Deck 4: Ethics and Corporate Responsibility

Question 1

________ is an ethical system which states that all people should uphold certain values that society needs to function.

A) Egoism
B) Relativism
C) Universalism
D) Ethnocentrism
E) Utilitarianism

Answer 1

C

Question 2

It is a common perception that business leaders use illegal means to gain competitive advantage or improve their personal positions.

Answer 2

True

Question 3

According to egoism, an ethical system,

A) individual self-interest is the actual motive of all conscious action.
B) all people should uphold certain values that society needs to function.
C) ethical behavior is based on the opinions and behaviors of relevant other people.
D) the greatest good for the greatest number should be the overriding concern of decision makers.
E) the welfare of the underprivileged should be the overriding concern of decision makers.

Answer 3

A

Question 4

The notion of ________, an ethical system, is similar to Adam Smith's concept of the invisible hand in business.

A) utilitarianism
B) universalism
C) egoism
D) relativism
E) humanitarianism

Question 5

________ refers to the moral principles and standards that guide the behavior of an individual or group.

A) Prioritization
B) Ethics
C) Corporate legitimacy
D) Theology
E) The legal system

Question 6

Employees, organizations, and communities thrive over the long term when managers apply ethical standards that direct them to act with integrity.

Question 7

An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically.

Question 8

A company can easily avoid environmental issues because the creation and distribution of wealth generates very few by-products.

Question 9

According to current business and academic thinking about ethics and corporate responsibility,

A) managers can benefit their organizations only by growing profits.
B) managers are not responsible for behaving ethically when dealing with their stakeholders.
C) managers can benefit their organizations by growing profits as well as behaving ethically toward stakeholders.
D) managers must emphasize ethical behavior toward stakeholders at the cost of growing profits.
E) profits and ethical behavior cannot go hand in hand.

Question 10

A(n) ________ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.

A) ethical standard
B) ethical issue
C) business norm
D) personal right
E) moral right

Question 11

The economic responsibilities of business include satisfying its obligations to investors.

Question 12

________ refers to the principles, rules, and values people use in deciding what is right or wrong.

A) Corporate legislation
B) Business responsibility
C) Moral philosophy
D) Sustainability index
E) Ecocentric management

Question 13

Delilah, an employee in a company, is facing a situation in which she must choose between going along with her colleagues and filling out inaccurate feedback against a new employee or informing her manager about the malpractice. In this context, Delilah is faced with a(n)

A) moral rights issue.
B) ethical issue.
C) diversity issue.
D) corporate social responsibility.
E) human rights violation.

Question 14

Business ________ are the moral principles and standards that guide behavior in the world of business.

A) norms
B) strategies
C) goals
D) ethics
E) politics

Question 15

Two basic ethical ideals underpin the Caux Principles for Business. They are

A) right and wrong.
B) shinpai suna and corporate social responsibility.
C) profits and pride.
D) kyosei and human dignity.
E) self-fulfillment and happiness.

Question 16

Vivian had differences of opinion with her boss, who discriminated against employees based on their ethnicity and social background. In one instance, her boss falsely accused a member of a minority group of fraud. Vivian took this up to the top management because she believed all members of the organization should uphold some values for it to function well. Vivian was following the ________ ethical system.

A) egoism
B) ethnocentrism
C) communism
D) relativism
E) universalism

Question 17

According to the Caux Principles for Business, the ethical ideal of kyosei means

A) deciding what is right by using a set of rules and regulations.
B) being aware of moral situations and acting accordingly.
C) accepting the moral constraints of living in a society.
D) living and working together for the common good.
E) recognizing the intrinsic worth of every human being.

Question 18

According to the ethical system of utilitarianism,

A) some values must always be upheld, regardless of the consequences.
B) societal rules or customs should be used to mold values.
C) society will be enhanced if we all take care of ourselves and do not harm others.
D) individuals might choose between conflicting values by tallying the final results of the various acts.
E) seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

Question 19

Life cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water, and land.

Question 20

Lena uses certain principles, rules, and values such as honesty, compassion, and integrity in her daily life to determine what is right or wrong. Thus, Lena uses ________ when making decisions.

