Deck 3: Ethics and Social Responsibility

Question 1

In Kohlberg's preconventional level of moral development, moral thinking is largely limited to issues of punishment, obedience, and personal interest.

Answer 1

True

Question 2

Procedural justice involves the degree to which policies and rules are fairly applied to all individuals.

Answer 2

True

Question 3

Ethical behavior is determined by its cultural context.

Answer 3

True

Question 4

An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered unethical.

Question 5

Terminal values are preferences regarding the means to desired ends.

Question 6

A common statement by a rationalizer is "It's in everyone's best interests." This response involves the mistaken belief that because someone can be found to benefit from the behavior, the behavior is also in the individual's or the organization's best interests.

Question 7

Questions such as "Is it legal?," "Is it right?," "Whom does it affect?," "Who benefits?," and "Who gets hurt?" are referred to as spotlight questions.

Question 8

Values are broad beliefs about what is appropriate behavior.

Question 9

The utilitarian view considers ethical behavior to be that which delivers the greatest good to the greatest number of people.

Question 10

Government laws and regulations can describe and encourage ethical behavior, but they can't guarantee ethical conduct.

Question 11

In Kohlberg's conventional level of moral development, the individual is strongly principle-centered.

Question 12

Distributive justice is the degree to which others are treated with dignity and respect.

Question 13

Asking and answering spotlight questions when having to make an uncomfortable decision is a powerful way to double-check and test whether a decision is consistent with an individual's personal ethical standards.

Question 14

The ethics culture in an organization sets high standards and may even push people to behave more ethically than they otherwise would.

Question 15

Among the terminal values held important by managers are honesty, ambition, imagination, and self-discipline.

Question 16

Commutative justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria.

Question 17

Ethical imperialism is an attempt to impose one's ethical standards on other cultures.

Question 18

Cultural relativism is a form of ethical imperialism.

Question 19

Cultural view is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards.

Question 20

Cultural relativism suggests ethical standards apply universally across all cultures.

Question 21

The _____ view of ethical understanding and reasoning abilities considers ethical behavior to be that which delivers the greatest good to the greatest number of people.

A) individualism
B) religious
C) justice
D) utilitarian
E) moral rights

Question 22

An amoral manager chooses to behave unethically.

Question 23

Which of the following is an instrumental value?

A) Honesty
B) Self-respect
C) Freedom
D) Family security
E) Happiness

Question 24

In the _____ view, ethical behavior treats people impartially and fairly.

A) individualism
B) justice
C) moral rights
D) utilitarian
E) humanitarian

Question 25

In the _____ view, ethical behavior respects and protects fundamental rights.

A) individualism
B) justice
C) moral rights
D) utilitarian
E) humanitarian rights

Question 26

According to Archie Carroll, managers who are engaged in unethical practices remain mostly uninformed or undisciplined in considering the ethical aspects of their behavior.

Question 27

Competitors, labor unions, public-interest groups, and legal institutions are all shareholders of an organization.

Question 28

In business practice, the _____ view of ethical understanding and reasoning abilities may result in greed and a tendency to "push the law to its outer limits."

A) individualism
B) religious
C) justice
D) utilitarian
E) moral rights

Question 29

Strong work group identities that encourage loyalty and self-censorship are barriers to whistle blowing.

Question 30

The three P's of organizational performance are patience, politeness, and planning.

Question 31

Demand legitimacy indicates the extent to which a stakeholder's concerns need immediate attention.

Question 32

According to the classical view of CSR, the principal obligation of management should be to owners and shareholders.

Question 33

According to the individualism view of ethical behavior, society will be best off if:

A) individuals make decisions based on the greater common good.
B) everyone works toward the betterment of society.
C) everybody lives by the letter of the law.
D) everyone acts in a way that maximizes his or her own happiness.
E) everyone follows a universal moral code of behavior.

Question 34

Samantha Eagles, the CEO of Gama Tech., shuts down offshore operations of the company during a period of economic recession. This resulted in over 20% cut in the workforce but was instrumental in keeping the company profitable and in saving the jobs of the remaining workers. Which ethical viewpoint would Susan most likely use to justify her decision?

