Test Bank Chapter 3 Ethics And Social Responsibility - Management Canada 5e | Complete Test Bank by John R. Schermerhorn Jr. DOCX document preview.
CHAPTER 3
ETHICS AND SOCIAL RESPONSIBILITY
Question type: True/False
1) Ethics reflects the code of moral principles that sets standards as to what is “good” versus “bad” or “right” versus “wrong” in people’s conduct, and thereby guides their moral choices and behaviours.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
2) If an act or action is legal it follows then that the act or action will also be ethical.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
3) Taking several pens from the office and giving them to family members is an example of living up to the “letter of the law.”
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
4) Values are broad beliefs about what is appropriate behaviour.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
5) Terminal values are preferences regarding the means to desired ends.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
6) Among the terminal values held important by managers are self-respect, family security, freedom and happiness.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
7) Instrumental values are preferences regarding desired ends.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
8) Self-respect, freedom, happiness, and family security are examples of terminal values; and imagination, ambition, self-discipline, and honesty are examples of instrumental values.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
9) Most ethical problems in the workplace arise when people are asked to do or are about to do something that challenges their terminal and instrumental values.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
10) To the extent that values vary among people, we can expect different interpretations of what behaviour is ethical or unethical in a given situation.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
11) Variation in values among people has little, if any, impact on differences in people’s interpretations of behaviour as being ethical or unethical in a given situation.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
12) The utilitarian view considers ethical behaviour to be that which delivers the greatest good to the greatest number of people.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
13) The utilitarian view of ethical behaviour is based on the work of philosopher John S. Mill.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
14) The utilitarian view of ethical behaviour focuses on treating people impartially and fairly in accordance with guiding rules and standards.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
15) Results-oriented performance criteria are consistent with the utilitarian view of ethics.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
16) The individualism view of ethical behaviour focuses on the pursuit of long-term self-interests.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
17) The individualism view assumes that all individuals are self-regulating which means that they will run roughshod over other individuals.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
18) An individual whose ethical behaviour protects and respects the fundamental rights of all human beings is practising the moral-rights view of ethics.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
19) In contemporary organizations, the moral-rights view concerns the protection of employees with respect to their rights to privacy, due process, free speech, health and safety, and freedom of conscience.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
20) The justice view of ethical behaviour focuses on treating people impartially and fairly according to guiding rules and standards.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
21) Procedural justice involves the degree to which policies and rules are fairly applied to all individuals.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
22) The concept of procedural justice is concerned that policies and rules are applied fairly.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
23) Distributive justice is the degree to which others are treated with dignity and respect.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
24) Interactional justice involves the degree to which individuals treat each other with respect and dignity.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
25) Interactional justice is the degree to which policies and rules are administered fairly in an organization.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
26) Commutative justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
27) A determinant of ethical behaviour is cultural context.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
28) “When in Rome, do as the Romans do” is a classic example of the ethical perspective of cultural relativism.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
29) Cultural relativism suggests ethical standards apply universally across all cultures.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
30) Moral absolutism is the believe that if a behaviour or action is not ethical in one’s home environment, it may be acceptable somewhere else.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
31) Ethical imperialism is an attempt to impose one’s ethical standards on other cultures.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
32) Cultural relativism is a form of ethical imperialism.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
33) A person who adopts the perspective of cultural relativism assumes that ethical standards should apply absolutely across cultures and national boundaries.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
34) A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of universalism.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
35) Core values or “hyper-norms” that transcend cultural boundaries focus on human dignity, basic rights, and good citizenship.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
36) Keeping a safe workplace; creating a corporate culture that values employees, customers, and suppliers; and producing safe products and services are universal core values that respect human dignity.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
37) An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered unethical.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
38) When an action must be taken and there is not a clear “right” or “wrong” approach, a person is faced with an ethical dilemma.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
39) Ethical dilemmas often involve conflicts of interest, issues of customer confidence, or the use of organizational resources, however, they seldom concern discrimination or sexual harassment.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
40) Questions such as “Is it legal?” “Is it right?” “Whom does it affect?” “Who benefits?” and “Who gets hurt?” are examples of spotlight questions.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
41) Asking spotlight questions is a powerful way to test whether a decision is consistent with an individual’s personal ethical standards.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
42) Personal factors such as religious values and family influences have little effect on managerial ethics, whereas personal standards and needs have a great deal of impact on managerial ethics.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
43) An ethical framework is a personal rule or strategy for making ethical decisions.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
44) Factors influencing ethical behaviour by management include the person, the organization, the situation, and the external environment.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
45) Environmental factors that affect the ethical standards of an organization and its employees include social norms and values, competition within an industry, and governmental laws and regulations.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
46) The virtues of honesty, fairness, integrity, and self-respect provide ethical frameworks that help people make correct decisions even when circumstances are ambiguous and situational pressures are difficult.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
47) The behaviour of supervisors and the expectations of peers are organizational factors that influence ethical behaviour.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
48) The three levels of moral development were identified by L. Kohlberg.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
49) In Kohlberg’s preconventional level of moral development, moral thinking is largely limited to issues of punishment, obedience, and personal interest.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
50) In Kohlberg’s conventional level of moral development, the individual is strongly principle-centred.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
51) In Kohlberg’s postconventional level of moral development, the individual is willing to break with norms, conventions and laws.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
52) The conditions that raise the ethics intensity of a situation include the magnitude, probability, and immediacy of any potential harm, the proximity and concentration of the effects, and social consensus.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
53) The ethics culture in an organization sets high standards and may even push people to behave more ethically than they otherwise would.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
54) Government laws and regulations can describe and encourage ethical behaviour, however they can’t guarantee ethical conduct.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
55) The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Hard
AACSB: Analytic
56) The climate of competition in an industry has little impact on what may be considered as ethical or unethical.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
57) A common statement by a rationalizer is “It’s in everyone’s best interests.” This response involves the mistaken belief that because someone can be found to benefit from the behaviour, the behaviour is also in the individual’s or the organization’s best interests.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
58) Moral muteness occurs when individuals ignore behaviour that is ethically questionable.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
59) Making sure that everyone knows wrongdoing will be punished whenever it is discovered is an appropriate method for dealing with the rationalization that “no one will ever know about the unethical behaviour.”
