Important Managerial Issues – Chapter 3 Test Bank | 11th Ed

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Fundamentals of Management, 11e (Robbins)

Chapter 3 Important Managerial Issues

1) When an organization engages in ________, it uses managerial and technical employee skills and abilities from other countries.

A) talent globalization

B) marketplace globalization

C) financial globalization

D) resource globalization

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

2) Khalid, a buyer for a U.S. firm, is shopping the globe for components for use in his firm's products. He finds the best price at a Canadian company. When he buys them, he will be ________.

A) franchising

B) offshoring

C) onshoring

D) nearshoring

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Application

3) Gerjuan's employer, a major Egyptian manufacturer, would like to expand its operations into Europe but does not have cash on hand for so large a project. Gerjuan has been asked to identify lenders with low interest rates, and his employer does not care where they are located. In carrying out his assignment, Gerjuan is engaged in ________.

A) financial globalization

B) talent globalization

C) creating a strategic alliance

D) marketplace globalization

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Application

4) When a U.S. ship yard purchases raw materials from locations around the world, for example steel from China, this is called ________.

A) licensing

B) a joint venture

C) global sourcing

D) a global alliance

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

5) A global village can be best characterized as a business climate in which there are ________.

A) rigid international boundaries

B) no international boundaries

C) rigid rules and standards

D) no rules or standards

Diff: 1

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

6) Which one of the following is NOT a key characteristic of a global organization?

A) exchanges goods and services with consumers in other countries

B) employs high-level technical employees and managerial talent from other countries

C) uses resources from other countries

D) has a home country in which all decisions are made and into which all profits flow

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

7) A multinational corporation (MNC) ________.

A) is any organization that maintains operations in more than one country

B) is defined as a company that has its home base in the United States and various operations overseas

C) includes any company that exports goods overseas

D) is defined as any company that has no home base

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

8) A global corporation ________.

A) centralizes management in a single home country

B) decentralizes management so that each local country's operation is managed locally

C) decentralizes management so there is no single home location

D) has two main management locations located on different sides of the globe

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

9) ________ is a good example of a multidomestic corporation.

A) Sony Corporation

B) John Deere

C) Ford Motor Company

D) The New York Yankees

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

10) Which one of the following best characterizes a transnational corporation?

A) a single central home-country management

B) an organization in which multiple operations function with a large degree of autonomy

C) a loose alliance of totally separate, wholly independent companies

D) a company that eliminates geographical boundaries

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

11) Which one of the following would NOT be called an "American company"?

A) a multidomestic with a home base in Memphis, Tennessee

B) a global corporation that originated in Dallas, Texas and has operations in 12 countries

C) a transnational that originated in New York City with operations in six countries

D) a global corporation that began in Japan but has since relocated and now has its sole headquarters in Chicago

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

12) Which choice constitutes the typical first step for an organization that is "going global"?

A) outsourcing

B) franchising

C) licensing

D) strategic alliance

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

13) Franchising is used widely by ________.

A) universities

B) accounting firms

C) restaurant chains

D) electric power companies

Diff: 2

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

14) Which one of the following is usually found in the final stage of an organization's global evolution?

A) exporting products to other countries

B) outsourcing jobs to foreign countries

C) establishing strategic alliances with partners

D) licensing products in foreign countries

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

15) A fully global organization might set up a ________ with a foreign company to create a new, independent company that produces a specific product.

A) foreign subsidiary

B) franchise

C) licensing agreement

D) joint venture

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

16) Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk.

A) franchise

B) joint venture

C) strategic alliance

D) foreign subsidiary

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

17) Joint ventures are a type of ________.

A) license

B) franchise

C) foreign subsidiary

D) strategic alliance

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

18) A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson. What kind of venture is this plant likely to be?

A) a franchise

B) a licensed plant

C) a foreign subsidiary

D) a joint venture

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

Business Expansion Plan (Scenario)

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

19) If Shana's company decides to open operations in France but maintain company management in the United States, it would be considered a ________.

A) transnational corporation

B) global corporation

C) multidomestic corporation

D) joint venture

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

20) If Shana's company decides to open a new operation in Germany that has local managers and is run locally but still exists under the umbrella of the home company, it would be considered a ________.

A) national corporation

B) borderless organization

C) trade alliance

D) multidomestic corporation

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

21) If Shana's company reorganizes based on industry groups with no designated home country, the entire organization would be considered a ________.

