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What are the major ethical issues businesspeople face?

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Challenges to being fair and honest, tem...

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Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning


A) fairness and honesty.
B) organizational relationships.
C) conflict of interest.
D) communications.
E) freedom of choice.

F) C) and D)
G) A) and B)

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XYZ Coffee Nancy is a highly respected person within her community. She is Hispanic in a largely Caucasian-populated area. Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position. After the interview, Nancy felt confident that she would be hired because of her qualifications. However, she did not get a call back. Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend. The company had hired an inexperienced Caucasian male with a history of unemployment. At this point, Nancy was quite aggravated, but she left the issue alon -Refer to XYZ Coffee. Nancy's right to product options in buying an espresso machine is known as


A) caveat emptor.
B) consumerism.
C) affirmative action.
D) social audit.
E) business ethics.

F) B) and C)
G) A) and D)

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The right to be heard implies that companies should listen to consumer complaints and


A) thank them for their time.
B) give them a full refund.
C) do whatever the consumer requests.
D) do nothing-just listening is enough.
E) take appropriate action.

F) B) and D)
G) C) and D)

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All of the following are factors that affect the level of ethical behavior in an organization except


A) individual factors.
B) social factors.
C) opportunity.
D) demographic factors.
E) moral values.

F) A) and D)
G) A) and E)

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Generally, social responsibility does not cost money.

A) True
B) False

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Which president stated that consumers have the right to service?


A) Franklin D.Roosevelt
B) John F.Kennedy
C) Lyndon B.Johnson
D) Gerald R.Ford
E) Bill Clinton

F) A) and B)
G) A) and D)

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Babkok Corporation set up an effective program for social responsibility. Its top managers developed a policy statement outlining key areas of concern. This statement will serve as a guide for other employees as they become involved in the program. Now


A) a committee of managers should be appointed to plan the program.
B) employees should be appointed to submit suggestions to management.
C) a top-level executive should be appointed to direct implementation of the program.
D) employees should evaluate the program.
E) the program director should prepare a social audit for the firm at specified intervals.

F) D) and E)
G) B) and D)

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What led most directly to increased government involvement with regulating business and its dealings with society?


A) The Industrial Revolution
B) President Kennedy's consumer bill of rights
C) The collapse of the oil industry
D) The Great Depression
E) The end of World War I

F) B) and C)
G) B) and D)

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People exposed to loud noises for a long time can suffer permanent hearing loss.

A) True
B) False

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​Harold, president of a national stationery store, believes that the business has a responsibility not only to stockholders but also to customers, employees, suppliers, and the general public. Harold subscribes to the ____________ of social responsibility.


A) ​socioeconomic model
B) ​economic model
C) ​personal model
D) ​stakeholder model

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

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Once they are made aware of the pollution problem, most firms respond rather than waiting to be cited by the EPA.

A) True
B) False

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Which of the following is not one of the steps in developing and implementing a program of social responsibility?


A) Planning
B) The social audit
C) Commitment of employees
D) Appointment of a director
E) Commitment of top executives

F) B) and E)
G) A) and B)

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Which of the following best describes the trend in social responsibility models used by companies?


A) Most companies are changing from a socioeconomic approach to an economic approach to social responsibility.
B) There has really been no pattern of change over the last century because most companies take a socioeconomic approach.
C) There has been a sporadic shift back and forth between the economic and socioeconomic model as the best business solution.
D) Relatively little transformation has left the economic model as the philosophy for most businesses.
E) More companies have been bypassing the economic model in favor of the socioeconomic model in recent years.

F) B) and D)
G) B) and E)

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Vicky drives a four-door sedan to work and other places everyday. How does her car affect the environment now compared to a similar car thirty years ago?


A) A car is a car, so the environmental impact is likely the same.
B) Her car is more economical today than it would have been thirty years ago.
C) There are so many cars today that air pollution laws are nearly worthless.
D) Today's car has a pollution-control device that reduces harmful emissions.
E) Technology now produces cars that are completely harmless to the environment.

F) A) and E)
G) A) and D)

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All companies practice social responsibility in the same manner.

A) True
B) False

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All of the following are arguments against increased social responsibility except


A) social issues are the responsibility of government officials elected for that purpose.
B) companies should maximize profits, not solve society's problems, with their time, money, and talent.
C) because social problems affect society in general, businesses should not be expected to solve these problems.
D) social responsibility by firms can prevent increased government intervention.
E) business managers are primarily responsible to stockholders and providing them a good return.

F) A) and D)
G) A) and C)

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False and misleading advertising is illegal and unethical.

A) True
B) False

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An instruction pamphlet detailing steps for the care and use of a new electric appliance would fulfill which provisions of Kennedy's Consumer Bill of Rights?


A) The right to safety and the right to be informed
B) The right to be instructed and the right to safety
C) The right to be aware and the right to choose
D) The right to choose and the right to vote
E) The right to be heard and the right to sue

F) B) and D)
G) A) and B)

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If a company deals with violations of its ethical codes ____, the opportunity to be unethical will be reduced.


A) leisurely and lightly
B) firmly and consistently
C) on a case-by-case basis
D) quietly and erratically
E) frequently and severely

F) B) and E)
G) B) and C)

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