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
60) One of the six pillars of character is citizenship.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
61) An amoral manager chooses to behave unethically.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
62) An immoral manager is one who fails to consider or disregards the ethical implications of his or her behaviour.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
63) A moral manager is one who considers the ethical implications of his or her behaviour and actions.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
64) An amoral manager is one who fails to consider or disregards the ethical implications of his or her behaviour.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
65) Ethics mindfulness is a state of awareness that causes a person to behave in an ethical manner from one situation to another.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
66) Moral leaders are more influential than either amoral or immoral leaders.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
67) Moral managers are leaders who possess ethics mindfulness.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
68) Amoral and immoral leaders can be just as influential as moral leaders.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
69) According to Archie Carroll, managers who are engaged in unethical practices remain mostly uninformed or undisciplined in considering the ethical aspects of their behaviour.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
70) The value of an ethics code relies on the organization’s underlying human resource foundation.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
71) Exposure to a multi-step process for dealing with ethical dilemmas is an appropriate component of an ethics training program.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
72) Codes of ethics may identify expected behaviours in terms of general organizational citizenship, the avoidance of illegal or improper employee behaviour, and customer relations.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
73) Formal codes of ethics are usually concerned with expressing how employees may be expected to behave in terms of customer-supplier relationships, political contributions, confidentiality of corporate information, and response to bribes and kickbacks.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
74) A whistleblower is a person who exposes the misdeeds of others in an attempt to divert attention from his or her own unethical behaviour.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
75) A whistleblower is someone who exposes the misdeeds of others in an organization in an attempt to preserve ethical standards and protect against wasteful, harmful, or illegal acts.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
76) Strong work group identities that encourage loyalty and self-censorship are barriers to whistle blowing.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
77) Organizational barriers to whistle blowing include a strict chain of command, strong work group identities, and ambiguous priorities.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
78) Impaired career progress and various retaliatory actions, up to and including termination, are among the potential risks faced by people who act as whistleblowers.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
79) Organizational stakeholders are the persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
80) Any organization has a social responsibility to serve the interests of its many stakeholders.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
81) Competitors, labour unions, public-interest groups, and legal institutions are all shareholders of an organization.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
82) Demand legitimacy indicates the extent to which a stakeholder’s concerns need immediate attention.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
83) Issue urgency is the extent to which stakeholder’s demand is perceived as requiring immediate attention.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
84) Corporate social responsibility means taking personal responsibility to always respect and protect the interests of society at large.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
85) Corporate social responsibility means the obligation of an organization to act in such a way that serves the interests of stakeholders and society at large.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
86) Advocates of corporate social responsibility assert that businesses have the resources and obligation to act in socially responsible ways, and that it decreases the need for restrictive government regulation, improves the public image of business, and may improve or determine long-run profits.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
87) According to its opponents, corporate social responsibility will raise business costs, reduce business profits, dilute the purpose of business, and give business too much social power.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
88) The triple bottom line evaluates organizational performance on economic, social, and environmental criteria.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
89) The three P’s of organizational performance are patience, politeness, and planning.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
90) The classical view of social responsibility maintains that the organization must be concerned with the broader social welfare and not just with corporate profits.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
91) According to the classical view of CSR, the principal obligation of management should be to owners and shareholders.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
92) The socio-economic view of social responsibility holds that management’s only responsibility in managing a business is to maximize profits.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
93) The shared value view of social responsibility maintains that organizational profits and growth and societal social progress are interconnected.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
94) A social responsibility audit is a systematic assessment and reporting of an organization’s accomplishments in various areas of corporate social responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
95) When corporate social performance focuses on acting to create positive impact, the company’s actions are driven by compliance.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
96) The obstructionist strategy involves a corporate social responsibility commitment that reflects mainly economic concerns and meets the organization’s economic responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
97) The defensive strategy involves a corporate social responsibility commitment that meets economic and legal responsibilities and seeks to protect the organization by doing the minimum legally required to satisfy expectations.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
98) An organization that is following a proactive social responsibility strategy would take both preventive actions to avoid adverse social impacts from company activities and a leadership role in identifying and responding to emerging social issues, thereby satisfying economic, legal, ethical, and discretionary responsibilities.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
99) Housing and job training for the homeless, bringing technology to poor families, improving literacy among disadvantaged youth, and making small loans to start minority-owned businesses are all examples of social entrepreneurship.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
100) Corporate governance involves making sure day-to-day performance is achieved ethically and in socially responsible ways.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
101) A firm is meeting its legal responsibility when it voluntarily conforms to legal as well as broader values and moral expectations of society.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
102) An organization is meeting its ethical responsibility when it is in compliance with the law and requirements of various external regulations.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
103) Corporate governance is defined as the way that governments regulate corporations.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
104) Corporate governance typically involves hiring, firing, and compensating the chief executive officer (CEO); assessing strategy; and verifying financial records.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
105) Corporate governance is the sole responsibility of top management and the boards of directors in large corporations.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
106) Corporate governance is defined as the oversight of the actions and decisions of top management of an organization by the board of directors.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
107) The effectiveness of corporate governance has been criticized because ethical failures and scandals have raised concerns about executives’ commitment to corporate social responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
108) When corporate boards of directors are weak or unethical, the government sometimes steps in to try to correct things for the future.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
109) The reality facing managers in contemporary organizations is that they are responsible for attaining high performance along with high ethical standards and social responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Question type: Multiple Choice
110) Ethics is defined as the ___ code of principles that sets standards of good or bad, or right or wrong, in one’s conduct.
a) social
b) legal
c) moral
d) cultural
e) religious
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
111) Which statement accurately describes the relationship between law and ethics?
a) Even though an action is legal, it may not be ethical.
b) An action that is not illegal is without question an ethical action.
c) Living up to the “letter of the law” is a sufficient guarantee that a person’s actions are truly ethical.
d) a and c
e) b and c
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
112) Most ethical problems in the workplace arise when people are asked to do or are about to do something that
a) is illegal.
b) goes against work group standards.
c) violates their personal beliefs.
d) violates the organization’s policies.
e) violates social norms.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
113) Which of the following is a terminal value?
a) honesty
b) ambition
c) imagination
d) self-discipline
e) happiness
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
114) After completing an exercise in values lasting freedom, self-respect, and security are what Hollis values. The values are examples of
a) personality.
b) instrumental values.
c) diversity.
d) moral values.
e) terminal values.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
115) Which of the following is an instrumental value?
a) honesty
b) self-respect
c) freedom
d) family security
e) happiness
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
116) Self-respect, freedom, happiness, and family security are examples of ___ that managers consider to be important.
a) moral values
b) socialistic values
c) terminal values
d) instrumental values
e) bureaucratic values
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
117) ___ are preferences regarding the means for accomplishing desired ends.
a) Ethical values
b) Utilitarian values
c) Terminal values
d) Instrumental values
e) Social values
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
118) Robin has decided that within five years Robin will hold at least a middle management position in the organization. This is an example of which of the following?
a) Ethical values
b) Utilitarian values
c) Terminal values
d) Instrumental values
e) Social values
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
119) Imagination, ambition, self-discipline, and honesty are examples of ___ that managers consider to be important.
a) instrumental values
b) moral values
c) socialistic values
d) terminal values
e) bureaucratic values
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
120) Which of the following is NOT one of the four views of ethical behaviour?
a) Utilitarian
b) Justice
c) Moral rights
d) Shared values
e) Individualism
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
121) The ___ view of ethical understanding and reasoning abilities considers ethical behaviour to be that which delivers the greatest good to the greatest number of people.
a) individualism
b) religious
c) justice
d) utilitarian
e) moral rights
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
122) Perry Eagles, the CEO of Gama Tech., shuts down offshore operations of the company during a period of economic recession. Even though this action was instrumental in keeping the company profitable it resulted in over 20% of the workforce losing their jobs. Which ethical viewpoint would Perry most likely use to justify this decision?
a) individualism
b) religious
c) justice
d) utilitarian
e) moral rights
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
123) The utilitarian view of ethical behaviour is that which
a) provides the greatest good for the greatest number of people.
b) respects and protects the individual’s fundamental rights.
c) ensures that people are treated impartially and fairly.
d) advances the pursuit of long-term self-interests.
e) ensures the resolution of personal moral dilemmas.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
124) Using results-oriented performance criteria to judge what is best for most people in a business organization is an application of which view of ethical behaviour?
a) the utilitarian view
b) the individualism view
c) the collectivism view
d) the moral-rights view
e) the justice view
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
125) The individualism view of ethical behaviour is based on the belief that one’s primary commitment is to the long-term advancement of self-interests. Lying and cheating for immediate gain are not tolerated by this ethical viewpoint because lying and cheating
a) are inherently harmful to a person’s psyche.
b) serve no one’s interest in the long run.
c) are against the law.
d) are contrary to all religious beliefs.
e) cause an unfair distribution of resources.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
126) In business practice, the ___ view of ethical understanding and reasoning abilities may result in greed and a tendency to “push the law to its outer limits.”
a) individualism
b) religious
c) justice
d) utilitarian
e) moral rights
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
127) According to the individualism view of ethical behaviour, society will be best off if
a) individuals make decisions based on the greater common good.
b) everyone works toward the betterment of society.
c) everybody lives by the letter of the law.
d) everyone acts in a way that maximizes their own happiness.
e) everyone follows a universal moral code of behaviour.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
128) The key concept of the individualism view of ethical behaviour is
a) assessing the implications of a decision in terms of its long-term personal consequences.
b) promoting honesty and integrity.
c) ensuring that people’s rights are protected and respected.
d) evaluating a decision on the basis of its impartiality and fairness.
e) ensuring that the greatest number of people benefit to the greatest extent possible.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
129) Which of the following is the assumption made in the individualism view of ethical behaviour?
a) It does not promote honesty or integrity in people.
b) People are self-regulating in the quest for long-term advantage for the self.
