Deck 3: Ethics and Social Responsibility

Question 1

A company's accounting clerk realizes that an error has been made-the period's income is overstated. The clerk will soon be leaving for another job and knows that the error will not be found for several months after she has gone. To avoid having to work longer to fix the error,she decides she won't say anything. Which of the following factors affected the intensity of the clerk's decision?

A)resource consequences  
B)magnitude of influence  
C)temporal immediacy  
D)probability of response

Answer 1

C

Question 2

What are the three levels of moral development identified by Kohlberg?

A)amoral,moral,and post-moral  
B)preconventional,conventional,and postconventional  
C)introductory,growth,and maturity  
D)individual,organizational,and industry-wide

Answer 2

B

Question 3

A disgruntled employee who feels he is being underpaid purposely works slowly when his supervisor is not present and often arrives late for work and leaves early. What kind of behaviour is this employee engaged in?

A)production deviance  
B)employee shrinkage  
C)product shrinkage  
D)property deviance

Answer 3

A

Question 4

Every day before he leaves work,Doug takes a headset,stapler,or other company item and puts it in his lunch box to bring home. Doug sees nothing wrong with his behaviour since he feels inadequately paid. What level of moral development is Doug operating at?

A)conventional  
B)legally mandated  
C)preconventional  
D)postconventional

Question 5

Shell Oil Company's plan to sink Brent Spar,an abandoned offshore oil-storage buoy,had a massive effect on employee motivation and recruitment. The number of qualified people applying for jobs at Shell plummeted,and many employees looked for positions in other companies. The plan caused much greater harm than Shell's managers had ever imagined it would. Which of the following was much greater than predicted?

A)synergistic effect  
B)impact proximity  
C)concentration of synergy  
D)magnitude of consequences

Question 6

Why did a group of Canadian companies release an International Code of Ethics in 1997?

A)to help lobby the federal government to create ethical legislation in Canada  
B)to provide a general guideline for acceptable standards of conduct when doing business at home and in other countries  
C)to encourage investment in Canadian companies by foreigners  
D)to stop the white-collar fraud that was becoming uncontrollable in Canadian corporations

Question 7

When addressing certain issues,managers who are more aware of the large impact their decisions will have on others are more likely to worry about doing the right thing. Which type of issue does this situation best describe?

A)social consensus  
B)ethical intensity  
C)temporal immediacy  
D)proximity of effect

Question 8

A dissatisfied employee purposely puts less oil in a machine used in manufacturing products to increase the risk of the machine failing. Which activity is this employee engaged in?

A)production deviance  
B)employee deviance  
C)property deviance  
D)operational deviance

Question 9

According to Sharon Allen,Chairman of Deloitte LLP,what kinds of leaders do people want to work for?

A)leaders who have similar experiences  
B)leaders who are easygoing  
C)leaders they can trust  
D)leaders who are charismatic

Question 10

What is ethics as it relates to workplace behaviour?

A)Ethics is behaving in a way that makes actions easier than acting unethically. 
B)Ethics is the mindset employees must have to eliminate risks of misconduct when making choices about how to behave. 
C)Ethics is the unseen rules that guide the behaviour of employees. 
D)Ethics is the set of moral principles or values that defines right and wrong for a person or group.

Question 11

Which term is used to describe the degree of concern people have about activities that question moral standards?

A)ethical intensity  
B)social consensus  
C)temporal immediacy  
D)magnitude of consequences

Question 12

Why would the intentional tampering of a car's brake line have greater ethical intensity than driving 10 km/h over the speed limit?

A)social consensus  
B)magnitude of consequences  
C)temporal immediacy  
D)probability of effect

Question 13

What issues are covered by the International Code of Ethics for Canadian business principals?

A)minimum wage,overseas outsourcing,full disclosure,environmental protection,human rights  
B)equality in pay,business conduct,full disclosure,minimum wage,child labour  
C)community participation,environmental protection,human rights,business conduct,employee rights  
D)child labour,community participation,equality in pay,overseas outsourcing,internal training

Question 14

A female employee was passed over for a promotion that was awarded to a new and younger male employee. Disgruntled,the older female employee gives the younger employee who got the job false information,thereby making his work more difficult. What behaviour is the older female employee engaged in?

