Management Leading and Collaborating in a Competitive World Thomas Bateman 13e - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Management, 13e (Bateman) Chapter 5 Ethics, Corporate Responsibility, and Sustainability 1) Most people have unconscious biases that favor themselves and their own group. …
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Management Leading and Collaborating in a Competitive World Thomas Bateman 13e – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Management, 13e (Bateman)
Chapter 5 Ethics, Corporate Responsibility, and Sustainability
1) Most people have unconscious biases that favor themselves and their own group.
Answer: TRUE
Explanation: It is true that most people have unconscious biases that favor themselves and their own group. Managers often hire people who are like them, think they are immune to conflicts of interest, take more credit than they deserve, and blame others when they deserve some blame themselves.
Difficulty: 2 Medium
Topic: Bias
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
2) Values are the rules that govern people’s behavior and identify the “goods” that are worth seeking.
Answer: FALSE
Explanation: Values are principles of conduct, such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen.
Difficulty: 1 Easy
Topic: Values
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
3) The ethical system known as egoism is similar to Adam Smith’s concept of the invisible hand in business.
Answer: TRUE
Explanation: According to egoism, acceptable behavior is that which maximizes benefits for the individual. This notion is similar to Adam Smith’s concept of the invisible hand in business. Smith argued that if every organization follows its own economic self-interest, the total wealth of society will be maximized.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
4) According to virtue ethics, moral individuals can transcend society’s rules by applying personal virtues.
Answer: TRUE
Explanation: Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good “moral character” would deem right. Society’s rules provide a moral minimum, and then moral individuals can transcend rules by applying their personal virtues such as faith, honesty, and integrity.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
5) Individuals can be ethical leaders if they have a strong moral character, regardless of which issues attract their attention.
Answer: FALSE
Explanation: When individuals are both personally moral and are moral managers, they will truly be ethical leaders. They can have strong personal characters, but if they pay more attention to other things, and ethics is managed by benign neglect, they won’t have the reputation as ethical leaders.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
6) Integrity-based ethics programs are primarily concerned with the avoidance of illegality.
Answer: FALSE
Explanation: Integrity-based ethics programs are concerned with the law but also with instilling in people a personal responsibility for ethical behavior. With such a program, companies and people govern themselves through a set of guiding principles that they embrace.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
7) A good process for ethical decision making begins with considering the legal requirements.
Answer: FALSE
Explanation: The process for decision making begins with understanding all moral standards and recognizing all moral impacts.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
8) A transcendent education involves balancing self-interest with responsibility to others.
Answer: TRUE
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
9) Profit maximization and corporate social responsibility necessarily lead to opposing corporate policies.
Answer: FALSE
Explanation: Profit maximization and corporate social responsibility used to be regarded as antagonistic, leading to opposing policies. But the two views can converge.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
10) Sustainable growth refers to economic growth and development that meet the organization’s present needs without harming the ability of future generations to meet their needs.
Answer: TRUE
Explanation: Sustainable growth is economic growth and development that meet the organization’s present needs without harming the ability of future generations to meet their needs.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
11) Bill, the manager of Just Right Gelato, acts with integrity and honesty because he believes in a system of rules that governs the ordering of values. The system of rules that directs Bill’s behavior is known as
Answer: D
Explanation: Ethics is the system of rules that governs the ordering of values. By applying ethical standards that direct them to act with integrity, managers believe that they and their organizations and communities thrive over the long term.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
12) A situation, problem, or opportunity in which an individual is obligated to choose among several actions that must be evaluated as morally right or wrong is a(n) ________ issue.
Answer: E
Explanation: An ethical issue is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
13) What are business ethics?
Answer: B
Explanation: Business ethics consists of the moral principles and standards that guide behavior in the world of business.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
14) When Pam must decide whether something is right or wrong, she considers the writings of the ancient teachers Confucius and Marcus Aurelius, whose works she has read many times. These books form the basis of Pam’s
Answer: A
Explanation: Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
15) Which ethical system states that the greatest good for the greatest number should be the overriding concern of decision makers?
Answer: B
Explanation: Utilitarianism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
16) Vijay works for a food manufacturer that plans to move to Mexico to take advantage of the cheaper labor. The CEO rationalizes this decision by claiming that many other companies are making similar moves. Vijay counters that the number of people who will be harmed by losing their jobs will be more than the number of people who will be helped by the relocation. Which of the following ethical systems does this debate contrast?
Answer: A
Explanation: The CEO uses relativism because he is comparing the company’s behavior to the behavior of other companies. Vijay uses a utilitarian argument because he is seeking the greatest good for the greatest number of people.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
17) Which of the following was developed by a group of international executives, including business leaders from Japan, Europe, and the United States?
Answer: B
Explanation: The Caux Roundtable, a group of international executives based in Caux, Switzerland, worked with business leaders from Japan, Europe, and the United States to create the Caux Principles. Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei means living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition.
Difficulty: 2 Medium
Topic: Caux Principles
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
18) Esosa believes that ethical behavior is anything that provides the maximum benefit for herself. What ethical system does Esosa subscribe to?
Answer: D
Explanation: According to egoism, acceptable behavior is that which maximizes benefits for the individual.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
19) Once a year at the annual employee meeting, the president of Federated Finance reminds all his employees of his belief that there are certain values everyone can agree on, such as honesty, fairness, and respect for life. Which ethical system does the president believe in?
Answer: A
Explanation: Universalism states that all people should uphold certain values, such as honesty, that society needs to function. This belief holds that universal values are principles so fundamental to human existence that they are important in all societies. Examples include rules against murder, deceit, torture, and oppression.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
20) Which philosophy would be the most likely to emphasize that there are different ethics in different cultures?
