Chapter 3 Exam Questions Managing Ethics and Diversity

Essentials of Contemporary Management, 8e (Jones)

Chapter 3 Managing Ethics and Diversity

1) Customers are stakeholders of an organization, but managers are not.

Difficulty: 1 Easy

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

2) Under the utilitarian rule, an ethical decision is one that best maintains and protects the fundamental rights and privileges of the people affected by it.

Difficulty: 1 Easy

Topic: Utilitarian Approach

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

3) From a moral rights perspective, managers should compare alternative courses of action on the basis of how each will affect the rights of each stakeholder group.

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

4) The practical rule ensures that managers are taking into account the interests of all stakeholders.

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

5) The ethics of the top managers of an organization shape that organization's code of ethics.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

6) The term "diversity" refers to differences in gender and age, but not to those in sexual orientation.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

7) According to the federal Glass Ceiling Commission Report, African Americans have the hardest time being promoted.

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

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8) The increasing racial and ethnic diversity of the workforce and the population as a whole underscores the importance of effectively managing diversity.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

9) Managers can promote the effective management of diversity through the performance of interpersonal and decisional roles, but not through informational roles.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

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10) Although a slight bias toward a particular group can seem unimportant, it can lead to very large differences between groups over time.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

11) At a job interview, the interviewer asks Andrea to describe a time when she faced an ethical dilemma. An ethical dilemma is a situation in which a person has to decide if he/she should act in a way that

A) neglects his/her own self-interest to favor another's self-interest.

B) is the right thing to do, even though doing so might go against his/her own self-interest.

C) does not go against the self-interest of anyone involved.

D) may help another person and favor his/her own self-interest at the same time.

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

12) Bruce is a manager seeking new employees. As he looks through applicants' resumes, he decides he wants to hire only women for these positions because he believes that women are much less trouble and will do as he tells them. But then he decides that it would be wrong to exclude people he hasn't even met based on his notions of how men and women behave. Bruce's thoughts and feelings that tell him what is right or wrong are an example of

A) moral scruples.

B) ethical dilemmas.

C) quid pro quo.

D) moral imagination.

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

13) Li Jun, a manager, has a problem at work. He asks his mentor for advice, and she suggests that he think about what he believes is morally the right thing to do. Essentially, Li Jun's mentor is telling him to pay attention to his

A) ethics.

B) opinions.

C) laws.

D) norms.

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

14) Which of the following statements about ethics and law is true?

A) Both ethics and law are fixed principles.

B) Ethics are fixed, but law is flexible.

C) Ethics are flexible, but law is fixed.

D) Neither ethics nor laws are fixed principles.

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

15) It was considered ethical and legal to acquire and possess slaves in ancient Rome and Greece. Today, however, slavery is considered both unethical and illegal. This implies that

A) ethics and laws can be fixed or flexible principles depending on the situation.

B) ethics are always fixed but law is always flexible.

C) neither laws nor ethics are fixed principles.

D) ethics are always flexible, but law is always fixed.

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

16) The people and groups that supply a company with its productive resources, and thus have a claim on and a stake in the company, are known as

A) community members.

B) individual rights holders.

C) claimants.

D) stakeholders.

Difficulty: 1 Easy

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

17) Stockholders are interested in the way that a company operates because they

A) supply the company's raw materials.

B) want to do what is morally right.

C) want to maximize the return on their investment.

D) need to minimize the company's reputation.

Difficulty: 1 Easy

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

18) The stakeholder group with the most responsibility for deciding the goals of the organization is the

A) stockholders.

B) customers.

C) managers.

D) working-level employees.

Difficulty: 2 Medium

Topic: Internal Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

19) Golden Lumber Inc. sees its profits drop during a recession. To benefit stockholders and to make the company more attractive to potential new stockholders, Golden decides to reduce costs. Which stakeholder group is probably most adversely affected by this cost cutting?

A) board of directors

B) customers

C) managers

D) employees

Difficulty: 2 Medium

Topic: Internal Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

20) Important issues concerning product quality and safety specifications are governed by the contracts a company signs with its

A) government inspectors.

B) senior supervisors.

C) human resources division.

D) suppliers and distributors.

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

21) The most critical stakeholder group is often the

A) stockholders.

B) managers.

C) employees.

D) customers.

Difficulty: 1 Easy

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

22) Senior management of a restaurant chain decides to cut the workforce by 15 percent. Which of these groups is most likely to respond positively to this news?

A) stockholders

B) managers

C) employees

D) customers

Difficulty: 3 Hard

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

23) To help managers and employees make ethical decisions and behave in ways that benefit their stakeholders, they can use four ethical rules or principles to analyze the effects of their business decisions on stakeholders, the ________ rules.

