Deck 5: Ethics, corporate Responsibility, and Sustainability

Question 1

What are business ethics?

A)the principles of conduct,such as caring,being honest,pursuing excellence,and showing loyalty
B)the moral principles and standards that guide behavior in the world of business
C)the system of rules that governs the ordering of economic value
D)a situation,problem,or opportunity in which a political leader must choose among several actions
E)the principles,rules,and values that people use in deciding what is right or wrong for themselves

Answer 1

B

Question 2

When Pam must decide whether something is right or wrong,she considers the writings of the ancient teachers Confucius and Marcus Aurelius,whose works she has read many times.These books form the basis of Pam's

A)moral philosophy.
B)value system.
C)ethical situation.
D)relativism.
E)egoism.

Answer 2

A

Question 3

Which philosophy would be the most likely to emphasize that there are different ethics in different cultures?

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

Answer 3

C

Question 4

The ethical system known as egoism is similar to Adam Smith's concept of the invisible hand in business.

Question 5

Integrity-based ethics programs are primarily concerned with the avoidance of illegality.

Question 6

Which ethical system states that the greatest good for the greatest number should be the overriding concern of decision makers?

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

Question 7

According to virtue ethics,moral individuals can transcend society's rules by applying personal virtues.

Question 8

Esosa believes that ethical behavior is anything that provides the maximum benefit for herself.What ethical system does Esosa subscribe to?

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

Question 9

A good process for ethical decision making begins with considering the legal requirements.

Question 10

Individuals can be ethical leaders if they have a strong moral character,regardless of which issues attract their attention.

Question 11

Once a year at the annual employee meeting,the president of Federated Finance reminds all his employees of his belief that there are certain values everyone can agree on,such as honesty,fairness,and respect for life.Which ethical system does the president believe in?

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

Question 12

A situation,problem,or opportunity in which an individual is obligated to choose among several actions that must be evaluated as morally right or wrong is a(n)________ issue.

A)moral
B)legal
C)value
D)relative
E)ethical

Question 13

Values are the rules that govern people's behavior and identify the "goods" that are worth seeking.

Question 14

Sustainable growth refers to economic growth and development that meet the organization's present needs without harming the ability of future generations to meet their needs.

Question 15

Profit maximization and corporate social responsibility necessarily lead to opposing corporate policies.

Question 16

Most people have unconscious biases that favor themselves and their own group.

Question 17

Bill,the manager of Just Right Gelato,acts with integrity and honesty because he believes in a system of rules that governs the ordering of values.The system of rules that directs Bill's behavior is known as

A)compulsion.
B)philosophy.
C)law.
D)ethics.
E)justice.

Question 18

Vijay works for a food manufacturer that plans to move to Mexico to take advantage of the cheaper labor.The CEO rationalizes this decision by claiming that many other companies are making similar moves.Vijay counters that the number of people who will be harmed by losing their jobs will be more than the number of people who will be helped by the relocation.Which of the following ethical systems does this debate contrast?

A)relativism vs.utilitarianism
B)universalism vs.utilitarianism
C)egoism vs.relativism
D)egoism vs.universalism
E)egoism vs.utilitarianism

Question 19

Which of the following was developed by a group of international executives,including business leaders from Japan,Europe,and the United States?

A)Sarbanes-Oxley Act
B)Caux Principles
C)Peter Principle
D)Kohlberg's Model
E)Corporate Social Responsibility

Question 20

A transcendent education involves balancing self-interest with responsibility to others.

Question 21

Moral awareness involves

A)knowing which actions are required by law.
B)knowing which actions are morally defensible.
C)realizing that an issue has ethical implications.
D)having the strength to act in accordance with your ethics.
E)adopting the values of the most relevant moral leaders.

Question 22

Acme Products uses wind power,adheres to global warming standards,designs packages that minimize repackaging,keeps chemicals within the production cycle,and uses large amounts of tin from Peru.Which of the following prevents Acme Products from being a cradle-to-cradle operation?