A)production deviance  
B)employee shrinkage  
C)political deviance  
D)personal aggression

Question 15

A plant worker is unhappy with his performance review. He considers purposely spilling a hazardous chemical to cause an evacuation of the plant. He decides against this,however. A spill could put many of his fellow workers at risk of injury from inhaling the chemical's fumes or evacuating. Which of the following influenced this worker's ethical decision making?

A)magnitude of consequences  
B)enormity of influence  
C)location immediacy  
D)probability of response

Question 16

On which of the following does ethical intensity partly depend?

A)magnitude of dilemma  
B)social acceptance  
C)intent of the manager  
D)temporal immediacy

Question 17

Which of the following is strong when a decision has large,certain,immediate consequences,and when we are physically or psychologically close to those affected by it?

A)ethical variance  
B)ethical involvement level  
C)ethical compliance  
D)ethical intensity

Question 18

A new employee is encouraged to cooperate in a scheme to cheat on worker time cards. The employee refuses to cooperate,and two colleagues verbally threaten him with physical harm if he does not comply. In what behaviour are the employees who threatened their colleague engaged?

A)employee shrinkage  
B)personal aggression  
C)political deviance  
D)personal deviance

Question 19

Which of the following factors contributes to ethical intensity?

A)temporal immediacy  
B)probability of efficiency  
C)proximity of behaviour  
D)social commitment

Question 20

An employee who feels he is being underpaid steals company merchandise to sell for his own profit. What act is this employee engaged in?

A)inventory shrinkage  
B)production deviance  
C)property deviance  
D)employee shrinkage

Question 21

Historically,which type of responsibility means making a profit by producing something valued by society?

A)discretionary  
B)ethical  
C)legal  
D)economic

Question 22

In 2014,Raman Autar,an engineer with Barrick Gold,raised concerns about the health,safety,and environmental practices at an Argentinian mine. He was fired by Barrick Gold shortly before a toxic solution was spilled into waterways. What is Autar's role in this instance?

A)whistle blower  
B)ethical ombudsman  
C)secondary stakeholder  
D)covert stakeholder

Question 23

A company's chief financial officer was found guilty of extorting large sums of corporate funds and depositing them into an offshore bank account. The officer had been arrested after a financial manager uncovered suspicious financial records. Which of the following best describes the financial manager?

A)whistle blower  
B)ethical ombudsman  
C)covert manager  
D)covert stakeholder

Question 24

What written test estimates honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviours?

A)situational-based integrity test  
B)personality-based integrity test  
C)behavioural integrity test  
D)overt integrity test

Question 25

How many steps are there in the basic model of ethical decision making?

A)six steps  
B)five steps  
C)four steps  
D)three steps

Question 26

What can employees and persons outside of the company easily attain with the click of a mouse to read about Johnson & Johnson's beliefs about moral behaviour and activity?

A)Johnson & Johnson's overt statement of integrity  
B)Johnson & Johnson's vision for the future  
C)Johnson & Johnson's mission statement of principle  
D)Johnson & Johnson's specific ethical business practices

Question 27

What is the next step in the basic model of ethical decision making after the problem is identified?

A)diagnose the situation  
B)identify the constituents  
C)determine alternative solutions  
D)analyze the options

Question 28

Ted Cooper,an engineer with the City of Ottawa,was terminated in May 2013 due to an email he sent to his supervisor,in which he threatened to involve the Auditor-General. His union sought arbitration over the issue. What issue does the arbitration point to?

A)the importance of discretionary responsibility  
B)a problem with too-specific codes of ethics  
C)one of the problems of being a whistle blower  
D)the creation of a sustainable ethical climate

Question 29

Which of the following is the least important factor in the creation of an ethical business climate?

A)personal examples set by company management  
B)official approval of the company's ethics code by government regulators  
C)fair but consistent punishment of violators  
D)a system that encourages whistle blowers to report potential ethics violations

Question 30

Which type of integrity test indirectly estimates honesty by measuring psychological traits?

A)overt  
B)psychographic-based  
C)covert  
D)personality-based

Question 31

Which of the following is an objective of ethics training?

A)reducing costs  
B)pushing ethics training throughout the entire organization  
C)improving negotiations with suppliers  
D)encouraging customers to purchase more from the company

Question 32

What discourages most people from becoming whistle blowers?

