Deck 5: Ethics, Corporate Responsibility, and Sustainability

Question 1

You can be an ethical leader if you have a strong moral character, regardless of what issues actually get most of your attention.

Answer 1

False
Explanation: When you are both personally moral and a moral manager, you will truly be an ethical leader. You can have strong personal character, but if you pay more attention to other things, and ethics is "managed" by "benign neglect," you won't have a reputation as an ethical leader.

Question 2

People in the preconventional stage of Kohlberg's model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family, or peers.

Answer 2

False
Explanation: People in the preconventional stage make decisions based on concrete rewards and punishments and immediate self-interest. People in the conventional stage conform to the expectations of ethical behavior held by groups or institutions such as society, family, or peers.

Question 3

The ethical system known as relativism may be responsible for higher rates of bribery and keeping double books in other countries than in the United States.

Answer 3

True
Explanation: Relativism defines ethical behavior based on the opinions and behaviors of relevant other people. Relativism acknowledges the existence of different ethical viewpoints. For example, norms, or standards of expected and acceptable behavior, vary from one culture to another.

Question 4

According to public opinion polls, only about a third of employees trust their own CEO.

Question 5

Utilitarianism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

Question 6

Ethics is the system of rules that governs the ordering of values.

Question 7

Astroturfing is considered a difficult but ethical practice.

Question 8

The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior managers to personally sign off on financial results.

Question 9

The principles underlying utilitarianism prohibit murder and oppression in all societies.

Question 10

Business ethics comprises the moral principles and standards that guide behavior in the world of business.

Question 11

The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

Question 12

The ethical system known as egoism is similar to Adam Smith's concept of the invisible hand in business.

Question 13

Concerns about urban sprawl, CEO pay, and artistic control make it clear that many issues in business ethics remain unsolved.

Question 14

Two basic ethical ideals underpin the Caux Principles: fairness and equality.

Question 15

According to virtue ethics, moral individuals can transcend society's rules by applying personal virtues.

Question 16

An ethical issue is a situation, problem, or opportunity in which an individual is obligated to choose among several actions that must be evaluated as legal or illegal on the basis of law.

Question 17

Most people have unconscious biases that give others the benefit of the doubt while simultaneously giving themselves little credit.

Question 18

Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.

Question 19

Excessive emphasis on long-term revenues over shorter-term considerations is one of the factors that is conducive to unethical behavior.

Question 20

Utilitarianism defines acceptable behaviors as those that maximize benefits for the individual.

Question 21

"The social responsibility of business is to increase profits," is a well known quote from Milton Friedman, a Nobel Prize-winning economist.

Question 22

The goal of ecocentric management is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.

Question 23

Profit maximization and corporate social responsibility necessarily lead to opposing corporate policies.

Question 24

A transcendent education involves balancing self-interest with responsibility to others.

Question 25

Which of the following statements about unethical corporate behavior is most true?

A) When corporations behave unethically, only the top executives suffer.
B) When corporations behave unethically, only the shareholders suffer.
C) When corporations behave unethically, rank-and-file employees and investors often suffer more than top executives.
D) When corporations behave badly, top executive or rank-and-file employees are shielded from the fallout.
E) There is no evidence that corporations today ever behave unethically.

Question 26

Economic responsibility forms the base of the pyramid of global corporate social responsibility and performance.

Question 27

A good process for ethical decision making begins with considering the legal requirements.

Question 28

With an integrity-based ethics program, people govern themselves through a set of guiding principles that they embrace.

Question 29

Greenwashing refers to misleading marketing claims about the environmentally friendly nature of a product.

Question 30

Moral awareness means knowing what actions are morally defensible.

Question 31

Life cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water, and land.

Question 32

Charitable contributions are considered part of a firm's ethical responsibilities in the pyramid of global corporate social responsibility and performance.

Question 33

GE management sees environmental rules strictly as a burden and a cost to the company.

Question 34

Sustainability in business is considered compatible with the natural ecosystems that generate and preserve life.

Question 35

A compliance-based ethics program often fails to create a moral commitment to ethical conduct.

Question 36

A system of rules that governs the ordering of values is referred to as

A) Life cycle analysis.
B) Ethics.
C) Corporate legitimacy.
D) Justice.
E) The legal system.

Question 37

Sustainable growth refers to growth in profitability that sustains the wealth of shareholders.

Question 38

Honesty, caring, loyalty, fairness, and integrity are all examples of

A) Ethics.
B) Citizenship.
C) Values.
D) Emotions.
E) Excellence.

Question 39

In general, the accumulated evidence indicates that social responsibility is associated with better financial performance.

Question 40

Being a whistleblower is typically a painless process.

Question 41

Bina thought it was OK to download music for free from the Internet since all of her friends did it. Bina is using which ethical system for her decisions?

