Homework answers / question archive / Tunku Abdul Rahman University College, Kuala Lumpur  CHAPTER 4 – DEMANDING ETHICAL BEHAVIOR AND SOCIALLY RESPONSIBLE BEHAVIOR ASSESSMENT CHECK 1)What are some things that could be done to restore trust in the free market system and in corporate leaders?   2

Tunku Abdul Rahman University College, Kuala Lumpur  CHAPTER 4 – DEMANDING ETHICAL BEHAVIOR AND SOCIALLY RESPONSIBLE BEHAVIOR ASSESSMENT CHECK 1)What are some things that could be done to restore trust in the free market system and in corporate leaders?   2

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Tunku Abdul Rahman University College, Kuala Lumpur 

CHAPTER 4 – DEMANDING ETHICAL BEHAVIOR AND SOCIALLY RESPONSIBLE BEHAVIOR

ASSESSMENT CHECK

1)What are some things that could be done to restore trust in the free market system and in corporate leaders?

 

2.         What is the danger in simply writing new laws to correct behavior?

 

3.         What is the difference between being “ethical” and being “legal”?

 

4.       What is meant by the statement “Many Americans today have no moral absolutes.”?

 

5.         The common themes from the Bible, Aristotle, Shakespeare, the Koran and Confucius are:

 

6.       How “socially minded” are Americans in general? What information does the text cite to support that claim?

 

7.         What is an “ethical dilemma”?

 

8.         How did teams respond when they were asked about making ethical decisions?

 

 

9.         Describe an ethical dilemma.

 

10.       What are three questions to ask yourself when faced with an ethical dilemma?

 

11.       Organizational ethics begin at the top.

 

12.       What are the reasons to manage ethically?

           

 

 

13.     Identify the difference between a compliance-based ethics code and an integrity-based ethics code.

 

14.       What are six steps to follow for a long-term improvement of America's business ethics?

           

 

15.     What is the most important factor to the success of enforcing an ethics code?  What makes that person effective?

 

16.       Corporate social responsibility is based on:

 

17.       Critics of corporate social responsibility (CSR) believe:

 

18.       Defenders of CSR believe:

 

19.     Is it likely that there will be a single set of international rules governing multinational corporations? Why or why not?

             

 

20.       Describe the USA Freedom Corps.

 

21.     Identify three web-based volunteer services that link volunteers with nonprofit and public sector organizations.

      

 

22.       What are four groups that comprise the stakeholders to whom businesses are responsible?

           

 

23      President John F. Kennedy proposed these four basic rights of consumers:

   

 

24.     One of the surest ways of failing to please customers is ______________________________

 

25.     How does Bagel Works, a New England based chain of bagel stores, demonstrate a two-way, or dual approach to social responsibility?

 

26.       Is it only company executives that participate in insider trading?

 

27.       What is required by Regulation FD, adopted by the SEC in the early 2000s?

 

28.       What responsibilities do businesses have toward employees?

 

29.       What are “contented cow”companies, vs. “common cow” companies?

 

30.       How does offering employees good salaries and benefits help companies?

           

31.       What actions might disgruntled employees take?

 

32.     Some companies feel responsible for promoting social justice and believe they have a role in giving back. What kinds of social contributions have companies made to go beyond charity?

 

33.     What is a product’s carbon footprint?

 

 34.    What is the potential financial impact of environmental strategies?

 

35.     Describe the impact of the green movement on the U.S. labor force.

 

36.       A major problem of conducting a social audit is establishing procedures for measuring

 

37.       Many consider that a workplace audit should measure:

           

 

38.       How is a “net social contribution” calculated?

 

39.     Describe the four types of “watch-dog” groups that monitor how well companies enforce ethical and social responsibility policies.

      

 

40.     Are ethical problems unique to the United States?  What is new about the ethical standards used to judge government leaders?

 

41.     What are many American businesses demanding from their international suppliers in terms of social responsibility?