c) The outcome of an ethical decision does not affect the majority of the society.
d) Every person works in coordination with another to fulfill each other’s goals.
e) No individual can take advantage of the freedom allowed in this approach.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
130) The individualism view is supposed to promote ___ in business practice it may result in ___.
a) personal enrichment; organizational enrichment
b) honesty and integrity; pushing the law to its outer limits
c) narcissism; procedural justice
d) running roughshod over other people to achieve personal objectives; honesty and integrity
e) pushing the law to its outer limits; interactional justice
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
131) In the ___ view, ethical behaviour respects and protects fundamental rights.
a) individualism
b) justice
c) moral rights
d) utilitarian
e) humanitarian rights
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
132) The main emphasis of the moral-rights view of ethical behaviour is
a) assessing the implications of a decision in terms of its long-term personal consequences.
b) promoting honesty and integrity.
c) ensuring that people’s rights are protected and respected.
d) evaluating a decision on the basis of its impartiality and fairness.
e) ensuring that the greatest number of people benefit to the greatest extent possible.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
133) In contemporary organizations, the ___ concerns the protection of employees with respect to their rights to privacy, due process, free speech, free consent, health and safety, and freedom of conscience.
a) utilitarian view
b) individualism view
c) collectivism view
d) moral-rights view
e) justice view
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
134) Which of the following is a drawback of the moral-rights view of ethical behaviour?
a) It relies on the assessment of future outcomes that are often difficult to predict and are tough to measure accurately.
b) It presumes that individuals are self-regulating; however, not everyone has the same capacity or desire to control their behaviours.
c) It is possible for a few individuals to take advantage of the freedom allowed by this perspective and disrupt the degree of trust that exists within a business community.
d) It does not ensure that the outcomes associated with protecting individual rights are beneficial to the majority of society.
e) It places an emphasis on fairness and equity, both of which cannot be ensured simultaneously.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
135) The main emphasis of the justice view of ethical behaviour is
a) assessing the implications of a decision in terms of its long-term personal consequences.
b) promoting honesty and integrity.
c) ensuring that people’s rights are protected and respected.
d) evaluating a decision on the basis of its impartiality and fairness.
e) ensuring that the greatest number of people benefit to the greatest extent possible.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
136) Suppose that a professor’s main concern in grading term papers is to evaluate all papers and assign grades fairly and objectively in light of the requirements and grading scale contained in the course syllabus. From an ethics perspective, this is an example of the professor adopting which of the following views?
a) the utilitarian view
b) the individualism view
c) the collectivism view
d) the moral-rights view
e) the justice view
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
137) In doing performance appraisals for the employees, a manager faithfully adheres to the company’s established evaluation procedures for each employee. This manager is acting on the basis of the ______
a) distributive justice.
b) utilitarian view.
c) justice view.
d) individualism view.
e) procedural view.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
138) ___ justice involves the degree to which policies and rules are fairly applied to all individuals.
a) Procedural
b) Economic
c) Distributive
d) Commutative
e) Interactional
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
139) The concern that “a sexual harassment charge levied against a senior executive receive the same full hearing as one made against a first-level manager” is an example of the concept of ___ justice.
a) procedural
b) interactional
c) distributive
d) communicative
e) moral rights
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
140) The degree to which policies and rules are fairly administered in an organization is known as
a) distributive justice.
b) moral justice.
c) ethical management.
d) procedural justice.
e) equitable policy.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
141) Which of the following addresses the fair allocation of outcomes, without any communal or gender biases?
a) procedural justice
b) fundamental justice
c) distributive justice
d) commutative justice
e) interactional justice
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
142) The degree to which outcomes are allocated without regard to ethnicity, race, gender, age, or other individual differences criteria is the concept of
a) distributive justice.
b) moral justice.
c) ethical management.
d) procedural justice.
e) equitable policy.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
143) If a woman and a man have equivalent qualifications and experience and are given the same consideration for promotion, ___ is being applied.
a) distributive justice
b) moral justice
c) ethical management
d) procedural justice
e) equitable policy
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
144) Taylor, a bank officer, takes the time to fully explain to an applicant why they are being turned down for a loan. Taylor answers all of the applicant’s questions without being demeaning in any way. Taylor is reflecting the ethical concern of ___.
a) moral rights
b) distributive justice
c) interactional justice
d) utilitarianism
e) individualism
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
145) Interactional justice involves the
a) degree to which policies and rules are fairly applied to all individuals.
b) degree to which outcomes are allocated fairly among people and without respect to individual characteristics.
c) degree to which people treat one another with dignity and respect.
d) fairness of exchanges or transactions.
e) honesty and integrity of business dealings.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
146) Suave ZN, a franchisee outlet for Eco Motors, an electric car company, sells Chris Johnson an older model car. Suave ZN sells the older model without informing Chris of the newer, better models released by Eco Motors in the same price band. According to which justice dimension would Suave ZN conduct be considered unethical?
a) procedural
b) economic
c) distributive
d) commutative
e) interactional
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
147) An expatriate of Country A argues that the practice of giving corporate gifts is acceptable in another country as long as it is consistent with local laws and customs. In this scenario, the Country A expatriate is guided by ___.
a) ethnocentrism
b) moral relativism
c) ethical imperialism
d) cultural relativism
e) moral absolutism
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
148) A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of
a) cultural activism.
b) cultural relativism.
c) ethical imperialism.
d) cultural socialism.
e) ethical realism.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
149) ___ is an attempt to impose one’s ethical standards on other cultures.
a) Polycentrism
b) Moral relativism
c) Ethical imperialism
d) Cultural relativism
e) Moral absolutism
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
150) An executive who assumes that ethical standards should apply absolutely across cultures and national boundaries is operating under which cultural perspective?
a) cultural activism
b) cultural relativism
c) ethical universalism
d) cultural socialism
e) ethical realism
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
151) Critics charge that ___ is a form of ___, or the attempt to externally impose one’s ethical standards on others.
a) cultural relativism; cultural universalism
b) universalism; ethical imperialism
c) cultural relativism; ethical imperialism
d) ethical imperialism; cultural relativism
e) ethical imperialism; Romanesque law
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
152) According to Thomas Donaldson, the core values, or “hyper-norms” that should transcend cultural boundaries focus on
a) human dignity, basic rights, and good citizenship.
b) human dignity, acceptance, social responsibility.
c) human dignity, cultural tolerance, social responsibility.
d) human dignity, basic rights, stakeholder responsibility.
e) none of the above
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
153) According to Thomas Donaldson, the core values or “hyper-norms” that should transcend cultural boundaries focus on human dignity, basic rights, and ___.
a) cultural tolerance
b) social responsibility
c) acceptance
d) good citizenship
e) stewardship
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
154) Suppose that a manager denies a candidate a promotion because of the candidate’s race, religion, gender, age, or other criteria that are not relevant to the job. This manager is creating an ethical dilemma involving
a) discrimination.
b) sexual harassment.
c) conflicts of interest.
d) customer confidence.
e) organizational resources.
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
155) Jeff interviewed three candidates for the plant supervisor position. Sanjiv, who is 5 years away from retirement, was the best candidate. Jeff is caught in an ethical dilemma involving
a) conflict of interest.
b) sexual harassment.
c) discrimination.
d) customer confidence.
e) code of conduct.
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
156) If a manager makes a co-worker feel uncomfortable because of inappropriate comments or actions regarding sexuality, the manager is creating an ethical dilemma involving
a) discrimination.
b) sexual harassment.
c) conflicts of interest.
d) customer confidence.
e) organizational resources.
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
157) Ethical dilemmas in the form of ___ may occur where a manager takes a bribe or kickback or extraordinary gift in return for making a decision favourable to the gift giver.
a) discrimination
b) sexual harassment
c) conflicts of interest
d) customer confidence
e) organizational resources
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
158) Ethical dilemmas in the form of ___ may occur where a manager has privileged information regarding the activities of a customer and shares that information with another party.
a) discrimination
b) sexual harassment
c) conflicts of interest
d) customer confidence
e) organizational resources
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
159) Managers who use official stationery or company email accounts to communicate personal opinions or requests to community organizations are engaging in acts that may be considered to constitute an ethical dilemma regarding
a) discrimination.
b) sexual harassment.
c) conflicts of interest.
d) customer confidence.
e) organizational resources.
