Understanding Business 11Th Edition Nickels Test Bank Full Chapter PDF

Chapter 04 - Demanding Ethical and Socially Responsible Behavior
Understanding Business 11th

Edition Nickels Test Bank
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TEST PLANNING TABLE FOR CHAPTER 4
LL:1 LL:2 LL:3

Knows Basic Understands Applies Principles
Learning Objective
Terms and Facts Concepts and
Principles
1. Explain why obeying 1,2,3,4,5,6,7, 8,9,10,11,12,13,14,15, 17,18,

the law is only the first 145,146,147,148 16, 157,158,159,160,161,
step in behaving 149,150,151,152,153, 162
ethically. 154,155,156~
2. Ask the three 19,20,21,22,23,24,25,26, 27,28,29,30,31,32,33~, 34,35,36,37,38,

questions you need to 163,164,165,166,167 168,169,170 171,172,173,
answer when faced with 264,
a potentially unethical 270*
action.
3. Describe 39,40,41,42,43,44,45,46, 53,54,55,56,57,58, 59,

management’s role in 47,48,49,50,51,52. 179,180,181,182 183,184,185
setting ethical standards. 174,175,176,177,178
4. Distinguish between 60,61,62,63,64,65,66,67, 69,70,71,72,73,74, 75,76,77,78,79,

compliance-based and 68, 195,196,197,198,199, 201,202,203,204,205,
integrity-based ethics 186,187,188,189,190,191, 200 206,
codes, and list the six 192,193,194 261,263,
steps in setting up a 267*
corporate ethics code.
4-1
5. Define corporate 80,81,82,83,84,85,86,87, 109,110,111,112,113, 120,121,122,123,124,

social responsibility and 89,90,91,92,93,94,95,96, 114,115,116,117,118, 125,
compare corporations’ 97,98,99,100,101,102,103, 119, 239,240,241,242,243,
responsibilities to various 104,105,106,107,108, 227,228,229,230,231, 244,245,246,247,248,
stakeholders. 207,208,209,210,211,212, 232,234,235,236,237, 249,
213,214,215,216,217,218, 238 262,265,266,
219,220,221,222,223,224, 268*,269*,271*
225,226
6. Analyze the role of 126,127,128,129,130,131, 134,135,136,137,138,] 141,142,143~,144~,

U.S. businesses in 132,133, 139,140~, 259,260
influencing ethical 250,251,252,253,254 255,256,257~,258~
behavior and social
responsibility in global
markets.
Total number of test items: 271
True/false questions are in plain text.

Multiple choice questions are in bold text.
Questions on boxed material are in bold text with a tilde~.
Essay questions are in bold underlined text.
Minicase questions are in bold with an asterisk*.
4-2
Chapter 04
Demanding Ethical and Socially Responsible Behavior and Answer Key
True / False Questions
1. The Enron scandal illustrates the difference between unethical behavior and illegal
behavior.
Answer: False
AACSB: Ethics
Bloom’s: Remember
Learning Objective: 04-01 Explain why obeying the law is only the first step in behaving ethically
Level of Difficulty: 1 Easy
Topic: The Ethical Concerns that Affect Business
2. Ethical behavior requires more than following the law.
Answer: True
AACSB: Ethics
Bloom’s: Remember
3. Legal behavior and ethical behavior are basically the same.
Answer: False
AACSB: Reflective Thinking
Bloom's: Ethics
4. A society gets into trouble when people consider only what is illegal and not also what is
ethical or unethical.
Answer: True
AACSB: Ethics
Bloom’s: Remember
Topic: Ethics for the Individual
4-3
5. Ethical behavior refers to the standards that are accepted by society as right or wrong.
Answer: True
AACSB: Ethics
Bloom’s: Remember
6. People should look at each situation individually and decide for themselves if it is right or
wrong.
Answer: False
AACSB: Ethics
Bloom’s: Remember
7. Given the level of diversity within the United States, agreement on common standards of
ethical behavior is unachievable.
Answer: False
AACSB: Ethics
Bloom’s: Remember
8. An accurate statement regarding this chapter is: "Business law establishes ethical
behavior."
Feedback: The most basic step in ethical behavior is the law, but ethics go far beyond
legality.
Answer: False
AACSB: Ethics
Bloom’s: Understand
Level of Difficulty: 2 Medium
4-4
9. Legal behavior is directly related to our relationships with others, while ethical behavior is
not.
Feedback: Legal behavior and ethical behavior are directly related to our relationships with
others.
Answer: False
AACSB: Ethics
10. Legal behavior is a first step toward ethical behavior.
Feedback: Ethical behavior requires more than following the law, but following the law is an
important first step.
Answer: True
AACSB: Ethics
11. Laws that protect us from fraud, theft and violence determine ethical behavior.
Feedback: Ethical behavior requires more than following the law, but following the law is an
important first step. Legality is narrower.
Answer: False
AACSB: Ethics
12. Moral behavior refers to behavior that is accepted by society as right versus wrong.
Feedback: Ethics defines the standards of moral behavior, or the attempt to live by certain
values and standards of conduct accepted by society as right rather than wrong.
Answer: True
AACSB: Ethics
4-5
13. Ethical behavior focuses on treating others fairly.
Feedback: Ethical behavior focuses on proper relations with other people. An ethical person
will treat others with honesty and sincerity. Perhaps the essence of this behavior is the Golden
Rule, "Do unto to others as you would have them do unto you."
Answer: True
AACSB: Ethics
14. Making accounting records more transparent may help restore trust in the free-market
system and leaders in general.
Feedback: Given the ethical lapses that are so prevalent today, several things can be done to
restore trust in the free-market system and leaders in general: (1) those who have broken the
law need to be punished accordingly, including religious people, government people, and
businesspeople; (2) new laws making accounting records more transparent should be passed;
and (3) making businesspeople and others more accountable may help.
Answer: True
AACSB: Ethics
15. Punishing business leaders who have broken the law may help restore trust in the free-
market system and leaders in general.
Answer: True
AACSB: Ethics
4-6
16. Making businesspeople more accountable for company actions may help restore trust in
the free-market system and leaders in general.
Answer: True
AACSB: Ethics
17. People involved in business may be tempted to do something unethical in order to

