Deck 3: Ethics and Corporate Social Responsibility

Question 1

 According to Kazuo Inamori, an employee in the first level of performance would

A) neglect morality to gain economic benefits.
B) achieve results with a challenging spirit and positive attitude.
C) fail to achieve any sustainable results.
D) enjoy successful results without positive efforts.

Answer 1

B

Question 2

 Jake, a corporate accountant, works for a manufacturing firm. During an annual accounts review, he noticed that there were certain discrepancies in the accounts. He determined that top management was involved in manipulation of the accounts and reported this to the federal authorities. In this scenario, Jake is

A) engaged in bribery.
B) revealing trade secrets.
C) engaged in whistle-blowing.
D) engaged in bid-rigging.

Answer 2

C

Question 3

 Whistle-blowers usually report problems with the firm because

A) they believe the firm will lose profits.
B) they believe it is their ethical duty to report the problem.
C) the firm needs to be more socially responsible.
D) they will receive extra compensation from the government.

Answer 3

B

Question 4

 Which of the following best defines whistle-blowing?

A) It is the attempt to influence a bidding process by providing monetary or non-monetary benefits to officials engaged in the process.
B) It is the attempt to gain an unfair advantage by providing monetary benefits to governmental officials.
C) It is the release of trade secrets by a member of an organization to a rival organization engaged in the same business or trade.
D) It is the release of information by a member of an organization that is evidence of illegal or immoral conduct to the company's executives or outside regulatory agencies.

Question 5

 Which of the following best describes distributive justice?

A) It is a subset of justice that deals with treatment of people within a society, an institution, or a state.
B) It is a subset of justice that deals with implementation of rules and regulations in an organization.
C) It is a subset of justice that deals with the distribution of wealth among members of a society.
D) It is a subset of justice claiming that rules should be clearly stated, consistently obeyed, and impartially enforced.

Question 6

 Which of the following is a direct benefit derived from CSR?

A) CSR can improve a company's brand value.
B) CSR is responsible for bringing foreign direct investment.
C) CSR brings better productivity from the workforce.
D) CSR has a direct impact on debenture interest rate.

Question 7

 Jim, a programing expert at CL Corp., creates a new software program. However, before he can reveal his program, he receives an attractive employment offer from a rival company. Jim resigns from CL Corp. and accepts the rival company's offer, and he mentions the new software to his new employer. In this scenario, Jim is

A) engaging in a conflict of interest.
B) revealing a trade secret.
C) competing fairly in the open market.
D) violating employee privacy.

Question 8

 _____ is a subset of justice that claims that rules should be clearly stated, consistently obeyed, and impartially enforced.

A) Distributive justice
B) Procedural justice
C) Retributive justice
D) Conditional justice

Question 9

 Gary has been charged with the task of establishing business relationships in a foreign country where it is customary to lavish decision makers with expensive gifts. Gary is faced with the ethical dilemma of

A) CSR.
B) conflict of interest.
C) bribery.
D) insider trading.

Question 10

 _____ is defined as the ethical philosophy claiming that behaviors are considered moral if they produce the greatest good for the greatest number of people.

A) Consumerism
B) Totalitarianism
C) Utilitarianism
D) Kantianism

Question 11

 When making a decision, Sara prepares a cost-benefit analysis of all possible outcomes and selects the alternative that results in the greatest good for all affected parties. Sara subscribes to which ethical framework?

A) Utilitarianism
B) Kantianism
C) Virtue ethics
D) Distributive justice (Egalitarianism)

Question 12

 When Monni evaluates employees, he considers their results as well as the attitude and process with which the results were obtained. Monni most likely subscribes to which ethical framework?

A) Utilitarianism
B) Kantianism
C) Virtue ethics
D) Distributive justice (Egalitarianism)

Question 13

 _____ is an ethical philosophy claiming that motives are the most important aspect in judging what is right or wrong.

A) Utilitarianism
B) Capitalism
C) Moralism
D) Kantianism

Question 14

 Which of the following best describes morality?

A) It is defined as the tool used to measure the level of social integration present in society.
B) It is the study of ethical values that are perceived in an organization.
C) It is the study of moral standards and their effect on behavior and conduct.
D) It is defined as the standards that people use to judge what is right or wrong, good or evil.

Question 15

 Maynard Inc., a construction company, planned to set up operations in a foreign country. However, due to bureaucracy problems and paperwork delays in the local government offices, the company was unable to begin operations. The company distributed gifts and holiday vouchers to officials present in the local offices in order to speed up the paperwork. In this scenario, Maynard Inc. is engaged in

A) bid-rigging.
B) whistle-blowing.
C) bribery.
D) moral discrimination.

Question 16

 A scientist receives a yearly grant from a pharmaceutical company that funds research on a new cancer drug. After conducting the research, the scientist learns that the new cancer drug is less effective compared to many other cancer drugs in the market. After the scientist shares this information with the company, they encourage him to "reanalyze the data" in order to find different results favorable to the pharmaceutical company. The company also suggests that if different results are not found, it will withdraw all research funding from the scientist. Which of the following is the scientist facing?