A)excessive creation of waste
B)the use of an open-loop industrial cycle
C)the use of nonrenewable energy
D)the use of nonrenewable resources
E)excessive creation of pollution

Question 23

A whistleblower is a person who

A)tells others that wrongdoing has occurred.
B)encourages others to commit wrongdoing.
C)serves as legal counsel for an organization.
D)serves as the chief ethical officer of an organization.
E)signs off on the financial results of an organization.

Question 24

How has the view of the business community toward environmental issues changed in the twenty-first century?

A)Business now sees such issues as a no-win situation.
B)Business now sees such issues as a burden and a cost.
C)Business now sees such issues as a business opportunity.
D)Business now sees such issues as yesterday's problem.
E)Business now sees such issues as overblown hype.

Question 25

During a high-level meeting of Jerry's Toys executives,you and several other executives offer solutions to the recent decline in sales.Considering the levels of global corporate social responsibility,you decide you want to use a philanthropic solution.Which of the following actions would you take?

A)Suggest reducing prices to create demand.
B)Appeal to environmentalists by using biodegradable resources.
C)Give free toys to hospitalized children to improve public image.
D)Create a consumer club that rewards frequent buyers.
E)Create an advertising campaign that exaggerates your products' green qualities.

Question 26

Which of the following is one of the five higher goals of a transcendent education?

A)self-awareness
B)independence
C)eloquence
D)tolerance
E)civil aspiration

Question 27

According to Milton Friedman,what is the social responsibility of business?

A)to increase profits
B)to redistribute wealth
C)to preserve the environment
D)to spread capitalism
E)to improve the quality of life

Question 28

You learn about an earthquake that hit a country,causing thousands of deaths and leaving thousands of other people without homes.Which of the following responses combines the higher goals of transcendent education called empathy and generativity?

A)You convince your employer to donate food,and you write a letter to your U.S.senator criticizing the lack of government aid for the disaster victims.
B)You write a letter to your U.S.senator criticizing the lack of government aid for the disaster victims,and you feel sympathy for the pain that disaster victims are enduring.
C)You write a letter to your U.S.senator criticizing the lack of government aid for the disaster victims,and you see aid to the disaster victims as a community effort.
D)You see aid to the disaster victims as a community effort,and you convince your employer to donate food.
E)You feel sympathy for the pain that disaster victims are enduring,and you give money generously to a disaster relief fund.

Question 29

The president of Better Mornings Breakfast Foods Inc.has asked you to improve the public image of the company.You decide to do so based on philanthropic responsibility.Considering this,you are most likely to propose that the company

A)review its legal responsibilities in the international market to comply with the requirements of global stakeholders.
B)adopt a new packaging process that will reduce workers and increase efficiency as well as profits.
C)comply completely with federal law concerning the safety standards for workers.
D)use whole grains in its cereal in response to requests by customers.
E)donate large quantities of its products to support a free breakfast program at a school in a disadvantaged neighborhood.

Question 30

What do people in the preconventional stage of Kohlberg's model of cognitive moral development base their decisions on?

A)expectations held by groups or institutions
B)self-chosen ethical principles
C)laws and regulations
D)rewards and punishment
E)religious or philosophical teachings

Question 31

________ in business is considered compatible with the natural ecosystems that generate and preserve life.

A)Relativism
B)Sustainability
C)Greenwashing
D)Development
E)Philanthropy

Question 32

Which of the following terms refers to misleading marketing claims about the environmentally friendly nature of a product?

A)carbon footprint
B)sustainability
C)greenwashing
D)ecomanagement
E)whistleblowing

Question 33

Which of the following statements about compliance-based ethics programs are true?

A)The programs are developed by moral thinkers.
B)The programs promote moral excellence in an organization.
C)The programs tolerate some illegal behavior.
D)The programs emphasize personal responsibility for ethical behavior.
E)The programs do not create a moral commitment to ethical conduct.

Question 34

Which of the following has been identified as a factor that contributes to unethical behavior?

A)having a written code of ethics
B)believing that ethical problems have complex solutions
C)emphasizing short-term revenues over long-term considerations
D)balancing the demands of all stakeholders rather than giving shareholders priority
E)having written-out procedures for handling ethical problems

Question 35

The creation and distribution of wealth generate by-products that can cause injury,loss,or danger to people and the environment.Because of that,we are said to live in a(n)________ society.