A) moral philosophy
B) moral right
C) business ethics
D) autocracy
E) egoism

Question 21

According to Kohlberg's model of cognitive moral development, people in the ________ stage make decisions based on concrete rewards and punishments and immediate self-interest.

A) conventional
B) principled
C) preconventional
D) utilitarian
E) universal

Question 22

According to Kohlberg's model of cognitive moral development, people in the ________ stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.

A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

Question 23

Kelvin prefers gymnastics to music. However, he agrees to attend music lessons because his parents want him to become a musician. According to Kohlberg's model of cognitive moral development, Kelvin resides in the ________ stage.

A) preconventional
B) universal
C) conventional
D) principled
E) utilitarian

Question 24

Virtue ethics

A) suggests that what is moral comes from what a mature person with good "moral character" would deem right.
B) bases ethical behavior on the opinions and behaviors of relevant other people and focuses on what peers think is right.
C) states that rights and wrongs cannot be decided by a few good people alone.
D) implies that individuals have the right to decide what is good for themselves.
E) holds that individual self-interest is the actual motive of all conscious action.

Question 25

________ is the ethical system wherein one seeks the greatest good for the greatest number of people.

A) Egoism
B) Virtue
C) Relativism
D) Utilitarianism
E) Morality

Question 26

An example of an unconscious bias is that managers

A) hire people who are unlike them, since opposites attract.
B) think they are immune to conflicts of interest.
C) take less credit than they deserve.
D) take blame themselves instead of blaming others.
E) act only in an ethical manner.

Question 27

A tenet of ________ is that all people should uphold certain values, such as honesty and other values that society needs to function.

A) egoism
B) universalism
C) utilitarianism
D) relativism
E) virtue

Question 28

Ben, a teenager, helps his grandmother by bringing in her weekly supplies and taking out the garbage, only if he receives a weekly allowance from his parents. According to Kohlberg's model of cognitive development, he resides in the ________ stage.

A) conventional
B) principled
C) preconventional
D) postconventional
E) universal

Question 29

Sheila usually makes decisions based on what her friends would expect her to do. Therefore, Sheila's actions usually reflect her use of the ________ ethical system.

A) egoism
B) utilitarianism
C) relativism
D) universalism
E) humanitarianism

Question 30

Cindy is meeting with Tess, her subordinate, to prepare Tess for her first performance appraisal. Cindy informs Tess that her performance will be based upon her results, her behavior, and her ________. Tess asks, "What do you mean by ________?" Cindy replies, "Your principles of conduct, including fairness, loyalty, and honesty."

A) competency
B) courage
C) experience
D) values
E) work ethic

Question 31

In the context of universalism, kyosei and human dignity are the two basic ideals underpinning the ________ Principles for Business.

A) Sachs
B) Freeman
C) Smith & Nephew
D) Caux
E) Madoff

Question 32

Kim, a scientist working in the research department of Corals Cosmetics, is asked to not report the ill-effects of using a new product that Corals has decided to launch. Kim's boss offers a pay hike and a permanent job in exchange for skipping a few details in the report. Kim refuses to do this and asks him to withhold the product from entering the market. According to Kohlberg's model of cognitive moral development, Kim resides in the ________ stage.

A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

Question 33

________, an ethical system, defines ethical behavior according to how others behave.

A) Totalitarianism
B) Relativism
C) Universalism
D) Utilitarianism
E) Egoism

Question 34

According to Kohlberg's model of cognitive moral development, people in the conventional stage conform to the

A) expectations of ethical behavior held by groups or institutions.
B) personal self-interests of groups of people.
C) rules of government that lead people.
D) self-chosen ethical principles regardless of others.
E) decisions based on immediate self.

Question 35

The ________ ethical system acknowledges the existence of different ethical viewpoints.

A) relativism
B) utilitarianism
C) egoism
D) universalism
E) totalitarianism

Question 36

A tenet of ________ is that ethical behavior is based on the opinions and behaviors of associated people.

