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1. Which of the following is NOT a concern of the community stakeholder group?
A. Employment of local residents
B. Repayment of debt
C. Economic growth
D. Protection of the environment
2. Select the option that can be used to illustrate a utilitarian argument concerning ethical issues in marketing.
A. A man views a commercial for a car with enhanced features. This man bought a similar model a few months earlier. He prefers the new model and purchases it.
B. A man views a commercial for a car. He visits a store where the salesman shows him a model with enhanced features. He is convinced by the sales pitch and buys it.
C. A man views an elaborately crafted commercial for a car with enhanced features. This man cannot afford to buy a new car. He believes he needs the car and purchases it.
D. A man views a commercial for a car. He visits a store where a salesman shows him another brand with enhanced features. He considers buying the other model.
3. Cal is a junior research officer in a pharmaceutical company. His company has created a drug to treat sterility in women. One day Cal overhears two researchers discussing the side effects of the drug. During clinical trials, the drug reduced the immunity of some subjects. The two researchers also discuss how, despite knowledge of the side effects, management had decided market the drug. Management predicts that the large profits from its sale will lift the company’s sagging bottomline. Cal immediately writes an anonymous letter to the Food and Drug Commission. Does his action comply with Richard DeGeorge’s conditions for whistleblowing to be ethically permissible? Why?
A. Yes, resorting to internal channels would have only lead to the firm retaliating against him.
B. Yes, if those affected by the drug file a suit against the company, it could place the company in severe financial trouble. Reporting will prevent such a situation from occurring.
C. No, he should have first sought to prevent the manufacture of the drug by informing his superiors or top management in his own firm.
D. No, it is not very certain that the drug causes these side effects. Moreover, immunity deficiency can be easily overcome with drugs.
4. Which statement reflects Milton Friedman’s perspective on corporate social responsibility?
A. Friedman argued that the only responsibility a corporation has is to its stockholders.
B. Friedman argued that a corporation has its highest responsibility is to its employees.
C. Friedman argued that each corporation must make its own stance on corporate social responsibility, based upon its mission statement.
D. Friedman argued that a corporation is primarily responsible to its government.
5. An organization moves its operations overseas. A few years later, a newspaper carries an exposé on the environmental regulation violations occurring in the organization’s operations in the host country. After widespread protests by activists, the government in the company’s home country passes legislation regulating operations overseas. Identify the criticism of globalization policies that is reflected in this example.
A. They undermine local control and self-determination.
B. They are created by undemocratic bureaucracies.
C. They threaten local cultures and traditions.
D. They allow private organizations to supersede governmental decisions.
6. Which instance is an example of internal mechanisms working to prevent criminal behavior?
A. A company decides to pay adequate compensation to an employee who did not receive enough information to choose a suitable retirement plan.
B. A company creates a code of conduct manual after top management has discussions with the CEO & executives.
C. A company maintains a record of all past decisions on malpractices in ethics, which management consults in times of ethical conflicts.
D. A company has regular training programs & quizzes on its ethical policies to reinforce the ethical character to its employees.