Deck 4: Corporate Social Responsibility, Ethics, and Sustainability

Question 1

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

A) The right to undermine a trade embargo
B) The reduction of public pressure for government regulation
C) The improvement of group cohesiveness in a diverse group
D) The rightful acceptance of gifts that fall outside federal government regulations

Answer 1

B
Explanation: As well as earning approval, ethical behavior tends to reduce public pressure for government regulation-a situation that most managers would view as beneficial.

Question 2

Which of the following is the primary effect of teaching supervisors about the importance of ethics?

A) It improves productivity in anorganization.
B) It helps supervisors ineliminating quality control processes.
C) It helps supervisors enhance their human relations skills. . It promotes social responsibility in an organization.

Answer 2

D
Explanation: One way of promoting social responsibility in organizations is teaching supervisors about the importance of ethics.In general, ethics refers to the principles people use to distinguish what is morally right.

Question 3

According to the Davis model of corporate social responsibility,businesses need to help solve societal issues that may be outside their normal realm of action because:

A) all businesses have a legal obligation to solve societal issues that are outside their realm of action.
B) it will help businesses to avoid all kinds of government regulation.
C) businesses can increase their profits by solving societal issues.
D) businesses form a central ethical core from which communities derive their social values.

Answer 3

C
Explanation: According to the Davis model of corporate social responsibility, businesses need to help solve societal issues that may be outside their normal realm of action. In theory, as societal issues aresolved, businesses will see increased profits, which will strengthen the argument for businessestaking action to solve societal problems.

Question 4

Which of the following is true about organizations whose employees are unethical?

A) They are highly respected by their competitors, rivals, and employees.
B) They usually have longer production chains.
C) They lose customers who are uncompromising.
D) They avoid using mind mapping techniques.

Question 5

Shelley is an accountant at 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.However,this transfer is against right accounting standards.In this scenario,Shelley is guilty of:

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

Question 6

In the context of the Davis model of corporate social responsibility,businesses must listen to the public to understand what can be done to improve society as a whole because businesses:

A) have a financial obligation to solve societal issues that are outside their realm of action.
B) form a central ethical core from which communities derive their social values.
C) operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.
D) have an inclination toward reducing social costs of activities, products, and services which benefit the masses.

Question 7

Which of the following is a proposition 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 8

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) values that help people understand cultural differences.
D) patterns of behavior related to employees' positions in a group.

Question 9

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. . consumers must be ready to buy services from businesses to help them maintain operational functions.

Question 10

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 socially.
D) set of customs, processes, laws, policies, and institutions that affect the way a company is directed or controlled.

Question 11

Ethical behavior is part of a range of behaviors that ensure:

A) preservation of informal culture in a company.
B) optimum return on investments to a company.
C) an organization's long-term success.
D) the financial growth of a few employees in an organization.

Question 12

In the context of benefits of ethical behavior,ethics helps in:

A) eliminating quality control processes.
B) eliminatingcorporate responsibilities.
C) distinguishing right from wrong.
D) deciphering an organization'sproductive trends.

Question 13

In the context of ethical behavior,the termbusiness ethics acts as an oxymoron when:

A) profitability is the overriding concern of a business.
B) the cost of social responsibilities is relatively cheap for a business concern.
C) organizations contribute to an environment that encourages ethical actions.
D) organizations and individuals consider the common good.

Question 14

Companies that practice ethical behavior:

A) are likely to perform well in stock trading.
B) have relatively low return on investment.
C) almost always take a long time to optimize profits.
D) impose strict regulations on employees.

Question 15

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

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

Question 16

In the context of the Davis model of corporate social responsibility,it is important for businesses to act in socially responsible ways because businesses:

A) have a significant impact on societal issues such as environmental pollution and minority employment.
B) form a central core from which communities derive their social values.
C) focus solely on the degree of economic profit to be earnedand thusgain social power.
D) have a social obligation to create goods and services for the masses.

Question 17

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.

Question 18

Being an ethical organization helps in:

A) creating an artificial demand to sell goods.
B) improving conceptual skills of employees.
C) reducing unnecessary process costs.
D) maintaining a reputation for high standards.

Question 19

Boris,a production manager at Flensel Inc.,asks his subordinates to learn how to distinguish what is morally right.In the context of corporate social responsibility,Boris is talking about the importance of _____.