A) egoism
B) utilitarianism
C) relativism
D) virtue
E) morality

Question 37

In Kohlberg's model of cognitive moral development, the ________ stage follows the conventional stage.

A) compliant
B) principled
C) preconventional
D) utilitarian
E) egoistic

Question 38

Cassie conforms to the norms established by her church and ensures that her behavior always meets the expectations set forth by her parents and the church. According to Kohlberg's model of cognitive moral development, she resides in the ________ stage.

A) utilitarian
B) principled
C) preconventional
D) conventional
E) postconventional

Question 39

According to relativism, in an ethical system,

A) individual self-interest is the actual motive of all conscious action.
B) the greatest good for the greatest number should be the overriding concern of decision makers.
C) ethical behavior is defined based on the opinions and behaviors of associated people.
D) all people should uphold certain values that society needs to function.
E) the welfare of the underprivileged should be the overriding concern of decision makers.

Question 40

When faced with an ethical issue in business, people must rely on

A) the accounting department.
B) laws enacted by the government.
C) religious beliefs.
D) gut feelings.
E) moral philosophy.

Question 41

Compliance-based corporate ethics programs

A) are designed to instill in people a personal responsibility for ethical behavior.
B) increase surveillance and controls on people and impose punishments on wrongdoers.
C) go beyond the mere avoidance of illegality.
D) help companies and people govern themselves through a set of guiding principles.
E) are not concerned with the legal repercussions of unethical behavior.

Question 42

Kendrick reported that the industrial wastewater treatment system operated by his employer was no longer operating properly, allowing toxics-laden water to be discharged to the river. He was pleased to see the plant manager, Susan, immediately shut down production for an indefinite period, pending repair of the wastewater treatment system. Susan demonstrated

A) excessive emphasis on short-term revenues.
B) responsiveness to shareholders at the expense of other constituencies.
C) a desire for simple and expedient solutions to ethical problems.
D) consideration of ethics solely as a legal issue or a public relations tool.
E) willingness to take an ethical stand that may impose financial costs.

Question 43

The primary focus of compliance-based ethics programs is on

A) creating awareness about ethical issues.
B) giving tools to make ethical decisions.
C) detecting and punishing legal violations.
D) increasing individual ethical responsibility.
E) training employees on financially viable methods.

Question 44

A(n) ________ ethics program is designed to instill in people a personal responsibility for ethical behavior.

A) integrity-based
B) competency-based
C) legality-based
D) efficiency-based
E) results-based

Question 45

In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking, and behavior when

A) every employee has signed the code of ethics.
B) top management has a personal commitment to responsible ethical behavior.
C) employees see top managers go unpunished for their wrongdoings.
D) managers use punishment to motivate employees to "be good."
E) managers use humiliation and bullying to prevent bad behavior.

Question 46

Integrity-based ethics programs in business organizations

A) are designed by corporate counsel to prevent, detect, and punish legal violations.
B) increase surveillance and controls on people and impose punishments on wrongdoers.
C) are based upon the premise that companies and people govern themselves through a set of guiding principles that they embrace.
D) include establishing and communicating legal standards and procedures.
E) include assigning high-level managers to ensure compliance among employees.

Question 47

To avoid fines and criminal prosecution, it is a common perception that business leaders use

A) accurate accounting.
B) middle managers as sign off for personnel.
C) independent board of directors.
D) illegal means to gain competitive advantage.
E) off-putting personnel policies.

Question 48

Choose the true statement regarding unethical corporate behavior.

A) Unethical corporate behavior is the sole responsibility of unethical individuals.
B) Managers must adhere to firm standards in different cultural contexts rather than decide when relativism is appropriate.
C) Business ethics are shaped exclusively by laws and by individual development and virtue.
D) Companies with international activities find it easier to maintain a positive ethical climate.
E) Unethical corporate behavior reveals a company culture that is ethically lax.

