Deck 4: Corporate Social Responsibility, Ethics, and Sustainability

Question 1

In the context of corporate social responsibility, which of the following statements is a proposition of the Davis model that relates to how businesses should interact with society?

A) Business interests are independent of societal issues and should be analyzed separately.
B) Businesses should avoid intervening in the development of society.
C) Businesses must help solve societal issues that may be outside their normal realm of action.
D) Businesses must handle the social costs related to each product or service they provide to consumers.

Answer 1

C

Question 2

The Davis model of corporate social responsibility states that the social costs related to each activity, product, or service shall be passed on to the consumer. This implies that

A) businesses have a significant impact on societal issues such as environmental pollution and minority employment.
B) business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.
C) business institutions have the responsibility to become involved in certain social problems that are outside their normal areas of operation.
D) consumers must be ready to buy services from businesses to help them maintain operational functions.

Answer 2

D

Question 3

Which of the following is the primary effect of teaching supervisors about the importance of ethics?

A) It improves productivity in an organization.
B) It helps supervisors in eliminating quality control processes.
C) It helps supervisors enhance their human relations skills.
D) It promotes social responsibility in an organization.

Answer 3

D

Question 4

Which of the following is a benefit that is most closely associated with ethical behavior?

A) The right to undermine a trade embargo
B) The reduction of public pressure for government regulation
C) The improvement of group cohesiveness in a diverse group
D) The rightful acceptance of gifts that fall outside federal government regulations

Question 5

Boris, a production manager at Flensel Inc., asks his subordinates to learn how to distinguish what is morally right. In the context of corporate social responsibility, Boris is talking about the importance of ________.

A) nepotism
B) ethics
C) codes
D) delegation

Question 6

Ethical behavior is part of a range of behaviors that ensure

A) the preservation of informal culture in a company.
B) optimum returns on the investments of a company.
C) an organization's long-term health and success.
D) the financial growth of a few employees in an organization.

Question 7

Which of the following statements is the definition of ethics?

A) The moral obligation to protect the monetary interests of an organization at all costs
B) The principles by which people distinguish what is morally right
C) The values that help people understand cultural differences
D) A pattern of behavior related to employees' positions in a group

Question 8

Which of the following is a disadvantage most closely associated with organizations whose employees are unethical?

A) Decrease in social loafing
B) Decreased instances of bid rigging
C) Loss of qualified employees
D) Increase in groupthink

Question 9

Shelley is an accountant at an aerospace company that is going through a financial crisis. To make it seem like the company is still profitable, she manipulates the company's financial data. However, this manipulation is against the standards of accounting. In this scenario, Shelley is guilty of

A) unethical behavior.
B) bribery.
C) social loafing.
D) nepotism.

Question 10

Corporate social responsibility is best defined as the

A) degree to which employees adhere to the organization's written statement of its values and rules for ethical behavior.
B) managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization.
C) ability to understand cultural differences, which helps businesspeople interpret behavior accordingly and act socially.
D) set of customs, processes, laws, policies, and institutions that affect the way a company is directed or controlled.

Question 11

Maya, the CEO of Xyno Composites, introduces training programs to educate her employees on how to distinguish between moral and immoral behaviors. In the context of corporate social responsibility, the changes introduced by Maya are intended to improve her company's ________.

A) ethical practices
B) environmental impact
C) short-term profits
D) production methods

Question 12

In the context of the Davis model of corporate social responsibility, it is important for businesses to act in socially responsible ways because businesses

A) have a significant impact on societal issues such as environmental pollution and minority employment.
B) form a central core from which communities derive their social values.
C) can then focus solely on the degree of economic profit to be earned and thus gain social power.
D) have a social obligation to create goods and services for the masses.

Question 13

In the context of the benefits of ethical behavior, ethics helps in

A) eliminating quality control processes.
B) eliminating corporate responsibilities.
C) distinguishing right from wrong.
D) deciphering an organization's productive trends.

Question 14

Companies that practice ethical behavior

A) are likely to perform well in stock trading.
B) have relatively low return on investment.
C) almost always take a long time to optimize profits.
D) impose strict regulations on employees.