Answer: C
Explanation: Under relativism, ethical behavior is based on the opinions and behaviors of relevant other people. Relativism acknowledges the existence of different ethical viewpoints. For example, norms (standards of expected and acceptable behavior) vary from one culture to another.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
21) What do people in the preconventional stage of Kohlberg’s model of cognitive moral development base their decisions on?
Answer: D
Explanation: People in the preconventional stage make decisions based on rewards and punishments and immediate self-interest.
Difficulty: 2 Medium
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
22) What does the Sarbanes-Oxley Act require of companies?
Answer: A
Explanation: Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor confidence. The law requires companies to have a more independent board of directors, to adhere strictly to accounting rules, and to have senior managers personally sign off on financial results.
Difficulty: 2 Medium
Topic: Sarbanes-Oxley
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
23) The ethical climate of an organization refers to
Answer: D
Explanation: The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
Difficulty: 1 Easy
Topic: Ethical Climate
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
24) A human resources manager deals with an employee named Henrietta, who is making a sexual harassment claim against another employee named Joe. Which of the following actions taken by the manager would most likely enable unethical behavior?
Answer: B
Explanation: A desire for simple, quick-fix solutions to ethical problems and the consideration of ethical issues solely from a public relations perspective would enable unethical behavior.
Difficulty: 3 Hard
Topic: Ethical Behavior
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
25) Which of the following has been identified as a factor that contributes to unethical behavior?
Answer: C
Explanation: Many factors create a climate conducive to unethical behavior, including excessive emphasis on short-term revenues over longer-term considerations, failure to establish a written code of ethics, and a desire for simple, quick fix solutions to ethical problems.
Difficulty: 2 Medium
Topic: Ethical Behavior
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
26) Which of the following statements about compliance-based ethics programs are true?
Answer: E
Explanation: Compliance-based ethics programs should reduce illegal behavior and help a company stay out of court. But they do not create a moral commitment to ethical conduct; they merely ensure moral mediocrity.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
27) Moral awareness involves
Answer: C
Explanation: Making ethical decisions takes moral awareness (realizing the issue has ethical implications), moral judgment (knowing what actions are morally defensible), and moral character (the strength and persistence to act in accordance with your ethics despite the challenges).
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
28) A whistleblower is a person who
Answer: A
Explanation: Whistleblowing refers to telling others, inside or outside the organization, of wrongdoing.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
29) Which of the following responsibilities lies at the base of the pyramid of global corporate social responsibility and performance?
Answer: B
Explanation: Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. The economic responsibility of business lies at the base of the pyramid of global corporate social responsibility and performance.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
30) The president of Better Mornings Breakfast Foods Inc. has asked you to improve the public image of the company. You decide to do so based on philanthropic responsibility. Considering this, you are most likely to propose that the company
Answer: E
Explanation: Philanthropic responsibility consists of additional behaviors and activities that society finds desirable and that are supported by the values of a business. Examples include supporting community projects and making charitable contributions.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
31) During a high-level meeting of Jerry’s Toys executives, you and several other executives offer solutions to the recent decline in sales. Considering the levels of global corporate social responsibility, you decide you want to use a philanthropic solution. Which of the following actions would you take?
Answer: C
Explanation: Giving donations to hospitalized children addresses philanthropic responsibility. Reducing the price of goods and creating a consumer club address economic responsibility. Using biodegradable resources focuses on ethical responsibility. Creating a misleading advertising campaign is greenwashing and is not ethical.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
32) Which of the following is one of the five higher goals of a transcendent education?
Answer: E
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
33) You learn about an earthquake that hit a country, causing thousands of deaths and leaving thousands of other people without homes. Which of the following responses combines the higher goals of transcendent education called empathy and generativity?
Answer: E
Explanation: You show empathy by sympathizing with the disaster victims and generativity by giving your money to a disaster relief fund. Writing a letter to a U.S. senator criticizing the lack of government aid for disaster victims shows intolerance for inhumanity, but it does not show empathy or generativity. Seeing aid to the disaster victims as a community effort shows mutuality but not empathy or generativity. Convincing your employer to donate food shows generativity, but it is not paired with an empathy example.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
34) According to Milton Friedman, what is the social responsibility of business?
Answer: A
Explanation: Nobel Prize-winning economist Milton Friedman stated that “the social responsibility of business is to increase profits.” Friedman contended that organizations may help improve the quality of life as long as such actions are directed at increasing profits.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
35) How has the view of the business community toward environmental issues changed in the twenty-first century?
Answer: C
Explanation: Business used to look at environmental issues as a no-win situation. Either you help the environment and hurt your business, or you help your business at a cost to the environment. But now a paradigm shift is taking place in corporate environmental management—the deliberate incorporation of environmental values into competitive strategies and into the design and manufacturing of products.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-05 Discuss reasons for businesses’ growing interest in the natural environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
36) The creation and distribution of wealth generate by-products that can cause injury, loss, or danger to people and the environment. Because of that, we are said to live in a(n) ________ society.
Answer: D
Explanation: We live in a risk society. That is, the creation and distribution of wealth generate by-products that can cause injury, loss, or danger to people and the environment.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-05 Discuss reasons for businesses’ growing interest in the natural environment.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
37) What is the goal of ecocentric management?
Answer: E
Explanation: Ecocentric management has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
38) ________ in business is considered compatible with the natural ecosystems that generate and preserve life.
Answer: B
Explanation: Sustainable growth is economic growth and development that meet the organization’s present needs without harming the ability of future generations to meet their needs. Sustainability is fully compatible with the natural ecosystems that generate and preserve life.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
39) Acme Products uses wind power, adheres to global warming standards, designs packages that minimize repackaging, keeps chemicals within the production cycle, and uses large amounts of tin from Peru. Which of the following prevents Acme Products from being a cradle-to-cradle operation?
