Deck 4: Ethics and Corporate Responsibility

Question 1

According to Professor Edward Freeman, which of the following is true of ethics and corporate responsibility?

A) Managers can benefit their organizations only by growing profits.
B) It is not the responsibility of managers to behave ethically when dealing with their stakeholders.
C) Managers can benefit their organizations by growing profits as well as behaving ethically toward stakeholders.
D) Managers must emphasize ethical behavior toward stakeholders at the cost of growing profits.
E) In business, it is a myth that profits and ethical behavior go hand in hand.

Answer 1

C

Question 2

_____ refers to the principles, rules, and values people use in deciding what is right or wrong.

A) Corporate legislation
B) Business responsibility
C) Moral philosophy
D) Sustainability index
E) Ecocentric management

Answer 2

C

Question 3

A company can easily avoid environmental issues since the creation and distribution of wealth generates very few by-products.

Answer 3

False

Question 4

_____ refers to the moral principles and standards that guide the behavior of an individual or group.

A) Prioritization
B) Ethics
C) Corporate legitimacy
D) Theology
E) The legal system

Question 5

Employees, organizations, and communities thrive over the long term when managers apply ethical standards that direct them to act with integrity.

Question 6

Business ______ are the moral principles and standards that guide behavior in the world of business.

A) norms
B) strategies
C) goals
D) ethics
E) politics

Question 7

Milton Friedman contended that a business cannot increase its profits while conforming to society's laws and ethical customs.

Question 8

An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically.

Question 9

Business should look at environmental issues as a no-win situation.

Question 10

_____ is an ethical system, which states that all people should uphold certain values that society needs to function.

A) Egoism
B) Relativism
C) Universalism
D) Ethnocentrism
E) Utilitarianism

Question 11

An) ________ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.

A) ethical standard
B) ethical issue
C) business norm
D) personal right
E) moral right

Question 12

The economic responsibilities of business include satisfying its obligations to investors.

Question 13

Diya uses certain principles, rules, and values such as honesty, compassion, and integrity in her daily life to determine what is right or wrong. Which of the following does she employ when making decisions?

A) moral philosophy
B) moral right
C) business ethics
D) autocracy
E) egoism

Question 14

It is a common perception that business leaders use illegal means to gain competitive advantage or improve their personal positions.

Question 15

Ecocentric management focuses on practices that maximize current economic growth, irrespective of the potential harm to future generations.

Question 16

Two basic ethical ideals underpin the Caux Principles for Business. They are

A) right and wrong.
B) shinpai suna and corporate social responsibility.
C) profits and pride.
D) kyosei and human dignity.
E) self-fulfillment and happiness.

Question 17

Haseen, an employee in a company, is facing a situation in which she has to choose between going along with her colleagues and filling out inaccurate feedback against a new employee or informing her manager about the malpractice. In this context, Haseen is faced with an)

A) moral rights issue.
B) ethical issue.
C) diversity issue.
D) corporate social responsibility.
E) human rights violation.

Question 18

Unethical behavior happens only in a business environment.

Question 19

Tia had differences of opinion with her boss, who discriminated against employees based on their ethnicity and social background. In one instance, her boss falsely accused a member of a minority race of fraud. Tia took this up to the top management as she believed all members of the organization should uphold some values for it to function well. Tia was following the ________ ethical system.

A) egoism
B) ethnocentrism
C) communism
D) relativism
E) universalism

Question 20

Life cycle analysis LCA) quantifies the total use of resources and the releases into the air, water, and land.

Question 21

According to the Caux Principles for Business, the ethical ideal of kyosei means

A) deciding what is right by using a set of rules and regulations.
B) being aware of moral situations and acting accordingly.
C) accepting the moral constraints of living in a society.
D) living and working together for the common good.
E) recognizing the intrinsic worth of every human being.

Question 22

In the context of universalism, kyosei and human dignity are the two basic ideals underpinning the _____ Principles for Business.

A) Sachs
B) Freeman
C) Smith & Nephew
D) Caux
E) Madoff

Question 23

According to Kohlberg's model of cognitive moral development, people in the _____ stage make decisions based on concrete rewards and punishments and immediate self-interest.

A) conventional
B) principled
C) preconventional
D) utilitarian
E) universal

Question 24

According to Kohlberg's model of cognitive moral development, people in the _____ stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.

A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

Question 25

A tenet of ______ is that all people should uphold certain values, such as honesty and other values that society needs to function.