A)lack of company action on their complaints  
B)retaliation from supervisors and fellow workers  
C)causing trouble for friends who are acting unethically  
D)the risk of losing their jobs

Question 33

Why is it often difficult for an employee to assume the role of whistle blower?

A)because managers have such broad spans of management  
B)because the employee is often the one punished  
C)because the organization is decentralized  
D)because the employee needs empowerment

Question 34

According to Kohlberg's model,which level of moral development are people at when they make decisions that conform to societal expectations?

A)the unconventional level  
B)the preconventional level  
C)the conventional level  
D)the postconventional level

Question 35

What should managers do to encourage more ethical decision making in an organization?

A)They should carefully select and hire new employees. 
B)They should let the employees be the ethical leaders in the company. 
C)They should forgive employees that steal inventory. 
D)They should promote based on gender.

Question 36

What information source should employees of Canadian Tire consult if they are unsure of how to respond to an invitation to a business function?

A)standards and procedures specific to the retail industry  
B)the company's business code of ethics  
C)the company's mission statement  
D)someone in the company's publicity department

Question 37

For what purpose can managers use integrity tests?

A)to select and hire ethical employees  
B)to force the use of the principle of distributive justice when dealing with customers  
C)to determine which principle of ethical decision making is most appropriate to a situation  
D)to assess the ethical intensity of an issue

Question 38

According to Kohlberg's model,which level of moral development are people at when they make decisions based on selfish reasons?

A)the amoral level  
B)the preconventional level  
C)the conventional level  
D)the postconventional level

Question 39

What is the last step in the basic model of ethical decision making?

A)monitor the results  
B)determine benchmarks  
C)act  
D)make a choice

Question 40

According to Kohlberg's model,which level of moral development are people at when they always use internalized ethical principles to solve ethical dilemmas?

A)the amoral level  
B)the preconventional level  
C)the unconventional level  
D)the postconventional level

Question 41

In an article about WestJet,the company's CEO said WestJet wanted to enrich its communities and grow sustainably. The CEO wanted the company to be committed to which of the following?

A)social consensus  
B)social munificence  
C)social responsibility  
D)social respect

Question 42

Which group can influence or be influenced by the company and can affect public perceptions about its socially responsible behaviour?

A)preliminary stakeholders  
B)secondary stakeholders  
C)conventional stakeholders  
D)reactive stakeholders

Question 43

Gas prices in Belleville and Kingston,ON were allegedly fixed in an anti-competitive manner during 2007,and a settlement,admitting no wrong-doing,was reached with Pioneer Energy,Canadian Tire,Mr. Gas,and Sunoco. Which model would they most likely use to justify their actions?

A)the economic model  
B)the stakeholder model  
C)the shareholder model  
D)the accounting model

Question 44

According to Milton Friedman,which of the following is a problem with corporate social responsibility?

A)Social responsibility comes with a high cost that is borne by company shareholders. 
B)The time,money,and attention diverted to social causes undermine market efficiency. 
C)Companies publicize socially responsible actions while they quietly pollute and mistreat the environment. 
D)The marketplace will ultimately determine the importance of social causes.

Question 45

Management's most important responsibility is long-term survival (not just maximizing profits),which is achieved by satisfying the interests of multiple corporate stakeholders. What type of model does this statement represent?

A)economic  
B)stakeholder  
C)societal  
D)shareholder

Question 46

In which of the following roles were the media acting when they informed the public about a carbon monoxide (CO)leak at St. John's International Airport in St. John's,NL that led to four workers being transported to hospital?

A)overt constituents  
B)covert constituents  
C)secondary shareholders  
D)secondary stakeholders

Question 47

What are the two general categories of stakeholders?

A)primary and secondary  
B)reactive and proactive  
C)business and nonbusiness  
D)relevant and irrelevant

Question 48

Why are secondary stakeholders important to a company?

A)The company depends on them for long-term survival. 
B)They can affect public perceptions and opinions. 
C)The company is endangered by a termination of their relationship. 
D)They have the direct power to control management decisions.

Question 49

What type of stakeholders are groups such as shareholders,employees,customers,suppliers,governments,and local communities on which the organization depends for long-term survival?

A)primary  
B)secondary  
C)functional  
D)conventional

Question 50

Which of the following groups is least important for an organization to satisfy when it comes to assuring long-term survival?