increase sales and profits, but rarely do because if they are caught, our legal system will
deal harshly with them.
Feedback: Many immoral and unethical acts fall well within our laws, but "white collar"
crime has not always been harshly punished.
Answer: False
AACSB: Ethics
Bloom’s: Apply
Level of Difficulty: 3 Hard
18. Jake and his college friends frequent a small pub on weekends. Last weekend, after a few
beers, one of his friends decided to take the salt and pepper shakers from their table
because they needed a set at their apartment. In this situation, this was not a particularly
questionable activity because it was a restaurant where one pays for these extras.
Feedback: Ethical behavior should not be situationally based. If the act is appropriate
behavior, then it is probably appropriate all of the time. This behavior in this situation,
however, is clearly inappropriate behavior.
Answer: False
AACSB: Ethics
Bloom’s: Apply
4-7
19. Ethical behavior involves the clear and easy choice of right and wrong actions toward
others.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 04-02 Ask the three questions you need to answer when faced with a potentially unethical action
20. Both managers and workers cite low managerial ethics as a major cause of American
businesses' competitive woes.
Answer: True
AACSB: Ethics
Bloom’s: Remember
21. A common form of cheating in schools today is plagiarizing online material.
Answer: True
AACSB: Ethics
Bloom’s: Remember
22. Making ethical choices is always easy.
Answer: False
AACSB: Ethics
Bloom’s: Remember
23. Two recent studies found a strong correlation between academic dishonesty among
undergraduates and dishonesty at work.
Answer: True
AACSB: Ethics
Bloom’s: Remember
4-8
24. The question "Is it legal?" establishes ethical behavior.
Answer: False
AACSB: Ethics
Bloom’s: Remember
25. It can be very difficult to maintain a balance between ethics and goals such as pleasing
stakeholders.
Answer: True
AACSB: Ethics
Bloom’s: Remember
26. Trying to make decisions that will benefit all parties involved is consistent with the
question "How will it make me feel about myself?"
Answer: False
AACSB: Ethics
Bloom’s: Remember
27. While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.
Feedback: Humor at someone else's expense is an example of unfair treatment of others.
Answer: True
AACSB: Ethics
Bloom’s: Remember
4-9
28. An ethical manager's decisions are based only on the following questions: "Is it legal?"
and "Is it profitable?"
Feedback: Ethics-based managers ask themselves the following questions when faced with a
potentially ethical dilemma: "Is it legal?" "Is it balanced?" and "How will it make me feel
about myself?"
Answer: False
AACSB: Ethics
29. Behavior that is in conflict with your values and sense of right and wrong can damage
your self-esteem.
Feedback: Ethics-based managers do what is proper as well as what is profitable. Decisions

