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Chapter 5
Ethics and
Social Responsibility
True/False Questions
1.
Timberland’s focus on philanthropy costs the company more than $2 million in sales each
year.
Answer: True
2.
Level: 1
Page: 156
Type: F
Level: 2
Page: 157
Type: F
Level: 1
Page: 157
Type: F
Level: 2
Page: 157
Type: F
An individual who must make an ethical choice in an organization is called the moral
agent.
Answer: True
8.
Type: F
An ethical dilemma arises in a situation when each alternative choice or behavior is
undesirable because of potentially harmful ethical consequences.
Answer: True
7.
Page: 156
If something is not illegal, it must be ethical.
Answer: False
6.
Level: 2
Free choice lies between the domains of codified law and ethics.
Answer: False
5.
Type: F
Ethics, found between the domains of law and free choice, is the code of moral principles
that governs any individual or groups.
Answer: True
4.
Page: 155
Enron, in mid-2000 was America’s 7th largest corporation.
Answer: True
3.
Level: 2
Level: 1
Page: 157
Type: F
Most ethical dilemmas involve a conflict between the needs of the part and the whole.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 124
Answer: True
9.
Type: F
Level: 2
Page: 159
Type: F
Level: 2
Page: 159
Type: F
Level: 1
Page: 159
Type: F
Level: 2
Page: 160
Type: F
Level: 3
Page: 160
Type: F
Rights that should be considered in the moral rights approach include the right of free
consent, the right to privacy, and the right of freedom of conscience.
Answer: True
17.
Page: 159
Individualism is popular in the highly organized society of today because it supports
immediate self-gain.
Answer: False
16.
Level: 2
In the individualism approach, the right of free speech must be considered.
Answer: False
15.
Type: F
The ethical concept that acts are moral when they promote the individual's best long term
interests, which ultimately leads to the greater good, is known as the moral rights
approach.
Answer: False
14.
Page: 159
Monitoring the Internet to maintain the company’s ethical climate and workplace
productivity could be considered part of an individualistic approach.
Answer: False
13.
Level: 2
The basis for the recent trend among companies to police employee personal habits such
as alcohol and tobacco consumption on the job is called the utilitarian ethic.
Answer: True
12.
Type: F
Objective dualism is the ethical concept that argues that moral behaviors produce the
greatest good for the greatest number of people.
Answer: False
11.
Page: 159
Utilitarian, individualism, moral-rights, and objective dualism are the four approaches
that guide ethical decision-making.
Answer: False
10.
Level: 2
Level: 2
Page: 160
Type: F
Procedural justice requires that different treatment of people not be based on arbitrary
characteristics.
Answer: False
Level: 1
Page: 160
Type: F
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 125
18.
The justice approach is closest to the thinking underlying the domain of free choice.
Answer: False
19.
Type: F
Level: 1
Page: 161
Type: F
Level: 1
Page: 161
Type: F
Level: 2
Page: 161
Type: F
Level: 1
Page: 161
Type: F
Level: 2
Page: 162
Type: F
According to your text, approximately 20% of American adults ever reach the
postconventional level of moral development.
Answer: True
27.
Page: 161
The majority of managers operate at the preconventional level of personal moral
development.
Answer: False
26.
Level: 2
Principled level of moral development is also referred to as the postconventional level.
Answer: True
25.
Type: F
An individual at the postconventional level lives up to expectations of others, fulfills
duties and obligations of social systems, and upholds law.
Answer: False
24.
Page: 161
The concept that individuals should be compensated for the cost of their injuries by the
party responsible, and also that individuals should not be held responsible for matters
over which they have no control, is considered procedural justice.
Answer: True
23.
Level: 3
At the principled level, individuals are concerned with external rewards and punishments.
Answer: False
22.
Type: F
Individuals, at the preconvention level, are concerned with external rewards and
punishments and obey authority to avoid detrimental personal consequences.
Answer: True
21.
Page: 161
Most of the laws guiding human resource management are based on the individualism
approach.
Answer: False
20.
Level: 2
Level: 3
Page: 162
Type: F
The great majority of managers operate at level two, the conventional level.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 126
Answer: True
28.
Level: 1
Page: 166
Type: F
Level: 1
Page: 166
Type: F
Level: 3
Page: 167
Type: F
Level: 1
Page: 167
Type: F
Level: 1
Page: 167
Type: F
Level: 2
Page: 169
Type: F
Economic, legal, ethical, and discretionary responsibilities are the four areas of social
responsibility can evaluate corporate social performance.
Answer: True
37.
Type: F
When Earth Day was first celebrated in 1980, environmentalists were considered by most
business leaders to be an extremist fringe group.
Answer: False
36.
Page: 165
Important stakeholders in corporations include the government and the community.
Answer: True
35.
