Deck 4: Ethics and Social Responsibility

Question 1

Under the moral rights rule,an ethical decision is one that distributes benefits and harms among people and groups in a fair,equitable,and impartial way.

Answer 1

False
Explanation: Under the moral rights rule,an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it.

Question 2

Ethics and "the law" are the same thing.

Answer 2

False
Explanation: Both ethical and legal rules are relative: No absolute or unvarying standards exist to determine how we should behave,and people are caught up in moral dilemmas all the time.

Question 3

All stakeholders benefit in the long run from companies making the right choices.

Answer 3

True
Explanation: If all companies make the right choices,all stakeholders will benefit in the long run.

Question 4

The local communities in which an organization operates are generally not considered to be true stakeholders of the organization.

Question 5

Managers are the stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders.

Question 6

Laws and regulations lead to the development of ethical beliefs.

Question 7

Ethical beliefs lead to the development of laws and regulations.

Question 8

Steve has noticed that there has been an error in his weekly pay stub and the company has unknowingly paid him too much.Steve's pondering about whether to report this issue is an ethical dilemma.

Question 9

Though laws often change,ethical principles remain constant and do not change over time.

Question 10

Stockholders are interested in the ethical practices of the company because they want to maximize the return on their investment.

Question 11

Customers are stakeholders of an organization,but managers are not.

Question 12

Michael was faced with a serious ethical dilemma.He chose a solution that created the greatest good for the greatest number of people.Michael was using the utilitarian rule.

Question 13

Customers are often regarded as the most important stakeholder group.

Question 14

Moral principles,values,or beliefs about what is "right" or "wrong" are known as ethics.

Question 15

When applying the moral rights rule,managers should choose the course of action that best protects and upholds their personal rights.

Question 16

In order for an organization to survive and prosper,it needs to satisfy its stakeholders.

Question 17

Employees are stakeholders of a company.

Question 18

Under the utilitarian rule,an ethical decision is that which creates the greatest good for the greatest number of people.

Question 19

Company decisions that favor one group of stakeholders will always benefit the interests of other stakeholders.

Question 20

Stakeholders have a claim on a company because when they buy its stock or shares they become its owners.

Question 21

______ lead to the development of ______.

A)Laws;ethical beliefs
B)Regulations;ethical beliefs
C)Ethical beliefs;laws
D)Laws;terminal values
E)Regulations;laws

Question 22

Applying the practical rule to analyze a business decision ensures that managers are taking into account the interests of all stakeholders.

Question 23

Dianna has noticed that there has been an error in her weekly pay stub and the company has unknowingly paid her too much.Dianna's pondering about whether to report this issue is a(n):

A)Moral scruple
B)Ethical dilemma
C)Ethic
D)Norm
E)Emotion

Question 24

Decisions that protect the rights of some stakeholders often hurt the rights of others.

Question 25

From a moral rights perspective,managers should compare alternative courses of action on the basis of how each will affect the rights of each stakeholder group.

Question 26

An organization's code of ethics is shaped by the ethics of the top managers of the organization.

Question 27

Trust,the esteem or high repute that people or organizations gain when they behave ethically,is an important asset.

Question 28

The moral principles and beliefs about what is "right" and "wrong" are known as:

A)Reputation
B)Laws and regulations
C)Ethics
D)Terminal values
E)Instrumental values

Question 29

___________ are thoughts and feelings that tell people what is right or wrong.

A)Moral scruples
B)Ethical dilemmas
C)Ethics
D)Norms
E)Emotions

Question 30

Web sites like Napster that allow for the free downloading of songs and movies can be viewed as a "tragedy of the commons" because pursuit of self interest will destroy the societal interest.

Question 31

Which of the following is NOT a stakeholder for an organization?

A)Customers
B)Employees
C)Suppliers
D)The local community
E)Competition

Question 32

A company's stance on social responsibility is the way its managers and employees view their duty or obligation to make decisions that protect,enhance,and promote the welfare and well being of stakeholders and society as a whole.

Question 33

People or groups that supply a company with its productive resources are called:

A)Suppliers
B)Top management
C)Shareholders
D)Stockholders
E)Stakeholders

Question 34

Under the justice rule,managers should determine fair rules and procedures for distributing outcomes to stakeholders.

Question 35

Jim is comfortable with his decision and would have no problem with people reading about it on the front page of a morning paper.It can be said that Jim is following the guidelines of the practical rule.