A) utilitarian, moral choice, justice, and practical

B) utilitarian, moral rights, justice, and existentialist

C) fairness, moral choice, justice, and practical

D) utilitarian, moral rights, justice, and practical

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

24) The utilitarian rule states that an ethical decision

A) will affect those who consider utility in their business decisions.

B) produces the greatest good for the greatest number of people.

C) protects the most important stakeholders first.

D) is one that can be made quickly and with a minimum amount of tension.

Difficulty: 1 Easy

Topic: Utilitarian Approach

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

25) According to which of the following rules is an ethical decision one that best maintains people's fundamental privileges?

A) religious equality

B) moral rights

C) financial

D) fairness-based

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

26) Which of these sayings is a reflection of the moral rights rule?

A) Act first and ask questions later.

B) Do the greatest good for the greatest number of people.

C) Do unto others as you would have them do unto you.

D) Do nothing that would embarrass the company if news of it became public.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

27) According to which of the following rules is an ethical decision one that distributes rewards and harms in a fair way?

A) justice rule

B) moral rights rule

C) utilitarian rule

D) practical rule

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

28) One managerial implication of the justice model is that managers should base their decisions on

A) whatever stockholders want because stockholders own the company.

B) what provides the maximum benefit to the most stakeholders.

C) whatever promotes a fair distribution of outcomes to stakeholders.

D) a consensus of local, national, and international opinion.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

29) Employees who are similar in their level of skill, performance, or responsibility should receive similar pay; allocation of outcomes should not be based on differences such as gender, race, or religion. This is an example of which rule of ethical decision making?

A) justice rule

B) moral rights rule

C) utilitarian rule

D) practical rule

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

30) When a manager has no hesitation about communicating to people outside the company regarding a decision made because the typical person in a society would think it is acceptable, this logic is explained by the ________ rule.

A) justice

B) moral rights

C) utilitarian

D) practical

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

31) The practical rule states that an ethical decision

A) considers people, property, and environment equally.

B) produces the greatest good for the most stockholders.

C) punishes the dishonest and praises the honest.

D) is one that can be communicated with no reluctance.

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

32) Danika, a board member for a medium-sized corporation, faces an ethical dilemma. She is unsure whether the board should fire senior employees who have violated rules or merely discipline those employees but keep them on staff to avoid potentially harmful publicity. Danika asks herself, "Would my family members and friends approve of this decision, and am I willing to see the decision communicated to all people and groups affected?" Asking this question is part of the ________ rule.

A) justice

B) moral rights

C) utilitarian

D) practical

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

33) A paper manufacturer is forced to make staff cutbacks because of declining profits. It decides to cut back each employee's hours and pay by one-half day per week rather than laying off two people. Senior managers believe that by allowing all their employees to keep their jobs, they are producing the greatest good for the greatest number of people. Which rule for ethical decision making does this example show?

A) justice

B) utilitarian

C) moral rights

D) practical

Difficulty: 2 Medium

Topic: Utilitarian Approach; Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

34) Ms. Chen manages a clothing store. Her boss, the district manager, suggests that she fire competent employees who are old or unattractive because "they aren't good ambassadors for our brand." Ms. Chen tells her boss, "I'm sorry, but I can't do as you ask. If anyone found out that we did this, it would damage the company's reputation. The average shopper wouldn't want to do business with us." Which ethical rule is Ms. Chen applying?

A) justice

B) practical

C) moral rights

D) utilitarian

Difficulty: 3 Hard

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

35) Why is it so important that managers, and people in general, should act ethically and temper their pursuit of self-interest by considering the effects of their actions on others?

A) because giving excessive importance to oneself with no consideration of societal interests leads to disaster for each individual and for the whole society because scarce resources are destroyed

B) because ethical issues are seldom clear-cut, since the rights, self-interests, goals, and incentives of different stakeholders often conflict

C) because a manager has no reluctance about communicating an ethical decision to people outside the company since the typical person in a society would think it is acceptable

D) because if all companies make the right choices, all stakeholders will benefit in the long run

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

36) Patricia is a supervisor at an Internet startup. One of her employees tells her, "It's every man for himself here. Everybody here cuts corners and breaks rules, so I have to do that, too. So don't tell me that I need to follow regulations, because I can't if I want to get ahead." Which of these theories refutes this employee's belief?

A) personal accountability

B) moral pragmatism

C) the right to equal resources

D) the tragedy of the commons

Difficulty: 3 Hard

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

37) A person's confidence and faith in another person's goodwill is called

A) trust.

B) esteem.

C) ethics.

D) moral scruple.

Difficulty: 1 Easy

Topic: Trust

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

38) Which of the following is a likely result of loss of trust?

A) Withholding information becomes the norm to keep the stakeholders' interests safe.

B) Distrust decreases the time spent negotiating and bargaining between stakeholders.

C) More motivated stakeholders contribute to a higher standard of living and well-being.

D) An increase in company performance takes place as people try to win back trust.