A) transnational organization

B) strategic alliance

C) multidomestic corporation

D) global corporation

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

22) Shana is considering forming a partnership with a Dutch corporation that will create an entirely new company called Half Moon. What kind of enterprise will Half Moon be?

A) a multidomestic corporation

B) a foreign subsidiary

C) a joint venture

D) a domestic subsidiary

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

23) Shana's company "went global" several years ago. Which one of the following was likely to have been the first step it took in going global?

A) outsourcing

B) importing

C) exporting

D) licensing

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

24) Shana's company hopes to become a fully global corporation in the coming years. Which of the following would best indicate that the company is fully "global"?

A) exporting and importing

B) licensing

C) setting up a foreign subsidiary

D) franchising

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

Software Entrepreneurial Venture (Scenario)

Tomas and Juan have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Their company, which includes TJ Soft stores, is looking for opportunities in the future that include international operations.

25) A foreign company wants to be able to copy and manufacture TJ Soft programs and sell them in its stores. What would be an appropriate approach for them to use?

A) licensing

B) franchising

C) renting

D) appropriating

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

26) A firm in South America wants to open a TJ Store in a shopping mall. What is the best approach for this firm?

A) strategic alliance

B) licensing agreement

C) franchise

D) foreign subsidiary

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

27) A game company in Thailand wants TJ Soft to join it and work together to create a new game that bears the brand name of both companies. What would be an appropriate approach for this venture?

A) global strategic alliance

B) licensing agreement

C) joint venture

D) franchise

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Analytical

28) When Toyota and General Motors formed NUMMI several years ago, they created a joint venture.

Diff: 1

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

29) The most common way for a company to "go global" is to nearshore its raw materials.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

30) When Coca-Cola conducts a global search to fill an open vice president position, it is engaging in talent globalization.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

31) The most risky method of globalizing is to create a foreign subsidiary.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

32) When an organization uses financial resources outside its own country, it is then insulated from a global economic downturn.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

33) The boundaries of the global village are drawn by the major economic powers—the United States, China, and Japan.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

34) An organization can be considered "global" simply if it carries out trade with other countries.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

35) An organization that hires employees from other countries but does not obtain financing from a foreign source cannot be considered global.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

36) Multinational corporations maintain significant operations in two or more countries simultaneously.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

37) Sony is an example of a multidomestic company.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

38) John Deere is an example of a multidomestic company.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

39) Transnational corporations run their businesses from their home country.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

40) When organizations go global, they often start by simply exporting products to one or more foreign countries.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

41) After the global sourcing stage, companies that are going global often turn to exporting and importing goods across international borders.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

42) Licensing and franchising typically follow the export-import phase of globalization.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

43) In a strategic alliance, companies join together to form a separate entity to produce a product.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

44) In a short essay, explain the differences between a multidomestic corporation, a global corporation, and a transnational corporation.

The transnational or borderless organization represents a step further in decentralization from the multidomestic. In a transnational, central control is abolished and all operations coordinate together, sharing in the decision-making process. Corporations choose the transnational approach to give their organizations a truly international stance, allowing them to pose as disinterested parties when it comes to making decisions that might favor one country over another.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Critical thinking

45) In a short essay, describe the steps a company takes in going global.

After outsourcing, exporting and importing is likely to follow. For example, the shoe company may now begin to sell its shoes in foreign markets. It may also begin to import lines of specialty shoes to sell in its domestic stores. A larger commitment than exporting and importing involves licensing—selling the rights to make a product overseas—or franchising—selling the right to run a whole operation overseas.

The third step in going global involves setting up strategic alliances—partnerships with foreign companies—and joint ventures—special partnerships in which a new company is formed to create a specific product. A shoe company might do this by setting up a partnership with a foreign leather company to produce handbags.

The final step in going global is to set up a foreign subsidiary—a branch of the company's operation that will set up shop in the foreign location. In this case, the shoe company might build an entire shoe factory in a foreign location and hire local managers to run it.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.1: Explain globalization and its impact on organizations.

Question Category: Concept

46) Running Bear is very proud of his Native American heritage. He believes the world would be a much better place if people the world over adhered to his views and followed the ways of his people. Which one of the following best describes Running Bear's attitude?

A) assertiveness

B) parochialism

C) humane orientation

D) collectivism

Diff: 1

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

47) Her Spanish supervisor was appalled when Mary, an American expatriate, boldly marched into his office in Barcelona to offer a suggestion to solve a production problem. Which one of the following best explains the supervisor's response?