A) egoism
B) universalism
C) utilitarianism
D) relativism
E) virtue

Question 26

When faced with an ethical issue in business, people must rely on

A) the accounting department
B) laws enacted by the government
C) religious beliefs
D) gut feelings
E) moral philosophy

Question 27

_____ is the ethical system wherein one seeks the greatest good for the greatest number of people.

A) Egoism
B) Virtue
C) Relativism
D) Utilitarianism
E) Morality

Question 28

A tenet of ________ is that ethical behavior is based on the opinions and behaviors of associated people.

A) egoism
B) utilitarianism
C) relativism
D) virtue
E) morality

Question 29

According to the ethical system of utilitarianism, which of the following is true?

A) Some values must always be upheld, regardless of the consequences.
B) Societal rules or customs should be used to mold values.
C) Society will be enhanced if we all take care of ourselves and do not harm others.
D) Individuals might choose between conflicting values by tallying the final results of the various acts.
E) Seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

Question 30

Which of the following is an example of a value?

A) competency
B) legality
C) rational ability
D) integrity
E) efficiency

Question 31

The notion of _____, an ethical system, is similar to Adam Smith's concept of the invisible hand in business.

A) utilitarianism
B) universalism
C) egoism
D) relativism
E) humanitarianism

Question 32

Nicki usually makes decisions on the basis of what her friends would expect her to do. Which ethical system do Nicki's actions reflect the most?

A) egoism
B) utilitarianism
C) relativism
D) universalism
E) humanitarianism

Question 33

According to Kohlberg's model of cognitive moral development, people in the conventional stage conform to the

A) expectations of ethical behavior held by groups or institutions.
B) personal self-interests of groups of people.
C) rules of government that lead people.
D) self-chosen ethical principles regardless of others.
E) decisions based on immediate self.

Question 34

_____, an ethical system, defines ethical behavior according to how others behave.

A) Totalitarianism
B) Relativism
C) Universalism
D) Utilitarianism
E) Egoism

Question 35

Which ethical system acknowledges the existence of different ethical viewpoints?

A) relativism
B) utilitarianism
C) egoism
D) universalism
E) totalitarianism

Question 36

_____, an ethical system, defines ethical behavior based on the opinions and behaviors of associated people.

A) Egoism
B) Utilitarianism
C) Relativism
D) Universalism
E) Totalitarianism

Question 37

In Kohlberg's model of cognitive moral development, which category follows the conventional stage?

A) the compliant stage
B) the principled stage
C) the preconventional stage
D) the utilitarian stage
E) the egoistic stage

Question 38

Which of the following are considered unconscious biases?

A) Managers hire people who are unlike them, since opposites attract.
B) Managers think they are immune to conflicts of interest.
C) Managers take less credit than they deserve.
D) Managers take blame themselves instead of blaming others.
E) Managers act only in an ethical manner.

Question 39

In the context of ethical systems, which of the following is true of virtue ethics?

A) It suggests that what is moral comes from what a mature person with good "moral character" would deem right.
B) It bases ethical behavior on the opinions and behaviors of relevant other people and focuses on what peers think is right.
C) It states that rights and wrongs cannot be decided by a few good people alone.
D) It implies that individuals have the right to decide what is good for themselves.
E) It holds that individual self-interest is the actual motive of all conscious action.

Question 40

According to _____, an ethical system, individual self-interest is the actual motive of all conscious action.

A) egoism
B) universalism
C) relativism
D) utilitarianism
E) humanitarianism

Question 41

In the context of corporate ethics programs, which of the following is a function of ethics committees?

A) They develop policies, evaluate actions, and investigate violations.
B) They resort to punitive measures to deal with all ethical issues.
C) They take disciplinary action against whistleblowers.
D) They work to cover the unethical acts committed by the organization.
E) They encourage eavesdropping as a means of gathering information about employees.

Question 42

In the context of business ethics, which of the following statements regarding ethics codes is true?

A) The Sarbanes-Oxley Act requires all private companies to disclose their financial statements.
B) The statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show.
C) Ethical codes focus exclusively on employee conduct and avoid subjects such as the environment, technology, and political activity.
D) The code of ethics is drawn up by an organization's administrative department.
E) Executives pay most attention to their company's code of ethics when their senior managers instruct them to do so.

Question 43

The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.

A) Securities Exchange
B) Glass-Steagall
C) Commodity Futures Modernization
D) Gramm-Leach-Bliley
E) Sarbanes-Oxley

Question 44

Chang prefers gymnastics to music. However, he agrees to attend music lessons because his parents want him to become a musician. According to Kohlberg's model of cognitive moral development, Chang resides in the _____ stage.