Difficulty: 1 Easy

Topic: Trust

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

39) Formal standards and rules, based on beliefs about right or wrong, that managers can use to help themselves make appropriate decisions with regard to the interests of their stakeholders are

A) honor codes.

B) codes of ethics.

C) moral codes.

D) existentialist guidelines.

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

40) Which of the following emanate from a particular community's unwritten attitudes, values, and norms that influence how people interact with each other?

A) societal ethics

B) professional ethics

C) individual ethics

D) organizational ethics

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

41) Dontay is the social media manager at the corporate headquarters of a large hotel chain. In a meeting, another manager suggests that Dontay should tell his employees to create fake reviews of competing hotels. "Tell them to make up fake names and say that the other hotels have bedbugs and that the staff is rude," the other manager says. "We need to improve occupancy or the stock price will fall." Why is this suggestion a bad idea?

A) It violates societal ethics.

B) It may violate international law.

C) Dontay's coworkers dislike the idea.

D) The plan wouldn't affect the stock price.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

42) An example of how societal ethics vary among societies might be how they view

A) murdering a boss.

B) bombing a competitor's factory.

C) missing a meeting.

D) bribing a public official.

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

43) Standards that govern how members of a particular community deal with each other in matters involving issues such as fairness, justice, poverty, and the rights of the individual are ________ ethics.

A) fundamental

B) professional

C) individual

D) societal

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

44) People in a particular country may automatically behave ethically because they have internalized values and norms that specify how they should behave in certain situations. This is an example of which code of ethics?

A) professional ethics

B) individual ethics

C) societal ethics

D) organizational ethics

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

45) Standards that govern how members of an organization, whether they are managers or workers, make decisions when the way in which they should behave is not clear-cut are ________ ethics.

A) professional

B) individual

C) societal

D) organizational

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

46) Which of the following are the result of differences in personalities, values, and attitudes?

A) societal ethics

B) occupational ethics

C) individual ethics

D) organizational ethics

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

47) Family, friends, personality, and experience are sources of ________ ethics.

A) societal

B) occupational

C) individual

D) organizational

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

48) Which of the following emanate from laws, customs, and practices, and from unwritten attitudes, values, and norms that influence how people interact with each other?

A) professional ethics

B) chain ethics

C) business ethics

D) societal ethics

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

49) The news media often reports when a CEO is accused of making a sexist remark or being a poor steward of the company's money. However, those same news media rarely report when an entry-level employee faces the same accusations. The actions of top managers such as CEOs are scrutinized so closely for ethical lapses because

A) business schools teach CEOs how to act unethically.

B) union rules protect workers from ethics-related charges.

C) their actions represent the values of their organizations.

D) their high salaries let them afford the potentially hefty fines.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

50) The CEO of your company announces that she wants to create a new senior management position. The new employee would be in charge of communicating ethical standards to all employees, designing systems to monitor employees' conformity to those standards, and teaching managers and nonmanagerial employees at all levels of the organization how to respond to ethical dilemmas appropriately. According to what you have read, what is the proper name for someone with these job duties?

A) comptroller

B) regulatory agency

C) whistleblower

D) ethics ombudsman

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

51) The ethics ombudsman's authority in monitoring ethical practices and procedures applies within which of these?

A) the branch office

B) operations departments

C) the administrative circle

D) the entire organization

Difficulty: 1 Easy

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

52) Dissimilarities among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, education, experience, physical appearance, capabilities/disabilities, and any other characteristic that is used to distinguish between people defines

A) flexibility.

B) solidarity.

C) universality.

D) diversity.

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

53) Which of the following is a reason that diversity is such a pressing concern and an issue both in the popular press and for managers and organizations?

A) Diverse individuals are hired despite not having valid permits to work.

B) Diverse people must receive equal opportunities and be treated fairly and justly.

C) Recruitment of diverse people is a major human resources expense for companies.

D) Diverse individuals get preferential treatment in the workplace.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

54) Bradley is the director of talent management at a laboratory. At a staff meeting, when he suggests allocating more funds for diversity training, one of his peers disagrees. "We've already had sensitivity training about racism in the workplace, and we participated in a job fair that encourages women to pursue careers in science and technology," the woman says. "And we haven't had much employee turnover this year, so there's no need to budget for additional diversity training next year." What is the best way for Bradley to respond to these comments?

A) I agree. Diversity training varies little from year to year.

B) I agree. Racism and sexism are the two most important aspects of workplace diversity.

C) I disagree. Other forms of diversity exist, and it's important that staffers understand them.

D) I disagree. There can never be enough money devoted to diversity training.

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics; Diversity

Accessibility: Keyboard Navigation

55) Which of the following refers to the invisible barriers that prevent minorities and women from being promoted to top corporate positions?

