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Which of the following best exemplifies a clothing retailer that supports many local charities but occasionally engages in questionable pricing practices?


A) Socially responsible firm involved in unethical practices
B) Neither ethical nor socially responsible
C) A firm with a strong focus on the triple bottom line
D) Both ethical and socially responsible
E) Ethical firm not involved with the larger community

F) None of the above
G) C) and D)

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Which of the following is addressed by a company that undertakes corporate social responsibility?


A) Its customer service responsibility
B) The ethics of its business operations
C) Its competitive advantage
D) The creation of business opportunities
E) The profitability of its business

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

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When a firm decides to integrate ethical decision making into its strategic planning process, which of the following questions would most likely be asked at the planning phase?


A) Did any of the firm's actions have a negative impact on any stakeholder group?
B) Does the firm want to include a commitment to ethics in its mission statement?
C) Is the product priced fairly?
D) Is the firm prepared in the event of an ethical lapse?
E) Should the firm be targeting this market segment with its product?

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

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Platonic Inc., a wedding consultant, has decided to integrate ethical decision making into its strategic planning process. -Platonic is evaluating the manner in which its products are being advertised and sold in a particular market.In the context of strategic planning, the company is in the stage of:


A) planning.
B) control.
C) implementation.
D) initiation.
E) design.

F) None of the above
G) A) and B)

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Kathy discovers that her manager is using company funds for his own personal expenses.She is indebted to her manager because he was the only person who would hire her even though she had a criminal record.Though she realizes that she cannot justify her actions, she thinks she should return his favour and decides not to expose him.Given this information, Kathy's response would fail the test of:


A) publicity.
B) moral mentor.
C) admired observer.
D) golden rule.
E) transparency.

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

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A firm addresses the issue of being prepared to support the development of an ethical climate during the phase of:


A) planning.
B) implementation.
C) control.
D) design.
E) processing.

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

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A

Which of the following is true about creating an ethical climate in a workplace?


A) It presumes employees to be exclusively responsible for their ethical conduct.
B) It requires a set of explicit rules and implicit understandings that govern all the transactions of a firm.
C) It involves enforcing the ethical values of the top management on unwilling employees.
D) It involves developing different interpretations of the company's stated ethical values.
E) It requires training employees to forgo their personal goals and prioritize the firm's goals.

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

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The mission statement of Wingster Inc., a manufacturer of paper, cards, and stationery, begins by saying, "We make our products skillfully. Please use them thoughtfully." The statement further mentions that the company is environmentally conscious, dedicated to employee growth and development, and follows ethical sales practices. -Which of the following parts of the company's mission statement ties closely with its decision to use recycled pages to manufacture its writing books?


A) "We make our products skilfully."
B) "We are environmentally conscious."
C) "Please use our products thoughtfully."
D) "We are dedicated to employee growth."
E) "We follow ethical sales practices."

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

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As part of its emergency response plan to a crisis situation related to the safety of employees, Frazer Inc.closed down several of its steel-cutting factories.Although the media reported that Frazer's decision had a ripple effect throughout the steel industry, the company's reputation, credibility, and trustworthiness did not suffer.In the context of strategic planning, Frazer considered whether the firm:


A) should change its sourcing strategy.
B) should relocate its production to an underdeveloped country.
C) should change its target market.
D) had systems in place to respond to emergency requirements.
E) had the standing to impact other firms in the same industry.

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

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Wine & Cheese Diners is experiencing a decrease in sales because of its operation in unclean surroundings. The renovation of the restaurant would require a lot of money and time. It has identified the customers, employees, and local residents who are its stakeholders and has gathered the data it will need to make an ethical decision to solve the issue. -As the final step of ethical decision making at Wine & Cheese Diners, reviewing the various options and choosing a course of action will be done by:


A) top managers.
B) salespeople.
C) customers.
D) community leaders.
E) government officials.

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

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A

Wine & Cheese Diners is experiencing a decrease in sales because of its operation in unclean surroundings. The renovation of the restaurant would require a lot of money and time. It has identified the customers, employees, and local residents who are its stakeholders and has gathered the data it will need to make an ethical decision to solve the issue. -Which of the following parties are relevant to the decision-making process in the Wine & Cheese Diners' issue?


A) Legal advisor of the firm
B) Flour supplier for the firm
C) Other branches of the restaurant
D) All the stakeholders
E) Competitors

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

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In the context of strategic planning process, charges that firms use sweatshop labour to produce their products arise due to lapses during the phase of:


A) planning
B) implementation
C) control
D) initiation
E) design

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

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An employee is generally expected to be socially responsible in order to fall within the norms of corporate ethical behaviour.

A) True
B) False

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Safe Health is an association that approves food products as being safe for consumption.Quick Breakfast Inc., a manufacturer of cereals, insists on quality standards and has a Safe Health seal on all its products.In this scenario, Quick Breakfast is demonstrating:


A) smart environmental marketing.
B) ways to benefit from a new social trend.
C) cost-effective ways of marketing.
D) socially responsible marketing.
E) ways to address consumerism.

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

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D

Helten Inc., an automobile company, has emergency response plans in place just in case it ever encounters an industrial accident.Helten also ensures that its emergency systems are adaptive to the changing external conditions.In the context of strategic planning, Helten's activity occurs in the phase of:


A) planning.
B) implementation.
C) control.
D) design.
E) grouping.

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

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Firms with strong ethical climates tend to be more socially responsible.

A) True
B) False

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During which phase of the strategic marketing plan would a firm address the issue of location of its production in another country?


A) Planning
B) Implementation
C) Control
D) Evaluation
E) Processing

F) All of the above
G) B) and C)

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Establishing an ethical business climate requires all employees to be dedicated to that goal because:


A) their career prospects solely depend upon their ethical decisions.
B) managers rarely enforce values unless employees ask them to do so.
C) customers are only vaguely interested in a firm's ethical standards.
D) employees lack the visionary scope to understand the ramifications of unethical behaviour.
E) the roots of ethical conflict often are the competing values of individuals.

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

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Wine & Cheese Diners is experiencing a decrease in sales because of its operation in unclean surroundings. The renovation of the restaurant would require a lot of money and time. It has identified the customers, employees, and local residents who are its stakeholders and has gathered the data it will need to make an ethical decision to solve the issue. -Which of the following should be Wine & Cheese Diners' next step?


A) Pursuing legal discourse
B) Reducing its number of employees and shifting the location of the restaurant
C) Identifying the issues
D) Choosing a course of action
E) Brainstorming and evaluating alternatives

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

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In a meeting with the development team, the brand manager of TalkEasy Mobiles Inc. discovers a major design flaw in the company's latest offering, a solar cellphone. The manager weighs the cost of recalling thousands of phones against the cost of potential lawsuits against the firm. -When the manager weighs the cost of recalling the phones against the cost of potential lawsuits, he is:


A) being innately corrupt.
B) taking voluntary actions to address the ethical, social, and environmental impacts of its business operations.
C) choosing between conflicting outcomes.
D) passing competitor advantage to a competing firm.
E) proving he barely understands the consequences of unethical actions.

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

Correct Answer

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