A) preconventional
B) universal
C) conventional
D) principled
E) utilitarian

Question 45

Jade, a scientist working in the research department of Corals Cosmetics, is asked to not report the ill-effects of using a new product that Corals has decided to launch. Jade's boss offers a hike and a permanent job in exchange for skipping a few details in the report. Jade refuses to do this and asks him to withhold the product from entering the market. According to Kohlberg's model of cognitive moral development, Jade resides in the _____ stage.

A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

Question 46

The primary focus of compliance-based ethics programs is on

A) creating awareness about ethical issues.
B) giving tools to make ethical decisions.
C) detecting and punishing legal violations.
D) increasing individual ethical responsibility.
E) training employees on financially viable methods.

Question 47

Amelie conforms to the norms established by her church and ensures that her behavior always meets the expectations set forth by her parents and the church. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.

A) utilitarian
B) principled
C) preconventional
D) conventional
E) postconventional

Question 48

A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to

A) develop a compliant workforce in the organization.
B) establish an ethnocentric work environment in the organization.
C) increase punitive actions against wrongdoers in the organization.
D) stay away from ethical dilemmas in the organization.
E) create an ethical climate in the organization.

Question 49

In the context of business ethics, which of the following is true of an ethical leader?

A) An ethical leader lets ethics be managed by benign neglect.
B) An ethical leader has a strong personal character.
C) An ethical leader should solely focus on being a moral manager.
D) An ethical leader is quick to take credit for the accomplishments of his subordinates.
E) An ethical leader places personal interest before the common good of the organization.

Question 50

Which of the following is true of unethical corporate behavior?

A) Unethical corporate behavior is the sole responsibility of unethical individuals.
B) Managers must adhere to firm standards in different cultural contexts rather than decide when relativism is appropriate.
C) Business ethics are shaped exclusively by laws and by individual development and virtue.
D) Companies with international activities find it easier to maintain a positive ethical climate.
E) Unethical corporate behavior reveals a company culture that is ethically lax.

Question 51

Alia, a graphic artist at an advertising firm, realizes that the head designer, Ryan, has been copying designs from the Internet and passing them off as his own. Alia informs the marketing head about this, which leads to Ryan getting fired. However, after this event, Alia is ostracized by her co-workers. This indicates that the organization has a poor

A) strategic objective.
B) span of control.
C) ethical climate.
D) distribution policy.
E) administrative framework.

Question 52

_____ ethics programs are designed by corporate counsel to prevent legal violations.

A) Integrity-based
B) Compliance-based
C) Competency-based
D) Awareness-based
E) Responsibility-based

Question 53

To avoid fines and criminal prosecution, it is a common perception that business leaders use

A) accurate accounting.
B) middle managers as sign off for personnel.
C) independent board of directors.
D) illegal means to gain competitive advantage.
E) off putting personnel policies.

Question 54

Nate, a teenager, helps his grandmother by bringing in her weekly supplies and taking out the garbage, only if he receives a weekly allowance from his parents. According to Kohlberg's model of cognitive development, he resides in the _____ stage.

A) conventional
B) principled
C) preconventional
D) postconventional
E) universal

Question 55

The _____ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

A) distribution policy
B) ethical climate
C) strategic objective
D) legal responsibility
E) span of control

Question 56

CEO pay packages, wages, antibrand attitudes, and religion at work are some of the _____ that challenge American managers and employees today.

A) personal issues
B) ethical dilemmas
C) market issues
D) cognitive conflicts
E) business malpractices

Question 57

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called an) _________ ethics program.

A) integrity-based
B) compliance-based
C) rule-based
D) law-based
E) conformity-based

Question 58

Which of the following may prevent the creation of a business climate conducive to unethical behavior?

A) excessive emphasis on short-term revenues
B) failure to establish a written code of ethics
C) a desire for "quick fix" solutions to ethical problems
D) consideration of ethics solely as a legal issue or a public relations tool
E) willingness to take an ethical stand that may impose financial costs

Question 59

The ________ was passed by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

A) Freeman-Madoff Act
B) Free Trade Act
C) Caux Principles Act
D) Glass-Steagall Act
E) Sarbanes-Oxley Act

Question 60

Which of the following is true of compliance-based corporate ethics programs?

A) They are designed to instill in people a personal responsibility for ethical behavior.
B) They increase surveillance and controls on people and impose punishments on wrongdoers.
C) They go beyond the mere avoidance of illegality.
D) They help companies and people govern themselves through a set of guiding principles.
E) They are not concerned with the legal repercussions of unethical behavior.

Question 61

John Rawls, a philosopher, maintained that only a person unaware of his or her own identity can make a truly ethical decision. This thought experiment is based on

A) the "sunshine" ethical framework.
B) the concept of a transcendent education.
C) the veil of ignorance.
D) the concept of "strategic philosophy."
E) the "light of day" principle.

