Deck 6: Managing Ethics and Social Corporate Governance

Question 1

Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.

Answer 1

False

Question 2

The ethical concept that acts are moral when they promote the individual's best long term interests,which ultimately leads to the greater good,is known as the moral rights approach.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

The basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco consumption on the job is called the utilitarian ethic.

Question 5

Individuals in the preconventional level of Personal Moral Development live up to expectations of others,uphold laws and fulfill duties and obligations of the social system.

Question 6

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

Question 7

Compensatory justice argues that an employee's compensation should be based on individual performance.

Question 8

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

Question 9

Although public confidence in business managers is at an all-time low,politics,sports and non-profit organizations have not been affected.

Question 10

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

Question 11

If something is ethical,it must not be illegal.

Question 12

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

Question 13

Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models for others.

Question 14

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

Question 15

Level 3 of the Personal Moral Development model is Conventional.

Question 16

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

Question 17

The virtue ethics approach to ethical decision making sidesteps debates about what is right,good or just and bases decisions on prevailing standards of the profession and the larger society,taking the interests of all stakeholders into account.

Question 18

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

Question 19

Utilitarian,individualism and moral-rights are approaches that guide ethical decision-making.

Question 20

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

Question 21

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

Question 22

Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.

Question 23

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

Question 24

Important stakeholders in corporations include the government and the community.

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

Economic responsibility,carried to the extreme,is called the profit-maximizing view.

Question 32

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

Question 33

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

Question 34

Discretionary responsibility is purely voluntary.

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

Which of the following is NOT a normative ethics approach?

A) Utilitarian approach
B) Individualism approach
C) Concurrency control approach
D) Moral-rights approach
E) All of these above four are normative approaches.

Question 42

_____ to ethical decision-making is consistent with free consent,privacy,freedom of conscience and free speech.

A) Moral-rights approach
B) Individualism approach
C) Utilitarian approach
D) Justice approach
E) Dual-economic approach

Question 43

A normative approach to ethical decision making:

A) reduces ethical dilemmas to easy-to-understand formulas.
B) uses various approaches to describe and provide guiding values for decisions.
C) states that everyone must use their employer's value system at work.
D) dictates only one way to choose to resolve dilemmas.
E) none of these.

Question 44

The firm decision by ABC International to downsize and reduce its labour force is in the:

A) domain of codified law.
B) domain of free choice.
C) domain of ethics.
D) sphere of social responsibility.
E) none of these.

Question 45

In a mixed market economy an organization's decision to produce a new product is in the:

A) domain of codified law.
B) domain of free choice.
C) domain of ethics.
D) domain of compensatory justice.
E) domain of social responsibility.

Question 46

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

Question 47

The __________ approach is the ethical concept that moral behaviours produce the greatest good for the greatest number?

A) Defensive
B) Justice
C) Utilitarian
D) Individualism
E) Moral-rights

Question 48

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

Question 49

When everyone is pursuing self-direction,the greater good is ultimately served because people learn to accommodate each other in their own long-term interest.This is proposed by the __________ approach:

A) utilitarian
B) individualism
C) moral-justice
D) justice
E) social responsibility

Question 50

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

Question 51

Human beings have fundamental rights and liberties that cannot be taken away by another individual's decision.This ethical decision making approach is known as the:

A) utilitarian approach.
B) individualism approach.
C) moral-rights approach.
D) dualism approach.
E) none of these.

Question 52

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

Question 53

A new drug has not yet been approved by the USA's agency the FDA to sell in the USA because further clinical testing is needed.The company has a chance to sell its product in another country immediately,recovering some of the costs of R & D and production will then be three years ahead of time.This example places the decision in which of the following categories.

A) The ethical domain
B) The domain of free choice
C) The legal domain
D) The obstructive category
E) The protective domain

Question 54

Managers are often concerned good citizenship will hurt performance.

Question 55

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

Question 56

Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job,such as misuse of social media

A) Justice approach
B) Utilitarian approach
C) Individualism approach
D) Moral-justice approach
E) Discretionary responsibility

Question 57

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

A) individualism approach
B) justice approach
C) utilitarian approach
D) moral-rights approach
E) discretionary responsibility approach

Question 58

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

A) The right to free consent.
B) The right to invade privacy.
C) The right to free speech.
D) The right of freedom of conscience.
E) The right to life and safety.