A) A conflict of interest
B) A trade secret violation
C) A privacy violation
D) A whistle-blowing allegation

Question 17

 Which of the following is true of virtue ethics?

A) It claims that morality's primary function is to develop virtuous character.
B) It claims that profitability is the fundamental virtue for every organization.
C) It claims that an organization's morality is defined by its members.
D) It claims that a virtuous organization is always a successful one.

Question 18

 Leslie has been hired as an executive to make decisions on behalf of the company and its shareholders. Leslie is now in a(n)

A) fiduciary relationship with the shareholders.
B) ordinary business relationship with the company.
C) CSR relationship with the company and its shareholders.
D) utilitarian relationship with the company and its shareholders.

Question 19

 Someone who has been entrusted to make decisions on behalf of another party is called a

A) mentor.
B) principal.
C) fiduciary.
D) subordinate.

Question 20

 The fact that companies exposed millions of Americans to asbestos while operating within the law provides support for

A) the need for ethics in business.
B) the need for ethics in private life.
C) tax penalties on companies that do not practice CSR.
D) the need for more public relations campaigns.

Question 21

 Milton Friedman believed that a firm's exclusive duty is to

A) maximize its profits within the law.
B) implement CSR practices to be consumer friendly.
C) implement CSR practices to maximize profits.
D) use CSR to develop socialism

Question 22

 When Macy purchased P&G products because he believed the manufacturer to be reputable and socially responsible, it provided an example of

A) utilitarianism.
B) Kantianism.
C) CSR as a competitive advantage.
D) conflict of interest.

Question 23

 Virtue ethics claims that morality's primary function is to develop virtuous character, similar to the way people develop skills such as creativity and conflict management.

Question 24

 The Sarbanes-Oxley Act of 2002 was passed in order to

A) control pollution and protect the environment in the long term.
B) increase taxation levels for companies doing business abroad.
C) eliminate the practice of bribery.
D) control the manipulation of accounts by the top management in firms.

Question 25

 Research supporting Milton Friedman's view on CSR suggests that CSR is detrimental to an organization. Which of the following arguments is most likely to support this theory?

A) CSR is viewed negatively in many societies, and this leads to reduction in sales.
B) CSR reduces the brand value of an organization that leads to erosion of profits.
C) CSR involves extensive legal expenses that are detrimental to profits.
D) CSR leads to a substantial reduction in profits due to rising investment in the long run.

Question 26

 Corporate social responsibility activities that are directly related to business activities so that they can combine social welfare with financial welfare are known as

A) accountable CSR.
B) strategic CSR.
C) inventive CSR.
D) ethical CSR.

Question 27

 In business, members of a partnership are fiduciaries to one another.

Question 28

 CSR is considered strategic when it supports core business activities that contribute to a firm's mission, vision, and strategy.

Question 29

 Explain economic responsibilities of a firm.

Question 30

 Commonly, firms tend to fulfill their legal responsibilities by

A) complying with laws, anticipating future laws, and avoiding civil litigation.
B) investing heavily in CSR and fulfilling ethical responsibilities.
C) creating a productive workforce and maintaining employment standards.
D) striving to improve shareholder value.

Question 31

 _____ responsibilities refer to a business's duty to make a profit and increase shareholder value.

A) Ethical
B) Judicial
C) Economic
D) Social

Question 32

 Define and explain the concept of utilitarianism.

Question 33

 A business's obligation to pursue policies, decisions, and actions that align with the objectives and values of society is known as

A) cultural responsibility.
B) stakeholder responsibility.
C) corporate social responsibility.
D) economic responsibility.

Question 34

 Define the term fiduciary and explain the responsibilities of a fiduciary.

Question 35

 A firm's ethical responsibilities are

A) behaviors enforced on the firm.
B) implemented to meet financial obligations.
C) behaviors the general population expects.
D) defined by the federal government.

Question 36

 Describe the link between a firm's overall performance and corporate social responsibility.

Question 37

 Explain the ethical guidelines a manager should follow while making a decision.

Question 38

 Which of the following is a feature of firms practicing corporate social responsiveness?

A) They stick to a rigid organizational plan, irrespective of the conditions.
B) They keep the needs of stakeholders on the back burner and concentrate on social issues.
C) They seek to influence employee behavior by controlling employee interaction inside the organization.
D) They monitor and assess environmental conditions on a constant basis.

Question 39

 Which of the following is most likely to be a reason why CSR improves a firm's profit margins?

A) CSR activities help attract and retain top-notch employees. 
B) Investment in CSR leads to an increase in stock prices due to increased liquidity.
C) Investment causes the company's suppliers to grant greater trade discounts.
D) CSR increases the investment that a society is likely to make in an organization.

Question 40

 Which of the following is NOT a benefit of CSR? 

A) Qualifying for additional tax deductions
B) Avoiding litigation
C) Attracting talented employees
D) Obtaining lower financing interest rates