{"id":40,"date":"2015-04-21T19:02:36","date_gmt":"2015-04-21T19:02:36","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&#038;p=40"},"modified":"2015-10-05T21:06:06","modified_gmt":"2015-10-05T21:06:06","slug":"reading-misgoverning-corporations-an-overview","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/chapter\/reading-misgoverning-corporations-an-overview\/","title":{"raw":"Reading: Ethical and Unethical Business Decisions","rendered":"Reading: Ethical and Unethical Business Decisions"},"content":{"raw":"<h2>Misgoverning Corporations<\/h2>\r\nAt the very beginning of this module you watched a video that showed two young, powerful, and ultimately criminal corporate executives from WorldCom head to jail. \u00a0For many of you this story is probably either ancient news\u00a0or just another expos\u00e9\u00a0on corporate malfeasance. But it's worth learning a little more about what happened behind the scenes in order to see\u00a0how unethical decisions get made\u2014and by whom. It's often the executives who star\u00a0in the headlines when such scandals break, since they carry the most responsibility for the company's\u00a0actions, but employees all the way down can play their role, too\u2014by joining in, by caving to pressure from the top, or by refusing to play along.\r\n<h3>\"Mommy, Why Do You Have to Go to Jail?\"<\/h3>\r\nThe one question Betty Vinson would rather\u00a0avoid is \u201cMommy, why do you have to go to jail?\u201d\u00a0Vinson graduated with an accounting degree from Mississippi State and married her college sweetheart. After a series of jobs at small banks, she landed a midlevel accounting job at WorldCom, at the time still a small long-distance provider. Sparked by the telecom boom, however, WorldCom soon became a darling of Wall Street, and its stock price soared. Now working for a wildly successful company, Vinson rounded out her life by reading legal thrillers and watching her twelve-year-old daughter play soccer.\r\n\r\nHer moment of truth came in mid-2000, when company executives learned that profits had plummeted. They asked Vinson to make some accounting adjustments to boost income by $828 million. She knew that the scheme was unethical (at the very least) but gave in and made the adjustments. Almost immediately, she felt guilty and told her boss that she was quitting. When news of her decision came to the attention of CEO Bernard Ebbers and CFO Scott Sullivan, they hastened to assure Vinson that she\u2019d never be asked to cook any more books. Sullivan explained it this way: \u201cWe have planes in the air. Let\u2019s get the planes landed. Once they\u2019ve landed, if you still want to leave, then leave. But not while the planes are in the air.\u201d\u00a0Besides, she\u2019d done nothing illegal, and if anyone asked, he\u2019d take full responsibility. So Vinson decided to stay. After all, Sullivan was one of the top CFOs in the country; at age thirty-seven, he was already making $19 million a year.\u00a0Who was she to question his judgment?\r\n\r\nSix months later, Ebbers and Sullivan needed another adjustment\u2014this time for $771 million. This scheme was even more unethical than the first: It entailed forging dates to hide the adjustment. Pretty soon, Vinson was making adjustments on a quarterly basis\u2014first for $560 million, then for $743 million, and yet again for $941 million. Eventually, Vinson had juggled almost $4 billion, and before long, the stress started to get to her: She had trouble sleeping, lost weight, looked terrible, and withdrew from people at work. But when she got a promotion and a $30,000 raise, she decided to hang in.\r\n\r\nBy spring 2002, however, it was obvious that adjusting the books was business as usual at WorldCom. Vinson finally decided that it was time to move on, but, unfortunately, an internal auditor had already put two and two together and blown the whistle. The Securities and Exchange Commission charged WorldCom with fraud amounting to $11 billion\u2014the largest in U.S. history. Seeing herself as a valuable witness, Vinson was eager to tell what she knew. The government, however, regarded her as more than a mere witness. When she was named a co-conspirator, she agreed to cooperate fully and pleaded guilty to criminal conspiracy and securities fraud. And that\u2019s why Betty Vinson\u00a0spent\u00a0five months in jail. But she wasn't\u00a0the only one doing time: Scott Sullivan\u2014who claimed he was innocent\u2014got sentenced to jail for five years, and Bernie Ebbers\u2014who swore he was innocent also\u2014got locked up for twenty-five years.