Ch.3 Jr. Ethics and Social Responsibility Test Bank Docx

Chapter 03: Ethics and Social Responsibility

True/False

1. Values are broad beliefs about what is appropriate behavior.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Terminal values are preferences regarding the means to desired ends.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Among the terminal values held important by managers are honesty, ambition, imagination, and self-discipline.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The utilitarian view considers ethical behavior to be that which delivers the greatest good to the greatest number of people.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Cultural view is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Procedural justice involves the degree to which policies and rules are fairly applied to all individuals.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Distributive justice is the degree to which others are treated with dignity and respect.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Commutative justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Ethical behavior is determined by its cultural context.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Cultural relativism suggests ethical standards apply universally across all cultures.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Ethical imperialism is an attempt to impose one’s ethical standards on other cultures.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Cultural relativism is a form of ethical imperialism.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered unethical.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Questions such as “Is it legal?,” “Is it right?,” “Whom does it affect?,” “Who benefits?,” and “Who gets hurt?” are referred to as spotlight questions.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Asking and answering spotlight questions when having to make an uncomfortable decision is a powerful way to double-check and test whether a decision is consistent with an individual’s personal ethical standards.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In Kohlberg’s preconventional level of moral development, moral thinking is largely limited to issues of punishment, obedience, and personal interest.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In Kohlberg’s conventional level of moral development, the individual is strongly principle-centered.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The ethics culture in an organization sets high standards and may even push people to behave more ethically than they otherwise would.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A common statement by a rationalizer is “It’s in everyone’s best interests.” This response involves the mistaken belief that because someone can be found to benefit from the behavior, the behavior is also in the individual’s or the organization’s best interests.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Government laws and regulations can describe and encourage ethical behavior, but they can’t guarantee ethical conduct.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. An amoral manager chooses to behave unethically.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. According to Archie Carroll, managers who are engaged in unethical practices remain mostly uninformed or undisciplined in considering the ethical aspects of their behavior.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Strong work group identities that encourage loyalty and self-censorship are barriers to whistle blowing.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Corporate social responsibility means taking personal responsibility to always respect and protect the interests of society at large.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The triple bottom line evaluates organizational performance on economic, social, and environmental criteria.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The three P’s of organizational performance are patience, politeness, and planning.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Competitors, labor unions, public-interest groups, and legal institutions are all shareholders of an organization.

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Demand legitimacy indicates the extent to which a stakeholder’s concerns need immediate attention.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. According to the classical view of CSR, the principal obligation of management should be to owners and shareholders.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Corporate governance involves making sure day-to-day performance is achieved ethically and in socially responsible ways.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

Multiple Choice

1. Ethics is defined as the _____ code of principles that sets standards of good or bad, or right or wrong, in one’s conduct.
2. social
3. legal
4. moral
5. cultural
6. religious

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following is a terminal value?
2. Honesty
3. Ambition
4. Imagination
5. Self-discipline
6. Happiness

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following is an instrumental value?
2. Honesty
3. Self-respect
4. Freedom
5. Family security
6. Happiness

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The _____ view of ethical understanding and reasoning abilities considers ethical behavior to be that which delivers the greatest good to the greatest number of people.
2. individualism
3. religious
4. justice
5. utilitarian
6. moral rights

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Samantha Eagles, the CEO of Gama Tech., shuts down offshore operations of the company during a period of economic recession. This resulted in over 20% cut in the workforce but was instrumental in keeping the company profitable and in saving the jobs of the remaining workers. Which ethical viewpoint would Susan most likely use to justify her decision?
2. Individualism
3. Religious
4. Justice
5. Utilitarian
6. Moral rights

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. The individualism view of ethical behavior is based on the belief that one’s primary commitment is to the long-term advancement of self-interests. Lying and cheating for immediate gain are not tolerated by this ethical view point because lying and cheating
2. are inherently harmful to a person’s psyche.
3. do not help a person over time.
4. are against the law.
5. are contrary to all religious beliefs.
6. cause an unfair distribution of resources.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. In business practice, the _____ view of ethical understanding and reasoning abilities may result in greed and a tendency to “push the law to its outer limits.”
2. individualism
3. religious
4. justice
5. utilitarian
6. moral rights