A) nepotism
B) ethics
C) codes
D) delegation

Question 20

Which of the following is true of business ethics?

A) Ethical standards are universal in nature.
B) Supervisors should refrain from balancing between meeting an organizational goaland benefitting the society at the same time.
C) Business ethics is aninsignificantissue unless one gets caught.
D) Ethical behavior can improve anorganization's relations with the community.

Question 21

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 behavior.
B) Legal activities that are against company policy can never result infiring.
C) Unethical behaviorhas organizational but not personal consequences.
D) The uncertainty of awork environment makes many employees afraid of being ethical when doing so conflicts with other goals.

Question 22

Max,a new employee at Glanx Inc.,is being informedabout the company's values and habits that will help him distinguish right from wrong.In the context of corporate social responsibility,Max is learning the company's _____.

A) business agenda
B) code of ethics
C) rules of sustainability
D) formal behavior

Question 23

Steve,a very hard-working supervisor,sometimes talks with his friends using the office phone and takes office supplies home for personal use.Steve's behavior is _____.

A) unsustainable
B) unethical
C) biased
D) nepotistic

Question 24

Which of the following is an advantage of ethical behavior to an organization?

A) High costs of social responsibility
B) Attracting customers and good employees
C) Higher conceptual skills in employees
D) Increased pressure for government regulation

Question 25

Which of the following statements is trueof cultural diversity affecting the ethical behavior of employees?

A) Ethical behavior is easy to practice in a company with cultural diversity.
B) Ethical values differ from culture to culture.
C) Ethical behavior is easy to practice in countries with high corruption levels.
D) Ethical values are a vague concept in a diverse cultural environment.

Question 26

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 27

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 accountand, hence, a tax-deductible expense.

Question 28

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

A) people who support 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 29

It is difficult to practice clear corporate values and business-related standards in countries with high corruption because:

A) employees in these countries are often unsure if they are seeing misconduct.
B) people in these countries have poor understanding of codes of ethics.
C) monetary rewards are the primary concern of the employees in these countries.
D) the giving of gifts often is interpreted as bribery in these countries.

Question 30

If an organization does business in a country where corruption is expected,employees:

A) have relatively less difficulty being ethical.
B) can have more difficulty meeting high standards.
C) are generally sure of what can be categorized as misconducts.
D) are always sure aboutwhat the company expects of its people.

Question 31

Steve,a supervisor,works in a country where corruption levels are relatively high.As a direct consequence of this,Steve will have difficulty:

A) being productive.
B) practicing ethical values.
C) dealing with immediate subordinates.
D) improving the efficiency of his team.

Question 32

Lily works as a supervisor in an overseas division of anAmerican firm named 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 will 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 insists.

Question 33

An organization's written statement of its values and its rules for ethical behavior most accurately defines the term:

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

Question 34

Which of the following is the reason why employees in organizations feel high ethical standards are of less importance?

A) Practicing ethical standards always conflicts with the productivity goals of companies.
B) Companies often focus too much on measuring productivity than practicing ethical standards.
C) Employees behave most ethically when they do not have access to all the resources they need to meet their goals.
D) Meeting high ethical standards is especially easy for those who work with people from more than one culture.

Question 35

Phillip,the CEO of Texonet Inc.,thinks it is beneficial for the company to print a booklet that contains values and rules for right behavior in the company and distribute it to the employees.He thinks it will help employees to distinguish between right and wrong behavior.In this scenario,Phillip is thinking of printing the company's _____.

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

Question 36

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 or 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 practice it regularly.
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 37

In the context of ethical behavior,Western ideals tend to focus on _____ behavior.

A) fraternal
B) individual
C) ethnocentric
D) nepotistic

Question 38

Understanding cultural differences helps in:

A) reducing the operational costs of a company.
B) creating formal norms that improve productivity.
C) establishing quality control processes in acompany.
D) interpreting behavior in order to arrive at agreements.

Question 39

Steven,the CEO ofa company based in the U.S.travels toChina to meetthe CEO of a Chinese companyin order to discuss a jointmarketing strategy.Which of the following steps shouldSteven take up?

A) He must start with a meeting on critical business strategies.
B) He shouldestablish a relationship of trust before beginning business talk.
C) He must focus on innovative marketing to make the jointmarketing strategy a success.
D) He shouldfocus only on explaining the advantages of coordinating with each other.

