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Chapter 9
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Social Responsibility
and Business Ethics
CHECK FOR UNDERSTANDING
PARTI
Directions: Indicate whether each statement below is correct or incorrect by placing a check mark on the line
under true or false at the right.
TRUE
1. The obligation of a business to contribute to the well-being of a community is called
business ethics.
2. Protection of the environment is not a concern of business.
3. Businesses must weigh the interests and concerns of many groups when considering
their own social responsibility.
4. A non-renewable resource is difficult to replace once it is used up.
5. Having a staff that is made up of various cultures in our society is a work force
issue for our businesses.
6. A healthy work force is considered to be a productive work force.
7. Ethics are principles of morality and/or rules of conduct.
8. A business that takes action on social responsibility issues does not incur any
monetary costs.
9. A code of ethics is a statement of behavior that applies only to the officials of the
company.
10.The strong moral character of executives and the decisions they make set ethical
standards for the business firm.
FALSE
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PART II
Directions: For each of the following statements describing a business action, indicate whether the action is a
social responsibility or an ethical matter. In the column at the right, write ā€œSā€ if is social responsibility and ā€œEā€ if
it is an ethical issue.
BUSINESS ACTION
1.
2.
3.
4
5.
A business implements technology that reduces the air pollution from its factor.
A company removes from the market a product that it found to be dangerous for children.
A business remodels its office to accommodate physically challenged workers.
A company includes a hiring policy prohibiting age discrimination.
A business refuses to do business in a country where government officials expect gifts and
special favors.
S OR E
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