A) Mary did not understand gender differences related to the Spanish culture.

B) The supervisor was a very assertive person.

C) Spain ranks high in power distance.

D) Spain ranks low in uncertainty avoidance.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

48) Tyrone was flabbergasted when Michiko burst into tears and ran from the room after he praised her work on the new product launch team. Apparently Tyrone has forgotten that ________.

A) the Japanese, who rank high on collectivism, do not like being singled out for special attention

B) Michiko is a very shy person

C) Michiko has violated the gender differentiation values by working outside the home

D) praise is not a nurturing activity

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

49) Gerhard read the report but asked for more information–repeatedly. His subordinates accuse him of paralysis by analysis. He wants to know the outcome before making any decision. We could reasonably say Gerhard is ________.

A) low in uncertainty avoidance

B) high in achievement

C) low in assertiveness

D) high in uncertainty avoidance

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

50) The most important thing in Lin Woo's life is his family. He is very proud of his children and their accomplishments. He declines to work weekends so he can spend time with them and with his parents. We might suspect Lin Woo is ________.

A) low in in-group collectivism

B) high in in-group collectivism

C) high in individualism

D) low in achievement

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

51) Svetlana's supervisor wants to use goal-setting theory to motivate her, so he offered her a choice. One set of goals pays a small amount in three months; the second option pays ten times as much in three years. Svetlana chose the shorter timeframe because ________.

A) her culture has a low performance orientation

B) her culture has a high performance orientation

C) her culture has a high future orientation

D) her culture has a low future orientation

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

52) Lucien has accepted an expatriate assignment in Egypt. His Egyptian supervisor scored him low in teamwork, giving examples of his lack of kindness to and concern for his teammates. From this we can conclude that Lucien has a ________.

A) high need for achievement

B) low need for achievement

C) high humane orientation

D) low humane orientation

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Application

53) Which one of the following is the best synonym for the word parochial?

A) religious

B) catholic

C) broad

D) narrow

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

54) Parochialism is ________.

A) acceptance of diverse points of view

B) a desire to leave one's own culture for a foreign culture

C) a tendency to view the world through a single perspective

D) recognition of diverse religious beliefs

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

55) Status in France within a corporation is largely ________.

A) measured in the same way it is in the United States

B) based on how much money a person makes

C) based on such things as seniority and educational level

D) based on an individual's personal accomplishments

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

56) In his study of differences in cultural environments, Geert Hofstede found that ________.

A) people are largely the same from culture to culture with respect to values

B) the views of managers differ greatly from those of employees with respect to values

C) the views of IBM employees differ widely from the general population with respect to values

D) people vary from culture to culture in five value categories

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

57) ________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society.

A) Power distance

B) Collectivism

C) Individualism

D) Uncertainty avoidance

Diff: 1

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

58) Which one of the following would be likely to be true in a country with a high power distance?

A) Hundreds of statues, billboards, and posters of the leader would appear all over the capital.

B) The leader's likeness would appear only in the newspaper from time to time.

C) Top managers and employees would dress in similar ways.

D) Rather than employ a driver, top managers would drive their own cars to work.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

59) A country with a high uncertainty avoidance ________.

A) is highly structured and depends on rules and social institutions to cope with uncertainty

B) is highly structured and does not depend on rules and social institutions to cope with uncertainty

C) has no rules

D) has no structure or social institutions

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

60) In a country with a low uncertainty avoidance, people cope with uncertainty ________.

A) by following rules and depending on social institutions

B) by making new rules

C) largely without rules or strong social institutions

D) by looking to the religious teachings

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

61) Societies with a high assertiveness rating on the GLOBE scale would tend to be ________.

A) passive

B) excessively polite

C) competitive

D) uncertain

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

62) In a society with high ________ on GLOBE, we would expect members of a corporation to have a strong identification with the corporation.

A) gender differentiation

B) future orientation

C) in-group collectivism

D) humane orientation

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

63) ________ on Hofstede's dimensions of natural culture is an attribute that describes how materialistic a society is.

A) Power distance

B) Quality of life

C) Quantity of life

D) Individualism

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

64) Which feature of Hofstede's work lends the study a great deal of validity?

A) It measured attitudes of IBM employees.

B) It measured attitudes of many successful people.

C) The survey was carried out in the 1970s.

