The Business 2.

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Unit 8  Fair Trade Progress Test Name:

Total:
Part 1 Reading
Task 1  7 points
Read the article below about business ethics.
For each question or incomplete statement choose either A, B, C or D.
What are business ethics and why should we be concerned with them? In this context ethics relates
to standards of behaviour in the workplace and with customers and partners. Business ethics are
often presented in the form of an ethical code of practice dealing with the treatment of employees,
the avoidance of misleading information and the expectation that regulatory codes are followed to
the letter.
Professional ethics covers a vast area of behaviour from all fields of business practice. Financial
misbehaviour is the most obvious example. Bribery is obviously illegal, but other areas such as
executive compensation, where vast sums of money are paid to corporate bosses, can be regarded
either as pay-offs or rewards. Such payments are widely condemned, but little is being done to
change the law.
Other examples of creative accounting or misleading financial information have resulted in highly
publicized downfalls, as in the infamous case of the American company Enron. At its height, Enron
employed around 22,000 people and was a world leader in the production of electricity, natural gas
and communications, with revenues of over $100 billion. Its success, however, was based on creative
and long-term accounting fraud. The company subsequently went into bankruptcy and its leaders
faced condemnation and long-term jail sentences.
Arguably less headline-grabbing, but perhaps more immediately applicable to the individual, is
the area of ethics surrounding the employer-employee relationship. All sorts of legislation exists to
protect the individual against cases of discrimination in the workplace, such as sexism, racism and
ageism. In larger organizations, unions exist to help fight for the rights of the workers.
Another area of business ethics involves the handling of information. This could be within the
employer-employee relationship, where an employer or the human resources department may have
certain information about an employee – such as a medical condition – which cannot be made
public. If the employee needs treatment or hospitalization the company needs to know, but if this
could mean their colleagues in some way mistreat them, then it is the employees’ right to keep that
information on a strictly need-to-know basis.
Similarly, sensitive material from the workplace cannot be taken outside the company, where it
might compromise the competitiveness of the organization or weaken its market position. At the
same time, information deliberately released by a company must also be dealt with ethically. The
content of advertisements is covered by legislation protecting the public from influences such as
subliminal messages, the targeting of certain products at children and the use of appropriate images
to sell products. An example of this is the Benetton advertising campaign, where images such as
a bloodied, unwashed newborn baby with umbilical cord still attached, a priest and nun about to
engage in a romantic kiss, and pictures of inmates on Death Row brought about massive negative
publicity.
It is perhaps this example which underlines one of the reasons for having a set of ethics to follow
in business. A sound moral direction not only leads to more effective business practices, but people
are often willing to pay a premium for a ‘feel-good’ product – look at the example of Fair Trade
products. So not only can a sound ethical policy affect society for the better, but it can also boost
profitability.

2.0 B2 Upper Intermediate Teacher’s Resource Disc © Macmillan Publishers Limited 2013 Tests  1
Progress Test 8

1 In relation to business, what is meant by the term ethics?
A The way you talk to people at work.
B The way in which employees conduct their work.
C How a company should behave.
D How individuals are treated at work.
2 The ethics of paying money in some form or other are
complicated because
A mismanagement of money is hard to spot.
B financial compensation is legal.
C it is easy to cover up the payment of large sums of
money.
D it is often done under some other explanation which
is hard to reject.
3 Enron has become a famous example of financial
misbehaviour because
A of the longevity of the fraud.
B the revenues were so high.
C the company executives were well-known.
D it produced so many things.
4 According to the text, why are unions necessary?
A Individuals are not strong enough to deal with large
firms.
B To fight for workers’ rights in a company.
C To make the place of work more attractive.
D So that outsiders can have some form of control over
big organizations.
5 Why might a human resources department not share
information within a company?
A It protects the employees from contamination.
B Companies can’t divulge information when they feel
like it.
C It offers some protection against mistreatment.
D It allows individuals a choice.
6 How is the public protected from undue influences in
advertising?
A Certain images are banned.
B Children are rarely used in advertising.
C Advertising must be open, directed to adults and
represented correctly.
D Advertising should use the correct message for the
product aimed at the right person.
7 Which sentence best summarizes the text?
A Ethics are essential in business.
B Both people and organizations are protected when
ethics are used.
C An ethical code of practice is difficult to maintain.
D When business exists within an ethical framework, it
benefits both people and organizations.