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. According to the individualism view of ethical behavior, society will be best off if:
2. individuals make decisions based on the greater common good.
3. everyone works toward the betterment of society.
4. everybody lives by the letter of the law.
5. everyone acts in a way that maximizes his or her own happiness.
6. everyone follows a universal moral code of behavior.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. In the _____ view, ethical behavior respects and protects fundamental rights.
2. individualism
3. justice
4. moral rights
5. utilitarian
6. humanitarian rights

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In the _____ view, ethical behavior treats people impartially and fairly.
2. individualism
3. justice
4. moral rights
5. utilitarian
6. humanitarian

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. _____ justice involves the degree to which policies and rules are fairly applied to all individuals.
2. Procedural
3. Economic
4. Distributive
5. Commutative
6. Interactional

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following addresses the fair allocation of outcomes, without any communal or gender biases?
2. Procedural justice
3. Fundamental justice
4. Distributive justice
5. Commutative justice
6. Interactional justice

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Interactional justice involves the:
2. degree to which policies and rules are fairly applied to all individuals.
3. degree to which outcomes are allocated fairly among people and without respect to individual characteristics.
4. degree to which people treat one another with dignity and respect.
5. fairness of exchanges or transactions.
6. honesty and integrity of business dealings.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Suave ZN, a franchisee outlet for Eco Motors, an electric car company, sells Chris Johnson, an older model car. Suave ZN sells the older model without informing Chris of the newer, better models released by Eco Motors in the same price band. According to which justice dimension would Suave ZN conduct be considered unethical?
2. Procedural
3. Economic
4. Distributive
5. Commutative
6. Interactional

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. What is the assumption made in the individualism view of ethical behavior?
2. It does not promote honesty or integrity in people.
3. People are self-regulating in the quest for long-term advantage for the self.
4. The outcome of an ethical decision does not affect the majority of the society.
5. Every person works in coordination with another to fulfil each other’s goals.
6. No individual can take advantage of the freedom allowed in this approach.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Which of the following is a drawback of the moral rights view of ethical behavior?
2. It relies on the assessment of future outcomes that are often difficult to predict and are tough to measure accurately.
3. It presumes that individuals are self-regulating; however, not everyone has the same capacity or desire to control their behaviors.
4. It is possible for a few individuals to take advantage of the freedom allowed by this perspective and disrupt the degree of trust that exists within a business community.
5. It does not ensure that the outcomes associated with protecting individual rights are beneficial to the majority of society.
6. It places an emphasis on fairness and equity, both of which cannot be ensured simultaneously.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. An expatriate of Country A argues that the practice of giving corporate gifts is acceptable in another country as long as it is consistent with local laws and customs. In this scenario, the Country A expatriate is guided by _____.
2. ethnocentrism
3. moral relativism
4. ethical imperialism
5. cultural relativism
6. moral absolutism

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. _____ is an attempt to impose one’s ethical standards on other cultures.
2. Polycentrism
3. Moral relativism
4. Ethical imperialism
5. Cultural relativism
6. Moral absolutism

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. According to Thomas Donaldson, the core values or “hyper-norms” that should transcend cultural boundaries focus on human dignity, basic rights, and _____.
2. cultural tolerance
3. social responsibility
4. acceptance
5. good citizenship
6. stewardship

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Managers with strong _____, ones that provide personal rules or strategies for value-based decision making, will act more consistently and confidently than those without.
2. religious affiliations
3. ethical frameworks
4. ethnocentric backgrounds
5. social-centered behavior
6. self-centered behavior

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following is a spotlight question when dealing with ethical dilemmas?
2. What sort of trouble will I get into because of my decision?
3. Are there any legal consequences to my decision?
4. Who will be affected by my decision?
5. How will I feel if my family finds out about my decision?
6. How will my career be affected by my decision?