\r\n\r\nSo where did Betty Vinson, mild-mannered midlevel executive and mother, go wrong? How did she manage to get involved in a scheme that not only bilked investors out of billions but also cost seventeen thousand people their jobs? Ultimately, of course, we can only guess. Maybe she couldn\u2019t say no to her bosses; maybe she believed that they\u2019d take full responsibility for her accounting \u201cadjustments.\u201d Possibly she was afraid of losing her job. Perhaps she didn\u2019t fully understand the ramifications of what she was doing. What we\u00a0do\u00a0know is that she disgraced herself and headed for jail.\r\n<h3 class=\"title editable block\">Misgoverning Corporations<\/h3>\r\nThe WorldCom situation is not an isolated incident.\r\n<ul>\r\n\t<li>In fall 2001, executives at Enron, an energy supplier, admitted to accounting practices concocted to overstate the company's income over a period of four years. In the wake of the company's collapse, stock prices plummeted from $90 to $1 a share, inflicting massive financial losses on the investment community. Thousands of employees lost not only their jobs but their retirement funds, as well.<\/li>\r\n\t<li>Officials at Adelphia, the nation's sixth-largest cable company, disclosed that founder and CEO John Rigas had treated the publicly owned firm as a personal piggy bank, siphoning off <em>billions<\/em> of dollars to support his family's extravagant lifestyle and bankrupting the company in the process.<\/li>\r\n\t<li>\u00a0CEO Dennis Koslowzki of conglomerate Tyco International was apparently confused about what was his and what belonged to the company. Besides treating himself to a $30 million estate in Florida and a $7 million Park Avenue apartment, Koslowzki indulged in a taste for expensive office accessories\u2014such as a <em>$15,000 umbrella stand<\/em>, a $17,000 traveling toilette box, and a $2,200 wastebasket\u2014that eventually drained $600 million from company coffers.<\/li>\r\n\t<li>Bernie Madoff, founder of Bernard L. Madoff Investment Securities, is alleged to have run a giant Ponzi scheme that cheated investors out of up to <em>$65 billion.<\/em> Madoff convinced investors to give him large sums of money. In return, he gave them an impressive 8 percent to 12 percent return a year. But Madoff <em>never<\/em> really invested their money. <em>Instead, he kept it for himself<\/em>. Thousands of investors, including many of his wealthy friends, not-so-rich retirees who trusted him with their life savings, and charitable foundations, were financially ruined. All those harmed by Madoff either directly or indirectly were pleased when he was <em>sentenced to jail for 150\u00a0years<\/em>.<\/li>\r\n<\/ul>\r\n<div>\r\n\r\nAre these cases merely aberrations? \u00a0Why do such incidents happen (and with such apparent regularity)? Who are the usual suspects? How long until the next corporate bankruptcy record is set? What action can be taken\u2014by individuals, organizations, and the government\u2014to discourage such behavior?\r\n<div id=\"collins-ch02_s01_s01\" class=\"section\">\r\n<h2 class=\"title editable block\">The Idea of Business Ethics<\/h2>\r\n<p id=\"collins-ch02_s01_s01_p01\" class=\"para editable block\">It\u2019s in the best interest of a company to operate ethically. Trustworthy companies are better at attracting and keeping customers, talented employees, and capital. Those tainted by questionable ethics suffer from dwindling customer bases, employee turnover, and investor mistrust.