A) Individualism
B) Religious
C) Justice
D) Utilitarian
E) Moral rights

Question 35

Which of the following is a terminal value?

A) Honesty
B) Ambition
C) Imagination
D) Self-discipline
E) Happiness

Question 36

The individualism view of ethical behavior is based on the belief that one's primary commitment is to the long-term advancement of self-interests. Lying and cheating for immediate gain are not tolerated by this ethical view point because lying and cheating

A) are inherently harmful to a person's psyche.
B) do not help a person over time.
C) are against the law.
D) are contrary to all religious beliefs.
E) cause an unfair distribution of resources.

Question 37

Corporate governance involves making sure day-to-day performance is achieved ethically and in socially responsible ways.

Question 38

Ethics is defined as the _____ code of principles that sets standards of good or bad, or right or wrong, in one's conduct.

A) social
B) legal
C) moral
D) cultural
E) religious

Question 39

The triple bottom line evaluates organizational performance on economic, social, and environmental criteria.

Question 40

Corporate social responsibility means taking personal responsibility to always respect and protect the interests of society at large.

Question 41

Which of the following addresses the fair allocation of outcomes, without any communal or gender biases?

A) Procedural justice
B) Fundamental justice
C) Distributive justice
D) Commutative justice
E) Interactional justice

Question 42

At the postconventional level of moral development, an individual is strongly _____.

A) social-centered
B) peer-pressure oriented
C) self-centered
D) principle-centered
E) punishment-driven

Question 43

When rationalizers tell themselves that "no one will ever know about it," they believe that:

A) a questionable behavior is acceptable, especially in ambiguous situations.
B) because someone can be found to benefit from the behavior, it is also in the individual's or the organization's best interests.
C) a questionable behavior is really "safe" and will never be found out or made public.
D) the organization's (on behalf of whom the individual acts questionably) best interests stand above all others.
E) as long as people have acted in good faith their behavior is ethical.

Question 44

When faced with an ethical dilemma, spotlight questions are used to test possible decisions for:

A) the risk of public disclosure.
B) potential harm to self.
C) the risk to job security.
D) potential harm to others.
E) possible legal implications.

Question 45

According to Archie Carroll, an _____ manager is defined as a manager who chooses to behave unethically.

A) amoral
B) apathetic
C) immoral
D) individualist
E) ethnocentric

Question 46

Which of the following is a spotlight question when dealing with ethical dilemmas?

A) What sort of trouble will I get into because of my decision?
B) Are there any legal consequences to my decision?
C) Who will be affected by my decision?
D) How will I feel if my family finds out about my decision?
E) How will my career be affected by my decision?

Question 47

According to Thomas Donaldson, the core values or "hyper-norms" that should transcend cultural boundaries focus on human dignity, basic rights, and _____.

A) cultural tolerance
B) social responsibility
C) acceptance
D) good citizenship
E) stewardship

Question 48

Fredrick works for Vision, a billboard advertising agency, which hires billboards from owners on behalf of clients. Fredrick routinely accepts pay-offs from billboard owners in exchange for referring their billboards to clients. This behavior could result in his dismissal from Vision, if found out. Which statement is Fredrick most probably utilizing to rationalize his actions?

A) "It's not really illegal."
B) "It's in everyone's best interests."
C) "No one will ever know about it."
D) "The organization will stand behind me."
E) "I cannot be held responsible."

Question 49

_____ justice involves the degree to which policies and rules are fairly applied to all individuals.

A) Procedural
B) Economic
C) Distributive
D) Commutative
E) Interactional

Question 50

Managers with strong _____, ones that provide personal rules or strategies for value-based decision making, will act more consistently and confidently than those without.

A) religious affiliations
B) ethical frameworks
C) ethnocentric backgrounds
D) social-centered behavior
E) self-centered behavior

Question 51

After doing something that might be considered unethical, a rationalizer says: "It's not really illegal." This expresses a mistaken belief that:

A) one's behavior is acceptable, especially in ambiguous situations.
B) because someone can be found to benefit from the behavior, it is also in the individual's or the organization's best interests.
C) The behavior is justified and cannot be held wrong at any time.
D) the organization's (on behalf of whom the individual acts) best interests stand above all others.
E) as long as people have acted in good faith, their behavior is ethical.

