Deck 4: Ethics and Social Responsibility

Question 1

People at the preconventional level of moral development use internalized ethical principles to solve ethical dilemmas.

Answer 1

  False

Question 2

According to Kohlberg's stages of moral development,people at the _____ make decisions that are based on selfish reasons.

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

Answer 2

  C

Question 3

The principle of distributive justice is designed to protect the poor,the uneducated,and the unemployed.

Answer 3

  True

Question 4

Which of the following factors should be taken into account when determining the ethical intensity of an action? 

A) ​Conflict of interest 
B) ​Peer acceptance 
C) ​Intent of a manager 
D) ​Temporal immediacy

Question 5

There is no trade-off between social responsibility and economic performance.

Question 6

Organizational culture is key to fostering ethical decision making.

Question 7

The US Sentencing Commission Guidelines for Organizations impose smaller fines on companies that: 

A) ​have no history of violation of ethics principles. 
B) ​are unaware of the unethical behavior of employees. 
C) ​are not concerned with the ethical behavior of employees. 
D) ​voluntarily disclose illegal activities to federal authorities.

Question 8

_____ is the degree of concern people have about an ethical issue.

A) ​Ethical intensity 
B) ​Ethical congruence 
C) ​Ethical pluralism 
D) ​Ethical objectivism

Question 9

Which of the following statements best explains the carrot-and-stick approach of the US Sentencing Commission Guidelines for Organizations? 

A) ​Nonprofit organizations are exempted from fines. 
B) ​Unincorporated organizations and associations are exempted from penalties. 
C) ​Organizations accused of unethical behavior are excused if the management was unaware of such behavior. 
D) ​Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior.

Question 10

The US Sentencing Commission Guidelines for Organizations cover offenses related to invasion of privacy.

Question 11

A company must avoid communicating its code of ethics to others outside the company. 

Question 12

Ethics training becomes more credible when top managers teach the initial ethics classes to their subordinates who in turn teach their subordinates.

Question 13

Red Spark Inc.,a multinational electronics manufacturer,recently came under close scrutiny after it was involved in a major money laundering scam.The scam had adversely affected the careers of more than two hundred employees of Red Spark despite the fact that they were not involved in the scam.This scenario illustrates that the scam had a: 

A) ​low probability of effect. 
B) ​high peer acceptance. 
C) ​low concentration of effect. 
D) ​high magnitude of consequences.

Question 14

According to the US Sentencing Commission Guidelines for Organizations,which of the following steps should be followed immediately after the standards and procedures for an effective compliance program have been established? 

A) ​First-line managers should be trained on standards and procedures. 
B) ​All employees should be given decision-making authority. 
C) ​Upper-level managers should take charge of the program. 
D) ​Employees who repeatedly violate standards should be given informal warnings.

Question 15

The greater the corporate responsibility in conducting,encouraging,or sanctioning illegal or unethical activity,the lower the culpability score.

Question 16

The principle of government requirements states that one should never take an action that does not result in greater good for society.

Question 17

Carrying out discretionary responsibilities is mandatory for every organization.

Question 18

Delayed product delivery is less of an issue when compared to delivering a faulty product,which can potentially cause harm.This is because delivering a faulty product has a _____.

A) ​high magnitude of consequences 
B) ​low magnitude of influence 
C) ​high cultural effect 
D) ​low probability of effect

Question 19

When addressing an issue of _____,managers are more aware of the impact their decision will have on others.

A) ​high workplace deviance 
B) ​high ethical intensity 
C) ​low employee shrinkage 
D) ​low personal aggression

Question 20

Nonprofits,partnerships,and labor unions are not covered by the US Sentencing Commission Guidelines for Organizations.

Question 21

Which of the following is an argument put forth by economist Milton Friedman? 

A) ​A law represents the minimal moral standards of society, so an individual should never take any action that violates the law. 
B) ​It is unethical to take any action that is not in an organization's long-term self-interest. 
C) ​It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations. 
D) ​An individual's ethical decision is based on his or her level of moral development.

Question 22

For a code of ethics to encourage ethical decision making and behavior in a company,_____.

A) ​the code must contain broad rather than specific guidelines 
B) ​the code of ethics should revolve around legal factors and not organizational values 
C) ​the management must ensure that the code of ethics does not include customers' and shareholders' interests 
D) ​the management must develop practical ethical standards and procedures specific to the company's line of business

Question 23

Managers can use overt integrity tests to _____.

A) ​select and hire ethical employees 
B) ​assess the ethical intensity of an issue 
C) ​differentiate between the ethics of primary and secondary stakeholders 
D) ​reinforce the ethical principle of individual rights

Question 24

Horizon Inc.,a local electronics manufacturing company,produces a significant amount of electronic waste every day.The company disposes the waste in the ocean despite strict government regulations regarding waste disposal.This scenario illustrates that Horizon has failed to fulfill its _____.

A) ​economic responsibility 
B) ​political responsibility 
C) ​legal responsibility 
D) ​discretionary responsibility

Question 25

The last step in a basic model of ethical decision making is to _____.

A) ​diagnose the situation 
B) ​analyze alternatives 
C) ​act on the situation 
D) ​monitor the results

Question 26

Which of the following stakeholder groups does not engage in regular transactions with a company? 

A) ​Customers 
B) ​Governments 
C) ​Local communities 
D) ​Special interest groups

Question 27

According to the _____,the only social responsibility that businesses have is to maximize profits.

