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Consumerism consists of all activities undertaken to protect the rights of consumers.

A) True
B) False

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Informing the press or government officials about unethical practices within one's organization is called


A) unethical behavior.
B) whistling.
C) whistle-blowing.
D) trumpeting.
E) a company violation.

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

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Texas Instruments expects its code of ethics and shared values to provide all of the following benefits except


A) create an outline for ethical policies and standards.
B) encourage employees to value integrity.
C) communicate the company's expectations to the employees.
D) describe what to do in every ethical situation.
E) expect employees to trust one another and use sound judgment.

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

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You have been asked to complete this year's social responsibility report for the insurance industry. Which of the following statements would you include as a valid indication of socially responsible activities in this industry?


A) This year, we sold more insurance policies than in the previous two years.
B) This year marked a 200 percent increase in the number of new insurance products and services available to customers.
C) To date, few women and minorities hold management positions in the insurance industry.
D) This year, more than 300,000 volunteer hours were contributed by companies through loaned executives and release-time (time off) arrangements.
E) Fewer than one-eighth of the companies' charitable contributions go to people-related activities.

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

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With whom does social responsibility of business have to begin?


A) Government
B) Management
C) Consumers
D) Consumer protection groups
E) Society

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

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Increasingly, consumer education is becoming a part of high school and college curricula and adult-education programs.

A) True
B) False

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Kathy has noticed that the airport in her city is away from where most people live and work, and it takes a while to get there. This location was probably strategically designed to reduce


A) air pollution.
B) noise pollution.
C) highway traffic.
D) air traffic.
E) land pollution.

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

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When faced with an ethical conflict, a manager should always


A) ask the boss what to do, then do it without question.
B) consider only what is best for the company.
C) look at which decision will make the stockholder the most money today.
D) worry only about what the law has to say, then take legal action because it will produce the least public outcry.
E) think about his or her own ethics; the company's ethics; and the interest of employees, stockholders, and customers.

F) D) and E)
G) C) and D)

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​Susan has worked with her officemates for two years. When she started working she was very careful to return from every break on time and to keep meticulous track of her time. Over the last month she has spent more time at breaks with her colleagues who encourage her to write down the proper amount of time for the break regardless of how long they were away from their workstations. "Everyone does it," one of her colleagues said, and the others agreed. Susan does as her colleagues have told her to do. What social factor(s) have affected her ethics?


A) ​Co-workers.
B) ​Co-workers and personal values.
C) ​Significant others and co-workers.
D) ​Co-workers and cultural norms.

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

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What specific area of business communications presents ethical questions by sometimes containing false and misleading messages for adults and especially children?


A) Press releases
B) Newspaper articles
C) Consumer Reports' rankings
D) Advertising
E) Audited financial reports

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

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After consulting his company's code of ethics, Mark is still unsure of whether or not the decision he is about to make is ethical. Which of the following actions would be most appropriate?


A) Ask his wife what she would do in this situation.
B) Calculate the decision's bottom-line impact and do whatever increases profit the most.
C) Determine whether coworkers, suppliers, and customers would approve of the action.
D) Go with his gut feeling because Mark considers himself to be an ethical individual.
E) Avoid making the decision and any other decision with ethical implications.

F) A) and C)
G) A) and E)

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What might be the personal and social consequences of whistle-blowing within one's own firm?

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Whistle-blowing, the practice of informi...

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To achieve affirmative action goals and to remedy past discrimination, hiring quotas are required.

A) True
B) False

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"We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. What persuasive argument would you use to influence this manager to become more socially responsive?


A) Business has the technical, financial, and managerial resources needed to tackle today's complex economic issues.
B) Social problems affect society in general, so individual businesses probably should not be expected to solve these problems.
C) By helping to solve social issues, business can create a more stable environment for long-term profitability.
D) Socially responsible decision making by business firms will not prevent increased government intervention, which only forces businesses to do what they fail to do voluntarily.
E) Corporate time, money, and talent should be used to maximize profits, not to solve society's problems.

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

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In support of their position, proponents of the socioeconomic model argue that businesses should be allowed to ignore social issues.

A) True
B) False

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Congress created the ____ in 1980 to help pay for cleaning up land polluted with chemicals and toxic wastes.


A) Environmental Protection Agency
B) Land Pollution Act
C) Clean-Up Fund
D) Landfill Recovery Fund
E) Superfund

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

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​Copley Pharmaceutical, Inc. recently pled guilty to federal criminal charges for falsifying drug manufacturers' reports to the Food and Drug Administration. This is an example of a company that failed to exercise proper ____________.


A) ​business ethics.
B) ​lassiez-faire.
C) ​recordkeeping.
D) ​monetary policies.

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

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Much consumer-oriented legislation has grown out of the statement of six rights, which became known as the Consumer Bill of Rights.

A) True
B) False

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The Noise Control Act of 1972 established noise emission standards for all of the following except


A) aircraft.
B) airports.
C) railroads.
D) intracity cab services.
E) interstate motor carriers.

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

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Two additional rights added in the last decade are the right to consumer education and the right to courteous service.

A) True
B) False

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