Answer: D
Explanation: Acme reduces waste by minimizing repackaging. By using wind power, the company is using a renewable energy source. Also, it uses a closed-loop industrial cycle by keeping chemicals within the production cycle. Acme does not create excessive pollution because it adheres to global warming standards. However, by mining tin it uses a nonrenewable resource, thereby preventing it from being a cradle-to-cradle operation.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
40) Which of the following terms refers to misleading marketing claims about the environmentally friendly nature of a product?
Answer: C
Explanation: Companies can emphasize green attributes in their marketing but need to avoid misleading claims (“greenwashing”) that can cause public backlash.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
41) ________ is the system of rules that governs the ordering of values.
Answer: B
Explanation: Ethics is the system of rules that governs the ordering of values. The premise is that managers, their organizations, and their communities thrive over the long term when the managers apply ethical standards that direct them to act with integrity.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
42) Who often suffers the most when corporations behave unethically?
Answer: C
Explanation: When corporations behave badly, it’s often not the top executives but the rank-and-file employees who suffer most. In many cases, executives are secured through generous pay and bonus packages. In contrast, employees lose their jobs as the company goes into decline after a scandal.
Difficulty: 2 Medium
Topic: Ethical Behavior
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
43) Rashida is a traveling sales representative. Most of her colleagues fill out inaccurate expense records to be eligible for extra reimbursement. Rashida can either do the same thing or record real, accurate expenses. Rashida’s situation is an example of
Answer: B
Explanation: An ethical issue is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
44) Rafael believes that everyone should uphold honesty, justice, and kindness so that society can function at its best. Which ethical system best fits Rafael’s beliefs?
Answer: C
Explanation: Universalism states that all people should uphold certain values, such as honesty, that society needs to function. Universal values are principles so fundamental to human existence that they are important in all societies, such as rules against murder, deceit, torture, and oppression.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
45) ________ is moral philosophy
Answer: D
Explanation: Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong. This is a simple definition in the abstract but often terribly complex and difficult when facing real choices.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
46) Kiko works as a receptionist for a medical office. Some of the doctors have asked her to tell patients that they are in an appointment when in fact they are playing golf. Which of the following actions would Kiko take if she wanted to follow the ethical system of universalism?
Answer: D
Explanation: Universalism states that all people should uphold certain values, such as honesty, that society needs to function. Universal values are principles so fundamental to human existence that they are important in all societies, such as rules against murder, deceit, torture, and oppression.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
47) ________ are the two ethical ideals of the Caux Principles.
Answer: D
Explanation: Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei means living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition. Human dignity concerns the value of each person as an end, not a means to the fulfillment of others’ purposes.
Difficulty: 1 Easy
Topic: Caux Principles
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
48) ________ considers acceptable behavior to be that which maximizes benefits for the individual.
Answer: A
Explanation: According to egoism, acceptable behavior is that which maximizes benefits for the individual. According to its proponents, if everyone follows this system, the well-being of society as a whole should increase.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
49) The management of an organization follows the ideology that if they work keeping in mind the company’s own economic self-interest, the total wealth of the society will be maximized. Which of the following best describes the ethical system used by this organization?
Answer: C
Explanation: According to egoism, acceptable behavior is that which maximizes benefits for the individual. The idea is that if every organization follows its own economic self-interest, the total wealth of society will be maximized.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
50) Utilitarianism is centered around the idea that
Answer: E
Explanation: Utilitarianism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
51) Which of the following statements best describes relativism?
Answer: C
Explanation: Relativism defines ethical behavior based on the opinions and behaviors of relevant other people. Relativism acknowledges the existence of different ethical viewpoints, often based on norms.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
52) ________ acknowledges the existence of different ethical viewpoints and uses norms as guidelines.
Answer: B
Explanation: Relativism defines ethical behavior based on the opinions and behaviors of relevant other people. Relativism acknowledges the existence of different ethical viewpoints, such as norms.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
53) When he stays in hotels, Jamal packs whatever towels he hasn’t dirtied into his suitcase to take home. Because all his colleagues do the same thing, he thinks it is acceptable to do so. In this scenario, which of the following ethical systems has Jamal used to rationalize his decision?
Answer: C
Explanation: Relativism defines ethical behavior based on the opinions and behaviors of relevant other people, such as Jamal’s colleagues. Relativism acknowledges the existence of different ethical viewpoints, such as norms.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
54) Ellis plans to start a business called Egg Smart, which involves producing eggs for consumers at a low price. To accomplish this, Ellis decides to comply with only the minimum safety standards. Based on virtue ethics, what is the problem with Ellis’s approach?
Answer: B
Explanation: Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good “moral character” would deem right. Society’s rules provide a moral minimum, and then moral individuals can transcend rules by applying their personal virtues such as faith, honesty, and integrity.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
55) Which of the following is one of Kohlberg’s stages of cognitive moral development?
Answer: D
Explanation: Kohlberg’s model of cognitive moral development classifies people into categories based on their level of moral judgment. The stages are preconventional, conventional, and principled.
Difficulty: 1 Easy
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
56) According to Kohlberg’s model of cognitive moral development, people in which of the following stages tend to make decisions based on rewards and punishments and immediate self-interest?
Answer: D
Explanation: Kohlberg’s model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the preconventional stage make decisions based on rewards and punishments and immediate self-interest.
Difficulty: 1 Easy
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
57) Afonso is a customer service representative who determines his work behavior solely on whether he thinks he can do actions without receiving immediate punishment from his boss. According to Kohlberg, which of the following stages of moral development does Afonso’s behavior exemplify?
Answer: D
Explanation: People in the preconventional stage of Kohlberg’s model of cognitive moral development make decisions based on concrete rewards and punishments and immediate self-interest.
