Deck 4: Corporate Social Responsibility, ethics, and Sustainability

Question 1

Ethics is best defined as the:

A) moral obligation to protect the monetary interests of an organization at all costs.
B) principles by which people distinguish what is morally right.
C) principles by which people understand cultural differences.
D) patterns of behavior related to employees' position in a group.

Answer 1

B

Question 2

Shelley is an accountant for an aerospace company that is going through a financial crisis.To show profits for the company,she uses a "fund" to transfer money from one account to another.This transfer does not meet the right accounting standards.Shelley is guilty of:

A) unethical behavior.
B) bribery.
C) social loafing.
D) groupthink.

Answer 2

A

Question 3

Business decisions should not simply be focused on the degree of economic profit to be earned.There are other factors,including societal consequences,which need to be considered when making decisions about the direction of a business.To which proposition of the Davis Model of Corporate Social Responsibility does this strictly pertain?

A) Business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.
B) The social costs related to each activity, product, or service shall be passed on to the consumer.
C) The social costs and benefits of an activity, product, or service shall be thoroughly calculated and considered in deciding whether to proceed with it.
D) Business institutions have the responsibility to become involved in certain social problems that are outside their normal areas of operation.

Answer 3

C

Question 4

Which of the following is true about ethical behavior?

A) With greater responsibilities, supervisors and other managers in restructured or downsized organizations can more easily monitor employees' day-to-day ethical behaviour.
B) The restructurings, cutbacks, and layoffs of recent years have made ethical behavior easier to encourage.
C) Ethical behaviour tends to increase public pressure for government regulation.
D) The uncertainty of the work environment that makes many employees afraid of being ethical when doing so conflicts with other goals.

Question 5

Kim,the supervisor of the IT team at BHJ Inc.,has a prejudice against Africans and often passes the blame for mistakes on to them.Which of the following dimensions of ethical behavior related to the supervisor is being violated in this case?

A) Loyalty
B) Productivity
C) Fairness
D) Profitability

Question 6

Which of the following is most likely to help U.S.representatives effectively deal with Chinese trading partners?

A) They should place their entire focus on the individual behavior of the Chinese partner in order to win his/her trust.
B) They need to convince their Chinese colleagues to honor Western values or be at a disadvantage.
C) They should know that bribing is an acceptable practice in China and hence should adhere to this practice.
D) They should know that a relationship of trust is likely to count for more than any particular official law and hence should work on building trust.

Question 7

Which of the following is a disadvantage most closely associated with organizations whose employees are unethical?

A) Increase in social loafing
B) Decrease in bid rigging instances
C) Loss of qualified employees
D) Increase in groupthink

Question 8

If the CEO of a company hires a cousin who lacks the required qualification to head a division of the company,then it would be most appropriate to say that he/she is guilty of:

A) nepotism.
B) whistle-blowing.
C) felony.
D) free-riding.

Question 9

Lily works as a supervisor in an overseas division of the American firm,COLOR Inc.In the country where she works,giving a gift is interpreted as the proper way to indicate one's gratitude toward and respect for the receiver.Lily has just received a gift from one of her suppliers and runs the risk of insulting the giver if she refuses to accept it.In the context of ethical behavior,which of the following would be the most appropriate step to be taken?

A) Lily should accept the gift and then present a gift of equal worth to the supplier.
B) Lily should carefully explain the reason for not accepting the gift.
C) Lily should cut off all future transactions with the supplier.
D) Lily should politely decline, but ultimately accept the gift if the giver persists.

Question 10

The Davis Model of Corporate Social Responsibility states that the social costs related to each activity,product,or service shall be passed on to the consumer.This implies that:

A) businesses have a significant impact on societal issues such as environmental pollution and minority employment.
B) business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.
C) business institutions have the responsibility to become involved in certain social problems that are outside their normal areas of operation.
D) consumers must be ready to buy services from businesses to help them maintain operational functions.