that go against their sense of right and wrong corrode their self-esteem.
Answer: True
AACSB: Ethics
30. When facing an ethical dilemma, it is often helpful to discuss the situation with your
supervisor because ethical decisions will always withstand scrutiny.
Feedback: The ethics check question "How will it make me feel about myself?" focuses our
attention on the impact of decisions that go against our sense of right and wrong. Decisions
that corrode our self-esteem will ultimately injure the organization.
Answer: True
AACSB: Ethics
4-10
31. Business behavior determines the ethics of society. We can improve society's moral and
ethical behavior by first making a commitment to improving business's moral and ethical
behavior.
Feedback: Ethical behavior begins with you and me. We cannot expect society to become
more moral and ethical unless we as individuals commit to becoming more moral and ethical
ourselves.
Answer: False
AACSB: Ethics
32. Utilizing the phrase "the ends justify the means" as a corporate value system can
negatively impact company morale and competitiveness.
Feedback: In a recent study, both managers and workers cited low managerial ethics as a
major cause of our competitive woes. Employees reported that they often violate safety
standards and goof off as much as seven hours a week.
Answer: True
AACSB: Ethics
4-11
33. According to the Making Ethical Decisions box, after ex-cons have completed their
sentences, they should not be allowed to start their own businesses.
Feedback: The box profiles Catherine Rohr, an entrepreneur and activist who helps ex-cons
get back on their feet after leaving prison. She founded the Prisoner Entrepreneurship
Program (PEP) in 2004 and assists ex-cons in starting their own businesses.
Answer: False
AACSB: Ethics
Topic: How to Promote and Maintain an Ethical Environment
34. Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone
for unauthorized personal phone calls. Fred misrepresents his product to a potential
customer. All of these are examples of unethical behavior.
Feedback: All three situations violate the ethics-check questions of "Is it legal?" "Is it
balanced?" and "How will it make me feel about myself?"
Answer: True
AACSB: Ethics
Bloom’s: Apply
35. In reality, ethical behavior depends on the situation. For example, in negotiating a contract
with your employees, the way they win higher wages is by your losing the fight to hold
down labor costs. You realize it is a win-lose relationship.
Feedback: Every situation cannot be completely balanced, but it is important to the health of
our relationships that we avoid major imbalances over time. An ethics-based manager has a
win-win attitude.
Answer: False
AACSB: Ethics
Bloom’s: Apply
4-12
36. You are in a business meeting at work that requires your group to make an ethical
decision. Your willingness to post the final decision on the bulletin board in the break
room for all to see passes the test: "How will it make me feel about myself?"
Feedback: By posting the decision on the company bulletin board, you are demonstrating that
you stand behind the decision that was made, that you believe it is an ethical decision, and
that you do not need to hide your actions from your co-workers.
Answer: True
AACSB: Ethics
Bloom’s: Apply
37. As the human resources director for your company, it is your job to evaluate the
company's benefits plan. Although several workers utilize the company day care facility,
the facility costs the firm considerably more than another benefit might cost, such as
having an on-site physician. The on-site physician services are supported by insurance,
and the physician actually rents space from the company. Under these circumstances,
eliminating the day care is a balanced decision.
Feedback: Winning at the expense of others is not a balanced decision. The health of our
relationships with our co-workers is very important. We should avoid major imbalances and
strive to make decisions that benefit all employees.
Answer: False
AACSB: Ethics
Bloom’s: Analyze
4-13
38. On her company website, Ali asks customers who fill orders to place a check-mark in a
box if they are willing to let her share their information with her suppliers. By asking this
question, Ali is addressing privacy issues, and covering her actions in case someone
should try to sue her for sharing private information. She is responding to the question,
"Are my proposed actions legal?"
Feedback: Asking the question, "Are my proposed actions legal?" is the first step toward
addressing ethical concerns. By asking and answering this question, the business owner takes
the first step in determining if the action is acceptable behavior.
Answer: True
AACSB: Ethics
Bloom’s: Apply
39. Trust between workers and managers must be based on a foundation of fairness, honesty,
openness, and moral integrity.
Answer: True
AACSB: Ethics
Bloom’s: Remember
Learning Objective: 04-03 Describe management’s role in setting ethical standards
40. A growing number of people feel that an employee's ethics are a personal matter, and have
nothing to do with management.
Answer: False
AACSB: Ethics
Bloom’s: Remember
41. The majority of CEOs believe that employee misconduct results from the failure of
organizational leadership to establish ethical standards.
Answer: True
AACSB: Ethics
Bloom’s: Remember
4-14
42. Management can create an environment in which unethical behavior can develop.
Answer: True
AACSB: Ethics
Bloom’s: Remember
43. Corporate values, like personal values, are learned by observing what others do.
Answer: True
AACSB: Ethics
Bloom’s: Remember
44. Effective corporate values start with employees and develop throughout the organization
to include top management.
Answer: False
AACSB: Ethics
Bloom’s: Remember
45. In order to maintain a good reputation, it is good strategy to manage your business
ethically.
Answer: True
AACSB: Ethics
Bloom’s: Remember
46. A business should be managed ethically to keep existing customers and attract new
customers.
Answer: True
AACSB: Ethics
Bloom’s: Remember
4-15
Another random document with
no related content on Scribd:
A businesslike atmosphere filtered through the quiet of the Smokies.
Though wolves and panthers had largely disappeared by 1910, fur
buyers and community traders enjoyed a brisk exchange in mink,
raccoon, fox, and ’possum hides. Oak bark and chestnut wood,
called “tanbark” and “acid wood” because they were sources of
valuable tannic acid, brought $7 per cord when shipped to Asheville
or Knoxville. As the sawmills flourished, makeshift box houses of
vertical poplar and chestnut planks gave way to more substantial
weatherboarded homes of horizontal lengths and tight-fitting frames.
Slick, fancy, buggy-riding “drummers” peddled high-button shoes and
off-color stories. The spacious Wonderland Park Hotel and the
Appalachian Club at Elkmont, and a hunting lodge on Jake’s Creek
graced the once forbidding mountainsides.
Undergirding this development was a growing cash base: peaches
and chestnuts, pork and venison, wax and lard—translated into
money—brought flour and sugar, yarn and needles, tools and
ammunition. Yet in the midst of this new-found activity, many clung to
their old habits. Children still found playtime fun by sliding down hills
of pine needles and “riding” poplar saplings from treetop to treetop.
Hard-shell Baptist preachers, such as the hunter and “wilderness
saddle-bagger” known as “Preacher John” Stinnett, still devoted long
spare hours, and sometimes workdays as well, to reading The Book:
“I just toted my Bible in a tow sack at the handle of my bull tongue
and I studied it at the turn of the furrow and considered it through the
rows.”
But whatever the immediate considerations of the hour happened to
be, logging was the order of the day. From the Big Pigeon River, all
the way to the Little Tennessee, the second generation of timber-
cutters had moved into the Smokies on a grand scale.
The companies, with their manpower, their strategically placed
sawmills, and their sophisticated equipment, produced board feet of
lumber by the millions. The rest of the country, with its increased
demands for paper and residential construction, absorbed these
millions and cried for more. By 1909, when production attained its
peak in the Smokies and throughout the Appalachians, logging
techniques had reached such an advanced state that even remote
stands of spruce and hemlock could be worked with relative ease.
Demand continued unabated and even received a slight boost when
World War I broke out in 1914.
Pages 100-101: Sawmills, such as this one at