A)investors  
B)customers  
C)the media  
D)employees

Question 51

A carbon monoxide (CO)leak at St. John's International Airport in St. John's,NL led to four workers being transported to hospital and a stop-work order being issued by Employment and Social Development Canada,a federal government agency. Which role did Employment and Social Development Canada thereby serve?

A)primary shareholder  
B)primary stakeholder  
C)secondary shareholder  
D)secondary stakeholder

Question 52

Which of the following is an example of a stakeholder group that neither engages in regular transactions with the company nor is critical to its long-term survival but can still affect public perceptions and opinions about the company's socially responsible behaviour?

A)the media  
B)suppliers  
C)the government  
D)employees

Question 53

What is the term for the various persons or groups with a legitimate interest in a company's actions?

A)stakeholders  
B)shareholders  
C)indirect investors  
D)boundary spanners

Question 54

What is social responsibility?

A)a business's obligation to pursue policies,make decisions,and take actions that benefit society  
B)a business tactic used to create relationship bonds with customers  
C)the actions the law obliges companies to take to protect their external environments  
D)a business's responsibility to its shareholders

Question 55

A company called CitiGrow is selling organic produce to consumers for $37.50 a week from "microplots" around Winnipeg. Prior to CitiGrow assuming responsibility for the plots,they were empty lots. What did CitiGrow exercise?

A)equitable responsibility  
B)fiscal responsibility  
C)organizational responsibility  
D)social responsibility

Question 56

Which of the following is a secondary stakeholder group?

A)the government  
B)suppliers  
C)the media  
D)employees

Question 57

A company called CitiGrow is selling organic produce to consumers for $37.50 a week from "microplots" around Winnipeg,in addition to selling to restaurants. Prior to CitiGrow assuming responsibility for the plots,they were empty lots. Which of the following is an example of a primary stakeholder group for CitiGrow?

A)community activists  
B)Winnipeg Free Press  
C)the microplots' farmers  
D)organic markets

Question 58

According to the stakeholder model,which of the following stakeholder groups is theoretically the least important to the company?

A)investors  
B)customers  
C)suppliers  
D)lobbyists

Question 59

Which of the following is an example of a stakeholder group that an organization must satisfy to ensure long-term survival?

A)suppliers  
B)Statistics Canada  
C)the general public  
D)the media

Question 60

Which model holds that as long as a company is operating legally,its only social responsibility is to maximize profits?

A)the economic model  
B)the stakeholder model  
C)the shareholder model  
D)the accounting model

Question 61

In which of the following instances does a social responsibility problem exist?

A)when there is inequality in pay for same work between genders  
B)when known product flaws are not communicated to stakeholders  
C)when company actions do not meet stakeholder expectations  
D)when company activities harm the environment

Question 62

Vocam Inc.,a Canadian business training company,is currently marketing a training video designed to teach companies how to address social media and email etiquette. Which of the following is an example of a secondary stakeholder group for Vocam?

A)companies that use the video for training  
B)actors in the video  
C)distributors of the training video  
D)business magazines that run ads for the training video

Question 63

Which of the following terms best applies to the expectations that a company will voluntarily serve a social role beyond its economic,legal,and ethical responsibilities?

A)stakeholder responsibilities  
B)overt responsibilities  
C)discretionary responsibilities  
D)social responsibilities

Question 64

When media informed the public that Nestlé had access to groundwater reservoirs at a very low price,creating significant public interest,Nestlé responded by acknowledging that they shared the public's "concern" for water sustainability. Which kind of strategy did Nestlé use to respond to its social responsibility problems?

A)reactive strategy  
B)prospective strategy  
C)proactive strategy  
D)accommodative strategy

Question 65

Canada is one of a few nations globally that permits seal hunting. It is illegal to hunt newborn seals in Canada,but the fur of newborn seals is still sold to some buyers. If companies buy this fur,what kind of responsibility to society would they be ignoring?

A)economic  
B)ethical  
C)legal  
D)discretionary

Question 66

A Canadian metals broker advertises "95 percent of orders shipped from stock" even though the company has no warehouses and no inventory. When questioned about the falseness of the ad,the broker responded,"We do ship 95 percent of our orders from stock,but from suppliers' stocks,not ours." Which type of strategy did the broker use to respond to the ethical question?