Level: 2
Special interest groups include trade associations, political action committees and
consumerists.
Answer: True
34.
Type: F
All stockholders of an organization are its stakeholders but not all stakeholders are its
stockholders.
Answer: True
33.
Page: 163-164
A stakeholder is any group within or outside the organization that has a stake in the
organization's performance.
Answer: True
32.
Level: 2
Social responsibility is management's obligation to make choices and take actions that
will contribute to the welfare and interests of society as well as the organization.
Answer: True
31.
Type: F
The only aspect of an organization that influences ethics is culture.
Answer: False
30.
Page: 162
Women's sense of integrity seems to be entwined with an ethic of care; hence, they may
be ideally suited for the servant leadership needed in today's organizations.
Answer: True
29.
Level: 2
Level: 2
Page: 171
Type: F
Ethical behavior occurs when decisions enable an individual or company to gain at the
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 127
expense of society.
Answer: False
38.
Level: 1
Page: 172
Type: F
A formal statement of the organization's values regarding moral principles and governing
its response to social values is called a code of ethics.
Answer: True
Level: 1
Page: 176
Type: F
Multiple Choice Questions
1.
______ refers to the code of moral principles and values that govern behaviors with
respect to what is right and wrong.
a.
b.
c.
d.
e.
Social responsibility
Free domain
Ethics
Codified law
Discretionary responsibility
Answer: c
2.
Page: 156
Type: F
Ethics deals with
values that are a part of corporate culture and shapes decisions
concerning social responsibility with respect to the
environment.
a.
b.
c.
d.
e.
internal/external
external/external
internal/internal
external/internal
none of the above
Answer: a
3.
Level: 1
Level: 2
Page: 156
Type: F
The decision to produce a new product by Osh Kosh is in the
a.
b.
c.
d.
e.
domain of codified law.
domain of free choice.
domain of ethics.
domain of compensatory justice.
domain of social responsibility.
Answer: b
Level: 2
Page: 157
Type: A
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 128
4.
The decision by the CSX to downsize and reduce its labor force is in the
a.
b.
c.
d.
e.
domain of codified law.
domain of free choice.
domain of ethics.
social responsibility.
none of the above.
Answer: b
5.
Level: 2
Page: 157
Type: F
A new drug has not been approved by the FDA to sell in the U.S. because further testing
is needed. The company has a chance to sell its product in another country immediately
to start recovering the costs of R & D and production three years ahead of time. This
example places the decision in which of the categories from the text?
a.
b.
c.
d.
e.
The ethical domain
The domain of free choice
The legal domain
The obstructive category
The protective domain
Answer: a
Level: 3
Page: 157
Type: A
A(n) ______ is the individual who must make an ethical choice in an organization
a.
b.
c.
d.
e.
the symbolic leader
an obstructive manager
the defensive individual
the moral agent
an authoritarian manager
Answer: d
8.
Type: A
enforceable norms and standards.
oneself.
laws prescribed by the legal system.
unenforceable norms and standards.
the organization.
Answer: d
7.
Page: 157
In the domain of ethical behavior, obedience is to
a.
b.
c.
d.
e.
6.
Level: 2
Level: 1
Page: 157
Type: F
Carol is a manager at Softest Tissue Corporation. She is faced with an interesting
problem. One of her employees has been cheating the company out of expense money.
Carol must decide whether or not to fire this employee. In this role, Carol is acting as
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 129
a.
b.
c.
d.
e.
a moral agent.
an ethical theorist.
a symbolic leader.
an authoritarian leader.
an obstructive manager.
Answer: a
9.
Level: 2
Page: 157
Type: F
A situation that arises when all alternative choices or behaviors have been deemed
undesirable because of the potentially negative ethical consequences, making it difficult
to distinguish right from wrong, is considered
a.
b.
c.
d.
e.
a moral agent.
a social responsibility.
an ethical dilemma.
an ethical standard.
discretionary responsibility.
Answer: c
Level: 2
Page: 157
Type: F
A normative approach to ethical decision making
a.
b.
c.
d.
e.
reduces ethical dilemmas to easy-to-understand formulas.
uses various approaches to describe guiding values for decisions.
states that everyone must use their employer's value system at work.
dictates only one way to choose to resolve dilemmas.
none of the above.
Answer: b
12.
Type: A
Domain of codified law
Domain of ethics
Domain of free choice
Discretionary responsibility
Domain of symbolism
Answer: b
11.
Page: 157
The assumption that "If it's not illegal, it must be ethical," ignores which of the
following?
a.
b.
c.
d.
e.
10.
Level: 2
Level: 2
Page: 159
Type: F
The
approach is the ethical concept that moral behaviors produce the greatest
good for the greatest number.
a.
defensive
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 130
b.
c.
d.
e.
justice
utilitarian
individualism
moral-rights
Answer: c
13.