Lawson’s Sugar Cove, were quickly set up in one
location and just as quickly moved to another as soon
as the plot was cleared.
National Park Service
High volume covered high costs. The Little River Lumber Company,
perhaps the most elaborate logging operation in the Smokies, cut a
total of two billion board feet. Cherry, the most valuable of the
woods, with its exquisite grain and rich color, was also the scarcest.
Yellow-poplar, that tall, straight tree with a buoyancy that allowed it to
float high, turned out to be the most profitable of all saw timber.
Coniferous forests, the thick, dark regions of pungent spruce and
hemlock, yielded a portion of the company’s output.
Extraction of such proportions was not easy. Timber cruisers combed
the forests, estimating board feet and ax-marking suitable trees.
Three-man saw teams followed the cruisers. One, the “chipper,”
calculated the fall of the tree and cut a “lead” in the appropriate side.
Two sawyers then took over, straining back and forth upon their
crosscut saw until gravity and the immense weight of the tree
finished their job for them. The work was hard and hazardous.
Sometimes, if the lead were not cut properly, the trunk would fall
toward the men; sudden death or permanent injury might result from
the kickback of a doomed tree’s final crash, or from a moment’s
carelessness.
To remove the felled timber, larger companies laid railroad tracks far
up the creeks from their mills. At the eastern edge of the Smokies,
for instance, one such terminus grew into the village of Crestmont,
which boasted a hotel, two movie theaters, and a well-stocked
commissary. Such accommodations seemed a distant cry indeed
from the upper branches of Big Creek, gathering its waters along the
slopes of Mt. Sterling, Mt. Cammerer, and Mt. Guyot. Workers from
improbable distances—even countries “across the waters,” such as
Italy—teamed with the mountain people to push a standard gauge
track alongside the boulder-strewn streams. Bolted onto oaken ties
that were spaced far enough apart to discourage foot travel, the
black rails drove ahead, switched back to higher ground, crossed Big
Creek a dozen times before they reached the flat way station of
Walnut Bottoms.
Dominated by powerful, blunt-bodied locomotives, the railroads gave
rise to stories that were a flavorful blend of pathos and danger.
“Daddy” Bryson and a fireman named Forrester were killed on a
sharp curve along Jake’s Creek of Little River. Although Forrester
jumped clear when the brakes failed to hold, he was buried under an
avalanche of deadly, cascading logs. There were moments of
comedy as well as tragedy. In the same river basin, Colonel
Townsend asked engineer Noah Bunyan Whitehead one day when
he was going to stop putting up all that black smoke from his train.
Bun
answered
: “When
they start
making
white
coal.”
Railroads
could
reach
only so
far,
however.
The most
complex
phase of
the
logging
process
was
“skidding,
” or
bringing
the felled
logs from
inaccessi
ble
distances
to the
waiting
cars. As
the first
step, men
armed
with cant Little River Lumber Company
hooks or
short,
harpoon- Massive steam-powered skidders pulled
like logs in off the hills to a central pile. Then the
peavies, loaders took over and put the logs on trains,
simply which carried them to the mills.
rolled the
logs
down the mountainsides. Such continuous “ball-hooting,” as it was
called, gouged paths which rain and snow etched deeper into scars
of heavy erosion. Sometimes oxen and mules pulled, or “snaked,”
the timber through rough terrain to its flatcar destination. Horses
soon replaced the slower animals and proved especially adept at
“jayhooking,” or dragging logs down steep slopes by means of J-
hooks and grabs. When the logs gained speed and threatened to
overtake them, the men and nimble-footed horses simply stepped
onto a spur trail; the open link slipped off at the J-hook and the logs
slid on down the slope under their own momentum.
Even more ingenious skidding methods were devised. Splash-dams
of vertical hemlock boards created reservoirs on otherwise shallow,
narrow streams. The released reservoir, when combined with heavy
rains, could carry a large amount of timber far downstream. In the
mill pond, loggers with hobnailed boots kept the logs moving and
uncorked occasional jams. Another method devised to move virgin
timber down steep slopes was the trestled flume. The large, wooden
graded flumes provided a rapid but expensive mode of delivery. One
carried spruce off Clingmans Dome.
There were, finally, the loader and skidders. The railroad-mounted
steam loader was nicknamed the “Sarah Parker” after “a lady who
must have been real strong.” The skidder’s revolving drum pulled in
logs by spectacular overhead cables. Loaded with massive timber