A) gender limit

B) flight grounder

C) invisible cliff

D) glass ceiling

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

56) Which of the following Equal Employment Opportunity (EEO) laws prohibits discrimination in employment decisions on the basis of race, religion, sex, color, or national origin and covers a wide range of employment decisions, including hiring, firing, pay, promotion, and working conditions?

A) Age Discrimination in Employment Act

B) Title VII of the 1964 Civil Rights Act

C) Equal Pay Act

D) Americans with Disabilities Act

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

57) Nils is a human resources director at a small company. He mentions to his CEO that one of the company's employees has requested paternity leave. The CEO asks, "Do we really have to provide that?" Which of these laws should Nils cite in his answer?

A) Equal Pay Act

B) Age Discrimination in Employment Act

C) Pregnancy Discrimination Act

D) Family and Medical Leave Act

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

58) Which of the following employment opportunity laws prohibits discrimination and allows for the awarding of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination?

A) Equal Pay Act

B) Age Discrimination in Employment Act

C) Pregnancy Discrimination Act

D) Civil Rights Act

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

59) Lisa, one of the employees at a small factory, says that she should be paid as much as her coworker Jonathan. Lisa and Jonathan have the same job title, but Jonathan has been with the company six months longer. Lisa is white, and Jonathan is African American. Both of them are in their late 40s. Under which federal law might Lisa bring a claim of discrimination?

A) Equal Pay Act

B) Age Discrimination in Employment Act

C) Pregnancy Discrimination Act

D) Civil Rights Act

Difficulty: 3 Hard

Topic: Equal Employment Opportunity (EEO)

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

60) "A grouping of people based on some shared characteristic such as national origin, language, or culture" refers to

A) diversity.

B) minority.

C) ethnicity.

D) disability.

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

61) The U.S. Census treats ethnicity in terms of whether a person

A) speaks a foreign language.

B) is Chinese, Korean, or Japanese.

C) has a skin color other than white.

D) is Hispanic, Latino, or of Spanish origin or not.

Difficulty: 1 Easy

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

62) Amethyst Corporation's employees practice a variety of religions. The CEO of Amethyst wants suggestions from managers about how to be flexible when interacting with employees of different religions. Which of these would be a reasonable suggestion for a manager to make?

A) "Give employees special bonuses during religious festivals."

B) "Allow employees to hold religious services in the office."

C) "Conduct mandatory company-wide prayer breakfasts."

D) "Allow employees to have time off for religious observances."

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

63) Carla's job includes leading seminars about corporate compliance with the Americans with Disabilities Act. Which of the following statements about the ADA would be accurate for Carla to make?

A) "A large number of employees abuse the ADA by seeking unnecessary accommodations for disabilities that do not exist."

B) "The ADA requires that employers make any possible accommodations to enable people with disabilities to effectively perform their jobs."

C) "Accommodations enabling students who may not be able to see to perform up to their capabilities are partially covered under the ADA."

D) "The passage of the ADA does not appear to have increased employment rates significantly for those with disabilities."

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

64) As treatments for human immunodeficiency virus (HIV) and acquired immune deficiency syndrome (AIDS) improve, more people with those conditions are well enough to continue working. Which of the following protects employees with AIDS from being discriminated against in the workplace?

A) Age Discrimination in Employment Act of 1967

B) Family and Medical Leave Act of 1993

C) Civil Rights Act of 1991

D) Americans with Disabilities Act of 1990

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

65) The combination of social class and income-related factors is referred to as ________ background.

A) sociological

B) financial

C) family

D) socioeconomic

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Ethics

Accessibility: Keyboard Navigation

66) Managers who are sensitive and responsive to the needs and concerns of workers who may be less fortunate in terms of income and financial resources are showing an awareness of

A) ethnic solidarity.

B) class prejudice.

C) socioeconomic diversity.

D) financial well-being.

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

67) Which of these statements about managing diversity is true?

A) Managers can improve the level of diversity in a workplace, but because the workforce is becoming ever more diverse over time, managers can't really derail diversity.

B) Managers are at a higher level than the employees they supervise, so it isn't realistic to expect managers to be role models when it comes to encouraging diversity.

C) Even when a manager is aware of some diversity-related issues, unconscious bias can creep into that manager's beliefs and behaviors.

D) Diversity issues have become easier to manage in most workplaces now that the issue of diversity has gained more attention.

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Evaluate

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

68) Vanessa, who owns and runs a small business, treats all her employees, customers, and suppliers fairly, regardless of their age, gender, or ethnicity. Which of the following roles is Vanessa performing?

A) tycoon

B) liaison

C) leader

D) figurehead

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

69) Sam has been a manager for six months. At his performance review, his manager suggests that Sam do more to manage diversity in the disseminator role. Which of these approaches should Sam suggest to improve his effectiveness in this role?

A) Develop new ways to manage diversity.

B) Take quick actions to manage conflict arising from diversity.

C) Evaluate how fairly employees are being treated.