Question 15

According to the Davis model of corporate social responsibility, businesses need to help solve societal issues that may be outside their normal realm of action because

A) all businesses have a legal obligation to solve societal issues that are outside their realm of action.
B) it will help businesses circumvent legal issues in the future.
C) businesses can increase their profits by solving societal issues.
D) businesses form a central ethical core from which communities derive their social values.

Question 16

Being an ethical organization helps in

A) creating an artificial demand to sell goods.
B) improving the conceptual skills of employees.
C) reducing unnecessary process costs.
D) maintaining a reputation for high standards.

Question 17

The Davis model of corporate social responsibility proposes that businesses must listen to the public to understand what can be done to improve society as a whole because businesses

A) are obliged to sacrifice their profits in the pursuit of solving societal issues within their realm of action.
B) are responsible for ensuring the functioning of society.
C) have power and must act in socially responsible ways.
D) cannot see operational profits until societal issues preventing them from developing are solved.

Question 18

Identify a true statement about ethical business practices.

A) When an organization behaves ethically, the government decreases the taxes enforced on its profits.
B) Behaving ethically results in short-term gains but costs an organization long-term sustainability and profitability.
C) Investors tend to be more interested in companies that have a good track record of ethical behavior.
D) To establish an ethical work culture, an organization must sacrifice short-term profits and focus exclusively on establishing socially and environmentally responsible practices.

Question 19

Which of the following is true of business ethics?

A) Ethical standards are universal in nature.
B) Supervisors should refrain from balancing between meeting an organizational goal and benefitting society at the same time.
C) Business ethics is an insignificant issue unless one gets caught.
D) Ethical behavior can improve an organization's relations with the community.

Question 20

Which of the following is a proposition of the Davis model of corporate social responsibility?

A) Whistle-blowers should be identified and prevented from disturbing the work culture of organizations.
B) Business shall operate as a one-way system, with open receipt of inputs from society but controlled disclosure of its operations to the public.
C) The social costs related to each activity, product, or service shall be passed on to the consumer.
D) Business institutions do not have the responsibility to become involved in any social problem that is outside their normal areas of operation.

Question 21

Meeting high ethical standards is likely to be most challenging for

A) people who support political ideologies.
B) women who have to put up with more hardships than men.
C) people who work in publicly traded companies.
D) those who work with people from more than one culture.

Question 22

Which of the following is the reason why employees in organizations feel high ethical standards are of less importance?

A) Practicing ethical standards always conflicts with the productivity goals of companies.
B) Companies often focus more on measuring productivity than on practicing ethical standards.
C) Employees behave most ethically when they do not have access to all the resources they need to meet their goals.
D) Meeting high ethical standards is especially easy for those who work with people from more than one culture.

Question 23

Which of the following statements is true of how cultural diversity affects the ethical behavior of employees?

A) Ethical behavior is easy to practice in a company with cultural diversity.
B) Ethical values vary from culture to culture.
C) Ethical behavior is easy to practice in countries with high corruption levels.
D) Ethical values are a vague concept in a diverse cultural environment.

Question 24

According to research by the Ethics Resource Center, which of the following factors is most important for organizations trying to establish strong ethical cultures?

A) A clear and accurate code of ethics
B) Supervisors who demonstrate ethical behavior
C) Employees who recognize the importance of ethical behavior
D) A committee that monitors and punishes unethical behavior

Question 25

In the context of challenges to ethical behavior, the restructurings, cutbacks, and layoffs of recent years have made ethical behavior

A) impossible to practice.
B) a norm in the business world.
C) mandatory to follow.
D) harder to encourage.

Question 26

Which of the following is a challenge when establishing the practice of ethical behavior in workplaces?

A) Downsized or restructured organizations tend to lack the resources to monitor the day-to-day behavior of their employees.
B) Large organizations cannot work toward establishing high ethical standards as it costs them short-term profits.
C) Many organizations are often pressured by their investors to act in unethical ways to generate profits or risk having the investors pull out completely.
D) Ethical practices can only be established by companies that are already profitable.

