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CHAPTER 2
Being Ethical and Socially Responsible
INSTRUCTOR MANUAL RESOURCES

2.1 A Word from the Authors ............................................................................................ 41
2.2 Transition Guide .......................................................................................................... 41
2.3 Quick Reference Guide ................................................................................................ 43
2.4 Learning Objectives ..................................................................................................... 44
2.5 Brief Chapter Outline................................................................................................... 44
2.6 Comprehensive Lecture Outline .................................................................................. 45
2.7 Textbook Answer Keys................................................................................................ 58
2.7a Return to Inside Business ............................................................................ 58
2.7b Review Questions........................................................................................ 58
2.7c Discussion Questions .................................................................................. 61
2.7d Video Case 2.1: Scholfield Honda—Going Green with Honda ................. 62
2.7e Case 2.2: Unilever’s Plan for Green and Clean Growth ............................. 62
2.7 f Building Skills for Career Success .............................................................. 63
2.8 Quizzes I and II ............................................................................................................ 66
2.9 Answer Key for Quizzes I and II ................................................................................. 69
2.10 Classroom Exercises .................................................................................................... 69
2.10a Homework Activities ................................................................................. 69
2.10b Classroom Activities .................................................................................. 70
2.10c Exercise Handouts ...................................................................................... 70
41 Chapter 2 Being Ethical and Socially Chapter 2 Being Ethical and Socially 41
2.1 A WORD FROM THE AUTHORS

The material on ethics and social responsibility is presented early in the text
to underscore the importance of business’s role in our society. In this
context, we define business ethics and discuss the major factors believed to
influence the level of ethical behavior in an organization. We also examine
several types of ethical issues.
As in Chapter 1, we turn to American history to trace the evolution of
socially responsible business practices. Next, we define and contrast two
contemporary views of social responsibility: the economic model and the
socioeconomic model. In the process, we present arguments both for and
against increased social responsibility in business. We consider social
changes in three specific areas: consumerism, employment practices, and
the environment. We identify public and private agencies that regulate or
monitor business practices in these areas, including the Equal Employment
Opportunity Commission and the Environmental Protection Agency.
Finally, we outline the steps in the development and implementation of an
effective corporate program for social responsibility.
2.2 TRANSITION GUIDE
New in Chapter 2: Being Ethical and Socially Responsible

A new Inside Business feature describes how Panera cares about its
communities by “suggested funding levels” rather than specific prices
for its meals.
New URL information about the student Web site is provided in the first
part of the chapter.
Information has been added about John and Timothy Rigas of
Adelphia Communications Corp. and how Adelphia’s investors lost
more than $60 billion.
A new Personal Apps describes how business ethics apply to
customers, managers, and employees.
In the “Fairness and Honesty” section, information about how more
than 1,500 clients of Ander- son’s Ark and Associates lost about $31
million has been added.
The Ethical Challenges and Successful Solutions feature has been deleted.
The whistle-blowing section has been updated, and the Whistleblower
Protection Act of 1989 is now included in the discussion.
In the “Social Responsibility” section, the General Mills Foundation’s
philanthropic activities are revised and updated.

A discussion of IBM’s Corporate Service Corps., a “corporate
version” of the Peace Corps, is now included.
A new example of GE’s $20 million grant to Milwaukee Public
Schools to improve academic achievement is now included.
Charles Schwab Foundation’s philanthropic efforts are updated.
A new example of how ExxonMobil celebrated 2011 International
Women’s Day by granting $6 million to support economic opportunities
for women around the world has been added.
A new example of how AT&T responded to the high school drop-out

crisis with a $100 million philanthropic program is given.
The Sustaining the Planet feature about major companies and nonprofit groups has
been deleted.
A new Personal Apps explains that we should keep consumer
rights in mind when we shop around for goods and services or
have a problem with a purchase.
A new Ethical Success or Failure? feature reveals how everything we
do online is being tracked by business.
Figure 2.3, “Comparative Income Levels,” has been updated to
reflect the latest census data available.
Figure 2.4, “Relative Earnings of Male and Female Workers,” has
been updated to reflect the latest census data available.
A new Sustaining the Planet feature describes how Xerox approaches its
corporate social responsibility and citizenship by designing waste-free
products.
The Spotlight feature, “Recession and Responsibility,” has been deleted.
British Petroleum’s 2012 settlement to pay out $7.8 billion has been
added to the discussion of the Deepwater Horizon disaster.
A new Entrepreneurial Success feature describes how growing
numbers of young entrepreneurs are starting businesses with the goal of
using their skills for a socially responsible purpose.
The Entrepreneurial Success feature about recycling entrepreneurs has been deleted.
A new Return to Inside Business featuring Panera Cares is provided at the end of the
chapter.
A new Case 2.2 describes Unilever’s plan for green and clean growth.
The Building Skills for Career Success section contains a new Social Media
Exercise.
The Exploring the Internet feature in Building Skills for Career Success has been
deleted.
2.3 QUICK REFERENCE GUIDE
Instructor Resource Location

Transition Guide IM, pp. 41–42
Learning Objectives Textbook, p. 35; IM, p. 44
Brief Chapter Outline IM, pp. 44–45
Comprehensive Lecture Outline IM, pp. 45–57
Ethical Success or Failure? Is Textbook, p. 53
Personal Data Really Pri- vate?
At Issue: How should employers deal IM, p. 55
with proselytizing?
Sustaining the Planet Social Textbook, p. 59
Responsibility at Xerox
Entrepreneurial Success Social Textbook, p. 61
Entrepreneurs of Tomor- row
Inside Business Panera Cares About Its Textbook, p. 36
Communities
Return to Inside Business Textbook, p. 63
Questions and Suggested Answers, IM, p. 58
Marginal Key Terms List Textbook, p. 64
Review Questions Textbook, p. 64
Questions and Suggested Answers, IM, pp. 58
61
Discussion Questions Textbook, p. 65
Questions and Suggested Answers, IM, pp. 61
62
Video Case 2.1 (Scholfield Honda— Textbook, p. 65
Going Green with Honda) and Questions and Suggested Answers, IM, p. 62
Questions
Case 2.2 (Unilever’s Plan for Green and Textbook, p. 66
Clean Growth) Questions and Suggested Answers, IM, pp. 62
and Questions 63
Building Skills for Career Success Textbook, pp. 66–67
Suggested Answers, IM, pp. 63–65
IM Quiz I & Quiz II IM, pp. 66–68
Answers, IM, p. 69
Classroom Exercises IM, pp. 69–70
2.4 LEARNING OBJECTIVES

After studying this chapter, students should be able to:
1. Understand what is meant by business ethics.
2. Identify the types of ethical concerns that arise in the business world.
3. Discuss the factors that affect the level of ethical behavior in organizations.
4. Explain how ethical decision making can be encouraged.
5. Describe how our current views on the social responsibility of business have
evolved.
6. Explain the two views on the social responsibility of business and
understand the arguments for and against increased social
responsibility.
7. Discuss the factors that led to the consumer movement and list some of its results.
8. Analyze how present employment practices are being used to counteract past
abuses.
9. Describe the major types of pollution, their causes, and their cures.
10. Identify the steps a business must take to implement a program of social
responsibility.
2.5 BRIEF CHAPTER OUTLINE

I. Business Ethics Defined
II. Ethical Issues

A. Fairness and Honesty
B. Organizational Relationships
C. Conflict of Interest
D. Communications
III. Factors Affecting Ethical Behavior

A. Individual Factors Affecting Ethics
B. Social Factors Affecting Ethics
C. “Opportunity” as a Factor Affecting Ethics
IV. Encouraging Ethical Behavior

A. Government’s Role in Encouraging Ethics
B. Trade Associations’ Role in Encouraging Ethics
C. Individual Companies’ Role in Encouraging Ethics
V. Social Responsibility
VI. The Evolution of Social Responsibility in Business

A. Historical Evolution of Business Social Responsibility
VII. Two Views of Social Responsibility

A. The Economic Model
B. The Socioeconomic Model
C. The Pros and Cons of Social Responsibility
1. Arguments for Increased Social Responsibility
2. Arguments Against Increased Social Responsibility
VIII. Consumerism
A. The Six Basic Rights of Consumers
1. The Right to Safety
2. The Right to Be Informed
3. The Right to Choose
4. The Right to Be Heard
5. Additional Consumer Rights
B. Major Consumerism Forces
IX. Employment Practices

A. Affirmative Action Programs
B. Training Programs for the Hard-Core Unemployed
X. Concern for the Environment

A. Effects of Environmental Legislation
1. Water Pollution
2. Air Pollution
3. Land Pollution
4. Noise Pollution
B. Who Should Pay for a Clean Environment?
XI. Implementing a Program of Social Responsibility