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
160) Charlie is a volunteer fundraiser for a charitable organization and has full access to the company’s email and telephone database. Charlie is considering using this information to potential donors for contributions to the charitable organization. Charlie is caught in an ethical dilemma involving
a) customer confidence.
b) ethics.
c) social responsibility.
d) organizational resources.
e) conflict of interest.
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
161) Which of the following is not a step that managers should follow for making ethical decisions?
a) Recognize the ethical dilemma.
b) Identify your options.
c) Model what others are doing.
d) Double-check your decisions by asking follow-up questions.
e) Take action.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
162) An important way for double-checking the ethics of a decision is to ask which one of the following questions?
a) How would I feel about this decision if it made a lot of money for the company?
b) How would I feel if I received a large bonus a result of making this decision?
c) How would I feel if this decision harmed someone?
d) How would I feel if a competitor lost business as a result of this decision?
e) How would I feel if my family found out about my decision?
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
163) In the checklist for dealing with ethical dilemmas, the textbook points to one step that is key to testing whether or not a decision may be ethical. That step is:
a) Recognize the ethical dilemma.
b) Get the facts.
c) Identify your options.
d) Test each option.
e) Double-check with the spotlight questions.
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
164) Which of the following is a spotlight question when dealing with ethical dilemmas?
a) What sort of trouble will I get into because of my decision?
b) Are there any legal consequences to my decision?
c) Who will be affected by my decision?
d) How will I feel if my family finds out about my decision?
e) How will my career be affected by my decision?
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
165) When faced with an ethical dilemma, spotlight questions are used to test possible decisions for
a) the risk of public disclosure.
b) potential harm to self.
c) the risk to job security.
d) potential harm to others.
e) possible legal implications.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
166) Managers with strong ___, ones that provide personal rules or strategies for value-based decision making, will act more consistently and confidently than those without.
a) religious affiliations
b) ethical frameworks
c) ethnocentric backgrounds
d) social-centred behaviour
e) self-centred behaviour
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
167) Which of the following is an example of an ethical dilemma?
a) Martha, who had filled in her personal details that she is a Canadian citizen, is hired as a receptionist despite some of her co-workers apprehension about her racial identity.
b) Wanda, an employee at a real estate firm, files a sexual harassment case against her manager despite his repeated apologies.
c) Steward, an engineer, gives his office laptop to his daughter as a birthday gift.
d) Vince, an tax auditor working for the Canada Revenue Agency, is tempted to take money from a taxpayer he is auditing in order to save a sick child even though he knows that he should not accept bribes.
e) Clara fires half of her employees so as to decrease the cost of inputs of her company.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
168) Which of the following, in correct order, are the levels of moral development identified by Lawrence Kohlberg?
a) Preconventional, conventional, postconventional, principle-centered.
b) Preconventional, postconventional, conventional, principle-centered.
c) Principle-centered, preconventional, conventional, postconventional.
d) Preconventional, conventional, postconventional.
e) conventional, preconventional, postconventional.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
169) In Kohlberg’s preconventional level of moral development, decisions
a) are made according to internal principles.
b) are likely to be based on following social norms.
c) made follow rules to help society run smoothly.
d) are likely to be directed toward achieving personal gain.
e) are consistent with universal principles.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
170) At the conventional level of moral development, behaviour is ___.
a) social-centred
b) peer-pressure driven
c) self-centred
d) principle-centred
e) punishment-driven
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
171) At the postconventional level of moral development, an individual is ___.
a) social-centred
b) peer-pressure oriented
c) self-centred
d) principle-centred
e) punishment-driven
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
172) Roger, Isaac, Irene, and Betty were the last students to leave their class after a lecture. They noticed that the instructor had left behind a copy of the midterm exam on the desk. “I’ll just take a quick look at it and ease some of my fears about the midterm. I won’t copy any of the questions or answer though.” thought Roger. However, Isaac wanted to look at the midterm to copy the answers. Isaac promised that if no one said anything he would be willing to share the copies. Irene and Betty exited without looking at the midterm because they believed it was wrong, even though they hadn’t studied and there was a high probability that would fail the midterm. Betty then went to the instructor’s office to let the instructor know the exam had been left in the classroom. Who was operating in Stage 2 of Kohlberg’s preconventional level of moral development?
a) Roger
b) Isaac
c) Both Roger and Isaac
d) Irene
e) Betty
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
173) Roger, Isaac, Irene, and Betty were the last students to leave their class after a lecture. They noticed that the instructor had left behind a copy of the midterm exam on the desk. “I’ll just take a quick look at it and ease some of my fears about the midterm. I won’t copy any of the questions or answer though.” thought Roger. However, Isaac wanted to look at the midterm to copy the answers. Isaac promised that if no one said anything he would be willing to share the copies. Irene and Betty exited without looking at the midterm because they believed it was wrong, even though they hadn’t studied and there was a high probability that would fail the midterm. Betty then went to the instructor’s office to let the instructor know the exam had been left in the classroom. Who was operating in Stage 4 of Kohlberg’s conventional level of moral development?
a) Roger
b) Isaac
c) Irene
d) Betty
e) Both Irene and Betty
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
174) Roger, Isaac, Irene, and Betty were the last students to leave their class after a lecture. They noticed that the instructor had left behind a copy of the midterm exam on the desk. “I’ll just take a quick look at it and ease some of my fears about the midterm. I won’t copy any of the questions or answer though.” thought Roger. However, Isaac wanted to look at the midterm to copy the answers. Isaac promised that if no one said anything he would be willing to share the copies. Irene and Betty exited without looking at the midterm because they believed it was wrong, even though they hadn’t studied and there was a high probability that would fail the midterm. Betty then went to the instructor’s office to let the instructor know the exam had been left in the classroom. At what level of Kohlberg’s levels of moral development were Irene and Betty operating at?
a) Stage 6, postconventional level
b) Stage 5, postconventional level
c) Stage 3, conventional level
d) Stage 1, preconventional level
e) Stage 4 conventional level
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
175) As described by Lawrence Kohlberg in the text, the phase in moral development that focuses on personal gain and avoiding punishment is the ___ phase.
a) post conventional
b) conventional
c) preconventional
d) social
e) personal
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
176) In this phase of moral development, the individual is strongly driven by core principles and personal beliefs. This is the stage where a strong ethics framework is evident and the individual can be willing to break with norms and conventions, even laws, to make decisions consistent with personal principles.
a) post conventional
b) conventional
c) preconventional
d) personal
e) social
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
177) When students on a university campus find cheating so commonplace that it becomes an accepted standard, you are dealing with an ethical issue in which context?
a) situational
b) personal
c) organizational
d) environmental
e) cultural
Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace.