Question 27

If an organization does business in a country where corruption is expected, employees

A) have relatively less difficulty being ethical.
B) can have more difficulty meeting high standards.
C) are generally sure of what can be categorized as a misconduct.
D) are always sure about what the company expects of its people.

Question 28

Understanding cultural differences helps in

A) reducing the operational costs of a company.
B) creating formal norms that improve productivity.
C) establishing quality control processes in a company.
D) interpreting behavior in order to arrive at agreements.

Question 29

In the context of ethical behavior, Western ideals tend to focus on ________ behavior.

A) fraternal
B) individual
C) ethnocentric
D) nepotistic

Question 30

Steve, a supervisor, works in a country where corruption levels are relatively high. As a direct consequence of this, Steve will have difficulty

A) being productive.
B) practicing ethical values.
C) dealing with immediate subordinates.
D) improving the efficiency of his team.

Question 31

Lily works as a supervisor in an overseas division of an American firm named Color Wheel Inc. She receives a gift from one of her employees, who is a citizen of the country in which the division is based. She runs the risk of insulting the giver if she refuses to accept it, but her company's policy discourages supervisors from accepting gifts from employees. In the context of ethical behavior, which of the following actions should Lily take?

A) Lily should accept the gift and recommend amending the policies to be more culturally sensitive.
B) Lily should turn down the gift and explain that it is against company policy to accept gifts from employees.
C) Lily should cut off all future transactions with the employee.
D) Lily should politely decline but ultimately accept the gift if the giver insists.

Question 32

Which of the following is most likely to help U.S. representatives effectively deal with Chinese trading partners?

A) They should place their entire focus on the individual behavior of their Chinese partners in order to win their trust.
B) They need to convince their Chinese colleagues to honor Western values or be at a disadvantage.
C) They should know that bribing is an acceptable practice in China and, hence, should practice it regularly.
D) They should know that a relationship of trust is likely to count for more than any particular official law and, hence, should work on building trust.

Question 33

It is difficult to practice clear corporate values and business-related standards in countries with high corruption levels because

A) employees in these countries are often unsure if they are seeing misconduct.
B) people in these countries have poor understanding of codes of ethics.
C) monetary rewards are the primary concern of employees in these countries.
D) the giving of gifts often is interpreted as bribery in these countries.

Question 34

In the United States, the giving of gifts in the workplace is most likely to be interpreted as

A) a form of bribery, an attempt to buy influence.
B) an expression of one's gratitude toward the receiver.
C) being customary and, hence, an acceptable behavior.
D) a charge on the corporate account and, hence, a tax-deductible expense.

Question 35

Max, a new employee at Glanx Inc., is being informed about the company's values and habits that will help him distinguish right from wrong. In the context of corporate social responsibility, Max is learning about the company's ________.

A) business agenda
B) code of ethics
C) rules of sustainability
D) formal behavior

Question 36

Phillip, the CEO of Texonet Inc., thinks it is beneficial for the company to print a booklet that contains the values and rules for right behavior in the company and distribute it to the employees. He thinks it will help employees to distinguish between right and wrong behavior. In this scenario, Phillip is thinking of printing the company's ________.

A) mission statement
B) ethical agenda
C) vision statement
D) code of ethics

Question 37

Some companies have helped individuals make ethical choices in an international context by signing the voluntary ________.

A) International Labor Treaty
B) North American Free Trade Agreement
C) United Nations Development Program Memo
D) United Nations Global Compact

Question 38

Steve, a very hardworking supervisor, sometimes talks with his friends on the office phone and takes office supplies home for personal use. Steve's behavior is ________.

A) unsustainable
B) unethical
C) biased
D) nepotistic

Question 39

Steven, the CEO of a company based in the United States, travels to China to meet the CEO of a Chinese company in order to discuss a joint marketing strategy. Which of the following steps should Steven take?

A) He must start with a meeting on critical business strategies.
B) He should establish a relationship of trust before beginning business talk.
C) He must focus on innovative marketing to make the joint marketing strategy a success.
D) He should focus only on explaining the advantages of coordinating with each other.