A)hazardous
B)unhealthy
C)toxic
D)risk
E)wasteful

Question 36

A human resources manager deals with an employee named Henrietta,who is making a sexual harassment claim against another employee named Joe.Which of the following actions taken by the manager would most likely enable unethical behavior?

A)evaluating Henrietta's claim according to a written code of ethics set up by the company
B)emphasizing an efficient end to the incident to minimize any harm it might cause to the company's public image
C)using procedures formalized by the ethics committee to aid the effective processing of harassment cases
D)using the company's strong ethical stand to support a thorough examination of Henrietta's claim
E)making sure both sides of the issue are thoroughly investigated

Question 37

Which of the following responsibilities lies at the base of the pyramid of global corporate social responsibility and performance?

A)legal responsibility
B)economic responsibility
C)environmental responsibility
D)ethical responsibility
E)philanthropic responsibility

Question 38

What is the goal of ecocentric management?

A)to gain green environmental certification to impress consumers and other stakeholders
B)to make the organization's products and services seem environmentally friendly even if they really are not
C)to reimburse the people adversely affected by the pollution that the organization's past economic activities created
D)to instill an organizational ethics code that is based on the ethical system known as egoism
E)to create sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders

Question 39

What does the Sarbanes-Oxley Act require of companies?

A)to choose more independent boards of directors
B)to use a looser set of accounting rules
C)to keep two sets of books,one public and one private
D)to require someone other than managers sign off on financial results
E)to pay executives large annual bonuses

Question 40

The ethical climate of an organization refers to

A)the requirement that companies adhere strictly to accounting rules.
B)decisions based on rewards and punishments and immediate self-interest.
C)ethical behavior that is based on the opinions and behaviors of relevant other people.
D)the processes by which decisions are evaluated and made on the basis of right and wrong.
E)an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

Question 41

Which of the following is one of Kohlberg's stages of cognitive moral development?

A)unconventional
B)emotional
C)relative
D)principled
E)developed

Question 42

A person who sees beyond authority,laws,and norms and follows his own self-chosen ethical principles is most likely to be in the ________ stage of Kohlberg's model of cognitive moral development.

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

Question 43

Rashida is a traveling sales representative.Most of her colleagues fill out inaccurate expense records to be eligible for extra reimbursement.Rashida can either do the same thing or record real,accurate expenses.Rashida's situation is an example of

A)a moral rights debate.
B)an ethical issue.
C)Kyosei.
D)an avoidance situation.
E)greenwashing.

Question 44

Kiko works as a receptionist for a medical office.Some of the doctors have asked her to tell patients that they are in an appointment when in fact they are playing golf.Which of the following actions would Kiko take if she wanted to follow the ethical system of universalism?

A)make sure the doctors do her a favor,such as giving her tickets to a concert,in return for lying for them
B)ask around to see if other receptionists have done similar favors for doctors
C)refuse to lie because she believes that the lie will be discovered,harming her reputation
D)quit her job because she believes all people should uphold certain values,such as not lying
E)decide to lie because everyone does it at one time or another

Question 45

________ is moral philosophy

A)A system of rules that governs the ordering of values
B)A system of ethical ideas that depends on kyosei and human dignity
C)A system that promotes the greatest good for the greatest number
D)Principles,rules,and values people use in deciding what is right or wrong
E)Principles needed to prevent,detect,and punish legal violations

Question 46

When he stays in hotels,Jamal packs whatever towels he hasn't dirtied into his suitcase to take home.Because all his colleagues do the same thing,he thinks it is acceptable to do so.In this scenario,which of the following ethical systems has Jamal used to rationalize his decision?

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

Question 47

Who often suffers the most when corporations behave unethically?

A)top executives
B)consumers
C)rank-and-file employees
D)corporation lawyers
E)board of directors

Question 48

Maja's behavior is typically guided by what she thinks would be acceptable to her parents.According to Kohlberg,which of the following stages of moral development does Maja's behavior exemplify?