Section Reference 3.1: Ethics in the workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
178) The behaviour of supervisors and the expectations of peers are ___ factors that influence ethical behaviour.
a) social
b) organization
c) person
d) corporate
e) environment
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
179) The Sarbanes-Oxley Act of 2002 makes it easier for corporate executives to be tried and sentenced to jail for ___.
a) sexual harassment
b) nepotism
c) financial misconduct
d) biodata fraud
e) misuse of organizational facilities
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
180) After doing something that might be considered unethical, a rationalizer says: “It’s not really illegal.” This expresses a mistaken belief that
a) one’s behaviour is acceptable, especially in ambiguous situations.
b) because someone can be found to benefit from the behaviour, it is also in the individual’s or the organization’s best interests.
c) the behaviour is justified and cannot be held wrong at any time.
d) the organization’s (on behalf of whom the individual acts) best interests stand above all others.
e) as long as people have acted in good faith, their behaviour is ethical.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
181) When rationalizers tell themselves that “no one will ever know about it,” they believe that
a) the behaviour is acceptable, especially in ambiguous situations.
b) because someone can be found to benefit from the behaviour, it is also in the individual’s or the organization’s best interests.
c) the behaviour is really “safe” and will never be found out or made public.
d) the organization’s (on behalf of whom the individual acts questionably) best interests stand above all others.
e) as long as people have acted in good faith their behaviour is ethical.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
182) When rationalizers proceed with a questionable action because of a mistaken belief that “the organization will stand behind me,” they believe that
a) the behaviour is acceptable, especially in ambiguous situations.
b) because someone can be found to benefit from the behaviour, it is also in the individual’s or the organization’s best interests.
c) the behaviour is really “safe” and will never be found out or made public.
d) the organization’s (on behalf of whom the individual acts questionably) best interests stand above all others.
e) as long as people have acted in good faith their behaviour is ethical.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
183) The text identifies different ways of dealing with the four rationalizations that are commonly used to justify unethical behaviour. Which of the following courses of action is not a recommended way for dealing with at least one of the four rationalizations?
a) When in doubt about a decision to be made or an action to be taken, don’t do it.
b) If other people and other companies are doing it, you are justified in doing it too.
c) Look beyond the short-term results to address longer-term implications.
d) Make sure everyone knows that wrongdoing will be punished whenever it is discovered.
e) Organizational loyalty should not stand above the law and social morality.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
184) On a recent expense report for a recent business trip, Bailey sought reimbursement for some personal entertainment expenses. Knowing that the company policy precluded such reimbursement, Bailey reported higher amounts for transportation fares and gratuities than was actually spent. Which of the following rationalizations most likely applies to Bailey’s actions?
a) It’s not really illegal.
b) It’s in everyone’s best interests.
c) No one will ever know about it.
d) My boss will cover for me.
e) none of the above
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
185) Which of the following rationalizations for unethical behaviour reflects the belief that one’s behaviour is acceptable, especially in ambiguous situations?
a) It’s not really illegal.
b) It’s in everyone’s best interests.
c) No one will ever know about it.
d) The organization will protect me.
e) Everybody does it.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
186) Which of the following rationalizations for unethical behaviour reflects the belief that because someone can be found to benefit from the behaviour, the behaviour is also in the organization’s best interests?
a) It’s not really illegal.
b) It’s in everyone’s best interests.
c) No one will ever know about it.
d) The organization will protect me.
e) Everybody does it.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
187) Which of the following rationalizations for unethical behaviour reflects the belief that a questionable behaviour is really “safe” and will never be discovered or made public?
a) It’s not really illegal.
b) It’s in everyone’s best interests.
c) No one will ever know about it.
d) The organization will protect me.
e) Everybody does it.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
188) Which of the following rationalizations for unethical behaviour reflects the belief that the organization’s best interests stand above all others?
a) It’s not really illegal.
b) It’s in everyone’s best interests.
c) No one will ever know about it.
d) The organization will protect me.
e) Everybody does it.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
189) Which of the following is not one of the six pillars of character as described in the textbook?
a) Trustworthiness
b) Citizenship
c) Respect
d) Credit worthiness
e) Fairness
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
190) Which of the following is not one of the characteristics of trustworthiness; one of the six pillars of character as described in the textbook?
a) Honesty
b) Integrity
c) Acceptance
d) Loyalty
e) Reliability
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
191) Which of the following is one of the six pillars of character as described in the textbook?
a) Honesty
b) Integrity
c) Acceptance
d) Loyalty
e) Trustworthiness
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
192) According to Archie Carroll, an ___ manager is defined as a manager who chooses to behave unethically.
a) amoral
b) apathetic
c) immoral
d) individualist
e) ethnocentric
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
193) According to Archie Carroll, an ___ manager unintentionally or unknowingly disregards the ethics of an act or a decision.
a) amoral
b) apathetic
c) immoral
d) individualist
e) ethnocentric
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
194) The CEO of Whoosh Airlines contacted the CEO of a competitor to discuss raising airfares on their competing money-losing routes. The government agency that regulates the industry alleges that this was an illegal attempt to monopolize airline routes. According to your textbook, the CEOs would be considered what type of manager?
a) corporate manager
b) immoral manager
c) amoral manager
d) moral manager
e) unethical manager
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
195) All of the following statements are accurate except
a) an amoral manager is one who fails to consider or disregards the ethical implications of his or her behaviour.
b) an immoral manager is one who makes a conscious decision to behave in an unethical manner.
c) a moral manager is one considers the ethical implications of his or her behaviour and actions.
d) ethical mindfulness is a state of awareness that causes a person to behave in an ethical manner from one situation to another.
e) in terms of ethics all managers are basically the same.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
196) All of the following statements are accurate except
a) moral managers are leaders who possess ethical mindfulness.
b) amoral and immoral leaders can be just as influential as moral leaders.
c) amoral and immoral leaders are less influential than moral leaders.
d) amoral and immoral leaders have a largely negative impact on the ethics centre of gravity.
e) moral leaders can shift the ethics centre of gravity by communicating ethical values and serving as ethics role models.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
197) Archie Carroll suggests that most managers act ___.
a) ethically
b) amorally
c) immorally
d) morally
e) unscrupulously
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
198) In Kohlberg’s terms, which of the following types of manager is at the postconventional level of moral development?
a) unethical
b) amoral
c) ethnocentric
d) moral
e) immoral
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
199) ___ is the state of enriched awareness that causes a person to behave ethically from one situation to the next.
a) Social entrepreneurship
b) Ethics mindfulness
c) Moral management
d) Code of ethics
e) Social responsibility
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
200) Ethics training refers to
a) structured programs to help participants understand the ethical aspects of decision making, and how to incorporate ethical standards into their daily lives.
b) teaching corporate outlines for formal corporate codes of ethics.
c) training on the laws under which “white collar” criminals are prosecuted.
d) learning about corporate guidelines for supplier conduct.
e) exposure to governmental regulations for defence contractors in the United States.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
201) A formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations susceptible to ethical dilemmas are referred to as the organization’s
a) code of ethics.
b) corporate social responsibility.
c) management guidelines.
d) employee mandate.
e) employee handbook.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
202) Which of the following is seen as a shortcoming of current corporate ethics training programs?
a) Scenarios such as client relationships and bribery are not dealt with.
b) Even the most stringent of training programs cannot guarantee ethical behaviour
c) The programs do not teach right from wrong because the assumption is individuals know this
d) The programs do not give individuals the moral courage to do what is right.
e) All of the above
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
203) Which of the following is the best way to instill ethical behaviour in an organization?
a) promoting rationalizations for unethical behaviour
b) promoting a strict legal code
c) conducting ethics training
d) conducting behavioural training
e) conducting physical training
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
204) Formal codes of ethics are usually concerned with expressing how employees may be expected to behave with respect to all the following except
a) customer-supplier relationships.
b) political contributions.
c) confidentiality of corporate information.
d) choice of friends and acquaintances.
e) responses to bribes and kickbacks.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
205) Codes of ethical conduct have several limitations. Which of the following is not one of these limitations?
a) Codes of ethical conduct cannot guarantee ethical conduct.
b) The value of an ethics code relies on the organization’s underlying human resource foundation.
c) Ethical codes are not useful is large, complex organizations.
d) Ethical codes are not replacements for hiring people of integrity.
e) Ethical codes cannot replace leadership that is committed to being positive role models for the rest of the organization’s members.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
206) A ___ is a formal statement of an organization’s values and ethical principles that set expectations for behaviour.
a) code of ethics
b) mission statement
c) code of conduct
d) legal code
e) value statement
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
207) A formal statement of an organization, for instance, “We support people through empowerment, providing a safe and caring workplace and providing opportunities for personal and professional growth” is an example of
a) ethics culture.
b) social responsibility.
c) sustainability.
d) code of ethics.
e) social strategies.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
208) ___ should act as ethical role models and set an ethical tone in their areas of responsibility.
a) Top management only
b) Middle management only
c) First-line or supervisory management only
d) Top and middle management levels only
e) All levels of management
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
209) Which of the following is a primary reason why employees fail to blow the whistle to report wrongdoings they observe at work?