Question 11

Some companies have helped individuals make ethical choices in an international context by signing the voluntary:

A) International Labor Treaty.
B) North American Free Trade Agreement.
C) United Nations Development Program Memo.
D) United Nations Global Compact.

Question 12

Meeting high ethical standards is likely to be most challenging for:

A) people who support certain political ideologies.
B) women who have to put up with more hardships than men.
C) people who work in publicly traded companies.
D) those who work with people from more than one culture.

Question 13

Which of the following is an appropriate example of an honest behavior?

A) The supervisor tactfully plays favorites or passes the blame for mistakes on to the employees.
B) The employees make a brilliant suggestion, and the supervisor makes sure that the employees get the credit.
C) The supervisor is seen by others in the organization to put his/her own interests first.
D) The supervisor circumvents company policies to show that the target accomplishment of the company is not affected.

Question 14

Which of the following is one of the propositions of the Davis Model of Corporate Social Responsibility?

A) Whistle-blowers should be identified and prevented from disturbing the work culture of organizations.
B) Business shall operate as a one-way system, with open receipt of inputs from society but controlled disclosure of its operations to the public.
C) The social costs related to each activity, product, or service shall be passed on to the consumer.
D) Business institutions do not have the responsibility to become involved in any social problem that is outside their normal areas of operation.

Question 15

Which of the following is true of business ethics?

A) Ethical standards do not vary from culture to culture.
B) Organizations and employees do not have an obligation to behave ethically.
C) Business ethics is not a major issue, unless one gets caught.
D) Ethical behavior can improve the organization's relations with the community.

Question 16

Corporate social responsibility is best defined as the:

A) degree to which employees adhere to the organization's written statement of its values and rules for ethical behavior.
B) managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization.
C) ability to understand cultural differences which helps businesspeople to interpret behavior accordingly and act ethically.
D) set of customs, processes, laws, policies, and institutions that affect the way a company is directed or controlled.

Question 17

An organization's written statement of its values and its rules for ethical behavior is most appropriately defined as its:

A) mission statement.
B) code of ethics.
C) vision statement.
D) agenda.

Question 18

Nepotism is best defined as the act of:

A) giving into group pressure.
B) hiring one's relatives.
C) whistle-blowing.
D) receiving a bribe.

Question 19

Which of the following is a benefit most closely associated with ethical behavior?

A) Right to undermine a trade embargo
B) Reduction of public pressure for government regulation
C) Improvement of group cohesiveness in a diverse group
D) Rightful acceptance of gifts that fall outside federal government regulations

Question 20

In the United States,the act of giving gifts to one's supervisor is most likely to be interpreted as:

A) a form of bribery, an attempt to buy influence.
B) the expression of one's gratitude toward the receiver.
C) being customary and hence an acceptable behavior.
D) a charge on the corporate account, and hence a tax-deductible expense.

Question 21

A supervisor of a business organization must act in a way that supports the accomplishment of the mission of his or her organization,even at the cost of ignoring its social responsibility.

Question 22

Ethical behavior tends to reduce public pressure for government regulation.

Question 23

Kyra,the supervisor of ATB Inc.,suspects that one of the employees is indulging in unethical practices.She gathers the required evidence to support her case.Which of the following should Kyra's next step be?

A) She should confront the concerned employee with the evidence.
B) She should ignore the incident as it would disrupt the company's productivity.
C) She should immediately correct the conditions that led to the problem.
D) She should protect the employee; otherwise this lapse will reflect badly on her.

Question 24

Sustainability is best defined as:

A) an organization's ability to meet its present needs without compromising the ability of future generations to meet their needs.
B) the degree to which the employees adhere to the organization's written statement of its values and rules for ethical behavior.
C) the ability to understand cultural differences that help businesspeople interpret behavior and act ethically.
D) an organization's ability to protect employees who make complaints pertaining to occupational health and environmental laws.

