Deck 5: Managing Ethics and Social Responsibility

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

Level 3 of the Personal Moral Development model is Conventional.

Question 7

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.

Question 8

Compensatory justice argues that an employees compensation should be based on individual performance.

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

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 14

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 15

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

Question 16

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 17

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

Question 18

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

Question 19

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

Question 20

If something is ethical, it must not be illegal.

Question 21

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

Question 22

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

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

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

Question 25

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

Question 26

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 27

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

Question 28

Discretionary responsibility is purely voluntary.

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

Approximately 20% of American adults, according to your text, never reach the postconventional level of moral development.

Question 34

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

Question 35

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

Question 36

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

Question 37

Important stakeholders in corporations include the government and the community.

Question 38

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 39

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

Question 40

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

Question 41

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

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

Question 42

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

Question 43

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

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

Question 44

Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job, such as alcohol and tobacco consumption?

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

Question 45

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

Question 46

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 47

A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered:

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

Question 48

A recent poll found that _____ percent of people surveyed say corporate America's moral compass is pointing in the wrong direction.

A) 10
B) 29
C) 52
D) 76
E) 98

Question 49

A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text?

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

Question 50

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 51

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

Question 52

Robbie's Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the:

A) utilitarian approach.
B) individualism approach.
C) moral-justice approach.
D) justice approach.
E) illegal approach.

Question 53

Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number?

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

Question 54

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

Question 55

A normative approach to ethical decision making:

A) reduces ethical dilemmas to easy-to-understand formulas.
B) uses various approaches to describe 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 56

Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the:

A) utilitarian approach.
B) individualism approach.
C) moral-justice approach.
D) justice approach.
E) soft-line managerial approach.

Question 57

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

Question 58

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:

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

Question 59

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 are normative approaches as described in the text.

Question 60

Managers are often concerned good citizenship will hurt performance.

Question 61

Regarding the 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

____ is NOT included in the model of personal moral development described in your text.

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

Question 63

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 64

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

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

Question 65

Disk Replacement Services has just completed a manual that clearly states the rules for handling employee grievances. The company makes it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on:

A) the procedural justice approach.
B) the utilitarian approach.
C) the individual approach.
D) the defensive approach.
E) the free-choice approach.

Question 66

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 67

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 68

_____ matches with the preconventional level of personal moral development.

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

Question 69

_____ 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 70

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 71

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

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 72

_____ 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 73

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 74

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 75

People making decisions 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 76

The concept that the party responsible should compensate individuals 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 77

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

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

Question 78

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 79

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 80

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.