D) Communicate to employees about diversity policies.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

70) A manager who is effectively managing diversity in the liaison role would

A) convey that the effective management of diversity is a valued goal and objective.

B) serve as a role model for treating others fairly.

C) enable diverse individuals to coordinate their efforts and cooperate with one another.

D) support diversity initiatives in the wider community.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics; Teamwork

Accessibility: Keyboard Navigation

71) Cedric, the human resources manager at Albuquerque Metals, commits 15 percent of his department's budget to develop a new program for bringing minority and female interns into the company. Which of the following roles is Cedric performing?

A) resource allocator

B) entrepreneur

C) monitor

D) figurehead

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Apply

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

72) A top manager giving a speech to employees about the importance of diversity is acting as a(n)

A) figurehead.

B) leader.

C) liaison.

D) entrepreneur.

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Apply

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

73) Greg is a middle manager at an accounting firm. When one of his employees emails him a series of racist jokes, Greg tells the employee to stop. Greg also goes to human resources and encourages the staffers there to send out a general reminder that racist, sexist, or otherwise inappropriate jokes are inappropriate for the workplace. Taking quick action to correct inequalities and curtailing discriminatory behavior is the duty of a manager in a ________ role.

A) leader

B) disturbance handler

C) negotiator

D) liaison

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics; Teamwork

Accessibility: Keyboard Navigation

74) Felicia, who is vice president of talent management for a large manufacturer, works with suppliers and labor unions to support and encourage the effective management of diversity. What role is Felicia performing?

A) figurehead

B) disturbance handler

C) negotiator

D) business partner

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Apply

AACSB: Ethics; Reflective Thinking

Accessibility: Keyboard Navigation

75) Which of the following managerial roles supports diversity initiatives in the wider community and speaks to diverse groups to interest them in career opportunities?

A) figurehead

B) leader

C) spokesperson

D) liaison

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

76) Since becoming a senior vice president at her firm, Malaika has checked in informally with workers who reported concerns related to diversity and unfair treatment and represented the company at job fairs that attract diverse candidates. She has also worked with contractor firms to improve their diversity management of subcontractors. According to the text, which managerial roles has Malaika played?

A) monitor, spokesperson, negotiator

B) resource allocator, spokesperson, entrepreneur

C) disturbance handler, resource locator, ally

D) dissembler, monitor, negotiator

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Evaluate

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

77) Which of the following is true of women and minorities when they start work in an organization staffed mostly by white men?

A) They have advantages due to special preferences.

B) They are likely to quit or be fired within a month.

C) They are at a slight disadvantage.

D) They quickly take over most leadership roles.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-05 Understand why the effective management of diversity is both an ethical and a business imperative.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

78) Which of these statements accurately reflects the results of research on diversity in the workplace?

A) Over time at a company, disparity "mountains" become "molehills" as a more diverse group of individuals win promotions to managerial roles.

B) Managers have an ethical and financial duty to maintain disparities in treatment due to irrelevant distinctions such as race and diversity.

C) As most people would expect, minor disparities related to race and gender make little difference in the long run as to the number of female and male managers at a company.

D) Over time, a small but favorable bias to one gender, race, or ethnicity can have significant impacts on who gets promoted to management.

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-05 Understand why the effective management of diversity is both an ethical and a business imperative.

Bloom's: Analyze

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

79) Seth, a senior manager, attends a board meeting in which the CEO urges each manager to improve profitability within his or her division. Which of the following reflects an effective management of diversity that Seth could use to help improve profitability?

A) retaining only low-paid employees

B) hiring more Asian women

C) retaining valued employees

D) giving preference to Hispanics

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-05 Understand why the effective management of diversity is both an ethical and a business imperative.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics; Teamwork

Accessibility: Keyboard Navigation

80) Evan's boss tells him, "Diversity training is nice, but I just don't think we can afford it this year." Based on what you have read about diversity in the workforce, which would be the best response for Evan to make?

A) "If employees believe that someone discriminated against them, they will most likely look for work elsewhere, so the problem will take care of itself."

B) "If the upcoming merger goes through, we won't be responsible for diversity problems that happened before the merger. Maybe we don't need training now."

C) "Diversity-related lawsuits can cost more than $100 million to settle and attract negative attention in the media. I don't think we should take that risk."

D) "Let's find the handouts from the last diversity training and repurpose them into memos to remind our employees of the goals in an economical way."

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-05 Understand why the effective management of diversity is both an ethical and a business imperative.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics; Teamwork

Accessibility: Keyboard Navigation

81) When a manager asks a subordinate for sexual favors in return for a promotion, what type of sexual harassment has occurred?

A) hostile work environment

B) quid pro quo

C) accommodative approach

D) whistleblower approach

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Apply

AACSB: Ethics

Accessibility: Keyboard Navigation

82) Betty works in a software firm as a programming officer. During her appraisal, Ben, the floor manager, asks for sexual favors from Betty in return for her promotion and pay raise. Which form of sexual harassment has occurred?