Level: 3
Page: 159
Type: A
Grant is a manager at Computer-Care Company. He is expected to consider the effort of
each decision alternative on all parties and select the one that optimizes the satisfaction
for the greatest number of people. This is an example of the
a.
b.
c.
d.
e.
utilitarian approach.
individualism approach.
moral-justice approach.
justice approach.
soft-line managerial approach.
Answer: a
Level: 2
Page: 159
Type: A
Which ethical approach are companies citing to justify their policing of employee's
personal habits on and off the job, such as alcohol and tobacco consumption?
a.
b.
c.
d.
e.
Justice approach
Utilitarian approach
Individualism approach
Moral-justice approach
Discretionary responsibility
Answer: b
16.
Type: F
utilitarian approach.
individualism approach.
moral-justice approach.
justice approach.
illegal approach.
Answer: a
15.
Page: 159
Ritchie’s Robots decided to continue operations at one plant while shutting down another.
The decision was justified on the basis of what was best for the total corporation. This is
an example of the
a.
b.
c.
d.
e.
14.
Level: 1
Level: 2
Page: 159
Type: F
The
ethic was the basis for the state of Oregon's decision to extend Medicaid
to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk
procedures.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 131
a.
b.
c.
d.
e.
17.
justice
moral-rights
obstructive
individualism
utilitarian
Answer: e
Level: 2
Page: 159
Type: F
An example of ______ is when everyone is pursuing self-direction, the greater good is
ultimately served because people learn to accommodate each other in their own long-term
interest.
a.
b.
c.
d.
e.
utilitarian approach
individualism approach
moral-justice approach
justice approach
social responsibility
Answer: b
18.
d.
e.
Type: F
an example of the utilitarian approach to ethical behavior.
representative of the moral-justice approach to moral decision making.
an example of the values that guide the individualism approach to ethical
behavior.
silly and outdated.
an example of the justice approach to ethical behavior.
Answer: c
Level: 2
Page: 160
Type: F
______ is NOT a normative ethics approach?
a.
b.
c.
d.
e.
Utilitarian approach
Individualism approach
Social responsibility approach
Moral-rights approach
All of the above are normative approaches as described in the text.
Answer: c
20.
Page: 159-160
The golden rule "do unto others as they would do unto you" is
a.
b.
c.
19.
Level: 2
Level: 2
Page: 159-160
Type: F
Human beings have fundamental rights and liberties that cannot be taken away by another
individual's decision. This ethical decision making approach is known as the
a.
b.
c.
utilitarian approach.
individualism approach.
moral-rights approach.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 132
d.
e.
dualism approach.
None of the above.
Answer: c
21.
Level: 1
Page: 160
Type: F
Which of the following is NOT one of the moral rights that could be considered during
decision-making?
a.
b.
c.
d.
e.
The right to free consent
The right to invade privacy
The right to free speech
The right of freedom of conscience
The right to life and safety
Answer: b
Level: 2
Page: 160
Type: F
The concept that different treatment of people should not be based on arbitrary
characteristics is referred to as
a.
b.
c.
d.
e.
procedural justice.
compensatory justice.
distributive justice.
organizational justice.
moral-justice.
Answer: c
24.
Type: F
Individualism approach
Justice approach
Utilitarian approach
Moral-rights approach
Discretionary responsibility approach
Answer: d
23.
Page: 160
Which of these refers to the ethical concept that moral decisions are those that best
maintain the rights of those people affected by them?
a.
b.
c.
d.
e.
22.
Level: 2
Level: 1
Page: 160
Type: F
Individualism is most closely related to
a.
b.
c.
d.
e.
social responsibility.
free choice.
economic responsibility.
codified law.
togetherness.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 133
Answer: b
25.
Level: 2
Page: 160
Type: F
Sexual harassment is unethical because it violates an important part of which approach to
ethical behavior?
a.
b.
c.
d.
e.
The utilitarian approach
The individualism approach
The justice approach
The moral-rights approach
The defensive approach
Answer: d
Level: 3
Page: 160
Type: F
The ethical decision approach that requires persons to be guided by standards of equity,
fairness and impartiality is the
a.
b.
c.
d.
e.
moral-rights approach.
individualism approach.
utilitarian approach.
justice approach.
discretionary responsibility
Answer: d
28.
Type: F
Moral-rights approach
Individualism approach
Utilitarian approach
Justice approach
Dual-economic approach
Answer: a
27.
Page: 160
Which approach to ethical decision-making is consistent with due process, free consent,
privacy, freedom of conscience and free speech?
a.
b.
c.
d.
e.
26.
