Deck 6: Managing Social Responsibility and Ethics

Question 1

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) following ISO 9000 standards

Answer 1

C

Question 2

According to the ________ argument on social responsibility, businesses should be socially responsible because responsible actions are the right thing to do.

A) better environment
B) ethical obligation
C) public image
D) greater good

Answer 2

B

Question 3

________ 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

Answer 3

B

Question 4

Years ago McDonald's switched from Styrofoam boxes for its large sandwiches to corrugated boxes made partially from recycled materials because of concerns that Styrofoam took too long to decompose in landfills. In this situation, McDonald's was ________

A) fulfilling its social obligation
B) socially aware
C) socially responsive
D) socially image conscious

Question 5

In the United States a company that meets, but does not exceed, federal pollution control standards and does not discriminate in hiring, promotion, and pay is generally meeting its ________.

A) social screening requirements
B) green management requirements
C) social obligation
D) social responsibility

Question 6

Which one 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) By 2019, Chick-fil-A will stop selling products containing meat from poultry raised with antibiotics.
D) UPS has a company-wide policy that urges employees to volunteer during natural disasters and other crises.

Question 7

Under the classical view, aiding the few through philanthropy ________.

A) benefits the whole by uplifting the downtrodden
B) grows wealth for stockholders by increasing the stock trading price
C) increases costs for consumers
D) manipulates society through social engineering

Question 8

When PETA supporters picketed Avon products because of its use of animals in the testing of its cosmetics, Avon changed its practices and stopped testing on animals. In this situation, Avon exercised ________.

A) social obligation
B) classical responsibility
C) social responsiveness
D) social engineering

Question 9

Which one of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct?

A) superiority of prevention over cures
B) possession of resources
C) balance of responsibility and power
D) better environment

Question 10

Following Hurricane Katrina in 2005, WalMart sent semis loaded with items such as bottled water, diapers, and other daily necessities to the New Orleans area. We can say that WalMart exercised ________.

A) social obligation
B) social responsiveness
C) social responsibility
D) social awareness

Question 11

If your university provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be said to be ________.

A) fulfilling its social obligation
B) socially aware
C) socially responsive
D) socially image conscious

Question 12

The aspect that differentiates social responsibility from other similar concepts is that it adds a(n) ________.

A) ethical imperative
B) legal imperative
C) environmental imperative
D) social imperative

Question 13

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

A) social and legal responsibilities
B) economic and social responsibilities
C) social and economic responsibilities
D) economic and legal responsibilities

Question 14

The ________ view of social responsibility holds that management's only social responsibility is to maximize profits.

A) socioeconomic
B) classical
C) sociocultural
D) neoclassical

Question 15

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

A) George Stigler
B) John McCain
C) Bernard Madoff
D) Milton Friedman

Question 16

A U.S. business that provides on-site childcare facilities for employees as part of a negotiation with its union is ________.

A) being socially responsive
B) fulfilling its social obligations
C) adopting social screening
D) practicing green management

Question 17

The belief that business involvement can help solve difficult social problems is the ________ argument of social responsibility.

A) public expectation
B) public image
C) better environment
D) possession of resources

Question 18

If your university was paying minimum wage when necessary and applying the minimum legal standards to its employees work environment, it would be said to have fulfilled its ________.

A) social obligation
B) social responsibility
C) social responsiveness
D) social expectation

Question 19

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

A) social responsibility; competitive market
B) social responsiveness; government
C) socioeconomics; environment
D) social obligation; law

Question 20

The ________ view is that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.

A) sociotechnical
B) socioeconomic
C) sociocultural
D) sociopolitical

Question 21

Baskins wants to build a nuclear plant because this will not add to his city's already serious pollution problem, while taking care of its electricity requirements. Baskins is following which of the social responsibility views?

A) market view
B) activist view
C) classical view
D) socioeconomic view

Question 22

According to the socioeconomic view, managers' social responsibilities go beyond making profits to include protecting and improving society's welfare.

Question 23

The process of applying social and environmental criteria to an investment decision is known as ________.

A) green screening
B) value-based selection
C) violation of profit maximization
D) social screening

Question 24

Under what approach do organizations exhibit little environmental sensitivity, and simply obey laws, rules and regulations?

A) stakeholder approach
B) market approach
C) legal approach
D) activist approach

Question 25

Carson wants to build an electricity generating plant that uses combustible fuels collected from the city's garbage, and located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines. Carson is being mostly ________.

A) socially guarded
B) socially focused
C) socially obligated
D) socially responsive

Question 26

In which of the following approaches of going green does the organization exhibit the least environmental sensitivity?