Question 25

The Davis Model of Corporate Social Responsibility states that businesses have little impact on societal issues.

Question 26

Making ethical decisions ideally involves:

A) focusing on making profits for the company at all costs.
B) deciding what is right and then determining how to carry it out.
C) always sticking to hard-and-fast rules.
D) restricting the whistle-blowers from exposing the company.

Question 27

To be known as an ethical individual or organization is a satisfying way of maintaining a reputation for high standards.

Question 28

Which of the following is most likely to be one of the primary objectives of a sustainable organization?

A) Maximizing profits
B) Conserving natural resources
C) Maximizing the emission of VOCs
D) Maximizing energy use

Question 29

The supervisor can most effectively promote ethical decision making by:

A) involving the employees in the process.
B) practicing nepotism.
C) giving gifts to employees.
D) discouraging whistle-blowers.

Question 30

Which of the following is the first step a supervisor should take when he/she suspects that an employee is behaving unethically?

A) Confront the employee with the evidence
B) Follow the organization's disciplinary procedure
C) Gather and record evidence
D) Look for and correct the conditions that led to the problem

Question 31

Which of the following acts forbids employers from retaliating against an employee who reports possible accounting,auditing,or reporting misdeeds that deceive investors?

A) The Sarbanes-Oxley Act
B) The Gramm-Leach-Bliley Act
C) The U.S. Patriot Act
D) The Federal Information Security Management Act

Question 32

Business institutions,as citizens,have the responsibility to become involved in certain social problems that are outside their normal areas of operation.

Question 33

Many employees are afraid to be ethical because doing so would:

A) cause their customers to go away.
B) lead to the resignation of qualified workers.
C) lead to their termination under the Sarbanes-Oxley Act.
D) cause their performance to suffer and cost them their jobs.

Question 34

A whistle-blower should typically contact a government agency about the violation:

A) as soon as he or she realizes there has been a violation.
B) after he/she has quit, so that the company cannot threaten him/her with the fear of losing a job.
C) only after the matter has been resolved by the human resources department.
D) only after he/she has first brought the matter to the attention of the management and they seem unresponsive.

Question 35

The act of deciding what behavior is ethical:

A) makes one very susceptible to grapevine communication.
B) does not always end an ethical dilemma.
C) makes one prone to be a victim of nepotism.
D) invariably causes one's performance to suffer.

Question 36

Typically,a whistle-blower brings ethics related issues first to a:

A) government agency.
B) media person.
C) manager in the organization.
D) rival organization.

Question 37

A whistle-blower is best defined as a person who:

A) hires his/her own relatives.
B) exposes a violation of ethics or law.
C) bullies his/her subordinates.
D) gives easily into peer pressure.

Question 38

Christie,the supervisor of a library,suspects Ernie,one of the librarians,of selling library books to second-hand book shops.She watches him for the next few days and gathers the required evidence to confirm her suspicion.Then Christie decides to meet with Ernie and discuss the situation.In the context of the course of action to be followed when an employee is suspected of unethical behavior,which step is Christie involved in at present?

A) Correcting the conditions that led to the problem
B) Following the organization's procedure(s)
C) Confronting the employee with the evidence
D) Filing a lawsuit against the employee

Question 39

The supervisor should bear in mind that the typical whistle-blower is a:

A) troublemaker.
B) person with high ideals and competence.
C) vindictive person.
D) person who wants to bring negative publicity to the company.

Question 40

If someone complains about a genuine case of ethical violation,a supervisor should:

A) investigate the complaint and report what will be done.
B) ignore the complaint if it does not affect the company profits.
C) immediately bring it to the attention of the media.
D) advise the whistle-blower to call the police.

Question 41

Organizations whose employees are unethical may lose the respect of customers,but have little problem in acquiring qualified employees.

Question 42

To avoid the occurrence of ethical lapses in the future,the supervisor should try to understand what conditions contributed to the ethical problem at hand.

