Self Test: Multiple Choice

You can find the answers on the last page of this text.

  1. 3-1 The study of moral principles is

    1. Christianity.

    2. ethics.

    3. CSR.

    4. philanthropy.

  2. 3-2 A corporation can behave in a socially responsible way by

    1. having strong policies in place to help the ­community.

    2. acting to reduce the negative impact a company has on the environment.

    3. being truthful with consumers in its market.

    4. All of the above

  3. 3-3 Employees can be sure their behavior out of the office

    1. has no impact on stockholders.

    2. cannot impact their career if they blog under a fake name.

    3. matters to employers only during the hours they are officially telecommuting.

    4. None of the above

  4. 3-4 CSR can be measured by

    1. a company’s rate of growth.

    2. organizations that monitor and rank performance on social issues.

    3. the happiness level of employees in a company.

    4. businesses that have high profit margins and gross sales.

  5. 3-5 A business is in legal compliance if

    1. it follows all the laws of which it is aware.

    2. it cannot be proven guilty of violating any laws.

    3. it meets all local, state, and federal regulations.

    4. it hires only employees who do not have criminal records.

  6. 3-6 Amoral behavior is

    1. any illegal activity.

    2. not caring about the moral consequences of your ­action.

    3. when a person has a strong conviction behind their actions.

    4. a part of most religious traditions.

  7. 3-7 Socially responsible investing (SRI) means that you are investing in

    1. companies making the largest gains in profit for the past three years.

    2. only companies that meet a certain standard of CSR.

    3. only nonprofit companies.

    4. companies that sponsor food banks.

  8. 3-8 Ethical sourcing means that

    1. people should make ethical decisions based on a particular situation.

    2. there is one accepted source for guiding ethical decision making.

    3. a company follows accepted conduct when acquiring raw materials from suppliers.

    4. companies will not work with international suppliers.

  9. 3-9 Which of the following strategies is not designed to help a company recover from an ethical lapse?

    1. Ensuring whistle-blowers face legal consequences

    2. Working to find a leader who will set an example of the new ethical image of the company

    3. Restructuring internal operations to empower all employees to consider ethical implications of decisions and allowing them to feel free to speak up when they have ethical concerns

    4. Redesigning a firm’s internal rewards—for example, restructuring the incentive package for sales employees so there’s a financial reward for building relationships with clients rather than just closing a sale

  10. 3-10 The practice of corporate philanthropy

    1. is only a marketing strategy.

    2. can build stronger relationships with employees and the community at large.

    3. states that success can be found by competing fiercely to provide the lowest price.

    4. is a strategy that works only in certain segments of industry where there is a lot of media attention.

True/False

You can find the answers on the last page of this text.

  1. 3-11 A mission statement details the plans of how a company will achieve profitability.

    1. □ True or □ False

  2. 3-12 Minimizing a company’s carbon footprint is part of a plan to increase corporate philanthropy.

    1. □ True or □ False

  3. 3-13 Ethics is the study of the general nature of morals and the specific moral choices a person makes.

    1. □ True or □ False

  4. 3-14 Price fixing is when a group of companies get together and decide to drop prices to make up for scarcity in the market.

    1. □ True or □ False

  5. 3-15 A weak ethical focus in a company allows it to compete more aggressively and guarantees higher profits.

    1. □ True or □ False

Critical Thinking Questions

  1. An image shows a star blue icon. 3-16 Do you believe being ethical will lead to a better quality of life for you? Do cheaters win in the real world, or does ethical conduct lead to a more satisfying outcome? Are there times you would be willing to compromise your ethics for business gain?

  2. 3-17 Which of the five pillars of CSR seems the most important to you? How do the five areas relate to each other?

  3. An image shows a star blue icon. 3-18 How should companies respond to government request to break their own security systems. Apple has had numerous requests from law enforcement to break into iPhones confiscated in criminal and terrorism cases. Can Apple be forced to provide a “backdoor” allowing government agencies to defeat the security they have designed into their products?

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