D) It surveyed 116,000 people.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

65) Which one of the following dimensions from the GLOBE framework has no equivalent counterpart in Hofstede's framework?

A) gender differentiation

B) humane orientation

C) future orientation

D) individualism/collectivism

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

A Different View (Scenario)

Michelina has spent the last year traveling to different facilities for her company. She visited factories in Mexico and Thailand, a finance operation in Singapore, a pearl company in Japan, and many other venues. She now has collected her thoughts about the various places she visited.

66) In Mexico and Japan, Michelina noticed that it seemed easy to convince people to work together for the good of the group. How would you characterize this trait?

A) collectivist

B) individualist

C) humane

D) assertive

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

67) In Greece, Michelina visited a pharmaceutical operation. She found that managers there were charming but not at all shy. If they thought they were right they tended to be aggressive and confrontational. How would you characterize this trait?

A) high uncertainty avoidance

B) assertive

C) future oriented

D) low uncertainty avoidance

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

68) In Venezuela, Michelina found that people tended to show great deference toward their superiors. When meeting with one higher-up, she noticed that the local managers seemed to exhibit extremely deferential behavior. How would you characterize this trait?

A) future oriented

B) high uncertainty avoidance

C) low power distance

D) high power distance

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

69) In Denmark, Michelina met people who marveled about the ability of Americans to be so "bold" and flexible when it came to making decisions about the future, while the Danish tended to rely on rules when facing uncertainty. How would you characterize this trait that Americans appear to have?

A) low uncertainty avoidance

B) high uncertainty avoidance

C) high power distance

D) individualistic

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Analytical

70) Managers with a parochial view of the world tend to see things from the point of view of a foreign culture.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

71) French organizations have a very different view of status than American organizations.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

72) According to Hofstede, countries such as Singapore and Japan are more collectivist than the United States.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

73) The United States is an example of a country with small power distance.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

74) A society with high uncertainty avoidance relies on rules and trusts its social institutions to deal with an uncertain future.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

75) Cultures with a high assertiveness rating tend to have people who are timid and shy.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

76) Future orientation is a measure of how successful a society is at delaying gratification.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

77) Hofstede based his ratings on the traits of people of different nationalities with whom he was personally acquainted.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

78) Hofstede's findings have received little support in the academic world and were not confirmed by later studies.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Concept

79) In a short essay, define parochialism and explain why it can be a problem for U.S. managers.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Critical thinking

80) In a short essay, list and explain the first three of Hofstede's dimensions of national culture.

b. Power distance: Power distance is the degree to which people are accepting of gross differences in power in their society. A culture with a high power distance, for example, is likely to feature the "big boss" in its midst—an individual who has an excessive amount of social, economic, and perhaps military power and influence. In a culture of low power distance, individuals of power are reined in, relatively speaking. In cultures of low power distance, individuals of differing status can speak as equals. In a culture of high power distance, interaction between individuals of different status are likely to be accompanied by overt displays of respect and other symbols of the power imbalance.

c. Achievement versus nurturing: Quantity of life focuses largely on material items and describes a typical affluent western consumer culture. Quality of life reflects the degree to which people value such things as family, loyalty, personal relationships, and other things that "money can't buy."

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Critical thinking

81) In a short essay, list and explain the last two of Hofstede's dimensions of national culture.

b. Long-term versus short-term orientation: People in long-term orientation cultures look to the future, value thrift and persistence, and frequently delay gratification. They are like the ant that saves for the future in the well-known Aesop's fable. A short-term orientation values the past and present and emphasizes respect for tradition and fulfilling social obligations. A short-term orientation is typically not successful in delaying gratification. Short-term orientation cultures resemble the grasshopper in the Aesop's fable that indulges now rather than wait for the future.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Critical thinking

82) In a short essay, discuss the value of Hofstede's values study to managers.

Managers should also be aware that Hofstede's characterizations are not set in stone, and that, for example, a German might turn out to be hot-tempered and a Greek to be exacting. That said, there is predictive value in Hofstede's characterizations. They are, in a sense, a small window into each culture that can be used as a guide to the culture's hopes, dreams, and self-image as well as its habits and priorities. Used wisely, Hofstede's data can help managers understand the national psychology of a country as it relates to buying, selling, and markets.

Diff: 3

AACSB: Reflective thinking

LO: 3.2: Describe what managers need to know about managing in a global organization.

