Deck 4: The Ethical and Social Environment

Question 1

Legal and ethical guidelines suggest that hiring and firing decisions should be based solely on an individual's ability to perform the job.

Answer 1

True

Question 2

A code of ethics will ensure ethical behavior by employees.

Answer 2

False

Question 3

After Japan won the World Cup one of its players apologized profusely for appearing to criticize the coach.American athletes in many sports criticize fellow players,coaches,and managers.This is an example of how ethical behavior is similar across cultures.

Answer 3

False

Question 4

The highest degree of social responsibility that an organization can exhibit is referred to as the proactive stance.

Question 5

Bernard Madoff defrauded clients out of millions of dollars.This was a failure of ethical leadership.

Question 6

Procedural justice refers to people's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization.

Question 7

The primary agents of interest for an organization besides employees include customers,competitors,stockholders,suppliers,dealers,and unions.

Question 8

Our government uses the tax codes to indirectly influence our behavior.

Question 9

Organizations that take an obstructionist approach to social responsibility meet their basic legal obligations but nothing more.

Question 10

The Internet is also seen as having the potential to play an important role in natural resource conservation,as many e-commerce businesses and transactions are reducing both energy costs and pollution.

Question 11

If competitors from different countries are giving bribes to get contracts in developing countries,it is acceptable under U.S.law that a U.S.company can do the same if it can show competitive reasoning.

Question 12

Informational justice relates to the degree of fairness people see in how they are treated by others in their organization.

Question 13

The Sarbanes-Oxley Act requires CIOs to personally vouch for the truthfulness and fairness of their firms' financial disclosures.

Question 14

The existence of laws and regulations makes it necessary for companies that strive to be responsible to their stakeholders to concentrate first and foremost on government.

Question 15

Organizations themselves do not have ethics.

Question 16

What distinguishes ethical from unethical behavior is often subjective and subject to differences of opinion.

Question 17

Ethics are cultural beliefs about whether behavior,actions,or decisions are right or wrong.

Question 18

Information technology and privacy continues to be an ethical issue.

Question 19

Secrecy and confidentiality are major considerations in the relationship of the employee to the firm.

Question 20

All ethical dilemmas can be avoided.

Question 21

The Nation Football League executives shorted unrestricted free agency requirements from six seasons to four,which gave individual players greater mobility and negotiating power.This is an example of how the

A)culture affects employees.
B)employees and organization treat other economic agents.
C)organization treats the employees.
D)employees treat the organization.
E)code of ethics affects employees.

Question 22

Advertising for Abercrombie and Fitch uses overt sexuality to sell clothes.Ads for Abercrombie,the pre-teen sizes,are only moderately less sexual and products include swim wear with padding in the chest.Many people object to this advertising.This is an example of the relationship of the

A)employee to the firm.
B)firm to the employee.
C)firm to the environment.
D)firm to competitors.
E)employee to the environment.

Question 23

The National Football League Players Association agreed to a salary cap.This is an example of how the

A)culture affects employees.
B)employees and organization treat other economic agents.
C)organization treats the employees.
D)employees treat the organization.
E)code of ethics affects employees.

Question 24

One way the government regulates or tries to influence businesses is by using political action committees.

Question 25

Blowing your own horn is the disclosure by an employee of the illegal or unethical conduct on the part of others within the organization.

Question 26

Congressman Anthony Weiner resigned after sending naked pictures of himself to adult women who were not his wife.His actions were

A)legal and ethical.
B)justified.
C)legal but unethical.
D)illegal and unethical.
E)illegal but ethical.

Question 27

The treatment of employees by the organization includes which area of ethical concern?

A)Conflicts of interest
B)Wages
C)Financial disclosure
D)Advertising
E)Expense accounts

Question 28

The primary economic agents of interest for an organization include

A)customers.
B)competitors.
C)supplies.
D)dealers.
E)All of these choices

Question 29

The extent to which an organization and its members follow basic ethical standards of behavior is called legal compliance.

Question 30

Kweku Adoboli was arrested after losing $2.3 billion of UBS global equities.Adoboli's actions were

A)legal and ethical.
B)moral.
C)legal but unethical.
D)illegal and unethical.
E)illegal but ethical.