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. When faced with an ethical dilemma, spotlight questions are used to test possible decisions for:
2. the risk of public disclosure.
3. potential harm to self.
4. the risk to job security.
5. potential harm to others.
6. possible legal implications.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In Kohlberg’s preconventional level of moral development, decisions:
2. are made according to internal principles.
3. are likely to be based on following social norms.
4. made follow rules to help society run smoothly.
5. are likely to be directed toward achieving personal gain.
6. are consistent with universal principles.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. At the postconventional level of moral development, an individual is strongly _____.
2. social-centered
3. peer-pressure oriented
4. self-centered
5. principle-centered
6. punishment-driven

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The Sarbanes-Oxley Act of 2002 makes it easier for corporate executives to be tried and sentenced to jail for _____.
2. sexual harassment
3. nepotism
4. financial misconduct
5. biodata fraud
6. misuse of organizational facilities

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. After doing something that might be considered unethical, a rationalizer says: “It’s not really illegal.” This expresses a mistaken belief that:
2. one’s behavior is acceptable, especially in ambiguous situations.
3. because someone can be found to benefit from the behavior, it is also in the individual’s or the organization’s best interests.
4. The behavior is justified and cannot be held wrong at any time.
5. the organization’s (on behalf of whom the individual acts) best interests stand above all others.
6. as long as people have acted in good faith, their behavior is ethical.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. When rationalizers tell themselves that “no one will ever know about it,” they believe that:
2. a questionable behavior is acceptable, especially in ambiguous situations.
3. because someone can be found to benefit from the behavior, it is also in the individual’s or the organization’s best interests.
4. a questionable behavior is really “safe” and will never be found out or made public.
5. the organization’s (on behalf of whom the individual acts questionably) best interests stand above all others.
6. as long as people have acted in good faith their behavior is ethical.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. When rationalizers proceed with a questionable action because of a mistaken belief that “the organization will stand behind me,” they believe that:
2. a questionable behavior is acceptable, especially in ambiguous situations.
3. because someone can be found to benefit from the behavior, it is also in the organization’s best interests.
4. a questionable behavior is really “safe” and will never be found out or made public.
5. the organization values loyalty over ethical decision-making.
6. as long as people have acted in good faith their behavior is ethical.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Fredrick works for Vision, a billboard advertising agency, which hires billboards from owners on behalf of clients. Fredrick routinely accepts pay-offs from billboard owners in exchange for referring their billboards to clients. This behavior could result in his dismissal from Vision, if found out. Which statement is Fredrick most probably utilizing to rationalize his actions?
2. “It’s not really illegal.”
3. “It’s in everyone’s best interests.”
4. “No one will ever know about it.”
5. “The organization will stand behind me.”
6. “I cannot be held responsible.”

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. According to Archie Carroll, an _____ manager is defined as a manager who chooses to behave unethically.
2. amoral
3. apathetic
4. immoral
5. individualist
6. ethnocentric

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. According to Archie Carroll, an _____ manager disregards the ethics of an act or a decision, but does so unintentionally or unknowingly.
2. amoral
3. apathetic
4. immoral
5. individualist
6. ethnocentric

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In Kohlberg’s terms, which of the following types of manager is at the postconventional level of moral development?
2. Unethical
3. Amoral
4. Ethnocentric
5. Moral
6. Immoral

Learning Objective: 3.3

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Archie Carroll suggests that most managers act _____.
2. ethically
3. amorally
4. immorally
5. morally
6. unscrupulously

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following is one way to instill ethical behavior in an organization?
2. Promoting rationalizations for unethical behavior
3. Promoting a strict legal code
4. Conducting ethics training
5. Conducting behavioral training
6. Conducting physical training

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A _____ is a formal statement of an organization’s values and ethical principles that set expectations for behavior.
2. code of ethics
3. mission statement
4. code of conduct
5. legal code
6. value statement

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following is a primary reason why almost half the workers in the United States fail to blow the whistle to report wrongdoings they observe at work?
2. A flexible and lenient chain of command
3. Weak work group identities that discourage loyalty and self-censorship
4. Presence of ethical leadership
5. The belief that no corrective action would be taken
6. The lack of any commitment to the organization

Learning Objective: 3.3

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Which of the following is true of a whistleblower?
2. A whistleblower is the first to act unethically in an organization.
3. Whistleblowers unintentionally disregard the ethics of an act or a decision.
4. Whistleblowers are members of management who specifically look out for unethical behavior among employees.
5. A whistleblower exposes the misdeeds of others in organizations.
6. Whistleblowers are members of law enforcement specifically trained to deal with financial misconduct.