Question Category: Critical thinking

83) The classical view of social responsibility holds that spending time, money, labor, or energy to improve society's welfare would ________.

A) deprive stockholders of resources that could be used to generate profits

B) not have any positive or negative impact on stockholders

C) help maximize profits for stockholders

D) show stockholders that the company knows best

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.2: Discuss how society's expectations are influencing managers and organizations.

Question Category: Analytical

84) Marconi's Pizza ensures that it meets all the health department regulations governing restaurants–but it does not go any further. At which level does Marconi's function?

A) social obligation

B) social responsiveness

C) social responsibility

D) socioeconomics

Diff: 1

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

85) Many years ago, Avon legally tested its eye make-up products on rabbits. The PETA (People for the Ethical Treatment of Animals) organization picketed the firm and encouraged consumers to boycott it. As a result, Avon stopped its animal testing. This is an example of ________.

A) social obligation

B) social responsiveness

C) social responsibility

D) socioeconomics

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

86) At its food supplement facility in Oklahoma, Shaklee makes sure the air and water emitted from its plant exceed EPA standards for pollutants and temperature, earning Shaklee the first-ever climate-neutral rating awarded in the United States. This is an example of ________.

A) social obligation

B) social responsiveness

C) social responsibility

D) socioeconomics

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

87) Paul's Welding denied a request from a local Peewee League softball team to provide t-shirts for the t-ball players, even though Paul's would have been permitted to put its business name on the shirts. From his decision we can deduce that Paul subscribes to the ________.

A) classical view of social responsibility

B) Keynesian view of economics

C) socioeconomic position

D) social responsiveness code of conduct

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

88) Mr. Khoury recently purchased a filling station that has old metal in-ground fuel storage tanks. He has received an exception to the EPA regulation that would have required him to replace them with non-metal tanks that do not corrode, but he has decided to replace them anyway despite the loss of income he will incur while his station is shut down for the work. Which one of the following is the best argument in support of Mr. Khoury's decision?

A) ethical obligation

B) discouragement of further government regulation

C) stockholder interests

D) superiority of prevention over cures

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

89) The FDA has threatened to regulate the producers of CBD oil. Medical Hemp, Inc. has decided to upgrade its facilities to the level required of pharmaceutical companies even though the FDA may never get involved. Which one of the following is the best argument in support of Medical Hemp's decision?

A) public expectations

B) discouragement of further government regulation

C) public image

D) long-run profits

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

90) Verizon has advertised it has given more than one million tablets to students in economically depressed school districts. The customers of Verizon may object to this action on which one of the following grounds?

A) dilution of purpose

B) lack of skills

C) costs

D) lack of accountability

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

91) NewMarket Products has grown rapidly since its IPO and is bombarded with requests for donations, scholarships, sponsorships, and the like. So it created a new department to review each request and select those the team deemed worthy of funding. The stockholders are not pleased with this turn of events. Which one of the following best supports their objections?

A) too much power

B) dilution of purpose

C) lack of skills

D) lack of accountability

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

92) Subaru in Lafayette, Indiana, recycles the packaging that comes in shipments from its Asian suppliers. Subaru knows the length of time needed for Styrofoam to break down in landfills so it wants to reduce the amount it uses. From its actions, we can infer that Subaru ________.

A) is concerned with sustainability

B) wants to reduce its costs

C) is meeting its social obligations

D) is diluting its purpose

Diff: 1

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

93) Which one of the following best summarizes Blake Mycoskie's (the founder of TOMS shoes) business philosophy?

A) A business should be ethical but not socially responsible.

B) A business should be socially responsible but not ethical.

C) A business should be both ethical and socially responsible.

D) A business should not worry about being either ethical or socially responsible.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Analytical

94) The socioeconomic view of social responsibility is that a for-profit organization's responsibility is ________.

A) to maximize stockholder wealth

B) to maximize both profits and the general welfare

C) to do what only the law requires

D) to maximize opportunities for citizens in developing countries

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

95) The classical view of social responsibility is that a for-profit organization's responsibility is ________.

A) to help as many people as possible

B) to maximize both profits and the general welfare

C) to maximize profits only

D) to maximize opportunity for all

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

96) A company that meets its social obligation ________.

A) fulfills its economic responsibilities only

B) fulfills its legal and economic responsibilities only

C) goes beyond its legal and economic responsibilities and responds to some pressing social need

D) does not need to obey local laws

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

97) Which one of the following is the best example of a company being socially responsive?