Question 31

Which of the following is NOT an example of a situation in which a manager is likely to be called on to make an ethical decision regarding the relationship of the firm to the employee?

A)Hiring and firing
B)Customer relations
C)Working conditions
D)Garnishment of wages
E)Drinking or drug problem

Question 32

Which of the following is an important factor in how the organization treats economic agents?

A)Competitors
B)Unions
C)Customers
D)Owners/stockholders
E)All of these choices

Question 33

Someone's ethical standards are developed as a child in response to his or her

A)parents' and other adults' behavior.
B)peers.
C)religious beliefs.
D)Both parents' and other adults' behavior and peers
E)All of these are correct

Question 34

Women in Saudi Arabia have been arrested for driving.Their actions are

A)legal and ethical.
B)moral.
C)legal but unethical.
D)illegal and unethical.
E)illegal but ethical.

Question 35

Under U.S.law,it is illegal for a U.S.firm operating in a foreign country to pay bribes to get what it needs.Natives of some of those same countries consider the payment of bribes to be perfectly acceptable.Which of the following influences may account for this difference?

A)Cultural differences
B)Economic influences
C)Religious influences
D)Educational systems
E)All of these choices

Question 36

The Food and Drug Administration's focus on consumer-related concerns are a form of direct regulation.

Question 37

The state of Wisconsin took measures to limit the power of state employee unions.This is an example of the

A)relationship of the employee to the environment.
B)relationship of the employee to the firm.
C)relationship of the firm to the employee.
D)relationship of the firm to other economic agents.
E)relationship of the firm to its competitors.

Question 38

Awarding funds or gifts to individuals is called philanthropic giving.

Question 39

All of the following issues stem from how employees treat the organization EXCEPT

A)conflicts of interest.
B)wages and working conditions.
C)secrecy and confidentiality.
D)employee honesty.
E)misappropriation of organizational resources.

Question 40

A corporate social audit is a formal and thorough analysis of the effectiveness of a firm's social performance.

Question 41

Imagine that you are a manufacturer of athletic shoes.Within the organizational context,which of the following ethical behaviors can occur?

A)Government officials inspect employee working conditions.
B)Regulatory agents monitor the company's adherence to ADA regulations.
C)Competitor promotes a low-cost, well-made golfing shoe.
D)Each employee follows his or her own personal code of ethics.
E)All of these choices

Question 42

Which of the following is the MOST common approach to the management of ethics?

A)Top management support
B)A multipage book of organizational policies and procedures
C)An unwritten code of ethics
D)A written code of ethics and top management support
E)government regulation

Question 43

The norm of ____ means determining whether the act is consistent with what most people would see as fair.

A)caring
B)justice
C)rights
D)virtue
E)utility

Question 44

Bernard Madoff defrauded clients out of millions of dollars.The probability that the employees of Madoff's have high ethical behavior is minimal due to

A)a national culture that values ethical behavior.
B)its top management fostering an inappropriate culture.
C)a legal environment that prohibits unethical practices.
D)an economic environment conducive to ethical practices.
E)its low-pressure competitive environment.

Question 45

Joshua is aware that his peers take office supplies home for personal use.To determine if behavior is ethical Joshua should determine

A)whether the act optimizes what is best for everyone.
B)whether the behavior respects the rights of the individuals involved.
C)whether the behavior is consistent with what he sees as being fair.
D)whether the behavior is consistent with people's responsibilities to each other.
E)All of these choices

Question 46

The Sarbanes-Oxley Act requires the ____ to vouch for the truthfulness and fairness of the firms' financial disclosures.

A)CEO
B)CFO
C)COO
D)CEO and CFO
E)CEO, CFO, and COO

Question 47

Boards of directors are responsible for which area of emerging ethical issues?

A)Ethical leaders
B)Ethics issues in information technology
C)Ethics issues in privacy
D)Corporate governance
E)None of these choices

Question 48

Traditionally,experts have suggested a three-step model for applying ethical judgments to situations that may arise during the course of business activities.The first step is to

A)gather the relevant factual information.
B)appoint an ombudsman.
C)locate a mediator.
D)determine what is lacking in the organization culture.
E)determine the most appropriate moral values.