Learning Objective: 3.3

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. _____ describes the obligation of an organization to act in ways that serve both its own interests and the interests of society at large.
2. Sustainability
3. Corporate accountability
4. Environmental stewardship
5. Corporate social responsibility
6. Corporate citizenship

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Stewardship in management means taking personal responsibility to always respect and protect the interests of _____ at large.
2. society
3. shareholders
4. management
5. the environment
6. the organization

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The _____ evaluates organizational performance on economic, social, and environmental criteria.
2. social denominator
3. corporate critical line
4. stewardship audit
5. global value audit
6. triple bottom line

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The 3 P’s of organizational performance are:
2. planning, process, and profit.
3. procurement, process, and profit.
4. procurement, processing, and planet.
5. place, people, and policy.
6. profit, people, and planet.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The triple bottom line for assessing organizational performance evaluates how well organizations are doing on:
2. economic, social, and environmental performance criteria.
3. industrial, market, and customer satisfaction criteria.
4. ecological, environmental, and financial criteria.
5. humanitarian, sociological, and research criteria.
6. geological, anthropological, and lean performance criteria.

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Stakeholder power:
2. indicates the extent to which stakeholders need immediate attention.
3. refers to the managers’ ability to maximize profits.
4. refers to the shareholders’ ability to influence managers.
5. refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
6. indicates the validity and legitimacy of a stakeholder’s interests in the organization.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Demand legitimacy:
2. indicates the extent to which stakeholders need immediate attention.
3. refers to the managers’ ability to maximize profits.
4. refers to the shareholders’ ability to influence managers.
5. refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
6. indicates the validity and legitimacy of a stakeholder’s interest in the organization.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Issue urgency:
2. indicates the extent to which the stakeholder’s concerns need immediate attention.
3. refers to the managers’ ability to maximize profits.
4. refers to the shareholders’ ability to maximize profits.
5. refer to the capacity of the stakeholder to positively or negatively affect the stakes of the organization.
6. indicates the validity and legitimacy of a stakeholder’s interest in the organization.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. According to the classical view of CSR, the principal obligation of management should be to _____.
2. suppliers
3. owners
4. consumers
5. future generations
6. the state or local government

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. According to proponents of the classical view of CSR, what drives businesses to make things like healthier foods and energy-efficient products?
2. The government
3. Profitability
4. Owners and shareholders
5. A sense of indebtedness to society
6. Pressure from civil society

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. The classical view of CSR is that businesses should focus on _____.
2. the environment
3. owners and shareholders
4. profits
5. labor unions
6. future generations

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The _____ view of CSR is that business should focus on broader welfare of the community and not just profits.
2. shared value
3. classical
4. post-modern
5. socioeconomic
6. ethnocentric

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following statements is in agreement with the socioeconomic view of corporate social responsibility?
2. Financial improvement can be achieved by being socially responsible.
3. The primary responsibility of business is to maximize business profits.
4. By acting responsibly, businesses avoid government regulation.
5. Businesses must be concerned with the broader social concerns and not just with corporate profits.
6. Society is served best when businesses are allowed to maximize their profits.

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. The _____ view of CSR approaches business decisions with the understanding that economic and social progress are interconnected.
2. shared value
3. classical
4. post-modern
5. socioeconomic
6. ethnocentric

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A company following the virtuous circle of CSR will most likely:
2. become an add-on initiative—funding activities like philanthropy, environmental preservation, and community projects.
3. pursue a narrow stakeholder perspective focused on maximizing short-term profits.
4. pursue its own interests in competitive settings and make products that are profitable.
5. put society and the environment ahead of shareholders and stakeholders.
6. integrate socially responsible behavior into everyday business goals and activities for an improved financial performance.