lengths, these cables spanned valleys and retrieved logs from the
very mountaintops.
George Washington Shults and some neighbors
snake out large trunks with the help of six oxen.
Sometimes the lumber companies would hire such
local people to handle a specific part of the operation.
Today we call the process subcontracting.
Little River Lumber Company
Of the many kinds of trees logged in the Great
Smokies, the largest and most profitable were the
yellow-poplars, more commonly known as tulip trees.
A man could feel pretty small standing next to one of
them.
Little River Lumber Company
The great scale of the logging machinery was like
nothing the Smokies had seen before. Long trains
carried loads of huge tree trunks to sawmills after the
flat cars were loaded by railroad-mounted cranes.
To coordinate all of these operations efficiently required skill and
judgment. The lumber companies devised numerous approaches to
the problem of maximum production at lowest cost. They contracted
with individuals; Andy Huff, for example, continued to run a mill at
the mouth of Roaring Fork and paid his men a full 75 cents for a 16-
hour day. The corporations sometimes worked together; in one
maneuver, Little River helped Champion flume its spruce pulpwood
to the Little River railroad for shipment to Champion’s paper mill at
Canton, North Carolina. Haste and carelessness could lead to
shocking waste. When one company moved its operations during
World War I, 1.5 million board feet of newly cut timber was left to rot
at the head of Big Creek.
The ravages of logging led to fires. Although fires were sometimes
set on purpose to kill snakes and insects and to burn underbrush,
abnormal conditions invited abnormal mishaps. Parched soil no
longer held in place by a web of living roots, dry tops of trees piled
where they had been flung after trimming the logs, and flaming
sparks of locomotives or skidders: any combination of these caused
more than 20 disastrous fires in the Smokies during the 1920s. A
two-month series of fires devastated parts of Clingmans Dome,
Siler’s Bald, and Mt. Guyot. One holocaust on Forney Creek, ignited
by an engine spark, raced through the tops of 24-meter (80-foot)
hemlocks and surged over 5 kilometers (3 miles) in four hours. A site
of most intense destruction was in the Sawtooth range of the
Charlie’s Bunion area.
Despite the ravages of fire, erosion, and the voracious ax and saw,
all was not lost. Some two-thirds of the Great Smoky Mountains was
heavily logged or burned, but pockets of virgin timber remained in a
shrinking number of isolated spots and patches at the head of
Cataloochee, the head of Greenbrier, and much of Cosby and Deep
Creek. And as the 1920s passed into another decade, the vision of
saving what was left of this virgin forest, saving the land—saving the
homeland—grew in the lonely but insistent conscience of a small
number of concerned and convincing citizens.
Conducting a preliminary survey of the park’s
boundaries in 1931 are (from left) Superintendent J.
Ross Eakin, Arthur P. Miller, Charles E. Peterson, O. G.
Taylor, and John Needham.
George A. Grant
Birth of a Park
Logging dominated the life of the Great Smoky Mountains during the
early decades of the 20th century. But there was another side to that
life. Apart from the sawmills and the railroads and the general stores,
which were bustling harbingers of new ways a-coming, the higher
forests, the foot trails, and the moonshine stills remained as tokens
of old ways a-lingering. One person in particular came to know and
speak for this more primitive world.
Horace Kephart was born in 1862 in East Salem, Pennsylvania. His
Swiss ancestors were pioneers of the Pennsylvania frontier. During
his childhood, Kephart’s family moved to the Iowa prairie, where his
mother gave him a copy of the novel Robinson Crusoe by Daniel
Defoe. In the absence of playmates on the vast Midwest grassland,
young Kephart dreamed and invented his own games, fashioned his
own play swords and pistols out of wood and even built a cave out of
prairie sod and filled it with “booty” collected off the surrounding
countryside.
Horace Kephart never forgot his frontier beginnings. He saved his
copy of Robinson Crusoe and added others: The Wild Foods of
Great Britain, The Secrets of Polar Travel, Theodore Roosevelt’s The
Winning of the West. Camping and outdoor cooking, ballistics and
photography captured his attention and careful study.
Kephart polished his education with periods of learning and library
work at Boston University, Cornell, and Yale. In 1887 he married a
girl from Ithaca, New York, and began to raise a family. By 1890, he
was librarian of the well-known St. Louis Mercantile Library. In his
late thirties, Kephart grew into a quiet, intense loner, a shy and