Question 43

Nepotism is the act of hiring one's enemies as subordinates.

Question 44

Ethical standards are similar across all cultures.

Question 45

Supervisors can better promote ethical decision making by involving others in the process.

Question 46

Supervisors find it easier to be fair when they supervise their own relatives.

Question 47

Employees who are not treated evenhandedly are less likely to breed unethical responses.

Question 48

If a supervisor is sure about remaining objective in the acceptance of cash,or other gifts,others are convinced that the supervisor is most likely to be fair in dealing with them.

Question 49

If supervisors are seen by others in the organization to put their own interests first,they will have little difficulty in earning the loyalty,trust,and respect of others.

Question 50

A code of ethics refers to the list of topics to be covered in a meeting.

Question 51

In all parts of the world,giving a gift is considered the proper way to indicate one's gratitude toward and respect for the receiver.

Question 52

If an organization does business in a country where corruption is expected,employees have little difficulty meeting high standards.

Question 53

When a supervisor tolerates instances of lapses of ethics,it typically makes the guilty employees mend their ways.

Question 54

Deciding what behavior is ethical always ends an ethical dilemma.

Question 55

Steve,a very hard worker,sometimes talks with friends on the office phone and takes office supplies home for personal use.Steve is an unethical employee.

Question 56

Someone who exposes a violation of ethics or law is referred to as a nepotistic.

Question 57

Confronting the employee with the evidence is ideally the last step a supervisor should take when unethical behavior is suspected.

Question 58

Typically,a whistle-blower exposes instances of ethical lapses in his/her company to rival companies.

Question 59

The fear of being laid off often leads employees to cooperate with unethical activities sponsored by others.

Question 60

Hard-pressed employees need flexibility,authority,and ethical leadership to create an environment in which to make principled decisions.

Question 61

Whistle-blowers often suffer for going public with their complaints.

Question 62

How can a supervisor encourage employees to make ethical decisions?

Question 63

Ryan,a supervisor,suspects that one of his employees may be involved in unethical behavior.List the steps Ryan should take to tackle the matter effectively.

Question 64

In an organization that is sustainable,managers make decisions aimed at balancing present needs against the needs of future generations in three areas: the economy,the environment,and society.

Question 65

Why is it especially challenging for one to adhere to high ethical standards when working with people from more than one culture?

Question 66

Respond to the statement,"Business ethics is an oxymoron."

Question 67

Describe some of the benefits of ethical behavior.

Question 68

Elaborate on the Davis Model of Corporate Social Responsibility.

Question 69

Define code of ethics and describe one that can be adopted in this class.

Question 70

Today,many organizations are using hotlines to discourage whistle-blowers.

Question 71

The Sarbanes-Oxley Act forbids employers from retaliating against an employee who reports possible accounting,auditing,or reporting misdeeds that deceive investors.

Question 72

A supervisor's general attitude toward whistle-blowing should be to encourage reports of wrongdoing even when they are motivated simply by pettiness so as to avoid lawsuits.

Question 73

Under a civil war era law that was little used until the late 1980s,whistle-blowers who report on companies that are cheating the government stand to receive up to 30 percent of whatever money the company ultimately pays as a penalty for the fraud.

Question 74

By keeping communication flowing and responding to problems,supervisors run the risk of leading their companies to public embarrassment.

Question 75

Typically,the whistle-blower is resented and rejected by coworkers,and may be either demoted or terminated.

Question 76

As a supervisor,what types of ethical behavior should one ideally practice?

Question 77

A sustainable organization is less likely to have a steady supply of workers and customers.

Question 78

Define the term whistle-blower.What should be the supervisor's attitude toward the whistle-blowers?

Question 79

How can supervisors contribute toward building a sustainable organization?

Question 80

The supervisor should bear in mind that the typical whistle-blower is simply a troublemaker.