A) Egoism.
B) Virtue ethics.
C) Relativism.
D) Universalism.
E) Utilitarianism.

Question 42

Ashleigh works as a receptionist for a law firm. Some of the lawyers have asked her to tell callers that they are in court when in fact they are playing golf. She wanted to quit the job because she hated to lie to people. Ashleigh is following the ethical system referred to as

A) Egoism.
B) Deontology.
C) Relativism.
D) Universalism.
E) Utilitarianism.

Question 43

At what level of moral development would Kohlberg describe Shannon, if he determines his work behaviors solely on whether he thinks he can do them without receiving punishment from his boss?

A) Emotional.
B) Conventional.
C) Principled.
D) Preconventional.
E) Normative.

Question 44

The moral principles and standards that guide behavior in the world of business are called

A) Corporate principles.
B) Business philosophy.
C) Organizational development.
D) Business ethics.
E) Organizational politics.

Question 45

__________ acknowledges the existence of different ethical viewpoints and uses norms as guidelines.

A) Virtue ethics
B) Relativism
C) Universalism
D) Utilitarianism
E) Egoism

Question 46

The first stage of Kohlberg's model of cognitive moral development is known as

A) Emotional.
B) Conventional.
C) Primary.
D) Preconventional.
E) Normative.

Question 47

A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called a(n)

A) Responsibility issue.
B) Ethical issue.
C) Moral business issue.
D) Legal issue.
E) Moral rights issue.

Question 48

Beth faces a decision to either do as her coworkers do by filling out inaccurate time records or tell her manager what has been happening. This is an example of

A) A moral rights debate.
B) An ethical issue.
C) The Caux Principles.
D) An avoidance situation.
E) Greenwashing.

Question 49

Which ethical system would most support the premise that people should hold some values as always appropriate?

A) Egoism.
B) Deontology.
C) Relativism.
D) Universalism.
E) Utilitarianism.

Question 50

The ethical system known as utilitarianism is centered around the idea that

A) Some values must always be upheld, regardless of the consequences.
B) Societal rules or customs should be used to order values.
C) Society will be enhanced if we all take care of ourselves and don't harm others.
D) Individuals might choose between conflicting values by tallying the final results of the various acts.
E) The greatest good for the greatest number should be the overriding concern of decision makers.

Question 51

The Caux Principles are based on two ethical ideals:

A) Fairness and equality.
B) Self-fulfillment and sharing.
C) Kyosei and respect.
D) Kyosei and human dignity.
E) Self fulfillment and happiness.

Question 52

___________ considers acceptable behavior to be that which maximizes benefits for the individual.

A) Egoism
B) Deontology
C) Relativism
D) Universalism
E) Utilitarianism

Question 53

Tyler believes in justice and opportunity for all, and he uses these principles to make decisions about right and wrong in his daily life. These principles are part of his

A) Moral philosophy.
B) Business ethics
C) Ying.
D) Ecocentric philosophy.
E) Personality.

Question 54

Which of the following is one of Kohlberg's stages of cognitive moral development?

A) Unconventional.
B) Emotional.
C) Relative.
D) Principled.
E) Developed.

Question 55

Cassandra's behavior is typically guided by what she thinks would be acceptable to her parents. She appears to be at which stage of cognitive moral development according to Kohlberg?

A) Emotional.
B) Conventional.
C) Principled.
D) Preconventional.
E) Utilitarian.

Question 56

The work of __________ classifies people into categories based on their level of moral judgment.

A) Kravitz
B) Frederick
C) Immelman
D) Kohlberg
E) Taylor

Question 57

__________ is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right.

A) Business ethics
B) Virtue ethics
C) Relativism
D) Utilitarianism
E) Egoism

Question 58

Principles, rules, and values that people use in deciding what is right and wrong are called

A) Business ethics.
B) Corporate social responsibility.
C) Moral philosophy.
D) Business philosophy.
E) Caux Principles.

Question 59

__________ is the ethical system stating that all people should uphold certain values that society needs in order to function.

A) Moral philosophy
B) Egoism
C) Universalism
D) The Caux Principle
E) Utilitarianism

Question 60

________ is a philosophy that bases ethical behavior on the opinions and behaviors of relevant other people.

A) Egoism
B) Virtue ethics
C) Relativism
D) Universalism
E) Utilitarianism

Question 61

One who is both a moral person and a moral manager influencing others' ethical behavior is referred to as a(n)

A) Ethical leader.
B) Ethics chairperson.
C) VP of ethics.
D) Transitional leader.
E) Transformational leader.

Question 62

Compliance-based ethics programs are typically designed by

A) Lawyers.
B) Employees.
C) Top executives.
D) Stockholders/owners.
E) Focus groups of customers.