a) a flexible and lenient chain of command
b) weak work group identities that discourage loyalty and self-censorship
c) presence of ethical leadership
d) the belief that no corrective action would be taken
e) the lack of any commitment to the organization
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
210) Which of the following is true of a whistleblower?
a) A whistleblower is the first to act unethically in an organization.
b) Whistleblowers unintentionally disregard the ethics of an act or a decision.
c) Whistleblowers are members of management who specifically look out for unethical behaviour among employees.
d) A whistleblower exposes the misdeeds of others in organizations.
e) Whistleblowers are members of law enforcement specifically trained to deal with financial misconduct.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
211) Which of the following is not a potential risk faced by people who act as whistleblowers?
a) impaired career progress
b) retaliatory discharge
c) being ostracized by peers
d) being generously rewarded for revealing misdeeds
e) character assassination
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
212) A strict chain of command, strong work group identities, and ambiguous priorities are
a) organizational barriers to whistle blowing.
b) essential components of moral quality circles.
c) mechanisms for resolving ethical dilemmas.
d) all of the above
e) none of the above
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
213) The persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance are referred to as
a) governing boards.
b) organizational stakeholders.
c) trustees.
d) role senders.
e) regulators.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
214) Major organizational stakeholders include all of the following except
a) employees and contractors who work for the organization.
b) providers of the organization’s human, information, material, and financial resources.
c) general economic conditions and political trends.
d) stockholders, investors, and creditors with claims on assets and profits of the organization.
e) local, state, and national governmental agencies that enforce laws and regulations.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
215) Stakeholder power
a) indicates the extent to which stakeholders need immediate attention.
b) refers to the managers’ ability to maximize profits.
c) refers to the shareholders’ ability to influence managers.
d) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
e) indicates the validity and legitimacy of a stakeholder’s interests in the organization.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
216) Demand legitimacy
a) indicates the extent to which stakeholders need immediate attention.
b) refers to the managers’ ability to maximize profits.
c) refers to the shareholders’ ability to influence managers.
d) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
e) indicates the validity and legitimacy of a stakeholder’s interest in the organization.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
217) Aubrey Louise, an important stakeholder at Carmichaels & Sons. Inc. requests a detailed report of the profit statement of the company when rumors are heard that the balance sheet for the past year was fabricated. Aubrey’s request is immediately granted as some of the higher officials had the same suspicions. Which of the following best explains the quick actions taken in this case?
a) issue urgency
b) corporate social responsibility
c) demand legitimacy
d) self-centred behaviour
e) organizational setting
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
218) Issue urgency
a) indicates the extent to which the stakeholder’s concerns need immediate attention.
b) refers to the managers’ ability to maximize profits.
c) refers to the shareholders’ ability to maximize profits.
d) refer to the capacity of the stakeholder to positively or negatively affect the stakes of the organization.
e) indicates the validity and legitimacy of a stakeholder’s interest in the organization.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
219) ___ describes the obligation of an organization to act in ways that serve both its own interests and the interests of society at large.
a) Sustainability
b) Corporate accountability
c) Environmental stewardship
d) Corporate social responsibility
e) Corporate citizenship
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
220) In a press release, a major fast food chain issues the statement: “Since 2007, we have reduced sodium in our soup by 30%.” This is an example of
a) ethics.
b) global issues.
c) corporate social responsibility.
d) social performance.
e) sustainability.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
221) Birds Unlimited has met its objective to achieve a 20% increase in profits over the previous year through the introduction of new products and services. The company has met its
a) social responsibility.
b) economic responsibility.
c) ethical standards.
d) social performance.
e) customer responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
222) ___ refers to an organization’s obligation to act in ways that serve its own interests as well as the interests of society at large.
a) A code of ethics
b) A moral code
c) A formal policy statement
d) Public accountability
e) Corporate social responsibility
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
223) Stewardship means taking personal responsibility to always respect and protect the interests of ___ at large.
a) stakeholders
b) shareholders
c) management
d) the environment
e) the organization
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
224) ___ can be described as acting in ways that ensure a better quality of life for all, now and in the future.
a) Sustainability
b) Corporate accountability
c) Environmental stewardship
d) Corporate social responsibility
e) Corporate citizenship
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
225) The ___ evaluates organizational performance on economic, social, and environmental criteria.
a) social denominator
b) corporate critical line
c) stewardship audit
d) global value audit
e) triple bottom line
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
226) The 3 P’s of organizational performance are
a) planning, process, and profit.
b) procurement, process, and profit.
c) procurement, processing, and planet.
d) place, people, and policy.
e) profit, people, and planet.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
227) The triple bottom line for assessing organizational performance evaluates how well organizations are doing on
a) economic, social, and environmental performance criteria.
b) industrial, market, and customer satisfaction criteria.
c) ecological, environmental, and financial criteria.
d) humanitarian, sociological, and research criteria.
e) geological, anthropological, and lean performance criteria.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
228) Which of the following leadership beliefs is not appropriate for guiding socially responsible organizational practices?
a) People do their best in a healthy work environment that allows for job involvement as well as a good balance between work and family life.
b) Organizations function best over the long run when located in healthy communities with high qualities of life.
c) Organizations realize performance gains and efficiencies by exploiting the natural environment.
d) Organizations must be managed and led for long-term success.
e) An organization’s reputation must be protected as a valuable asset.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
229) ___ of corporate social responsibility is the view that management’s only responsibility in running a business is to maximize profits.
a) The stockholder model
b) The shared value view
c) The corporate view
d) The classical view
e) The socio-economic view
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
230) According to the classical view of corporate social responsibility, the principal obligation of management should be to ___.
a) suppliers
b) owners
c) consumers
d) future generations
e) the state or local government
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
231) According to proponents of the classical view of corporate social responsibility, what drives businesses to make things like healthier foods and energy-efficient products?
a) the government
b) profitability
c) owners and shareholders
d) a sense of indebtedness to society
e) pressure from civil society
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
232) ___ of corporate social responsibility is the view which maintains that the organization must be concerned with the broader social welfare and not just with corporate profits.
a) The stockholder model
b) The shared value view
c) The stakeholder view
d) The classical view
e) The socio-economic view
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
233) The ___ view of corporate social responsibility is that business should focus on the broader welfare of the community and not just profits.
a) shared value
b) classical
c) post-modern
d) socio-economic
e) ethnocentric
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
234) Which of the following statements is in agreement with the socio-economic view of corporate social responsibility?
a) Financial improvement can be achieved by being socially responsible.
b) The primary responsibility of business is to maximize business profits.
c) By acting responsibly, businesses avoid government regulation.
d) Businesses must be concerned with the broader social concerns and not just with corporate profits.
e) Society is served best when businesses are allowed to maximize their profits.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
235) The ___ view of corporate social responsibility approaches business decisions with the understanding that economic and social progress are interconnected.
a) shared value
b) classical
c) post-modern
d) socio-economic
e) ethnocentric
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
236) The ___ refers to the situation in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions.
a) generous stakeholder
b) virtuous circle
c) just alliance
d) fair community
e) socio-economic parable
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
237) A company following the virtuous circle of corporate social responsibility will most likely
a) become an add-on initiative—funding activities like philanthropy, environmental preservation, and community projects.
b) pursue a narrow stakeholder perspective focused on maximizing short-term profits.
c) pursue its own interests in competitive settings and make products that are profitable.
d) put society and the environment ahead of shareholders and stakeholders.
e) integrate socially responsible behaviour into everyday business goals and activities for an improved financial performance.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
238) Which of the following is most likely to result in a virtuous circle?
a) Unicorn Educational Services makes anonymous donations to charities every year.
b) Holding Hands, a not-for-profit organization, provides free food and shelter to orphans.
c) Medix Technology funds frequent AIDS awareness programs held by a not-for-profit organization in the surrounding neighborhood.
d) Bubble Plastics incorporates environmentally friendly manufacturing techniques that also result in cost savings.
e) Fryt Inc. uses environmentally hazardous chemicals to reduce the cost of manufacturing its products and to maximize its profits.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
239) Arguments that corporations should engage in socially responsible behaviour include all the following except
a) social responsibility decreases the need for restrictive government regulation.