Question 49

____ justice relates to the degree of fairness people see in how they are treated by others in their organization.

A)Organizational
B)Distributive
C)Procedural
D)Interpersonal
E)Informational

Question 50

The Coca-Cola Foundation awarded grants to communities for water conservation and community recycling.This is an example of which area of social responsibility?

A)General social welfare
B)The natural environment
C)Organizational stakeholders
D)The task environment
E)The internal cultural environment

Question 51

Which of the following represents a major shortcoming associated with the implementation of codes of ethics and ethics training programs?

A)They often fail to help people deal with the consequences of their actions.
B)Usually, they are not very comprehensive in coverage.
C)Usually, they are too complicated.
D)They often fail to give specific guidance about what is ethical.
E)They are often given only lip service by middle management.

Question 52

The success of any culture to promote ethical behavior in a society depends on

A)a national culture that values ethical behavior.
B)top officials fostering an appropriate culture.
C)a legal environment that prohibits unethical practices.
D)an economic environment conducive to ethical practices.
E)all of these choices.

Question 53

Which of the following is the MOST important action that top managers can take to promote ethical behavior?

A)Lobby for legislation dealing with ethics
B)Adhere to ethical standards themselves
C)Punish those who are unethical
D)Establish organizational policies
E)Establish a fair performance appraisal system

Question 54

Any effort to enhance an organization's ethical behavior must begin with

A)the appointment of an ombudsman.
B)a review of the internal environment.
C)the development of a formalized code of ethics.
D)a modification of the ethical codes of employees who interact with stakeholders.
E)the support of top management.

Question 55

The University of Michigan rented the stadium to a couple,both graduates,for their wedding on the fifty yard line.The couple said it was a dream come true.This is an example of

A)the treatment of the organization by the individual
B)organization culture.
C)the treatment of other agents by the organization.
D)the organizational environment.
E)the treatment of employees by the organization.

Question 56

According to the concept of managerial ethics,which of the following is NOT considered an economic agent?

A)Competitors
B)Suppliers
C)Unions
D)Regulatory agencies
E)Owners/stockholders

Question 57

Target selected 42 schools to receive new libraries.This is an example of which area of social responsibility?

A)General social welfare
B)The natural environment
C)Organizational stakeholders
D)The external political-legal environment
E)The external cultural environment

Question 58

Which of the following is NOT a way in which the organizational context contributes to the use of unethical practices?

A)A manager becomes aware of an unethical practice, but allows it to continue.
B)Unethical activity is encouraged as long as it is in the best interests of the firm.
C)Rewards are provided to those who succeed at the cost of others.
D)An employee is promoted for finding a way around a legal regulation designed to protect the environment.
E)A manager decides to hire a relative to a position for which the relative is qualified.

Question 59

Which of the following is part of the organizational context in which ethical/unethical behaviors occur?

A)Organizational practices
B)The regulatory environment
C)The competitive environment
D)Personal ethical standards
E)All of these choices

Question 60

____ justice refers to people's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization.

A)Organizational
B)Distributive
C)Procedural
D)Interpersonal
E)Informational

Question 61

When Girl Scouts sell cookies at Shop Rite,they are given a place to stand.When they sell at Wal-Mart the company eventually donates to their troop.Target does not allow any Girl Scout to sell cookies in front of stores.Shop Rite is an example of the ____ stance.

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

Question 62

For firms that do NOT want to take a proactive stance with respect to social responsibility,the next most responsible position in the eyes of proponents of social responsibility would be a(n)____ stance.

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

Question 63

Many builders are using fiber-cement siding to build houses.This siding is best painted with a soy-based,environmentally friendly paint.Most paint is not biodegradable because it is made with petroleum solvents.A builder who decided to build a subdivision with 500 homes and paint each with the soy-based paint would be an example of which general area of social responsibility?

A)General social welfare
B)The natural environment
C)Legal compliance
D)The task environment
E)The internal cultural environment

Question 64

Auto manufacturers are required to attain a certain average fuel-efficiency level for all the cars they sell.They try to attain the mandated levels,but they also try to get deadline extensions.The auto makers' approach to social responsibility is a(n)____ stance.