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

Question 28

Jason,a police officer,strongly believes in justice and does not accept bribes from others.According to Kohlberg's stages of moral development,Jason is operating at the _____ of moral development.

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

Question 29

A(n)_____ is a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem.

A) ​reactive strategy 
B) ​defensive strategy 
C) ​accommodative strategy 
D) ​discretionary strategy

Question 30

A(n)_____ is a social responsiveness strategy in which a company does less than society expects.

A) ​discretionary strategy 
B) ​reactive strategy 
C) ​proactive strategy 
D) ​accommodative strategy

Question 31

Which of the following is an objective of ethics training? 

A) ​To achieve credibility with employees 
B) ​To enforce flexible ethical standards 
C) ​To discourage employees from reporting violations 
D) ​To delegate decision-making authorities to all employees

Question 32

Teeny Toys Inc.,a chain of toy stores,has decided to donate free toys to orphanages across the United States.This scenario illustrates that the company is aiming at fulfilling its _____.

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

Question 33

A(n)_____ is a written test that estimates job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors.

A) ​situation-based integrity test 
B) ​personality-based integrity test 
C) ​covert integrity test 
D) ​overt integrity test

Question 34

Under the _____,an individual should never take any action that harms the least fortunate people in some way.

A) ​principle of government requirements 
B) ​principle of personal virtue 
C) ​principle of utilitarian benefits 
D) ​principle of distributive justice

Question 35

Emerald Inc.is a manufacturer of cosmetics that focuses on delivering high-quality products to its customers.As Emerald is aware of the side effects of parabens on skin and hair,it uses organic preservatives in its cosmetic products.All the cosmetic products that it manufactures are free of parabens.In this way,the company ensures that the usage of its products does not cause allergy to any of its customers.Which of the following social responsiveness strategies is Emerald using in this scenario? 

A) ​Proactive strategy 
B) ​Reactive strategy 
C) ​Defensive strategy 
D) ​Accommodative strategy

Question 36

According to Kohlberg's stages of moral development,people at the _____ make decisions that conform to societal expectations.

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

Question 37

When ten customers of Niall's Eatery fell seriously ill after dining at the restaurant,the issue was noticed by the public.The public demanded that the restaurant's kitchen be thoroughly inspected and the patients be compensated.However,the management at Niall's Eatery denied all claims that the customers had fallen ill by consuming the food served by the restaurant.Furthermore,the management was against any inspection on the kitchen.Which of the following social responsiveness strategies is the restaurant using? 

A) ​Reactive strategy 
B) ​Proactive strategy 
C) ​Defensive strategy 
D) ​Accommodative strategy

Question 38

Maxwell Lights Inc.,a fireworks company,has workers operating under dangerous working conditions.Last year,one of its workers died on the jo B.Nevertheless,the company took a long time to acknowledge its responsibility for the accident.The worker's family was compensated only after several months.Moreover,the money received by the worker's family was only half of what they should have actually been paid.Which of the following social responsiveness strategies is the company using? 

A) ​Reactive strategy 
B) ​Defensive strategy 
C) ​Proactive strategy 
D) ​Accommodative strategy

Question 39

In a basic model of ethical decision making,after a problem has been identified,the next step is to _____.

A) diagnose the situation​ 
B) ​identify the constituents 
C) ​analyze the available options 
D) ​develop alternative solutions

Question 40

Secondary stakeholders are important to a company because: 

A) ​they are critical to the company's long-term survival. 
B) ​they can affect public perceptions about socially responsible behavior. 
C) ​they are involved in day-to-day transactions with the company. 
D) ​they have the direct power to control management decisions.

Question 41

_________ is the social,psychological,cultural,or physical distance of a decision maker from those affected by his or her decisions.
A.Ethical variance
B.Probability of effect
C.Proximity of effect
D.Ethical congruence

Question 42

When businesses enhance their reputations by being socially responsible,they hope to maximize _________.
A.utilitarian benefits
B.the opportunity cost of a choice
C.willingness to pay
D.distributive justice

Question 43

_________ is a company's social responsibility to not violate accepted principles of right and wrong when conducting its business.
A.Legal responsibility
B.Ethical responsibility
C.Economic responsibility
D.Discretionary responsibility

Question 44

_________ is a business's obligation to pursue policies,make decisions,and take actions that benefit society.

Question 45

The act of reporting others' ethics violations to management or legal authorities is known as _________.

Question 46

_________ are persons or groups with a stake,or legitimate interest,in a company's actions.

Question 47

_________ pertain to the social roles that businesses play in society beyond their economic,legal,and ethical responsibilities.
A.Proactive responsibilities
B.Obligatory responsibilities
C.Accommodative responsibilities
D.Discretionary responsibilities

Question 48

The _________ holds that an individual should never do anything that is not honest,open,and truthful and that he or she would not be glad to see reported in the newspapers or on television.
A.principle of government requirements
B.principle of distributive justice
C.principle of personal virtue
D.principle of utilitarian benefits

Question 49

_________ is a company's social responsibility to make a profit by producing a valued product or service.

Question 50

_________ refers to a company's strategy to respond to stakeholders' economic,legal,ethical,or discretionary expectations concerning social responsibility.

Question 51

Which of the following statements is true of the relationship between social responsibility and economic performance? 

A) ​The costs of being socially responsible can be offset by a better product or corporate reputation. 
B) ​Socially responsible companies are guaranteed profitability. 
C) ​Socially responsible companies and traditional businesses do not experience the same ups and downs in economic performance. 
D) ​There is a big trade-off between social responsibility and economic performance.