A) hostile work environment

B) accommodative approach

C) quid pro quo

D) whistleblower approach

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

83) Bernadette reports to her manager that a coworker in another group insisted that she have sex with him or he would ruin her chances of promotion. Bernadette slept with him, and now she is very upset and is having difficulty concentrating at work. Does she have a valid claim of quid pro quo sexual harassment?

A) yes, because the coworker threatened her with negative consequences if she did not sleep with him

B) yes, because he was directly responsible for making the decision to promote Bernadette

C) no, because Bernadette went along with the sexual harassment, making her claim invalid

D) no, because sexual harassment takes place between a supervisor and a subordinate

Difficulty: 3 Hard

Topic: Ethical Behavior

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Evaluate

AACSB: Ethics; Teamwork

Accessibility: Keyboard Navigation

84) Alexandra, a manager, is in a work environment that she finds personally offensive because of her gender. She wants to talk with the director of human resources. Which of the following phrases should she use to explain to the director what is taking place?

A) "a Sarbanes-Oxley violation"

B) "a crack in the glass ceiling"

C) "quid pro quo harassment"

D) "a hostile work environment"

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Remember

AACSB: Ethics; Teamwork

Accessibility: Keyboard Navigation

85) A female subordinate is offended by posters in her supervisor's office that she believes are degrading to women. She avoids going into the office, even when she has a work-related question. Her supervisor has exhibited

A) immediate corrective action.

B) a hostile work environment.

C) unfair retaliation.

D) an isolated incident.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

86) A male manager stands, smiling, as a worker from another unit makes a remark to his female subordinate about her appearance that she considers to be sexually demeaning. This male manager has exhibited

A) a hostile work environment.

B) the glass ceiling.

C) the similar-to-me effect.

D) the salience effect.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

87) If two female managers exchange a lewd sexual joke in the presence of a male manager, these female managers have exhibited

A) nothing illegal or unethical.

B) a hostile work environment.

C) quid pro quo sexual harassment.

D) a salience effect.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics; Teamwork

Accessibility: Keyboard Navigation

88) Which of the following is a part of developing and clearly communicating a sexual harassment policy endorsed by top management?

A) Ensure that alleged harassers are represented by company lawyers.

B) Provide only a few examples of types of harassment behavior because it can lead to poor morale.

C) Develop a procedure for employees to use to report instances of harassment.

D) Provide little discussion of the disciplinary actions due to possible lawsuits.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

89) The recommended steps to eliminate sexual harassment include

A) clearly communicate harassment policy and establish a complaint procedure.

B) ensure that alleged victims are isolated from the workforce until the legal case is resolved.

C) immediately fire alleged harassers regardless of the nature of the offense.

D) establish and strictly enforce a company-wide dress code.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

90) Ramon is a manager at a small company. One of his colleagues tells him that some employees are suing the company, alleging a hostile work environment. The president of the company allegedly taunted them and made remarks about their race. "Can the employees really do that?" Ramon's colleague asks him. Which of these responses would be accurate for Ramon to give?

A) "It sounds like it's possible for them to sue for a hostile work environment and for race discrimination."

B) "They can probably sue, but not on the grounds of a hostile work environment. That applies to sexual harassment."

C) "Under federal law, they can't sue unless they quit or are fired, so I don't think we need to worry about a lawsuit right now."

D) "Our company is too small for 'hostile work environment' statutes to apply, but we should still try to solve this problem."

Difficulty: 3 Hard

Topic: Code of Ethics

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics; Reflective Thinking; Teamwork

Accessibility: Keyboard Navigation

91) Describe the relationships between ethics, law, and business.

Difficulty: 2 Medium

Topic: Ethical Dilemma

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

92) Define stakeholders, and list at least four types of stakeholders. Then give an example of tensions between two groups of stakeholders. This example can be from your own experience or something you learned about from the news media.

Stakeholders are people and groups that supply a company with its productive resources and so have a claim on and stake in the company. Stakeholders include employees, customers, suppliers, shareholders, and the local community. For example, I live near a bar and restaurant that is open late, and my neighbors and I have insisted that the owners reduce noise pollution by turning down the volume of the live music and posting signs asking customers to be quiet when they leave. This is an example of tensions between two groups of stakeholders: customers and the local community.

Difficulty: 3 Hard

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics; Teamwork

Accessibility: Keyboard Navigation

93) Why are managers a vital stakeholder group? Based on your own experiences as a manager, employee, or student, do you believe that managers focus enough on their responsibilities to other stakeholders? If you wish, provide examples from your own experience.

Managers are a vital stakeholder group because they are responsible for using a company's financial capital and human resources to increase its performance and thus its stock price. Managers are the stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.