 

42.     Describe the Joint Initiative on Corporate Accountability and Workers’ Rights.

        

 

43.     What questions surround the issue of American ethical standards and international suppliers?

      

 

 

CRITICAL THINKING EXERCISES

 

1.       You are a buyer for a major manufacturer of automotive parts and have control over multi-million dollar contracts.  You were recently talking with one of your suppliers and mentioned that you were planning a pleasure trip to Los Angeles with your family, and weren’t sure yet where you would be staying. “It’s so expensive in L.A. I’m afraid we won’t find a decent place to stay.”  The supplier said that he has contacts in L.A.  in the hotel industry, and that he would not only make the reservation for you, but would pay for the hotel stay for you and your family.

          Your company’s policy regarding “gifts” from suppliers is not entirely clear.  Tangible gifts with a value over $50 are not to be accepted.  Other things such as dinners, and other intangibles, are to be evaluated on a case-by-case basis, and acceptance is left up to the discretion of the employee.  Any employee who violates the policy could face severe penalties, including dismissal.

          Is this an ethical dilemma? Why or why not? What ethical issues are involved? Is there a question of “legal versus ethical”? What would you do?

 

 

2.       Refer to the ethics check questions in your text and determine how you would handle the following situation.

Daryl, the general supervisor of a marketing department of a mid-sized Midwestern corporation, is an ambitious young man.  He is writing a book that he hopes will make a name for himself in the business community.  Because the typing for the actual text is very time-consuming, Daryl is using the secretary he shares with 2 other managers, as well as some of his market research interns to both do research and to type the book while they're at work.  Because they are often busy doing his book, people from the other departments are finding they can't get their work-related business done.  The secretary and interns feel they have to do what Daryl says because he is their direct supervisor.

You are Daryl's peer in another department and you also have outside work you need to have typed. You're annoyed at Daryl's actions, but would rather not inform your boss, (who is also Daryl's boss) about what's going on because you want to maintain a friendly working relationship with Daryl. Besides, you never know how "the boss" is going to react.  Sometimes you begin to think that if Daryl can get away with using company equipment, personnel, and time for his personal projects, why can't you? Discuss what you believe are the ethical issues in this situation, and determine how you would handle this situation.

 

3.       You work for a major car manufacturer as a district manager, calling on car dealerships as a representative of the manufacturer.  It is three days before the end of a sales incentive contest, and one of your dealers is close to winning a trip to Hawaii.  If your dealer wins the contest for your area, you get a lot of recognition and a good chance for a promotion, which will enable you to stop traveling so much during the week.  The dealer wants you to report as "sold" eight cars that he has not yet sold but will have deals on next week, several days after the end of the contest.  Those eight cars will put him over the top and enable him to win the contest.  You just received a directive from the corporate headquarters on this practice of pre-reporting sales, indicating that the company would take strong action against anyone discovered taking such steps.  Your boss and his superior have taken you aside and encouraged you to take whatever action is necessary to win the contest.  You think you could get by with it and not get caught.  An added problem is that the customer warranty starts the day the car is reported sold, so whoever purchases the car would lose several days of warranty service. What is your manager’s role in this situation?  What would you do?

 

 

Learning Goal 4

4.         Ethics codes can be classified into two major categories:    

 

5. You have just been hired as Pro-Tech’s first Ethics officer.  You feel that your first project should be to set up the company’s corporate code of ethical conduct.  How would you start, and what steps would you take?

 

6.         "...corporate social responsibility is the concern businesses have for the welfare of society."

            Read the situation described below and answer the questions that follow:

MUMC is a successful medium-sized firm that supplies parts for electric motors.

           Dan Furlong, the president, was being interviewed by the business features writer of the local newspaper.  The reporter asked Dan his views on social responsibility, and how MUMC reflected a socially responsive position.  Dan replied that although he had never done a so-called social audit (as the textbooks call it) he did figure that the firm was a good corporate citizen.  He said, "We pay our employees a good salary, and the guys in the shop are getting paid above hourly wages for this area.  We make a profit, and give everyone a bonus at the holidays.  We take a lot or precautions in the shop, and no one has had an accident to speak of in several years.  A few cuts or bruises, but that's part of that kind of job.  Whenever we have customer complaints, I make sure someone handles them right away.  We charge what I think is a fair price for our product, which I think is higher quality than most of my competitors.  I pay my bills on time and don't cheat on my taxes.  I guess you could say that we are a pretty socially responsible company."