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Which of the following is most likely to result in a virtuous circle?
2. Unicorn Educational Services makes anonymous donations to charities every year.
3. Holding Hands, a not-for-profit organization, provides free food and shelter to orphans.
4. Medix Technology funds frequent AIDS awareness programs held by a not-for-profit organization in the surrounding neighborhood.
5. Bubble Plastics incorporates environmentally friendly manufacturing techniques that also result in cost savings.
6. Fryt Inc. uses environmentally hazardous chemicals to reduce the cost of manufacturing its products and to maximize its profits.

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. A(n) _____ strategy tries to avoid and resist pressures for social responsibility.
2. minimalist
3. obstructionist
4. defensive
5. accommodative
6. proactive

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In the _____ strategy of corporate social responsibility, social demands lying outside the organization’s perceived self-interests are resisted.
2. minimalist
3. obstructionist
4. defensive
5. accommodative
6. proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Strathum Tech Inc., a manufacturer of refrigerators, used ozone depleting CFCs in its products. It downplayed the significance of ozone depletion for years, claiming that CFCs do not cause any significant harm to the ozone layer. Which of the following strategies of corporate social responsibility did the company employ?
2. Minimalist
3. Obstructionist
4. Defensive
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. Which strategy of corporate social responsibility meets only economic responsibilities?
2. Resistive
3. Obstructionist
4. Defensive
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A(n) _____ strategy does the minimum legal requirements to display social responsibility.
2. leadership
3. obstructionist
4. defensive
5. accommodative
6. proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Piggybank is a chit fund company that offers small loans to individuals. Legal guidelines regarding small loans require the terms and conditions of payback be accessible to customers. The company complies with this rule by putting up a poster with terms and conditions in a back room of their office. Only customers explicitly wishing to see the terms and conditions are taken to the back room. What strategy of corporate social responsibility does the company follow?
2. Leadership
3. Obstructionist
4. Defensive
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. A(n) _____ strategy accepts social responsibility and tries to satisfy society’s basic ethical expectations.
2. resistive
3. obstructionist
4. defensive
5. accommodative
6. proactive

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which strategy of corporate social responsibility meets economic, legal, and ethical responsibilities but not discretionary responsibilities?
2. Resistive
3. Obstructionist
4. Diversification
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A(n) _____ strategy actively pursues social responsibility by taking discretionary actions to make things better in the future.
2. resistive
3. obstructionist
4. defensive
5. accommodative
6. proactive

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which corporate social responsibility strategy meets economic, legal, ethical, and discretionary responsibilities?
2. Resistive
3. Obstructionist
4. Defensive
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Shine Clean, a laundry detergent manufacturer, employs unskilled locals and trains them. It manufactures its detergent using organic products. It uses biodegradable packaging that is sourced locally, and disposes its wastes using environmentally friendly methods. It follows the advice of its research team and takes discretionary actions in the hopes of making things better in the future. Shine Clean is pursuing the _____ strategy of CSR.
2. resistive
3. obstructionist
4. defensive
5. accommodative
6. proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. Which of the following CSR strategies addresses the greatest number of responsibilities?
2. Resistive
3. Obstructionist
4. Defensive
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Businesses are required by law to have boards of directors that are elected by _____ to represent their interests.
2. customers
3. government officials
4. shareholders
5. union leaders
6. all employees

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. _____ is the active oversight of top management by a board of directors.
2. Ethical administration
3. Executive leadership
4. Corporate governance
5. Final authority
6. Command leadership

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. _____ is making sure day-to-day performance is achieved ethically and in socially responsible manner.
2. Corporate governance
3. Social leadership
4. Ethics self-governance
5. Stockholder control
6. Command leadership