A. Developing a Program of Social Responsibility
1. Commitment of Top Executives
2. Planning
3. Appointment of a Director
4. The Social Audit
B. Funding the Program
2.6 COMPREHENSIVE LECTURE OUTLINE

Most managers today are finding ways of balancing a growing agenda of
socially responsible activities with the drive to generate profits.
I. BUSINESS ETHICS DEFINED. Ethics is the study of right and

wrong and of the morality of choices individuals make. Business

ethics is the application of moral standards to business situations.
Teaching Tip: Ask students how they decide what is right and what is
wrong. Is there an internal mechanism or process they use or a code?
Follow up by asking where they learned their personal code.
II. ETHICAL ISSUES. Businesspeople face ethical issues every day,

and some of these issues can be difficult to assess. These issues arise
out of a business’s relationship with investors, customers,
employees, creditors, and competitors.
A. Fairness and Honesty. Fairness and honesty in business are
important ethical concerns. Businesspeople must obey all laws
and regulations as well as refrain from knowingly deceiving,
misrepresenting, or intimidating others.
B. Organizational Relationships. It may be tempting to place
personal welfare above the welfare of others or of the
organization. Relationships with customers and co-workers
often create ethical problems such as taking credit for others’
ideas or work, not meeting one’s commitments, and pressuring
others to behave unethically.
C. Conflict of Interest. Conflict of interest results when a
businessperson takes advantage of a situation for his or her own
personal interest rather than for the employer’s interest.
D. Communications. Business communications, especially
advertising, can present ethical questions. Advertisers must take
precautions to guard against deception.
III. FACTORS AFFECTING ETHICAL BEHAVIOR. The factors

that affect the level of ethical behavior in organizations are
individual, social, and opportunity. (See Figure 2.1.)
A. Individual Factors Affecting Ethics
1. Individual Knowledge of an Issue. A decision maker with a
greater amount of knowledge regarding a situation may take
steps to avoid ethical problems, whereas a less-informed
person may take action unknowingly that leads to an
ethical quag- mire.

2. Personal Values. An individual’s moral values and
central, value-related attitudes also clearly influence his or
her business behavior.
3. Personal Goals. The types of personal goals an individual
aspires to and the manner in which these goals are pursued
have a significant impact on that individual’s behavior in
an organization.
B. Social Factors Affecting Ethics
1. Cultural Norms. A person’s behavior in the workplace, to
some degree, is deter- mined by cultural norms, and these
social factors vary from one culture to another.
2. Co-workers. The actions and decisions of co-workers
constitute another social factor believed to shape a
person’s sense of business ethics.
3. Significant Others. The moral values and attitudes of

“significant others”— spouses, friends, and relatives—can
also affect an employee’s perception of what is ethical and
unethical behavior in the workplace.
4. Use of the Internet. Even the Internet presents new
challenges for firms whose employees enjoy easy access
to sites through convenient high-speed connections at
work. An employee’s behavior online can be viewed as
offensive to co-workers and possibly lead to lawsuits

against the firm if employees engage in unethical be-
havior on controversial Web sites not related to their job.
Teaching Tip: A classroom can be considered a workplace for the time
students are there. Ask students to take a minute and write down three
examples of ethical behavior in the classroom and three examples of
unethical behavior. Beyond the obvious cheating issues, students may
mention things such as one student constantly monopolizing the instructor’s
time, etc.
C. “Opportunity” as a Factor Affecting Ethics

1. Presence of Opportunity. Opportunity refers to the amount
of freedom an organization gives an employee to behave
unethically if he or she makes that choice.
2. Ethical Codes. The existence of an ethical code and the
importance management places on this code are other
determinants of opportunity.
3. Enforcement. The degree of enforcement of company
policies, procedures, and ethical codes is a major force
affecting opportunity.
IV. ENCOURAGING ETHICAL BEHAVIOR. Most authorities agree

that there is room forim- provement in business ethics. A more
problematic issue is whether business can be made more ethical in the
real world.
A. Government’s Role in Encouraging Ethics. The government can
establish acceptable levels of behavior by passing more stringent

regulations. For example, the Sarbanes-Oxley Act of 2002 gives
those who report corporate misconduct sweeping new legal
protection.
B. Trade Associations’ Role in Encouraging Ethics. Trade
associations can, and often do, provide ethical guidelines for
their members to follow.
C. Individual Companies’ Role in Encouraging Ethics
1. Codes of ethics that companies provide to their employees
are perhaps the most effective way to encourage ethical
behavior. A code of ethics is a written guide to acceptable
and ethical behavior as defined by an organization that
outlines uniform policies, standards, and punishments for
violations.
2. However, codes cannot possibly cover every situation.
a) Companies must also create an environment in
which employees recognize the importance of
following the written code.
b) Managers must provide direction by fostering

communication, actively encouraging ethical
decision making, and training employees to make
ethical decisions.
c) Assigning an ethics officer who coordinates ethical
conduct gives employees someone to go to if they
aren’t sure of the right thing to do.
d) An ethics officer meets with employees and top
management to provide ethical advice, establishes
and maintains an anonymous confidential service to an-
swer questions about ethical issues, and takes action on
ethics code violations.
3. See Figure 2.2 for Texas Instruments’ code of ethics.
4. Unethical practices often become ingrained in an organization.
5. Employees with high personal ethics may take a
controversial step called whistle- blowing—informing the
press or government officials about unethical practices
within one’s organization.
a) Whistle-blowing can have serious repercussions for an employee.
b) The Sarbanes-Oxley Act of 2002 protects whistle-
blowers who report corporate misconduct. Any
executive who retaliates against a whistle-blower can
be held criminally liable and imprisoned for up to 10
years.
c) The Whistleblower Protection Act of 1989 protects
federal employees who report an agency’s
misconduct.
6. When firms set up anonymous ethical hotlines to handle
ethically questionable situations, employees may be more
likely to engage in whistle-blowing.
7. When firms create an environment that educates
employees and nurtures ethical behavior, whistle-blowing
is greatly reduced because fewer ethical problems arise.
8. See Table 2.1 for general guidelines for making ethical decisions.
V. SOCIAL RESPONSIBILITY
A. Social responsibility is the recognition that business activities
have an impact on society and the consideration of that impact

in business decision making.
1. Social responsibility can cost companies a considerable
amount of money, but it is also good business.
B. Examples of Socially Responsible Organizations
1. Through Young Eagles, underwritten by S. C. Johnson,
Phillips Petroleum, Lock- heed Martin, Jaguar, and other
corporations, 22,000 volunteer pilots take a half million
youngsters on free flights to teach flying basics.
2. The General Mills Foundation, created in 1954, is one of
the largest U.S. company- sponsored foundations and has
awarded over $535 million to communities since its
creation. Millions of dollars have been donated to Feeding
America.
3. Dell’s outreach programs include projects that bring
technology to underserved communities around the world.
Globally, the Michael and Susan Dell Foundation
has contributed more than $700 million to improve

student performance and increase access to education.
4. Improving public schools around the world continues to be
IBM’s top social priori- ty. Its efforts are focused on
preparing the next generation of leaders and workers. IBM
launched the World Community Grid in 2004. It combines
excess processing power from thousands of computers in a
virtual supercomputer that enables re- searchers to gather
and analyze unprecedented quantities of data aimed at
advanc- ing research on genomics, diseases, and natural
disasters. IBM’s Corporate Service Corps. is a group of
high performing employees that provide technology-related
assistance to foreign governments and communities
including economic development, health care, and
entrepreneurship.
5. General Electric Company (GE) has a long history of
supporting the communities where its employees work and
live through its unique combination of resources,
equipment, and employee and retiree volunteers. The
company devotes its efforts in philanthropy to making
communities around the world stronger. For example, the
GE Foundation awarded $20 million to Milwaukee Public
Schools as part of GE’s Developing Futures™ in
Education program to help students compete in a global
economy.
6. With the help of dedicated Schwab volunteers, the Charles
Schwab Foundation provides programs and funding to
help adults and children learn the basics of financial
literacy. Since 1993, the Schwab Foundation has
distributed an average of
$4 million a year to 2,300 nonprofit organizations.
7. Improving basic literacy skills in the United States is
among the Verizon Founda- tion’s major priorities
because of its enormous impact on education, health, and
economic development. Recently, Verizon employees and
retirees donated more than 608,000 hours of service and,
with the Verizon Foundation, contributed over
$25 million in combined matching gift funds, making

Verizon Volunteers one of the largest corporate volunteer
incentive programs in the United States.
8. ExxonMobil’s commitment to education spans all levels of
achievement. The Na- tional Math and Science Initiative
and the Mickelson ExxonMobil Teachers Acad- emy are
programs emphasizing long-term educational improvement.
The company supports new generations pursuing studies
and careers in math and science. Recent- ly, ExxonMobil
employees and retirees contributed a total of $238 million to
communities worldwide. In addition, the company
celebrated 2011 International Women’s Day by granting $6
million to support economic opportunities for women
around the world.
9. AT&T has built a tradition of supporting education, health
and human services, the environment, public policy, and
the arts in the communities it serves. Since 1984, AT&T
has invested more than $600 million in support of
education. To respond to
the high school drop-out crisis, AT&T launched Aspire, a

