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A social audit measures a firm's progress in the area of worker-management relations.

A) True
B) False

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In the long run,a firm's loyalty to their employees can pay off financially.

A) True
B) False

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Recent surveys indicate that students are willing to agree to lower salaries if they know their employer is participating in socially responsible activities.

A) True
B) False

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You are in a business meeting at work that requires your group to make an ethical decision.Your willingness to post the final decision on the bulletin board in the break room for all to see passes the test: "How will it make me feel about myself?"

A) True
B) False

Correct Answer

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Companies are using _____________ to communicate their corporate social responsibility actions to their customers.


A) sales promotion
B) traditional advertising on television and radio
C) social media
D) their employees - word of mouth

E) None of the above
F) B) and D)

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A firm's carbon footprint is:


A) the number of employees it hires in a specific community.
B) its legacy in terms of how much public good it dispersed over its lifetime.
C) the amount of carbon it releases in its effort to do business.
D) its participation in local fund-raising events.

E) A) and B)
F) B) and D)

Correct Answer

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The boxed material entitled Connecting Across Borders that told the story about Joe,the Motorola engineer,suggests that U.S.firms operating overseas are:


A) Not as flexible on social issues as local employees would like them to be.
B) Exploiting employees by working them long hours at low pay.
C) Complying with the ethical standards of the people they employ,in the countries in which they are operating.
D) Responding to their stockholders desire for profits.

E) A) and D)
F) C) and D)

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Which of the following is a characteristic of an effective ethics officer?


A) (S) he has a background in human resource management.
B) (S) he is exceptionally organized.
C) (S) he has a capacity to serve as a counselor and an investigator.
D) (S) he communicates primarily via email.

E) A) and C)
F) All of the above

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A common form of cheating in schools today is plagiarizing material from the Internet.

A) True
B) False

Correct Answer

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Business issues such as minority hiring practices and pollution control fall under the umbrella of corporate responsibility.

A) True
B) False

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A charitable donation contributed by a corporation is an example of corporate philanthropy.

A) True
B) False

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International issues of social responsibility and ethical behavior are:


A) the result of greed found in capitalist countries.
B) found primarily in countries with a low standard of living.
C) a concern only of business professors.
D) difficult and not as clear-cut as U.S.firms would like them to be.

E) C) and D)
F) A) and D)

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Punishing business leaders who have broken the law may help restore trust in the free-market system and leaders in general.

A) True
B) False

Correct Answer

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Which of the following statements is


A) Management should be trained to always consider the ethical implications of decisions.
B) Top management should unconditionally support a company's corporate code of ethics.
C) Whistleblowers should be protected from retaliation.
D) Outsiders should be kept outside.There is no reason to share your firm's corporate code of ethics.It is an internal and private document.

E) A) and B)
F) A) and C)

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The green movement has resulted in a positive impact on U.S.jobs.

A) True
B) False

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Promoting social justice is a responsibility of society,but not business.

A) True
B) False

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In reality,ethical behavior depends on the situation.For example,in negotiating a contract with your employees,the way they win higher wages is by your losing the fight to hold down labor costs.You realize it is a win-lose relationship.

A) True
B) False

Correct Answer

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In a famous speech,former President John F.Kennedy proposed that businesses had four basic rights,and in his own words,he proclaimed that "each one of them leads us back to the right to keep the profits from one's business."

A) True
B) False

Correct Answer

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Blake Mycoskie started a shoe business known as TOMS.As a social entrepreneur,Mr.Mycoskie takes the concept of ___________________ to a new level.TOMS social causes are directly related to the firm's expertise: selling shoes.


A) social auditing
B) corporate social initiative
C) corporate policy
D) corporate philanthropy

E) None of the above
F) B) and C)

Correct Answer

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Due to the fact that American ethical standards are very clear-cut,international suppliers do not have difficulty adhering to them.

A) True
B) False

Correct Answer

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