Question 59

A situation that arises when all alternative choices or behaviours have been analyzed of their potentially negative ethical consequences,making it difficult to distinguish right from wrong,is considered to be:

A) a moral agency.
B) a social responsibility.
C) an ethical dilemma.
D) an ethical standard.
E) a discretionary responsibility.

Question 60

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

A) Self-dealing
B) Free domain
C) Ethics
D) Codified law
E) Opportunism

Question 61

Regarding the various levels of personal moral development,the majority of managers operate at the _____ level.

A) preconventional
B) autocratic
C) postconventional
D) conventional
E) transformative

Question 62

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

A) Everybody else is doing it,so it must be okay.
B) What would my boss think if I did this?
C) I know this is not right,and I will not do it,even if everyone else is.
D) What benefits am I going to get from making this moral decision?
E) a to c inclusive.

Question 63

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

A) Empowered employees,full participation
B) Task accomplishment
C) Act in own interest
D) Work group collaboration
E) Autocratic

Question 64

____ is NOT included in the model of personal moral development as described by Daft et al.

A) Preconventional level
B) Conventional level
C) Principled level
D) Postconventional level
E) All of these are included in the above model

Question 65

Which of these employee behaviours matches well with the conventional level of personal team based moral development?

A) Task accomplishment
B) Empowered employees
C) Work group collaboration
D) Full participation
E) Act in own interest

Question 66

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

A) autocratic
B) team oriented
C) servant leadership
D) guiding/encouraging
E) transforming

Question 67

The concept that the party responsible should pay individuals financially for the cost of their injuries is referred to as:

A) distributive justice.
B) injury justice.
C) procedural justice.
D) organizational justice.
E) compensatory justice.

Question 68

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

A) social responsibility
B) free choice
C) law
D) discretionary corporate responsibility
E) business ethics

Question 69

Most people have learned to conform to expectations of good behavior being those expected by colleagues,family,friends,and society.They are in what stage of moral development?

A) Preconventional
B) Conventional
C) Discretionary
D) Principled
E) Traditional

Question 70

Any group within or outside the organization that has a stake in the organization's performance is called:

A) a supplier.
B) an international customer.
C) a stakeholder.
D) OPEC.
E) a trade association.

Question 71

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

A) Preconventional
B) Conventional
C) Principled
D) Discretionary
E) None of these

Question 72

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

A) are in the preconventional level of moral development.
B) are in the conventional level of moral development.
C) are in the principled level of moral development.
D) do not care what people think of them.
E) none of these.

Question 73

Performing experimental treatment on unconscious trauma patients is mostly the violation of their:

A) right of free consent.
B) right to privacy.
C) right of freedom of conscience.
D) right of free speech.
E) right of due process.

Question 74

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

A) Preconventional
B) Conventional
C) Principled
D) Discretionary
E) Social

Question 75

Which of these refers to procedural justice?

A) The concept that different treatment of people should not be based on arbitrary characteristics.
B) The concept that rules should be clearly stated and consistently and impartially enforced.
C) The concept that individuals should be compensated for the cost of their injuries by the party responsible.
D) The concept that people should be treated differently.
E) None of these.

Question 76

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

A) Procedural justice
B) Compensatory justice
C) Distributive justice
D) Organizational justice
E) Moral-justice

Question 77

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

A) moral-rights approach.
B) individualism approach.
C) utilitarian approach.
D) justice approach.
E) discretionary responsibility.

Question 78

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

A) I won't do that because the boss will be upset with me.
B) Everybody else is doing it,so it must be okay.
C) I know this is not right,and I will not do it,even if everyone else is.
D) What am I going to get from making this decision?
E) All of these.

Question 79

_____ matches well with the preconventional level of personal moral development.

A) Work group collaboration
B) Task accomplishment
C) Empowered employees
D) Full participation
E) Transforming

Question 80

_____ leadership matches well with the postconventional level of personal moral development.

A) Team oriented
B) Autocratic
C) Guiding/encouraging
D) Coercive
E) Servant