Deck 5: Ethical Behaviour and Social Responsibility

Question 1

The utilitarian view of ethical behaviour is that which:

A) ensures that people are treated impartially and fairly.
B) advances the pursuit of long-term self-interests.
C) ensures the resolution of personal moral dilemmas.
D) provides the greatest good for the greatest number of people.
E) respects and protects the individual's fundamental rights.

Answer 1

D

Question 2

Creating a corporate culture that values employees, customers and suppliers is a core value that:

A) respects basic rights.
B) enhances social concerns.
C) respects human dignity.
D) respects stakeholder interests.
E) promotes good citizenship.

Answer 2

C

Question 3

Suppose that a lecturer's main concern in grading term papers is to evaluate the papers and assign grades fairly and objectively in light of the requirements and grading scale contained in the course syllabus. From an ethics perspective, this is an example of the lecturer adopting which of the following views?

A) The utilitarian view
B) The individualism view
C) The moral-rights view
D) The justice view
E) The collectivism view

Answer 3

D

Question 4

Michele is a bank officer who takes the time to fully explain to an applicant why he was turned down for a loan. Michele is reflecting the ethical concern of ______ in her behaviour.

A) individualism
B) procedural justice
C) interactional justice
D) utilitarianism
E) distributive justice

Question 5

Which of the following statements does NOT provide an accurate description of ethics?

A) Ethics is the code of moral principles that sets standards of 'good' versus 'bad' or 'right' versus 'wrong'.
B) Ethics is a set of principles that guide the organisation's analysis of its external environment and the formulation of actions to respond to that environment.
C) Ethics provides principles that help people make moral choices among alternative courses of action.
D) Ethics provides principles to guide the behaviour of individuals.
E) Ethics provides principles to guide the behaviour of groups.

Question 6

Which of the following does NOT accurately describe the universal values of respect for human dignity or respect for basic rights?

A) Protecting the rights of employees and customers
B) Supporting social institutions, including economic and educational systems
C) Avoiding anything that threatens people's education and living standards
D) Keeping a safe workplace
E) Producing safe goods and services

Question 7

The main emphasis of the justice view of ethical behaviour is:

A) ensuring that people's rights are protected and respected.
B) assessing the implications of a decision in terms of its long-term personal consequences.
C) promoting honesty and integrity.
D) evaluating a decision on the basis of its impartiality and fairness.
E) ensuring that the greatest number of people benefit to the greatest extent possible.

Question 8

The degree to which other people are treated with dignity and respect deals with the issue of:

A) distributive justice.
B) utilitarianism.
C) individualism.
D) interactional justice.
E) procedural justice.

Question 9

The degree to which people are treated the same without regard to ethnicity, race, gender and age is the concept of:

A) ethical management.
B) distributive justice.
C) moral justice.
D) procedural justice.
E) equitable policy.

Question 10

In contemporary organisations, __________ concerns the protection of employees with respect to their rights to privacy, due process, free speech, free consent, health and safety, and freedom of conscience.

A) the moral-rights view
B) the justice view
C) the individualism view
D) the utilitarian view
E) the collectivism view

Question 11

The main emphasis of the moral-rights view of ethical behaviour is:

A) evaluating a decision on the basis of its impartiality and fairness.
B) ensuring that the greatest number of people benefit to the greatest extent possible.
C) ensuring that people's rights are protected and respected.
D) assessing the implications of a decision in terms of its long-term personal consequences.
E) promoting honesty and integrity.

Question 12

The individualism view is supposed to promote __________ but in business practice it may result in __________.

A) honesty and integrity; pushing the law to its outer limits
B) running roughshod over other people to achieve personal objectives; honesty and integrity
C) pushing the law to its outer limits; interactional justice
D) narcissism; procedural justice
E) personal enrichment; organisational enrichment

Question 13

Critics claim that __________ is a form of __________, or the attempt to externally impose one's ethical standards on others.

A) universalism; ethical imperialism
B) cultural relativism; ethical imperialism
C) ethical imperialism; cultural relativism
D) ethical imperialism; Romanesque law
E) cultural relativism; cultural universalism

Question 14

To the extent that __________ vary among people, we can expect different interpretations of what behaviour is ethical or unethical in a given situation.

A) laws
B) needs
C) perceptions
D) motives
E) values

Question 15

Most ethical problems in the workplace arise when people are asked to do or are about to do something that:

A) goes against work group standards.
B) is illegal.
C) violates the organisation's policies.
D) violates social norms.
E) violates their personal conscience.