Question 49

Katelyn, a graphic artist at an advertising firm, realizes that the head designer, Robert, has been copying designs from the Internet and passing them off as his own. Katelyn informs the marketing head about this, which leads to Robert getting fired. However, after this event, Katelyn is ostracized by her coworkers. This indicates that the organization has a poor

A) strategic objective.
B) span of control.
C) ethical climate.
D) distribution policy.
E) administrative framework.

Question 50

A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to

A) develop a compliant workforce in the organization.
B) establish an ethnocentric work environment in the organization.
C) increase punitive actions against wrongdoers in the organization.
D) stay away from ethical dilemmas in the organization.
E) create an ethical climate in the organization.

Question 51

The Sarbanes-Oxley Act

A) levelized import tariffs to prevent fraudulent behavior.
B) prohibited commercial banks from participating in the investment banking business to prevent unethical lending.
C) prohibited corrupt foreign business practices, for example, bribing of foreign government officials.
D) removed barriers in the market among banking companies to prevent unethical insider trading.
E) established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.

Question 52

CEO pay packages, wages, antibrand attitudes, and religion at work are some of the ________ that challenge American managers and employees today.

A) personal issues
B) ethical dilemmas
C) market issues
D) cognitive conflicts
E) business malpractices

Question 53

In the context of business ethics, an ethical leader

A) lets ethics be managed by benign neglect.
B) has a strong personal character.
C) should solely focus on being a moral manager.
D) is quick to take credit for the accomplishments of his subordinates.
E) places personal interest before the common good of the organization.

Question 54

In the context of business ethics,

A) the Sarbanes-Oxley Act requires all private companies to disclose their financial statements.
B) the statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show.
C) ethical codes focus exclusively on employee conduct and avoid subjects such as the environment, technology, and political activity.
D) the code of ethics is drawn up by an organization's administrative department.
E) executives pay the most attention to their company's code of ethics when their senior managers instruct them to do so.

Question 55

In the context of corporate ethics programs, ethics committees

A) develop policies, evaluate actions, and investigate violations.
B) resort to punitive measures to deal with all ethical issues.
C) take disciplinary action against whistleblowers.
D) work to cover the unethical acts committed by the organization.
E) encourage eavesdropping as a means of gathering information about employees.

Question 56

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) ________ ethics program.

A) integrity-based
B) compliance-based
C) rule-based
D) law-based
E) conformity-based

Question 57

Managers need to ________ so that employees will discuss problems in meeting goals, rather than resorting to unethical and possibly illegal behavior.

A) incentivize employees to achieve goals at all costs
B) penalize employees for failure to achieve goals
C) maintain accurate records of employee performance results
D) lavishly reward high achievers
E) keep the lines of communication open

Question 58

________ ethics programs are designed by corporate counsel to prevent legal violations.

A) Integrity-based
B) Compliance-based
C) Competency-based
D) Awareness-based
E) Responsibility-based

Question 59

A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Because the company followed a(n) ________ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people.

A) competency-based
B) conformity-based
C) rule-based
D) integrity-based
E) compliance-based

Question 60

The ________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

A) distribution policy
B) ethical climate
C) strategic objective
D) legal responsibility
E) span of control

Question 61

Whole Life Spa believes in meeting societal expectations whether or not mandated by law. It uses only organic products that are environmentally friendly. Whole Life Spa is operating at the ________ level of the pyramid of corporate social responsibility.

A) philanthropic
B) legal
C) economic
D) ethical
E) administrative

Question 62

Moral awareness begins with

A) the strength to act.
B) considering whether a decision has ramifications.
C) personal self-interest.
D) self-chosen ethical principles.
E) knowing what actions are morally defensible.

Question 63

In the context of the business costs of ethical failures, Level 1 costs that are less damaging and get more executive attention are the costs of

A) government fines and penalties.
B) remedial education.
C) corrective actions.
D) loss of reputation.
E) employee turnover and replacement.

Question 64

Using online platforms means all of the following EXCEPT

A) e-mail.
B) drop boxes.
C) telephone hotlines.
D) third-party organizations.
E) web-based tools

Question 65

In the context of making ethical decisions, knowing what actions are morally defensible is referred to as moral

A) awareness.
B) judgment.
C) character.
D) right.
E) characteristic.