Question 40

An organization's written statement of its values and its rules for ethical behavior is known as its

A) mission statement.
B) code of ethics.
C) vision statement.
D) ethical agenda.

Question 41

Loyalty, fairness, and honesty are ________ that supervisors must exhibit.

A) authoritarian values
B) requisites of formal conduct
C) dimensions of ethical behavior
D) important controlling techniques

Question 42

Sheng, a new employee at Agrocan Inc., proposes an innovative supply management program to his supervisor. Which of the following is an ethical action that Sheng's supervisor should take in this situation?

A) The supervisor must ask Sheng to improve his idea in order to make it more practical.
B) The supervisor should use the idea and make sure that Sheng gets the credit.
C) The supervisor can use the idea as his own and compensate Sheng with monetary rewards.
D) The supervisor must ignore the idea because new employees like Sheng seldom understand company processes.

Question 43

Which of the following is the first step a supervisor should take when he or she suspects that an employee is behaving unethically?

A) Confront the employee with the evidence
B) Follow the organization's disciplinary procedure
C) Gather and record evidence
D) Look for and correct the conditions that led to the problem

Question 44

Employees expect to be treated evenhandedly. Which of the following behavioral qualities of a supervisor relates to this statement?

A) Loyalty
B) Creativity
C) Fairness
D) Openness

Question 45

Dave, a supervisor at a web design company, has a self-centric attitude toward work. He steals resources from work to sell them online for his own gains. In this scenario, which of the following dimensions of ethical behavior does Dave violate?

A) Fairness
B) Sincerity
C) Openness
D) Loyalty

Question 46

Branden is a supervisor at Xenze Inc. He has worked with the company for many years and is generally liked by the senior management for his commitment to the company. However, he often takes credit for the achievements of his employees. He also steals pens and reams of printer paper from the office. In this scenario, which dimensions of ethical behavior does Branden violate?

A) Honesty
B) Loyalty
C) Fairness
D) Openness

Question 47

The act of deciding what behavior is ethical

A) makes one very susceptible to grapevine communication.
B) does not always end an ethical dilemma.
C) makes one prone to be a victim of nepotism.
D) invariably causes one's ethical performance to suffer.

Question 48

Supervisors may find it harder to be fair when they supervise their own relatives. In the context of the ethical behavior of supervisors, this situation can result from practicing ________.

A) dishonesty
B) nepotism
C) disloyalty
D) egotism

Question 49

Many employees are afraid to be ethical because doing so would

A) cause their customers to go away.
B) limit the satisfaction they get from their jobs.
C) lead to their termination under the Sarbanes-Oxley Act.
D) cause their performance to suffer and cost them their jobs.

Question 50

Which of the following is an appropriate example of an honest behavior?

A) A supervisor tactfully plays favorites or passes the blame for mistakes on to his or her employees.
B) A supervisor makes sure that the employees get the credit when they make a brilliant suggestion.
C) A supervisor is seen by others in the organization to put his or her own interests first.
D) A supervisor manipulates company policies to ensure that the company's targets are met.

Question 51

Which of the following is the last step in dealing with an employee suspected of unethical behavior?

A) Follow the organization's disciplinary procedure.
B) Confront the employee with evidence.
C) Look for and correct the conditions that led to the problem.
D) Gather and record evidence.

Question 52

A supervisor can most effectively promote ethical decision making by

A) involving the employees in the process.
B) practicing nepotism.
C) giving gifts to employees.
D) discouraging whistle-blowers.

Question 53

If the CEO of a company hires his or her cousin, who lacks the required qualification, to head a division of the company, then it would be most appropriate to say that he or she is guilty of

A) nepotism.
B) whistle-blowing.
C) felony.
D) free riding.

Question 54

Nepotism is best defined as the act of

A) giving into group pressure.
B) hiring one's relatives.
C) whistle-blowing.
D) receiving a bribe.

Question 55

Making ethical decisions ideally involves

A) focusing on making profits for a company at all costs.
B) deciding what is right and then determining how to carry it out.
C) sticking to hard-and-fast rules.
D) restricting whistle-blowers from exposing a company.

Question 56

As a leader, a supervisor is expected to ________.