Difficulty: 2 Medium
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
58) Maja’s behavior is typically guided by what she thinks would be acceptable to her parents. According to Kohlberg, which of the following stages of moral development does Maja’s behavior exemplify?
Answer: B
Explanation: People in the conventional stage of Kohlberg’s model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family, or peers.
Difficulty: 2 Medium
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
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59) A person who sees beyond authority, laws, and norms and follows his own self-chosen ethical principles is most likely to be in the ________ stage of Kohlberg’s model of cognitive moral development.
Answer: C
Explanation: People in the principled stage of Kohlberg’s model of cognitive moral development see beyond authority, laws, and norms and follow their self-chosen ethical principles.
Difficulty: 2 Medium
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
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60) Which of the following statements about the Sarbanes-Oxley Act is true?
Answer: B
Explanation: Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor confidence. The law requires companies to have more independent board directors, to adhere strictly to accounting rules, and to have senior managers personally sign off on financial results.
Difficulty: 2 Medium
Topic: Sarbanes-Oxley
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
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61) The top executives of Granite Financial have established processes to review the company’s financial dealings and communications with customers to make sure everything is legal and honest yet remain focused on profits. These processes are part of the company’s
Answer: B
Explanation: The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. For example, General Electric’s top executives have demonstrated a commitment to promoting high levels of integrity without sacrificing the company’s well-known commitment to business results.
Difficulty: 2 Medium
Topic: Ethical Climate
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
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62) Which of the following is a danger sign that organizations may be allowing or even encouraging unethical behavior?
Answer: B
Explanation: Many factors create a climate conducive to unethical behavior. Excessive emphasis on short-term revenues over longer-term considerations, failure to establish a written code of ethics, and a desire for simple, quick fix solutions to ethical problems are some signs that an organization may be allowing or even encouraging unethical behavior.
Difficulty: 2 Medium
Topic: Ethical Behavior
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
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63) Which of the following is a question associated with the “sunshine” ethical framework?
Answer: B
Explanation: One ethics suggestion is to imagine how you would feel if you saw your decision and its consequences highlighted in the media. This “light of day” or “sunshine” ethical framework can be powerful.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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64) Which of the following should be done for constructing an effective ethics code?
Answer: E
Explanation: To make an ethics code effective, do the following: involve those who have to live with the code in writing it; focus on real-life situations that employees can relate to; keep it short, simple, and easy to understand and remember; write about values and shared beliefs that people can really believe in; and set the tone at the top, having executives talk about and live up to the statement.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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65) An ethics program that is designed by corporate counsel to detect, prevent, and punish legal violations is called a(n) ________ ethics program.
Answer: B
Explanation: Ethics programs can range from compliance-based to integrity-based. Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Remember
AACSB: Ethics
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66) Compliance-based ethics programs are typically designed by
Answer: A
Explanation: Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Remember
AACSB: Ethics
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67) Compliance-based ethics programs
Answer: B
Explanation: Ethics programs can range from compliance-based to integrity-based. Compliance-based ethics programs should reduce illegal behavior and help a company stay out of court.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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68) Integrity-based ethics programs involve
Answer: C
Explanation: Integrity-based ethics programs go beyond the mere avoidance of illegality; they are concerned with the law but also with instilling in people a personal responsibility for ethical behavior. With such programs, companies and people govern themselves through a set of guiding principles that they embrace.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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69) Going beyond legal compliance with ADA standards and training people to understand that individuals with disabilities have valued abilities is an example of a(n) ________ ethics program.
Answer: B
Explanation: Integrity-based ethics programs would go further by training people to understand and perhaps change attitudes toward people with disabilities and sending clear signals that people with disabilities also have valued abilities. This effort goes far beyond taking action to stay out of trouble with the law.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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70) Making ethical decisions takes moral ________, which helps a person realize that an issue has ethical implications.
Answer: C
Explanation: Making ethical decisions takes moral awareness (realizing the issue has ethical implications), moral judgment (knowing what actions are morally defensible), and moral character (the strength and persistence to act in accordance with your ethics despite the challenges).
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Remember
AACSB: Ethics
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71) Having the strength and persistence to act in accordance with one’s ethics despite the challenges is referred to as moral
Answer: E
Explanation: Making ethical decisions takes moral awareness (realizing the issue has ethical implications), moral judgment (knowing what actions are morally defensible), and moral character (the strength and persistence to act in accordance with your ethics despite the challenges).
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Remember
AACSB: Ethics
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72) According to John Rawls, only a person ignorant of his own identity can make a truly ethical decision. This thought process is based on
Answer: C
Explanation: The philosopher John Rawls created a thought experiment based on the “veil of ignorance.” A decision maker can tactically apply the veil of ignorance to help minimize personal bias. Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
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73) The process for ethical decision making begins with
Answer: D
Explanation: Resolving ethical problems should begin with understanding the various moral standards (universalism, relativism, etc.) and recognizing the impacts of the alternatives. The final stage should ideally be proposing a convincing moral solution.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
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74) Which of the following is most likely to be the last step in an ideal ethical decision-making process?
Answer: E
Explanation: Resolving ethical problems should begin with understanding the various moral standards (universalism, relativism, etc.) and recognizing the impacts of the alternatives. The final stage should ideally be proposing a convincing moral solution.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
75) Moral judgment involves
Answer: B
Explanation: Making ethical decisions takes moral awareness (realizing the issue has ethical implications), moral judgment (knowing what actions are morally defensible), and moral character (the strength and persistence to act in accordance with your ethics despite the challenges).
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
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76) To behave ethically, an individual will require not just moral awareness and moral judgment but also
Answer: D
Explanation: Behaving ethically requires not just moral awareness and moral judgment but also moral character, including the courage to take actions consistent with one’s ethical decisions.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
77) Which of the following plays a role in the moral awareness involved in identifying an act as unethical, the moral judgment to fully consider the repercussions, and the moral character to take the ethical action?
