What might be some benefits and costs of acting unethically in business? Distinguish between benefits and harms to the individual and benefits and harms to the firm.
> Are some products too dangerous to be marketed directly to the public? What regulations, if any, would you place on the marketing (as opposed to merely the production) of cigarettes? Handguns? Prescription drugs? Lock-pick sets?
> You work as an accountant at large accounting firm where your job leaves you with a lot of down time at the office in between assignments. You spend this time on your office computer developing a program that can make your job even more efficient and it
> While some companies block employee access to social networks such as Facebook and Twitter, others have a more permissive attitude. Explain several reasons why a company might choose to permit – or be indifferent to – employee access to social networks.
> A college provided its security officers with a locker area in which to store personal items. The security officers occasionally used the area as a dressing room. After incidents of theft from the lockers and reports that the employees were bringing we
> Term papers on practically every subject imaginable are available on the Internet. Many of those who post the papers defend their practice in two ways: (1) These papers are posted to assist in research in the same way any other resource is posted on t
> Construct a list of all the people who were adversely affected by Bernie Madoff’s Ponzi scheme. Who, among these people, would you say had their rights violated? What responsibilities, if any, did Madoff have to each of these constituencies?
> Spam, or spamming, refers to the use of mailing lists to blanket usenets or private e-mail boxes with indiscriminate advertising messages. Some people believe that spamming should be protected as the simple exercise of one’s First Amendment right to fre
> The term cybersquatting refers to the practice of: registering a large number of website domain names hoping to sell them at huge prices to others who may want the URL or who are prepared to pay to get rid of a potentially confusing domain name. For ins
> A customer service representative at an electronics store is surfing the Internet using one of the display computers. She accesses a website that shows graphic images of a crime scene. A customer in the store who notices the images is offended. Anothe
> Richard Fraser, an at-will independent insurance agent for Nationwide Mutual Insurance Company, was terminated by Nationwide and the parties disagree on the reason for Fraser's termination. Fraser argues that Nationwide terminated him because he filed co
> As you learned in this chapter, drug testing in the work place is a somewhat controversial issue in terms of employer responsibilities and employee rights. Using sources from the web, discuss the pros and cons of these programs.
> Marriott Resorts had a formal company party for more than 200 employees. At one point during the party, the company aired a videotape that compiled employees’ and their spouses’ comments about a household chore they hated. However, as a spoof, the vide
> As a project manager, Kelly is leading a team on an international business trip where she is scheduled to do a presentation on its project and to negotiate a deal. Just a few days before the trip, Kelly gets a call asking her whether she is willing to le
> You are a senior global human resources manager for a large apparel retailer that purchases goods from all over the world. The media has focused a great deal of attention on the conditions of your suppliers’ workplaces and, for myriad reasons including
> You run a small consulting business that serves a relatively diverse community and have 24 employees in professional positions. You are not subject to Executive Order 11246. You are concerned that, of the employees in professional positions, your workp
> As a result of rising health-care costs and the challenge to contain them, companies are trying to encourage employees to take better care of themselves, and some are even penalizing employees if they do not. Wal-Mart Inc. has announced that, starting i
> Do an Internet search for recent news stories about oil spills. Do any of those stories report behaviors that seem especially wise or unwise on the part of the oil companies involved? Do you think that controversies over big pipeline projects like the Ke
> A particular research study provides some evidence that those born between 1979 and 1994 are perceived as “impatient, self-serving, disloyal, unable to delay gratification and, in short, feeling that they are entitled to everything without working for it
> What is the difference in your mind, and in your common usage between a perception, a generalization, and a stereotype? Can you give an example of each? After doing so, go to the Web and find dictionary-equivalent definitions of the terms to determine
> We can distinguish due process from just cause in the following way: Imagine a company wanted to abandon the arbitrary nature of employment at will and ensure that its employees were treated fairly in any termination decision. Can you imagine how the e
> Review the discussion in the chapter regarding global labor challenges. Choose a specific issue, such as child labor or sweatshop labor. Go online and find a news story about a particular company accused of employing child labor or sweatshop labor. How d
