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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

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The question "Is it legal?" establishes ethical behavior.

A) True
B) False

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All U.S. companies practice the same ethical standards when dealing with suppliers and contract manufacturers abroad.

A) True
B) False

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Moral behavior refers to behavior that is accepted by society as right versus wrong.

A) True
B) False

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After a few years of being in business, employees who worked for a start-up software company noticed that the owner overlooked certain questionable actions of high billing associates, versus other employees who worked hard but only brought in an average number of new clients each month. With respect to what you learned in this chapter about the ethical behavior of many Americans, which of the following statements applies here?


A) This story indicates that moral absolutes are very prevalent today in business settings.
B) The owner will continue to operate this way until someone blows the whistle.
C) We cannot expect people in the U.S. to all follow similar ethical patterns because there are too many cultures to deal with. Businesses are no different.
D) As is often the case today, some leaders will look at each situation individually when making value judgments.

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

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Fresh Walls Paint Company promotes its products as nontoxic and made from natural, organic substances that are safe for all persons including those with asthma and other lung conditions. In order to live up to customer expectations, it must walk the walk and not just talk the talk! If consumers learn that Fresh Walls' paints do not meet their expectations, their reaction is likely to tarnish the company's image.

A) True
B) False

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Last week, the Local Citizens for a Greener America sent a formal document to Chipper's Golf Resort asking the private club to measure its carbon footprint and publicly disclose the amount of fertilizer and other carbon-emitting substances that it uses on its two award-winning golf courses. LCGA is an example of ___________.


A) an employee organization that has emerged at the resort.
B) a watchdog group.
C) a disgruntled nonprofit organization that has a beef against golfers.
D) a public interest group that is demonstrating social responsibility.

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

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A friend offers to share with you a term paper previously prepared for her Introduction to Business class last semester. When you tell her that it wouldn't be fair, she reminds you of your habit of reading an entire Harry Potter book at the local bookstore without paying for the book. Which ethics-based question would be most helpful in evaluating these situations?


A) Is it legal?
B) Is it balanced?
C) Who wins and who loses?
D) Will I get caught?

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

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Management's philosophy at Apple, Inc., has often stated that a fit body contributes to more productivity at work. Apple provides exercise facilities at most of its sites across America, and permits employees to use a half-hour of work time each day to relieve stress through exercise. This serious position on physical fitness is part of Apple's ___________.


A) corporate philanthropy
B) corporate policy
C) community mediation services
D) participative funding

E) C) and D)
F) B) and D)

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The objective of the Inter-American Convention Against Corruption document formulated and signed by the Organization of American States is to identify common global ethics.

A) True
B) False

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A payoff for socially conscious behavior is:


A) new and loyal customers.
B) a large pool of investors.
C) a large pool of talented employees.
D) longevity due to a stable external environment.

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

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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

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Legal behavior and ethical behavior are basically the same.

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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Applying the ethical standards of the U.S. to foreign firms is a difficult process for U.S. firms.

A) True
B) False

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J. D. started working for an export trading company right out of college. His job took him to Asia on several occasions, where he interacted with manufacturers and got to practice his limited Chinese. He was amazed to see the difference in working conditions in the developing nations where he visited, compared to similar operations in the U.S. The expectations of workers were not the same. J.D.'s experience is an example of: A) corporate philanthropy differences in different countries. B) social responsibility differences between similar firms, but in different countries. C) differences in corporate social initiatives in foreign nations. D) the need for whistleblowers abroad.

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The difference between an organization's positive social contributions and its negative social impacts is called their:


A) social scorecard.
B) responsibility impact report.
C) net social contribution.
D) community commitment level.

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

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The green movement:


A) is not a good strategic consideration for contemporary firms.
B) will never benefit a firm financially.
C) is benefiting all firms financially.
D) has created jobs.

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

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Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with one socially irresponsible activity.

A) True
B) False

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Insider trading involves:


A) an Internet activity that establishes a barter exchange system between businesses.
B) investors using private company information to further their own fortunes.
C) the exchange of assets between companies in the same industry.
D) a payment or reward for socially conscious behavior.

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

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