Based on what I have experienced in the workplace, managers sometimes focus on their responsibilities to customers and stockholders and downplay the importance of their responsibilities to employees and the local community. Hiring an ethics officer or ethics ombudsman, as described in this chapter, could help restore the balance between the needs and desires of various stakeholders.

Difficulty: 3 Hard

Topic: Internal Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

94) Explain why customers are considered to be the most critical stakeholder group. In your opinion, is this fair? Provide reasons for your answer.

Customers are often regarded as the most critical stakeholder group because if a company cannot attract them to buy its products, it cannot stay in business. Thus managers and employees must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones. They do so by selling customers quality products at a fair price and providing good after-sales service. Many laws protect customers from companies that attempt to provide dangerous or shoddy products. Laws allow customers to sue a company whose product causes them injury or harm. Other laws force companies to clearly disclose the interest rates they charge on purchases—an important hidden cost that customers frequently do not factor into their purchase decisions. Every year thousands of companies are prosecuted for breaking these laws, so "buyer beware" is an important rule customers must follow when buying goods and services.

I believe it makes sense to consider customers the most critical stakeholder group. After all, if customers don't consume products or services from a business, that business will soon cease to exist. Because customers are the basis for surviving as a company, and because in many cases they're the company's reason for existing, they are the most important of all stakeholder groups.

Difficulty: 3 Hard

Topic: External Stakeholders

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Evaluate

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

95) Describe the four ethical rules or principles and discuss their managerial implications. Then provide an example of one of the rules or principles. Your example can be from your own experience, or it can be something that you have heard or read about.

To help themselves and employees make ethical decisions and behave in ways that benefit their stakeholders, managers can use four ethical rules or principles to analyze the effects of their business decisions on stakeholders: the utilitarian, moral rights, justice, and practical rules.

• The utilitarian rule proposes that decisions should favor the greatest good for the greatest number of people. Under this model, a manager should contrast alternative courses of action, comparing the benefits and costs they bring for various stakeholder groups.
• The moral rights rule proposes that decisions should protect the basic rights and privileges of people affected by the decision. In this model, the manager would compare alternatives based on their effects on stakeholders' rights.
• The justice rule focuses on decisions that distribute outcomes fairly. Under this philosophy, managers should compare courses of action based on the fairness of distribution of outcomes.
• The practical rule suggests that an ethical decision is one that a manager has no hesitation or reluctance about communicating to people outside the company, because the typical person in society would think it is acceptable.

My example comes from when I worked at a factory. When productivity went up, management decided to award a small bonus to each employee. All employees got the same amount added to their checks. The managers wanted to follow the justice rule, and all of us were pretty happy with the results.

Difficulty: 3 Hard

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

96) Describe the questions that a manager should ask under the practical rule to decide if a business decision is acceptable on ethical grounds.

• Does my decision fall within the accepted values or standards that typically apply in business activity today?
• Am I willing to see the decision communicated to all people and groups affected by it—for example, by having it reported in newspapers or on television?
• Would the people with whom I have a significant personal relationship, such as family members, friends, or even managers in other organizations, approve of the decision?

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

97) Why should managers should behave ethically? Summarize the reasons and give an example that you have experienced, witnessed, or heard about.

Relentless pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way. Without ethical behavior, trust cannot exist; without trust, efficiency and effectiveness of inter-business relationships will be reduced. When my manager told me and my coworkers that we had to report to work half an hour early even though the company wasn't going to pay us for that time, it eroded my trust in her. My coworkers were angry about the unpaid time, and that anger showed up in on-the-job attitudes, negatively affecting our relationships with suppliers.

Difficulty: 3 Hard

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

98) Identify and describe the sources of an organization's code of ethics.

• Societal ethics are standards of how members of a society should treat one another in matters involving issues such as fairness, justice, and individual rights. They derive from a society's laws, customs, practices, norms, and values.
• Professional ethics govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities. They derive from professional training and socialization.
• Individual ethics are personal standards and values that determine how individuals should act when self-interest is at stake. They derive from family, peers, upbringing, and experience.

Difficulty: 2 Medium

Topic: Code of Ethics

Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational cultures.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

99) Describe the major provisions of Title VII of the Civil Rights Act of 1964, the Equal Pay Act, and the Americans with Disabilities Act.

• Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment decisions on the basis of race, religion, sex, color, or national origin. Decisions include hiring, firing, pay, promotion, and working conditions.
• The Equal Pay Act requires men and women to be paid equally if they are performing equal work.
• The Americans with Disabilities Act prohibits discrimination against disabled individuals in employment decisions and requires employers to make accommodations for disabled workers to enable them to perform their jobs. Refer: Table 3.1

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Remember

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

100) Chris has been promoted to a senior management position. The employees who now work for him follow a variety of religions, celebrate different holidays, and need accommodation for some religious practices. Discuss how Chris should accommodate religious diversity.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

101) Does the Americans with Disabilities Act (ADA) cover AIDS? Why are employers sometimes reluctant to hire people who have this illness? What should employers do about this?