Question 16

An executive who assumes that ethical standards are universal in nature and should apply absolutely across cultures and national boundaries is operating under which cultural behaviour?

A) Cultural socialism
B) Ethical realism
C) Cultural activism
D) Ethical universalism
E) Cultural relativism

Question 17

Using results-oriented performance criteria to judge what is best for most people in a business organisation is an application of which view of ethical behaviour?

A) The utilitarian view
B) The individualism view
C) The collectivism view
D) The moral-rights view
E) The justice view

Question 18

The main emphasis of the individualism view of ethical behaviour is:

A) ensuring that people's rights are protected and respected.
B) assessing the implications of a decision in terms of its long-term personal consequences.
C) promoting honesty and integrity.
D) evaluating a decision on the basis of its impartiality and fairness.
E) ensuring that the greatest number of people benefit to the greatest extent possible.

Question 19

Not taking sexual harassment allegations against top management as seriously as allegations against supervisors is an example of violating the principle of:

A) equitable policy.
B) ethical management.
C) procedural justice.
D) distributive justice.
E) moral justice.

Question 20

According to the textbook, ethical behaviour is:

A) the same as legal behaviour in the context of business.
B) interpreted outside the legal frame of reference.
C) what is accepted as 'good' or 'right' as opposed to 'bad' or 'wrong' in the context of the governing moral code.
D) All of the options listed
E) None of the options listed

Question 21

Anita Roddick's 11-point charter on ethical conduct at the Body Shop International is an example of the influence of __________ on ethical behaviour.

A) personal standards and needs
B) religious values
C) formal policies of the employing organisation
D) government regulation
E) behaviour of peers and supervisors

Question 22

A survey of Harvard Business Review subscribers revealed that many ethical dilemmas involve conflicts with:

A) customers.
B) superiors.
C) subordinates.
D) All of the options listed
E) None of the options listed

Question 23

The text reports that managers sometimes pressure their subordinates to engage in various unethical activities. Which of the following in NOT one of these unethical activities?

A) Doing personal favours for the boss
B) Supporting incorrect viewpoints
C) Doing business with the boss's friends
D) Overlooking the boss's wrongdoings
E) Signing false documents

Question 24

Formal codes of ethics are usually concerned with expressing how employees may be expected to behave in respect to all of the following EXCEPT:

A) workforce diversity.
B) choice of friends and acquaintances.
C) confidentiality of corporate information.
D) response to bribes and kickbacks.
E) political contributions.

Question 25

Ethical dilemmas in the form of __________ may occur where a manager has privileged information regarding the activities of a customer and shares that information with another party.

A) organisational resources
B) discrimination
C) sexual harassment
D) conflicts of interest
E) customer confidence

Question 26

Ethical dilemmas in the form of __________ may occur where a manager takes a bribe, kickback or extraordinary gift in return for making a decision favourable to the gift giver.

A) discrimination
B) sexual harassment
C) customer confidence
D) organisational resources
E) conflicts of interest

Question 27

The underlying beliefs and attitudes that help determine behaviour are referred to as:

A) morals.
B) ethics.
C) personal standards.
D) values.
E) social norms.

Question 28

A strict chain of command, strong work group identities and ambiguous priorities are:

A) essential components of moral quality circles.
B) mechanisms for resolving ethical dilemmas.
C) organisational barriers to whistleblowing.
D) All of the options listed
E) None of the options listed

Question 29

Gap, Inc. expects certain ethical commitments from all its vendors. These ethical standards deal with all of the following EXCEPT:

A) working conditions.
B) freedom of association.
C) discrimination.
D) forced labour.
E) minimum wages and benefits.

Question 30

When some action must be taken but there is not a clear 'right' or 'wrong' approach, a person is faced with a(n):

A) managerial decision.
B) ethical dilemma.
C) situation to avoid.
D) lawsuit.
E) moral pinch.

Question 31

Personal factors that help determine managerial ethics include:

A) religious values.
B) government regulation.
C) ethical climate of the industry.
D) behaviour of peers.
E) organisational policies.

Question 32

The __________ is an approach for gaining shared commitments to high ethical standards.

A) autonomous work group
B) worker ethics team
C) ethical work group
D) moral quality circle
E) shared ethics task force

Question 33

The results of a Harvard Business Review survey indicated that the ethical issues most frequently encountered by the magazine's subscribers involved all but which one of the following?

A) Dishonesty in communication with government agencies
B) Dishonesty in advertising
C) Dishonesty in communication with subordinates
D) Dishonesty in communication with clients
E) Dishonesty in communication with top management

Question 34

The text identifies different ways of dealing with the four rationalisations that are commonly used to justify unethical behaviour. Which one of the following courses of action is NOT a recommended way for dealing with at least one of the four rationalisations?