Question 40

In the context of challenges to ethical behavior,the restructurings,cutbacks,and layoffs of recent years have made ethical behavior:

A) impossible to practice.
B) a norm in the business world.
C) mandatory to follow.
D) harder to encourage.

Question 41

Loyalty,fairness,and honesty are _____ that supervisors must follow.

A) authoritarian values
B) requisites of formal conduct
C) dimensions of ethical behavior
D) important controlling techniques

Question 42

Sheng,a new employee at Agrocan Inc.,suggests a brilliant idea to his supervisor.Which of the following is anethical actionthat Sheng's supervisor should take in this situation?

A) The supervisor must ask Sheng to improve his idea in order to make it more practical.
B) The supervisor should use the idea and make sure that Sheng gets the credit.
C) The supervisor can use the idea as his ownand compensate Sheng with monetary rewards.
D) The supervisor must ignore the idea because new employees like Sheng seldom understand company processes.

Question 43

A supervisor acquired a self-centric attitude toward work.In this case,which dimension of ethical behavior did the supervisor violate?

A) Honesty
B) Sincerity
C) Openness
D) Loyalty

Question 44

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

A) cause their customers to go away.
B) limit confronting other employees with evidence.
C) lead to their termination under the Sarbanes-Oxley Act.
D) cause their performance to suffer and cost them their jobs.

Question 45

Making ethical decisions ideally involves:

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

Question 46

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 ethical performance to suffer.

Question 47

A 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 48

A supervisor may find it harder to be fair when they supervise their own relatives.In the context of ethical behavior of supervisors,this situation can result from _____.

A) dishonesty
B) nepotism
C) disloyalty
D) egotism

Question 49

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

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

Question 50

Which of the following is the last step in dealing with an employee suspected of unethical behavior?

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

Question 51

Discussing ethical implications of a decision with subordinates can help a supervisor:

A) confront them with evidence in case the decision has inadequate effects.
B) disperse responsibility for decisions which can result in negative consequences.
C) see consequences and options that he or she might not have thought of alone.
D) decide which employee is good at decision making.

Question 52

As a leader,a supervisor is expected to _____.

A) practice nepotism
B) eliminate quality control processes
C) be loyal to the organization and subordinates
D) increase organizational profits solelyby being a perfectionist

Question 53

Kiran,the supervisor of the information technologyteam at BHJ Corp.,has a prejudice against the Africans working in the company and often passes the blame for mistakes on to them.Which of the following is the dimension of ethical behavior that is violated in this case?

A) Loyalty
B) Accountability
C) Fairness
D) Openness

Question 54

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 55

Branden,a supervisor at Xenze Inc.,has been working in the organization for more than 5 years.He meets the human resource manager of a rival company in a restaurant,who offers him a better position with increased monetary benefits.Branden is in an ethicaldilemma ofquitting his job at Xenze Inc.and joining the rival company.In the context of ethical behavior of supervisors,Branden is in an ethical dilemma because his _____ will be in question.

A) loyalty
B) delegation
C) fairness
D) openness

Question 56

Employees expect to be treated evenhandedly.Which of the following behavioral qualities of a supervisorrelates to this statement?

A) Loyalty
B) Creativity
C) Fairness
D) Openness

Question 57

Which of the following is a way by which a supervisor can ensure his or her subordinates accept ethical decisions made by him or her?

A) Asking subordinates to make their own decisions
B) Giving subordinates the right to offer their perspectives in making decisions
C) Holding subordinates responsible forwrong decisions
D) Creating norms that restrict subordinates from conceptual thinking in decisionmaking

Question 58

Which of the following is the first step a supervisor should take when he or 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 59

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

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

Question 60

Barbara,a supervisor at SnowLenzCorp.,supervises ten employees.However,she treats Eliza,one of her ten subordinates,as her favorite.She often assigns Eliza relatively easier jobs so that her productivity is always high.Other employees are unhappy with Barbara's behavior.In the context of ethical behavior of supervisors,Barbara's subordinates were unhappy because she failed to practice _____.

A) loyalty
B) fairness
C) honesty
D) openness

Question 61

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 62

A supervisor's general attitude toward whistle-blowing should be to:

A) expose all whistle-blowers to the media.
B) agree with the top management if they decide to fire the whistle-blower.
C) forbid the same whistle-blower from retaliating against employees again.
D) discourage reports of wrongdoing when they are motivated simply by pettiness.