Question 36

"An ethical decision is one that a typical person in a society would think is acceptable" is a statement that reflects the practical rule.

Question 37

Stockholders are interested in the way a company operates because they:

A)Use the company's products
B)Believe in being ethical
C)Want to maximize ROI
D)Want to avoid all risks
E)Like to be in control

Question 38

The way a company's managers view their duty to make decisions that enhance the well being of stakeholders is called organizational ethics.

Question 39

When one person starts to profit from being unethical it encourages other people to act in the same way.

Question 40

The standards that govern how members of a profession should conduct themselves are called organizational ethics.

Question 41

Ethical behavior does NOT:

A)Increase a company's efficiency
B)Increase a company's effectiveness
C)Increase a company's performance
D)Reduce the national standard of living
E)Increases the national well-being

Question 42

Michael was faced with a serious ethical dilemma.He chose a solution that created the greatest good for the greatest number of people.Which ethical rule was Michael using?

A)Justice
B)Moral Rights
C)Utilitarian
D)Practical
E)Moral Scruples

Question 43

One managerial implication of the justice model is that managers should base their decisions on:

A)The effects on stakeholders' rights
B)What provides the maximum benefit to most stakeholders
C)Whatever promotes a fair distribution of outcomes
D)Arbitrary factors
E)The organization's culture

Question 44

The idea that the pursuit of self-interest with no consideration for societal interests leads to disaster is called the:

A)Tragedy of the commons
B)Tragedy of errors
C)Tragedy of the sheep
D)Consequences of selfishness
E)Curse of unethical behavior

Question 45

The stakeholder group with the most responsibility for deciding the goals of the organization is:

A)Stockholders
B)Customers
C)Managers
D)Working-level employees
E)Consultants

Question 46

If Michelle was employing the moral rights model of ethics in her decision making,she would:

A)Seek to protect the privileges of people affected
B)Maximize the greatest good for the greatest number of people
C)Distribute benefits in fair ways,but ignores harm
D)Distribute both benefits and harms in a fair way
E)Randomly distribute harms and benefits

Question 47

Because it promotes the pursuit of self-interest that will destroy the societal interest,Web sites like Napster that allow for the free downloading of songs and movies can be viewed as a:

A)Consequences of the commons
B)Tragedy of the commons
C)Tragedy of the field
D)Consequences of selfishness
E)Curse of unethical behavior

Question 48

Which of the following would NOT be a reason why the City of St.Louis would be considered a stakeholder with the St.Louis Cardinal organization?

A)The city provides utilities
B)The organization contributes to the economy of the city
C)The community provides homes for the players/workers
D)The city provides tax revenue to the organization
E)The city provides the necessary infrastructure that aids in operation

Question 49

As Bob was figuring the yearly bonuses for his employees,he paid particular attention to the percentages to ensure they were based on performance and not favoritism.Which ethical rule was Bob following?

A)Practical
B)Moral Scruples
C)Utilitarian
D)Justice
E)Moral Rights

Question 50

The _____________ rule is that an ethical decision is one that distributes rewards and harms in a fair way.

A)Justice
B)Moral rights
C)Utilitarian
D)Practical
E)Moral scruples

Question 51

According to the practical rule,a managerial decision that the manager has no hesitation or reluctance about communicating to people outside the company is called a(n):

A)Moral scruple
B)Popular decision
C)Socially responsible decision
D)Social audit
E)Ethical decision

Question 52

Under the practical rule,a manager would not be reluctant to communicate a decision to people outside the company when:

A)He/she could announce the decision anonymously
B)A typical person would consider the decision acceptable
C)A typical person wouldn't care about the decision
D)A typical person wouldn't know about the decision
E)He/she could blame top management of the firm

Question 53

The esteem or high repute that individuals or organizations gain when they behave ethically is called:

A)Trust
B)Reputation
C)Social responsibility
D)Moral standing
E)Emotional value

Question 54

A person's confidence and faith in another person's goodwill is called:

A)Trust
B)Reputation
C)Responsibility
D)Moral standing
E)Emotional value

Question 55

Under the ____________ rule,an ethical decision is the one that best maintains people's fundamental privileges.