 

a. In keeping with the idea of social audits and socially responsible business activities, is Mr.            Furlong running the business in a socially responsible manner?

 

            b. Who are Mr. Furlong’s stakeholders?

 

c. What suggestions can you make to improve MUMC’s social responsibility position?

 

7.       Who are four stakeholders to whom businesses are responsible?  What does “being responsible” to each of these groups require?

 

8.       How does the increasingly global nature of U.S. business impact the issue of social responsibility and ethics?

 

PRACTICE TEST

 

MULTIPLE CHOICE – Circle the best answer

 

1.       Which of these actions is least likely to restore the trust of the American public in the free market system?

 

2.         The difference between ethics and legality is that:

 

3.         A survey revealed that:

 

4.       According to the text, ethical behavior begins with:

 

5.       Sometimes an obvious choice from an ethical standpoint has personal or professional drawbacks.  An example might be when a supervisor asks you to do something unethical, and you face negative consequences if you refuse.  When you are in such a situation you are faced with:

            .                      

 

6.       Which of the following is not included as one of the questions we must ask when faced with an ethical dilemma?
 

 

7.         The most basic step in an ethics based management system is asking the question:

           

8.         Which of the following is the best reason for a business to be managed ethically?

 

9.         Organizational ethics begin

 

10.       Which of the following is not a part of an integrity-based ethics code?

 

11.     According to the text, which of the following actions is probably most critical In establishing an effective ethics program?

 

12.     A logistics company, TNT keeps an emergency response team on standby to go anywhere in the world at 48 hours notice.  This is an example of:                  

 

13.     Defenders of corporate social responsibility (CSR) believe:

                                                           

 

14.       Being energy conscious, ensuring that employees have a safe working environment, and             monitoring corporate hiring policies to prevent discrimination is part of:

 

15.       In terms of social responsibility, many people believe that

           

 

16.       In terms of social responsibility, the “contented cow” idea states that

 

17.     Maria Hernandez is a secretary at Big Bud’s Brewery a major U.S. brewer of specialty beers.  Maria was at lunch with her friend Olga, who is the Administrative Assistant to the president of the Brewery, January Flower.  Olga mentioned that she overheard her boss talking to a potential buyer of Big Bud’s Brewery.  Maria began thinking that perhaps she should buy some extra stock in the company, as the price was most likely to go up if the company was going to be sold.  If Maria does buy the stock before the sale of Big Bud’s is publicly announced, she:

         

 

18.     Which of the following is not one of the watchdog groups that evaluate how well companies enforce their ethical and social responsibility policies?

 

19.       Government and business leaders are being held to:

           

 

20.       American businesses are:

 

TRUE-FALSE

1.                One danger in writing new laws to correct behavior is that people may begin to think that any behavior that is within the law is also ethically acceptable.

 

2.         Ethics and legality are basically the same thing.

 

3.         Solutions to ethical problems are usually easily determined.          

 

4.                In an organization, ethics begin at the top.

 

5.         One of the reasons for ethical management is to avoid lawsuits.

 

6.         Compliance-based ethics codes define an organization’s guiding values, create an

                        environment that supports ethical behavior and stresses shared accountability.

 

7.                One step to the success of enforcing an ethics code is the selection of an ethics officer.

 

8.                It’s not important for employees to be given a specific ethics code.  They should be aware of what constitutes ethical behavior without being told.

 

9.         Whistleblowers are individuals who report unethical or illegal behavior in an organization.

 

10.       Corporate social responsibility is the concern businesses have for their profitability.

 

11.       In reality, it appears that even people who want to be socially responsible can’t                                        define what being socially responsible means.

 

12.       One of the best ways to please customers is to hide product defects from them.

 

13.              Insider trading involves employees buying and selling the stock of the company by which they are employed.

 

14.       Businesses have a responsibility to employees to create jobs.

 

15.              A carbon footprint can be defined as the amount of carbon released during the production, distribution, consumption and disposal of a product.    

 

16.       Ethical problems and issues of social responsibility are unique to the United States.

 

17.              Nike has been accused of treating workers in some parts of the world unfairly,  and has begun an  effort to improve its reputation.