Question 63

Nathan,a production manager at OCSET Inc.,asks his employees to reduce wastage of raw materials.He desires to instill a habit in the employees of producing high quality products with as little resources as possible.He thinks it will help in preserving natural resources for coming generations.In the context of corporate social responsibility,Nathan is trying to make his company more _____.

A) sustainable
B) approachable
C) accountable
D) reliable

Question 64

Aisha,a supervisor at Teserel Corp.,suspects that one of her subordinates,Gilbert,is selling the trade secrets of Teserel to a rival company.She confronts Gilbert and questions him.However,Aisha finds that her information about Gilbert is wrong.Which of the following steps should Aisha have taken while supervising Gilbert?

A) Aisha should have followed Teserel's disciplinary procedures before questioning Gilbert.
B) Aisha should have gathered and recorded evidence before questioning Gilbert.
C) Aisha should have corrected the problem first in order to avoid similar ethical lapses in the future.
D) Aisha should have forgiven Gilbert and given him another chance rather than questioning him the first time.

Question 65

The supervisor should bear in mind that a 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 a company.

Question 66

Kyra,a supervisor at Hercules Industries,suspects that one of her subordinates is indulging in unethical practices.She gathers the required evidence to support her case.Which of the following should be Kyra's next step?

A) Confronting the concerned employee with the evidence
B) Ignoring the incident as it would disrupt the employee's productivity
C) Immediately correcting the conditions that led to the problem
D) Protecting the employee in case this lapse reflects badly on her

Question 67

Zachary,the CEO of TeleCarz Inc.,desires to enhance his organization's ability to meet its present needs without compromising the ability of future generations to meet their needs.In the context of corporate social responsibility,Zachary is focusing on _____.

A) sustainability
B) profitability
C) accountability
D) reliability

Question 68

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

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

Question 69

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

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

Question 70

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

A) Minimizing customer demand
B) Conserving natural resources
C) Maximizing the emission of VOCs
D) Maximizing energy use

Question 71

When organizations put in efforts to achieve sustainability,the effort to become sustainable starts with _____.

A) hiring people with sustainability skills
B) tracking progress toward sustainability
C) rewarding contributions to sustainability
D) setting sustainability goals

Question 72

The Sarbanes-Oxley Act:

A) helps in formulating codes of conduct for a company.
B) is designed to protect nepotism.
C) agitates whistle-blowers to sue their companies.
D) forbids employers from retaliating against whistle-blowers.

Question 73

Whistle-blowers are protected by federal laws because:

A) none of the state laws offer them any protection.
B) organizations may retaliate against them due to costs incurred for wrong-doing.
C) the Sarbanes-Oxley act allows employers to sue whistle-blowers for losses incurred.
D) publicly speaking about a company's misdeeds is irresponsible behavior.

Question 74

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 government agencies.

Question 75

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

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

Question 76

Sustainability is best defined as:

A) the ability of an organization 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 helps businesspeople interpret behavior and act ethically.
D) the ability of an organization to protect employees who make complaints pertaining to occupational health and environmental laws.

Question 77

Clayton,an accounts manager at Zonfex Corp.,finds discrepancies in the company's financial records.He finds that Zonfex is practicing unlawful accounting and eventually exposes the company in a press conference.In the context of corporate social responsibility,Clayton is a(n)_____.

A) unethical employee
B) nepotistic executive
C) corporate traitor
D) whistle-blower

Question 78

A whistle-blower typically brings ethics-related issues first to a:

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

Question 79

Whistle-blowers often suffer for going public with their complaints because:

A) they are often dishonest about their complaints and claims.
B) speaking in public about a company's misdeeds is legally considered irresponsible behavior.
C) they are generally rejected and resented by co-workers and may be demoted or terminated.
D) they often exaggerate about the company's misdeeds and this leads to social discrimination.

Question 80

Simone,an employee at Artworx Inc.,gets into a heated argument with her colleague,Robert,over a petty issue regarding a parking slot.Their supervisor,Zahra,knows about this argument.Simone,with the motive of getting back at Robert,approaches Zahra and tells her that Robert uses unethical practices and there are discrepancies in his financial records.Which of the following actions should Zahra take in this scenario?

A) Zahra should act on the information and speak with Robert.
B) Zahra should fire Robert for aggravating such petty issues.
C) Zahra should protect Simone while covering up for Robert.
D) Zahra should ignore Simone's complaint the first time.