<\/p>\r\n<p id=\"collins-ch02_s01_s01_p02\" class=\"para editable block\">Let\u2019s begin this section by addressing one of the questions that we posed previously: What can individuals, organizations, and government agencies do to foster an environment of ethical and socially responsible behavior in business? First, of course, we need to define two terms: <em class=\"emphasis\">business ethics<\/em> and <em class=\"emphasis\">social responsibility<\/em>. They\u2019re often used interchangeably, but they don\u2019t mean the same thing.<\/p>\r\n\r\n<div id=\"collins-ch02_s01_s01_s01\" class=\"section\">\r\n<h3 class=\"title editable block\">What Is Ethics?<\/h3>\r\n<p id=\"collins-ch02_s01_s01_s01_p01\" class=\"para editable block\">You probably already know what it means to be ethical: to know right from wrong and to know when you\u2019re practicing one instead of the other. At the risk of oversimplifying, then, we can say that\u00a0business ethics is the application of ethical behavior in a business context. Acting ethically in business means more than simply obeying applicable laws and regulations: It also means being honest, doing no harm to others, competing fairly, and declining to put your own interests above those of your company, its owners, and its workers. If you\u2019re in business you obviously need a strong sense of what\u2019s right and what\u2019s wrong (not always an easy task). You need the personal conviction to\u00a0<em class=\"emphasis\">do<\/em> what\u2019s right, even if it means doing something that\u2019s difficult or personally disadvantageous.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<div id=\"collins-ch02_s01_s02\" class=\"section\">\r\n<h3 class=\"title editable block\">What Is Social Responsibility?<\/h3>\r\n<p id=\"collins-ch02_s01_s02_p01\" class=\"para editable block\">Corporate social responsibility deals with actions that affect a variety of parties in a company\u2019s environment. A socially responsible company shows concern for its stakeholders\u2014anyone who, like owners, employees, customers, and the communities in which it does business, has a \u201cstake\u201d or interest in it. We\u2019ll discuss corporate responsibility later in this module. At this point, we\u2019ll focus on ethics.<\/p>\r\n\r\n<\/div>\r\n<div id=\"collins-ch02_s01_s03\" class=\"section\">\r\n<h2 class=\"title editable block\">How Can You Recognize an Ethical Organization?<\/h2>\r\n<p id=\"collins-ch02_s01_s03_p01\" class=\"para editable block\">One goal of anyone engaged in business should be to foster ethical behavior in the organizational environment. How do we know when an organization is behaving ethically? Most lists of ethical organizational activities include the following criteria:<\/p>\r\n\r\n<ul id=\"collins-ch02_s01_s03_l01\" class=\"itemizedlist editable block\">\r\n\t<li>Treating employees, customers, investors, and the public fairly<\/li>\r\n\t<li>Making fairness a top priority<\/li>\r\n\t<li>Holding every member personally accountable for his or her action<\/li>\r\n\t<li>Communicating core values and principles to all members<\/li>\r\n\t<li>Demanding and rewarding integrity from all members in all situations\u00a0(<span id=\"fwk-collins-fn02_013\" class=\"footnote\">Alan Axelrod, <em class=\"emphasis\">My First Book of Business Ethics,\u00a0<\/em>Philadelphia: Quirk Books, 2004, p 7.)<\/span><\/li>\r\n<\/ul>\r\n<p id=\"collins-ch02_s01_s03_p02\" class=\"para editable block\">Whether you work for a business or for a nonprofit organization, you probably have a sense of whether your employer is ethical or unethical. Employees at companies that consistently make\u00a0<em class=\"emphasis\">Business Ethics<\/em> magazine\u2019s list of the \u201c100 Best Corporate Citizens\u201d regard the items on the previous list as business as usual in the workplace. Companies that routinely win good-citizenship awards include Procter &amp; Gamble, Hewlett-Packard, Intel, Avon Products, Cisco Systems, and Merck (<span id=\"collins-5300-20111111-093529-160882\" class=\"footnote\">\u201c<a href=\"http:\/\/thecro.com\/content\/100-best-corporate-citizens\" target=\"_blank\">100 Best Corporate Citizens for 2010<\/a>,\u201d <em class=\"emphasis\">Corporate Responsibility Magazine<\/em>, no. 11, Spring 2011,\u00a0accessed September 5, 2011).