Deck 5: Ethics, Corporate Responsibility, and Sustainability

Question 1

Most people have unconscious biases that favor themselves and their own group.

Answer 1

True
Explanation:
Most people have unconscious biases that favor themselves and their own group. Managers often hire people who are like them, think they are immune to conflicts of interest, take more credit than they deserve, and blame others when they deserve some blame themselves.

Question 2

Bill, the manager of Just Right Gelato, acts with integrity and honesty because he believes in a system of rules that governs the ordering of values. The system of rules that directs Bill's behavior is known as _____.

A)compulsion
B)philosophy
C)law
D)ethics
E)justice

Answer 2

D
Explanation: Ethics is the system of rules that governs the ordering of values. By applying ethical standards that direct them to act with integrity, managers believe that they and their organizations and communities thrive over the long term.

Question 3

When Pam has to decide whether something is right or wrong, she considers the writings of the ancient teachers Confucius and Marcus Aurelius, whose works she has read many times. These books form the basis of Pam's _____.

A)moral philosophy
B)value system
C)ethical situation
D)relativism
E)egoism

Answer 3

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

Question 4

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

Question 5

Integrity-based ethics programs are primarily concerned with the avoidance of illegality.

Question 6

Which philosophy would be the most likely to emphasize that there are different ethics in different cultures?

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

Question 7

Individuals can be ethical leaders if they have a strong moral character, regardless of what issues actually get most of their attention.

Question 8

Which ethical system was developed by a group of international executives, including business leaders from Japan, Europe, and the United States?

A)The Sabanes-Oxley Act
B)The Caux Principles
C)The Peter Principle
D)Kohlberg's Model
E)Corporate Social Responsibility

Question 9

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

Question 10

Which ethical system states that the greatest good for the greatest number should be the overriding concern of decision makers?

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

Question 11

Sustainable growth refers to economic growth and development that meet the organization's present needs without harming the ability of future generations to meet their needs.

Question 12

Once a year at the annual employee meeting, the president of Federated Finance reminds everyone of his belief that there are certain values that everyone can agree on, such as honesty, fairness, and respect for life. Which ethical system does the president believe in?

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

Question 13

Jarrett believes that ethical behavior is anything that provides the maximum benefit for himself. What ethical system does Jarrett subscribe to?

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

Question 14

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

A)moral
B)legal
C)value
D)relative
E)ethical

Question 15

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

Question 16

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

Question 17

What do people in the preconventional stage of Kohlberg's model of cognitive moral development base their decisions on?

A)Expectations held by groups or institutions
B)Self-chosen ethical principles
C)Laws and regulations
D)Rewards and punishment
E)Religious or philosophical teachings

Question 18

What are business ethics?

A)Principles of conduct, such as caring, being honest, pursuing excellence, and showing loyalty
B)The moral principles and standards that guide behavior in the world of business
C)The system of rules that governs the ordering of economic value
D)A situation, problem, or opportunity in which a political leader must choose among several actions
E)The principles, rules, and values that people use in deciding what is right or wrong for themselves

Question 19

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

Question 20

Values are the rules that govern people's behavior and identify the "goods" that are worth seeking.

Question 21

Rafael believes that everyone should uphold honesty, justice, and kindness so that society can function at its best. Which ethical system best fits Rafael's beliefs?

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

Question 22

According to Milton Friedman, what is the social responsibility of business?

A)To increase profits
B)To redistribute wealth
C)To preserve the environment
D)To spread capitalism
E)To improve the quality of life

Question 23

Which of the following is one of the five higher goals of a transcendent education?

A)Self-awareness
B)Independence
C)Eloquence
D)Tolerance
E)Civil aspiration

Question 24

Which of the following has been identified as a factor that contributes to unethical behavior?

A)Having a written code of ethics
B)Believing that ethical problems have complex solutions
C)Emphasizing short-term revenues over long-term considerations
D)Balancing the demands of all stakeholders rather than giving shareholders priority
E)Having written-out procedures for handling ethical problems

Question 25

Who often suffers the most when corporations behave unethically?

A)The top executives
B)The consumers
C)The rank-and-file employees
D)The corporation lawyers
E)The board of directors

Question 26

Which of the following responsibilities lies at the base of the pyramid of global corporate social responsibility and performance?