A) meeting hazardous materials standards

B) giving Christmas bonuses to worthy employees

C) displaying "think green" posters

D) building a community day-care center

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

98) The author's view of social responsibility is that a business ________.

A) is an economic agent only

B) has no responsibility

C) is a moral agent

D) is a harmful agent

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

99) The socioeconomic view is that management's social responsibility goes beyond making profits to include ________.

A) challenging norms within society and inciting people to rise up against injustice

B) protecting and improving society's welfare

C) sacrificing its own welfare to advance the cause of justice

D) prosecuting those who break the law

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

100) When a company does the minimum that the law requires, it is meeting its ________.

A) social responsiveness goal

B) economic responsibility

C) ethical responsibility

D) social obligation

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

101) A factory that has adhered to all pollution control standards has ________.

A) been socially responsive

B) been economically responsible

C) been ethical

D) met its social obligation

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

102) Social responsiveness refers to the capacity of a firm to ________.

A) address some pressing public need

B) follow all government regulations

C) differentiate between right and wrong

D) be a role model for other organizations

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

103) When a firm advertises that it only uses recycled paper products, it is ________.

A) meeting its social obligation

B) being cynical

C) being socially responsive

D) paying attention to the bottom line

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

104) Proponents of the socioeconomic view of social responsibility believe that being socially responsive is ________.

A) good for business

B) bad for business

C) neither good nor bad for business

D) bad for any business in a competitive market

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

105) ________ dictates that being socially responsible is the "right thing to do."

A) A public image

B) An ethical obligation

C) A public expectation

D) A dilution of purpose

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

106) Supporters of social responsibility claim that being socially responsible ________.

A) increases short-term profits

B) decreases long-term profits

C) increases long-term profits

D) decreases short-term profits

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

107) Supporters of socially responsible businesses claim that by becoming socially responsible, businesses can expect ________.

A) less government regulation

B) more government regulation

C) more strict enforcement of laws

D) more government interference

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

108) Since businesses have more power and resources than ordinary individuals, supporters of social responsibility claim that businesses have ________.

A) a good reason to ignore the needs of ordinary individuals

B) no reason to act in a socially responsible way

C) more reason to act in a socially responsible way

D) less reason to act in a socially responsible way

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

109) Most studies have shown that companies that engage in social involvement ________.

A) receive a small positive benefit

B) receive an enormous positive benefit

C) experience a small negative effect

D) experience an enormous negative effect

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

110) People who doubt that there is a relationship between company performance and social involvement think that which one of the following statements could account for any positive performance effect seen in companies that practice social involvement?

A) The only companies that practice social involvement are highly unsuccessful companies that try to use social involvement to improve their image in the marketplace.

B) The only companies that practice social involvement are highly ambitious companies that use social involvement as a way to network and gain access to wealthy clients.

C) The only companies that practice social involvement are highly successful companies that can afford to waste time and energy on social involvement as a "luxury."

D) The only companies that practice social involvement are highly ambitious companies that use social involvement as a learning tool for their training programs.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

111) Suppose that a study shows that companies that were not socially involved tended to be less profitable than socially involved companies. Which one of the following can be concluded?

A) Social involvement definitely causes a company's profits to decrease.

B) Social involvement definitely causes a company's profits to increase.

C) Social involvement may cause a company's profits to increase.

D) Social involvement may cause a company's profits to decrease.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

112) The argument against social responsibility states that pursuing goals other than making profits diverts a company away from its primary goal of making profits, a concept known as ________.

A) possession of resources

B) too much power

C) lack of skills

D) dilution of purpose

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

113) One prominent argument against being socially responsible makes the claim that business managers are ________ to address social concerns.

A) too impractical

B) not competent

C) too wealthy

D) too out of touch

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

114) Those arguing against being socially responsible might make the claim that costs for social goals are ultimately ________.

A) paid for by the people being helped

B) paid for by companies in the form of tax breaks

C) paid for by consumers in the form of higher prices

D) are never paid by anyone

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

115) Which one of the following is NOT an argument against the idea that companies should be socially responsible?

A) costs

B) too much power

C) violation of profit maximization

D) public expectations

Diff: 1

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

116) "Lack of accountability" argues against a firm being socially responsible by saying that once actions are taken there is no one ________.

