Chapter.10 Exam Questions Ethics And Social Responsibility

Chapter 10- Ethics and Social Responsibility

True/False

1. When someone says that firms should behave ethically because doing so is good for business, a moral argument has been made

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. Small businesses have obligations towards their various stakeholders, including employees, customers, suppliers, and the community within which the firm operates

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. Asking an employee to spy on co-workers is an ethical order

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. According to surveys, if employees report misconduct in their companies retaliation is the most common consequence

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. Sin industries involve products or services that are considered illegal but moral in society.

Response: See section 10.2.1

Level: Medium

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. Strip clubs and marijuana stores are examples of businesses that are excluded for ethical reasons from SBA’s mandate

Response: See section 10.2.1

Level: Medium

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. Companies that may be both morally questionable and speculative, such as casinos, are excluded for ethical reasons from SBA’s mandate

Response: See section 10.2.1

Level: Easy

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. According to the notion of ethical universalism, ethical standards change with time and place

Response: See section 10.2.2

Level: Easy

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. Nihilists believe all business is inherently moral.

Response: See section 10.3

Level: Easy

Learning Objective: Outline the debate about teaching of ethics.

1. Apologists believe that ethics can and should be emphasized throughout one’s life, in college and outside

Response: See section 10.3

Level: Easy

Learning Objective: Outline the debate about teaching of ethics.

1. For purists, the term “business ethics” is an oxymoron

Response: See section 10.3

Level: Easy

Learning Objective: Outline the debate about teaching of ethics.

1. Not everyone believes that business ethics can be or should be taught in college

Response: See section 10.3

Level: Easy

Learning Objective: Outline the debate about teaching of ethics.

1. Fibbing is one of the Greenwashing sins

Response: See section 10.4

Level: Medium

Learning Objective: Describe the value of corporate social responsibility

1. The Stakeholder model of capitalism suggests that the primary purpose of a business is to maximize profits for its owners

Response: See section 10.4

Level: Medium

Learning Objective: Describe the value of corporate social responsibility

1. The Stakeholder model of capitalism is also known as the Friedman Doctrine

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. The Social performance of a firm includes taking care of employees, community involvement, and going above and beyond its obligations to satisfy customers

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. Small business owners cannot impact CSR because they have a loose control on the inflows and outflows of goods and services

Response: See section 10.4

Level: Medium

Learning Objective: Describe the value of corporate social responsibility

1. B-Corp certification legally obligates companies to consider profits, people, and planet in their decision-making

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. Companies that place a strong emphasis on CSR activities are able to earn a superior reputation for quality of products

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. Utilitarianism is concerned with the greatest overall good for society

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

1. Procedural justice refers to the fairness and justice of the decision's result

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks

1. Distributive justice refers to the fairness of a process in decision making

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks

1. Retributive justice focuses on punishing a decision-maker with a punishment that is consistent with and proportionate to the harm inflicted on others

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

1. Compensatory justice relates to appropriately compensating people for a past harm or injustice resulting from an intentional decision

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

1. The mother test approach to ethical decision making urges the decision-maker to put themselves in the place of the person who would be affected by their decision to view the decision through their eyes

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

Multiple Choice Questions

1. When someone says that firms should behave ethically because it is the right thing to do, a(n) ________ has been made.
2. Moral argument
3. Distributive justice
4. Procedural justice
5. Business argument

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. _______refers to the application of ethical principles and standards to the decisions and actions of firms
2. Corporate social responsibility
3. Business Ethics
4. Business Laws
5. Business service

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. Which of the following is generally NOT a consequence of reporting misconduct in the workplace?
2. Termination
3. Retaliation
4. Demotion
5. Promotion

Response: See section 10.1

Level: Easy

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. Which of the following is the appropriate ethical behavior?
2. Treating white and minority differently
3. Asking an employee to spy on co-workers
4. Asking someone for sexual favors in order to advance that person’s career
5. None of the above

Response: See section 10.1

Level: Medium

Learning Objective: Recognize the main reasons for businesses to behave ethically

1. The______ states that firms should use their resources and engage in activities designed to increase their profits so long as they abide by the law of the land
2. Friedman doctrine
3. Distributive justice
4. Sleep test
5. Role-reversal test

Response: See section 10.2.1

Level: Easy

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. According to the text, what are the two distinct dimensions of ethical decisions?
2. Moral and distributive justice
3. Justice and Procedure
4. Legal and Justice
5. Moral and Legal

Response: See section 10.2.1

Level: Easy

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. Which of the following business violates both legal and moral standards?
2. Child pornography
3. An adult night club
4. Bars in college towns
5. Gentleman’s clubs