Question 66

John, a sales manager, has a difficult ethical decision to make regarding one of his clients. In evaluating his ethical duties, he knows that ________, among other criteria.

A) he must not take actions that will be financially detrimental to his employer or his client
B) he must be willing to take action that is illegal
C) he would need to be proud of seeing his decision or action reported in the newspaper
D) his decision must not negatively affect his employer's business relationship with the client
E) he will need to communicate his decision to his employer's other clients

Question 67

Corporate social responsibility refers to

A) taking an active role in training employees to be productive.
B) the obligation toward society assumed by businesses.
C) just following the laws that govern the industry in which a company operates.
D) encouraging cost reduction to increase return to investors.
E) maximizing shareholder wealth.

Question 68

In the context of corporate social responsibility, ________ responsibilities are to obey local, state, federal, and relevant international laws.

A) economic
B) legal
C) moral
D) philanthropic
E) ethical

Question 69

The concept of ________ holds that only a person unaware of his or her own identity can make a truly ethical decision.

A) the "sunshine" ethical framework
B) a transcendent education
C) the "veil of ignorance"
D) "strategic philosophy"
E) the "light of day" principle

Question 70

Some organizations have platforms that allow employees to provide anonymous feedback about the work and behavior of colleagues and seniors. The primary purpose of such methods is

A) environmental preservation.
B) protection of whistleblowers.
C) punitive action against sexual harassers.
D) protection of human rights.
E) increase in workforce diversity.

Question 71

SmartWrite Inc., a manufacturer of designer journals and notebooks, switched to using recycled paper to manufacture its products. It also changed the design in a way that the book covers and spiral cords used as spines were not made out of plastic. The changes made by SmartWrite Inc., are an example of ________ responsibility.

A) philanthropic
B) legal
C) economic
D) corporate social
E) shareholder

Question 72

In the context of corporate social responsibility, ________ responsibility involves meeting other societal expectations that are not written as law.

A) economic
B) legal
C) human rights
D) ethical
E) fiscal

Question 73

In the context of making ethical decisions, moral ________ is the strength and persistence to act in accordance with one's ethics despite the challenges.

A) certainty
B) awareness
C) judgment
D) character
E) actionability

Question 74

A supervisor of a retail outlet is facing an ethical dilemma. She uses the formal process of ethical decision making to resolve the issue. Her first step will be

A) defining the complete moral problem.
B) determining the legal requirements.
C) understanding all the moral standards.
D) proposing a convincing moral solution.
E) evaluating the success of the solution.

Question 75

In the context of corporate social responsibility, ________ responsibility includes additional behaviors and activities that society finds desirable and that the values of the business support.

A) economic
B) legal
C) ethical
D) philanthropic
E) political

Question 76

In the context of the business costs of ethical failures, ________ is incurred at Level 3.

A) employee cynicism cost
B) administrative and audit cost
C) cost of remedial education
D) cost of corrective actions
E) cost of government oversight

Question 77

Joshua, a manager, is considering having to lay off Tom, because Tom's skills no longer match the company's needs in the face of a changing marketplace. Tom is a popular employee who participates in many office social gatherings and company-sponsored charitable events. Joshua knows that letting Tom go would have a huge negative impact on the other employees and that there would likely be unintended consequences of his decision. In the context of making an ethical decision, this stage is known as moral

A) certainty.
B) ability.
C) awareness.
D) judgment.
E) characterization.

Question 78

In the context of corporate social responsibility, supporting community projects and making charitable contributions are examples of ________ responsibility.

A) economic
B) legal
C) ethical
D) philanthropic
E) political

Question 79

The ________ 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.

A) economic
B) legal
C) ethical
D) political
E) philanthropic

Question 80

Roxie, a recently-appointed frontline manager, has always been praised for her moral awareness, judgment, and character. However, turning in her own boss, a division manager, for fraudulent behavior will be very difficult for her to do. Roxie knows that she will need to draw upon every bit of ________ that she can muster.

A) self-righteousness
B) candor
C) tact
D) courage
E) defiance