Answer: A
Explanation: Behaving ethically requires not just moral awareness and moral judgment but also moral character, including the courage to take actions consistent with one’s ethical decisions. Courage plays a role in the moral awareness involved in identifying an act as unethical, the moral judgment to fully consider the repercussions, and the moral character to take the ethical action.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
78) Which of the following is true of whistleblowing?
Answer: D
Explanation: Whistleblowing refers to telling others, inside or outside the organization, of wrongdoing. The road for whistleblowers is rocky. When whistleblowers go public, they are often seen as acting against the company’s interests. Many, perhaps most, whistleblowers suffer consequences such as being ostracized, treated rudely, or given undesirable assignments.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
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79) Telling others, inside or outside the organization, about wrongdoing is called.
Answer: B
Explanation: Telling others, inside or outside an organization, about the organization’s wrongdoings, is called whistleblowing. When whistleblowers go public, they are often seen as acting against the company’s interests. Many, perhaps most, whistleblowers suffer consequences such as being ostracized, treated rudely, or given undesirable assignments.
Difficulty: 1 Easy
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Remember
AACSB: Ethics
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80) Corporate social responsibility is the
Answer: B
Explanation: Corporate social responsibility is the obligation toward society assumed by business. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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81) You are the president of Old Salt, a manufacturer of various snack chips. You decide to change your business approach in a way that adheres more closely to the paradigm of corporate social responsibility. Which of the following actions would you take?
Answer: D
Explanation: Corporate social responsibility is the obligation toward society assumed by business. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good. Taking more responsibility for the environment is an example of this.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Apply
AACSB: Ethics
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82) Which of the following responsibilities sits at the top of the pyramid of global corporate social responsibility and performance?
Answer: E
Explanation: Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. The philanthropic responsibility of business sits at the top of the pyramid of global corporate social responsibility and performance.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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83) ________ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
Answer: A
Explanation: Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. The economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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84) Within the pyramid of global corporate social responsibility and performance, doing what is required by global stakeholders is categorized as a(n) ________ responsibility.
Answer: B
Explanation: Legal responsibilities are to obey local, state, federal, and relevant international laws. It involves doing what is required by global stakeholders.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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85) Which of the following levels of corporate social responsibility of business includes meeting societal expectations that are not written as law?
Answer: E
Explanation: Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. Ethical responsibilities include meeting other societal expectations, not written as law.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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86) Which of the following responsibilities of business did Pork producer Smithfield Foods take on by discontinuing the practice of confining sows in gestation crates during pregnancy, even though doing so was not legally required?
Answer: C
Explanation: Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. Ethical responsibilities include meeting other societal expectations, not written as law.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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87) Which level of the pyramid of global corporate social responsibility and performance represents a company’s efforts to be a good global corporate citizen, such as supporting community programs?
Answer: D
Explanation: Philanthropic responsibilities are behaviors and activities that society finds desirable and that the values of the business support. Examples include supporting community projects and making charitable contributions.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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88) Which of the following levels of the pyramid of global corporate social responsibility and performance represents a company’s requirement to be profitable?
Answer: A
Explanation: The economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. It requires the company to be profitable.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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89) The order of the levels in the pyramid of global corporate social responsibility and performance from bottom to top is
Answer: C
Explanation: The order of the levels in the pyramid of global corporate social responsibility and performance from bottom to top is economic, legal, ethical, and philanthropic.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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90) Home Depot supports Habitat for Humanity, a nonprofit that builds affordable housing for those struggling with poverty, housing, or homelessness. Donation to such an organization is an example of ________ responsibility.
Answer: E
Explanation: Philanthropic responsibilities are additional behaviors and activities that society finds desirable and that the values of the business support. Examples include supporting community projects and making charitable contributions.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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91) A(n) ________ has five higher goals that balance self-interest with responsibility to others.
Answer: C
Explanation: Transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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92) Which of the following is a goal of a transcendent education?
Answer: C
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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93) Which of the goals of a transcendent education involves viewing success not merely as personal gain, but as a common victory?
Answer: C
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity. Mutuality means viewing success not merely as personal gain, but as a common victory.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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94) As one of the goals of a transcendent education, speaking out against unethical actions is called
Answer: E
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity. Intolerance of inhumanity means speaking out against unethical actions.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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95) As one of the goals of transcendent education, learning how to give as well as take, to others in the present as well as to those in the future is called
Answer: B
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity. Generativity refers to learning how to give as well as take, to others in the present as well as to future generations.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Remember
AACSB: Ethics
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96) Ben is hired as the head of a business school at a prominent university. He wants his instructors to give their students a transcendent education, especially concerning civil aspiration. Because of this, which of the following student assignments would Ben promote?
Answer: D
Explanation: A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of inhumanity. Civil aspiration refers to thinking not just in terms of don’ts (lie, cheat, steal, kill), but also in terms of positive contributions.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Apply
AACSB: Ethics
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97) Advocates of corporate social responsibility argue that
Answer: E
Explanation: Advocates of corporate social responsibility argue that organizations have a wider range of responsibilities that extend beyond the production of goods and services at a profit. As members of society, organizations should actively and responsibly participate in the community and in the larger environment.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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98) ________ has as its primary goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
Answer: C
Explanation: Ecocentric management has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Remember
AACSB: Ethics
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99) Economic growth and development that meet present needs without harming the needs of future generations is known as
Answer: C
Explanation: Sustainable growth is economic growth and development that meet the organization’s present needs without harming the ability of future generations to meet their needs. Sustainability is fully compatible with the natural ecosystems that generate and preserve life.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Remember
AACSB: Ethics
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100) ________ is a process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine the total environmental impact of the production and use of a product.