A) Make sure everyone knows that wrongdoing will be punished whenever it is discovered.
B) Look beyond the short-term results to address longer term implications.
C) If other people and other companies are doing it, you are justified in doing it too.
D) When in doubt about a decision to be made or an action to be taken, don't do it.
E) Organisational loyalty should not stand above the law and social morality.

Question 35

In submitting her expense report for a recent business trip, Shirley sought reimbursement for some personal entertainment expenses. Knowing that the company policy precluded such reimbursement, she reported higher amounts for taxi fares and tips than she actually spent. Which of the following rationalisations most likely applies to Shirley's actions?

A) It's not really illegal.
B) No one will ever know about it.
C) It's in everyone's best interests.
D) All of the options listed
E) None of the options listed

Question 36

When Aaron Jenkins kept 1000 workers on the payroll after his clothing factory burned down, his ethical behaviour was influenced by the __________ factor.

A) corporate
B) environment
C) social
D) person
E) organisation

Question 37

Ethics training should be designed to:

A) help people to have the moral courage to do what is right.
B) help people incorporate ethical standards into their daily work behaviour.
C) help people deal with ethical issues while under pressure.
D) All of the options listed
E) None of the options listed

Question 38

If a manager makes a co-worker feel uncomfortable because of inappropriate comments or actions regarding sexuality, the manager may get caught in an ethical dilemma involving:

A) conflicts of interest.
B) customer confidence.
C) sexual harassment.
D) organisational resources.
E) discrimination.

Question 39

Which of the following statements does NOT provide an accurate description regarding how pressure to achieve goals affects ethics and ethical behaviour?

A) A company director can create an ethical climate by setting reasonable goals.
B) Managers can create an ethical environment by setting goals that are extremely challenging and continuously push subordinates to achieve these goals.
C) Any manager can unwittingly encourage subordinates to engage in unethical behaviour by exerting too much pressure to achieve goals that are too difficult.
D) Part of a manager's ethical responsibility is to be realistic in setting performance targets for others.
E) Employees often feel pressure to compromise personal standards to achieve company goals.

Question 40

According to the text, an important way to test whether a decision is consistent with one's personal ethical standards is to ask which of the following questions?

A) How would I feel if this decision harms someone?
B) How would I feel about this if my decision is printed in the local newspaper?
C) All of these questions are important ways of testing the ethics of a decision.
D) How would I feel if my employer loses a lot of money as a result of this decision?
E) None of these questions is an important way of testing the ethics of a decision.

Question 41

The leadership beliefs that guide socially responsible organisational practices include all of the following EXCEPT:

A) natural environment.
B) people.
C) short-term success.
D) communities.
E) reputation.

Question 42

The text identifies several criteria for evaluating socially responsible corporate behaviour. A company is meeting its __________ when it operates within the law and according to the requirements of various external regulations.

A) ethical responsibility
B) discretionary responsibility
C) legal responsibility
D) stakeholder responsibility
E) economic responsibility

Question 43

The value of any formal code of ethics relies on:

A) the underlying human resource foundations of the organisation.
B) committed managers who are willing to set examples and act as positive ethical role models.
C) effective hiring practices that staff organisations with honest and moral people.
D) All of the options listed
E) None of the options listed

Question 44

Official written guidelines for behaviour in situations susceptible to the creation of ethical dilemmas are referred to as the organisation's formal:

A) employee mandate.
B) management guidelines.
C) codes of ethics.
D) corporate social responsibility.
E) employee handbook.

Question 45

Which statement is MOST correct in terms of the textbook presentation of the public's expectations of business with respect to corporate social responsibility?

A) The Australian legal system does not protect the rights of consumers against socially irresponsible business acts.
B) There are increased expectations that organisations will act with genuine social responsibility.
C) There are no compelling arguments against corporate social responsibility.
D) Corporate social responsibility is not related to managerial ethics.
E) Corporate social responsibility should be the concern of only top-level managers in organisations.

Question 46

Which of the following statements does NOT support the argument that corporations should engage in socially responsible behaviour?

A) Socially responsible behaviour improves the public image of business.
B) Social responsibility decreases the need for restrictive government regulation.
C) Businesses have the resources and obligation to act in socially responsible ways.
D) Long-run profits for the business may improve or even be dependent on its degree of social responsibility.
E) Pursuing socially responsible goals may dilute the purpose of the business.