> Fortune magazine complies a “Best Companies to Work For” list every year. Go to their website http://money.cnn.com/magazines/fortune/bestcompanies/2011/full_list/ and spot trends or similarities, if any, among the listed companies to find policies or pro
> Maya confides in her friend and colleague, Alicia, “My husband Gene is very sick. I haven’t shared this with anyone else at work because I didn’t want them to think I couldn’t manage my responsibilities. He was diagnosed last year with progressive Park
> Have you ever boycotted a product because you disagree with some action by the company that produces it? Would you boycott a product because the company advertises on a television program that promotes political views with which you disagree? Why or why
> Make a list of the five products on which you have spent the most money over the past 3 years. Using the internet, find corporate sustainability reports for the companies that produced those products or that had some responsibility in their production. A
> Take another look at the quote by Paul Hawken in the section titled “Exploring Enlightened Self-Interest” in this chapter. He seems to be saying that it is not acceptable to use social perception as a way to further one’s own interests (exclusively). Now
> What kind of organization would you like to work for? What would be the best? What would be the most realistic? Think about its structure, physical environment, lines of communication, treatment of employees, recruitment and promotion practices, policies
> As described in this chapter, the Americans with Disabilities Act requires firms to make reasonable accommodations for employees with disabilities. Consider such conditions as obesity, depression, dyslexia, arthritis, hearing loss, high blood pressure, f
> Some years ago, Nestlé S.A. CEO Peter Braeck-Letmathe argued, “Companies shouldn’t feel obligated to ‘give back’ to communities because they haven’t taken anything away. Companies should only pursue charitable endeavors with the underlying intention of m
> Court decisions in the United States have recognized corporations as having legal rights beyond the narrow right of being able to enter into contracts. Do you agree that corporations should have rights to free political speech? Religious freedom? Should
> This chapter has asked in several ways whether the social responsibility of the companies you patronize has ever made any difference to your purchasing decisions. Will it make any difference in the future as a result of what you have learned? Consider
> Which of the three models of CSR is most persuasive to you and why? Which do you believe is most prevalent among companies that engage in CSR efforts?
> Is there any action that Facebook could do that would lead you to delete your Facebook, Instagram, or WhatsApp account? If so, what would lead you to do this? If not, why not?
> What is your overall perspective on CSR after reviewing this chapter? If market forces do not encourage responsibility for social causes should a firm engage in this behavior? Does social responsibility apply only to firms or do consumers have a respon
> Wasta is the term used in the United Arab Emirates (UAE) for favoritism. In the UAE, it is a highly valued element of the culture. In fact, while nepotism might be kept under wraps or discussed in hushed tones in an American firm, Wasta is more likely to
> You are aware of inappropriate behavior and violations of your firm’s code of conduct throughout your operation. In an effort to support a collegial and supportive atmosphere, however, you do not encourage coworkers to report on their peers. Unfortunatel
> Assume you have a number of suppliers for your global apparel business. You have in place a code of conduct both for your workplace and for your suppliers. Each time you visit a particular supplier, even on unannounced visits, it seems as if that supplie
> What are some of the greatest benefits and hazardous costs of compliance-based cultures?
> Review the distinction between personal morality and matters of social ethics. Can you think of cases in which some decisions would be valuable as a matter of social policy but bad as a matter of personal ethics? Something good as a matter of personal et
> One element that surely impacts a firm’s culture is its employee population. While a corporate culture can shape an employee’s attitudes and habits, it will do so more easily if people who have already developed those attitudes and habits are hired in th
> Now that you have an understanding of corporate culture and the variables that impact it, how would you characterize an ethically effective culture, one that would effectively lead to a profitable and valuable long-term sustainability for the firm?
> You will need to draft a memorandum to your chief executive identifying the value of a triple-bottom-line approach, which would represent an enormous shift from the firm’s current orientation. What are the three key points that you could make and how wo
> Consider how you evaluate whether a firm is “one of the good guys” or not. What are some of the factors you use to make this determination? Do you actually know the facts behind each of those elements, or has your judgment been shaped by the firm’s repu
> Identify an industry in which you would like to work and choose a company for whom you would like to work, ideally. Use the company's website to learn about their core values and culture in order to find your best fit and then please explain your choice.
