksocialkresponsibilitykdifferkfromktheksocioeconomickmodelkofksocialk
responsibility?
GraderskInfok:
Thekeconomickmodelkofksocialkresponsibilitykascribeskthatksocietykbenefitskmostkwhenkbusinesskiskleftkalonektokprod
ucekandkmarketkprofitablekproductskthatksocietykneeds.kThiskcontrastsksharplykwithktheksocioeconomickmodelkofksoci
alkresponsibilitykwhichkplaceskemphasisknotkonlykonkprofitskbutkalsokonkthekimpactkofkbusinesskdecisionskonksociety.
12. Whatkwouldkproponentskofktheksocioeconomickmodelkarguektoksupportktheirkposition?
GraderskInfok:
Sincekakcorporationkiskakcreationkofksocietykandkiskdeemedkakpartkofksociety,kakcorporationkmustkactkaskakgoodkcitize
nkorksocietykhaskthekrightktokdemandkchangeskbykthatkentity.kBusinesseskhavekakresponsibilityktoknotkonlykstockholde
rskbutkalsoktokcustomers,kemployees,ksuppliers,kandkthekgeneralkpublic.
13. Whatkwouldkopponentskofktheksocioeconomickmodelkarguektoksupportktheirkposition?
GraderskInfok:
Businesseskarekmostkfunctionalkandksuccessfulkandkofkmostkbenefitktoksocietykwhenkleftkalonektokproducekandkmark
etkprofitablekproductskandkserviceskthatksocietykneedskandkwants.kSocialkresponsibilitykisksomeonekelse'skjobkandkiskn
otkakprimarykresponsibilitykofkakbusiness.kAkfirmkisklegallykobligatedktokactkinkthekeconomickinterestkofkitskstockholder
skandksuccessfulkbusinesseskpayktaxeskthatkarekusedktokmeetkthekneedskofksociety.
14. Definekconsumerism.kHowkhavekthekrightskofkconsumerskchangedksincek1930?
GraderskInfok:
Consumerismkconsistskofkallkactivitieskundertakenktokprotectkthekrightskofkconsumers.kThekthreekprimarykcategoriesk
ofkthekconsumerkmovementkincludekenvironmentalkprotection,kproductkperformancekandksafety,kandkinformationkd
isclosure.kBeforekthek1930s,kworkers,kconsumers,kandkgovernmentkhadkveryklittlekinfluencekonkbusinesskactivities.kC
onsumerismksincekthek1930skhaskshownkconsumerskthatktheykdokhavekrightskandkcankexpectkbusinessesktokmeetkenv
ironmental,ksafety,kaskwellkaskotherkexpectations.
15. Explainktheksixkbasickrightskofkconsumers.
GraderskInfok:
k k k k k
BUSINESS 5TH EDITION BY PRIDE
k k k k
,Chapter 02 Being Ethical and Socially Responsible
k k k k k k
ESSAY
1. Definekbusinesskethics.
GraderskInfok:
Ethicskiskthekstudykofkrightkandkwrongkandkofkthekmoralitykofkthekchoiceskindividualskmake.kBusinesskethics,kmorekspe
cificallykdefined,kiskthekapplicationkofkmoralkstandardsktokbusinessksituations.
2. Whykarekfairnesskandkhonestykinkbusinesskimportantkethicalkconcerns?kGivekexamples.
GraderskInfok:
Fairnesskandkhonestykinkbusinesskarekconsideredkasktwokimportantkethicalkconcerns.kInkadditionktokobeyingkallklawsk
andkregulations,kbusinesspeoplekarekexpectedktokrefrainkfromkknowinglykdeceiving,kmisrepresenting,korkintimidatin
gkothers.kThekPricewaterhouseCooperskLLPkandkAnderson'skArkkandkAssociateskcaseskprovekthatktheklackkofkfairness
kandkhonestykalsokiskankexpensivekproposition.