A)Legal responsibility
B)Economic responsibility
C)Environmental responsibility
D)Ethical responsibility
E)Philanthropic responsibility

Question 27

Which of the following statements about compliance-based ethics programs are true?

A)The programs are developed by moral thinkers.
B)The programs promote moral excellence in an organization.
C)The programs tolerate some illegal behavior.
D)The programs emphasize personal responsibility for ethical behavior.
E)The programs do not create a moral commitment to ethical conduct.

Question 28

The creation and distribution of wealth generate by-products that can cause injury, loss, or danger to people and the environment. Because of that, we are said to live in a(n) _____ society.

A)hazardous
B)unhealthy
C)toxic
D)risk
E)wasteful

Question 29

How has the view of the business community toward environmental issues changed in the twenty-first century?

A)Business now sees such issues as a no-win situation.
B)Business now sees such issues as a burden and a cost.
C)Business now sees such issues as a business opportunity.
D)Business now sees such issues as yesterday's problem.
E)Business now sees such issues as overblown hype.

Question 30

What does the Sarbanes-Oxley Act, passed in 2002, require of companies?

A)To choose more independent boards of directors
B)To use a looser set of accounting rules
C)To keep two sets of books, one public and one private
D)To have someone other than managers sign off on financial results
E)To pay executives large annual bonuses

Question 31

Joan is a traveling sales representative. Most of her colleagues fill out inaccurate expense records in order to be eligible for extra reimbursement. Joan can either do the same thing or record real, accurate expenses. Joan's situation is an example of _____.

A)a moral rights debate
B)an ethical issue
C)kyosei
D)an avoidance situation
E)greenwashing

Question 32

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

A)Ethnocentrism
B)Ethics
C)Dynamics
D)Legitimacy
E)Dialectics

Question 33

Better Mornings Breakfast Foods Inc. donates large quantities of its products to support a free breakfast program at a school in a disadvantaged neighborhood. This program would be listed on which layer of the pyramid of corporate responsibilities?

A)Legal responsibility
B)Economic responsibility
C)Environmental responsibility
D)Ethical responsibility
E)Philanthropic responsibility

Question 34

The ethical climate of an organization refers to

A)the requirement that companies adhere strictly to accounting rules.
B)decisions based on rewards and punishments and immediate self-interest.
C)ethical behavior that is based on the opinions and behaviors of relevant other people.
D)the processes by which decisions are evaluated and made on the basis of right and wrong.
E)an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

Question 35

A whistleblower is a person who

A)tells others that wrongdoing has occurred.
B)encourages others to commit wrongdoing.
C)serves as legal counsel for an organization.
D)serves as the chief ethical officer of an organization.
E)signs off on the financial results of an organization.

Question 36

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

A)Relativism
B)Sustainability
C)Greenwashing
D)Development
E)Philanthropy

Question 37

What is the goal of ecocentric management?

A)To gain green environmental certification to impress consumers and other stakeholders
B)To make the organization's products and services seem environmentally friendly even if they really are not
C)To reimburse the people adversely affected by the pollution that the organization's past economic activities created
D)To instill an organizational ethics code that is based on the ethical system known as egoism
E)To create sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders

Question 38

Moral awareness involves

A)knowing which actions are required by law.
B)knowing which actions are morally defensible.
C)realizing that an issue has ethical implications.
D)having the strength to act in accordance with your ethics.
E)adopting the values of the most relevant moral leaders.

Question 39

Moral philosophy refers to the _____.

A)system of rules that governs the ordering of values
B)system of ethical ideas that depends on kyosei and human dignity
C)system that promotes the greatest good for the greatest number
D)principles, rules, and values people use in deciding what is right or wrong
E)principles needed to prevent, detect, and punish legal violations

Question 40

Which of the following terms refers to misleading marketing claims about the environmentally friendly nature of a product?

A)Carbon footprint
B)Sustainability
C)Greenwashing
D)Ecomanagement
E)Whistleblowing

Question 41

A person who sees beyond authority, laws, and norms and follows his own self-chosen ethical principles is most likely to be in the _____ stage of Kohlberg's model of cognitive moral development.

A)utilitarian
B)conventional
C)principled
D)preconventional
E)intermediate

Question 42

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

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

Question 43

Which of the following should be done for constructing an effective ethics code?

