Deck 3: Ethics and Corporate Social Responsibility

Question 1

_____ is a subset of justice that claims that rules should be clearly stated,consistently obeyed,and impartially enforced.

A) Distributive justice
B) Procedural justice
C) Retributive justice
D) Conditional justice

Answer 1

B

Question 2

Someone who has been entrusted to make decisions on behalf of another party is called a ____.

A) mentor
B) principal
C) fiduciary
D) subordinate

Answer 2

C

Question 3

Which of the following best describes morality?

A) It is defined as the tool used to measure the level of social integration present in society.
B) It is the study of ethical values that are perceived in an organization.
C) It is the study of moral standards and its effect on behavior and conduct.
D) It is defined as the standards people use to judge what is right or wrong,good or evil.

Answer 3

D

Question 4

Jim,a programing expert at CL Corp. ,creates a new software program.However,before he could reveal his program,he receives an attractive employment offer from a rival company.Jim resigns from CL Corp.and accepts the rival company's offer,and he mentions about the new software to them.In this scenario,Jim is:

A) engaging in a conflict of interest
B) revealing a trade secret
C) competing fairly in the open market
D) violating employee privacy

Question 5

_____ justice helps countries set up rules through political legislation and enforce the rules fairly through court systems.

A) Restorative
B) Economic
C) Distributive
D) Procedural

Question 6

Which of the following best describes distributive justice?

A) It is a subset of justice that deals with treatment of people within a society,an institution,or a state.
B) It is a subset of justice that deals with implementation of rules and regulations in and organization.
C) It is a subset of justice that deals with the circulation of wealth among members of a society.
D) It is a subset of justice claiming that rules should be clearly stated,consistently obeyed,and impartially enforced.

Question 7

_____ is an ethical philosophy claiming that motives are the most important aspect in judging what is right or wrong.

A) Utilitarianism
B) Capitalism
C) Moralism
D) Kantianism

Question 8

When employees or managers engage in activities on behalf of the company and they have a personal concern in the outcome of those activities,they are:

A) preventing distributive justice.
B) engaging in a conflict of interest.
C) engaging in fraudulent misrepresentation.
D) confronting fiduciary behavior.

Question 9

According to Kazuo Inamori,an employee in the first level of performance:

A) would neglect morality to gain economic benefits.
B) would achieve results with a positive attitude.
C) would fail to achieve any sustainable results.
D) would enjoy successful results without positive efforts.

Question 10

Which of the following is true of virtue ethics?

A) It claims that morality's primary function is to develop virtuous character.
B) It claims that profitability is the fundamental virtue for every organization.
C) It claims that an organization's morality is defined by its members.
D) It claims that a virtuous organization is always a successful one.

Question 11

Maynard Inc. ,a construction company,planned to set-up operations in a foreign country.However,due to bureaucracy problems and paperwork delays in the local government offices,the company was unable to begin operations.The company distributed gifts and holiday vouchers to officials present in the local offices in order to speed up the paperwork.In this scenario,Maynard Inc.is:

A) engaged in bid-rigging.
B) engaged in whistle-blowing.
C) engaged in bribery.
D) engaged in moral discrimination.

Question 12

_____ is defined as the ethical philosophy claiming that behaviors are considered moral if they produce the greatest good,for the greatest number of people.

A) Consumerism
B) Totalitarianism
C) Utilitarianism
D) Kantianism

Question 13

Which of the following is true of an organization's trade secrets?

A) An organization cannot retrieve trade secrets stolen by foreign companies.
B) An organization must rely on external forces to protect its intellectual property.
C) An organization can protect itself using international intellectual property laws.
D) An employee cannot reveal trade secrets even with the permission of the organization.

Question 14

Which of the following best defines whistle-blowing?

A) It is the attempt to influence a bidding process by providing monetary or non-monetary benefits to officials engaged in the process.
B) It is the attempt to gain an unfair advantage by providing monetary benefits to governmental officials.
C) It is the release of trade secrets by a member of an organization to a rival organization engaged in the same business or trade.
D) It is the release of information by a member of an organization that is evidence of illegal or immoral conduct to executives in a company.

Question 15

A business's obligation to pursue policies,decisions,and actions that align with the objectives and values of culture is known as _____.

A) cultural responsibility
B) stakeholder responsibility
C) corporate social responsibility
D) economic responsibility

Question 16

Jake,a corporate accountant,works for a manufacturing firm.During an annual accounts review,he noticed that there were certain discrepancies in the accounts.He knew that the top management was involved in manipulation of accounts and reported this to the federal authorities.In this scenario,Jake is _____.

A) engaged in bribery
B) revealing trade secrets
C) engaged in whistle-blowing
D) engaged in bid-rigging

Question 17

_____ responsibilities refer to a business's duty to make a profit and increase shareholder value.

A) Ethical
B) Judicial
C) Economic
D) Social

Question 18

Which of the following is a direct benefit derived from CSR?