AIDS awareness training can help people overcome their fears and provide managers with a tool to prevent illegal discrimination against HIV-infected employees. Such training focuses on educating employees about HIV and AIDS, dispelling myths, communicating relevant organizational policies, and emphasizing the rights of HIV-positive employees to privacy and an environment that allows them to be productive.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

102) List and give examples of any three managerial roles that could be exercised to effectively manage diversity.

Figurehead A manager conveys that the effective management of diversity is a valued goal and objective.

Leader A manager serves as a role model and institutes policies and procedures to ensure that diverse members are treated fairly.

Liaison A manager enables diverse individuals to coordinate their efforts and cooperate with one another.

Monitor A manager evaluates the extent to which diverse employees are being treated fairly.

Disseminator A manager informs employees about diversity policies and initiatives and the intolerance of discrimination.

Spokesperson A manager supports diversity initiatives in the wider community and speaks to diverse groups to interest them in career opportunities.

Entrepreneur A manager commits resources to develop new ways to effectively manage diversity and eliminate biases and discrimination.

Disturbance handler A manager takes quick action to correct inequalities and curtail discriminatory behavior in an organization.

Resource allocator A manager distributes resources to support and encourage the effective management of diversity.

Negotiator A manager works with organizations (e.g., suppliers) and groups (e.g., labor unions) to support and encourage the effective management of diversity. Refer: Table 3.2

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.

Bloom's: Apply

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

103) It has been said that managing diversity makes good business sense. Do you agree or disagree with this statement? Defend your argument with either pros or cons.

The diversity of organizational members can be a source of competitive advantage that helps an organization provide customers with better goods and services. Managing diversity makes business sense because customers of businesses are becoming more diverse, and, as learned earlier, an organization must be responsive to its customers. A company with a diverse workforce can understand the needs of these varied customers more effectively.

Also, a more diverse workforce, used well, can yield more creative decisions when the diverse employees contribute different ideas to the problem-solving process. Third, effective management of diversity can reduce employee turnover by creating a better work climate for all employees.

Another way in which the effective management of diversity can positively affect profitability is that it increases retention of valued employees. This decreases the costs of hiring replacements for those who quit. It helps ensure that all employees are highly motivated.

Finally, effective management of diversity reduces the probability of discrimination lawsuits.

Difficulty: 3 Hard

Topic: Diversity

Learning Objective: 03-05 Understand why the effective management of diversity is both an ethical and a business imperative.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

Accessibility: Keyboard Navigation

104) Write a brief note on the two basic forms of sexual harassment.

Quid pro quo sexual harassment occurs when a harasser asks or forces an employee to perform sexual favors to keep a job, receive a promotion, receive a raise, obtain some other work-related opportunity, or avoid receiving negative consequences such as demotion or dismissal.

Hostile work environment sexual harassment is more subtle. It occurs when organizational members face an intimidating, hostile, or offensive work environment because of their sex. Lewd jokes, sexually oriented comments or innuendos, vulgar language, displays of pornography, displays or distribution of sexually oriented objects, and sexually oriented remarks about one's physical appearance are examples of hostile work environment sexual harassment.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

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105) There are a number of actions that managers can take to reduce and eliminate sexual harassment on the job. Discuss two of the four common steps that managers can take in an attempt to deal with this type of problem on the job.

• Develop and clearly communicate a sexual harassment policy endorsed by top management. This policy should include prohibitions against both quid pro quo and hostile work environment sexual harassment. It should contain (a) examples of types of behavior that are unacceptable, (b) a procedure for employees to use to report instances of harassment, (c) a discussion of the disciplinary actions that will be taken when harassment has taken place, and (d) a commitment to educate and train organizational members about sexual harassment.
• Use a fair complaint procedure to investigate charges of sexual harassment. Such a procedure should (a) be managed by a neutral third party, (b) ensure that complaints are dealt with promptly and thoroughly, (c) protect and fairly treat victims, and (d) ensure that alleged harassers are fairly treated.
• Take corrective actions as soon as possible. These actions can vary depending on the severity of the harassment. When harassment is extensive, prolonged over a period of time, of a quid pro quo nature, or severely objectionable in some other manner, corrective action may include firing the harasser.
• Provide sexual harassment education and training to all organizational members, including managers. The majority of Fortune 500 firms currently provide this education and training for their employees. Managers stress to employees that they do not have to tolerate sexual harassment or get involved in situations in which harassment is likely to occur.

Difficulty: 2 Medium

Topic: Diversity

Learning Objective: 03-06 Understand the two major forms of sexual harassment and how they can be eliminated.

Bloom's: Understand

AACSB: Analytical Thinking; Ethics

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