Question 47

The defensive strategy of social responsibility meets the organisation's:

A) economic, legal and ethical responsibilities.
B) economic, legal, ethical and discretionary responsibilities.
C) economic and legal responsibilities.
D) economic, legal, ethical, discretionary and political responsibilities.
E) economic responsibility.

Question 48

Corporate social responsibility is reflected in the way a company deals with all of the following EXCEPT:

A) diversity practices.
B) general corporate philanthropy.
C) labour relations.
D) aid to education.
E) organisational politics.

Question 49

__________ refers to an organisation's obligation to act in ways that serve its own interests as well as those of its many external stakeholders.

A) Corporate social responsibility
B) A formal policy statement
C) A code of ethics
D) A moral code
E) Public accountability

Question 50

Corporate social responsibility is defined as an obligation of the organisation to act in ways that serve both its own interests and the interests of its:

A) many external stakeholders.
B) board of directors.
C) stakeholders.
D) employers.
E) customers.

Question 51

Which of the following statements regarding the relationship between social responsibility and financial performance is NOT true?

A) High performance in social responsibility can be associated with strong financial performance.
B) At worst, strong corporate social responsibility has no adverse impact on financial performance.
C) Recent evidence suggests that corporate social responsibility leads to improved financial performance that, in turn, leads to additional socially responsible actions.
D) High performance in social responsibility is seldom, if ever, associated with strong financial performance.
E) Businesses can serve the public good and a broad pool of stakeholders as well as advance the financial interests of their shareholders.

Question 52

__________ should act as ethical role models and set an ethical tone in their areas of responsibility.

A) All levels of management
B) Middle management
C) Top and middle management levels only
D) First-line or supervisory management
E) Top management

Question 53

A social audit is:

A) a systematic assessment and reporting of an organisation's resource commitments and action accomplishments in areas of social responsibility.
B) an internal accounting audit requested by shareholders.
C) a survey of employees regarding their social preferences.
D) a public opinion survey regarding the social impact of a corporation's actions.
E) a systematic assessment of the corporation's impact on its employees' social lives.

Question 54

An organisation is meeting its ethical responsibility when it:

A) earns a profit through provision of goods and services desired by customers.
B) complies with the law and requirements of various external regulations.
C) voluntarily moves beyond basic economic, legal and ethical expectations to provide leadership in advancing social wellbeing.
D) voluntarily conforms to legal expectations as well as broader values and moral expectations of society.
E) anticipates socially responsible behaviour.

Question 55

Which of the following arguments is NOT against the assumption of social responsibility by business?

A) Social responsibility will reduce business profits.
B) Social responsibility will dilute the purpose of business.
C) Social responsibility will give business too much social power.
D) Social responsibility will dilute the social power of business.
E) Social responsibility will raise costs.

Question 56

The text identifies several criteria for evaluating socially responsible corporate behaviour. A company is meeting its __________when it voluntarily conforms to legal as well as broader values and moral expectations of society.

A) discretionary responsibility
B) ethical responsibility
C) economic responsibility
D) stakeholder responsibility
E) legal responsibility

Question 57

An organisation is meeting its discretionary responsibility when it:

A) earns a profit through provision of goods and services desired by customers.
B) voluntarily moves beyond basic economic, legal and ethical expectations to provide leadership in advancing social wellbeing.
C) anticipates socially responsible behaviour.
D) voluntarily conforms to legal expectations as well as broader values and moral expectations of society.
E) complies with the law and requirements of various external regulations.

Question 58

According to the text, an important way for double-checking the ethics of a decision is to ask which one of the following questions?

A) How would I feel if this decision harms someone?
B) How would I feel about this decision if it makes a lot of money for the company?
C) How would I feel if I receive a large bonus as a result of making this decision?
D) How would I feel if a competitor loses business as a result of this decision?
E) How would I feel if my family finds out about my decision?

Question 59

Ethics training refers to:

A) teaching corporate outlines for formal corporate codes of ethics.
B) training on the laws under which 'white collar' criminals are prosecuted.
C) structured programs to help participants understand the ethical aspects of decision making, and how to incorporate ethical standards into their daily lives.
D) learning about corporate guidelines for ethical employee conduct.
E) exposure to governmental regulations for defence contractors.

Question 60

__________ is the social responsibility view that maintains the organisation must be concerned for the broader social welfare.

A) The stakeholder view
B) The socioeconomic view
C) The shareholder model
D) The free market model
E) The classical view

Question 61

According to the text, the approaches that businesses can take in influencing government include all of the following EXCEPT:

A) lobbying.
B) personal contacts and networks.
C) public relations campaigns.
D) illegal acts.
E) refusing to abide by regulatory controls.