Answer: B
Explanation: Increasingly, firms are paying attention to the total environmental impact throughout the life cycle of their products. Life-cycle analysis (LCA) is a process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine the total environmental impact of the production and use of a product.
Difficulty: 1 Easy
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Remember
AACSB: Ethics
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Scenario A: An insurance company faces an ethical dilemma. A faulty computer program designed to evaluate insurance claims has been denying a high number of valid claims. A meeting has been arranged where senior management would decide how to handle the situation. The people at the table have varying views of what action to take and why.
Han wants to report the error and reimburse the affected customers immediately because he believes he could end up being fired if the company’s reputation suffers because of the issue.
Jamila wants to report the error because it is the honest thing to do, and therefore necessary.
After hearing his colleagues’ opinions, Keith says he is willing to do whatever the more experienced managers in the group recommend.
Several other managers believe the company should correct the problem going forward but not do anything about the customers who lost out on past payments.
101) Which of the following best describes the ethical system used by Jamila to make her decision?
Answer: A
Explanation: Universalism states that all people should uphold certain values, such as honesty, that society needs to function. Jamila makes the decision on the basis that it is the honest and necessary thing to do; therefore, universalism best describes her stance.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
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102) Which of the following best describes the ethical system used by Han to make his decision?
Answer: B
Explanation: Egoism is an ethical system defining acceptable behavior as that which maximizes benefits for the individual. In this case, Han tries to keep himself from being blamed and fired for the problem.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
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103) Which of the following best describes the ethical system used by Keith to make his decision?
Answer: D
Explanation: Relativism defines ethical behavior based on the opinions and behaviors of relevant other people. Keith makes the decision because he wants to go along with the other managers; therefore, relativism best describes his stance.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
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104) Assume the meeting ends with the managers deciding not to do anything about the customers who are owed money for past claims. Lewa, an employee who was present in the meeting, disagrees with the decision and gives an anonymous tip to a newspaper reporter about the unethical behavior. Which of the following best describes the action taken by Lewa?
Answer: A
Explanation: Whistleblowing refers to telling others, inside or outside the organization, of wrongdoing. This is what Lewa does in the given scenario.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Analyze
AACSB: Ethics
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Scenario B: Suppose a manager faces a question regarding how to handle a defective piece of equipment that his company sold. Telling the customer would cost him a substantial amount of money. At the same time, if the equipment fails, it could lead to serious injury of the customer. The manager is going to choose among three options presented by colleagues:
Option 1: Keep quiet about the defect.
Option 2: Talk to others and see what they would have done in the same situation.
Option 3: Disclose the defect and suggest alternatives because it is the honest thing to do.
105) Which of the following terms best describes the ethical approach used in option 1?
Answer: B
Explanation: Egoism is an ethical system defining acceptable behavior as that which maximizes benefits for the individual, which in this case is keeping a substantial amount of money.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
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106) Which of the following terms best describes the ethical approach used in option 2?
Answer: D
Explanation: Relativism defines ethical behavior based on the opinions and behaviors of relevant other people, which is what is being employed in option 2.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
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107) Which of the following options best describes the ethical approach used in option 3?
Answer: A
Explanation: Universalism states that all people should uphold certain values, such as honesty, that society needs to function. This is the rationale behind option 3.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Analyze
AACSB: Ethics
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Scenario C: Aparna and Eli, managers from different departments at Greater Midwest Credit Union, are discussing the troubling behavior of a credit union employee. Aparna says that it is the responsibility of high-level managers to take steps to prevent legal wrongdoing by punishing offenders. However, Eli believes that every individual should take personal responsibility for his or her own behavior and that everyone needs to understand how to do the right thing.
108) In Scenario C, each of the managers tends to be responsible for creating a different ________ in their respective departments.
Answer: B
Explanation: The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
Difficulty: 2 Medium
Topic: Ethical Climate
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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109) Which of the following types of ethics program does Aparna prefer for the company?
Answer: B
Explanation: Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations. Program elements include establishing and communicating legal standards and procedures, assigning high-level managers to oversee compliance, auditing and monitoring compliance, reporting criminal misconduct, punishing wrongdoers, and taking steps to prevent offenses in the future.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Analyze
AACSB: Ethics
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110) Which of the following types of ethics program does Eli prefer for the company?
Answer: C
Explanation: Integrity-based ethics programs go beyond the mere avoidance of illegality; they are concerned with the law but also with instilling in people a personal responsibility for ethical behavior, which Eli exhibits in the scenario.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Analyze
AACSB: Ethics
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Scenario D: Lily and Amare are colleagues who witnessed one of their team members, Elspeth, making a personal purchase over the Internet, which is prohibited in their company. The management had previously announced that those who report wrongdoing of fellow employees will be rewarded. Lily decided not to report Elspeth’s act to the management since it was done after hours. However, Amare decided to do so with the hope of being rewarded.
111) In Scenario D, according to Kohlberg’s model of cognitive moral development, Lily can be categorized as being in the ________ stage.
Answer: C
Explanation: Individuals differ in this regard. Kohlberg’s model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the principled stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.
Difficulty: 2 Medium
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
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112) In Scenario D, according to Kohlberg’s model of cognitive moral development, Amare can be categorized as being in the ________ stage.
Answer: A
Explanation: Individuals differ in this regard. Kohlberg’s model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the preconventional stage make decisions based on concrete rewards and punishments and immediate self-interest.
Difficulty: 2 Medium
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
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Scenario E: Senior management at Benbow & Garcia is attending a corporate retreat, and the first item for discussion is corporate social responsibility (CSR). The group has discussed this before and then shot it down because it generally costs Benbow & Garcia’s shareholders in the form of reduced distributions. But the new VP, Branca, is about to explain why she believes CSR will actually benefit the shareholders and Benbow & Garcia management alike. Her team begins the presentation with a discussion of CSR, both its current definition and reconciliation of past views. Sergei then discusses the importance of being a good global corporate citizen by supporting the local school system. Madison takes the floor to make the case for doing what is expected by global stakeholders even though there are no laws requiring those actions. Finally, Branca wraps the discussion up by defining why Benbow & Garcia should take legal responsibility for the firm’s performance.