reticent man with dark, piercing eyes. He remained an explorer at
heart, a pioneer, an individual secretly nurturing the hope of further
adventures.
Opportunity arrived in a strange disguise. Horace Kephart’s largely
unfulfilled visions of escape were combined with increasingly
prolonged periods of drinking. Experience with a tornado in the
streets of St. Louis affected his nerves. As he later recalled:
“... then came catastrophe; my health broke down. In the summer of
1904, finding that I must abandon professional work and city life, I
came to western North Carolina, looking for a big primitive forest
where I could build up strength anew and indulge my lifelong
fondness for hunting, fishing and exploring new ground.”
He chose the Great Smokies almost by accident. Using maps and a
compass while he rested at his father’s home in Dayton, Ohio, he
located the nearest wilderness and then determined the most remote
corner of that wilderness. After his recuperation he traveled to
Asheville, North Carolina, where he took a railroad line that wound
through a honeycomb of hills to the small way station of Dillsboro.
And from there, at the age of 42, he struck out, with a gun and a
fishing rod and three days’ rations, for the virgin mountainside forest.
After camping for a time on Dick’s Creek, his eventual wild
destination turned out to be a deserted log cabin on the Little Fork of
the Sugar Fork of Hazel Creek.
His nearest neighbors lived 3 kilometers (2 miles) away, in the
equally isolated settlement of Medlin. Medlin consisted of a post
office, a corn mill, two stores, four dwellings, and a nearby
schoolhouse that doubled as a church. The 42 households that
officially collected their mail at the Medlin Post Office inhabited an
area of 42 square kilometers (16 square miles). It was, as Kephart
describes it:
“... the forest primeval, where roamed some sparse herds of cattle,
razorback hogs and the wild beasts. Speckled trout were in all the
streams. Bears sometimes raided the fields and wildcats were a
common nuisance. Our settlement was a mere slash in the vast
woodland that encompassed it.”
But it was also, for Horace Kephart, a new and invigorating home.
He loved it. He thrived in it. At first he concentrated his senses on
the natural beauty around him, on the purple rhododendron, the
flame azalea, the
fringed orchis, the
crystal clear
streams. Yet as the
months passed, he
found that he could
not overlook the
people.
The mountain
people were as
solidly a part of the
Smokies as the
boulders
themselves. These
residents of branch
and cove, of Medlin
and Proctor and all
the other tiny
settlements tucked
high along the
slanting creekbeds
of the Great Smoky
Mountains, these
distinctive “back of
beyond” hillside
farmers and work-
worn wives and
wary moonshine
George Masa distillers lodged in
Kephart’s
Horace Kephart, librarian-turned- consciousness and
mountaineer, won the hearts of the imagination with
Smokies people with his quiet and rock-like strength
unassuming ways. He played a and endurance.
major role in the initial movement
for a national park. Initially silent and
suspicious of this
stranger in their midst, families gradually came to accept him. They
approved of his quietness and his even-handed ways, even
confiding in him with a simple eloquence. One foot-weary distiller,
after leading Kephart over kilometers of rugged terrain, concluded:
“Everywhere you go, it’s climb, scramble, clamber down, and climb
again. You cain’t go nowheres in this country without climbin’ both
ways.” The head of a large family embracing children who spilled
forth from every corner of the cabin confessed: “We’re so poor, if free
silver was shipped in by the carload we couldn’t pay the freight.”
Kephart came to respect and to wonder at these neighbors who
combined a lack of formal education with a fullness of informal
ability. Like him, many of their personal characters blended a
weakness for liquor with a strong sense of individual etiquette. He
heard, for example, the story of an overnight visitor who laid his
loaded gun under his pillow; when he awoke the next morning, the
pistol was where he had left it, but the cartridges stood in a row on a
nearby table.
He met one George Brooks of Medlin: farmer, teamster, storekeeper,
veterinarian, magistrate, dentist. While Brooks did own a set of
toothpullers and wielded them mercilessly, some individuals
practiced the painful art of tooth-jumping to achieve the same result.
Uncle Neddy Carter even tried to jump one of his own teeth; he cut
around the gum, wedged a nail in, and made ready to strike the nail
with a hammer, but he missed the nail and mashed his nose instead.
None of these fascinating tales escaped the attention of Horace
Kephart. As he regained his health, the sustained energy of his