A) legal (light green) approach
B) dark green approach
C) market approach
D) stakeholder approach

Question 27

Managers who consider the impact of their organization on the natural environment are said to be practicing ________.

A) value-based management
B) ethics-based management
C) socially responsible management
D) green management

Question 28

Which one of the following arguments on social responsibility states that there is no direct line of responsibility for social actions?

A) dilution of purpose
B) ethical obligation
C) balance of responsibility and power
D) lack of accountability

Question 29

Appleton would like to build a coal-burning electric generating facility located in a remote area because the cost involved is moderate. Appleton is following which of the social responsibility views?

A) legal view
B) stakeholder view
C) classical view
D) socioeconomic view

Question 30

The most outspoken advocate of the classical view of organizational social responsibility is Alan Greenspan.

Question 31

One argument against businesses championing social responsibility issues is that businesses already have too much power.

Question 32

List and discuss three arguments in favor of business social responsibility and five arguments against it.

Question 33

Which one of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests?

A) public expectations
B) violation of profit maximization
C) superiority of prevention over cures
D) possession of resources

Question 34

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 35

Studies have confirmed that businesses that engage in social involvement enjoy higher profits than those which do not.

Question 36

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

Question 37

In the ________ approach of going green, organizations respond to the environmental preferences of customers.

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

Question 38

Which one of the following arguments on social responsibility states that pursuing social goals hurts a business's economic productivity?

A) long-run profits
B) dilution of purpose
C) stakeholder interests
D) public image

Question 39

Compare and contrast the ideas of social obligation, social responsiveness, and social responsibility.

Question 40

Possession of resources is an argument in favor of social responsibility.

Question 41

Miller's Multivitamins uses only organically grown fruits and vegetables in its vitamins. It purifies any water used in its processes before releasing it back into the environment and exceeds the EPA requirements for cleaning particulates from the air it uses. Which approach to green management does Miller's Multivitamins use?

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

Question 42

Under what approach does the organization work to meet the environmental demands of multiple groups of people including employees, suppliers, or the community?

A) stakeholder approach
B) market approach
C) legal approach
D) activist approach

Question 43

Which of the following ISO standards is related to quality management?

A) ISO 9000
B) ISO 14000
C) ISO 8000
D) ISO 15000

Question 44

The legal approach to going green is also known as the dark green approach.

Question 45

Which of the following ISO standards is related to environmental management?

A) ISO 8000
B) ISO 9000
C) ISO 14000
D) ISO 15000

Question 46

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 favors.

A) preconventional
B) conventional
C) principled
D) post-conventional

Question 47

________ defined as the basic convictions about right and wrong decisions and behavior.

A) Beliefs are
B) Principles are
C) Ethics is
D) Values are

Question 48

To be named on the Global 100 list, which is announced each year at the World Economic Forum, a company ________.

A) has to have earned ISO certification
B) has to display a superior ability to effectively manage environmental and social factors
C) has to be free from EPA violations
D) has to submit an application with supporting documentation

Question 49

One way to evaluate a company's green actions is to use the ________ list of the most sustainable corporations in the world.

A) Global 100
B) Global 200
C) Global 400
D) Global 500

Question 50

In the ________ approach of going green, an organization works to meet the environmental demands of its employees, suppliers, or community.

A) dark green
B) light green
C) market
D) stakeholder

Question 51

What approach deals with an organization changing its interaction with the environment because of the preferences of its customers?

A) stakeholder approach
B) market approach
C) legal approach
D) activist approach

Question 52

Many companies around the globe voluntarily report their efforts in promoting environmental sustainability using the guidelines developed by the ________.

A) Global Compact
B) Environmental Protection Agency
C) Global Reporting Initiative
D) Organization for Economic Co-operation and Development

Question 53

In the activist approach to going green, an organization looks for ways to protect its sources of supply.

Question 54

Which of the following approaches of going green reflects the highest degree of environmental sensitivity and is also a good illustration of the social responsibility of the organization?

A) legal approach
B) market approach
C) stakeholder approach
D) activist approach

Question 55

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

Question 56

Under what approach is the organization driven to look for ways to respect and preserve the earth and its natural resources?

A) stakeholder approach
B) market approach
C) legal approach
D) activist approach

Question 57

Which of the following ISO standards is related to environmental management?

A) ISO 9000
B) ISO 14000
C) ISO 16000
D) ISO 8000

Question 58

Explain the four approaches that organizations can take with respect to environmental issues and going green.

Question 59

EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it releases between 140 and 150 micrograms. Which approach of green management does Utilimotors use?