$100 million job shad- owing program that has reached
more than 23,000 students in over 200 cities.
10. At Merck & Co., Inc., the Patient Assistance Program
makes the company’s medicines available to low-income
Americans and their families at no cost. For over 50 years,
Merck has provided its medicines completely free of
charge to people in need through this program. Since 1957,
the Merck Company Foundation has contributed more
than $560 million to develop programs that help improve
the health and well-being of people around the world.
These are just a few illustrations from a long list of
companies big and small that attempt to behave in socially
responsible ways.
VI. THE EVOLUTION OF SOCIAL RESPONSIBILITY IN BUSINESS

A. Historical Evolution of Business Social Responsibility.
During the first quarter of the twentieth century, businesses
were free to operate pretty much as they chose.
1. Working conditions were often deplorable by today’s standards.
a) The average work week exceeded 60 hours in most industries.
b) There was no minimum-wage law.
c) There were no employee benefits.
d) Work areas were crowded and unsafe, and industrial
accidents were the rule rather than the exception.
2. During this period, consumers were generally subject
to the doctrine of caveat emptor, a Latin phrase
meaning “let the buyer beware.”
a) Victims of unscrupulous business practices could take
legal action, but going to court was very expensive
and consumers rarely won their cases.
b) There were no consumer groups or government
agencies to hold sellers responsible for their
activities.
3. Prior to the 1930s, government became involved in day-to-
day business activities only when there was an obvious
abuse of the free-market system and competition was

endangered. (See Table 2.2 for a list of early government
regulations affecting business.)
B. The collapse of the stock market on October 29, 1929,
triggered the Great Depression and years of economic
problems for the United States.
1. Public pressure mounted for government to “do something”
about the economy and about worsening social conditions.
2. As a result, laws were passed to correct what many viewed
as monopolistic abuses of big business, and various social
services were provided for individuals.
VII. TWO VIEWS OF SOCIAL RESPONSIBILITY. Government

regulation and public awareness are external forces that have
increased the social responsibility of business. But
business decisions are made within the firm—and there, social

responsibility begins with the attitude of management. There are
two models of social responsibility.
A. The Economic Model. The economic model of social
responsibility holds that society will benefit most when
business is left alone to produce and market profitable products
that society needs.
B. The Socioeconomic Model. The socioeconomic model of
social responsibility holds that business should emphasize not
only profits but also the impact of its decisions on society.
C. The Pros and Cons of Social Responsibility. The merits of the
economic and socioeconomic models have been debated for
years. Each side seems to have four arguments.
1. Arguments for Increased Social Responsibility.
Proponents of the socioeconomic model offer the
following arguments:
a) Business cannot ignore social issues because business is
a part of our society.
b) Business has the technical, financial, and managerial
resources needed to tackle today’s complex social
issues.
c) By helping to resolve social issues, business can
create a more stable environment for long-term
profitability.
d) Socially responsible decision making by business firms
can prevent increased government intervention, which
would force businesses to do what they fail to do
voluntarily.
2. Arguments Against Increased Social Responsibility.
Opponents of the socioeconomic model offer these
arguments:
a) Business managers are responsible primarily to
stockholders, so management must be concerned with
providing a return on owners’ investments.
b) Corporate time, money, and talent should be used to
maximize profits, not to solve society’s problems.
c) Social problems affect society in general, so
individual businesses should not be expected to solve

these problems.
d) Social issues are the responsibility of government
officials who are elected for that purpose and who are
accountable to the voters for their decisions.
3. Table 2.3 compares the economic and socioeconomic
viewpoints in terms of business emphasis.
4. Today, few firms are either purely economic or purely
socioeconomic in outlook; most have chosen some middle
ground between the two.
a) However, our society generally seems to want—and
even to expect—some degree of social
responsibility from business.
b) Thus, within this middle ground between the two
extremes, businesses are leaning toward the
socioeconomic view.
VIII. CONSUMERISM. Consumerism consists of all those activities

that are undertaken to protect the rights of consumers. The
consumer movement issues fall into three categories: envi-
ronmental protection, product performance and safety, and
information disclosure.
A. The Six Basic Rights of Consumers. During the 1960s,
President John F. Kennedy de- clared that the consumer was
entitled to a new “bill of rights.”
1. The Right to Safety. The right to safety means that
products purchased by consumers must be safe for their
intended use, include thorough and explicit directions for
proper use, and have been tested by the manufacturer to
ensure product quality and reliability. American business
firms must be concerned about product safety for several
reasons.
a) Federal agencies have the power to force businesses
that make or sell defective products to take
corrective actions.
b) Consumers and the government have been winning
an increasing number of product-liability lawsuits
against sellers of defective products.
c) The consumer is demanding safe products.
2. The Right to Be Informed. The right to be informed
means that consumers must have access to complete
information about a product before they buy it. In addi-
tion, manufacturers must inform consumers about the
potential dangers of using their products.
3. The Right to Choose. The right to choose means that
consumers have a choice of products, offered by different
manufacturers and sellers, to satisfy a particular need.
a) The government has encouraged competition through antitrust
legislation.
b) Competition and the resulting freedom of choice
provide an additional benefit for consumers by
reducing prices.
4. The Right to Be Heard. The right to be heard means that
someone will listen and take appropriate action when
customers complain.
a) Today, businesses are listening more attentively, and
many larger firms have consumer relations
departments that can easily be contacted via toll-free
phone numbers.
b) Most large cities and some states have consumer
affairs offices to act on citi- zens’ complaints.
5. Additional Consumer Rights. In 1975, President Ford
added the right to consumer education which entitles
people to be fully informed about their rights as con-
sumers. In 1994, President Clinton added the sixth right—
the right to service, which entitles consumers to
convenience, courtesy, and responsiveness from manu-
facturers and suppliers.
Teaching Tip: Go to the Federal Trade Commission’s site and view the
rights provided to consumers (http://www.ftc.gov/consumer). Students
may want to know about these rights.
B. Major Consumerism Forces. Major advances in consumerism

have come through federal legislation. Major federal laws that
have been passed since 1960 to protect consumer rights are
listed and described in Table 2.4.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 was passed by the House of
Representatives to protect consumers and investors.
IX. EMPLOYMENT PRACTICES. Everyone who works for a living

should have the opportunity to land a job for which he or she is
qualified and to be rewarded on the basis of ability and
performance. Although this is an important issue for society, over
the years this opportunity has been denied to members of various
minority groups.
1. A minority is a racial, religious, political, national, or other
group regarded as different from the larger group of which
it is a part and that is often singled out for un- favorable
treatment.
2. The federal government responded to the outcry of
minority groups during the 1960s and 1970s by passing
a number of laws forbidding discrimination in the
workplace.
a) Now, almost 50 years after passage of the Civil
Rights Act of 1964, abuses still exist.
b) There is a disparity among income levels for whites,
blacks, and Hispanics. (See Figure 2.3.)
c) Lower incomes and higher unemployment rates also
affect Native Americans, handicapped persons, and
women.
3. Responsible managers have instituted several programs to

counteract the results of discrimination.
A. Affirmative Action Programs. An affirmative action program
is a plan designed to increase the number of minority
employees at all levels within an organization.
1. Employers with federal contracts of more than $50,000 per
year must have written affirmative action plans. The
objective of such programs is to ensure that minorities are
represented within the organization in approximately the
same proportion as in the surrounding community.
2. Affirmative action programs have been plagued by two
problems.
a) The first problem involves quotas. In the beginning,
many firms pledged to recruit and hire a certain
number of minority members by a specific date. To
achieve this goal, they were forced to consider only
minority applicants for job openings.
b) The second problem is that not all businesspeople are

in favor of affirmative action programs, although most
such programs have been reasonably successful.
3. Congress created (and later strengthened) the Equal
Employment Opportunity Commission (EEOC), a
government agency with the power to investigate com-
plaints of employment discrimination and sue firms that
practice it.
4. The threat of legal action has persuaded some
corporations to amend their hiring and promotional
practices, but the discrepancy between men’s and
women’s sala- ries still exists. (See Figure 2.4.)
B. Training Programs for the Hard-Core Unemployed. Some
firms have assumed the task of helping the hard-core
unemployed: workers with little education or vocational
training and a long history of unemployment.
1. Such workers require training; this training can be expensive and time
consuming.
2. To share the costs, business and government have joined
together in a number of cooperative programs. The
National Alliance of Business (NAB) is a joint business-
government program to train the hard-core unemployed.
The National Alliance’s 5,000 members include companies
of all sizes and industries as well as educators and
community leaders.
X. CONCERN FOR THE ENVIRONMENT. Pollution is the