A) practice nepotism
B) eliminate quality control processes
C) be loyal to the organization and subordinates
D) increase organizational profits solely by being a perfectionist

Question 57

Which of the following is a way by which a supervisor can ensure his or her subordinates accept the ethical decisions made by him or her?

A) Asking subordinates to make their own decisions
B) Giving subordinates the right to offer their perspectives in making decisions
C) Holding subordinates responsible for poor decisions
D) Creating norms that restrict subordinates from conceptual thinking in decision making

Question 58

Barbara, a supervisor at SnowLenz Corp., supervises ten employees. However, she treats Eliza, one of her ten subordinates, as her favorite. She often assigns Eliza relatively easier jobs so that her productivity is always high. Other employees are unhappy with Barbara's behavior. In the context of the ethical behavior of supervisors, Barbara's subordinates are unhappy because she fails to practice ________.

A) loyalty
B) fairness
C) honesty
D) openness

Question 59

Discussing the ethical implications of a decision with subordinates can help a supervisor

A) confront them with evidence in case the decision has inadequate effects.
B) disperse the responsibility for decisions that can result in negative consequences.
C) see consequences and options that he or she might not have thought of alone.
D) decide which employee is good at decision making.

Question 60

Joe, the supervisor of the information technology team of BHJ Corp., does not like Frank, one of his employees. He often passes the blame for mistakes on to Frank and tasks him with responsibilities that he does not have the skill or knowledge to handle. In the context of the ethical behavior of supervisors, which dimension of ethical behavior does Joe violate in this scenario?

A) Loyalty
B) Accountability
C) Fairness
D) Openness

Question 61

Kyra, a supervisor at Hercules Industries, suspects that one of her subordinates is indulging in unethical practices. She gathers the required evidence to support her case. Which of the following should be Kyra's next step?

A) Confronting the concerned employee with the evidence
B) Ignoring the incident as it would disrupt the employee's productivity
C) Immediately correcting the conditions that led to the problem
D) Protecting the employee in case this lapse reflects badly on her

Question 62

Zahra, a supervisor at Artworx Inc., observes two of her employees, Robert and Simone, fighting with each other over parking space. She knows that the feud has been going on for many months. Later, she is approached by Robert, who alleges that Simone has been falsifying records. As a supervisor, how should Zahra react to Robert's allegations against Simone?

A) Zahra should confront Simone with Robert's allegations and ask her to prove her innocence.
B) Zahra should fire Robert for attempting to damage Simone's reputation over personal issues.
C) Zahra should initiate disciplinary action against Simone for falsifying records.
D) Zahra should firmly discourage Robert from making allegations motivated by personal disagreements.

Question 63

A whistle-blower typically contacts a government agency about a violation

A) as soon as he or she realizes there has been a violation.
B) after he or she has quit, so that the company cannot threaten him or her with suspension or demotion.
C) only after the matter has been resolved by the human resources department.
D) after he or she has first brought the matter to the attention of the management and found them unresponsive.

Question 64

Which of the following is most likely to be a primary objective of a sustainable organization?

A) Minimizing customer demand
B) Conserving natural resources
C) Maximizing the emission of VOCs
D) Maximizing energy use

Question 65

Which of the following acts forbids employers from retaliating against an employee who reports possible accounting, auditing, or reporting misdeeds that deceive investors?

A) The Sarbanes-Oxley Act
B) The Gramm-Leach-Bliley Act
C) The USA Patriot Act
D) The Federal Information Security Management Act

Question 66

Clayton, an accounts manager at Zonfex Corp., finds discrepancies in the company's financial records. He finds that Zonfex is practicing unlawful accounting and eventually exposes the company in a press conference. In the context of corporate social responsibility, Clayton is a(n) _____.

A) unethical employee
B) nepotistic executive
C) corporate traitor
D) whistle-blower

Question 67

Aisha, a supervisor at Teserel Corp., suspects that one of her subordinates, Gilbert, is selling the trade secrets of Teserel to a rival company. She observes his behavior for a few weeks and carefully makes note of the data he accesses on the company's servers. In the context of supervising unethical employees, which of the following actions should Aisha take next?