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Which of the following is an example of an ethical dilemma?
2. Martha, who had filed in her personal details that she was an American, is hired as a receptionist despite some of her co-workers apprehension about her racial identity.
3. Wanda, an employee at a real estate firm, files a sexual harassment case against her manger despite his repeated apologies.
4. Steward, an engineer, gives his office laptop to his daughter as a birthday gift.
5. Vince, a government employee, knows that he should not accept bribes, but is tempted to take the money to save a sick kid.
6. Clara fires half of her employees so as to decrease the cost of inputs of her company.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. Bertrand Louise, an important stakeholder at Carmichaels & Sons. Inc., requests for a detailed report of the profit statement of the company when rumors reach him that their balance sheet for the past year was fabricated. Bertrand’s request is immediately granted as some of the higher officials had the same suspicion as that of Bertrand. Which of the following best explains the quick actions taken in this case?
2. Issue urgency
3. Corporate social responsibility
4. Demand legitimacy
5. Self-centered behavior
6. Organizational setting

Learning Objective: 3.4

Difficulty: Hard

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. Glendelwalt is a finance corporation that believes in working for the betterment of the present as well as the future generations. They promote the principle of stewardship and sustainability. Which of the following actions should it implement so as to promote their ideals?
2. Hire more workers
3. Remodel and renovate their building
4. Start a ‘save water and energy’ program
5. Increase the salary of the workers
6. Improve their customer service.

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. Castle & Co. focuses on using recycled paper as packing material. Though the firm incurs a higher cost of inputs due to this strategy, it continues to use the recycled papers. Thus it contributes to the betterment of the larger community. When a social responsibility audit is taken, on what side will the company’s performance rate?
2. Compliance
3. Negative
4. Underrated
5. Conviction
6. Moderate

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

1. Karlanium Inc. is a bottle manufacturing company. It is required by law to process its waste byproduct before depositing it in the dumping grounds. Its social responsibility is limited to fulfilling this legal requirement. To which of the following categories does Karlanium belong?
2. Resistive
3. Obstructionist
4. Defensive
5. Accommodative
6. Proactive

Learning Objective: 3.4

Difficulty: Moderate

AACSB: Application of knowledge

Bloom’s Taxonomy: Application

Essay

1. What are instrumental and terminal values? Give examples of each.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Explain the utilitarian view of ethical behavior.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Write a note on the four dimensions of justice issues in organizations. Illustrate your answer with examples.

Learning Objective: 3.1

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. Write a note on Kohlberg’s levels of moral development.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. What is ethics intensity? Discuss the conditions that raise the ethics intensity of a situation.

Learning Objective: 3.2

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

1. What are codes of ethics? What do they address?

Learning Objective: 3.3

Difficulty: Moderate

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Comprehension

Text Entry

1. Ethical behavior is “good” or “right” in the context of a(n) _____ moral code.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. ____ values are preferences about desired end states.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. In the ____ view, ethical behavior advances long-term self-interests.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. ______ justice is concerned that policies and rules are fairly applied.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Commutative justice is the degree to which an exchange or a transaction is ____ to all parties.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Cultural ____ suggests there is no one right way to behave; ethical behavior is determined by its cultural context.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Moral absolutism suggests ethical standards apply _____ across all cultures.

Learning Objective: 3.1

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered ____.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. An ethical ____ is a personal rule or strategy for making ethical decisions.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Ethics ___ indicates the degree to which an issue or a situation is recognized to pose important ethical challenges.

Learning Objective: 3.2

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. An immoral manager chooses to behave ______.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A(n) ____ manager fails to consider the ethics of her or his behavior.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Ethics ____ seeks to help people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behavior.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A code of ethics is a(n) ____ statement of values and ethical standards.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. A(n) ____ exposes the misdeeds of others in organizations.

Learning Objective: 3.3

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. ______ are the persons, groups, and other organizations that are directly affected by the behavior of the organization and that hold a stake in its performance.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. ____ means acting in ways that support a high quality of life for present and future generations.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The classical view of CSR is that business should focus on ____.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. The ____ circle occurs when socially responsible behavior improves financial performance, which leads to more responsible behavior in the future.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge

1. Corporate ____ is the oversight of top management by a board of directors.

Learning Objective: 3.4

Difficulty: Easy

AACSB: Ethical understanding and reasoning

Bloom’s Taxonomy: Knowledge