A)Keep it complex, formal, and rigid so that employees realize how serious it is.
B)Make it as catchy and clever as possible.
C)Involve only the legal department and top executives in writing the statement.
D)Let the employees construct the ethics code according to their ideologies.
E)Focus on real-life situations that employees can relate to.

Question 44

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

A)life-cycle-based
B)compliance-based
C)integrity-based
D)sunshine-framework
E)responsibility-based

Question 45

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 46

Brittany works as a receptionist for a medical office. Some of the doctors have asked her to tell patients that they are in an appointment when in fact they are playing golf. She wants to quit the job because she hates to lie to people and believes that all people should uphold certain values that society needs to function. Which of the following best describes the ethical system used by Brittany?

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

Question 47

Which of the following statements best describes relativism?

A)The greatest good for the greatest number should be the overriding concern of decision makers.
B)Acceptable behavior is that which maximizes benefits for the individual.
C)Ethical behavior should be based on the opinions and behaviors of relevant other people.
D)What is moral goes beyond conventional rules and also comes from what a mature person with good "moral character" would deem right.
E)All rules and laws should be based in the Judeo-Christian system.

Question 48

The Caux Principles are based on two ethical ideals

A)fairness and equality.
B)self-fulfillment and sharing.
C)unity and respect.
D)kyosei and human dignity.
E)honesty and happiness.

Question 49

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 gives senior managers power to not sign off on financial results.
D)It is intended to maintain truth in advertising.
E)It requires whistleblowers to be fired.

Question 50

When he stays in hotels, Jamal packs whatever towels he hasn't dirtied into his suitcase. Because all his friends do the same thing, he thought it was acceptable to do so. In this scenario, which of the following ethical systems has Jamal used to rationalize his decision?

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

Question 51

The management of an organization follows the ideology that if they work keeping in mind the company's own economic self-interest, the total wealth of the society will be maximized. Which of the following best describes the ethical system used by the organization?

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

Question 52

Which of the following is a question associated with the "sunshine" ethical framework?

A)How would your mother feel if she knew you had committed those actions?
B)How would you feel if your actions were reported on the front page of a newspaper?
C)How would you feel if you were on the receiving end of those actions?
D)How would a lawyer evaluate the actions you are considering taking?
E)How would a moral philosopher evaluate the actions you are considering taking?

Question 53

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

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

Question 54

Utilitarianism is centered around the idea that

A)ethical ideas depend on kyosei and human dignity.
B)an ethical system should define acceptable behavior as that which maximizes consequences for the individual.
C)an ethical system with no rules will help bring out the best of people.
D)ethical behavior should be based on the opinions and behaviors of relevant other people.
E)the greatest good for the greatest number should be the overriding concern of decision makers.

Question 55

The top executives of Granite Financial have established processes to review the company's financial dealings and communications with customers to make sure everything is legal and honest yet remain focused on profits. These processes are part of the company's _____.

A)corporate social responsibility
B)ethical climate
C)ecocentric management
D)legal responsibility
E)moral obligation

Question 56

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

A)Excessive emphasis over long-term consideration over short-term revenues
B)Failure to establish a written code of ethics
C)An informal corporate structure
D)Flexible timings that allow employees to choose their hours of work
E)Multiple levels of supervision and monitoring

Question 57

Steve is a marketing agent who determines his work behavior solely on whether he thinks he can do actions without receiving immediate punishment from his boss. According to Kohlberg, which of the following stages of moral development does Steve's behavior exemplify?

A)Principled stage
B)Conventional stage
C)Righteous stage
D)Preconventional stage
E)Unconventional stage

Question 58

Omar acknowledges the importance of the conventional rules of society, but he wants to hold himself to a higher standard, according to the principles that he has decided are moral and ethical. Which of the following best describes the system that Omar uses?

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

Question 59

According to Kohlberg's model of cognitive moral development, people in which of the following stages tend to make decisions based on rewards and punishments and immediate self-interest?

A)Principled stage
B)Conventional stage
C)Righteous stage
D)Preconventional stage
E)Unconventional stage

Question 60

Jessie's behavior is typically guided by what she thinks would be acceptable to her parents. According to Kohlberg, which of the following stages of moral development does Jessie's behavior exemplify?