A) CSR enables a company to build its brand value.
B) CSR is responsible for bringing foreign direct investment.
C) CSR brings better productivity from the work force.
D) CSR has a direct impact on debenture interest rate.

Question 19

A whistle-blower usually reports a problem with the firm because:

A) they believe the firm will lose profits.
B) they believe it is their ethical duty to report the problem.
C) the firm needs to be more socially responsible.
D) they will receive extra compensation from the government.

Question 20

A scientist receives a yearly grant from a pharmaceutical company that funds research on a new cancer drug.After conducting the research,the scientist learns that the new cancer drug is a less effective when compared to many other cancer drugs in the market.After the scientist shares this information with the company,they encourage him to "reanalyze the data" in order to find different results favorable to the pharmaceutical company.The company also suggests that if different results are not found they will withdraw all research funding from the scientist.Which of the following is the scientist facing?

A) A conflict of interest
B) A trade secret violation
C) A privacy violation
D) A Whistle-blowing allegation

Question 21

Explain economic responsibilities of a firm.

Question 22

A firm's ethical responsibilities are:

A) behaviors enforced on the firm.
B) implemented to meet financial obligations.
C) behaviors the general population expects.
D) defined by the federal government.

Question 23

Research shows that people are most likely to join or continue in an organization that promotes CSR because:

A) these companies aim to improve shareholder value and maximize economic gains.
B) they consider themselves an integral part of the society.
C) these organizations are generally perceived as attractive places to work.
D) these organizations always offer a higher pay-scale than others.

Question 24

Define the term fiduciary and explain the responsibilities of a fiduciary.

Question 25

In business,members of a partnership are fiduciaries for one another.

Question 26

Which of the following is an argument that supports the negative link between CSR and profit margins?

A) CSR provides fixed profits but requires substantial increase in subsequent yearly investments.
B) CSR creates a fixed long-term investment without any predictable long-term profits.
C) CSR dilutes the company's image in society,which leads to reduced sales.
D) Profits made from CSR investments are only distributed among the top-management of a firm.

Question 27

Which of the following is a feature of firms practicing corporate social responsiveness?

A) They stick to a rigid organizational plan,irrespective of the conditions.
B) They keep the needs of stakeholders in the back-burner and concentrate on social issues.
C) They seek to influence employee behavior by controlling employee interaction inside the organization.
D) They monitor and assess environmental conditions on a constant basis.

Question 28

The Sarbanes-Oxley Act of 2002 was passed in order to:

A) control pollution and protect the environment in the long-term.
B) increase taxation levels for companies doing business abroad.
C) eliminate the practice of bribery.
D) control the manipulation of accounts by the top management in firms.

Question 29

Commonly,firms tend to fulfill their legal responsibilities by:

A) anticipating future laws and avoiding civil litigation.
B) investing heavily in CSR and fulfilling ethical responsibilities.
C) creating a productive workforce and maintaining employment standards.
D) striving to improve shareholder value.

Question 30

Define and explain the concept of Utilitarianism.

Question 31

Kantianism is defined as the ethical philosophy claiming that behaviors are considered moral if they produce the greatest good,or utility,for the greatest number of people.

Question 32

Companies that engage in CSR are likely to witness enhanced costs in the value chain.

Question 33

Corporate social responsibility activities that are directly related to business activities so that they can combine social welfare with financial welfare are known as _____.

A) accountable CSR
B) strategic CSR
C) inventive CSR
D) ethical CSR

Question 34

Milton Friedman believed that a firm's exclusive duty is to:

A) maximize its profits within the law.
B) implement CSR practices to be consumer friendly.
C) implement CSR practices to maximize profits.
D) use CSR to develop socialism

Question 35

Explain the ethical guidelines a manager should follow while making a decision.

Question 36

Which of the following is most likely to be a reason why CSR improves a firm's profit margins?

A) CSR reduces negativity within an organization and improves employee productivity.
B) Investment in CSR leads to an increase in stock prices due to increased liquidity.
C) Investment in CSR is viewed positively by customers positively and they make purchases based on this.
D) CSR increases the investment that a society is likely to make in an organization.

Question 37

Describe the link between a firm's overall performance and corporate social responsibility.

Question 38

CSR is considered strategic when it supports core business activities that contribute to a firm's mission,vision,and strategy.

Question 39

Virtue ethics claims that morality's primary function is to develop virtuous character,similar to the way people develop skills such as creativity and conflict management.

Question 40

Research supporting Milton Friedman's view on CSR suggests that CSR is detrimental to an organization.Which of the following arguments is most likely to support this theory?

A) CSR is viewed negatively in many societies and this leads to reduction in sales.
B) CSR reduces the brand value of an organization that leads to erosion of profits.
C) CSR involves extensive legal expenses that are detrimental to profits.
D) CSR leads to a substantial reduction in profits due rising investment in the long-run.