A) to take responsibility if things go wrong

B) to take credit if things work out well

C) to speak to the media to put a spin on actions taken

D) to follow up afterward

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

117) Which one of the following best defines sustainability for a company?

A) running the company with a strategy that is both profitable and good for the environment

B) running the company with a strategy that is profitable whether or not it is good for the environment

C) running the company with a strategy that is good for the environment even if it is not profitable

D) running the company with a strategy that does not change the environment in any way

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

118) What does Walmart's business policy say about the company's belief in sustainability?

A) Walmart must believe that global climate change is a hoax.

B) Walmart must believe that environmental issues are important.

C) Walmart must believe that global climate change is a left-wing conspiracy.

D) Walmart must believe that global climate change is a right-wing conspiracy.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Analytical

119) Which one of the following is LEAST likely to be viewed by a company as an advantage of stressing sustainability?

A) The company is seen as efficient.

B) The company is seen as ethical.

C) The company avoids bad press.

D) The company avoids economic ramifications of being seen as socially irresponsible.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

Opposing Views of Social Responsibility (Scenario)

The board of directors of the Four Forks Generating Corporation is meeting to consider the construction of a new electrical generation facility near the Four Forks River. Director Appleton prefers a coal-burning plant because it promises to be the most profitable alternative. Over the short term at least, a coal plant will be by far the least expensive facility to build and operate. Coal is cheap and the considerable pollution from the plant won't affect anything within hundreds of miles from the plant.

Director Estrella wants a nuclear plant to be located 30 miles upriver from the biggest city in the area. Nuclear power is cleaner than coal. Completely safeguarding the community against accidents in the plant or the disposal of toxic waste could be very expensive. However, Estrella has discovered that the job can be done much more cheaply by cutting some corners—while still strictly following all laws—and creating some additional risk for the community.

Director Jossleman supports the most expensive option of the three—she wants a wind farm to be built along the banks of the river on top of a ridge. The wind turbines produce absolutely no pollution and pose no threat to the community or the environment. They are expensive to build and to operate at the current time because they require elaborate back-up systems to function when the wind isn't blowing.

120) Director Appleton exhibits which of the following social responsibility views?

A) social responsiveness

B) broad view of social responsibility

C) classical view of social responsibility

D) socioeconomic view of social responsibility

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

121) Director Estrella exhibits which of the following social responsibility views?

A) social awareness

B) socioeconomic view of social responsibility

C) classical view of social responsibility

D) social obligation

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

122) Director Jossleman is exhibiting which of the following social responsibility views?

A) socioeconomic view of social responsibility

B) classical view of social responsibility

C) social obligation

D) no social obligation

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

123) Suppose Director Jossleman proposes building a wildlife preserve near the wind farm for the local community. What is Josselman demonstrating in her proposal?

A) social responsiveness

B) socioeconomic view of social responsibility

C) classical view of social responsibility

D) social awareness

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Application

124) There is little evidence that managers of major organizations ever fail to act responsibly and ethically.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

125) The classical view of organizational social responsibility is that management's only social responsibility is to maximize profits.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

126) In the socioeconomic view of organizational social responsibility, management's responsibility includes protecting and improving society.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

127) One argument against businesses championing social responsibility issues is that being socially responsible can harm an organization's public image.

Diff: 1

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

128) Long-term stability and the long-term ability to make profits is an argument for social responsibility.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

129) As long as it has broken no laws and done nothing unethical, a business has fulfilled its responsibility to society.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Concept

130) A good example of social responsiveness is a company whose managers conduct business in an ethical way and strictly follows all local laws.

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.3: Discuss how society's expectations are influencing managers and organizations.

Question Category: Analytical

131) Which one of the following situations describes an action that at the time was legal but unethical?

A) Recording as current sales vague promises from prospective customers to purchase a firm's services

B) Selling stocks based on information from an employee that the firm's much-hyped new product has serious quality problems

C) Requiring minority riders to give up their seats to white riders on city buses in the American South in the 1950s

D) Selling tobacco products to minors in the 1940s

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

132) Stockholder demands for higher profits conflicts with union employees' demands for higher wages. Management is seriously considering moving production operations offshore to a country with lower wage rates and no unions, forcing American workers out of their jobs. This situation describes ________.

A) a globalization opportunity

B) a socioeconomic problem

C) a social responsibility issue

D) an ethical dilemma

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

133) Management has decided to move production operations offshore, a move that will cost 237 jobs in the United States. However, there is the potential to increase profits and dividends to the 984 stockholders. It would appear that management is following the ________ view of ethics.

