Deck 5: Managing Responsibly and Ethically

Question 1

In the socio-economic view of social responsibility, management's responsibility includes protecting and improving society's welfare.

Answer 1

True

Question 2

A company's shared values have little effect on managerial decisions and actions.

Answer 2

False

Question 3

Values-based management is an approach to managing by establishing and upholding an organization's shared values.

Answer 3

True

Question 4

Socially responsible businesses tend to have weaker long-term economic performance.

Question 5

The stakeholder approach to going green is a good illustration of social obligation because management protects stockholders' interests by following the basic legal requirements to protect the environment.

Question 6

The socio-economic view of social responsibility says that management is not responsible for making profits.

Question 7

Both social responsiveness and social responsibility go beyond merely meeting a firm's basic economic and legal requirements.

Question 8

According to the classical view of social responsibility, management's only social responsibility is to maximize profits.

Question 9

Ethics refers to the rules and principles that define right and wrong behaviour.

Question 10

The most outspoken advocate of the classical view of social responsibility is Milton Friedman.

Question 11

The activist approach to going green is when an organization looks for ways to respect and preserve the earth and its natural resources.

Question 12

Though the outcomes are not perfectly measured, the majority of research studies show a positive relationship between corporate social involvement and economic performance.

Question 13

An organization's shared values can help shape employee behaviour and build team spirit.

Question 14

An organization is said to adopt the market approach to going green when it responds to the environmental demands made by its stakeholders.

Question 15

A firm that follows the social obligation approach engages in social actions in response to some popular social need.

Question 16

At stage 1 of the progression of an organization's social responsibility, managers focus on human resource concerns.

Question 17

The classical view is best represented at stage 4 of the progression of an organization's social responsibility.

Question 18

When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive.

Question 19

Highly moral individuals are unlikely to become corrupted in organizations that permit unethical practices.

Question 20

In stage 2 of corporate social responsibility, managers expand their responsibilities to employees.

Question 21

At the principled level of moral development, an individual values the rights of others and upholds absolute values and rights regardless of the majority's opinion.

Question 22

The classical view of social responsibility holds that management's only social responsibility is to maximize __________.

A) social welfare
B) product quality
C) efficiency
D) employee compensation
E) profits

Question 23

In defining ethical behaviour, what managers say is far more important than what they do.

Question 24

Managers play an especially important role in business ethics because they set the tone of the culture and are role models for other managers and employees.

Question 25

Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists.

Question 26

Most adults are at the second stage of moral development: following rules only when doing so is in their best interest.

Question 27

Organizational culture that is high in conflict tolerance is most likely to encourage high ethical standards.

Question 28

The more intense an ethical issue is, the less we should expect employees to behave ethically.

Question 29

A leading proponent of the classical view argues that any time managers decide to spend their organization's resources for "social good" they are __________.

A) contributing social benefits in the name of goodwill
B) complying with government regulations
C) helping to make society a better place for everyone to live
D) adding to the costs of doing business
E) promoting a positive corporate image

Question 30

Ego strength is a personality attribute that reflects the degree to which people believe they control their own fate.

Question 31

In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general.

Question 32

The most outspoken advocate of the classical view of social responsibility is economist and Nobel laureate __________.

A) John Keynes
B) Milton Friedman
C) Alan Greenspan
D) Robert Reich
E) John Galbraith

Question 33

When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results.

Question 34

Which of the following is associated with the classical view of social responsibility?

A) economist Robert Reich
B) concern for social welfare
C) financial return for stockholders
D) voluntary activities
E) responsibility toward all stakeholders

Question 35

According to the model of the evolution of an organization's social responsibility, stage 2 adds responsibility to ________.

A) stockholders
B) employees
C) safe products
D) fair prices
E) society as a whole

Question 36

People with an internal locus of control believe that what happens to them is due to luck or chance.

Question 37

In determining the intensity of an ethical issue, greatness of harm refers to the number of people who will be harmed by a particular action.

Question 38

The socio-economic view is that management's social responsibility goes beyond making profits to include __________.

A) maximizing efficiency
B) protecting and improving society's welfare
C) protecting and improving the welfare of employees
D) maximizing employment opportunities
E) obeying the law

Question 39

At the conventional level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others.

Question 40

Whistle-blowers raise ethical concerns to others inside and outside the organization.

Question 41

A firm that engages in social actions to meet its basic legal and economic responsibilities is taking a social ________ approach.

A) responsiveness
B) reaction
C) responsibility
D) obstruction
E) obligation

Question 42

According to the model of the evolution of an organization's social responsibility, stage 3 is noted by an added interest in ________.

A) stockholders
B) employees
C) owners
D) customers and suppliers
E) society as a whole

Question 43

The social __________ approach to social responsibility is most consistent with the classical view.