A)utilitarian stage
B)conventional stage
C)principled stage
D)preconventional stage
E)conclusive stage

Question 49

Ellis plans to start a business called Egg Smart,which involves producing eggs for consumers at a low price.To accomplish this,Ellis decides to comply with only the minimum safety standards.Based on virtue ethics,what is the problem with Ellis's approach?

A)It does not use a standard of values shared by most people.
B)It does not go beyond the conventional rules of society.
C)It does not take into account how other people view his approach.
D)It does not determine if it will benefit more people than it harms.
E)It does not ensure quick profits for the company.

Question 50

________ considers acceptable behavior to be that which maximizes benefits for the individual.

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

Question 51

________ is the system of rules that governs the ordering of values.

A)Ethnocentrism
B)Ethics
C)Dynamics
D)Legitimacy
E)Dialectics

Question 52

________ are the two ethical ideals of the Caux Principles.

A)Fairness and equality
B)Self-fulfillment and sharing
C)Unity and respect
D)Kyosei and human dignity
E)Honesty and kyosei

Question 53

According to Kohlberg's model of cognitive moral development,people in which of the following stages tend to make decisions based on rewards and punishments and immediate self-interest?

A)principled stage
B)conventional stage
C)righteous stage
D)preconventional stage
E)unconventional stage

Question 54

Rafael believes that everyone should uphold honesty,justice,and kindness so that society can function at its best.Which ethical system best fits Rafael's beliefs?

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

Question 55

________ acknowledges the existence of different ethical viewpoints and uses norms as guidelines.

A)Virtue ethics
B)Relativism
C)Universalism
D)Utilitarianism
E)Egoism

Question 56

Which of the following statements best describes relativism?

A)The greatest good for the greatest number should be the overriding concern of decision makers.
B)Acceptable behavior is that which maximizes benefits for the individual.
C)Ethical behavior should be based on the opinions and behaviors of relevant other people.
D)What is moral goes beyond conventional rules and also comes from what a mature person with good "moral character" would deem right.
E)All rules and laws should be based in the Judeo-Christian system.

Question 57

Utilitarianism is centered around the idea that

A)ethical ideas depend on kyosei and human dignity.
B)an ethical system should define acceptable behavior as that which maximizes consequences for the individual.
C)an ethical system with no rules will help bring out the best in people.
D)ethical behavior should be based on the opinions and behaviors of relevant other people.
E)the greatest good for the greatest number should be the overriding concern of decision makers.

Question 58

The management of an organization follows the ideology that if they work keeping in mind the company's own economic self-interest,the total wealth of the society will be maximized.Which of the following best describes the ethical system used by this organization?

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

Question 59

Which of the following statements about the Sarbanes-Oxley Act is true?

A)It was passed in 1992.
B)It requires strict adherence to accounting rules.
C)It allows senior managers to refuse to sign off on financial results.
D)It is intended to maintain truth in advertising.
E)It requires whistleblowers to be fired.

Question 60

Afonso is a customer service representative who determines his work behavior solely on whether he thinks he can do actions without receiving immediate punishment from his boss.According to Kohlberg,which of the following stages of moral development does Afonso's behavior exemplify?

A)principled stage
B)conventional stage
C)righteous stage
D)preconventional stage
E)unconventional stage

Question 61

The process for ethical decision making begins with

A)defining the complete moral problem.
B)developing an ethical framework and determining the economic outcomes.
C)considering the legal requirements and evaluating the legal duties.
D)understanding all moral standards and recognizing all moral impacts.
E)proposing a convincing moral solution.

Question 62

Which of the following should be done for constructing an effective ethics code?

A)Keep it complex,formal,and rigid so that employees realize how serious it is.
B)Make it as catchy and clever as possible.
C)Involve only the legal department and top executives in writing the statement.
D)Let the employees construct the ethics code according to their personal ideologies.
E)Focus on real-life situations that employees can relate to.

Question 63

An ethics program that is designed by corporate counsel to detect,prevent,and punish legal violations is called a(n)________ ethics program.

A)life-cycle-based
B)compliance-based
C)integrity-based
D)sunshine-framework
E)responsibility-based

Question 64

Which of the following is true of whistleblowing?

