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Chapter 5 Ethics and Social Responsibility True/False Questions 1. Timberland’s focus on philanthropy costs the company more than $2 million in sales each year. Answer: True 2. Level: 1 Page: 156 Type: F Level: 2 Page: 157 Type: F Level: 1 Page: 157 Type: F Level: 2 Page: 157 Type: F An individual who must make an ethical choice in an organization is called the moral agent. Answer: True 8. Type: F An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences. Answer: True 7. Page: 156 If something is not illegal, it must be ethical. Answer: False 6. Level: 2 Free choice lies between the domains of codified law and ethics. Answer: False 5. Type: F Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or groups. Answer: True 4. Page: 155 Enron, in mid-2000 was America’s 7th largest corporation. Answer: True 3. Level: 2 Level: 1 Page: 157 Type: F Most ethical dilemmas involve a conflict between the needs of the part and the whole. Chapter Five * Ethics and Social Responsibility Test Bank * Page 124 Answer: True 9. Type: F Level: 2 Page: 159 Type: F Level: 2 Page: 159 Type: F Level: 1 Page: 159 Type: F Level: 2 Page: 160 Type: F Level: 3 Page: 160 Type: F Rights that should be considered in the moral rights approach include the right of free consent, the right to privacy, and the right of freedom of conscience. Answer: True 17. Page: 159 Individualism is popular in the highly organized society of today because it supports immediate self-gain. Answer: False 16. Level: 2 In the individualism approach, the right of free speech must be considered. Answer: False 15. Type: F The ethical concept that acts are moral when they promote the individual's best long term interests, which ultimately leads to the greater good, is known as the moral rights approach. Answer: False 14. Page: 159 Monitoring the Internet to maintain the company’s ethical climate and workplace productivity could be considered part of an individualistic approach. Answer: False 13. Level: 2 The basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco consumption on the job is called the utilitarian ethic. Answer: True 12. Type: F Objective dualism is the ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people. Answer: False 11. Page: 159 Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-making. Answer: False 10. Level: 2 Level: 2 Page: 160 Type: F Procedural justice requires that different treatment of people not be based on arbitrary characteristics. Answer: False Level: 1 Page: 160 Type: F Chapter Five * Ethics and Social Responsibility Test Bank * Page 125 18. The justice approach is closest to the thinking underlying the domain of free choice. Answer: False 19. Type: F Level: 1 Page: 161 Type: F Level: 1 Page: 161 Type: F Level: 2 Page: 161 Type: F Level: 1 Page: 161 Type: F Level: 2 Page: 162 Type: F According to your text, approximately 20% of American adults ever reach the postconventional level of moral development. Answer: True 27. Page: 161 The majority of managers operate at the preconventional level of personal moral development. Answer: False 26. Level: 2 Principled level of moral development is also referred to as the postconventional level. Answer: True 25. Type: F An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law. Answer: False 24. Page: 161 The concept that individuals should be compensated for the cost of their injuries by the party responsible, and also that individuals should not be held responsible for matters over which they have no control, is considered procedural justice. Answer: True 23. Level: 3 At the principled level, individuals are concerned with external rewards and punishments. Answer: False 22. Type: F Individuals, at the preconvention level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. Answer: True 21. Page: 161 Most of the laws guiding human resource management are based on the individualism approach. Answer: False 20. Level: 2 Level: 3 Page: 162 Type: F The great majority of managers operate at level two, the conventional level. Chapter Five * Ethics and Social Responsibility Test Bank * Page 126 Answer: True 28. Level: 1 Page: 166 Type: F Level: 1 Page: 166 Type: F Level: 3 Page: 167 Type: F Level: 1 Page: 167 Type: F Level: 1 Page: 167 Type: F Level: 2 Page: 169 Type: F Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility can evaluate corporate social performance. Answer: True 37. Type: F When Earth Day was first celebrated in 1980, environmentalists were considered by most business leaders to be an extremist fringe group. Answer: False 36. Page: 165 Important stakeholders in corporations include the government and the community. Answer: True 35. Level: 2 Special interest groups include trade associations, political action committees and consumerists. Answer: True 34. Type: F All stockholders of an organization are its stakeholders but not all stakeholders are its stockholders. Answer: True 33. Page: 163-164 A stakeholder is any group within or outside the organization that has a stake in the organization's performance. Answer: True 32. Level: 2 Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization. Answer: True 31. Type: F The only aspect of an organization that influences ethics is culture. Answer: False 30. Page: 162 Women's sense of integrity seems to be entwined with an ethic of care; hence, they may be ideally suited for the servant leadership needed in today's organizations. Answer: True 29. Level: 2 Level: 2 Page: 171 Type: F Ethical behavior occurs when decisions enable an individual or company to gain at the Chapter Five * Ethics and Social Responsibility Test Bank * Page 127 expense of society. Answer: False 38. Level: 1 Page: 172 Type: F A formal statement of the organization's values regarding moral principles and governing its response to social values is called a code of ethics. Answer: True Level: 1 Page: 176 Type: F Multiple Choice Questions 1. ______ refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong. a. b. c. d. e. Social responsibility Free domain Ethics Codified law Discretionary responsibility Answer: c 2. Page: 156 Type: F Ethics deals with values that are a part of corporate culture and shapes decisions concerning social responsibility with respect to the environment. a. b. c. d. e. internal/external external/external internal/internal external/internal none of the above Answer: a 3. Level: 1 Level: 2 Page: 156 Type: F The decision to produce a new product by Osh Kosh is in the a. b. c. d. e. domain of codified law. domain of free choice. domain of ethics. domain of compensatory justice. domain of social responsibility. Answer: b Level: 2 Page: 157 Type: A Chapter Five * Ethics and Social Responsibility Test Bank * Page 128 4. The decision by the CSX to downsize and reduce its labor force is in the a. b. c. d. e. domain of codified law. domain of free choice. domain of ethics. social responsibility. none of the above. Answer: b 5. Level: 2 Page: 157 Type: F A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text? a. b. c. d. e. The ethical domain The domain of free choice The legal domain The obstructive category The protective domain Answer: a Level: 3 Page: 157 Type: A A(n) ______ is the individual who must make an ethical choice in an organization a. b. c. d. e. the symbolic leader an obstructive manager the defensive individual the moral agent an authoritarian manager Answer: d 8. Type: A enforceable norms and standards. oneself. laws prescribed by the legal system. unenforceable norms and standards. the organization. Answer: d 7. Page: 157 In the domain of ethical behavior, obedience is to a. b. c. d. e. 6. Level: 2 Level: 1 Page: 157 Type: F Carol is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Carol must decide whether or not to fire this employee. In this role, Carol is acting as Chapter Five * Ethics and Social Responsibility Test Bank * Page 129 a. b. c. d. e. a moral agent. an ethical theorist. a symbolic leader. an authoritarian leader. an obstructive manager. Answer: a 9. Level: 2 Page: 157 Type: F A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered a. b. c. d. e. a moral agent. a social responsibility. an ethical dilemma. an ethical standard. discretionary responsibility. Answer: c Level: 2 Page: 157 Type: F A normative approach to ethical decision making a. b. c. d. e. reduces ethical dilemmas to easy-to-understand formulas. uses various approaches to describe guiding values for decisions. states that everyone must use their employer's value system at work. dictates only one way to choose to resolve dilemmas. none of the above. Answer: b 12. Type: A Domain of codified law Domain of ethics Domain of free choice Discretionary responsibility Domain of symbolism Answer: b 11. Page: 157 The assumption that "If it's not illegal, it must be ethical," ignores which of the following? a. b. c. d. e. 10. Level: 2 Level: 2 Page: 159 Type: F The approach is the ethical concept that moral behaviors produce the greatest good for the greatest number. a. defensive Chapter Five * Ethics and Social Responsibility Test Bank * Page 130 b. c. d. e. justice utilitarian individualism moral-rights Answer: c 13. Level: 3 Page: 159 Type: A Grant is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the a. b. c. d. e. utilitarian approach. individualism approach. moral-justice approach. justice approach. soft-line managerial approach. Answer: a Level: 2 Page: 159 Type: A Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job, such as alcohol and tobacco consumption? a. b. c. d. e. Justice approach Utilitarian approach Individualism approach Moral-justice approach Discretionary responsibility Answer: b 16. Type: F utilitarian approach. individualism approach. moral-justice approach. justice approach. illegal approach. Answer: a 15. Page: 159 Ritchie’s Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the a. b. c. d. e. 14. Level: 1 Level: 2 Page: 159 Type: F The ethic was the basis for the state of Oregon's decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures. Chapter Five * Ethics and Social Responsibility Test Bank * Page 131 a. b. c. d. e. 17. justice moral-rights obstructive individualism utilitarian Answer: e Level: 2 Page: 159 Type: F An example of ______ is when everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest. a. b. c. d. e. utilitarian approach individualism approach moral-justice approach justice approach social responsibility Answer: b 18. d. e. Type: F an example of the utilitarian approach to ethical behavior. representative of the moral-justice approach to moral decision making. an example of the values that guide the individualism approach to ethical behavior. silly and outdated. an example of the justice approach to ethical behavior. Answer: c Level: 2 Page: 160 Type: F ______ is NOT a normative ethics approach? a. b. c. d. e. Utilitarian approach Individualism approach Social responsibility approach Moral-rights approach All of the above are normative approaches as described in the text. Answer: c 20. Page: 159-160 The golden rule "do unto others as they would do unto you" is a. b. c. 19. Level: 2 Level: 2 Page: 159-160 Type: F Human beings have fundamental rights and liberties that cannot be taken away by another individual's decision. This ethical decision making approach is known as the a. b. c. utilitarian approach. individualism approach. moral-rights approach. Chapter Five * Ethics and Social Responsibility Test Bank * Page 132 d. e. dualism approach. None of the above. Answer: c 21. Level: 1 Page: 160 Type: F Which of the following is NOT one of the moral rights that could be considered during decision-making? a. b. c. d. e. The right to free consent The right to invade privacy The right to free speech The right of freedom of conscience The right to life and safety Answer: b Level: 2 Page: 160 Type: F The concept that different treatment of people should not be based on arbitrary characteristics is referred to as a. b. c. d. e. procedural justice. compensatory justice. distributive justice. organizational justice. moral-justice. Answer: c 24. Type: F Individualism approach Justice approach Utilitarian approach Moral-rights approach Discretionary responsibility approach Answer: d 23. Page: 160 Which of these refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them? a. b. c. d. e. 22. Level: 2 Level: 1 Page: 160 Type: F Individualism is most closely related to a. b. c. d. e. social responsibility. free choice. economic responsibility. codified law. togetherness. Chapter Five * Ethics and Social Responsibility Test Bank * Page 133 Answer: b 25. Level: 2 Page: 160 Type: F Sexual harassment is unethical because it violates an important part of which approach to ethical behavior? a. b. c. d. e. The utilitarian approach The individualism approach The justice approach The moral-rights approach The defensive approach Answer: d Level: 3 Page: 160 Type: F The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the a. b. c. d. e. moral-rights approach. individualism approach. utilitarian approach. justice approach. discretionary responsibility Answer: d 28. Type: F Moral-rights approach Individualism approach Utilitarian approach Justice approach Dual-economic approach Answer: a 27. Page: 160 Which approach to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech? a. b. c. d. e. 26. Level: 2 Level: 1 Page: 160 Type: F The moral rights approach that deals with individuals refraining from carrying out any order that violates their moral or religious norms is the a. b. c. d. e. right of free consent. right to privacy. right of freedom of conscience. right of free speech. right of due process. Answer: c Level: 2 Page: 160 Type: F Chapter Five * Ethics and Social Responsibility Test Bank * Page 134 29. Sexual harassment is unethical because it violates the a. b. c. d. e. right of free consent. right to privacy. right of freedom of conscience. right of free speech. right of due process. Answer: c 30. Level: 1 Page: 160-161 Type: F Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on a. b. c. d. e. the procedural justice approach. the utilitarian approach. the individual approach. the defensive approach. the free-choice approach. Answer: a Level: 2 Page: 161 Type: A Which of these refers to procedural justice? a. b. c. d. e. The concept that different treatment of people should not be based on arbitrary characteristics The concept that rules should be clearly stated and consistently and impartially enforced The concept that individuals should be compensated for the cost of their injuries by the party responsible The concept that people should be treated differently None of the above Answer: b 33. Type: F compensatory justice. distributive justice. procedural justice. obstructive justice. all of the above. Answer: d 32. Page: 160 All of these are of concern to managers, under the justice approach, EXCEPT a. b. c. d. e. 31. Level: 2 Level: 1 Page: 161 Type: F The concept that the party responsible should compensate individuals for the cost of their Chapter Five * Ethics and Social Responsibility Test Bank * Page 135 injuries is referred to as a. b. c. d. e. distributive justice. injury justice. procedural justice. organizational justice. compensatory justice. Answer: e 34. is the closest to the justice approach. Level: 2 Page: 161 Type: F Most of the laws guiding human resource management are based on the a. b. c. d. e. utilitarian approach. moral-rights approach. individualism approach. justice approach. collectivism approach. Answer: d Level: 3 Page: 161 Type: F Which of these is true about the ethical decisions made by individuals working in organizations? a. b. c. d. e. They are based only on the individual's integrity. They are influenced by a combination of personal values and company culture. They utilize only that individual's personal needs and family influences. They are made by evaluating the organization's best interest. They are dictated by law. Answer: b 37. Type: F social responsibility free choice law discretionary responsibility ethics Answer: c 36. Page: 161 The thinking underlying the domain of a. b. c. d. e. 35. Level: 1 Level: 2 Page: 161 Type: F In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action? a. b. Preconventional Conventional Chapter Five * Ethics and Social Responsibility Test Bank * Page 136 c. d. e. Principled Discretionary None of the above Answer: a 38. Level: 2 Page: 161 Type: F The preconventional stage of moral development is best illustrated by which of these? a. b. c. d. e. Everybody else is doing it, so it must be okay. What would my boss think if I did this? I know this is not right, and I will not do it, even if everyone else is. What am I going to get from making this decision? All of the above Answer: d Level: 3 Page: 161 Type: A The conventional stage of moral development is best described by which of the following statements? a. b. c. d. e. I won't do that because the boss will be upset with me. Everybody else is doing it, so it must be okay. I know this is not right, and I will not do it, even if everyone else is. What am I going to get from making this decision? All of the above Answer: b 41. Type: F Preconventional Conventional Discretionary Principled Traditional Answer: b 40. Page: 161 Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development? a. b. c. d. e. 39. Level: 2 Level: 2 Page: 161 Type: A The ______ leadership style matches with the preconventional level of personal moral development. a. b. c. d. e. autocratic team oriented servant leadership guiding/encouraging transforming Chapter Five * Ethics and Social Responsibility Test Bank * Page 137 Answer: a 42. Level: 3 Page: 161 Type: F leadership style matches with the conventional level of personal moral development. a. b. c. d. e. Autocratic Coercive Transforming Team oriented Servant Answer: d 43. Type: F Work group collaboration Task accomplishment Empowered employees Full participation Transforming Answer: b Level: 3 Page: 161 Type: F Which of these employee behaviors matches with the conventional level of personal moral development? a. b. c. d. e. Task accomplishment Empowered employees Work group collaboration Full participation Act in own interest Answer: c 45. Page: 161 Which of the following employee behaviors matches with the preconventional level of personal moral development? a. b. c. d. e. 44. Level: 3 Level: 3 Page: 161 Type: F Which of the following is NOT included in the model of personal moral development described in your text? a. b. c. d. e. Preconventional level Conventional level Principled level Postconventional level All of the above are included in the model Answer: e Level: 2 Page: 161 Type: F Chapter Five * Ethics and Social Responsibility Test Bank * Page 138 46. The ______ stage is the stage of personal moral development in which an individual develops an internal set of standards and values. a. b. c. d. e. preconventional conventional principled discretionary social Answer: c 47. Level: 2 Page: 161-162 Type: F Which leadership style matches with the postconventional level of personal moral development? a. b. c. d. e. Team oriented Autocratic Guiding/encouraging Coercive Servant leadership Answer: e Level: 3 Page: 162 Type: F Which of these employee behaviors matches with the postconventional level of personal moral development? a. b. c. d. e. Empowered employees, full participation Task accomplishment Act in own interest Work group collaboration Autocratic Answer: a 50. Type: F are in the preconventional level of moral development. are in the conventional level of moral development. are in the principled level of moral development. do not care what people think of them. none of the above. Answer: c 49. Page: 161 People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others a. b. c. d. e. 48. Level: 2 Level: 3 Page: 162 Type: F The great majority of managers operate at the Chapter Five * Ethics and Social Responsibility Test Bank * Page 139 a. b. c. d. e. 51. preconventional level. principled level. conventional level. postconventional level. autocratic level. Answer: c Level: 2 Only about development. percent of American adults reach the level-three stage of moral a. b. c. d. e. Page: 162 Type: F preconventional autocratic postconventional conventional transformative Answer: d Level: 2 Page: 162 Type: F American managers working in different cultures need __________ and __________ when faced with difficult situations. a. b. c. d. e. sensitivity, training diligence, cross-cultural management training, strong goals sensitivity, openness openness, cross-cultural management Answer: d 54. Level: 3 Regarding the levels of personal moral development, the majority of managers operate at the ______ level. a. b. c. d. e. 53. Type: F two four eleven fifteen twenty Answer: e 52. Page: 162 Level: 2 Page: 164 Type: F Ethical standards can be affirmed and communicated through __________ and __________. a. ceremonies, public awards Chapter Five * Ethics and Social Responsibility Test Bank * Page 140 b. c. d. e. management direction, public awards management direction, employee empowerment employee empowerment, ceremonies ceremonies, management direction Answer: a 55. Level: 2 Page: 165 Type: F The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as a. b. c. d. e. organizational responsibility. social responsibility. discretionary responsibility. economic responsibility. none of the above. Answer: b Level: 1 Page: 166 Type: F Which of these is true about the policy a bank adopts toward its investing of depositor's money? a. b. c. d. e. It is an expression of its philosophy of social responsibility. It is important only to the community. It has no ethical implications. It would represent its personal state of moral development. All of the above Answer: a 58. Type: F Culture The reward system Emphasis on legal and professional standards Leadership and decision processes The extent to which the company cares for its people Answer: a 57. Page: 165 ______ is a major force that influences ethics in an organization. a. b. c. d. e. 56. Level: 2 Level: 2 Page: 166 Type: A Which of these is true about a company with a sense of social responsibility? a. b. c. d. e. It would be most concerned with the cost of pollution control devices. It would only care about their stockholders and employees. It would install safety control devices before the government required them. It would wait until the government required smokestack scrubbers. It would follow the competitors. Chapter Five * Ethics and Social Responsibility Test Bank * Page 141 Answer: c 59. Page: 166 Type: F a supplier. an international customer. a stakeholder. OPEC. a trade association. Answer: c Level: 1 Page: 166 Type: F Primary stakeholders of an organization include a. b. c. d. e. employees. customers. investors and shareholders. suppliers. all of the above. Answer: e Level: 1 Page: 167 Type: F All of the following are examples of special interest groups EXCEPT a. b. c. d. e. professional associations. trade associations. political action committees. courts. consumerists. Answer: d 63. Level: 2 Any group within or outside the organization that has a stake in the organization's performance is called a. b. c. d. e. 62. Type: A world trade. company’s finances. conventional level. ethics. professionalism. Answer: d 61. Page: 166 Explicit rules, the reward system, the extent to which the company cares for its people, the selection system, and leadership and decision process all have a major impact on a. b. c. d. e. 60. Level: 3 Level: 2 Page: 167 Type: F What type of a stakeholder would a nature conservation group be for a paper Chapter Five * Ethics and Social Responsibility Test Bank * Page 142 manufacturing company? a. b. c. d. e. Supplier Competitor Employee Special interest group None of the above Answer: d 64. Level: 2 Page: 170 Type: F Economic development that generates wealth and meets the needs of their current generation while focusing on future generations is often labeled __________. a. b. c. d. e. ethical management activist strategy sustainability market strategy future management Answer: c Level: 2 Page: 170 Type: F According to the book's model for judging corporate social performance, social responsibility is divided into what into four sections? a. b. c. d. e. Ethical, legal, technical, and rational Mandatory, technical, discretionary, and economic Legal, mandatory, economic, and ethical Discretionary, legal, economic, and ethical None of the above Answer: d 67. Type: A legal stakeholder activist market extended Answer: c 66. Page: 167 When organizations take the highest level of green, they take a(n) __________ approach. a. b. c. d. e. 65. Level: 2 Level: 2 Page: 171 Type: F Salomon Brothers' purely profit-maximizing view is an extreme version of a. b. ethical responsibility. discretionary responsibility. Chapter Five * Ethics and Social Responsibility Test Bank * Page 143 c. d. e. economic responsibility. legal responsibility. moral responsibility. Answer: c 68. Level: 2 Page: 171 Type: F __________ includes behavior that is not always written down and may actually not serve an organization’s bottom-line. a. b. c. d. e. Legal responsibility Economic responsibility Ethical responsibility Discretionary responsibility None of the above Answer: c Level: 2 Page 172 Type: F McDonald's helping to feed victims of the 1992 Los Angeles riots is an example of a. b. c. d. e. voluntary organizational behavior. discretionary responsibility. proactive response towards social demands. all of the above. a and b only. Answer: d 71. Type: A A legal behavior An unethical behavior An economic responsibility A discretionary responsibility A responsible behavior Answer: b 70. Page: 171 Which of these is considered a decision that enables an individual or company to benefit at society's expense? a. b. c. d. e. 69. Level: 2 Level: 3 Page: 173 Type: A With respect to appropriate corporate behavior, what society deems ______ as important. a. b. c. d. e. ethical responsibility discretionary responsibility economic responsibility legal responsibility moral responsibility Chapter Five * Ethics and Social Responsibility Test Bank * Page 144 Answer: d 72. Level: 1 Page: 173 Type: F ______ is the responsibility that goes beyond societal expectations to contribute to the community welfare. a. b. c. d. e. Ethical responsibility Discretionary responsibility Economic responsibility Legal responsibility Technical responsibility Answer: b Level: 2 Page: 173 Type: F Speeches, company publications and personal actions of senior management regarding their commitment to ethical values for a company is an example of a. b. c. d. e. a code of ethics. leadership by example. an ethical structure. a principle-based statement of corporate values. leadership by speech. Answer: b 75. Type: F Ethical Economic Legal Discretionary Stakeholder Answer: d 74. Page: 173 __________ responsibility is purely voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics. a. b. c. d. e. 73. Level: 2 Level: 2 Page: 175 Type: F According to your text, Fortune 1,000 companies found that __________ percent address issues of ethics and business conduct in formal corporate documents. a. b. c. d. e. 50 75 85 90 98 Answer: e Level: 3 Page: 176 Type: F Chapter Five * Ethics and Social Responsibility Test Bank * Page 145 76. A code of__________ is a formal statement of the company’s values concerning ethics and social issues. a. b. c. d. e. integrity trust citizenship ethics honesty Answer: d 77. Level: 1 Page: 176 Type: F An example of an ethical structure is a. b. c. d. e. chief ethics officer. a formal statement of company values. an equal opportunity policy. whistle-blowing. corporate speech. Answer: a Level: 2 Page: 177 Type: F When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as a. b. c. d. e. a whistle-blower. a chief ethics officer. vice-president of human resource management. a yes-man. a political play. Answer: b 80. Type: F principle-based policy-based ethically-based codified codes of organizational integrity Answer: c 79. Page: 176 Statements that define fundamental values and reference organizational responsibilities, products and employees are often called __________. a. b. c. d. e. 78. Level: 1 Level: 1 Page: 177 Type: F Which of these is the disclosure by an employee of an illegal activity? a. Tattling Chapter Five * Ethics and Social Responsibility Test Bank * Page 146 b. c. d. e. Whistle-blowing Organizational communication The filing of a disclosure statement Snooping Answer: b 81. Level: 2 Page: 178 Type: F The relationship between social responsibility and financial performance has been shown to be __________. a. b. c. d. e. non-existant positive negative not important a reflection of top leadership Answer: b Level: 2 Page: 179 Type: F Leaders who are committed to good business and making a positive impact on society are refered to as __________. a. b. c. d. e. social entrepreneurs ethical leaders ethical entrepreneurs philanthropic leaders philanthropic entrepreneurs Answer: a 84. Type: F economic, social, environmental economic, environmental, ethical environmental, social, ethical social, economic, ethical ethical, environmental, legitimate Answer: a 83. Page: 177 Many stakeholders are requiring organizations to report the triple bottom line, which refers to __________, __________, and __________. a. b. c. d. e. 82. Level: 1 Level: 2 Page: 180 Type: F Organizations can measure social responsibility based on a model which includes a look at the companies behavior based on __________. a. b. c. economics legal behavior ethical decision making Chapter Five * Ethics and Social Responsibility Test Bank * Page 147 d. e. discretionary actions all of the above Answer: e Level: 2 Page: 181 Type: F Scenario Questions Scenario—Bryan Stamos The pressure was on again. Bryan Stamos, the Vice President at McIntyre Hardware, Inc., was receiving requests from men and women inside the firm and outside the firm, asking him to review the company's promotion policies. Of the 52 middle and high level executives, only three were women. The pressure was to review the policies that had led to this perceived imbalance and, if appropriate, take the steps necessary for correction. 1. Using the justice approach for ethical decision-making, the logic of promoting qualified men and women would be supported by a. b. c. d. e. equal rights justice. distributive justice. procedural justice. compensatory justice. all of the above. Answer: b 2. Type: A The decision to recruit, hire, train and promote both men and women equally is based on the ethical approach of a. b. c. d. e. utilitarian approach. individualism approach. moral rights approach. all of the above provide the basis. none of the above. Answer: d Type: A Short Answer Questions 1. is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong. Answer: ethics Page: 156 Chapter Five * Ethics and Social Responsibility Test Bank * Page 148 2. When values and standards are written into the legal system, it is referred to as _______. Answer: codified law 3. Page: 157 An arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences. Answer: ethical dilemma 4. The ________ is an individual responsible for making an ethical choice. Answer: moral agent 5. Page: 157 Page: 157 List the four criteria for ethical decision-making described in the book. Answer: Utilitarianism, individualism, moral-rights, and justice. Page: 159 6. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as approach. Answer: utilitarian 7. Page: 159 The approach contends that acts are moral when they promote the individual's best long-term interests. Answer: individualism 8. The approach assets that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision. Answer: moral-rights 9. Page: 159 Page: 160 List three of the six moral rights that should be considered during decision making. Answer: Students can list any three of the following: the right of free consent, the right to privacy, the right of freedom of conscience, the right of free speech, the right to due process, and the right to life and safety. Page: 160 10. The approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Chapter Five * Ethics and Social Responsibility Test Bank * Page 149 Answer: justice 11. Page: 160 ________ justice requires that different treatment of people not be based on arbitrary characteristics. Answer: Distributive 12. Page: 160 _______ justice requires that rules should be clearly stated and consistently and impartially enforced. Answer: Procedural 13. Page: 161 justice argues that individuals should be compensated for the cost of their injuries by the party responsible. Answer: Compensatory 14. At the _______ level of personal moral development, individuals are most concerned with external rewards and punishments. Answer: preconventional 15. Page: 161 Individuals at the _______ level are guided by an internal set of values and standards and will even disobey rules or laws that violate these principles. Answer: postconventional or principled 17. Page: 162 ________ is not the only aspect of an organization that influences ethics, but it is a major force because it defines company values. Answer: Culture 19. Page: 161 Most managers operate at the ________ level. Answer: conventional or second 18. Page: 161 People learn to conform to the expectations of good behavior that are set by peers and society at the _______ level. Answer: conventional 16. Page: 161 Page: 165 Management's obligation to make choices that will contribute to the well being of both the organization and society is known as _______. Answer: social responsibility Page: 166 Chapter Five * Ethics and Social Responsibility Test Bank * Page 150 20. A is any group within or outside the organization that has a stake in the organization's performance. Answer: stakeholder 21. Page: 166 List three examples of primary stakeholders. Answer: Investors, shareholders, employees, customers, and suppliers are all examples of primary stakeholders. Page: 167 22. Organizations that are _______ responsible consider the effects of their actions on all stakeholder groups and may invest in a number of philanthropic causes that benefit stakeholders. Answer: socially 23. Page: 168 _________ __ has become an integral part of organizational strategy for many organizations because of the collaboration of corporations and environmental activist groups. Answer: Environmentalism 24. ___________ is a phrase used to evaluate a company’s commitment to environmental responsibility. Answer: Shades of green 25. Page: 169 Companies that attempt to answer the environmental concerns of various stakeholder groups would use the _______ approach. Answer: stakeholder 28. Page: 169 The ______ approach represents a growing awareness of and sensitivity to environmental concerns. Answer: market 27. Page: 169 When a company does just what is necessary to satisfy legal requirements, it falls under the _______ approach. Answer: legal 26. Page: 169 Page: 170 The ______ approach is taken by organizations that actively search for ways to conserve the Earth’s resources. Chapter Five * Ethics and Social Responsibility Test Bank * Page 151 Answer: activist 29. Page: 170 List the four responsibilities of corporate social performance. Answer: economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibility Page: 171 30. responsibility is purely voluntary and guided by a company's desire to make social contributions not mandated by economics, law, or ethics. Answer: Discretionary 31. Page: 173 List the three pillars of an ethical organization. Answer: ethical individuals, ethical leadership, and organizational structures and systems Page: 175 32. A is a formal statement of the company's values concerning ethics and social issues; it communicates to employees what the company stands for. Answer: code of ethics 33. __________ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws. Answer: Policy-based statements 34. Page: 177 ________ programs help employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior. Answer: Ethics training 36. Page: 176 A group of executives assigned to oversee the organization's ethics by ruling on questionable issues and disciplining violators is referred to as a(n) . Answer: ethics committee 35. Page: 176 Page: 177 Employee disclosure of illegal organization activities is known as _______. Answer: whistle-blowing Page: 177 Chapter Five * Ethics and Social Responsibility Test Bank * Page 152 Essay Questions 1. Define ethics and explain how the domain of ethics relates to law and free choice. ANSWER: Ethics is the code of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong. In Codified Law, the values and standards are written into the legal system and enforceable in the courts. In free choice, the law has no say and the individual or group has complete freedom. The domain of ethics is found between Codified Law and free choice. While written laws do not bind ethics, still there are standards of conduct based upon shared principles and values. Level: 2 2. Page: 156-157 List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each. ANSWER: Utilitarian approach is the ethical concept that moral behaviors produce the greatest good for the greatest number. Individualism approach is the ethical concept that acts are moral when they promote the individual’s best long-term interests. This will eventually lead to the greatest good. Moral-rights approach is the ethical concept that moral decisions are those that best maintain the rights of those people affected by them. Justice approach is the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality. Level: 2 3. Page: 159-161 Briefly explain the justice approach to ethics and then explain the three types of justice. ANSWER: The justice approach is the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality. Distributive justice requires that different treatment of people be based only on substantive differences and not be based on arbitrary characteristics. Procedural justice requires that all rules be administered fairly. Rules should be clearly stated and consistently enforced. Compensatory justice requires that individuals should be compensated for the cost of their injuries by the party responsible and that individuals not be held responsible for matters over which they have no control. Chapter Five * Ethics and Social Responsibility Test Bank * Page 153 Level: 2 4. Page: 160-161 List and define the stages of moral development. ANSWER: According to the model in the book, there are three stages of moral development. During the preconventional stage (level 1), individuals are mostly concerned with external rewards and punishments. They obey authority in order to avoid punishment. Individuals conforming to the expectations of others characterize the second level, the conventional stage. Fulfilling social and interpersonal obligations is important. At the postconventional/principled stage (level 3), an individual's behavior is directed by an internal set of values and beliefs. These values are more important than the expectations of others. Level: 2 5. Page: 161-162 What is social responsibility? Why is it considered a difficult concept to grasp? ANSWER: Social responsibility is management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization. It can be a difficult concept to grasp because different people have different beliefs as to what will improve society’s well being and it covers a range of ambiguous issues with respect to right or wrong. Level: 2 6. Page: 165-166 Explain the concept of a stakeholder and list five common stakeholders. ANSWER: A stakeholder is any individual or group of people, inside the organization or outside the organization, that has a stake or direct interest in that organization's performance. Stakeholders inside the organization include the employees, the managers, and the stockholders. Stakeholders outside the organization include customers, suppliers, regulatory agencies, and creditors. Level: 1 7. Page: 166-167 Describe the four shades of green that evaluates commitment to environmental responsibility. ANSWER: Chapter Five * Ethics and Social Responsibility Test Bank * Page 154 The first shade of shades of green is the legal approach. The legal approach is defined as an organization that does just what is necessary to satisfy legal requirements and managers shows little concern for environmental issues. The second shade is the market approach. Here there is a growing awareness of and sensitivity to environmental concerns that will satisfy customers. The third shade is the stakeholder approach. The stakeholder approach is achieved when an organization attempts to solve environmental problems of various stakeholder groups. The highest shade of green is the activist approach. This approach is taken by actively searching for ways to conserve the Earth’s resources. Level: 3 8. Page: 169-170 List and define the criteria of corporate social responsibility. ANSWER: There are four criteria of corporate social responsibility. The first criterion of social responsibility is economic responsibility. The organization's basic responsibilities are to produce the goods and provide the services that society wants, while at the same time maximizing profits and wealth for owners and stockholders. The second criterion is legal responsibilities. Through its laws, each society has defined what it considers to be appropriate corporate behavior. According to this criterion, businesses are expected to fulfill their economic goals within the law. Ethical responsibilities make up the third criterion. These include behaviors not necessarily codified into law, nor do they necessarily serve the organization's direct economic interests. Discretionary responsibilities, the fourth criterion, are entirely voluntary and are guided by the organization's desire to make a social contribution not mandated by economics, law, and/or ethics. Level: 3 9. Page: 171-173 Describe each of the three pillars of an ethical organization. ANSWER: The three pillars are ethical individuals, ethical leadership, and organizational structures and systems. Ethical individuals are managers who possess honesty and integrity. People inside and outside the organization trust these managers. Ethical leadership is shown through ethical actions. Leaders need to make a commitment to ethical values and help others throughout the organization embody and reflect those values. Organizational structures and systems are the set of tools that managers use to shape values and promote ethical behavior throughout the organization. Examples of these are codes of ethics, ethical structures, and whistle-blowers. Level: 2 Page: 174-178 Chapter Five * Ethics and Social Responsibility Test Bank * Page 155 In what stage of personal moral development is an individual concerned with external rewards?Individuals at the preconventional level are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. The majority of managers operate at the preconventional level of personal moral development.
Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number?Utilitarianism is an ethical theory that determines right from wrong by focusing on outcomes. It is a form of consequentialism. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number.
Which of the following refers to the code of moral principles and values that govern behaviors with respect what is right and wrong quizlet?Ethics is the code of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong.
At what level of moral development do the great majority of managers operate?The great majority of managers operate at the: conventional level.
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In what stage of personal moral development is a person mostly concerned with external rewards?
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