3. Whatkarekthekmajorkethicalkissueskbusinesspeoplekface?
GraderskInfok:
Challengesktokbeingkfairkandkhonest,ktemptationskofkplacingkpersonalkwelfarekabovekthekwelfarekofkthekorganization
,kandkconflictskofkinterestkarekamongkcommonkethicalkissueskthatkbusinesspeoplekmaykregularlykface.kBusinesskcom
munications,kespeciallykadvertising,kcankalsokpresentkethicalkquestionskforkemployeeskwithinkorganizations.
4. Whatkarekthekthreekmajorksetskofkfactorskbelievedktokaffectkethicalkbehaviorkinkankorganization?
GraderskInfok:
Individualkfactorsksuchkaskindividualkknowledgekofkissues,kpersonalkvalues,kandkpersonalkgoalskinfluencektheklevelko
fkethicalkbehaviorkinkankorganization.kSocialkfactorsksuchkaskculturalknorms,kactionskandkdecisionskofkco-
workers,ksignificantkothers,kandkthekusekofkthekInternetkaffectkethicalkbehavior.kAlso,kthekamountkofkfreedomkankor
ganizationkgiveskankemployeektokbehavekunethicallykaffectskethicalkbehaviorkinkankorganization.
5. Whatkareksomekofktheksocialkfactorskthatkaffectkethicalkdecisions?
GraderskInfok:
,Culturalknormskiskankimportantkfactorkinkconsideringkethicalkdecisionkmaking.kThekactionskandkdecisionskofkco-
kworkerskimpactkotherkemployees'ksensekofkbusinesskethics.kSignificantkothers-spouses,kfriends,kandkrelatives--
alsokcankaffectkankemployee'skperceptionkofkethicalkandkunethicalkdecisionskinkthekworkplace.kAlso,kthekusekofkthekIn
ternetkbykemployeeskinkakbusinessksettingkiskalsokankimportantksocialkfactorkthatkaffectskethicalkdecisionkmaking.
6. Howkcankthekgovernmentkencouragekethicalkbehavior?kGivekankexample.
GraderskInfok:
Thekgovernmentkencourageskethicalkbehaviorkbyklegislatingkregulations.kOnekofkthekimportantklandmarkkregulation
skthatkthekgovernmentkhaskcreatedkiskthekSarbanes-
OxleykActkofk2002kwhichkdealskwithkcorporatekresponsibility,kconflictskofkinterest,kandkcorporatekaccountability.
7. Definekakcodekofkethics.kDokcodeskcoverkeverykbusinessksituation?
GraderskInfok:
Akcodekofkethicskiskakwrittenkguidektokacceptablekandkethicalkbehaviorkinkankorganization.kAkcodekoutlineskuniformkpo
licies,kstandards,kandkpunishmentskforkviolations.kAkcodekofkethicskcannotkpossiblykcoverkeveryksituationkthatkmightk
arisekinkankorganization.kAnkenvironmentkinkwhichkemployeeskrecognizekthekimportancekofkcomplyingkwithkthekwritt
enkcodekmustkalsokbekinkplace.
8. Whatkmightkbekthekpersonalkandksocialkconsequenceskofkwhistle-blowingkwithinkone'skownkfirm?
GraderskInfok:
Whistle-
blowing,kthekpracticekofkinformingkthekpresskorkgovernmentkofficialskaboutkunethicalkpracticeskwithinkone'skorganiz
ation,kcouldkimpactkthekemployeekwhokblewkthekwhistlekthroughklosskofkhiskorkherkjobkevenkthoughkthekSarbanes-
OxleykActkofk2002kprotectskwhistle-
blowerskwhokreportkcorporatekmisconduct.kRetaliationkbykexecutiveskiskakcriminalkoffensekbut,knevertheless,kretali
ationkdoeskoccur.