contamination of water, air, or land through the actions of people in
an industrialized society.
1. For several decades, environmentalists have been warning
us about the dangers of industrial pollution.
2. Unfortunately, business and government leaders either
ignored the problem or weren’t concerned about it until
pollution became a threat to life and health in America.
3. Today, Americans expect business and government
leaders to take swift action to clean up our environment—
and to keep it clean.
A. Effects of Environmental Legislation. As in other areas of

concern to our society, legislation and regulations play a
crucial role in pollution control. The Environmental Pro- tection
Agency (EPA) is the federal agency charged with enforcing
laws designed to protect the environment. (See Table 2.5.)
Some business owners and managers take the position that
environmental standards are too strict. Consequently, it has
often been necessary for the EPA to take legal action to force
firms to install antipollution equipment and clean up waste
storage areas. Expe- rience has shown that the combination of
environmental legislation, voluntary compli- ance, and EPA
action can succeed in cleaning up the environment and keeping
it clean.
At Issue
The United States has been at the forefront in negotiating opportunities and
expanding rights for minorities. Recently, much attention has been given
to the rights of religious minorities. Employers must permit employees to
engage in religious expression, “unless the religious expression would
impose an undue hardship on the employer.” They are also required to
provide a workplace in which religious harassment of employees is not
allowed. Undue hardship can be claimed if the accommodation interferes
with legitimate business interests. According to the EEOC:
“An employer can show undue hardship if accommodating an employee’s
religious practices re- quires more than ordinary administrative costs,
diminishes efficiency in other jobs, infringes on other employees’ job
rights or benefits, impairs workplace safety, causes coworkers to carry the
ac- commodated employee’s share of potentially hazardous or burdensome
work, or if the proposed accommodation conflicts with another law or
regulation.”
Workplace proselytizing presents a special challenge to employers: failure
to respond to employees’ complaints about proselytizing could lead to
charges of religious harassment, but requiring a religious employee to
cease proselytizing may result in liability for failure to reasonably
accommodate the employee’s beliefs.
How should employers deal with proselytizing?

For Proselytizing Against Proselytizing
1. Existing laws require a minimum and has
“reasonable ac- no impact on co-
commodation.” The workers, it could be
proselytizing employees considered “rea-
could be separated from sonable
employees who feel accommodation.”
harassed by the practice.
2. Employees have certain
rights to ex- press their
religious views in the
workplace, such as the
wearing of yarmulk- es or
the display of a cross in a
private office.
3. If proselytizing is kept to
1. Existing law allows for undue

hardship for the employer in
terms of increased
administrative costs,
infringement of other
employee rights, and
diminished efficiency.
2. Title VII of the Civil Rights
Act does not permit
employees’ religious ex-
pression that could reasonably
be per- ceived by patrons of
the business asan expression
of the employer’s views.
3. Title VII permits restriction of
religious expression that
disrupts oper- ations or is
hostile or demeaning to
customers or co-workers.
1. Water Pollution. The Clean Water Act has been credited

with greatly improving the condition of waters in the
United States. However, the task of water cleanup has
proved to be extremely complicated and costly due to
pollution runoff and tox- ic contamination. Improved water
quality is not only necessary, but it is also achievable.
Today, acid rain, which results from sulfur emitted by
smokestacks in industrialized areas, is destroying many
lakes and reservoirs.
2. Air Pollution. Aviation emissions are a potentially
significant and growing per- centage of greenhouse gases
that contribute to global warming. Usually, two or three
factors combine to form air pollution in any given
location.
a) The first factor is large amounts of carbon monoxide
and hydrocarbons emitted by many motor vehicles
concentrated in a relatively small area.
b) The second factor is the smoke and other pollutants
emitted by manufacturing facilities.
c) The third factor is the combination of weather and geography.
d) Air pollution control efforts are encouraging. The
EPA estimates that the Clean Air Act eventually will
result in the removal of 56 billion pounds of pollution
from the air each year, thus measurably reducing lung
disease, can- cer, and other serious health problems.
3. Land Pollution. Today, land pollution is a serious problem.
a) The fundamental issues are basically twofold.
(1) The first issue is how to restore damaged or
contaminated land at a reasonable cost.
(2) The second issue is how to protect unpolluted land from future
damage.
b) The land pollution problem has been worsening over
the past few years because modern technology has
continued to produce more and more chemical and
radioactive wastes.
c) To help pay for the enormous costs of cleaning up
land polluted with chemi- cals, Congress created a
$1.6 billion Superfund in 1980.

4. Noise Pollution. The Noise Control Act of 1972
established noise emission standards for aircraft and
airports, railroads, and interstate motor carriers. Noise
levels can be reduced by two methods.
a) The source of noise pollution can be isolated as
much as possible, and engi- neers can modify
machinery and equipment to reduce noise levels.
b) If it is impossible to reduce industrial noise to
acceptable levels, workers should be required to wear
earplugs to guard against permanent hearing dam-
age.
B. Who Should Pay for a Clean Environment? Government
and business are spending billions of dollars annually to
reduce pollution.
1. Current estimates of the annual costs of improving the

environment are $45 billion to control air pollution, $33
billion to control water pollution, and $12 billion to treat
hazardous wastes.
2. Much of the money required to purify the environment is
supposed to come from already depressed industries.
3. The big question is: “Who will pay for the environmental
cleanup?”
a) Business leaders believe tax money should be used
to clean up the environment.
b) Environmentalists believe that the cost of proper
treatment and disposal of industrial wastes is an
expense of doing business and therefore the
responsibility of the manufacturer.
c) In either case, consumers will probably pay a large
part of the cost either in the form of taxes or through
higher prices.
Teaching Tip: Bring in three to five products from home. Write down the
approximate prices. Tell students how much each cost, and then ask how
much more they would be willing to pay in order for these products to be
“environmentally friendly.” Products might include an apple or other fruit
that was grown with pesticides, a package of non-biodegradable garbage
bags, and so forth.
XI. IMPLEMENTING A PROGRAM OF SOCIAL

RESPONSIBILITY. A firm’s decision to be socially responsible is
a step in the right direction—but only a first step. The firm must
then develop and implement a tangible program to reach this goal.
A. Developing a Program of Social Responsibility. The
following steps are required to implement a social
responsibility program.
1. Commitment of Top Executives. Without the support of
top executives, any program will soon falter and become
ineffective.
2. Planning. A committee of managers should be appointed to
plan the program.