A) utilitarian

B) rights

C) theory of justice

D) socioeconomic

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

134) Carl posted on social media a detailed account of his disagreement with a particular company policy where he works, even suggesting his readers boycott his company's products until the policy is changed. The CEO would like to fire him, but the HR manager advised against it even though she was unhappy about the comments. Which view of ethics is the HR manager following?

A) utilitarian

B) rights

C) theory of justice

D) socioeconomic

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Application

135) Ramona is the best worker in the group, but she has been tardy one too many times. Her supervisor knows the company policy is to suspend her for three days but she is needed on the line to get out the big order for the firm's best customer. He had no problem suspending Luca; he was rather lazy anyway. He just can't afford to lose Ramona's production for three days. Which view of ethics is the supervisor struggling with?

A) utilitarian

B) rights

C) theory of justice

D) socioeconomic

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Application

136) Which one of the following is a basic definition of ethics?

A) rules that define good and evil

B) laws that define legal and illegal

C) principles that define right and wrong

D) principles that define standards of decency

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

137) A ________ is a formal document that states an organization's primary values and the ethical rules it expects its employees to follow.

A) mission statement

B) statement of purpose

C) code of ethics

D) vision statement

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

138) About ________ of organizations of 10,000 or more employees have a written code of ethics.

A) one-third

B) half

C) 70 percent

D) 97 percent

Diff: 1

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

139) In most cases, organizations that have managers who behave ethically tend to have ________.

A) more productive employees

B) more ethical employees

C) less ethical employees

D) employees who are no more or less ethical than average

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

140) A(n) ________ view of ethics states that more productive workers should get more pay and less productive workers less pay, regardless of other circumstances.

A) rights

B) utilitarian

C) theory of justice

D) individual liberties

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

141) A manager who subscribes to the theory of justice view of ethics might pay low-level employees ________.

A) the minimum wage

B) more than the minimum wage

C) less than the minimum wage

D) according to how productive they were

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

142) How might a manager with a rights view of ethics view the prospect of forbidding an employee from making what he feels are "misguided" political statements on her non-company website?

A) The manager would ask the employee to take down the website on the grounds that it violates company policy.

B) The manager would order the employee to take down the website on the grounds that its positions are foolish and wrong.

C) The manager would order the employee to take down the website on the grounds that it misrepresents the company.

D) The manager would not interfere with the website.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

143) Which one of the following is most likely at the root of the problems that befell an unethical company like Enron?

A) poor ethics training programs

B) no written code of ethics

C) leaders with such high ethical standards that ordinary people could not hope to live up to them

D) leaders with poor ethical standards

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Analytical

144) Which one of the following best identifies how well ethics can be learned?

A) Ethical training can increase awareness of ethical issues.

B) Ethics are inborn and cannot be changed or learned.

C) Ethical problem-solving practice helps almost all people avoid ethical dilemmas.

D) Ethical problem-solving practice is worthless.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

145) Any action that is illegal is unethical and any action that is legal is ethical.

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

146) Having a written code of ethics ensures that an organization's members will behave ethically.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

147) A utilitarian view of ethics focuses on consequences and the greatest good for the greatest number of people.

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

148) A theory of justice view of ethics focuses on individual liberties and privileges.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Concept

149) In a short essay, discuss arguments for and against social responsibility.

That said, it seems artificial to assert that a company has only a single purpose—to make a profit. It is similar to saying that a worker has only one purpose—for example, to feed his or her family, and any efforts made not in pursuit of that goal cheat the family out of its rightful property and is therefore immoral. However, workers clearly do not have only one purpose—they have multiple purposes: to feed their family, to protect their family, to teach their family, and so on.

Going back to a company, if it is incorrect to assert that a person can have only a single purpose then it is perhaps also incorrect to assert that a company can have only a single purpose. Like a worker, a company can have multiple purposes. One of them might be to make a profit. Others might include such things as protecting and improving society's welfare—in other words, the socioeconomic view of social responsibility. If you define a company as an entity that has many purposes, some economic, some moral, then the conflict between the two views largely melts away, and the socioeconomic view becomes the only true view of the situation.

Diff: 3

AACSB: Ethical understanding and reasoning

LO: 3.4: Discuss the factors that lead to ethical and unethical behavior in organizations.

Question Category: Critical thinking