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Business culture affects ethical behavior in competition.Briefly discuss the two most common kinds of unethical competitive behavior.In answering, provide concrete examples for both.

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The two kinds of unethical behavior that...

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Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles.The recall cost the company $35 million and $40 million more was lost in sales.Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."


A) reactionary caution
B) preemptive liability avoidance
C) transactional marketing
D) profit responsibility
E) stakeholder responsibility

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

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Economic espionage refers to


A) the destruction of a competitor's goods or services through physical damage of property or damage to their reputation.
B) knowledge of wrongdoing within a firm that goes unreported in order to better a worker's personal standing in the firm.
C) fraudulent activities by a firm whereby the consumer is intentionally sold inferior goods or provided with inferior services for the sake of a larger profit.
D) the clandestine collection of trade secrets from foreign countries.
E) the clandestine collection of trade secrets or proprietary information about a company's competitors.

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

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Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its


A) development of a low-carb beer.
B) annual sponsorship of the Super Bowl.
C) exclusive use of ingredients from American manufacturers and suppliers.
D) alcohol awareness and education programs.
E) commitment to maintaining the lowest prices possible without sacrificing taste.

F) None of the above
G) All of the above

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Marketing efforts to produce, promote, and reclaim environmentally sensitive products are referred to as


A) recycled marketing.
B) cause marketing.
C) green marketing.
D) environmental marketing.
E) recycling.

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

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According to funder Howard Schultz, Starbucks has built a company that balances profitability with


A) market share.
B) a social conscience.
C) standards of excellence.
D) measureable annual growth.
E) sustainable development.

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

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Social audit refers to


A) a systematic assessment of a firm's compliance to fair hiring practices and commitment to diversity.
B) a company-wide assessment of employees at all levels to determine the current climate of personal attitudes towards their job and their workplace.
C) an annual assessment of how closely individual employs, departments, divisions, and the firm as a whole have been able to adhere to company policies regarding social responsibility.
D) a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.
E) a measurement device used by firms to select employees from a hiring pool based upon the potential hire's ability to work with a diverse group of people and adapt to different social settings.

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

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Which of the following statements describe the activities of a whistle-blower?


A) Mattel employees were sorry that 150 of the 10 million Power Wheels cars and trucks the company sold had caught on fire.
B) Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine.
C) One of the Mattel Power Wheel cars that caught on fire and slightly burned its rider was owned by a former Mattel employee.
D) The Consumer Product Safety Commission investigated the fires and ordered a recall for repair of all 10 million units that had been sold.
E) An employee of Mattel reported to the CPSC that Mattel was knowingly manufacturing an electrical system for Power Wheels that would catch on fire after long use.

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

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The Consumer Awareness and Education Department was established within Anheuser-Busch to


A) counteract negative publicity while promoting the positive aspects of moderate beer consumption.
B) encourage recycling of both aluminum cans and glass bottles not only by ultimate consumers but by suppliers as well.
C) educate employees about the importance of serving as role models for their firm by drinking responsibly themselves.
D) promote responsible drinking and deter underage drinking and alcohol abuse.
E) promote Anheuser-Busch as more socially responsible than its competitors, to promote brand loyalty.

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

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Economic espionage is most likely to occur in which types of industries?


A) fashion design and textiles
B) entertainment and television
C) high tech electronics and aerospace
D) intellectual property (print)
E) beverage industry (alcoholic and non-alcoholic)

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

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Starbucks defines supplier diversity as


A) the selection of suppliers based upon their ability to supply not only coffee products but at least one other type of product such as tea, chocolate beans, etc.in order to counteract any negative environmental force that might impede supply and/or production.
B) selection of suppliers from multiple countries, on almost every continent, to offset any possible environmental force (such as plant blight) that would affect one country or continent but not another.
C) the guarantee by suppliers that at least 5% of profits that result from Starbucks generated business are returned to the suppliers' local community or country for charitable purposes.
D) a company that is 51% owned, operated and managed by women, minorities, or socially disadvantaged individuals while still meeting Starbucks quality standards.
E) a company that can prove that it has never discriminated in its hiring or firing practices for a period of at least 5 years prior to negotiating a Starbuck contract.

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

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The unauthorized use of intellectual property can severely affect the owners of that property; it can also


A) level the playing ground for less developing nations by eliminating years of research time.
B) accelerate innovation in that industry, as new and improved versions enter the marketplace.
C) have a negative impact on the economy through the loss of jobs, wages, or tax revenue.
D) have a negative impact on an entire nation's cultural value system.
E) enhance a product's legitimate sales by generating unpaid-for public interest.

F) D) and E)
G) All of the above

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Practices that include filing warranty claims after the claim period, misredeeming coupons, making fraudulent returns of merchandise, providing inaccurate information on credit applications, tampering with utility meters, tapping cable TV lines, duplicating copyrighted music and software, and submitting phony insurance claims are examples of


A) normal and reasonable consumer behavior.
B) unethical practices of consumers.
C) acceptable business costs.
D) costs to be passed along to shareholders.
E) violations of the Consumer Bill of Rights.

F) C) and D)
G) B) and C)

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The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as


A) moral imperative.
B) social responsibility.
C) profit responsibility.
D) utilitarianism.
E) moral idealism.

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

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