3. Appointment of a Director. A top-level executive should
be chosen to direct the organization’s activities in
implementing the plan.
4. The Social Audit. The director of the program should
prepare a social audit for the firm at specified intervals. A
social audit is a comprehensive report of what an or-
ganization has done, and is doing, with regard to social
issues that affect it.
B. Funding the Program. Like any other program, a program to
improve social responsibility must be funded. Funding can
come from three sources.
1. Management can pass the cost on to consumers in the form of
higher prices.
2. The corporation may be forced to absorb the cost of the
program if, for example, the competitive situation does
not permit a price increase.
3. The federal government may pay for all or part of the cost
through special tax re- ductions or other incentives.
2.7 TEXTBOOK ANSWER KEYS
2.7 a Return to Inside Business
P
a
n
e
r
a
C
a
r
e
s
1. How does Panera Cares fit into the socioeconomic model of social
responsibility?
Panera Cares is a good example of the socioeconomic model at work
because, as the text explains, each of these cafés must be self-
supporting and generate a small profit to be invested in other
community programs, such as job training. Panera is going beyond its
basic economic responsibility to owners and other stakeholders. It is
also inviting the public to “do the right thing,” as the CEO says, by
contributing more than the cost of each meal so that people with little
or no money can enjoy a good meal.
2. What ethical issues are raised by the idea of expecting some
people to pay more for a Panera meal so that others can pay
less?
Students are likely to identify fairness as one ethical issue involved in
the Panera Cares “suggested funding” levels. Is it fair to leave the
decision about how much to donate up to individuals? Some people
who can afford to pay may take advantage of this situation by donating
very little or nothing. This unfairly shifts the burden to others who
choose to donate the suggested amount or much more. Is it even fair
for Panera to expect customers to share the cost when the company
could make a philanthropic contribution to cover free meals for people
in need? Stu- dents may mention other ethical issues, as well.
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Mother often carried a small blue bottle of smelling salts. It was
possible she had this in her hand at the time.
The woman showed me the wounds on my left leg, an oval gash,
very deep; and a small one in the back; a round, corresponding hole
in the front. She said nothing more as though to give no loophole,
but worked rapidly and then hurried up the ladder.
The man became a more frequent visitor in my dugout. He was
always friendly, more so than the woman. He always had something
pleasant to say about the weather, perhaps a cheerful “Good
evening.” After a while he brought along another man who seemed
to be of an entirely different type—dressed in peasant clothes, and
obviously a peasant. Both were impatient for me to get well. They
were inquiring about my progress, asking the woman how soon I
might be up and around. From their nervousness I could see they
were in constant terror of discovery. During one of the visits, I saw a
newspaper folded in the pocket of the first man. When he turned
around I recognized only the Latin characters. I could not tell what
the language was.
Whenever the men came I was frightened and excited, hoping that
one of them would drop a hint that another member of my family was
saved. It was hard for me to believe that all were gone. With these
thoughts and uncertainties surrounding me, I was terrified. I knew
nothing of an outside world—my home in Tsarskoe Selo was the only
world I knew. Perhaps all this was a retribution, because I had often
envied girls who were free to go where they wished. As a young girl I
had never taken anything seriously. I had always been shielded,
often looked on with amusement, until the war broke out when
suddenly I discovered how serious life was to be. Now no one was
left to stand between me and reality. These dirt walls were reality. Yet
even here someone protected me. Beyond these walls there seemed
to be some sinister power, yet I could not comprehend it all. Days
and days passed, perhaps weeks and months.
Sitting up in bed was a short preliminary, a to-be milestone. Standing
on my feet, first touching the ground, I felt the braided straw rug on
the earthen ground as my head reeled in dizziness. I could not get
back to my bed fast enough. That proved one thing; I was not as well
as my nurse had thought.
Next morning she put me on my feet once more. My legs were
stronger and there was no return of my dizzy spell. I stood a very
short time, then thankfully I found myself in bed. This was repeated. I
protested against these exercises, because my thoughts and my
whole being were disturbed by them.
All too soon she had me walking the length of the rug several times. I
wept defiantly as she led me along. I staggered frightfully, but in the
end I forced myself to walk as long as I could endure it. Finally I had
it mastered and the woman was satisfied.
Then came the time when the woman began to bring things from
above. She brought clothes to dress me in. First she drew on long,
heavy underwear. Then she put on me a pair of old black cotton
stockings, a slip, and an old gingham dress, so faded the original
blue-gray color was almost undiscernible. Finally she fastened on
peasant shoes two or three sizes too large. My original shoe size
was about four-and-a-half at the time. She stood me up, tied a
babushka on my head, threw a coat around my shoulders and
walked me toward the ladder. “We are going upstairs,” she said.
“The outdoors.”
My heart started to beat. Perhaps they were going to kill me. The
thought of possible death did not generate fear now.
If I were going to my death, my mind was ready, but my body lagged.
My hands held tight to the rung of the ladder when I realized the left
side of my lower back was injured. I could not raise my feet without
help. The woman lifted them one at a time—to the first rung, then to
the second. She unclutched my hands and placed them on the next
higher step. She swung herself behind me, her hands on the rung
beside mine, her body framed me like a strong armchair. She began
to climb, lifting me ahead of her, up and up, and through the trap
door.
I climbed out on my hands and knees as she instructed me to do.
She guided me along a dark hall about two yards wide through a
door to the opposite side and into a room. Sitting at a table in front of
me were the two men who had previously visited my dugout. A
candle on the table was the only light in the room. The windows were
tightly covered with heavy cloth. These things my eyes took in as the
woman led me to a chair facing the men. My mind was calm but my
body shook uncontrollably.
The man, my first visitor, was the spokesman. “Don’t be afraid,” he
began. “You know we are trying to help you.”
His voice was reassuring and my body calmed a little.
“We are in great danger,” he continued. “Spies have been
everywhere, searching for missing bodies. If anyone comes near
you, and tries to speak to you, pretend to be deaf and dumb. Make
signs with your hands but never speak to anyone, not even to us,
unless we first speak to you. We cannot be careful enough.” In a
softer tone he added, “I grieve to inform you—the others are no
more. I can tell you nothing more.”
He paused deferentially. I understood. That subject was closed
between us.
In a moment he went on, “It is becoming too dangerous to remain
here. We must go away, but first you must accustom yourself to the
outdoors. Ahead of us is a long, strenuous journey. We dare not risk
the daylight, so the trip must be made after dark. Tonight will be a
starter. Tomorrow we will see you again.”
XXX
RECOVERY
I was dismissed. It was over. I was not to be killed. My body
throbbed with gladness.
The woman was standing beside me. She led me to the door and out
into the open night. The air was sweet and fresh, so noticeable after
being accustomed for so long to musty air. I breathed deeply to
refresh my whole being. It was so long since the last time I had seen
the night all lighted up with golden stars so near and yet so far. This
was the most beautiful night and the saddest one I could remember.
The horizon seemed to be far away, sad and quiet as if the world
were in a deep slumber. But probably this very minute some one was
facing a death sentence.
A heavy stone lay on my soul. I could find no consolation. Never will
I see them again. My sisters fresh as rosebuds, in the very morning
of their lives, and now withered away before they even blossomed,
their youthful faces now covered with the cold earth, vanished
completely and forever before my very eyes. My heart was aflame
with a grief that was tearing my soul.
Were these the same stars which looked down on us at Tsarskoe
Selo? At Livadia? The same as on our cruises, when Father’s stories
about the heavens seemed so real? Father could see them no more;
nor Mother, nor sisters, nor my brother Alexei. Knowing that their
eyes were closed forever, filled me with a loneliness I could not bear.
How could the stars go on shining as if nothing had happened? How
could the air be so sweet and fresh when such foulness had taken
place? If my family could not breathe this fresh air, how could I? And
how could I gaze on this heavenly grandeur?
All about me reminded me of my family. I had no more tears but I
cried inwardly. I lost my balance. I collapsed on the ground. The man
and the woman were watching me. They rushed to help me to my
feet, and back into the house and down the ladder.
Again I sank into the damp earthiness of my tiny room, thankful for
its darkness. Here I felt closer to my family. Outside the stars could
sparkle, the air could be fresh, but inside the contrast could not flaunt
itself before me. I need not look at a world untouched by our tragedy.
In the middle of the night I awoke to find myself walking about my
dugout. I was completely confused, with no idea of where I was. My
bare feet sank into the soft dirt. At last my foot touched the straw rug
which led me to my bed, and in bed was still the welcoming warmth
of the stone wrapped in a cloth.
Walking around with bare feet had given me a slight cold. The
woman was upset; she attributed the setback to the night air, to my
first trip outdoors. The men called early in the morning. They were
annoyed that I had a cold but agreed with the woman it was best to
defer another trip upstairs until I felt better. I heard them say, “Speed
up her recovery.”
I lay still another night wrapped in my thoughts. Though the men had
said that my family was no more, still I would not believe it How
could they be so sure? I would never cease to hope, since I had
learned how difficult it was to die. To me their nobility, their trust in
God, their character were more impressive than the grandeur of the
night. God would not fail them.
But we were separated. That was certainty. Somewhere I would be
deposited to face an indifferent world, a world that would not bend its
knee to me. I must suppress my identity and make a new life, all
alone. God knows how I missed them all. I lay there, one minute
hoping, then despairing. I felt close to them in a world which was not
theirs nor mine. The woman continued her care of me; I was
suspended between two worlds belonging neither to this one nor the
one to come. The idea crossed my mind several times that suicide
was an easy escape from my misery, but my strong faith based on
years of prayer would not permit this lack of will power.
Soon my cold faded away and once more the woman had me
climbing the ladder. This time she stood on a chair, put both hands
under my arms and lifted me up the few rungs through the trap door.
In a few moments I was again in the presence of the same two men.
As before, the only light came from the candle on the table. The
windows had the same heavy coverings. I almost said, “Good
evening,” but remembered not to, just in time. With no preliminaries
the spokesman started immediately.
“We are very much interested in straightening out a few things,” he
said. “We want to ask you some questions.”
I was all fear. At Tobolsk, at Ekaterinburg, questions meant traps.
Surging through me, I remembered my Mother’s advice: “Answer
courteously but give no information.”
“Were they unkind to you in Tobolsk?”
I wanted to tell the truth. In spite of my impaired speech, they wanted
me to answer their questions.
“Very unkind, the last days,” I answered.
“What sort of things did they do to you?”
I hesitated. There had been so much torture and suffering, it was
difficult to begin with any specific detail. In contrast to the final
outcome, the treatment we endured at Tobolsk suddenly seemed
trivial. I could not mention anything specific, not yet. The tragedy
towered over all events, making all others seem unimportant.
“Everything to contribute to our unhappiness and humiliation,” I said.
“Who were with you in Tobolsk?” he began.
Something I could answer easily. I told him, “Our friends, and
household help.” Their faithfulness excited my memories.
“Did they all go with you to Ekaterinburg?”
While in thought, I raised my eyes and saw a door on my right side
which apparently led into another room. Through a crack I saw a
bright light and a shadow flitting across the crack in a sort of
rhythmical motion, as if someone were swinging back and forth. My
thoughts were distracted for a moment. My training came to my aid. I
could see without betraying what I saw. I hid my surprise at
discovering that there were other people in the house besides the
two men and the woman. I dismissed my curiosity since I was
beginning to have confidence in these men. Their questions must be
answered.
I began, “Some went first with Father, Mother, and Marie, Dr. Botkin,
Prince Dolgorukov, a maid and Father’s valet. When our parents left
Tobolsk the others stayed to take care of us children who were left