A) responsiveness
B) reaction
C) responsibility
D) obstruction
E) obligation

Question 44

Joe Black, owner of Honest Joe's Car Wash, pays his workers the minimum wage and benefits stipulated in the provincial Employment Standards Act. Joe is following a social ________ approach.

A) obligation
B) obstruction
C) responsiveness
D) reaction
E) responsibility

Question 45

The recognition of the close link between an organization's decisions and activities and its impact on the natural environment is referred to as ________.

A) corporate social responsibility
B) social responsiveness
C) shared corporate values
D) sustainable management
E) environmental activism

Question 46

Under the concept of social obligation, the organization does what is required by the ________.

A) society
B) stakeholders
C) environment
D) law
E) employees

Question 47

BTX Corporation provides daycare facilities for its employees and only uses recycled paper in its packaging. BTX is following a social ________ approach.

A) obligation
B) obstruction
C) responsiveness
D) reaction
E) responsibility

Question 48

Which of the following statements about social responsiveness is true?

A) It adds an ethical imperative beyond social responsibility.
B) It is more pragmatic than social responsibility.
C) Its decision framework is more long term than social responsibility.
D) Its major emphasis is a sense of obligation to society.
E) Its major focus is on ''ends'' rather than ''means.''

Question 49

A firm that engages in social actions in reaction to some popular social need is taking a social ________ approach.

A) responsiveness
B) reaction
C) responsibility
D) obstruction
E) obligation

Question 50

The most meaningful conclusion that one can draw from the research on social responsibility and economic performance is that __________.

A) socially responsible behaviour has no impact on a firm's economic performance
B) good economic performance leads to socially responsible behaviour by organizations
C) good economic performance is more important than socially responsible behaviour in the long term
D) there is considerable evidence that a company's social actions lower its long-term economic performance
E) there is a positive relationship between social involvement and economic performance.

Question 51

Social obligation is the obligation of a business to meet its ________.

A) social and market responsibilities
B) economic and social responsibilities
C) technological and economic responsibilities
D) economic and legal responsibilities
E) legal and social responsibilities

Question 52

According to the model of the evolution of an organization's social responsibility, stage 4 is noted by an added interest in ________.

A) stockholders
B) employees
C) owners
D) customers and suppliers
E) society as a whole

Question 53

A majority of studies have found a(n) __________ relationship between social involvement and economic performance.

A) negative
B) positive
C) no
D) indirect
E) nonlinear

Question 54

In Canada, a company that meets federal pollution control standards and does not discriminate in its hiring and promotion practices is meeting its ________.

A) social responsiveness because it is reacting to social trends
B) social obligation and more because it is trying to be a good corporate citizen
C) social obligation and nothing more because laws mandate these actions
D) corporate social responsibility because it is engaging in ethical business activities
E) social responsiveness because there is a clear ethical imperative

Question 55

A Canadian business that provides onsite childcare facilities for employees is ________.

A) being socially responsive
B) fulfilling its social obligations
C) adopting social screening
D) practising green management
E) adopting the classical view of social responsibility

Question 56

Which of the following examples reflects a socially responsible action by an organization?

A) Ford Motor Company became the first automaker to endorse a federal ban on sending text messages while driving.
B) Apple has eliminated lead-lined glass monitors from its product line and pioneered reduced-sized packaging that leverages recyclable materials.
C) Fed Ex provided the Federal Emergency Management Agency (FEMA) with a radio antenna to set up communications in the immediate aftermath of Hurricane Katrina.
D) UPS has a company-wide policy that urges employees to volunteer during natural disasters and other crises.
E) Mountain Equipment Coop accepts returns of goods for up to one year.

Question 57

When a firm advertises that it only uses recycled paper products it is ________.

A) meeting its social obligation
B) meeting its social screening requirements
C) being socially responsive
D) adopting green management
E) meeting its stakeholder requirements

Question 58

________ is defined as a business firm's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.

A) Social obligation
B) Social responsibility
C) Social screening
D) Values-based management
E) Social responsiveness

Question 59

Advocates of social responsiveness believe it is more ________ than social responsibility.

A) philosophical
B) ethical
C) long term
D) intangible
E) action-oriented

Question 60

________ is defined as a business firm's obligation, beyond what is required by its legal and economic obligations, to do the right things and act in ways that are good for society.

A) Social obligation
B) Corporate social responsibility
C) Social responsiveness
D) Values-based management
E) Social reaction

Question 61

The ________ approach toward environmental issues exhibits the highest degree of environmental sensitivity and is a good illustration of corporate social responsibility.

A) legal
B) stakeholder
C) global
D) market
E) activist

Question 62

Vancouver-based Cummins Westport has earned a reputation as a ''dark green'' company that produces the world's widest range of low-emissions engines for commercial transport applications. Cummins Westport illustrates the ________ approach toward environmental issues.