113) In Scenario E, Sergei’s presentation most likely focuses on the ________ responsibility of the firm.
Answer: E
Explanation: Philanthropic responsibilities are additional behaviors and activities that society finds desirable and that the values of the business support. Sergei discussing the importance of being a good global citizen by supporting the local school system focuses on the philanthropic responsibility of the firm.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Analyze
AACSB: Ethics
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114) In Scenario E, Madison’s presentation most likely focused on the ________ responsibility of the firm.
Answer: C
Explanation: Ethical responsibilities include meeting other societal expectations, not written as law. It involves doing what is expected by global stakeholders. This is what Madison is most likely to focus on.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Analyze
AACSB: Ethics
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115) Branca’s presentation most likely centered on taking which of the following actions?
Answer: B
Explanation: Legal responsibilities are to obey local, state, federal, and relevant international laws. This is likely to have been the central theme of Branca’s presentation.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Apply
AACSB: Ethics
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116) Explain the terms ethical issue, business ethics, and moral philosophy.
Answer: An ethical issue is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong. Business ethics comprise the moral principles and standards that guide behavior in the world of business. Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Understand
AACSB: Ethics
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117) Discuss the five basic types of ethical systems and provide an example for each.
Answer: Student examples will vary but should demonstrate an accurate knowledge of the five basic types of ethical systems. Universalism states that all people should uphold certain values, such as honesty, that society needs to function. For example, a manager assumes that the hours workers put on their time cards are accurate. According to egoism, acceptable behavior is that which maximizes benefits for the individual. For example, a business owner strives to make as much money as possible from his business for his own benefit and justifies this by claiming that his approach will help society function well. Utilitarianism directly seeks the greatest good for the greatest number of people. For example, by firing 200 workers, a CEO avoids closing down his corporation, thereby enabling the remaining 500 workers to keep their jobs. Relativism defines ethical behavior based on the opinions and behaviors of relevant other people. For example, the owner of a tire-manufacturing company justifies building a factory on a wetland because several other companies in his area have made similar moves. Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good “moral character” would deem right. For instance, a CEO insists that a portion of her company’s profits are given to charities, such as Habitat for Humanity, because she believes in the importance of generosity.
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Apply
AACSB: Ethics
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118) Describe Kohlberg’s model of cognitive moral development. Give an example for each of the stages.
Answer: Student examples will vary but should demonstrate an accurate knowledge of Kohlberg’s model of cognitive moral development. Kohlberg’s model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the preconventional stage make decisions based on rewards and punishments and immediate self-interest. For example, a manager works long hours of overtime to receive a bonus, even though in the long term he harms his relationship with his family. People in the conventional stage conform to the expectations of ethical behavior held by groups or institutions such as society, family, or peers. For example, a business owner expects his employees to be honest and hard working. People in the principled stage see beyond authority, laws, and norms to follow their self-chosen ethical principles. For example, even though her factory already abides by pollution standards, a factory owner strives to cut down harmful emissions by a greater percentage to slow down global warming.
Difficulty: 3 Hard
Topic: Kohlberg’s Model
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Bloom’s: Apply
AACSB: Ethics
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119) Explain the requirements of the Sarbanes-Oxley Act, and describe how some executives have reacted to it.
Answer: Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor confidence. The law requires companies to have more independent board directors (not just company insiders), to adhere strictly to accounting rules, and to have senior managers personally sign off on financial results. Violations can result in heavy fines and criminal prosecution. One of the biggest impacts of the law was the requirement for companies and their auditors to provide reports to financial statement users about the effectiveness of internal controls over the financial reporting process. Some executives said Sarbanes-Oxley distracted from their real work and made them more risk-averse. Some complained about the time and money needed to comply with the internal control reporting—millions of dollars at big businesses. But some discovered that the effort is helping them avoid mistakes and improve efficiency.
Difficulty: 2 Medium
Topic: Sarbanes-Oxley
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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120) Contrast compliance-based ethics programs and integrity-based ethics programs.
Answer: Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations. Program elements include establishing and communicating legal standards and procedures, assigning high-level managers to oversee compliance, auditing and monitoring compliance, reporting criminal misconduct, punishing wrongdoers, and taking steps to prevent offenses in the future.
Integrity-based ethics programs go beyond the mere avoidance of illegality; they are concerned with the law but also with instilling in people a personal responsibility for ethical behavior. With such a program, companies and people govern themselves through a set of guiding principles that they embrace.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Bloom’s: Understand
AACSB: Ethics
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121) Making ethical decisions takes moral awareness, moral judgment, and moral character. Define each term and explain how you would use it in business.
Answer: Student examples will vary but should demonstrate an accurate knowledge of how ethical decisions involve moral awareness, moral judgment, and moral character. Moral awareness involves realizing that issues have ethical implications. For example, “I realize that moving part of my corporation oversees would take jobs away from people in my own country.” Moral judgment requires knowing what actions are morally defensible. For example, “I know moving part of my company oversees is morally defensible because doing so will prevent the company from shutting down, thereby preventing an increase in unemployment.” Moral character deals with the strength and persistence to act in accordance with your ethics despite the challenges. For example, “When I move part of my company oversees, I will avoid having sweatshop conditions in the foreign nation even though doing so will lessen profits.”
Difficulty: 3 Hard
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Apply
AACSB: Ethics
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122) Explain the process for ethical decision making.