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

Question 65

Judith Cruz,the executive director of the Treasure Coast Food Bank,had a logistics problem.She contacted Wal-Mart to ask for management advice.Members from Wal-Mart's distribution team arrived at the food bank,helping it improve its warehousing,sorting,and routing,to allow more food deliveries per week.The food bank went from serving 42,000 meals per week to more than 100,000 meals.The partnership negates the argument against social responsibility that says

A)based on their legal status, organizations are technically prohibited from such activities.
B)such activity detracts from the basic mission society has given business.
C)social responsibility programs have the potential to create substantial conflicts of interest.
D)business executives lack the expertise to make decisions about social programs.
E)there is too much potential for the abuse of the power that corporations have already without adding to it.

Question 66

Which of the following statements is NOT one of the arguments offered in favor of social responsibility?

A)Corporations are citizens.
B)Corporations have ample resources.
C)Corporations lack expertise.
D)Corporations create problems and should help solve them.
E)All of these choices

Question 67

The inclusion of a biologist in decisions that affect the local community is an example of which area of social responsibility?

A)General social welfare
B)The natural environment
C)Legal compliance
D)The task environment
E)The internal cultural environment

Question 68

When IBM makes large contributions to the performing arts,this is an example of which general area of social responsibility?

A)General social welfare
B)The natural environment
C)Legal compliance
D)The task environment
E)The internal cultural environment

Question 69

The Internet and e-commerce affects the natural environment by

A)reducing energy costs and pollution.
B)sending electronic pulses into the air.
C)increasing package delivery and increasing pollution.
D)depleting ozone.
E)decreasing charitable contributions.

Question 70

All of the following are basic approaches to social responsibility EXCEPT

A)accommodative stance.
B)defensive stance.
C)reactive stance.
D)proactive stance.
E)obstructionist stance.

Question 71

Companies that meet their economic and legal responsibilities but do not go beyond them are exhibiting a(n)____ approach to social responsibility.

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

Question 72

When Girl Scouts sell cookies at Shop Rite,they are given a place to stand.When they sell at Wal-Mart the company eventually donates to their troop.Target does not allow any Girl Scout to sell cookies in front of stores.Wal-Mart is an example of the ____ stance.

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

Question 73

Which of the following is NOT one of the arguments offered by those who oppose corporations habitually engaging in social responsibility programs?

A)Based on their legal status, organizations are technically prohibited from such activities.
B)Such activity detracts from the basic mission society has given business.
C)Social responsibility programs have the potential to create substantial conflicts of interest.
D)Business executives lack the expertise to make decisions about social programs.
E)There is too much potential for the abuse of the power that corporations have already without adding to it.

Question 74

When Girl Scouts sell cookies at Shop Rite,they are given a place to stand.When they sell at Wal-Mart the company eventually donates to their troop.Target does not allow any Girl Scout to sell cookies in front of stores.Target is an example of the ____ stance.

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

Question 75

Genzyme is a pharmaceutical company that manufactures Cerdase,a drug that treats a genetic illness called Gaucher's disease,which is a life-threatening illness that affects 20,000 people worldwide.A year's supply of the drug costs $200,000.Given what you know about the various approaches to social responsibility,you might assume that Genzyme takes a(n)____ stance.

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

Question 76

Managers who agree with Milton Friedman's economic arguments against social responsibility will most likely take an approach to social responsibility known as a(n)____ stance.

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

Question 77

Companies that take a(n)____ stance to social responsibility cross the ethical or legal line that separates acceptable from unacceptable practices,and often deny or cover up their actions.

A)accommodative
B)reactive
C)participative
D)defensive
E)obstructionist

Question 78

Which of the following statements is NOT one of the arguments offered in favor of social responsibility?

A)Business should fix the problems it creates.
B)Businesses have resources needed to solve some social problems.
C)Business executives are uniquely qualified to make decisions such as these.
D)Business is a partner in society with the government and the general population.
E)Corporations have many of the same obligations and privileges as private citizens.

Question 79

The Siemens Foundation uses money to support and promote the importance of math,science,and technology education.It is taking a(n)____ approach to social responsibility.

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

Question 80

New York passed a law requiring no smoking in bars and restaurants.Owners who pressure bartenders and waiters to sell to people who are smoking in order to keep profits high are taking a(n)____ stance toward social responsibility.

A)reactive
B)obstructionist
C)proactive
D)accommodative
E)participative