A) legal approach
B) market approach
C) stakeholder approach
D) activist approach

Question 60

Which of the following ISO standards is related to quality management?

A) ISO 8000
B) ISO 9000
C) ISO 14000
D) ISO 15000

Question 61

At the ________ level of moral development, individuals define moral values apart from the authority of the groups to which they belong or society in general.

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

Question 62

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

A) preconventional
B) conventional
C) principled
D) post-conventional

Question 63

Which one of the following is true concerning the impact of organizational culture on ethical behavior?

A) An organization with low conflict tolerance encourages ethical behavior.
B) An organization with strong culture can encourage either ethical or unethical behavior.
C) An organizational culture that is high in conflict tolerance encourages unethical behavior.
D) An organizational culture that is high in control encourages unethical behavior.

Question 64

Pharmacists who decline to dispense drugs that cause abortions are functioning at the ________ stage of moral development.

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

Question 65

John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which one of the following statements best reflects John's thoughts if he is at the preconventional level of moral development?

A) If I do go through with the act, I will be letting down my manager and coworkers badly.
B) My job is to protect the information that this company deals in and I should not violate my duties.
C) I am liable to be criminally prosecuted for my involvement in stealing the information.
D) Going through with this act would be highly unfair not just to the client, but also to my employers.

Question 66

________ measures the strength of a person's convictions.

A) Moral development
B) Locus of control
C) Ego strength
D) Social desirability

Question 67

Despite reassurances from R&D's internal testing lab, Stephen believes the new material for climbing ropes should not be used in their manufacture until it has been certified by an independent lab. It would appear that Stephen has ________.

A) high ego strength
B) weak ego strength
C) internal locus of control
D) external locus of control

Question 68

In which of the following stages of moral development do individuals value rights of others and uphold absolute values and rights regardless of the majority's opinion?

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

Question 69

A student who never considers breaking into an instructor's office to steal an accounting exam didn't think twice about asking a friend who took the same course from the same instructor last semester what questions were on the exam. What does this example illustrate?

A) This example illustrates the concept of issue intensity.
B) The student involved has an internal locus of control.
C) The student involved has a strong ego strength.
D) This example illustrates the concept of value-based management.

Question 70

The phrase "My word is my bond" is likely to be spoken by someone at the ________ stage of moral development.

A) pre-conventional
B) conventional
C) post-conventional
D) principled

Question 71

Which one of the following organizations is best suited to promote ethical behavior in its employees?

A) An organization that has a reward and punishment system that depends on specific goal outcomes.
B) An organization that has formal rules and regulations in place.
C) An organization that punishes employees who do not meet goals.
D) An organization that rewards success without asking how it was achieved.

Question 72

In which one of the following stages of moral development do individuals live up to what is expected by people close to them and maintain order by fulfilling obligations to which they have agreed?

A) conscientious stage
B) conventional stage
C) principled stage
D) preconventional stage

Question 73

Upper management is pushing hard to increase earnings per share. If Moe yields to this pressure despite misgivings about the use of a non-certified material in the production of climbing equipment, he will be demonstrating ________.

A) high ego strength
B) weak ego strength
C) internal locus of control
D) external locus of control

Question 74

________ is the degree to which people believe they control their own fate.

A) Ego strength
B) Locus of control
C) Social responsibility
D) Social obligation

Question 75

John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which of the following statements best reflects John's thoughts if he is at the principled level of moral development?

A) My job is to protect the information that this company deals in and I should not be violating my duties.
B) By stealing from another person, I will be in violation of the moral standards I've come to expect of myself.
C) If my involvement is detected, my friends and family would be humiliated by my actions.
D) If I am convicted for this crime, I will surely be imprisoned and will probably never be employed anywhere else.

Question 76

"It's not my fault!" is a cry often heard from someone with ________.

A) an external locus of control
B) an internal locus of control
C) no locus of control
D) a weak locus of control

Question 77

Norman is a stickler for following the rules because he is sure he will be caught and punished if he doesn't. What is Norman's level of moral development?

A) preconventional
B) conventional
C) principled
D) post-conventional

Question 78

________ represent basic convictions about what is right and wrong.

A) Dogmas
B) Values
C) Principles
D) Beliefs

Question 79

In which one of the stages of moral development do individuals stick to rules to avoid physical punishment and follow rules only when doing so is in their immediate interest?

A) preconventional stage
B) conventional stage
C) principled stage
D) post-conventional stage

Question 80

What can be said about a manager who believes that she can work hard and will meet the productivity goals of her organization despite unfavorable conditions?

A) She has an external locus of control.
B) She has a high ego strength.
C) She has a weak ego strength.
D) She has an internal locus of control.