A) legal
B) stakeholder
C) industrial
D) market
E) activist

Question 63

__________ is an approach to managing in which managers establish and uphold what an organization stands for and believes in.

A) Cause-related marketing
B) Managerial ethics
C) Ethical marketing
D) Sustainable management
E) Values-based management

Question 64

When DuPont developed a new type of herbicide to help its farmer customers reduce their use of chemicals, they used the ________ approach toward environmental issues.

A) legal
B) stakeholder
C) industrial
D) market
E) activist

Question 65

Which of the following is a basic definition of ethics?

A) Guidelines for moral behaviour.
B) Rules for acknowledging the spirit of the law.
C) Rules or principles that define right and wrong behaviour.
D) Principles for legal and moral development.
E) Personal convictions about good and bad.

Question 66

The ________ approach to environmental issues is when organizations respond to environmental preferences of their customers.

A) legal
B) market
C) global
D) stakeholder
E) activist

Question 67

Which of the following describes the highest stage of moral development?

A) Following self-chosen ethical principles even if they violate the law.
B) Following rules only when it is in your immediate interest.
C) Sticking to rules to avoid physical punishment.
D) Maintaining conventional order by fulfilling obligations to which you have agreed.
E) Upholding absolute values and rights regardless of the majority's opinion.

Question 68

At the ________ level of moral development, a person's choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favours.

A) unconventional
B) preconventional
C) conventional
D) principled
E) conceptual

Question 69

Natural resource depletion, global warming, pollution, and toxic wastes are examples of ________.

A) social problems
B) environmental problems
C) social responsiveness
D) competitive strategies
E) corporate mismanagement

Question 70

Because shared values influence the way work is done, employees can become more enthusiastic about working together to support the values they believe in. This illustrates which purpose of shared organizational values?

A) Guide managers' decisions and actions.
B) Control employee behaviour.
C) Influence marketing efforts.
D) Build team spirit.
E) Create internal harmony.

Question 71

An organization's __________ can help guide managers' decisions and actions.

A) shared values
B) sustainability policies
C) marketing efforts
D) social obligation
E) competitive environment

Question 72

The values statement of Mosaic Corporation emphasizes the importance of workplace diversity. As a result, managers always select employees with diverse characteristics when organizing work teams. This illustrates which purpose of shared organizational values?

A) Guide managers' decisions and actions.
B) Shape employee behaviour.
C) Influence marketing efforts.
D) Build team spirit.
E) Create internal harmony.

Question 73

Most adults are at the __________ level of moral development.

A) unconventional
B) preconventional
C) conventional
D) principled
E) conceptual

Question 74

Ethical reasoning at the __________ level of moral development indicates that moral values reside in maintaining expected standards and living up to the expectations of others.

A) unconventional
B) preconventional
C) conventional
D) principled
E) conceptual

Question 75

The values statement of Friendly Airlines emphasizes the importance of serving customers in a friendly, helpful, and caring manner. These values are reflected in its advertising slogan, "You're flying with friends at Friendly Airlines." This illustrates which purpose of shared organizational values?

A) Guide managers' decisions and actions.
B) Shape employee behaviour.
C) Influence marketing efforts.
D) Build team spirit.
E) Create internal harmony.

Question 76

Which of the following statements is true concerning organizations whose structures and cultures permit unethical behaviour?

A) Only individuals with low moral standards will be corrupted.
B) Only managers will be corrupted.
C) Eventually everyone will be corrupted.
D) Only those who are corrupt to begin with will behave unethically.
E) Even highly moral individuals may be corrupted.

Question 77

Which of the following describes the lowest stage of moral development?

A) Following self-chosen ethical principles even if they violate the law.
B) Following rules only when it is in your immediate interest.
C) Sticking to rules to avoid physical punishment.
D) Maintaining conventional order by fulfilling obligations to which you have agreed.
E) Upholding values and rights regardless of the majority's opinion.

Question 78

The ________ approach toward environmental issues is a good illustration of social obligation.

A) legal
B) stakeholder
C) global
D) market
E) activist

Question 79

The values statement of Reliable Airlines emphasizes the importance of customer safety. After a difficult year of losses, the company president asked managers to reduce costs in marketing, payroll, and all other areas except maintenance, stating, "We can tighten our belts in every other area, but we will never scrimp on safety. In this business, if you are not safe, you don't have an airline." This illustrates which purpose of shared organizational values?

A) Guide managers' decisions and actions.
B) Shape employee behaviour.
C) Influence marketing efforts.
D) Build team spirit.
E) Create internal harmony.

Question 80

The ________ approach to environmental issues is when an organization chooses to respond to multiple demands made by groups in its internal and external environments.

A) legal
B) market
C) stakeholder
D) global
E) activist