A)Justice
B)Moral rights
C)Utilitarian
D)Practical
E)Moral scruples

Question 56

The practical rule states that an ethical decision is one that:

A)Best protects the rights of people affected
B)Produces the greatest good for the greatest number of people
C)Distributes benefits and harms in a fair way
D)Can be communicated with no reluctance
E)Is relevant to financial effectiveness of the organization

Question 57

___________ are often regarded as the most critical stakeholder group.

A)Stockholders
B)Managers
C)Employees
D)Customers
E)Suppliers

Question 58

The ____________ rule is that an ethical decision is one that produces the greatest good for the greatest number of people.

A)Justice
B)Moral Rights
C)Utilitarian
D)Practical
E)Moral Scruples

Question 59

The utilitarian rule states that an ethical decision is a decision that:

A)Best protects the rights of people affected
B)Produces the greatest good for the greatest number of people
C)Distributes benefits and harms in a fair way
D)Can be communicated with no reluctance
E)Increases the financial effectiveness of the organization

Question 60

As the president of Missouri Bank,Carolyn has a right to expect a reward for investing her human capital.Which of the following is NOT normally a reward Carolyn should expect?

A)Stock options
B)Promotional opportunity
C)Salary
D)Benefits
E)Guaranteed bonuses

Question 61

All of the following are examples of managers being socially responsible EXCEPT:

A)Give workers opportunities to enhance their skills and acquire additional education
B)Moving a company's operations abroad for cheaper labor
C)Allow employees to take time off
D)Provide health care and pension benefits for employees
E)Decline to invest in countries that have poor human rights records

Question 62

Unethical behavior:

A)Increases a company's efficiency
B)Increases a company's effectiveness
C)Reduces a company's performance
D)Increases the national standard of living
E)Increases national well-being and prosperity

Question 63

Which of the following is least likely to be a source of individual ethics?

A)Family
B)Friends
C)Church
D)Teachers
E)Supervisors

Question 64

The way a company's managers view their duty to make decisions that promote the welfare of stakeholders and society as a whole is called:

A)Societal ethics
B)Organizational ethics
C)Social responsibility
D)Organizational responsibility
E)Environmental responsibility

Question 65

Which of the approaches to social responsibility is the most socially responsible?

A)Accommodative
B)Proactive
C)Defensive
D)Obstructionist
E)Offensive

Question 66

The standards that govern how members of a profession should conduct themselves are called:

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Governmental ethics

Question 67

Which of the approaches to social responsibility is the least socially responsible?

A)Accommodative
B)Proactive
C)Defensive
D)Obstructionist
E)Obligatory

Question 68

Another name for a company's code of ethics is:

A)Mission
B)Vision
C)Strategy
D)Credo
E)Goals

Question 69

Which of the following is NOT a main determinant of differences in ethics between people,companies,and countries?

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Operational ethics

Question 70

Standards that determine how people view their responsibilities to others and how they should act in situations when their own self-interest is at stake are called:

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Governmental ethics

Question 71

The guiding practices and beliefs through which a particular firm and its managers view their responsibilities to stakeholders are called:

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Governmental ethics

Question 72

A company that expects its managers to behave ethically to the degree that they stay within the law is acting with a(n)_______________ approach.

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

Question 73

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer,they were exhibiting a(n)__________ approach.

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

Question 74

The unethical behavior characteristic of the ______ approach is exemplified when managers at Enron put their personal interests before their stakeholders' well being and above the law.

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

Question 75

When faced with an ethical dilemma as a manager,Joe tries to reflect back on his upbringing to decide between right and wrong.Joe is reflecting on:

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Religious ethics

Question 76

After a lengthy investigation,Larry lost his license to practice law.In all likelihood,Larry probably violated his:

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Governmental ethics

Question 77

The managers of Lehman Brothers,whose bankruptcy helped propel the 2008-2009 financial crisis,used loopholes in to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition.What approach to social responsibility was Lehman Bothers employing?

A)Accommodative
B)Proactive
C)Defensive
D)Obstructionist
E)Obligatory

Question 78

Which of the following is NOT an approach to social responsibility discussed in the text?

A)Accommodative
B)Proactive
C)Defensive
D)Obstructionist
E)Reactive

Question 79

Standards that govern how members of a society should deal with one another in matters involving issues such as fairness,justice,poverty,and individual rights are called:

A)Societal ethics
B)Occupational ethics
C)Individual ethics
D)Organizational ethics
E)Governmental ethics

Question 80

The individual ethics of which stakeholder group are important in shaping the organizational code of ethics?

A)Employees
B)Customers
C)Community
D)Founders
E)Stockholders