A)The road for whistleblowers is easy and painless.
B)Whistleblowers are often encouraged by their company to go public.
C)Whistleblowers are seldom given undesirable assignments.
D)Many whistleblowers suffer consequences such as being ostracized.
E)The Sarbanes-Oxley Act prohibits whistleblowing.

Question 65

Going beyond legal compliance with ADA standards and training people to understand that individuals with disabilities have valued abilities is an example of a(n)________ ethics program.

A)compliance-based
B)integrity-based
C)egoism-based
D)competency-based
E)utilitarianism-based

Question 66

Telling others,inside or outside the organization,about wrongdoing is called.

A)ethical shadowing.
B)whistleblowing.
C)egoism.
D)ethical interference.
E)moral consequences.

Question 67

To behave ethically,an individual will require not just moral awareness and moral judgment but also

A)social capital.
B)moral intelligence.
C)creative thinking.
D)moral character.
E)technical skills.

Question 68

According to John Rawls,only a person ignorant of his own identity can make a truly ethical decision.This thought process is based on

A)ethical shielding.
B)the veil of understanding.
C)the veil of ignorance.
D)ethical certainty.
E)ethical ignorance.

Question 69

Which of the following is a question associated with the "sunshine" ethical framework?

A)How would your mother feel if she knew you had committed those actions?
B)How would you feel if your actions were highlighted in the media?
C)How would you feel if you were on the receiving end of those actions?
D)How would a lawyer evaluate the actions you are considering taking?
E)How would a moral philosopher evaluate the actions you are considering taking?

Question 70

Having the strength and persistence to act in accordance with one's ethics despite the challenges is referred to as moral

A)awareness.
B)judgment.
C)certainty.
D)action.
E)character.

Question 71

The top executives of Granite Financial have established processes to review the company's financial dealings and communications with customers to make sure everything is legal and honest yet remain focused on profits.These processes are part of the company's

A)corporate social responsibility.
B)ethical climate.
C)ecocentric management.
D)legal responsibility.
E)moral obligation.

Question 72

Integrity-based ethics programs involve

A)stated ethics,rules,and policies.
B)corporate social responsiveness.
C)a set of guiding principles.
D)monitoring and punishment.
E)discretionary social responsibility.

Question 73

Making ethical decisions takes moral ________,which helps a person realize that an issue has ethical implications.

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

Question 74

Which of the following plays a role in the moral awareness involved in identifying an act as unethical,the moral judgment to fully consider the repercussions,and the moral character to take the ethical action?

A)courage
B)legitimacy
C)intelligence
D)compliance
E)knowledge

Question 75

Corporate social responsibility is the

A)ethical system stating that all people should uphold certain values that society needs to function.
B)obligation toward society assumed by business.
C)system that defines acceptable behavior as that which maximizes consequences for the individual.
D)ideology that the greatest good for the greatest number should be the overriding concern of decision makers.
E)maximization of shareholder wealth.

Question 76

Compliance-based ethics programs are typically designed by

A)corporate counsel.
B)employees.
C)top executives.
D)stockholders/owners.
E)focus groups of customers.

Question 77

Compliance-based ethics programs

A)are company mechanisms designed to instill in people a personal responsibility for ethical behavior.
B)are designed by corporate counsel to prevent,detect,and punish legal violations.
C)define ethical behavior as that which maximizes consequences for the individual.
D)define ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
E)are designed by the employees to define what ethical standards they should follow.

Question 78

Which of the following is most likely to be the last step in an ideal ethical decision-making process?

A)defining the complete moral problem
B)developing an ethical framework
C)determining the legal requirements
D)understanding all moral standards
E)proposing a moral solution

Question 79

Which of the following is a danger sign that organizations may be allowing or even encouraging unethical behavior?

A)excessive emphasis over long-term consideration over short-term revenues
B)failure to establish a written code of ethics
C)an informal corporate structure
D)flexible timings that allow employees to choose their hours of work
E)multiple levels of supervision and monitoring

Question 80

Moral judgment involves

A)knowing which actions are required by law.
B)knowing which actions are morally defensible.
C)realizing that an issue has ethical implications.
D)having the strength to act in accordance with your ethics.
E)adopting the values of the most relevant moral leaders.