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CHAPTER 4 ASSESSMENT 1)Emerald Inc

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CHAPTER 4 ASSESSMENT

1)Emerald Inc. is a manufacturer of cosmetics that focuses on delivering high-quality products to its customers. As Emerald is aware of the side effects of parabens on skin and hair, it uses organic preservatives in its cosmetic products. All the cosmetic products that it manufactures are free of parabens. In this way, the company ensures that the usage of its products does not cause allergy to any of its customers. Which of the following social responsiveness strategies is Emerald using in this scenario?

            Defensive strategy

            Reactive strategy

            Accommodative strategy

            Proactive strategy

 

 

2. Managers can use overt integrity tests to _____.

            assess the ethical intensity of an issue

            select and hire ethical employees

            differentiate between the ethics of primary and secondary stakeholders

            reinforce the ethical principle of individual rights

 

3.Red Spark Inc., a multinational electronics manufacturer, recently came under close scrutiny after it was involved in a major money laundering scam. The scam had adversely affected the careers of more than two hundred employees of Red Spark despite the fact that they were not involved in the scam. This scenario illustrates that the scam had a:

            high magnitude of consequences.

            high peer acceptance.

            low probability of effect.

            low concentration of effect.

 

4. When ten customers of Niall's Eatery fell seriously ill after dining at the restaurant, the issue was noticed by the public. The public demanded that the restaurant's kitchen be thoroughly inspected and the patients be compensated. However, the management at Niall's Eatery denied all claims that the customers had fallen ill by consuming the food served by the restaurant. Furthermore, the management was against any inspection on the kitchen. Which of the following social responsiveness strategies is the restaurant using?

            Accommodative strategy

            Reactive strategy

            Defensive strategy

            Proactive strategy

 

 

5.Which of the following statements is true of the relationship between social responsibility and economic performance?

            Socially responsible companies are guaranteed profitability.

            There is a big trade-off between social responsibility and economic performance.

            Socially responsible companies and traditional businesses do not experience the same ups and downs in economic performance.

            The costs of being socially responsible can be offset by a better product or corporate                      reputation.

 

6. For a code of ethics to encourage ethical decision making and behavior in a company, _____.

            the code must contain broad rather than specific guidelines.

            the management must ensure that the code of ethics does not include customers' and                     shareholders' interests.

            the management must develop practical ethical standards and procedures specific to the                company's line of business.

            the code of ethics should revolve around legal factors and not organizational values.

 

7. Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a _____.

            high magnitude of consequences

            low magnitude of influence

            low probability of effect

            high cultural effect

 

8. When addressing an issue of _____, managers are more aware of the impact their decision will have on others.

            high ethical intensity

            high workplace deviance

            low employee shrinkage

            low personal aggression

 

9. Which of the following is an objective of ethics training?

            To achieve credibility with employees

            To discourage employees from reporting violations

            To enforce flexible ethical standards

            To delegate decision-making authorities to all employees

 

 

 

 

 

 

10. Horizon Inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. The company disposes the waste in the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that Horizon has failed to fulfill its _____.

            discretionary responsibility

            political responsibility

            legal responsibility

            economic responsibility

 

11 Suppose that a company finds out that its actions have caused a major environmental hazard, such as a large oil spill. If the company adopts the __________, you might expect it to deny that the hazard exists or that they were responsible for causing it.

            reactive strategy

 

12 A(n) _____ is a social responsiveness strategy in which a company does less than society expects.

            proactive strategy

            discretionary strategy

            reactive strategy

            accommodative strategy

 

 

 

13 Milton Friedman developed the __________, which says that an organization's number one priority should be to make money for its owners.

            shareholder model

 

 

 

14 Teeny Toys Inc., a chain of toy stores, has decided to donate free toys to orphanages across the United States. This scenario illustrates that the company is aiming at fulfilling its _____.

            legal responsibility

            ethical responsibility

            discretionary responsibility

            economic responsibility

 

15 Maxwell Lights Inc., a fireworks company, has workers operating under dangerous working conditions. Last year, one of its workers died on the job. Nevertheless, the company took a long time to acknowledge its responsibility for the accident. The worker's family was compensated only after several months. Moreover, the money received by the worker's family was only half of what they should have actually been paid. Which of the following social responsiveness strategies is the company using?

            Proactive strategy

            Accommodative strategy

            Defensive strategy

            Reactive strategy

 

16 The US Sentencing Commission Guidelines for Organizations impose smaller fines on companies that:

            are not concerned with the ethical behavior of employees.

            are unaware of the unethical behavior of employees.

            voluntarily disclose illegal activities to federal authorities.

            have no history of violation of ethics principles.

 

17 Secondary stakeholders are important to a company because:

            they are critical to the company's long-term survival.

            they can affect public perceptions about socially responsible behavior.

            they have the direct power to control management decisions.

            they are involved in day-to-day transactions with the company.