Question 62

__________ enable(s) executives to get to know important people in government.

A) Lobbying
B) Political action committees
C) Personal contacts and networks
D) Public relations campaigns
E) Bribery

Question 63

Codes of ethical conduct have several limitations. Which of the following is NOT one of these limitations?

A) The value of an ethics code relies on the organisation's underlying human resource foundation.
B) Ethical codes cannot replace leadership that is committed to being positive role models for the rest of the organisation's members.
C) Codes of ethical conduct cannot cover all situations.
D) Ethical codes are not replacements for hiring people of integrity.
E) Ethical codes provide automatic insurance for universal ethical conduct.

Question 64

Governments take an active role in regulating business affairs in Australia and New Zealand in all of the following areas EXCEPT:

A) fair labour practices.
B) environmental protection.
C) profit maximisation.
D) occupational health and safety.
E) consumer protection.

Question 65

Explain the concepts of cultural relativism and universalism. What implications do these concepts have for international business operations?

Question 66

Increasingly, the public demands that:

A) managers at all levels must achieve performance objectives while doing so in a socially responsible manner.
B) organisations will be held accountable for ethical and social performance as well as economic performance.
C) managers will be held accountable for achieving performance objectives as well as for maintaining high ethical standards and social responsibility.
D) All of the options listed
E) None of the options listed

Question 67

__________ allow(s) executives to communicate positive images of their organisations to the public at large.

A) Public relations campaigns
B) Lobbying
C) Political action committees
D) Bribery
E) Personal contacts and networks

Question 68

The proactive strategy of social responsibility meets the organisation's:

A) economic, legal, ethical, discretionary and political responsibilities.
B) economic responsibility.
C) economic and legal responsibilities.
D) economic, legal, ethical and discretionary responsibilities.
E) economic, legal and ethical responsibilities.

Question 69

The highest level of social performance comes through the satisfaction of an organisation's:

A) stakeholder responsibility.
B) economic responsibility.
C) ethical responsibility.
D) discretionary responsibility.
E) legal responsibility.

Question 70

Identify the alternative views of ethical behaviour and briefly describe the main emphasis of each view.

Question 71

Discuss the ways in which high ethical standards may be maintained in organisations.

Question 72

The accommodative strategy of social responsibility meets the organisation's:

A) economic, legal, ethical, discretionary and political responsibilities.
B) economic responsibility.
C) economic, legal and ethical responsibilities.
D) economic and legal responsibilities.
E) economic, legal, ethical and discretionary responsibilities.

Question 73

What is an ethical dilemma? Describe some of the possible sources of ethical dilemmas.

Question 74

__________ enable(s) executives to have their positions and preferences communicated directly to government officials.

A) Bribery
B) Lobbying
C) Political action committees
D) Personal contacts and networks
E) Public relations campaigns

Question 75

What is social responsibility? In your opinion, should businesses be socially responsible? Support your answer with appropriate reasons.

Question 76

An organisation that is following a(n) __________ social responsibility strategy would likely take a leadership role in identifying and responding to emerging social issues.

A) accommodative
B) ethical
C) obstructionist
D) defensive
E) proactive

Question 77

The obstructionist strategy of social responsibility meets the organisation's:

A) economic, legal and ethical responsibilities.
B) economic responsibility.
C) economic, legal, ethical and discretionary responsibilities.
D) economic, legal, ethical, discretionary and political responsibilities.
E) economic and legal responsibilities.

Question 78

The text identifies several criteria for evaluating socially responsible corporate behaviour. A company is meeting its __________ when it earns a profit through provision of goods and services desired by customers.

A) ethical responsibility
B) legal responsibility
C) stakeholder responsibility
D) discretionary responsibility
E) economic responsibility

Question 79

The defensive strategy involves a corporate social responsibility commitment that:

A) seeks to protect the organisation by doing the minimum legally required to satisfy expectations.
B) is congruent with society's prevailing norms, values and expectations.
C) takes preventative action to avoid adverse social impact.
D) is inconsistent with prevailing societal norms.
E) reflects mainly economic concerns.

Question 80

An organisation is meeting its legal responsibility when it:

A) earns a profit through provision of goods and services desired by customers.
B) voluntarily moves beyond basic economic, legal and ethical expectations to provide leadership in advancing social wellbeing.
C) anticipates socially responsible behaviour.
D) voluntarily conforms to legal expectations, and broader values and moral expectations of society.
E) complies with the law and requirements of various external regulations.