<\/span><\/p>\r\n<p id=\"collins-ch02_s01_s03_p03\" class=\"para editable block\">By contrast, employees with the following attitudes tend to suspect that their employers aren\u2019t as ethical as they should be:<\/p>\r\n\r\n<ul id=\"collins-ch02_s01_s03_l02\" class=\"itemizedlist editable block\">\r\n\t<li>They consistently feel uneasy about the work they do.<\/li>\r\n\t<li>They object to the way they\u2019re treated.<\/li>\r\n\t<li>They\u2019re uncomfortable about the way coworkers are treated.<\/li>\r\n\t<li>They question the appropriateness of management directives and policies (<span id=\"fwk-collins-fn02_015\" class=\"footnote\">Alan Axelrod, <em class=\"emphasis\">My First Book of Business Ethics,\u00a0<\/em>Philadelphia: Quirk Books, 2004, p 7).<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n<h2>Check Your Understanding<\/h2>\r\nAnswer the question(s) below to see how well you understand the topics covered in this section. This short quiz does <strong>not<\/strong> count toward your grade in the class, and you can retake it an unlimited number of times.\r\n\r\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/181","rendered":"<h2>Misgoverning Corporations<\/h2>\n<p>At the very beginning of this module you watched a video that showed two young, powerful, and ultimately criminal corporate executives from WorldCom head to jail. \u00a0For many of you this story is probably either ancient news\u00a0or just another expos\u00e9\u00a0on corporate malfeasance. But it&#8217;s worth learning a little more about what happened behind the scenes in order to see\u00a0how unethical decisions get made\u2014and by whom. It&#8217;s often the executives who star\u00a0in the headlines when such scandals break, since they carry the most responsibility for the company&#8217;s\u00a0actions, but employees all the way down can play their role, too\u2014by joining in, by caving to pressure from the top, or by refusing to play along.<\/p>\n<h3>&#8220;Mommy, Why Do You Have to Go to Jail?&#8221;<\/h3>\n<p>The one question Betty Vinson would rather\u00a0avoid is \u201cMommy, why do you have to go to jail?\u201d\u00a0Vinson graduated with an accounting degree from Mississippi State and married her college sweetheart. After a series of jobs at small banks, she landed a midlevel accounting job at WorldCom, at the time still a small long-distance provider. Sparked by the telecom boom, however, WorldCom soon became a darling of Wall Street, and its stock price soared. Now working for a wildly successful company, Vinson rounded out her life by reading legal thrillers and watching her twelve-year-old daughter play soccer.<\/p>\n<p>Her moment of truth came in mid-2000, when company executives learned that profits had plummeted. They asked Vinson to make some accounting adjustments to boost income by $828 million. She knew that the scheme was unethical (at the very least) but gave in and made the adjustments. Almost immediately, she felt guilty and told her boss that she was quitting. When news of her decision came to the attention of CEO Bernard Ebbers and CFO Scott Sullivan, they hastened to assure Vinson that she\u2019d never be asked to cook any more books. Sullivan explained it this way: \u201cWe have planes in the air. Let\u2019s get the planes landed. Once they\u2019ve landed, if you still want to leave, then leave. But not while the planes are in the air.\u201d\u00a0Besides, she\u2019d done nothing illegal, and if anyone asked, he\u2019d take full responsibility. So Vinson decided to stay. After all, Sullivan was one of the top CFOs in the country; at age thirty-seven, he was already making $19 million a year.\u00a0Who was she to question his judgment?<\/p>\n<p>Six months later, Ebbers and Sullivan needed another adjustment\u2014this time for $771 million. This scheme was even more unethical than the first: It entailed forging dates to hide the adjustment. Pretty soon, Vinson was making adjustments on a quarterly basis\u2014first for $560 million, then for $743 million, and yet again for $941 million. Eventually, Vinson had juggled almost $4 billion, and before long, the stress started to get to her: She had trouble sleeping, lost weight, looked terrible, and withdrew from people at work. But when she got a promotion and a $30,000 raise, she decided to hang in.