behind to go later when Alexei should be better.”
What kind of quarters did we have in Ekaterinburg? Did we have
enough to eat? Did we ever go outdoors? Did we see our friends?
How did we pass the time? These questions were meant to pave the
way for more questions that were to come later and to encourage me
to answer them. In a way I was glad to confide my sorrow.
When they were through, one of the men signalled the woman, who
led me outdoors. My second walk in the air. I had decided to take the
outing without once lifting my eyes to the sky. I took short breaths
and leaned heavily on the woman’s arm. We walked around the
house. Guarding us, I sensed rather than saw, was one of the two
men, walking a few feet behind us. At last we were back at the
entrance. The house was dark as we entered the first room and
passed through the open trap door and down the ladder. The trap
door was lowered and I noticed a cloth was nailed on the inside. No
sounds must penetrate through that floor. The exertion and
gratification at my own courage put me into a sound sleep that night.
I awoke stronger and aware of a new milestone in my march to
recovery. Each day the terrifying world I knew nothing of drew closer.
I had almost ceased to struggle to keep from entering this world of
reality. I was being carried like a leaf floating on the surface of a fast-
flowing stream. I could not stop or sink. The prospect of living my life
in good health would have been frightening enough, but now I must
face ill health and loneliness as well. If only crying could oust these
seething tortures.
The woman was busy folding a blanket. When she finished she piled
it on her arm, tossed the pillow on top and lowered her chin on it for
a firm grip on her burden. Now she was climbing the ladder, load and
all. There was something final in the way she climbed. It suddenly
dawned on me that she had spent the many nights close by my side.
Satisfied that I was out of danger, she was henceforth going to sleep
upstairs. I had not been conscious of her presence; misery had
made me deaf and blind. Now that her watchful custody was
removed, I became frightened and longed for the nearness I had not
been aware of.
Without a clock, I had no idea at what time our day started. When
the woman appeared, it was morning. The smoky window became a
panel of gray after she removed its covering. I always listened for a
“Good morning.” But that was all. She never did tell me what I should
call her. If I needed her attention, I whispered, “Lady, please.” I did
overhear the man call her Iliana or Irina. When she combed my hair,
she did it gently. All her services were performed tenderly. I thought I
detected a resemblance between her and the man who was the first
spokesman. I wished I knew something about these men and the
woman.
After an early supper she helped me to get dressed again in the
same grotesque clothes and took me to the room above. The same
men awaited me; the same rhythmical shadow flitted through the
crack. Previously the questions had been of a general nature. Now
they began to ask me more personal ones. They asked about
Madame Vyrubova. Did she influence the Tsarina? Was she intimate
with Rasputin? Did she live in the palace? I did not want to answer
any of these questions, yet I did not dare to refuse.
All the time the shadow continued to pass over the lighted crack of
the door. Who could it be? Was there someone writing down my
answers? I was terrified. Suddenly I became so exhausted that I
thought I would fall from the chair. My interrogator saw the situation
and excused me. The woman accompanied me outdoors, and we
walked around the house several times. Then I returned to my little
hole. Once more I sank into my congenial darkness. The woman
climbed the ladder, her touch was as soft as a feather. The trap door
opened, then lowered back into place, quietly but firmly.
One day she brought me a piece of meat and vegetables. I refused
to eat meat. The woman had no longer to bandage my wounds; they
had healed sufficiently. Now I felt an itching sensation on my head
and the woman was pleased with my progress. “Your hair will cover it
nicely,” she said. There in the darkness my hair was growing fast. I
was able to braid it.
Ahead of me lay the nightly inquisition. Yet each trip into the
outdoors made me more independent physically. Once more and
many times later I sat in the question room trying to control myself in
the face of the curiosity of these two men and the woman. Now my
Mother was the subject of their questioning.
“Did your uncle come from Germany to see the Tsarina?” The
shadow in the next room seemed poised for my answer. Suddenly I
was glad of the recording. Here was the opportunity to show Mother
as the eager helpmate that she really was, trying to report to Father
the facts as she saw them in his absence. “Did the Tsarina listen to
Rasputin, because she believed in his honesty, foreseeing, and
experience?”
I answered, “Whatever Mother did, she did it only for the good of
Russia. When Father did not agree with Mother, she accepted his
decision as final, knowing she could have no further influence.” I
expressed these thoughts as carefully as I could, hoping whoever it
was would take them down accurately.
Every evening for some two weeks I was questioned. Each period of
questioning lasted about an hour. When each bout was ended I was
burning as with a fever. The questions were personal and plentiful.
The subjects were continually changed, covering the entire Imperial
family and the palace staff, as well as the household employees.
Many of these questions seemed so impertinent to me that one night
I burst out, “Why are you asking me all this?” They replied, “We only
want to know.”
Gradually I began to take in my outdoor surroundings. Not far away I
saw a haystack. Beyond it, a dark vastness, perhaps a forest or low
hills. During my walks around the house, I noticed that it was square
and squat like most peasant houses. I gathered it was made of
wood. The roof was shingled. I tried to find my tiny window and
finally located it behind the camouflage of hay. I could hardly see it.
Now I understood why my room was so dark.
The house stood some distance from the road and a long dirt
driveway extended from the road to the rear of the house. To one
side was a large shed, perhaps a barn, which apparently did not
house any animals since I heard no sounds from it Occasionally I did
hear lowing herds in the distance. Perhaps one of these cows was
responsible for the milk I received each day. There were no signs of
horses or chickens. But several times I heard a faint train-whistle in
the distance. I never saw any arrivals or departures. Did these men
come from the neighboring houses and walk across the fields? What
went on in this house was a complete mystery to me. Did these two
men and the woman live in this house? There was another young
woman. Was she behind the ill-fitting door? I had only seen the hall
and the question room, but I felt sure there was another room in the
house. The furnishings I saw were meagre. Perhaps this was an
abandoned farmhouse or discarded servants’ quarters attached to
someone’s estate. The outside, too, had a deserted appearance. I
noticed some hay scattered near the house. My observations were
all based on what little I could see in the darkness. I felt sure these
people were in someone’s service, or they were using the place as a
temporary hideout.
The men became quite friendly. The woman continued her silent
care of me. The men talked freely, even joked about my recovery.
Without warning, the question I had always suppressed, suddenly
broke out. “Why did you rescue me?” I inquired.
The faces of both men turned red. The man I first met was shocked.
The second man’s eyes blazed with fury. “What is it that you want to
know?” he said.
My feelings were deeply hurt at this coarse reply. My fears returned
in full force. The worst must lie ahead.
It was obvious that I must soon go away, otherwise these people
would pay the penalty. Now I wanted to stay in my dugout forever. It
was mine and I was part of it. I would inscribe my name here, but
where exactly? I had nothing with which to write, no crayon, pen or
pencil. There was a hairpin on the table. Quickly I was out of bed
and standing on the rug. I pulled out the small drawer and set it
upside down on my bed and began scratching my name with the
hairpin. I bore down with all my strength on the bottom of the drawer
and formed the letters and numbers: “A.N.R. 1918.” It could not have
been a legible signature but, such as it was, there it would stay, a
witness to my habitation, these hairpin hieroglyphics.
A few days after this incident the woman seemed to take unusual
pains with my grooming. She braided my hair smoothly. She gave
me a fresh pillow which had a lace edging, sat me up and dressed
me in one of her jackets. She arranged my covers neatly. By the time
she had finished the men were already descending the ladder.
The first man took a small kodak from his pocket and after lighting
several candles snapped my picture. A few days later they returned
with several prints. I had one of these until it disappeared with my
manuscript. The clearest object in the picture was the lace on the
pillow case. How different I looked! My nose was still swollen, my jaw
caved in, my eyes had many light dots.
“Isn’t it a splendid likeness?” the spokesman was saying.
As they turned to climb the ladder, they reminded me of the danger
of their position. “Things are terrible,” they said in unison. “People
are lined up and shot at the slightest excuse.”
I gathered that they were more and more frightened at having me
around. The questioning continued, followed by a walk each time.
How could they think of so many things to ask?
My family would have been surprised at my diplomatic skill. The
mystery continued. I learned no more about the house. After each
outing I was returned to my dugout. Then I began to feel an
undercurrent of excitement which told me that the time of my
departure was near.
One day when I was again in the question room, one of the men
said, “We can not stay here any longer. We are taking you to another
little place. It is very risky. Never forget to be deaf and dumb. Speak
only with your hands. We start early in the morning. You will take a
short walk now, then sleep until we awaken you.”
Our outing was brief. Once more I was hustled down the ladder. The
woman helped me into bed and went away. Some time after
midnight, the woman returned. This hour reminded me of the night at
Ekaterinburg. I began to cry. Her worn, white face told me only too
well that she had worked many hours preparing for our departure.
She brought me a cup of milk. Her hand was shaking. I felt a warm
feeling of appreciation. I too was trembling. I spilled the milk. She
dried the splash on my dress and turned away but our souls were
knit together.
She rushed me to dress in the same clothes I had worn before,
except that the old dress now had a wide hem. It almost reached to
my ankles. My black stockings were well hidden by my high laced
shoes and the long dress. She tied a babushka around my head.
Silently she handed me a label which had apparently been removed
from someone’s coat or dress. Stamped on brown taffeta in gold
were a double-headed eagle and the words, “Mikhailov Moskva.”
Mikhailov was the name of a well-known Moscow firm. I could not
recall having ever seen such a label and could only guess at her
motive in giving it to me. Possibly she thought I would recognize it
and surmise something as to what had happened to its owner. I still
have it.
I asked once more what had become of my old clothes that I had
had on that fatal night. Puzzlingly she replied, “They were so badly
bloodsoaked that I had them burned.” I wished to ask her again what
became of the items I had had hidden in my clothes. I was afraid. I
was at their mercy. I had no choice. There were some fifty large
diamonds and pearls and about twenty-five rubies, emeralds and
sapphires.
I took a final glance at the room and thought of the uncertain future
ahead. Now that I was leaving this tiny spot, I knew that I owed it a
great deal. The only thing I had to give it I had already given—my
initials.
In front of the ladder I knelt down to pray for a moment for my dear
ones. I dreaded to leave the dugout for fear that I might never again
visit this part of the world where the remains of my beloved ones no
doubt were buried—somewhere nearby.
My mind went back to a question I was once asked: Why did I
always stand at some distance from my sisters? I now realized that I
must have unconsciously had the premonition that we would some
day be separated.
I blew out the candle and groped my way through the room to climb
the ladder, and out through the trap door. A clam was being tom from
its shell.
In the hall I was greeted with a rush of fresh air. Our departure was
to be immediate, with no light of any kind. In a few seconds the
woman led me outdoors.
XXXI
WESTWARD TREK
I was conscious of figures mysteriously scurrying back and forth to
the house. My eyes began to focus better and I could see standing a
man who led me to the back of a hay wagon, as if to introduce me to
the scheme devised for my escape. He took my hand that I might
feel him unlatch a little door, then he pushed my arm through the
opening, indicating to me the empty space inside. He guided my
hand to the bottom, to the bedding of hay and the blanket, then the
arched roof to feel the hoops laid closely above. He directed my
fingers to the cloth between the hoops, trying to let me know a
covering had been thrown over to keep the hay from falling through.
He made me touch the sides of the wagon and the arched top
covered with hay. My hiding place was to be this coop, camouflaged
as a load of hay. The ingenious plan revealed once more the risk
these people were taking. I stood hesitating between fear and
appreciation, when suddenly I found myself being lifted feet first
through the tiny door. He handed me a bottle of water and without a
word hooked the little door. Locked up in my little cage, I listened.