b) businesses have the resources and obligation to act in socially responsible ways.
c) socially responsible behaviour improves the public image of business.
d) pursuing socially responsible goals may dilute the purpose of the business.
e) long-run profits for the business may improve or even be dependent on its degree of social responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
240) A social responsibility audit is
a) a systematic assessment and reporting of an organization’s accomplishments in various areas of corporate social responsibility.
b) a public opinion survey regarding the social impact of a corporation’s actions.
c) an internal accounting audit requested by shareholders.
d) a systematic assessment of the corporation’s impact on its employees’ social lives.
e) a survey of employees regarding their social preferences.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
241) Which of the following does not reflect a common audit area for corporate social responsibility?
a) ecology and environmental quality
b) truth in lending and consumer protection
c) managing conflict
d) service to communities
e) employment practices
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
242) Castle & Co. focuses on using recycled paper as packing material. Though the firm incurs a higher cost of inputs due to this strategy, it continues to use the recycled papers thereby contributing to the betterment of the larger community. When a social responsibility audit is taken, on what side will the company’s performance rate?
a) compliance
b) negative
c) underrated
d) conviction
e) moderate
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
243) The text identifies several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it earns a profit through provision of goods and services desired by customers.
a) economic responsibility
b) legal responsibility
c) ethical responsibility
d) discretionary responsibility
e) stakeholder responsibility
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
244) There are several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it operates within the law and according to the requirements of various external regulations.
a) economic responsibility
b) legal responsibility
c) ethical responsibility
d) discretionary responsibility
e) stakeholder responsibility
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
245) There are several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it voluntarily conforms to legal as well as broader values and moral expectations of society.
a) economic responsibility
b) legal responsibility
c) ethical responsibility
d) discretionary responsibility
e) stakeholder responsibility
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
246) There are several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being.
a) economic responsibility
b) legal responsibility
c) ethical responsibility
d) discretionary responsibility
e) stakeholder responsibility
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
247) The highest level of social performance comes through the satisfaction of an organization’s
a) economic responsibility.
b) legal responsibility.
c) ethical responsibility.
d) discretionary responsibility.
e) stakeholder responsibility.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
248) A(n) ___ strategy tries to avoid and resist pressures for social responsibility.
a) minimalist
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
249) In the ___ strategy of corporate social responsibility, social demands lying outside the organization’s perceived self-interests are resisted.
a) minimalist
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
250) Strathum Tech Inc., a manufacturer of refrigerators, used ozone depleting CFCs in its products. It downplayed the significance of ozone depletion for years, claiming that CFCs do not cause any significant harm to the ozone layer. Which of the following strategies of corporate social responsibility did the company employ?
a) minimalist
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
251) Which strategy of corporate social responsibility meets only economic responsibilities?
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
252) Karlanium Inc. is a bottle manufacturing company. It is required by law to process its waste by-products before depositing it in the dumping grounds. Its social responsibility is limited to fulfilling this legal requirement. To which of the following categories does Karlanium belong?
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Reflective Thinking
253) A(n) ___ strategy does the minimum legal requirements to display social responsibility.
a) leadership
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
254) Piggybank is a finance company that offers small loans to individuals. Legal guidelines regarding small loans require the terms and conditions of payback be accessible to customers. The company complies with this rule by putting up a poster with terms and conditions in a back room of their office. Only customers explicitly wishing to see the terms and conditions are taken to the back room. What strategy of corporate social responsibility does the company follow?
a) leadership
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
255) A(n) ___ strategy accepts social responsibility and tries to satisfy society’s basic ethical expectations.
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
256) Which strategy of corporate social responsibility meets economic, legal, and ethical responsibilities but not discretionary responsibilities?
a) resistive
b) obstructionist
c) diversification
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
257) A(n) ___ strategy actively pursues social responsibility by taking discretionary actions to make things better in the future.
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
258) Which corporate social responsibility strategy meets economic, legal, ethical, and discretionary responsibilities?
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
259) An organization that is following a(n) ___ social responsibility strategy would both take preventive action to avoid adverse social impacts from company activities and take a leadership role in identifying and responding to emerging social issues.
a) obstructionist
b) defensive
c) accommodative
d) proactive
e) ethical
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
260) Shine Clean, a laundry detergent manufacturer, employs unskilled locals and trains them. It manufactures its detergent using organic products. It uses biodegradable packaging that is sourced locally, and disposes its wastes using environmentally friendly methods. It follows the advice of its research team and takes discretionary actions in the hopes of making things better in the future. Shine Clean is pursuing the ___ strategy of corporate social responsibility.
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
261) Which of the following corporate social responsibility strategies addresses the most number of responsibilities?
a) resistive
b) obstructionist
c) defensive
d) accommodative
e) proactive
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
262) Businesses are required by law to have boards of directors that are elected by ___ to represent their interests.
a) customers
b) government officials
c) shareholders
d) union leaders
e) all employees
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
263) When organizations decide to maximize profits and serve the greater good, this is referred to as ____________.
a) Corporate Knights
b) White Knights
c) Corporate Social Responsibility
d) Social Entrepreneurship
e) Corporate Governance
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
264) ___ is the active oversight of top management by a board of directors.
a) Ethical administration
b) Executive leadership
c) Corporate governance
d) Final authority
e) Command leadership
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
265) Corporate governance typically involves all the following except
a) hiring and firing the chief executive officer (CEO).
b) assessing strategy.
c) verifying financial records.
d) approving product specifications and production methods.
e) compensating the chief executive officer (CEO).
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
266) ___ is making sure day-to-day performance is achieved ethically and in socially responsible manner.
a) Corporate governance
b) Social leadership
c) Ethical self-governance
d) Stockholder control
e) Command leadership
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
267) The management challenge in contemporary organizations is best summarized in which of the following statements?
a) Managers must simultaneously maintain high-performance standards as well as ethical and socially responsible operations.
b) Every manager must strive to achieve organizational goals even if it compromises his/her values.
c) Economic performance is the most important objective that managers must achieve.
d) Maintaining ethical standards and promoting social responsibility are the most important objectives managers must achieve.
e) Management in today’s business environment should be approached in essentially the same way that it was in the past.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
268) Glendelwalt is a finance corporation that believes in working for the betterment of the present as well as the future generations. They promote the principle of stewardship and sustainability. Which of the following actions should it implement so as to promote their ideals?
a) Hire more workers.
b) Remodel and renovate their building.
c) Start a “save water and energy” program.
d) Increase the salary of the workers.
e) Improve their customer service.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
Question type: Essay
269) What are instrumental and terminal values? Give examples of each.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
270) Identify four alternative views of ethical behaviour, briefly describe the main emphasis of each view, and give a specific example in relation to each organization for each view.
Utilitarian view – ethical behaviour that delivers the greatest good to greatest number of people.
Individualism view – ethical behaviour that best serves long-term self-interests.
Moral-rights view – ethical behaviour that respects the fundamental rights of all people.
Justice view – ethical behaviour that is impartial and fair in treating people according to guiding rules and standards. Specific examples will vary.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
271) The business ethics of your partner in North America, your supplier in India, and your customer in Europe, may vary because they have their root in the culture of their home society. What are some of the key ethical issues facing companies doing business in a global context? What is your view of how well businesses have done in facing and addressing those ethical issues?
The idea of variation in business ethics formally known as “cultural relativism” states that the “right way to act”—what is “good behaviour”—is nothing more than behaviour that is socially approved by the majority within a culture. What some countries, cultures and governments perceive as good and ethical business practices meant to boost the competitive advantage of their home country corporations are often seen as just the opposite—bordering on the unethical and providing an unfair advantage over competitors.
Other potential ethical questions that could be mentioned include: global supply chain, product quality, labour rights and standards, corruption, bribery, extortion, safety standards, concerns about environmental degradation, crime, lack of legal enforcement or clear property rights, women’s rights, children’s rights. Students will have different views on how businesses have managed in light of these issues.