probing mind also returned. Keeping a detailed journal of his
experiences, he drove himself as he had done in the past. He
developed almost an obsession to record all that he learned, to know
this place and people completely, to stop time for an interval and
capture this mountain way of life in his mind and memory. For three
years he lived by the side of Hazel Creek. Though he later moved
down to Bryson City during the winters, he spent most of his
summers 13 kilometers (8 miles) up Deep Creek at an old cabin that
marked the original Bryson Place.
Kephart distilled much of what he learned into a series of books. The
Book of Camping and Woodcraft appeared in 1906 as one of the first
detailed guidebooks to woodsmanship, first aid, and the art we now
call “backpacking,” all based on his personal experience and
knowledge. There is even a chapter on tanning pelts. But the most
authoritative book concerned the people themselves. Our Southern
Highlanders, published in 1913 and revised nine years later, faithfully
retraces Kephart’s life among the Appalachian mountain folk after he
“left the tame West and came into this wild East.” And paramount
among the wilds of the East was the alluring saga of the moonshiner.
Laura Thornborough
Wiley Oakley, his wife, and children gather on the
porch of their Scratch Britches home at Cherokee
Orchard with “Minnehaha.” Oakley always said, “I
have two women: one I talk to and one who talks to
me.”
Oakley was a park guide before there was a park. And
in that role he nearly always wore a red plaid shirt. He
developed friendships with Henry Ford and John D.
Rockefeller and became known as the “Will Rogers of
the Smokies.”
In Horace Kephart’s own eyes, his greatest education came from the
spirited breed of mountain man known as “blockade runners” or
simply “blockaders.” These descendants of hard-drinking Scotsmen
and Irishmen had always liked to “still” a little corn whisky to drink
and, on occasion, to sell. But as the 1920s opened into the era of
Prohibition, the mountain distiller of a now contraband product
reached his heyday. He found and began to supply an expanding,
and increasingly thirsty market.
Stealth became the keynote in this flourishing industry. Mountaineers
searched out laurel-strangled hollows and streams that seemed
remote even to their keen eyes. There they assembled the copper
stills into which they poured a fermented concoction of cornmeal,
rye, and yeast known as “sour mash” or “beer.” By twice heating the
beer and condensing its vapors through a water-cooled “worm” or
spiral tube, they could approximate the uncolored liquor enjoyed at
the finest New York parties. And by defending themselves with
shotguns rather than with words, they could continue their
approximations.
In this uniquely romantic business, colorful characters abounded on
both sides of the law. Horace Kephart wrote about a particular pair of
men who represented the two legal extremes: the famous
moonshiner Aquilla Rose, and the equally resilient revenuer from the
Internal Revenue Service, W. W. Thomason.
Aquilla, or “Quill,” Rose lived for 25 years at the head of sparsely
populated Eagle Creek. After killing a man in self-defense and hiding
out in Texas awhile, Rose returned to the Smokies with his wife and
settled so far up Eagle Creek that he crowded the Tennessee-North
Carolina state line. Quill made whisky by the barrel and seemed to
drink it the same way, although he was occasionally seen playing his
fiddle or sitting on the porch with his long beard flowing and his
Winchester resting across his lap. His eleventh Commandment, to
“never get ketched,” was faithfully observed, and Quill Rose
remained one of the few mountain blockaders to successfully
combine a peaceable existence at home with a dangerous livelihood
up the creek.
W.W. Thomason visited Horace Kephart at Bryson City in 1919.
Kephart accepted this “sturdy, dark-eyed stranger” as simply a tourist
interested in the moonshining art. While Thomason professed
innocence, his real purpose in the Smokies was to destroy stills
which settlers were operating on Cherokee lands to evade the local
law. He prepared for the job by taking three days to carve and paint
a lifelike rattlesnake onto a thick sourwood club. During the following
weeks, he would startle many a moonshiner by thrusting the stick
close and twisting it closer.
When Kephart led the “Snake-Stick Man” into whiskyed coves in the
Sugarlands or above the Cherokee reservation, he found himself
deputized and a participant in the ensuing encounters. More often
than not, shots rang out above the secluded thickets. In one of these
shootouts, Thomason’s hatband, solidly woven out of hundreds of
strands of horsehair, saved this fearless revenuer’s life.