Question 52

The Sarbanes-Oxley Act of 2002 makes it easier for corporate executives to be tried and sentenced to jail for _____.

A) sexual harassment
B) nepotism
C) financial misconduct
D) biodata fraud
E) misuse of organizational facilities

Question 53

When rationalizers proceed with a questionable action because of a mistaken belief that "the organization will stand behind me," they believe that:

A) a questionable behavior is acceptable, especially in ambiguous situations.
B) because someone can be found to benefit from the behavior, it is also in the organization's best interests.
C) a questionable behavior is really "safe" and will never be found out or made public.
D) the organization values loyalty over ethical decision-making.
E) as long as people have acted in good faith their behavior is ethical.

Question 54

Interactional justice involves the:

A) degree to which policies and rules are fairly applied to all individuals.
B) degree to which outcomes are allocated fairly among people and without respect to individual characteristics.
C) degree to which people treat one another with dignity and respect.
D) fairness of exchanges or transactions.
E) honesty and integrity of business dealings.

Question 55

_____ is an attempt to impose one's ethical standards on other cultures.

A) Polycentrism
B) Moral relativism
C) Ethical imperialism
D) Cultural relativism
E) Moral absolutism

Question 56

Which of the following is a drawback of the moral rights view of ethical behavior?

A) It relies on the assessment of future outcomes that are often difficult to predict and are tough to measure accurately.
B) It presumes that individuals are self-regulating; however, not everyone has the same capacity or desire to control their behaviors.
C) It is possible for a few individuals to take advantage of the freedom allowed by this perspective and disrupt the degree of trust that exists within a business community.
D) It does not ensure that the outcomes associated with protecting individual rights are beneficial to the majority of society.
E) It places an emphasis on fairness and equity, both of which cannot be ensured simultaneously.

Question 57

Suave ZN, a franchisee outlet for Eco Motors, an electric car company, sells Chris Johnson, an older model car. Suave ZN sells the older model without informing Chris of the newer, better models released by Eco Motors in the same price band. According to which justice dimension would Suave ZN conduct be considered unethical?

A) Procedural
B) Economic
C) Distributive
D) Commutative
E) Interactional

Question 58

In Kohlberg's preconventional level of moral development, decisions:

A) are made according to internal principles.
B) are likely to be based on following social norms.
C) made follow rules to help society run smoothly.
D) are likely to be directed toward achieving personal gain.
E) are consistent with universal principles.

Question 59

What is the assumption made in the individualism view of ethical behavior?

A) It does not promote honesty or integrity in people.
B) People are self-regulating in the quest for long-term advantage for the self.
C) The outcome of an ethical decision does not affect the majority of the society.
D) Every person works in coordination with another to fulfil each other's goals.
E) No individual can take advantage of the freedom allowed in this approach.

Question 60

An expatriate of Country A argues that the practice of giving corporate gifts is acceptable in another country as long as it is consistent with local laws and customs. In this scenario, the Country A expatriate is guided by _____.

A) ethnocentrism
B) moral relativism
C) ethical imperialism
D) cultural relativism
E) moral absolutism

Question 61

The classical view of CSR is that businesses should focus on _____.

A) the environment
B) owners and shareholders
C) profits
D) labor unions
E) future generations

Question 62

Which of the following is one way to instill ethical behavior in an organization?

A) Promoting rationalizations for unethical behavior
B) Promoting a strict legal code
C) Conducting ethics training
D) Conducting behavioral training
E) Conducting physical training

Question 63

Archie Carroll suggests that most managers act _____.

A) ethically
B) amorally
C) immorally
D) morally
E) unscrupulously

Question 64

Stewardship in management means taking personal responsibility to always respect and protect the interests of _____ at large.

A) society
B) shareholders
C) management
D) the environment
E) the organization

Question 65

In Kohlberg's terms, which of the following types of manager is at the postconventional level of moral development?