<\/p>\n<p>By spring 2002, however, it was obvious that adjusting the books was business as usual at WorldCom. Vinson finally decided that it was time to move on, but, unfortunately, an internal auditor had already put two and two together and blown the whistle. The Securities and Exchange Commission charged WorldCom with fraud amounting to $11 billion\u2014the largest in U.S. history. Seeing herself as a valuable witness, Vinson was eager to tell what she knew. The government, however, regarded her as more than a mere witness. When she was named a co-conspirator, she agreed to cooperate fully and pleaded guilty to criminal conspiracy and securities fraud. And that\u2019s why Betty Vinson\u00a0spent\u00a0five months in jail. But she wasn&#8217;t\u00a0the only one doing time: Scott Sullivan\u2014who claimed he was innocent\u2014got sentenced to jail for five years, and Bernie Ebbers\u2014who swore he was innocent also\u2014got locked up for twenty-five years.<\/p>\n<p>So where did Betty Vinson, mild-mannered midlevel executive and mother, go wrong? How did she manage to get involved in a scheme that not only bilked investors out of billions but also cost seventeen thousand people their jobs? Ultimately, of course, we can only guess. Maybe she couldn\u2019t say no to her bosses; maybe she believed that they\u2019d take full responsibility for her accounting \u201cadjustments.\u201d Possibly she was afraid of losing her job. Perhaps she didn\u2019t fully understand the ramifications of what she was doing. What we\u00a0do\u00a0know is that she disgraced herself and headed for jail.<\/p>\n<h3 class=\"title editable block\">Misgoverning Corporations<\/h3>\n<p>The WorldCom situation is not an isolated incident.<\/p>\n<ul>\n<li>In fall 2001, executives at Enron, an energy supplier, admitted to accounting practices concocted to overstate the company&#8217;s income over a period of four years. In the wake of the company&#8217;s collapse, stock prices plummeted from $90 to $1 a share, inflicting massive financial losses on the investment community. Thousands of employees lost not only their jobs but their retirement funds, as well.<\/li>\n<li>Officials at Adelphia, the nation&#8217;s sixth-largest cable company, disclosed that founder and CEO John Rigas had treated the publicly owned firm as a personal piggy bank, siphoning off <em>billions<\/em> of dollars to support his family&#8217;s extravagant lifestyle and bankrupting the company in the process.<\/li>\n<li>\u00a0CEO Dennis Koslowzki of conglomerate Tyco International was apparently confused about what was his and what belonged to the company. Besides treating himself to a $30 million estate in Florida and a $7 million Park Avenue apartment, Koslowzki indulged in a taste for expensive office accessories\u2014such as a <em>$15,000 umbrella stand<\/em>, a $17,000 traveling toilette box, and a $2,200 wastebasket\u2014that eventually drained $600 million from company coffers.<\/li>\n<li>Bernie Madoff, founder of Bernard L. Madoff Investment Securities, is alleged to have run a giant Ponzi scheme that cheated investors out of up to <em>$65 billion.<\/em> Madoff convinced investors to give him large sums of money. In return, he gave them an impressive 8 percent to 12 percent return a year. But Madoff <em>never<\/em> really invested their money. <em>Instead, he kept it for himself<\/em>. Thousands of investors, including many of his wealthy friends, not-so-rich retirees who trusted him with their life savings, and charitable foundations, were financially ruined. All those harmed by Madoff either directly or indirectly were pleased when he was <em>sentenced to jail for 150\u00a0years<\/em>.<\/li>\n<\/ul>\n<div>\n<p>Are these cases merely aberrations? \u00a0Why do such incidents happen (and with such apparent regularity)? Who are the usual suspects? How long until the next corporate bankruptcy record is set? What action can be taken\u2014by individuals, organizations, and the government\u2014to discourage such behavior?