Response: See section 10.2.1

Level: Medium

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. Which of the following types of small businesses are excluded for ethical reasons from Small Business Administration (SBA) mandate?
2. Businesses viewed as speculative
3. Enterprises considered morally questionable by some
4. Companies that may be both morally questionable and speculative
5. All of the above

Response: See section 10.2.1

Level: Medium

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. According to the notion of __________, an action may be ethically acceptable in one time and place, but not in another
2. Ethical universalism
3. Ethical relativism
4. Interpersonal ethics
5. Intrapersonal ethics

Response: See section 10.2.2

Level: Medium

Learning Objective: Distinguish between legal and moral standards for ethical behavior

1. ______ believe that people set their ethical compass based on the messages they receive

from parents and mass media

1. Apologists
2. Naivists
3. Nihilists
4. Realists

Response: See section 10.3

Level: Easy

Learning Objective: Outline the debate about teaching of ethics.

1. Which of the following models emphasize that firms should balance the interests of all stakeholders, including owners, employees, customers, suppliers, communities, and society at large?
2. Shareholder model
3. Stakeholder model
4. Friedman doctrine.
5. Impulsive model

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility.

1. The triple bottom-line is a management strategy that focuses on
2. Profits and loss
3. Cost and profits
4. Profit, cost, and loss
5. Profit, people, and planet

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. According to the _______theory, all businesses have an agreement with the society as a whole to promote societal welfare because the society has allowed it to exist
2. Implied social contract
3. Ethical egoism
4. Utilitarianism
5. Religion

Response: See section 10.4

Level: Medium

Learning Objective: Describe the value of corporate social responsibility

1. Which of the following is an incorrect way to show that a business is engaged in CSR :
2. Obtaining a B-Corp certification
3. Practicing greenwashing
4. Focusing on triple bottom-line approach
5. Allocating resources for community projects

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. ______involves the use of deception to persuade others that a firm’s products and goals are environmentally safe and thus more planet-friendly than they actually are
2. Bluewashing
3. B-Corp.
4. Utilitarianism
5. Greenwashing

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. Which of the following represents Greenwashing?
2. Brands of facial tissues claim various percentages of post-consumer recycled content without providing evidence
3. Truly Organic gives product samples to marketers that labels featuring false certifications
4. Many products falsely claim to be EnergyStar certified
5. All of the above

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. What is the advantage for companies to engage in CSR activities?
2. Greater buyer patronage
3. Weak employee relations
4. Inferior company reputation
5. Higher operations costs

Response: See section 10.4

Level: Easy

Learning Objective: Describe the value of corporate social responsibility

1. According to Utilitarianism, a decision is considered ethical if it results in
2. Profits for the decision maker
3. Short-term benefits for businesses
4. Greatest good for the greatest number of people
5. Long-term interest for the decision maker

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks

1. Which component of justice approach to decision making refers to the fairness of the process in decision making?
2. Distributive justice
3. Procedural justice
4. Intrapersonal justice
5. Interpersonal justice

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks

1. According to the text, what are the four types of justice?
2. Interpersonal, distributive, compensatory, and retributive
3. Interpersonal, distributive, procedural, and intrapersonal
4. Normative, intrapersonal, compensatory, retributive
5. Distributive, procedural, compensatory, retributive

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks

1. Katie was promoted due to her personal friendship with George, the manager, rather than a fair review of the qualified employees. Jessica, Katie’s coworker, feels that it was injustice and unfair because there was not a formal review. Jessica is referring to ________
2. Procedural justice
3. Distributive justice
4. Compensatory justice
5. Retributive justice

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks

1. ________test focuses on how one would feel if the decision they made was discussed on the front page of a newspaper
2. Children
3. Mother
4. Newspaper
5. Mirror

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

1. The _______calls for treating others as you would want your family to be treated
2. Golden rule
3. Extended golden rule
4. Mother test
5. Role-reversal

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

1. The _______calls for treating others as you would want to be treated yourself
2. Golden rule
3. Extended golden rule
4. Mother test
5. Role-reversal

Response: See section 10.5

Level: Easy

Learning Objective: Identify various ethical frameworks

1. You refuse to pay a subcontractor for a work they did for you. Your parents ask you if you would be okay tomorrow if someone did the same to you. Your parents are using the ________test to guide you
2. Golden rule
3. Extended golden rule
4. Mother test
5. Role-reversal

Response: See section 10.5

Level: Medium

Learning Objective: Identify various ethical frameworks