Footsteps. It seemed there were many. I was anxious to catch every
sound. I could hear nothing. The wagon bent forward as under a
heavy weight. A stronger lurch and we were in motion.
Now I felt like a little calf being taken to the market. Yet I had reason
to trust these people. Their careful preparation, their discreet silence
could be only for my safety. I could not understand them, but I could
not mistake their kindness. Perhaps someone would meet me at our
destination. The serious, elaborate precautions indicated we were in
great danger. This first part of the journey was no doubt the most
critical. Through the rear of the wagon I could see a light. It was the
sun coming up.
I presume we traveled for hours, the horse moving at a steady and
brisk pace. I could tell when we were going up or down. The road
was rough and I was badly shaken. These country roads were in
poor shape and full of ruts. The dust sifted through the partitioned
door and filled my eyes and nostrils. I felt I was suffocating. I could
hardly breathe. My dry throat stiffened. I reached for the bottle, found
and removed the cork, swallowed some water to wash the dust
down, and sponged my face. My cramped coop was long enough to
permit me to lie full length, and high enough so I could easily turn
over. I could even draw up my knees, though I could not sit up. I
rolled on my stomach and pressed my face against the little door to
catch any current of air. I hoped they would soon stop, but dared not
call out for fear that my voice would betray us. The driver seemed to
know the road well, as the cart did not hesitate in making any of the
turns. It had no springs and it jolted brutally and ceaselessly. My
head was splitting. Would my wounds break open? My face was stiff
and plastered with a mixture of dust and sweat. I was miserable. We
travelled for a long time. Then light began to penetrate through the
door and the wagon took a sudden turn. A plunge down and up
again, then slowly along a level road with many bends. It stopped. I
listened. Had we been halted for searching? Did someone jump
down from the driver’s seat? Some one was coming around the
wagon. It was one of the men, pushing the hay from the little door.
Suddenly the door flew open. In came a rush of fresh air. Feeling
unsteady I tottered into the arms of the woman. I was glad she had
come with us. She smiled, reflecting my pleasure at seeing her. She
held me for a moment before I could walk around to loosen my
tensed body.
It was most exciting to find myself free in the woods in the daylight. I
learned there was no trouble here. We had stopped for a rest and to
care for the horse. My eyes squinted and watered painfully, and I
could distinguish very little. I bathed my eyes and the woman tied a
cloth over them and left me sitting on a log. I lifted the cloth a tiny bit
to accustom my eyes to the light. First I saw some green, then the
forest, then a winding stream and myriads of bushes screening us
from the road—a perfectly secluded spot. Later in the evening we
resumed our journey, stopping several times for a rest. At daybreak
the light started again to seep into my coop. The way the horse
turned indicated we were not here by accident, but had actually
stopped according to plan.
It was a beautiful morning; the dew still on the grass made the air
superb. I could see some deep orange-colored flowers and some
wild asters. I plucked some of those dry seeds from the plants and
tossed them into the air, hoping they would fly through the woods in
the direction where my family was resting. I knew so little of the cruel
facts surrounding my dear ones. If I could only kneel beside their
graves for a silent prayer. But even this was denied me. Water
rushed down a little stream and humming insects flitted about No
prison walls here.
Presently the woman spread the army blanket on the ground,
motioning me to sit on it, and opened a lunch basket. She had some
hard boiled eggs, one for each of us, fried fish, bread. It was a
sumptuous feast, and a glorious feeling there under the shaggy
trees, the profusion of pines and birches, under the deep blue sky—
a typical Siberian scene. The horse stood still munching. The leaves
hung motionless, the birds were quiet; all nature seemed to breath in
suspended and sympathetic silence as we ate our lunch hungrily.
The great sacrifice these people were making impressed me once
more and I felt appreciative. In no time all three were asleep. In order
to make it easy for everybody I had an urge to run away, but
because of the effort these people were making, my conscience
would not permit it. Also probably at the “little place” they knew of,
someone might be waiting for me.
The little brook rumbled on in the quiet of the countryside. It alone
defied silence. The trees stood in a colored hush of yellow, red and
green. The white birch and the trembling aspen beat their wings. All
this indicated it was early fall and nature was ready for its long sleep.
After taking these details of the setting, I realized I, too, was
exhausted.
The men were harnessing the horse and the woman was packing
when I awoke. She was waiting to fold my blanket. I was chagrined
to have been such a poor sentinel, but no harm had resulted. Now
the men were ready. The woman started for the wagon, so I
followed, though I could have enjoyed nature in that spot indefinitely.
In a few minutes I was back in my coop; the men and the woman
were in their places. The wagon bent forward several times and we
were on our way again.
We moved steadily and confidently. The way must have been
perfectly familiar to our driver. I did not hear any other passing
wagons, nor was I conscious of passing through any village. I kept
thinking about the beautiful spot in which we had lunched. That day
God and nature were fused together. There in that beautiful resting
place the family had been with me in spirit guiding me in the very air
I breathed, caressing and encouraging me. I imagined I could hear
Father’s quieting words. Even now I thought those words might be
directing us. The driver seemed so sure of the way I became less
alone, less suffocated, less desperate. I could lie quietly.
Transcended, I simmered in wishful dreams. This was the second
night on the road. The wagon rumbled. Another abrupt turn
awakened me. I listened. The horse halted. One of the men was
opening the door of the coop. He pulled me out and set me on my
feet. We were in the midst of a thicket. The third stop on our journey.
It was twilight, the sky still holding its sunset colors. The colors faded
into the gathering darkness.
The men worked hurriedly, nervously and anxiously to get through
feeding and watering the horse. It was a short stretching period, only
long enough to eat from our basket and let the horse finish his feed.
Not one word broke the evening silence, not one moment was
wasted. Once more I lay in the coop and the horse started out again.
Even in the dark I could feel a certainty of direction. The horse’s feet
met the ground as if the way was not strange to him. We went on
about the same pace as during daylight. Each moment I was
prepared for any difficulty which might arise. So far there had been
no trouble. Would we travel all night? I could not sleep in the chilling
darkness and I did not suppose any of the others did. Suddenly a
lurch to the left, a short run and a halt. No sounds, only poignant
stillness. One of the men helped me out of the cage. I found myself
standing beside a house. The woman opened the door and walked
in. They all seemed to know this house. Though it was dark, they
made their way around, and lighted a candle. The woman led me to
a bed. After she finished with me, she went out of the room.
It seemed but a moment before the woman was awakening me from
my sleep. I was getting used to the inevitable. It was still dark when
she came in with a candle in her hand. She guided me to a table
where milk and bread was laid out for me. Then she led me outdoors
to the wagon which stood ready. I could see clearly by the light of the
stars.
To my surprise, we did not stop at the rear of the wagon. We passed
to the front where one of the men already sat in the driver’s seat.
The second man turned as if to help me up. I looked at the woman,
seeking an explanation. She put her lips to my forehead, pressed my
hand, then gently pushed me toward the man who helped me to the
seat beside the driver. The other man climbed after me. The wagon
started, it had two horses this time. We had left the woman behind! I
suddenly realized the woman had said good-bye. I was never to see
her again. We turned out of the yard, onto the country road. A man
on each side of me and the woman gone. I had misgivings. The men
sat rigid, gazing at the pre-dawn blackness. They were on the alert.
To them, leaving the woman behind was a planned milestone in their
hazardous task. Her part was finished, now it was up to them to
carry on.
The woman was protection to me, the last remnant of a feminine
world. We were still in danger, judging by their alertness. I wondered
why I had not returned to the coop. These men were stoical and
brave to attempt this journey at all. Their continual watchfulness
inspired confidence. One of these men had annoyed me with his
questions several days ago. Now he sat beside me.
Each moment took me farther away from the woman. I had taken her
protection for granted. My feeling for her had been a mixture of
wonder and resentment. I always hoped that some day she would
talk to me and tell me what I wanted to know. Now that day was
gone forever. But she had done her part faithfully and I must be
grateful. That last night at the dugout, when we looked eye to eye,
she understood what I wanted most. I would have liked to put it in
words. That night I had felt close to her. Now she was far from me,
free to return to her accustomed way of life. What was her life? On
our way, had we dropped her at her home? This dugout, where I had
been so long, was it far from Ekaterinburg?
The men spoke of Uktus and Mramorskaya. Was one of these the
location of my dugout? It was an irritating mystery. No part of the
mystery was solved and now the woman was gone without telling me
a thing.
The men kept peering through the darkness, taking advantage of its
unlimited screen to make all possible progress. My inner darkness
exceeded the darkness of the night. At length the outer darkness
lifted to herald the coming dawn. Soon the majestic sun appeared
unchallenged. I was cold and numb until a quick turn of the wagon
made me forget my numbness.
The horses halted and the men stood up to stretch. They jumped
down and helped me to alight. Then handing me the basket and the
army blanket, they began to unharness the horses. This was the
beginning of our fourth day on the road. I attended to the food while
the men cared for the horses. The basket contained a fresh supply of
food—black bread, eggs and a bottle of water. The woman must
have baked the bread for us, while we were asleep. I found a sunny
spot on which to spread the blanket while we ate.
When we finished they jumped to their feet, folded the blanket and
we were off again. I climbed to the driver’s seat, where we sat three
abreast. We were a family of peasants driving between work fields.
My faded clothes fitted perfectly into the scheme. That day the
horses seemed to know the route as well as the driver. They knew all
the byways. They must have driven these roads frequently. From a
hill I could see a village in the distance. I did not ask their names and
the men did not volunteer the information. We did see some people
walking on these roads. We also passed a few wagons.
When I noticed that the men were less tense, I assumed we were
beyond the danger zone. We were all in a more relaxed mood. We
stopped in another spot and laid out the food, but there was very
little left. They were so tired, they hardly could eat The meager meal
was soon finished and they harnessed the horses. One of them took
the blanket and climbed on top of the hay and spread it out. The
other man helped me up; here I was to spend my night. How
imperturbable these men were, so reassuring when I was most
afraid. Their thoughtfulness touched me. Now that the men could not
see me, I could shed the tears I had turned back yesterday. I fell
asleep until the wagon halted again. I sat up in fright. It was a dark
night. The stars were quivering. I heard the straps fall. The whiffle-
tree hit the ground. The horses were stepping out of their traces. We
were to spend the night here. The men stretched outside beside the
wagon.
We had been sleeping for a while when I thought I heard a scream of
some kind. I heard it again. Now it was a shriek, the horses neighed
with a shrill sound and jerked the wagon to which they were tied. The
men sprang to their feet and began to pull some hay off the wagon.
They threw it to the ground and lighted a match to make a fire. Soon
the horses quieted down. I overheard the men saying there were two
wolves.
After this scare it was easy to keep awake. I felt sorry for the men
who were up and down several times during the night. At last dawn
appeared and I heard them stirring in preparation for a new
departure. I combed my hair, using my fingers for a comb and my
palm for a brush, trying to make myself as presentable as possible. I
knew I did not look well groomed but I did not much care. One of the
men helped me down from the wagon, the other brought some water
and poured it into my hands. I washed my face without soap. We
had spent the night not far from a farmhouse known to my
companions.
We emerged from the forests into open fields, then another forest.
Judging by the sun I figured we were moving in a southwesterly
direction. These inscrutable men stopped at another byway for rest
and food. We ate bread and washed it down with water. Not a word
was spoken during lunch. Soon we rattled again along the roads and
country lanes without any special incident. We met a number of frail
men and women, and barefoot children wearing tattered clothes. We