A) She should initiate disciplinary proceedings against him.
B) She needs to confront Gilbert with the evidence against him.
C) She should look for conditions that led to his behavior and fix them.
D) She needs to fix the lapses in the company's data security procedures.

Question 68

Whistle-blowers are protected by federal laws because

A) none of the state laws offer them any protection.
B) organizations may retaliate against them for the costs incurred because of them.
C) the Sarbanes-Oxley Act allows employers to sue whistle-blowers for losses incurred.
D) publicly speaking about a company's misdeeds is irresponsible behavior.

Question 69

The Sarbanes-Oxley Act

A) helps in formulating codes of conduct for a company.
B) is designed to protect nepotism.
C) agitates whistle-blowers to sue their companies.
D) forbids employers from retaliating against whistle-blowers.

Question 70

Sustainability is best defined as

A) the ability of an organization to meet its present needs without compromising the ability of future generations to meet their needs.
B) the degree to which employees adhere to an organization's written statement of its values and rules for ethical behavior.
C) the ability to understand cultural differences that helps businesspeople interpret behavior and act ethically.
D) the ability of an organization to protect employees who make complaints pertaining to occupational health and environmental laws.

Question 71

A whistle-blower typically brings ethics-related issues first to a

A) government agency.
B) media person.
C) manager in the organization.
D) rival organization.

Question 72

When organizations put in efforts to achieve sustainability, the efforts start with ________.

A) hiring people with sustainability skills
B) tracking their progress toward sustainability
C) rewarding contributions to sustainability
D) setting sustainability goals

Question 73

Zachary, the CEO of TeleCarz Inc., desires to enhance his organization's ability to meet its present needs without compromising the ability of future generations to meet their needs. In the context of corporate social responsibility, Zachary is focusing on ________.

A) sustainability
B) profitability
C) accountability
D) reliability

Question 74

A supervisor's general attitude toward whistle-blowing should be to

A) expose all whistle-blowers to the media.
B) agree with the top management if they decide to fire a whistle-blower.
C) forbid the same whistle-blower from retaliating against employees again.
D) discourage reports of wrongdoing when they are motivated simply by pettiness.

Question 75

Identify a true statement about the treatment of whistle-blowers who go public with their complaints.

A) They are arrested for sedition under the Sarbanes-Oxley Act.
B) Under a Civil War-era law, they are seen as complicit in the corruption they report.
C) Though they are protected under the law, they are often resented and rejected by their co-workers.
D) They are forbidden from disclosing corruption in government institutions to the media.

Question 76

Nathan, a production manager at OCSET Inc., asks his employees to reduce wastage of raw materials. He desires to instill a habit in the employees of producing high-quality products with as few resources as possible. He thinks it will help in preserving natural resources for the coming generations. In the context of corporate social responsibility, Nathan is trying to make his company more _____.

A) sustainable
B) approachable
C) accountable
D) reliable

Question 77

If someone complains about a genuine case of ethical violation, a supervisor should

A) investigate the complaint and report what will be done.
B) ignore the complaint if it does not affect the company's profits.
C) immediately bring it to the attention of the media.
D) advise the whistle-blower to call government agencies.

Question 78

A supervisor should bear in mind that the typical whistle-blower is a

A) troublemaker.
B) person with high ideals and competence.
C) vindictive person.
D) person who wants to bring negative publicity to a company.

Question 79

A whistle-blower is best defined as a person who

A) hires his or her own relatives.
B) exposes a violation of ethics or law.
C) bullies his or her subordinates.
D) gives in easily to peer pressure.

Question 80

Christie, the supervisor of a library, suspects Ernie, one of the librarians, of selling library books to secondhand bookshops. She watches him for the next few days and gathers the required evidence to confirm her suspicion. Then, Christie meets Ernie and discusses the situation. In the context of the course of action to be followed when an employee is suspected of unethical behavior, in which step is Christie currently involved?

A) Correcting the conditions that led to the problem
B) Following the organization's procedure
C) Confronting the employee with the evidence
D) Filing a lawsuit against the employee