A)reactive  
B)offensive  
C)accommodative  
D)proactive

Question 67

GlaxoSmithKline (GSK)has been making anti-AIDS drugs such as Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. At which level of social responsibility was GSK acting by providing the drugs at a fraction of their usual costs?

A)discretionary  
B)global  
C)altruistic  
D)economic

Question 68

The Rainforest Action Network launched a bruising PR campaign against Home Depot to stop it from selling old-growth lumber. After two years of bad publicity and resistance to new store locations,Home Depot surrendered. Today,its suppliers work with environmental and forestry groups to certify that their wood products are not from endangered areas. What type of strategy did Home Depot use to respond to demands that it be socially responsible?

A)proactive  
B)accommodative  
C)predictive  
D)defensive

Question 69

Gas prices in Belleville and Kingston,ON were allegedly fixed in an anti-competitive manner during 2007,and companies such as Pioneer Energy,Canadian Tire,Mr. Gas,and Sunoco were investigated. Which responsibilities did these companies allegedly ignore?

A)economic responsibilities  
B)ethical responsibilities  
C)legal responsibilities  
D)discretionary responsibilities

Question 70

A company faced with a social problem decides to demonstrate the greatest possible willingness to meet or exceed society's expectations of how it should respond. Which type of strategy is the company implementing?

A)reactive  
B)productive  
C)proactive  
D)accommodative

Question 71

Nestlé is facing boycotts from an organization called The Council of Canadians as a result of Nestlé's rights to use groundwater reservoirs for a very low price. Which type of stakeholder is The Council of Canadians with respect to Nestlé?

A)covert  
B)functional  
C)reactive  
D)secondary

Question 72

Which of the following social responsiveness strategies could be considered a public relations approach?

A)reactive  
B)defensive  
C)communicative  
D)proactive

Question 73

Gas prices in Belleville and Kingston,ON were allegedly fixed in an anti-competitive manner during 2007,and a settlement,admitting no wrong-doing,was reached with Pioneer Energy,Canadian Tire,Mr. Gas and Sunoco. Which type of strategy did the four firms implement?

A)offensive  
B)reactive  
C)proactive  
D)accommodative

Question 74

A consumer advocacy group is critical of ads by a delivery company that claim its priority service is a low-cost,two-day service while failing to disclose that their regular service generally reaches the destination just as quickly and for a tenth of the cost. The consumer advocacy group wants the delivery company to take responsibility for its actions and do what is right. What term defines this type of responsibility?

A)utilitarian  
B)fiscal  
C)legal  
D)ethical

Question 75

Which type of strategy is a company implementing if it chooses to accept responsibility for a problem and does all that society expects to solve the problem?

A)reactive  
B)defensive  
C)accommodative  
D)proactive

Question 76

Which type of responsibility can companies fail to fulfill and still be considered ethical?

A)legal  
B)fiscal  
C)discretionary  
D)overt

Question 77

Lever's most successful product in India is Fair & Lovely,a skin-whitening agent that is sold to dark-skinned women in India to help them conform to their culture's definition of beauty. Lever is emphasizing one type of responsibility,to make a profit,and ignoring another type of responsibility,which is to help women realize that appearance is superficial. What are these two types of responsibilities,respectively?

A)legal;ethical  
B)discretionary;ethical  
C)economic;legal  
D)economic;discretionary

Question 78

Which of the following represents the principle of long-term self-interest?

A)reducing capital costs and maintaining a profitable financial position  
B)reducing capital costs and investing in strategic options  
C)reducing operational costs and maintaining a profitable financial position  
D)reducing operational costs and maintaining a positive reputation

Question 79

Which of the following represents the audience for Warren Buffett's formulation of the principle of personal virtue-the "Front Page of the Newspaper Test"?

A)government,business associates,friends  
B)spouse,children,friends  
C)relatives,business associates,government  
D)newspaper readers,journalists,relatives

Question 80

GlaxoSmithKline (GSK)has been making anti-AIDS drugs such as Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. Still,it managed to outrage AIDS prevention groups. GSK decided to use the patent protection rules of the World Trade Organization (WTO)to take action against governments importing lower-cost drug versions. At which level of social responsibility was GSK acting by using the WTO's regulation?

A)economic  
B)fiscal  
C)legal  
D)discretionary