Answer: The process for ethical decision making starts with understanding all moral standards and recognizing all moral impacts concerning a decision. Then define the complete moral problem. After this, determine economic outcomes, consider the legal requirements, and evaluate the ethical duties. Finally, propose a convincing moral solution.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
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123) Write an essay on whistleblowing.
Answer: Courage is needed for whistleblowing—telling others, inside or outside the organization, of wrongdoing. When whistleblowers go public, they often are seen as acting against the company’s interests. Many, perhaps most, whistleblowers suffer consequences such as being ostracized, treated rudely, or given undesirable assignments. Some organizations offer channels for employees to report ethics problems so they can deal with them internally. Ideally, the reporting method should keep the whistleblower’s identity secret, management should investigate and respond quickly, and there should be no retaliation against whistleblowers who use proper channels.
Difficulty: 2 Medium
Topic: Code of Ethics
Learning Objective: 05-03 Outline a process for making ethical decisions.
Bloom’s: Understand
AACSB: Ethics
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124) Explain the pyramid of global corporate social responsibility and performance.
Answer: The pyramid of global corporate social responsibility consists of four levels. The bottom level is economic responsibility; the second level is legal responsibility; the third level is ethical responsibility; and the top level is philanthropic responsibility. The economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. Legal responsibilities are to obey local, state, federal, and relevant international laws. Ethical responsibilities include meeting other societal expectations, not written as law, such as avoiding cruel treatment of animals. Finally, philanthropic responsibilities are additional behaviors and activities that society finds desirable and that the values of the business support. Examples include supporting community projects and making charitable contributions.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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125) Define transcendent education and explain the five higher goals associated with it.
Answer: Transcendent education involves teaching business students to leave a legacy beyond self-interest and profitability. A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy (feeling your decisions as potential victims might feel them, to gain wisdom); generativity (learning how to give as well as take, to others in the present as well as to future generations); mutuality (viewing success not merely as personal gain, but a common victory); civil aspiration (thinking not just in terms of don’ts [lie, cheat, steal, kill], but also in terms of positive contributions); and intolerance of inhumanity (speaking out against unethical actions).
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Understand
AACSB: Ethics
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126) Build a case for the convergence of profit maximization and corporate social responsibility.
Answer: Profit maximization and corporate social responsibility used to be regarded as antagonistic, leading to opposing policies. But the two views can converge. The relationship between corporate social performance and corporate financial performance is complex; socially responsible organizations are not necessarily more or less successful in financial terms. But on net, the accumulated evidence indicates that social responsibility is associated with better financial performance. Companies can avoid unnecessary and costly regulation if they are socially responsible. Such actions also can pay great dividends to the conscience, to the personal reputation, and to the public image of the company as well as in the market response. Plus, society’s problems can offer business opportunities, and profits can be made from systematic and vigorous efforts to solve these problems. Firms can perform cost–benefit analyses to identify actions that will maximize profits while satisfying the demand for corporate social responsibility from multiple stakeholders. In other words, managers can treat corporate social responsibility as they would treat all investment decisions. This has been the case as firms attempt to reconcile their business practices with their effect on the natural environment.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Bloom’s: Evaluate
AACSB: Ethics
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127) Explain how environmental issues and sustainability can be business opportunities rather than burdens.
Answer: Business used to look at environmental issues as a no-win situation; you either help the environment and hurt your business or help your business at a cost to the environment. But now a paradigm shift is taking place in corporate environmental management: the deliberate incorporation of environmental values into competitive strategies and into the design and manufacturing of products. In addition to philosophical reasons, companies go green to satisfy consumer demand, to react to a competitor’s actions, to meet requests from customers or suppliers, to comply with guidelines, and to create competitive advantage.
General Electric CEO Jeff Immelt used to view environmental rules as a burden and a cost. Now he sees environmentally friendly technologies as one of the global economy’s most significant business opportunities. Through its Ecomagination program, GE has invested over $17 billion in clean tech R&D that help solve environmental problems. Its solutions include wind turbines, materials for solar energy cells, and energy-efficient home appliances. These have delivered $232 billion in revenue, a green image for the GE brand, and a leadership position for the company in many rapidly growing markets including high-efficiency jet engines and locomotives.
Difficulty: 3 Hard
Topic: Corporate Social Responsibility
Learning Objective: 05-05 Discuss reasons for businesses’ growing interest in the natural environment.
Bloom’s: Analyze
AACSB: Ethics
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128) Explain the idea of a risk society.
Answer: We live in a risk society because the creation and distribution of wealth generates by-products that can cause injury, loss, or danger to people and the environment. The fundamental sources of risk in modern society are the excessive production of hazards and ecologically unsustainable consumption of natural resources. Risk has proliferated through population explosion, industrial pollution, and environmental degradation.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-05 Discuss reasons for businesses’ growing interest in the natural environment.
Bloom’s: Understand
AACSB: Ethics
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129) Explain life-cycle analysis and how organizations are using it to pay more attention to the total environmental impact.
Answer: Life-cycle analysis (LCA) is a process of analyzing all inputs and outputs, through the entire cradle-to-grave life of a product, to determine the total environmental impact of the production and use of a product. LCA quantifies the total use of resources and the releases into the air, water, and land. Reporting worldwide carbon footprints is a big step in environmental reporting in that industry. For example, apparel maker Patagonia uses LCA to analyze the carbon footprint at each stage of its supply chain from farm to factory
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Understand
AACSB: Ethics
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130) Discuss ecocentric management.
Answer: Ecocentric management has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders. Sustainable growth is economic growth and development that meet the organization’s present needs without harming the ability of future generations to meet their needs. Sustainability is fully compatible with the natural ecosystems that generate and preserve life.
Difficulty: 2 Medium
Topic: Corporate Social Responsibility
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Bloom’s: Understand
AACSB: Ethics
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Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