Text 2  8 points
Complete the following text using the correct word from the box.

basis   ​claimant   ​compensation   ​insurance   ​lawyers   ​litigation   ​rights   ​victims

Although the connotations of the word ‘ambulance’ are good, add the word ‘chaser’ and they
change dramatically. What is an ambulance chaser? This is the term given to unscrupulous
(1) ________ who follow ambulances around, approaching victims at the scene of an accident or
disaster in order to solicit business. By approaching the (2) ___________ when they are at their most
vulnerable, and promising excessive (3) ___________, they encourage people into a (4) _____________
process which they may never have otherwise considered.
As personal injury claims have risen – some for the most minor of ailments – so have the awards in
the successful claims grown substantially. This has encouraged the escalation of the firms which tout
for business by giving the impression there is easy money to be made by putting in a compensation
claim. Often this is offered on a ‘no-win, no-fee’ (5) _________, which means it appears there is little
risk for the (6) ___________, but this is often masked by hidden costs.
One of the effects of this on society has been that public attitudes to risk have changed. Because of
the constant threat of possible high payouts, (7) ___________ premiums have increased enormously.
This has had the effect of reducing public choice at public events, as organizers cannot afford to pay
the premiums. A balance must be struck between the (8) __________ of people with genuine and
justifiable claims to compensation, and those in it for a chance to make a bit of cash.

2.0 B2 Upper Intermediate Teacher’s Resource Disc © Macmillan Publishers Limited 2013 Tests  2
Progress Test 8

Part 2 Writing
Task 1  15 points
Write an email based on the following brief. Write about 100 words.
Write an email to your colleagues in your department warning them of a telephone sales scam
which tried to trick you into buying a new mobile phone contract, but which contains lots of hidden
costs. Advise people how they might be approached, and what they can do if they do sign up for the
scheme.

To:

Cc:

Subject:

Task 2  5 points
Write five rules for checking in and travelling from airports. In each sentence, use the word
given. The first one has been done for you.
0 must
You must remain in your seat after the captain switches on the seatbelt sign.
1 mustn’t

2 are allowed to

3 can

4 may

5 may not

Part 3 Listening
Task 1 2:40  5 points
Listen to Margaret, a speaker in a radio phone-in speaking in support of Fair Trade. Complete the
sentences below.
1 It’s rather surprising that the writer himself has forgotten to mention that free trade and
globalization are all about the .
2 It may be true that big producers who sell to Starbucks and Caffé Nero can improve their
and .
3 They’re altogether.
4 And , free trade is dangerous because it encourages
unbalanced economies.
5 With fair trade, you spread the risk, and you give everybody a chance to
.

2.0 B2 Upper Intermediate Teacher’s Resource Disc © Macmillan Publishers Limited 2013 Tests  3
Progress Test 8

Task 2 2:41–2:48  5 points

Listen to eight speakers talking about contracts and corporate ethics. Decide if the following
statements are true or false. Circle the correct answer.
1 Victor Lustig sold bells from the Eiffel Tower. True / False
2 Speaker 3 is describing nepotism. True / False
3 The Italian mayor wanted a castle in the mountains. True / False
4 The Korean scientist’s wife stayed in luxury hotels. True / False
5 The marketing executives targeted their competitors with bombs. True / False

Part 4 Speaking  5 points

Prepare a one-minute presentation on one of these topics. You have one minute to prepare
your talk.

A
Setting guidelines: What to include when writing formal
guidelines.

B
Communication: How to communicate assertively while still
showing willing to negotiate.

2.0 B2 Upper Intermediate Teacher’s Resource Disc © Macmillan Publishers Limited 2013 Tests  4