<\/p>\n<div id=\"collins-ch02_s01_s01\" class=\"section\">\n<h2 class=\"title editable block\">The Idea of Business Ethics<\/h2>\n<p id=\"collins-ch02_s01_s01_p01\" class=\"para editable block\">It\u2019s in the best interest of a company to operate ethically. Trustworthy companies are better at attracting and keeping customers, talented employees, and capital. Those tainted by questionable ethics suffer from dwindling customer bases, employee turnover, and investor mistrust.<\/p>\n<p id=\"collins-ch02_s01_s01_p02\" class=\"para editable block\">Let\u2019s begin this section by addressing one of the questions that we posed previously: What can individuals, organizations, and government agencies do to foster an environment of ethical and socially responsible behavior in business? First, of course, we need to define two terms: <em class=\"emphasis\">business ethics<\/em> and <em class=\"emphasis\">social responsibility<\/em>. They\u2019re often used interchangeably, but they don\u2019t mean the same thing.<\/p>\n<div id=\"collins-ch02_s01_s01_s01\" class=\"section\">\n<h3 class=\"title editable block\">What Is Ethics?<\/h3>\n<p id=\"collins-ch02_s01_s01_s01_p01\" class=\"para editable block\">You probably already know what it means to be ethical: to know right from wrong and to know when you\u2019re practicing one instead of the other. At the risk of oversimplifying, then, we can say that\u00a0business ethics is the application of ethical behavior in a business context. Acting ethically in business means more than simply obeying applicable laws and regulations: It also means being honest, doing no harm to others, competing fairly, and declining to put your own interests above those of your company, its owners, and its workers. If you\u2019re in business you obviously need a strong sense of what\u2019s right and what\u2019s wrong (not always an easy task). You need the personal conviction to\u00a0<em class=\"emphasis\">do<\/em> what\u2019s right, even if it means doing something that\u2019s difficult or personally disadvantageous.<\/p>\n<\/div>\n<\/div>\n<div id=\"collins-ch02_s01_s02\" class=\"section\">\n<h3 class=\"title editable block\">What Is Social Responsibility?<\/h3>\n<p id=\"collins-ch02_s01_s02_p01\" class=\"para editable block\">Corporate social responsibility deals with actions that affect a variety of parties in a company\u2019s environment. A socially responsible company shows concern for its stakeholders\u2014anyone who, like owners, employees, customers, and the communities in which it does business, has a \u201cstake\u201d or interest in it. We\u2019ll discuss corporate responsibility later in this module. At this point, we\u2019ll focus on ethics.<\/p>\n<\/div>\n<div id=\"collins-ch02_s01_s03\" class=\"section\">\n<h2 class=\"title editable block\">How Can You Recognize an Ethical Organization?<\/h2>\n<p id=\"collins-ch02_s01_s03_p01\" class=\"para editable block\">One goal of anyone engaged in business should be to foster ethical behavior in the organizational environment. How do we know when an organization is behaving ethically? Most lists of ethical organizational activities include the following criteria:<\/p>\n<ul id=\"collins-ch02_s01_s03_l01\" class=\"itemizedlist editable block\">\n<li>Treating employees, customers, investors, and the public fairly<\/li>\n<li>Making fairness a top priority<\/li>\n<li>Holding every member personally accountable for his or her action<\/li>\n<li>Communicating core values and principles to all members<\/li>\n<li>Demanding and rewarding integrity from all members in all situations\u00a0(<span id=\"fwk-collins-fn02_013\" class=\"footnote\">Alan Axelrod, <em class=\"emphasis\">My First Book of Business Ethics,\u00a0<\/em>Philadelphia: Quirk Books, 2004, p 7.)<\/span><\/li>\n<\/ul>\n<p id=\"collins-ch02_s01_s03_p02\" class=\"para editable block\">Whether you work for a business or for a nonprofit organization, you probably have a sense of whether your employer is ethical or unethical. Employees at companies that consistently make\u00a0<em class=\"emphasis\">Business Ethics<\/em> magazine\u2019s list of the \u201c100 Best Corporate Citizens\u201d regard the items on the previous list as business as usual in the workplace. Companies that routinely win good-citizenship awards include Procter &amp; Gamble, Hewlett-Packard, Intel, Avon Products, Cisco Systems, and Merck (<span id=\"collins-5300-20111111-093529-160882\" class=\"footnote\">\u201c<a href=\"http:\/\/thecro.com\/content\/100-best-corporate-citizens\" target=\"_blank\">100 Best Corporate Citizens for 2010<\/a>,\u201d <em class=\"emphasis\">Corporate Responsibility Magazine<\/em>, no. 11, Spring 2011,\u00a0accessed September 5, 2011).