Question 62

In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking, and behavior when

A) every employee has signed the code of ethics.
B) top management has a personal commitment to responsible ethical behavior.
C) employees see top managers go unpunished for their wrongdoings.
D) managers use punishment to motivate employees to "be good."
E) managers use humiliation and bullying to prevent bad behavior.

Question 63

Nina, a manager, is considering reducing the workforce to cut down on costs. She realizes that this decision will have a huge impact on her employees. In the context of making an ethical decision, this stage is known as

A) moral certainty.
B) moral ability.
C) moral awareness.
D) moral judgment.
E) moral characterization.

Question 64

A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Since the company followed an) _____ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people.

A) competency-based
B) conformity-based
C) rule-based
D) integrity-based
E) compliance-based

Question 65

Which of the following is true of integrity-based ethics programs in business organizations?

A) They are designed by corporate counsel to prevent, detect, and punish legal violations.
B) They increase surveillance and controls on people and impose punishments on wrongdoers.
C) Companies and people govern themselves through a set of guiding principles that they embrace.
D) Program elements include establishing and communicating legal standards and procedures.
E) They include assigning high-level managers to ensure compliance among employees.

Question 66

Some organizations have platforms that allow employees to provide anonymous feedback about the work and behavior of colleagues and seniors. What is the primary purpose of such methods?

A) environmental preservation
B) protection of whistleblowers
C) punitive action against sexual harassers
D) protection of human rights
E) increase in workforce diversity

Question 67

In the context of the business costs of ethical failures, Level 1 costs that are less damaging and get more executive attention are the costs of

A) government fines and penalties.
B) remedial education.
C) corrective actions.
D) loss of reputation.
E) employee turnover and replacement.

Question 68

Teal Inc., a manufacturer of designer journals and notebooks, switched to using recycled paper to manufacture its products. It also changed the design such that the book covers and spiral cords used as spines were not made out of plastic. The changes made by Teal Inc., are an example of

A) philanthropic responsibility.
B) legal responsibility.
C) economic responsibility.
D) corporate social responsibility.
E) shareholder responsibility.

Question 69

A supervisor of a retail outlet is facing an ethical dilemma. She uses the formal process of ethical decision making to resolve the issue. Which of the following steps will she begin with?

A) defining the complete moral problem
B) determining the legal requirements
C) understanding all the moral standards
D) proposing a convincing moral solution
E) evaluating the success of the solution

Question 70

In the context of corporate social responsibility, _____ responsibilities are to obey local, state, federal, and relevant international laws.

A) economic
B) legal
C) moral
D) philanthropic
E) ethical

Question 71

In the context of the business costs of ethical failures, which of the following costs is incurred at Level 3?

A) employee cynicism cost
B) administrative and audit cost
C) cost of remedial education
D) cost of corrective actions
E) cost of government oversight

Question 72

Behaving ethically requires not just moral awareness and moral judgment but also moral character. When it is very hard to do the right thing, the quality that is required the most is

A) ambiguity.
B) compliance.
C) conformity.
D) courage.
E) deference.

Question 73

An) _____ ethics program is designed to instill in people a personal responsibility for ethical behavior.

A) integrity-based
B) competency-based
C) legality-based
D) efficiency-based
E) results-based

Question 74

In the context of making ethical decisions, the strength and persistence to act in accordance with one's ethics despite the challenges is known as

A) moral certainty.
B) moral awareness.
C) moral judgment.
D) moral character.
E) moral actionability.

Question 75

Moral awareness begins with

A) the strength to act.
B) considering whether a decision has ramifications.
C) personal self-interest.
D) self-chosen ethical principles.
E) knowing what actions are morally defensible.

Question 76

Using online platforms means all of the following expect

A) e-mail.
B) drop boxes.
C) telephone hotlines.
D) third-party organizations.
E) web-based tools

Question 77

What is the most important purpose of an ethical decision-making process in terms of recognizing moral impacts?

A) determining the economic outcomes
B) considering the legal requirements
C) evaluating the moral duties
D) determining the strategic pros and cons
E) determining the potential media coverage

Question 78

In the context of making ethical decisions, knowing what actions are morally defensible is referred to as

A) moral awareness.
B) moral judgment.
C) moral character.
D) moral right.
E) moral characteristic.

Question 79

Corporate social responsibility refers to

A) taking an active role in training employees to be productive.
B) the obligation toward society assumed by businesses.
C) just following the laws that govern the industry in which a company operates.
D) encouraging cost reduction to increase return to investors.
E) maximizing shareholder wealth.

Question 80

The _____ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

A) economic
B) legal
C) ethical
D) political
E) philanthropic