> With regard to employee recognition in the work place, what effects would a program like “employee of the month” have on the corporate culture, and what factors might lead you to recommend it as a motivational program for your company?
> Put yourself in the position of someone who is establishing an organization from the ground up. What type of leader would you want to be? How would you create that image or perception? Do you create a mission statement for the firm and/or a code of co
> A large United States–based corporation has decided to develop a mission statement and then conduct training on a new ethics program. It engages you to assist in these endeavors. What activities would you need to conduct in order to complete this projec
> To help understand an organizational culture, think about some organization to which you belong. Does your company, school, or fraternity/sorority have its own culture? How would you describe it? How does it influence individual decision-making and actio
> Can such character traits as honesty, loyalty, trustworthiness, compassion, and humility be taught? Do people learn to be selfish, greedy, or aggressive, or do these traits come naturally?
> The right of private property is often described as a “bundle” of rights. What rights are involved in ownership of property? Given this understanding, should shareholders be considered owners of corporations?
> If the right to autonomy is the right to make your own free and deliberate choices, what limits do you think there must be on that right? Does the right to autonomy literally allow us to do anything we want?
> Some political philosophers understand the ethical foundations of legislatures to be utilitarian, while the ethical foundation of the judiciary is deontological. How would you explain this distinction?
> Why might economic growth be considered a utilitarian goal?
> Do an internet search on international human rights and/or fundamental moral rights. Can you find any moral rights that seem to be universally acknowledged across all cultures?
> What ethical disputes or dilemmas have you experienced in your own workplace? What about in a club or student group you belong to? How were these disputes or dilemmas resolved?
> What makes a decision or issue an ethical one? How would you explain the differences between ethical/non-ethical, on one hand, and ethical/unethical, on the other?
> Do professionals such as physicians, accountants, and lawyers have duties and obligations that other people do not? Where would such duties come from?
> Not all ethical norms get entrenched in law. In which philosophical tradition—consequences, rights, or virtue—are we most likely to find norms that have ended up becoming laws?
> Lisa is trying to raise funds to support the creation of a free clinic in a poor neighbor-hood in her hometown. She has been trying very hard; but she has not been able to raise enough money to get the clinic up and running. One day, she gets a huge chec
> Why might legal rules be insufficient for fulfilling one’s ethical responsibilities? Can you think of cases in which a businessperson has done something legally right, but ethically wrong? What about the opposite – are there situations in which a busines
> As a class exercise, write a brief account of any unethical or ethically questionable experience you have witnessed in a work context. Read and discuss the examples in class, keeping the authors anonymous. Consider how the organization allowed or encour
> Many people have blamed the global financial crisis of 2008-2009 on a single value or motive, namely greed. How would you define greed? How common do you think true greed is in the general population? Do you think it is more common on, say, Wall Street,
> How can your global firm best ensure that it is taking into account the perceptual differences that may exist as a result of diverse cultures, religions, ethnicities, and other factors when creating a worldwide marketing plan?
> Describe the qualities you believe are necessary in an “ethical leader.” Provide support for your point of view and explain why a leader should display these qualities in order to be considered “ethical.” Then identify someone you believe embodies these
> Your CEO recognizes you as having unusually strong skills in decision making and communications, and so she asks for guidance on how to best communicate her plans for an imminent reduction in your company’s workforce. What are some of the key strategies
> What one small change do you think would have the biggest impact on the world today? Share it in a brief essay, then convince your reader why it is so important that she or he should also care about that issue to the same extent. It may be effective to u
> Consider your own personal values and explain where they originated. Can you pinpoint their origins? To what degree have you chosen your own values? To what degree are your own values products of your family, your religious or cultural background, or you
> What values do you think motivated the engineers at Volkswagen who devised the method for falsifying emissions tests? How do you think their motivation may have evolved over the years that the scheme was in play? What do you think they would have said if
> Think about a situation in which you have witnessed someone engaging in unethical behavior but in which you failed to do anything about it. (If you can’t think of an example from your own experience, imagine yourself in the position of someone you know a
> Every year, Ethisphere Magazine publishes a list of the world's most ethical companies. Go to their website; find and evaluate their rating methodology and criteria; and engage in an assessment (i.e. provide suggestions for any modifications you might ma
> Questions of ethics and values also arise frequently in a variety of university courses—particularly in business and professional schools. Are there other courses in your school’s curriculum that talk about “the right thing to do,” without necessarily us
> During 2018, Fueltronics spends $200,000 on several different research projects to gain new knowledge about the use of alternative fuels to operate motorized vehicles. Because one of the projects shows very high promise, the company spends an additional
> The following condensed information is reported by Sporting Collectibles. Required: 1. Calculate the following profitability ratios for 2024: a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity. 2. Determi
> Refer to the information provided for Plasma Screens Corporation in E12â€“7. Required: 1. Calculate the following profitability ratios for 2024: a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on
> The balance sheets for Plasma Screens Corporation and additional information are provided below. Additional Information for 2024: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250. Required: 1. Calculate t
> The 2024 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. Industry averages for the following four risk ratios
> The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each amount as a percentage of total assets. 2. Prepare a horizontal analys
> Refer to the information provided in E12â€“2. Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Data from E12-2: The income statements for Federer Sports Apparel for 2025 and 2024 are presented below.
