Aaron J Hudson
Intro to Business
Prof. Silverman
Review Questions: Chapter 2
1) 3 reasons or factors that may lead an individual with high ethical values to be a little
less ethical when it comes to business are:
a) Individual Factors
b) Social Factors
c) Opportunity Factors
2) Once an employee is aware of the company’s code of ethics and the punishment for
violating these codes, he/she will be less likely to make an unethical choice or decision.
3) The years following the Great Depression caused the public masses to demand action
against unemployment and the terrible social conditions. Once inaugurated, President
Franklin D. Roosevelt passed laws to correct the abuse by businesses, instituted programs
to boost economy & better social conditions, and social services were provided for
individuals who met a certain criteria.
4) A couple of major differences between socioeconomic and economic models are:
a) socioeconomic models maintain a dual loyalty to its stockholders as
well as the society it resides, while the economic models feel that it
owes it’s stockholders 100% loyalty.
b) socioeconomic models has a larger role for the government to play
where the economic model has a very small role for the government to
play
5) The pros of socioeconomic models are:
1) Involving the society only makes sense, since the business is apart of
that society
1) Today’s businesses have the means and resources to deal with social
issues.
2) Be resolving social problems, the results are a more stable society
creating long term profitability.
3) Being socially responsible would mean less intervention by the
government.
The cons of socioeconomic models are:
1) Business managers’ primary responsibility is its’ stockholders, not
society. Time spent on social issues is less time spent on providing
returns on stockholders investments.
2) Corporate time, money, and talent should be focused on maximizing
profits, not social issues.
3) Social problems affect society; individual business should not be
responsible for the masses.
4) Social problems are the problems of the elected government officials,
let them do their job.
6) 6 rights of consumers are:
1) Right to Safety: Must be safe for intended use, must include thorough
directions for proper use, and must be tested to ensure product quality
and reliability.
2) Right to be Informed: Must have total access to info about product
before purchase.
3) Right to Choose: Consumer must have choice of products, offered by
different manufactures or sellers to satisfy a particular need.
4) Right to be Heard: Consumers voice will be heard if they have a
complaint about any product.
5) Right to Consumer Education: Consumer has right to be fully
informed about rights as a consumer.
6) Right to Service: Consumer is entitled to convenience, courtesy, and
responsiveness.
7) In history, women have always been considered the homemaker, never equivalent to
men with regards to employment. This is the reason why women have been considered a
minority in the workforce.
8) The goal of affirmative action programs is to increase the number of minorities on all
levels of the workforce. This happens by employing the same number of minorities in
the business as are in the surrounding community.