A)Utilitarian stage
B)Conventional stage
C)Principled stage
D)Preconventional stage
E)Conclusive stage

Question 61

According to John Rawls, 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 62

_____ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

A)Economic
B)Legal
C)Financial
D)Philanthropic
E)Ethical

Question 63

Which of the following is true of whistleblowing?

A)The road for whistleblowers is easy and painless.
B)Whistleblowers are often encouraged by their company to go public.
C)Whistleblowers are seldom given undesirable assignments.
D)Many whistleblowers suffer consequences such as being ostracized.
E)The Sarbanes-Oxley Act prohibits whistleblowing.

Question 64

Making ethical decisions takes moral _____, which helps a person realize that an issue has ethical implications.

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

Question 65

Integrity-based ethics programs involve _____.

A)stated ethics, rules, and policies
B)corporate social responsiveness
C)a set of guiding principles
D)monitoring and punishment
E)discretionary social responsibility

Question 66

To behave ethically, an individual will require not just moral awareness and moral judgment but also

A)social capital.
B)competitive intelligence.
C)creative thinking.
D)moral character.
E)technical skills.

Question 67

Corporate social responsibility is the _____.

A)ethical system stating that all people should uphold certain values that society needs to function
B)obligation toward society assumed by business
C)system that defines acceptable behavior as that which maximizes consequences for the individual
D)ideology that the greatest good for the greatest number should be the overriding concern of decision makers
E)maximization of shareholder wealth

Question 68

Compliance-based ethics programs are typically designed by _____.

A)corporate counsel
B)employees
C)top executives
D)stockholders/owners
E)focus groups of customers

Question 69

Having the strength and persistence to act in accordance with one's ethics despite the challenges is referred to as moral _____.

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

Question 70

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(n) _____ ethics program.

A)compliance-based
B)integrity-based
C)egoism-based
D)competency-based
E)utilitarianism-based

Question 71

Which of the following is most likely to be the last step in an ideal ethical decision-making process?

A)Defining the complete moral problem.
B)Developing an ethical framework.
C)Determining the legal requirements.
D)Understanding all moral standards.
E)Proposing a moral solution.

Question 72

Telling others, inside or outside the organization, about wrongdoing is called _____.

A)ethical shadowing
B)whistleblowing
C)egoism
D)ethical interference
E)moral consequences

Question 73

Within the pyramid of global corporate social responsibility and performance, doing what is required by global stakeholders is categorized as a(n) _____ responsibility.

A)economic
B)legal
C)financial
D)philanthropic
E)ethical

Question 74

Which of the following responsibilities sits at the top of the pyramid of global corporate social responsibility and performance?

A)Legal
B)Economic
C)Moral
D)Ethical
E)Philanthropic

Question 75

Which of the following plays a role in the moral awareness involved in identifying an act as unethical, the moral judgment to fully consider the repercussions, and the moral character to take the ethical action?

A)Courage
B)Legitimacy
C)Intelligence
D)Compliance
E)Knowledge

Question 76

Which of the following levels of corporate social responsibility of business includes meeting societal expectations that are not written as law?

A)Economic
B)Legal
C)Social
D)Philanthropic
E)Ethical

Question 77

Moral judgment involves

A)knowing which actions are required by law.
B)knowing which actions are morally defensible.
C)realizing that an issue has ethical implications.
D)having the strength to act in accordance with your ethics.
E)adopting the values of the most relevant moral leaders.

Question 78

The process for ethical decision making begins with

A)defining the complete moral problem.
B)developing an ethical framework and determining the economic outcomes.
C)considering the legal requirements and evaluating the legal duties.
D)understanding all moral standards and recognizing all moral impacts.
E)proposing a convincing moral solution.

Question 79

Old Salt, a manufacturer of various snack chips, changed its packaging to a more eco-friendly material. Additionally, it has reduced the water used in its production processes. Old Salt states that these actions make the earth a "better place to eat." In this scenario, Old Salt is participating in _____.

A)deregulation
B)corporate entrepreneurship
C)maximizing customer actualization
D)corporate social responsibility
E)corporate wealth enhancement

Question 80

Compliance-based ethics programs

A)are company mechanisms designed to instill in people a personal responsibility for ethical behavior.
B)are designed by corporate counsel to prevent, detect, and punish legal violations.
C)define ethical behavior as that which maximizes consequences for the individual.
D)define ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
E)are designed by the employees to define what ethical standards they should follow.