> The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a vertical analysis of the data for 2025 and 2024.
> Portions of the financial statements for Peach Computer are provided below. Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method.
> The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: Additional Information for 2024: 1.â€‚Net income is $79,000. 2.â€‚The company purchases $110,000 in equipment. No eq
> Beaver Construction purchases new equipment for $50,400 cash on April 1, 2024. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipm
> Mega Screens, Inc., reports net sales of $3,200,000, cost of goods sold of $2,000,000, and income tax expense of $150,000 for the year ended December 31, 2024. Selected balance sheet accounts are as follows: Required: Calculate cash received from custome
> Refer to the information in E11–12. Required: Calculate net cash flows from financing activities. Data from E11-12: Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise): a. A building with a
> Refer to the information in E11-10. Required: Calculate net cash flows from financing activities. Data from E11-10: The following summary transactions occurred during the year for Bluebonnet.
> The following summary transactions occurred during the year for Bluebonnet. Required: Calculate net cash flows from investing activities.
> Consider each of the following independent situations: Required: For each situation, calculate the missing amount.
> Refer to the information in E10–7. In its first year of operations, Finishing Touches has net income of $160,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $2,400 on all preferred shares outst
> On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: During January 2024, the following transactions occur: January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000. January
> Financial information for Forever 18 includes the following selected data: Required: 1. Calculate earnings per share in 2023 and 2024. Did earnings per share increase in 2024? 2. Calculate the price-earnings ratio in 2023 and 2024. In which year is the s
> The financial statements of Friendly Fashions include the following selected data (in millions): Required: 1. Calculate the return on equity in 2024. 2. Calculate the dividend yield in 2024. 3. Calculate earnings per share in 2024. 4. Calculate the price
> United Apparel has the following balances in its stockholders’ equity accounts on December 31, 2024: Treasury Stock, $850,000; Common Stock, $600,000; Preferred Stock, $3,600,000; Retained Earnings, $2,200,000; and Additional Paid-in Capital, $8,800,000.
> Refer to the information in BE5–7, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $600 (debit). The company still estimates future uncollectible accounts to be 12% of Accounts Receivable. What is the adjustin
> Power Drive Corporation has the following beginning balances in its stockholdersâ€™ equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the
> Power Drive Corporation has the following beginning balances in its stockholders’ equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended Decembe
> Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders’ equity in 2
> On February 3, a company provides services on account for $25,000, terms 2/10, n/30. On February 9, the company receives payment from the customer for those services on February 3. Record the service on account on February 3 and the collection of cash on
> On January 1, 2024, Beaver Tours financed the purchase of a new building by borrowing $600,000 from the bank using a 30-year, 6% note payable. Payments of $3,597.30 are due at the end of each month, with the first installment due on January 31, 2024. Rec
> On December 18, Intel receives $260,000 from a customer as down payment on a total sale of $2.6 million for computer chips to be completed on January 23. On January 23, the computer chips were delivered and the remaining cash was received from the custom
> On April 1, 2024, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments is $100,000. Record the lease.