A) Unethical
B) Amoral
C) Ethnocentric
D) Moral
E) Immoral

Question 66

Demand legitimacy:

A) indicates the extent to which stakeholders need immediate attention.
B) refers to the managers' ability to maximize profits.
C) refers to the shareholders' ability to influence managers.
D) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
E) indicates the validity and legitimacy of a stakeholder's interest in the organization.

Question 67

The 3 P's of organizational performance are:

A) planning, process, and profit.
B) procurement, process, and profit.
C) procurement, processing, and planet.
D) place, people, and policy.
E) profit, people, and planet.

Question 68

Which of the following statements is in agreement with the socioeconomic view of corporate social responsibility?

A) Financial improvement can be achieved by being socially responsible.
B) The primary responsibility of business is to maximize business profits.
C) By acting responsibly, businesses avoid government regulation.
D) Businesses must be concerned with the broader social concerns and not just with corporate profits.
E) Society is served best when businesses are allowed to maximize their profits.

Question 69

The triple bottom line for assessing organizational performance evaluates how well organizations are doing on:

A) economic, social, and environmental performance criteria.
B) industrial, market, and customer satisfaction criteria.
C) ecological, environmental, and financial criteria.
D) humanitarian, sociological, and research criteria.
E) geological, anthropological, and lean performance criteria.

Question 70

The _____ evaluates organizational performance on economic, social, and environmental criteria.

A) social denominator
B) corporate critical line
C) stewardship audit
D) global value audit
E) triple bottom line

Question 71

Issue urgency:

A) indicates the extent to which the stakeholder's concerns need immediate attention.
B) refers to the managers' ability to maximize profits.
C) refers to the shareholders' ability to maximize profits.
D) refer to the capacity of the stakeholder to positively or negatively affect the stakes of the organization.
E) indicates the validity and legitimacy of a stakeholder's interest in the organization.

Question 72

Which of the following is a primary reason why almost half the workers in the United States fail to blow the whistle to report wrongdoings they observe at work?

A) A flexible and lenient chain of command
B) Weak work group identities that discourage loyalty and self-censorship
C) Presence of ethical leadership
D) The belief that no corrective action would be taken
E) The lack of any commitment to the organization

Question 73

According to the classical view of CSR, the principal obligation of management should be to _____.

A) suppliers
B) owners
C) consumers
D) future generations
E) the state or local government

Question 74

_____ describes the obligation of an organization to act in ways that serve both its own interests and the interests of society at large.

A) Sustainability
B) Corporate accountability
C) Environmental stewardship
D) Corporate social responsibility
E) Corporate citizenship

Question 75

Stakeholder power:

A) indicates the extent to which stakeholders need immediate attention.
B) refers to the managers' ability to maximize profits.
C) refers to the shareholders' ability to influence managers.
D) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
E) indicates the validity and legitimacy of a stakeholder's interests in the organization.

Question 76

According to proponents of the classical view of CSR, what drives businesses to make things like healthier foods and energy-efficient products?

A) The government
B) Profitability
C) Owners and shareholders
D) A sense of indebtedness to society
E) Pressure from civil society

Question 77

According to Archie Carroll, an _____ manager disregards the ethics of an act or a decision, but does so unintentionally or unknowingly.

A) amoral
B) apathetic
C) immoral
D) individualist
E) ethnocentric

Question 78

The _____ view of CSR is that business should focus on broader welfare of the community and not just profits.

A) shared value
B) classical
C) post-modern
D) socioeconomic
E) ethnocentric

Question 79

Which of the following is true of a whistleblower?

A) A whistleblower is the first to act unethically in an organization.
B) Whistleblowers unintentionally disregard the ethics of an act or a decision.
C) Whistleblowers are members of management who specifically look out for unethical behavior among employees.
D) A whistleblower exposes the misdeeds of others in organizations.
E) Whistleblowers are members of law enforcement specifically trained to deal with financial misconduct.

Question 80

A _____ is a formal statement of an organization's values and ethical principles that set expectations for behavior.

A) code of ethics
B) mission statement
C) code of conduct
D) legal code
E) value statement