Multinational companies are gaining experience in managing these complex ethical issues in a complex, globalized world. The expanding interest in business ethics and the development of international guidelines to guide business behaviour across cultural boundaries will help bring more consistency in ethical standards and contribute to making the international business experience a richer and more satisfying one for all concerned.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Analysis
Difficulty: Medium
AACSB: Reflective Thinking
272) Describe the utilitarian view of ethical behaviour. Provide at least one real world example of this view.
An example could include the automotive industry, which recently underwent plant shutdowns and massive layoffs in order to reduce costs.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Reflective Thinking
273) List and describe the four dimensions of justice issues in organizations. Illustrate your answer with an example for each dimension.
Procedural justice involves the degree to which policies and rules are fairly applied to all individuals. For example, does a sexual harassment charge levied against a senior executive receive the same full hearing as one made against a first-level supervisor? Does a woman with the same qualifications and experience as a man receive equal treatment under a no-discrimination policy for hiring or promotion? Distributive justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria. For example, are members of minority groups adequately or proportionately represented in senior management positions? Do universities allocate a proportionate share of athletic scholarships to males and females? Interactional justice involves the degree to which people treat one another with dignity and respect. For example, does a bank loan officer take the time to fully explain to an applicant why he or she was turned down for a loan? Commutative justice focuses on the fairness of exchanges or transactions. According to this principle, the exchange is deemed to be fair if all parties enter into it freely, have access to relevant and available information, and obtain some type of benefit from the transaction.
Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour.
Section Reference 3.1: Ethics
Bloom’s: Application
Difficulty: Medium
AACSB: Reflective Thinking
274) Define an ethical dilemma? Describe some of the possible sources of ethical dilemmas.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
275) Describe the different levels of L. Kohlberg’s moral development. Include in your identify the stages of each level and provide one example of each level.
In Kohlberg’s preconventional level of moral development the individual is self-centred. Moral thinking is largely limited to issues of punishment, obedience, and personal interest. Decisions made in the preconventional stages of moral development are likely to be directed toward achieving personal gain (Stage 2) or avoiding punishment (Stage 1) and are based on obedience to rules.
In the conventional level of moral development, the individual is more social-centred. Decisions made in these stages are likely to be based on following social norms, meeting the expectations of group memberships, (Stage 3) and living up to agreed-upon role obligations. Rules are followed in order to help society as a whole run smoothly (Stage 4).
At the postconventional level of moral development, the individual is strongly principle-centred. This is where a strong ethics framework is evident. The individual is willing to break with norms and conventions, even laws, to make decisions consistent with universal principles. Stage 5 of this level is where the individual will live up to societal agreement regarding individual rights and Stage 6 is where the individual will act according to their own internal principles. Kohlberg believes that only a small percentage of people progress to the postconventional stages. Examples will vary by student.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
276) What is ethics intensity? Discuss the conditions that raise the ethics intensity of a situation.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Solution:
277) Taylor works for Vision, a billboard advertising agency, which hires billboards from owners on behalf of clients. Taylor routinely accepts pay-offs from billboard owners in exchange for referring their billboards to clients. This behaviour could result in his dismissal from Vision, if found out. Of the rationalization arguments presented in your textbook, which is Taylor most likely to use to rationalize this act? Support your answer.
The first statement could be used as Taylor could argue that it is in Vision’s interest as the company gets more customers and therefore more revenue. This also keeps the employees working as well. The client is also benefiting as their signs are being rented out.
The second statement could be used by Taylor, assuming that top management has no problem with the action – that top management is basically immoral.
Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace
Section Reference 3.1: Ethics in the Workplace
Bloom’s: Application
Difficulty: Medium
AACSB: Reflective Thinking
278) What are codes of ethics? What ethical issues do they address?
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
279) Discuss the ways in which high ethical standards may be maintained in organizations.
Ethics training refers to structured programs that help participants understand the ethical aspects of decision making, and help people incorporate high ethical standards into their daily behaviours. Ethics training helps people deal with ethical issues while under pressure and to avoid the common rationalizations for unethical behaviour.
Whistleblowers are people who expose the misdeeds of others in organizations in order to preserve ethical standards and protect against wasteful, harmful, or illegal acts. Whistleblowers need to be protected because of the risk of managerial/organizational retaliation and career damage.
Being an ethical role model applies to managers throughout the organization. The behaviour of top managers can either encourage or discourage unethical behaviour in others at lower levels of the organization. Although top managers have a special responsibility for setting the ethical tone of an organization, all managers can influence the ethical behaviour of the people who work for and with them.
Codes of ethical conduct are official written guidelines on how to behave in situations susceptible to ethical dilemmas. Most ethical codes identify expected behaviour in terms of general organizational citizenship, the avoidance of illegal or improper acts in one’s work, and good relationships with customers.
Learning Objective 3.3: Describe approaches to maintaining high ethical standards.
Section Reference 3.3: Maintaining High Ethical Standards
Bloom’s: Analysis
Difficulty: Medium
AACSB: Reflective Thinking
280) Corporations that want to be regarded as socially responsible are establishing corporate governance initiatives and practices that encourage sustainability. Define sustainability and discuss whether companies can achieve a higher degree of ethics as a result of corporate sustainability initiatives.
Cost reduction, resource preservation, legislative compliance, reputation and right initiatives are some of the reasons why businesses focus on sustainability programs.
The drive for continuous improvement in products and markets has made organizations environmentally aware and become a part of an ever-increasing standard of business ethics. As companies drive to increase shareholder values through profits and margins, internal and external business sustainability has become the new doctrine for success. The mantra of this new management culture is one that equates business growth with business sustainability while raising the plateau for greater and higher ethical standards. When a company knows what it really stands for, and when this knowledge guides company decisions about what to do and what not to do in most situations, then the problem of ethical compliance largely fades away. Owing to their wholehearted approach to ethics, these companies are steps ahead of competitors in their categories.
In many ways, businesses have significantly shifted away from a traditional model which suggested that addressing environmental concerns is a distraction from core functions. In fact, some businesses are finding that well managed social responsibility programs and corporate sustainability initiatives can be a driver for competitive advantage and new business opportunities.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Analysis
Difficulty: Medium
AACSB: Reflective Thinking
281) What is corporate social responsibility? In your opinion, should businesses be socially responsible? Support your answer with appropriate reasons.
In the 21st century economy, it is hard to argue against corporate social responsibility. One way to approach this is by exploring the linkage between organizations’ corporate social responsibility and their financial performance. In the short term, financial success might be achieved by ignoring social responsibility. In the long term, however, proper attention must be given to social responsibility in order for the company to survive and prosper. Indeed, in today’s world, the public at large expects businesses and other organizations to act with genuine social responsibility. Additionally, increasing empirical evidence indicates that high performance in social responsibility can be associated with strong financial performance and, at worst, has no adverse financial impact. Moreover, recent evidence suggests the existence of a virtuous circle in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions.
Another approach for supporting the contention that businesses should be socially responsible draws upon the four criteria for evaluating corporate social performance. These criteria, which can be arranged in a hierarchy of impact, are the following:
- the organization’s economic responsibility, which is met when it earns a profit through the provision of goods and services desired by customers.
- the organization’s legal responsibility, which is fulfilled when it operates within the law and according to the requirements of various external regulations.
- the organization’s ethical responsibility, which is met when its actions voluntarily conform to both legal expectations and the broader values and moral expectations of society.
- the organization’s discretionary responsibility, which involves the organization’s voluntary movement beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole.
The argument can be made that businesses are more likely to survive and succeed over the long term when they fulfill a responsibility that has greater impact. Thus, a higher probability of survival and success would occur by fulfilling the legal responsibility than by just fulfilling the economic responsibility. Likewise, fulfilling the ethical responsibility likely produces still further increases in the probability of business success and survival. Fulfilling the discretionary responsibility should provide a business with the greatest chance of survival and success.
Learning Objective 3.4: Explain social responsibility and corporate governance.
Section Reference 3.4: Social Responsibility
Bloom’s: Analysis
Difficulty: Medium
AACSB: Reflective Thinking
Solution:
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Management Canada 5e | Complete Test Bank
By John R. Schermerhorn Jr