Question 63

Johnson & Johnson's ethics code has been widely recognized because

A) The code focuses only on employee behavior.
B) It does not mention stockholders.
C) It is effective; J&J consistently receives high rankings for community and social responsibility.
D) Employees see little relation between it and the realities at the firm.
E) The statement uses humor to make light of the potential issues.

Question 64

Which of the following is a danger sign that organizations may be allowing or even encouraging unethical behavior?

A) Thinking only about shareholder demands.
B) Failure to establish a written code of ethics.
C) A desire for "quick fix" solutions.
D) Lack of clear procedures for handling ethical problems.
E) All of these are danger signs for an organization's ethical climate.

Question 65

The __________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

A) corporate culture
B) ethical climate
C) ethics code
D) legal responsibility
E) moral obligation

Question 66

Which of the following is advised by the text for constructing an ethics code?

A) Cover as many potential issues as possible to provide maximum clarity.
B) Make it "catchy"; better something "clever" than something "important."
C) Involve only the legal department and top executives in writing the statement.
D) Explain away potential conflicts between reality and the language used in the code with humor.
E) Focus on relatable, real-life situations.

Question 67

Integrity-based ethics programs use

A) Stated ethicsl rules and policies.
B) Corporate social responsiveness.
C) A set of guiding principles.
D) Monitoring and punishment.
E) Discretionary social responsibility.

Question 68

Having the strength and persistence to act in accordance with your ethics despite the challenges is referred to as

A) Moral awareness.
B) Moral judgment.
C) Moral certainty.
D) Moral action.
E) Moral character.

Question 69

The ________ ethical framework encourages employees to consider whether they would like to see their decisions displayed on the front page of the newspaper. If they would not mind, then it is likely an appropriate course of action.

A) Kohlberg
B) sunshine
C) newspaper
D) journalist
E) publicity

Question 70

Which of the following statements about the Sarbanes-Oxley Act is true?

A) It was passed in 1992.
B) It requires strict adherence to accounting rules.
C) It was written in response to a series of public protests.
D) It is intended to maintain truth in advertising.
E) It requires whistleblowers to be fired.

Question 71

Jamila is considering a layoff of several of employees in her division. She has realized that there are ramifications for her employees as well as the shareholders. This is known as

A) Moral certainty.
B) Moral actionability.
C) Moral awareness.
D) Moral judgment.
E) Moral character.

Question 72

Compliance-based ethics programs are most effective at ensuring

A) Resistance to social responsibility.
B) Moral mediocrity.
C) Discretionary social responsibility.
D) Proactive social responsibility.
E) A moral commitment to ethical conduct.

Question 73

People in the _________ stage of Kohlberg's model of cognitive moral development see beyond authority, laws, and norms and follow their self-chosen ethical principles.

A) emotional
B) conventional
C) principled
D) preconventional
E) advanced

Question 74

An ethics program that is designed by lawyers to detect, prevent, and punish legal violations is called a(n) _________ ethics program.

A) integrity-based
B) compliance-based
C) competency-based
D) legally-based
E) responsibility-based

Question 75

Which of the following is described as a current ethical issue in the text?

A) CEO pay.
B) Sweatshops.
C) Urban sprawl.
D) Commercialism in schools.
E) All of these are described as current ethical issues.
Table 5.2 lists several ethical issues in business, including all of the choices in the question.

Question 76

John Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision. This thought process is based on

A) Ethical shielding.
B) The veil of understanding.
C) The veil of ignorance.
D) Ethical certainty.
E) Ethical ignorance.

Question 77

Ethical programs tend to be better integrated into operations, thinking, and behavior when

A) Every employee has signed the code of ethics.
B) Top management has a personal commitment to responsible ethical behavior.
C) Employees have seen top managers punished for their wrongdoings.
D) Managers use punishment to motivate employees to "be good."
E) Compliance-based programs are used.

Question 78

Going beyond legal compliance with ADA standards and training people to understand that individuals with disabilities also have valued abilities is an example of

A) Compliance-based programs.
B) Integrity-based programs.
C) Minimum requirements programs.
D) A strong code of ethics.
E) An ethical dilemma.

Question 79

Corporate ethics programs commonly include which of the following?

A) Formal ethics code.
B) Ethics committees.
C) Ethics communication systems.
D) Ethics ombudspersons.
E) All of these are generally included in corporate ethics programs.

Question 80

Despite many high-profile scandals, most business leaders believe

A) They don't understand business ethics.
B) They uphold ethical standards in business practices.
C) They don't have to worry about ethics if they hire employees with strong moral backgrounds.
D) Ethical standards in business practices are strictly voluntary.
E) They need to worry about the firm's stock price, not ethics.