Solutions 2-1
CHAPTER 2
Vocabulary
1. family leave 11. business ethics
2. pollution 12. whistle-blowing
3. recycling 13. sexual harassment
4. code of conduct 14. Sarbanes-Oxley Act
5. social audit 15. integrity
6. consumerism 16. sexism
7. Equal Employment Opportunity 17. sustainable
Commission (EEOC) 18. stakeholders
8. conflict of interest 19. product liability
9. corporate philanthropy 20. green marketing.
10. social responsibility 21. discrimination
Analysis of Learning Objectives
LO 2.1: 1. T, 2. T, 3. F, 4. F, 5. T.
LO 2.2: 1. D, 2. D, 3. A, 4. C.
LO 2.3: 1. preconventional 2. conventional 3. postconventional 4. T, 5. F, 6. T, 7. T
LO 2.4: 1. F, 2. F, 3. T, 4. F. 5. F, 6. T, 7. T, 8. T, 9. T, 10. F, 11. F, 12. T, 13. F.
LO 2.5: 1. F, 2. T, 3. T, 4. T
Self Review
True or False: 1. F, 2. T, 3. F, 4. F, 5. F, 6. T, 7. T, 8. T, 9. T, 10. T, 11. T,
12. F, 13. F. 14. F, 15. T.
Multiple Choice: 1. e, 2. c, 3. a, 4. d, 5. c, 6.b, 7. d, 8. e, 9. c, 10.c.
Application Exercises
1. It is probably unethical for these sales people to share such information since they each
have a responsibility to protect the interests of their own employer.
2. Under the Americans with Disabilities Act (1991) this employer is obligated to make the
appropriate accommodations so that the qualified candidate can work despite her
disability.
3. This is an example of the continuing inequity in pay between the genders. This company
needs to review its salary schedules to eliminate pay differentials for jobs where people
have like skills and responsibilities.
4. Patty may have to start smoking outside, even though this is her business. As the
employer, if she exposes employees to second-hand smoke she may later be held liable
for any smoke-related illness an employee develops.
Solutions 2-2
Short Essay Questions
1. Business managers have a whole range of responsibilities. They include:
a. Responsibilities to employees. Such issues as equal opportunity, fair pay, a safe
work environment, attention to the diversity of the work force, and prevention of
sexual harassment and sexism.
b. Protection of the environment. Business managers today need to be concerned
with minimizing pollution, recycling, promoting sustainable environmental
practices, conservation of scarce resources, and proper disposal of toxic waste.
c. Responsibilities to consumers. Business managers have an obligation to make
certain that products are safe, and that they have been truthful in advertising and
labeling. They also need to insure that consumers are informed and heard.
d. Responsibilities to the general public. In addition to environmental protection,
today’s business manager should be aware of public health issues and other needs
of society that business may be in a unique position to meet. This includes
practicing corporate philanthropy and social responsibility.
2. Firms can help build ethical awareness by articulating a code of conduct. People within
the organization must then learn how to apply critical thinking skills to reasoning out
ethical issues. The organization’s structure and processes must make it possible for
workers to translate their ethical conclusions into concrete actions. Finally, ethical
business practices depend on top management articulating and communicating the ethical
standards expected of those within the organization. Managers must personally
demonstrate ethical leadership and be prepared to take actions to enforce business ethics.
Above all, managers must themselves behave ethically. Employees are quick to notice
when ethical standards get no more than “lip service” from managers.