9. Whatkarekakfewkexampleskofkcompanieskactingksociallykresponsible?
GraderskInfok:
Studentkanswerskwillkvary.kSomekpossiblekanswerskincludekWalmart'skdonationkofk$20kmillionkinkcash,k10
0ktruckloadskofkfreekmerchandise,kandkfoodkfork100,000kmealskafterkHurricanekKatrina,kGeneralkMills'
foundationkthatkawardskmillionskofkdollarskinkgrantsktokcommunitykorganizations,kandkDell'skfoundationkthatksupport
skakwidekrangekofkprogramskthatkbenefitkchildrenkinkDell'skprincipalkU.S.klocations.
10. Definekthekdoctrinekofkcaveatkemptor.
GraderskInfok:
, CaveatkemptorkiskakLatinkphrasekmeaningk"letkthekbuyerkbeware."kDuringkthekearlyk1900s,kbusinesskactedkprimarilykw
ithoutkoversightkbykgovernmentkregulationkandkconsumerskwerekleftktoktheirkownkdevicesktokdeterminekifkakproductk
orkservicekwaskwhatkwaskexpectedkandkwhatkwaskportrayed.
11. Howkdoeskthekeconomickmodelkofksocialkresponsibilitykdifferkfromktheksocioeconomickmodelkofksocialk
responsibility?
GraderskInfok:
Thekeconomickmodelkofksocialkresponsibilitykascribeskthatksocietykbenefitskmostkwhenkbusinesskiskleftkalonektokprod
ucekandkmarketkprofitablekproductskthatksocietykneeds.kThiskcontrastsksharplykwithktheksocioeconomickmodelkofksoci
alkresponsibilitykwhichkplaceskemphasisknotkonlykonkprofitskbutkalsokonkthekimpactkofkbusinesskdecisionskonksociety.
12. Whatkwouldkproponentskofktheksocioeconomickmodelkarguektoksupportktheirkposition?
GraderskInfok:
Sincekakcorporationkiskakcreationkofksocietykandkiskdeemedkakpartkofksociety,kakcorporationkmustkactkaskakgoodkcitize
nkorksocietykhaskthekrightktokdemandkchangeskbykthatkentity.kBusinesseskhavekakresponsibilityktoknotkonlykstockholde
rskbutkalsoktokcustomers,kemployees,ksuppliers,kandkthekgeneralkpublic.
13. Whatkwouldkopponentskofktheksocioeconomickmodelkarguektoksupportktheirkposition?
GraderskInfok:
Businesseskarekmostkfunctionalkandksuccessfulkandkofkmostkbenefitktoksocietykwhenkleftkalonektokproducekandkmark
etkprofitablekproductskandkserviceskthatksocietykneedskandkwants.kSocialkresponsibilitykisksomeonekelse'skjobkandkiskn
otkakprimarykresponsibilitykofkakbusiness.kAkfirmkisklegallykobligatedktokactkinkthekeconomickinterestkofkitskstockholder
skandksuccessfulkbusinesseskpayktaxeskthatkarekusedktokmeetkthekneedskofksociety.
14. Definekconsumerism.kHowkhavekthekrightskofkconsumerskchangedksincek1930?
GraderskInfok:
Consumerismkconsistskofkallkactivitieskundertakenktokprotectkthekrightskofkconsumers.kThekthreekprimarykcategoriesk
ofkthekconsumerkmovementkincludekenvironmentalkprotection,kproductkperformancekandksafety,kandkinformationkd
isclosure.kBeforekthek1930s,kworkers,kconsumers,kandkgovernmentkhadkveryklittlekinfluencekonkbusinesskactivities.kC
onsumerismksincekthek1930skhaskshownkconsumerskthatktheykdokhavekrightskandkcankexpectkbusinessesktokmeetkenv
ironmental,ksafety,kaskwellkaskotherkexpectations.
15. Explainktheksixkbasickrightskofkconsumers.
GraderskInfok:
