Management 9th Edition By Richard L - Test Bank

Management 9th Edition By Richard L – Test Bank

 

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Sample Questions Are Posted Below

 

Chapter 5—Managing Ethics and Social Responsibility

 

TRUE/FALSE

 

1. A public poll finds that 79 percent of respondent believe questionable business practices are widespread.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   129

NAT:  AACSB Analytic | Ethical Responsibilities                        TYP:   F

 

2. The domain of codified law pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

3. Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or groups.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

4. Free choice lies between the domains of codified law and ethics.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

5. If something is ethical, it must not be illegal.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

6. An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

7. The moral agent is an individual who must make an ethical choice in an organization.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

8. Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-making.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

9. 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.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

10. Monitoring the Internet to maintain the company’s ethical climate and workplace productivity could be considered part of an individualistic approach.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

11. 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.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

12. The ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people is objective dualism.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

13. In the individualism approach, the right of free speech must be considered.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

14. Individualism is popular in the highly organized society of today because it supports immediate self-gain.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

15. The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be considered in the moral rights approach.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

16. Procedural justice requires that different treatment of people not be based on arbitrary characteristics.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

17. The justice approach is closest to the thinking underlying the domain of free choice.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

18. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

19. The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and fulfills duties and obligations of the social system.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

20. Level 3 of the Personal Moral Development model is Conventional.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

21. Most of the laws guiding human resource management are based on the individualism approach.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

22. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

23. Individuals are concerned with external rewards and punishments at the principled level.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

24. An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

25. Principled level of moral development is also referred to as the postconventional level.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

26. The majority of managers operate at the preconventional level of personal moral development.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

27. Approximately 20% of American adults, according to your text, ever reach the postconventional level of moral development.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

28. The great majority of managers operate at level two, the conventional level.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

29. MANAGER’S SHOPTALK in Chapter 5 recommends that when challenging your boss on ethical issues you do not demand a resolution on the spot.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   136

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

30. The NEW MANAGER SELF-TEST in Chapter 5 suggests that displaying courage in a group situation often reflects a person’s level of moral development.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   137

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

31. Businesses based in countries such as Russia and China, according to a study by Transparency International, were found to be using bribes on an exceptional scale.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   137

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

32. 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.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

33. France is ranked number 1 on the Transparency International Bribe Payers Index.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

34. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

35. Important stakeholders in corporations include the government and the community.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

36. A stakeholder is any group within or outside the organization that has a stake in the organization’s performance.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

37. All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

38. Special interest groups include trade associations, political action committees and consumerists.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   140

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

39. The bottom of the pyramid concept proposes that corporations can alleviate poverty and other social ills by selling to the world’s poorest people.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   140

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

40. Advocates of bottom-of-the-pyramid thinking believe it does not work because corporations do not have a heart.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   141

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

41. Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   141

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

42. Surveys show that American consumers find nonprofit green groups more credible than businesses.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   142

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

43. Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be used to evaluate corporate social performance.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   142

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

44. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

45. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

46. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

47. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

48. A formal statement of the organization’s values regarding moral principles and governing its response to social values is called a code of ethics.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

49. Managers who are essentially ethical individuals make up the first pillar of an ethical organization.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

50. Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

51. Policy-based statements generally outline the procedure to be used in specific ethical situations.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   145

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

52. One of the newest positions in organizations is the chief ethics officer, a response to widespread financial wrongdoing in recent years.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   145

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

53. A group of executives appointed to oversee company ethics is an ethics committee.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

54. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

55. Ethics training programs are not an important supplement as long as a well-written code of ethics exists.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

56. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle-blowing.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

57. The Sarbanes-Oxley Act provides some safety for whistle-blowers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   147

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

58. Managers are often concerned good citizenship will hurt performance.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   147

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

MULTIPLE CHOICE

 

1. Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong?

a.	Social responsibility
b.	Free domain
c.	Ethics
d.	Codified law
e.	Discretionary responsibility

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   130

NAT:  AACSB Analytic | Ethical Responsibilities                        TYP:   F

 

2. An organization’s decision to produce a new product is in the

a.	domain of codified law.
b.	domain of free choice.
c.	domain of ethics.
d.	domain of compensatory justice.
e.	domain of social responsibility.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

3. The decision by the CSX to downsize and reduce its labor force is in the

a.	domain of codified law.
b.	domain of free choice.
c.	domain of ethics.
d.	social responsibility.
e.	none of these.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

4. 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.	The ethical domain
b.	The domain of free choice
c.	The legal domain
d.	The obstructive category
e.	The protective domain

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

5. Which of the following is a(n) is the individual who must make an ethical choice in an organization?

a.	The symbolic leader
b.	An obstructive manager
c.	The defensive individual
d.	The moral agent
e.	An authoritarian manager

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

6. Sharon 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. Sharon must decide whether or not to fire this employee. In this role, Sharon is acting as

a.	a moral agent.
b.	an ethical theorist.
c.	a symbolic leader.
d.	an authoritarian leader.
e.	an obstructive manager.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

 

 

 

 

 

 

7. The assumption that “If it’s not illegal, it must be ethical,” ignores which of the following?

a.	Domain of codified law
b.	Domain of ethics
c.	Domain of free choice
d.	Discretionary responsibility
e.	Domain of symbolism

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

8. 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.	a moral agent.
b.	a social responsibility.
c.	an ethical dilemma.
d.	an ethical standard.
e.	discretionary responsibility.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

9. A normative approach to ethical decision making

a.	reduces ethical dilemmas to easy-to-understand formulas.
b.	uses various approaches to describe guiding values for decisions.
c.	states that everyone must use their employer’s value system at work.
d.	dictates only one way to choose to resolve dilemmas.
e.	none of these.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

10. Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number?

a.	Defensive
b.	Justice
c.	Utilitarian
d.	Individualism
e.	Moral-rights

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

 

 

 

 

 

 

 

11. Robbie’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.	utilitarian approach.
b.	individualism approach.
c.	moral-justice approach.
d.	justice approach.
e.	illegal approach.

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

12. Caleb 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.	utilitarian approach.
b.	individualism approach.
c.	moral-justice approach.
d.	justice approach.
e.	soft-line managerial approach.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

13. 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.	Justice approach
b.	Utilitarian approach
c.	Individualism approach
d.	Moral-justice approach
e.	Discretionary responsibility

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

14. 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.

a.	justice
b.	moral-rights
c.	obstructive
d.	individualism
e.	utilitarian

 

 

ANS:  E                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

 

 

 

 

 

 

15. 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 is an example of ____.

a.	utilitarian approach
b.	individualism approach
c.	moral-justice approach
d.	justice approach
e.	social responsibility

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

16. Which of the following is NOT a normative ethics approach?

a.	Utilitarian approach
b.	Individualism approach
c.	Social responsibility approach
d.	Moral-rights approach
e.	All of these are normative approaches as described in the text.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

17. The golden rule “do unto others as they would do unto you” is

a.	an example of the utilitarian approach to ethical behavior.
b.	representative of the moral-justice approach to moral decision making.
c.	an example of the values that guide the individualism approach to ethical behavior.
d.	silly and outdated.
e.	an example of the justice approach to ethical behavior.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

18. 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.	utilitarian approach.
b.	individualism approach.
c.	moral-rights approach.
d.	dualism approach.
e.	None of these.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

19. The ____ refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them.

a.	individualism approach
b.	justice approach
c.	utilitarian approach
d.	moral-rights approach
e.	discretionary responsibility approach

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

20. Which of the following is NOT one of the moral rights that could be considered during decision-making?

a.	The right to free consent
b.	The right to invade privacy
c.	The right to free speech
d.	The right of freedom of conscience
e.	The right to life and safety

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

21. ____ refers to the concept that different treatment of people should not be based on arbitrary characteristics.

a.	Procedural justice
b.	Compensatory justice
c.	Distributive justice
d.	Organizational justice
e.	Moral-justice

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

22. Individualism is most closely related to

a.	social responsibility.
b.	free choice.
c.	economic responsibility.
d.	codified law.
e.	togetherness.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

23. ____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech.

a.	Moral-rights approach
b.	Individualism approach
c.	Utilitarian approach
d.	Justice approach
e.	Dual-economic approach

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

24. Sexual harassment is unethical because it violates an important part of which approach to ethical behavior?

a.	The utilitarian approach
b.	The individualism approach
c.	The justice approach
d.	The moral-rights approach
e.	The defensive approach

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

25. The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the

a.	moral-rights approach.
b.	individualism approach.
c.	utilitarian approach.
d.	justice approach.
e.	discretionary responsibility.

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

26. The moral rights approach that deals with individuals refraining from carrying out any order that violates their moral or religious norms is the

a.	right of free consent.
b.	right to privacy.
c.	right of freedom of conscience.
d.	right of free speech.
e.	right of due process.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

27. Sexual harassment is unethical because it violates the

a.	right of free consent.
b.	right to privacy.
c.	right of freedom of conscience.
d.	right of free speech.
e.	right of due process.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

28. Which of the following is not a concern to managers under the justice approach?

a.	Compensatory justice
b.	Distributive justice
c.	Procedural justice
d.	Obstructive justice
e.	All of these

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

29. 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.	the procedural justice approach.
b.	the utilitarian approach.
c.	the individual approach.
d.	the defensive approach.
e.	the free-choice approach.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

30. Which of these refers to procedural justice?

a.	The concept that different treatment of people should not be based on arbitrary characteristics
b.	The concept that rules should be clearly stated and consistently and impartially enforced
c.	The concept that individuals should be compensated for the cost of their injuries by the party responsible
d.	The concept that people should be treated differently
e.	None of these

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

31. The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as

a.	distributive justice.
b.	injury justice.
c.	procedural justice.
d.	organizational justice.
e.	compensatory justice.

 

 

ANS:  E                    PTS:   1                    DIF:    1                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

32. The thinking underlying the domain of ____ is the closest to the justice approach.

a.	social responsibility
b.	free choice
c.	law
d.	discretionary responsibility
e.	ethics

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

33. Most of the laws guiding human resource management are based on the

a.	utilitarian approach.
b.	moral-rights approach.
c.	individualism approach.
d.	justice approach.
e.	collectivism approach.

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

34. ____ is NOT included in the model of personal moral development described in your text.

a.	Preconventional level
b.	Conventional level
c.	Principled level
d.	Postconventional level
e.	All of these are included in the model

 

 

ANS:  E                    PTS:   1                    DIF:    2                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

35. In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action?

a.	Preconventional
b.	Conventional
c.	Principled
d.	Discretionary
e.	None of these

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

36. 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.	Preconventional
b.	Conventional
c.	Discretionary
d.	Principled
e.	Traditional

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

37. Which of these best illustrates the preconventional stage of moral development?

a.	Everybody else is doing it, so it must be okay.
b.	What would my boss think if I did this?
c.	I know this is not right, and I will not do it, even if everyone else is.
d.	What am I going to get from making this decision?
e.	All of these

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

38. The conventional stage of moral development is best described by which of the following statements?

a.	I won’t do that because the boss will be upset with me.
b.	Everybody else is doing it, so it must be okay.
c.	I know this is not right, and I will not do it, even if everyone else is.
d.	What am I going to get from making this decision?
e.	All of these

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

39. The ____ leadership style matches with the preconventional level of personal moral development.

a.	autocratic
b.	team oriented
c.	servant leadership
d.	guiding/encouraging
e.	transforming

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

40. ____ matches with the preconventional level of personal moral development.

a.	Work group collaboration
b.	Task accomplishment
c.	Empowered employees
d.	Full participation
e.	Transforming

 

 

ANS:  B                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

41. Which of these employee behaviors matches with the conventional level of personal moral development?

a.	Task accomplishment
b.	Empowered employees
c.	Work group collaboration
d.	Full participation
e.	Act in own interest

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

42. Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values?

a.	Preconventional
b.	Conventional
c.	Principled
d.	Discretionary
e.	Social

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

43. People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others

a.	are in the preconventional level of moral development.
b.	are in the conventional level of moral development.
c.	are in the principled level of moral development.
d.	do not care what people think of them.
e.	none of these.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

44. ____ matches with the postconventional level of personal moral development.

a.	Team oriented
b.	Autocratic
c.	Guiding/encouraging
d.	Coercive
e.	Servant leadership

 

 

ANS:  E                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

45. Which of these employee behaviors matches with the postconventional level of personal moral development?

a.	Empowered employees, full participation
b.	Task accomplishment
c.	Act in own interest
d.	Work group collaboration
e.	Autocratic

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

46. The great majority of managers operate at the

a.	preconventional level.
b.	principled level.
c.	conventional level.
d.	postconventional level.
e.	autocratic level.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

47. Only about ____ percent of American adults reach the level-three stage of moral development.

a.	two
b.	four
c.	eleven
d.	fifteen
e.	twenty

 

 

ANS:  E                    PTS:   1                    DIF:    3                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

48. Regarding the levels of personal moral development, the majority of managers operate at the ____ level.

a.	preconventional
b.	autocratic
c.	postconventional
d.	conventional
e.	transformative

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

49. MANAGER’S SHOPTALK in Chapter 5 suggests all of the following when challenging the boss on ethical issues EXCEPT:

a.	do your research
b.	begin the meeting by taking the floor
c.	pay attention to your word choice and demeanor
d.	take care how you suggest your alternative solution
e.	be patient

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   136

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

50. 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.	organizational responsibility.
b.	social responsibility.
c.	discretionary responsibility.
d.	economic responsibility.
e.	none of these.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

51. Which of these is true about the policy a bank adopts toward its investing of depositor’s money?

a.	It is an expression of its philosophy of social responsibility.
b.	It is important only to the community.
c.	It has no ethical implications.
d.	It would represent its personal state of moral development.
e.	All of these.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   A

 

52. Which of the following countries is ranked in the top three for their low propensity to pay bribes?

a.	Russia
b.	Mexico
c.	France
d.	Sweden
e.	United States

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

53. Any group within or outside the organization that has a stake in the organization’s performance is called

a.	a supplier.
b.	an international customer.
c.	a stakeholder.
d.	OPEC.
e.	a trade association.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

54. Primary stakeholders of an organization include

a.	employees.
b.	customers.
c.	investors and shareholders.
d.	suppliers.
e.	all of these.

 

 

ANS:  E                    PTS:   1                    DIF:    1                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

55. An organization’s performance affects stakeholders, but stakeholders can also have a tremendous effect on the organization’s ____.

a.	performance and success
b.	profitability and perception
c.	bottom-line development and Greenfield growth
d.	competitive intelligence and top-line performance
e.	effectiveness and domestic affordability

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

56. All of the following are examples of special interest groups EXCEPT

a.	professional associations.
b.	trade associations.
c.	political action committees.
d.	courts.
e.	consumerists.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   140

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

57. What type of a stakeholder would a nature conservation group be for a paper manufacturing company?

a.	Supplier
b.	Competitor
c.	Employee
d.	Special interest group
e.	None of these

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   140

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

58. Which of the following concepts proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world’s poorest people?

a.	The foundation concept
b.	The bottom of the pyramid concept
c.	The poverty concept
d.	The social class concept
e.	The hierarchy of needs concept

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   140

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

59. With a philosophy of ____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals.

a.	sustainability
b.	conservation
c.	ethics
d.	preservation
e.	human concerns

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   141

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

60. ____ is economic development that generates wealth and meets the needs of their current generation while focusing on future generations.

a.	Ethical management
b.	Activist strategy
c.	Sustainability
d.	Market strategy
e.	Future management

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   141

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

61. Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources?

a.	Preservation
b.	Conservation
c.	Environmentalism
d.	Protectionism
e.	Sustainability

 

 

ANS:  E                    PTS:   1                    DIF:    2                    REF:   142

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

62. According to the book’s model for judging corporate social performance, social responsibility is divided into what into four sections?

a.	Ethical, legal, technical, and rational
b.	Mandatory, technical, discretionary, and economic
c.	Legal, mandatory, economic, and ethical
d.	Discretionary, legal, economic, and ethical
e.	None of these

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   142

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

63. ____ is considered a decision that enables an individual or company to benefit at society’s expense.

a.	A legal behavior
b.	An unethical behavior
c.	An economic responsibility
d.	A discretionary responsibility
e.	A responsible behavior

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

64. ____ includes behavior that is not always written down and may actually not serve an organization’s bottom-line.

a.	Legal responsibility
b.	Economic responsibility
c.	Ethical responsibility
d.	Discretionary responsibility
e.	None of these

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

65. With respect to appropriate corporate behavior, what society deems ____ as important.

a.	ethical responsibility
b.	discretionary responsibility
c.	economic responsibility
d.	legal responsibility
e.	moral responsibility

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

66. Which of the following responsibilities is purely voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics?

a.	Ethical
b.	Economic
c.	Legal
d.	Discretionary
e.	Stakeholder

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

67. ____ is the responsibility that goes beyond societal expectations to contribute to the community welfare.

a.	Ethical responsibility
b.	Discretionary responsibility
c.	Economic responsibility
d.	Legal responsibility
e.	Technical responsibility

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

68. ____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.

a.	Ethical leadership
b.	Followership
c.	Corporate espionage
d.	Command-and-control approach
e.	Concern for production leadership

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

69. A code of ____ is a formal statement of the company’s values concerning ethics and social issues.

a.	integrity
b.	trust
c.	citizenship
d.	ethics
e.	honesty

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

70. Statements that define fundamental values and reference organizational responsibilities, products and employees are often called ____.

a.	principle-based
b.	policy-based
c.	ethically-based
d.	codified
e.	codes of organizational integrity

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

71. An example of an ethical structure is

a.	chief ethics officer.
b.	a formal statement of company values.
c.	an equal opportunity policy.
d.	whistle-blowing.
e.	corporate speech.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

72. When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as

a.	a whistle-blower.
b.	a chief ethics officer.
c.	vice-president of human resource management.
d.	a yes-man.
e.	a political play.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

73. Which of these is the disclosure by an employee of an illegal activity?

a.	Tattling
b.	Whistle-blowing
c.	Organizational communication
d.	The filing of a disclosure statement
e.	Snooping

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

74. ____ is not part of the structures and systems pillar of an ethical organization.

a.	Corporate culture
b.	Code of ethics
c.	Ethics committee
d.	Whistle-blowing mechanisms
e.	Rewarding ethical behavior

 

 

ANS:  E                    PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

75. Many stakeholders are requiring organizations to report the triple bottom line, which refers to ____, ____, and ____.

a.	economic, social, environmental
b.	economic, environmental, ethical
c.	environmental, social, ethical
d.	social, economic, ethical
e.	ethical, environmental, legitimate

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   147

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

76. The relationship between social responsibility and financial performance has been shown to be ____.

a.	non-existent
b.	positive
c.	negative
d.	not important
e.	a reflection of top leadership

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   147

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

CASE

 

Scenario – Larry Campbell

 

The pressure was on again. Larry Campbell, the Vice President at ToolTime 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. The decision to recruit, hire, train and promote both men and women equally is based on the ethical approach of

a.	utilitarian approach.
b.	individualism approach.
c.	moral rights approach.
d.	all of these provide the basis.
e.	none of these.

 

 

ANS:

d

 

PTS:   1                    DIF:    2                    REF:   132-133

NAT:  AACSB Ethics | Ethical Responsibilities                           KEY:  Scenario Questions

TYP:   A

 

 

 

 

2. Using the justice approach for ethical decision-making, the logic of promoting qualified men and women would be supported by

a.	equal rights justice.
b.	distributive justice.
c.	procedural justice.
d.	compensatory justice.
e.	all of these.

 

 

ANS:

b

 

PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           KEY:  Scenario Questions

TYP:   A

 

3. A(n) _______ would outline the procedures Larry should use in this and other ethical situations.

a.	principle-based statement
b.	code of ethics
c.	corporate credo
d.	policy-based statement
e.	ethics committee

 

 

ANS:

d

 

PTS:   1                    DIF:    2                    REF:   145

NAT:  AACSB Ethics | Ethical Responsibilities                           KEY:  Scenario Questions

TYP:   A

 

COMPLETION

 

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.

 

ANS:  Ethics

 

PTS:   1                    DIF:    1                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

2. When values and standards are written into the legal system, it is referred to as ____________________.

 

ANS:  codified law

 

PTS:   1                    DIF:    2                    REF:   130

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

3. A(n) ____________________ arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.

 

ANS:  ethical dilemma

 

PTS:   1                    DIF:    2                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

4. The ____________________ is an individual responsible for making an ethical choice.

 

ANS:  moral agent

 

PTS:   1                    DIF:    2                    REF:   131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

5. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as ____________________ approach.

 

ANS:  utilitarian

 

PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

6. The ____________________ approach contends that acts are moral when they promote the individual’s best long-term interests.

 

ANS:  individualism

 

PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

7. The ____________________ approach assets that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.

 

ANS:

moral-rights

moral rights

 

PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

8. The ____________________ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.

 

ANS:  justice

 

PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

9. ____________________ justice requires that different treatment of people not be based on arbitrary characteristics.

 

ANS:  Distributive

 

PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

10. ____________________ justice requires that rules should be clearly stated and consistently and impartially enforced.

 

ANS:  Procedural

 

PTS:   1                    DIF:    2                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

11. ____________________ justice argues that individuals should be compensated for the cost of their injuries by the party responsible.

 

ANS:  Compensatory

 

PTS:   1                    DIF:    2                    REF:   134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

12. At the ____________________ level of personal moral development, individuals are most concerned with external rewards and punishments.

 

ANS:  preconventional

 

PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

13. People learn to conform to the expectations of good behavior that are set by peers and society at the ____________________ level.

 

ANS:  conventional

 

PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

14. 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.

 

ANS:  postconventional principled

 

PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

 

15. Most managers operate at the ____________________ level.

 

ANS:

conventional

second

 

PTS:   1                    DIF:    2                    REF:   135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

16. Management’s obligation to make choices that will contribute to the well being of both the organization and society is known as ____________________.

 

ANS:  social responsibility

 

PTS:   1                    DIF:    2                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

17. A(n) ____________________ is any group within or outside the organization that has a stake in the organization’s performance.

 

ANS:  stakeholder

 

PTS:   1                    DIF:    2                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

18. 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.

 

ANS:  socially

 

PTS:   1                    DIF:    2                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

19. ____________________ refers to interacting with the community in which a company does business in a way that makes money for the company but also improves the long-term well-being of the community.

 

ANS:  social sustainability

 

PTS:   1                    DIF:    2                    REF:   141

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

20. When a company does just what is necessary to satisfy legal requirements, it falls under the ____________________ approach in shades of green.

 

ANS:  legal

 

PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

21. ____________________ responsibility is purely voluntary and guided by a company’s desire to make social contributions not mandated by economics, law, or ethics.

 

ANS:  Discretionary

 

PTS:   1                    DIF:    2                    REF:   143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

22. A(n) ____________________ is a formal statement of the company’s values concerning ethics and social issues; it communicates to employees what the company stands for.

 

ANS:  code of ethics

 

PTS:   1                    DIF:    2                    REF:   144

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

23. ____________________ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws.

 

ANS:  Policy-based statements

 

PTS:   1                    DIF:    2                    REF:   145

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

24. 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) ____________________.

 

ANS:  ethics committee

 

PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

25. ____________________ programs help employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior.

 

ANS:  Ethics training

 

PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

26. Employee disclosure of illegal organization activities is known as ____________________.

 

ANS:  whistle-blowing

 

PTS:   1                    DIF:    2                    REF:   146

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

 

27. The relationship between social responsibility and financial performance has been shown to be ____________________.

 

ANS:  positive

 

PTS:   1                    DIF:    2                    REF:   147

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

SHORT ANSWER

 

1. List the four criteria for ethical decision-making described in the book.

 

ANS:

Utilitarianism, individualism, moral-rights, and justice.

 

PTS:   1                    DIF:    2                    REF:   132

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

2. List three of the six moral rights that should be considered during decision making.

 

ANS:

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.

 

PTS:   1                    DIF:    2                    REF:   133

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

3. List three examples of primary stakeholders.

 

ANS:

Investors, shareholders, employees, customers, and suppliers are all examples of primary stakeholders.

 

PTS:   1                    DIF:    2                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

4. List the four responsibilities of corporate social performance.

 

ANS:

economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibility

 

PTS:   1                    DIF:    2                    REF:   142

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

 

 

ESSAY

 

1. Define ethics and explain how the domain of ethics relates to law and free choice.

 

ANS:

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.

 

PTS:   1                    DIF:    2                    REF:   130-131

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

2. List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.

 

ANS:

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.

 

PTS:   1                    DIF:    2                    REF:   132-134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

3. Briefly explain the justice approach to ethics and then explain the three types of justice.

 

ANS:

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.

 

PTS:   1                    DIF:    2                    REF:   133-134

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

 

4. List and define the stages of moral development.

 

ANS:

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.

 

PTS:   1                    DIF:    2                    REF:   134-135

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

5. What is social responsibility? Why is it considered a difficult concept to grasp?

 

ANS:

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.

 

PTS:   1                    DIF:    2                    REF:   138

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

6. Explain the concept of a stakeholder and list five common stakeholders.

 

ANS:

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.

 

PTS:   1                    DIF:    1                    REF:   139

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. List and define the criteria of corporate social responsibility.

 

ANS:

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.

 

PTS:   1                    DIF:    3                    REF:   142-143

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F

 

8. Explain the differences between principle-based statements and policy-based statement in an organization’s code of ethics.

 

ANS:

Principle-based statement are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. General statements of principle are often called corporate credos. Policy-based statements generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

 

PTS:   1                    DIF:    3                    REF:   144-145

NAT:  AACSB Ethics | Ethical Responsibilities                           TYP:   F