<\/span><\/p>\n<p id=\"collins-ch02_s01_s03_p03\" class=\"para editable block\">By contrast, employees with the following attitudes tend to suspect that their employers aren\u2019t as ethical as they should be:<\/p>\n<ul id=\"collins-ch02_s01_s03_l02\" class=\"itemizedlist editable block\">\n<li>They consistently feel uneasy about the work they do.<\/li>\n<li>They object to the way they\u2019re treated.<\/li>\n<li>They\u2019re uncomfortable about the way coworkers are treated.<\/li>\n<li>They question the appropriateness of management directives and policies (<span id=\"fwk-collins-fn02_015\" class=\"footnote\">Alan Axelrod, <em class=\"emphasis\">My First Book of Business Ethics,\u00a0<\/em>Philadelphia: Quirk Books, 2004, p 7).<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<h2>Check Your Understanding<\/h2>\n<p>Answer the question(s) below to see how well you understand the topics covered in this section. This short quiz does <strong>not<\/strong> count toward your grade in the class, and you can retake it an unlimited number of times.<\/p>\n<p>Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.<\/p>\n<p>\t<iframe id=\"lumen_assessment_181\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=181&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_181\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-40\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>An Introduction to Business. <strong>Authored by<\/strong>: Anonymous. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/2012books.lardbucket.org\/books\/an-introduction-to-business-v1.0\/s06-business-ethics-and-social-res.html\">http:\/\/2012books.lardbucket.org\/books\/an-introduction-to-business-v1.0\/s06-business-ethics-and-social-res.html<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/4.0\/\">CC BY-NC-SA: Attribution-NonCommercial-ShareAlike<\/a><\/em><\/li><li>Adaptation and revision. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>Provided by<\/strong>: Tidewater Community College. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/4.0\/\">CC BY-NC-SA: Attribution-NonCommercial-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":78,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"An Introduction to Business\",\"author\":\"Anonymous\",\"organization\":\"\",\"url\":\"http:\/\/2012books.lardbucket.org\/books\/an-introduction-to-business-v1.0\/s06-business-ethics-and-social-res.html\",\"project\":\"\",\"license\":\"cc-by-nc-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Adaptation and revision\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"Tidewater Community College\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-nc-sa\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"8ff614ae-226c-4e83-8eb9-b66bc6276889","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-40","chapter","type-chapter","status-publish","hentry"],"part":85,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/chapters\/40","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/wp\/v2\/users\/78"}],"version-history":[{"count":22,"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/chapters\/40\/revisions"}],"predecessor-version":[{"id":5700,"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/chapters\/40\/revisions\/5700"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/parts\/85"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/chapters\/40\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/wp\/v2\/media?parent=40"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/pressbooks\/v2\/chapter-type?post=40"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/wp\/v2\/contributor?post=40"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/wp-json\/wp\/v2\/license?post=40"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}