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Being Ethical and Socially Responsible

INSTRUCTOR MANUAL RESOURCES

2.1 A WORD FROM THE AUTHORS

2.2 TRANSITION GUIDE

New in Chapter 2: Being Ethical and Socially Responsible

philanthropic activities are revised and updated.

A new example of how AT&T responded to the high school drop-out

2.3 QUICK REFERENCE GUIDE

Instructor Resource Location

2.4 LEARNING OBJECTIVES

2.5 BRIEF CHAPTER OUTLINE

II. Ethical Issues

III. Factors Affecting Ethical Behavior

IV. Encouraging Ethical Behavior

C. Individual Companies’ Role in Encouraging Ethics

VI. The Evolution of Social Responsibility in Business

VII. Two Views of Social Responsibility

IX. Employment Practices

X. Concern for the Environment

XI. Implementing a Program of Social Responsibility

2.6 COMPREHENSIVE LECTURE OUTLINE

I. BUSINESS ETHICS DEFINED. Ethics is the study of right and

wrong and of the morality of choices individuals make. Business

II. ETHICAL ISSUES. Businesspeople face ethical issues every day,

III. FACTORS AFFECTING ETHICAL BEHAVIOR. The factors

ethical quag- mire.

3. Significant Others. The moral values and attitudes of

offensive to co-workers and possibly lead to lawsuits

C. “Opportunity” as a Factor Affecting Ethics

IV. ENCOURAGING ETHICAL BEHAVIOR. Most authorities agree

establish acceptable lev- els of behavior by passing more stringent

b) Managers must provide direction by fostering

have an impact on society and the consideration of that impact

has contributed more than $700 million to improve

$25 million in combined matching gift funds, making

the high school drop-out crisis, AT&T launched Aspire, a

VI. THE EVOLUTION OF SOCIAL RESPONSIBILITY IN BUSINESS

abuse of the free-market system and competition was

VII. TWO VIEWS OF SOCIAL RESPONSIBILITY. Government

business decisions are made within the firm—and there, social

individual businesses should not be expected to solve

VIII. CONSUMERISM. Consumerism consists of all those activities

B. Major Consumerism Forces. Major advances in consumerism

IX. EMPLOYMENT PRACTICES. Everyone who works for a living

3. Responsible managers have instituted several programs to

b) The second problem is that not all businesspeople are

X. CONCERN FOR THE ENVIRONMENT. Pollution is the

A. Effects of Environmental Legislation. As in other areas of

How should employers deal with proselytizing?

1. Existing law allows for undue

1. Water Pollution. The Clean Water Act has been credited

$1.6 billion Superfund in 1980.

1. Current estimates of the annual costs of improving the

XI. IMPLEMENTING A PROGRAM OF SOCIAL