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Chapter 04 - Demanding Ethical and Socially Responsible Behavior

Understanding Business 11th

TEST PLANNING TABLE FOR CHAPTER 4

LL:1 LL:2 LL:3

1. Explain why obeying 1,2,3,4,5,6,7, 8,9,10,11,12,13,14,15, 17,18,

2. Ask the three 19,20,21,22,23,24,25,26, 27,28,29,30,31,32,33~, 34,35,36,37,38,

3. Describe 39,40,41,42,43,44,45,46, 53,54,55,56,57,58, 59,

4. Distinguish between 60,61,62,63,64,65,66,67, 69,70,71,72,73,74, 75,76,77,78,79,

5. Define corporate 80,81,82,83,84,85,86,87, 109,110,111,112,113, 120,121,122,123,124,

6. Analyze the role of 126,127,128,129,130,131, 134,135,136,137,138,] 141,142,143~,144~,

Total number of test items: 271

True/false questions are in plain text.

True / False Questions

2. Ethical behavior requires more than following the law.

3. Legal behavior and ethical behavior are basically the same.

10. Legal behavior is a first step toward ethical behavior.

13. Ethical behavior focuses on treating others fairly.

17. People involved in business may be tempted to do something unethical in order to

21. A common form of cheating in schools today is plagiarizing online material.

22. Making ethical choices is always easy.

24. The question "Is it legal?" establishes ethical behavior.

Feedback: Humor at someone else's expense is an example of unfair treatment of others.

Feedback: Ethics-based managers do what is proper as well as what is profitable. Decisions

Pages 100-101: Sawmills, such as this one at

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