Level: 2
Level: 1
Page: 160
Type: F
The moral rights approach that deals with individuals refraining from carrying out any
order that violates their moral or religious norms is the
a.
b.
c.
d.
e.
right of free consent.
right to privacy.
right of freedom of conscience.
right of free speech.
right of due process.
Answer: c
Level: 2
Page: 160
Type: F
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 134
29.
Sexual harassment is unethical because it violates the
a.
b.
c.
d.
e.
right of free consent.
right to privacy.
right of freedom of conscience.
right of free speech.
right of due process.
Answer: c
30.
Level: 1
Page: 160-161
Type: F
Disk Replacement Services has just completed a procedure manual to handle employee
grievances. One of the main criteria is to make it clear to employees that rules will be
administered fairly and consistently. Disk Replacement operates on
a.
b.
c.
d.
e.
the procedural justice approach.
the utilitarian approach.
the individual approach.
the defensive approach.
the free-choice approach.
Answer: a
Level: 2
Page: 161
Type: A
Which of these refers to procedural justice?
a.
b.
c.
d.
e.
The concept that different treatment of people should not be based on arbitrary
characteristics
The concept that rules should be clearly stated and consistently and impartially
enforced
The concept that individuals should be compensated for the cost of their injuries
by the party responsible
The concept that people should be treated differently
None of the above
Answer: b
33.
Type: F
compensatory justice.
distributive justice.
procedural justice.
obstructive justice.
all of the above.
Answer: d
32.
Page: 160
All of these are of concern to managers, under the justice approach, EXCEPT
a.
b.
c.
d.
e.
31.
Level: 2
Level: 1
Page: 161
Type: F
The concept that the party responsible should compensate individuals for the cost of their
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 135
injuries is referred to as
a.
b.
c.
d.
e.
distributive justice.
injury justice.
procedural justice.
organizational justice.
compensatory justice.
Answer: e
34.
is the closest to the justice approach.
Level: 2
Page: 161
Type: F
Most of the laws guiding human resource management are based on the
a.
b.
c.
d.
e.
utilitarian approach.
moral-rights approach.
individualism approach.
justice approach.
collectivism approach.
Answer: d
Level: 3
Page: 161
Type: F
Which of these is true about the ethical decisions made by individuals working in
organizations?
a.
b.
c.
d.
e.
They are based only on the individual's integrity.
They are influenced by a combination of personal values and company culture.
They utilize only that individual's personal needs and family influences.
They are made by evaluating the organization's best interest.
They are dictated by law.
Answer: b
37.
Type: F
social responsibility
free choice
law
discretionary responsibility
ethics
Answer: c
36.
Page: 161
The thinking underlying the domain of
a.
b.
c.
d.
e.
35.
Level: 1
Level: 2
Page: 161
Type: F
In what stage of personal moral development is a person mostly concerned with external
rewards and personal consequences of an action?
a.
b.
Preconventional
Conventional
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 136
c.
d.
e.
Principled
Discretionary
None of the above
Answer: a
38.
Level: 2
Page: 161
Type: F
The preconventional stage of moral development is best illustrated by which of these?
a.
b.
c.
d.
e.
Everybody else is doing it, so it must be okay.
What would my boss think if I did this?
I know this is not right, and I will not do it, even if everyone else is.
What am I going to get from making this decision?
All of the above
Answer: d
Level: 3
Page: 161
Type: A
The conventional stage of moral development is best described by which of the following
statements?
a.
b.
c.
d.
e.
I won't do that because the boss will be upset with me.
Everybody else is doing it, so it must be okay.
I know this is not right, and I will not do it, even if everyone else is.
What am I going to get from making this decision?
All of the above
Answer: b
41.
Type: F
Preconventional
Conventional
Discretionary
Principled
Traditional
Answer: b
40.
Page: 161
Most people have learned to conform to expectations of good behavior expected by
colleagues, family, friends, and society. They are in what stage of moral development?
a.
b.
c.
d.
e.
39.
Level: 2
Level: 2
Page: 161
Type: A
The ______ leadership style matches with the preconventional level of personal moral
development.
a.
b.
c.
d.
e.
autocratic
team oriented
servant leadership
guiding/encouraging
transforming
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 137
Answer: a
42.
Level: 3
Page: 161
Type: F
leadership style matches with the conventional level of personal moral
development.
a.
b.
c.
d.
e.
Autocratic
Coercive
Transforming
Team oriented
Servant
Answer: d
43.
Type: F
Work group collaboration
Task accomplishment
Empowered employees
Full participation
Transforming
Answer: b
Level: 3
Page: 161
Type: F
Which of these employee behaviors matches with the conventional level of personal
moral development?
a.
b.
c.
d.
e.
Task accomplishment
Empowered employees
Work group collaboration
Full participation
Act in own interest
Answer: c
45.
Page: 161
Which of the following employee behaviors matches with the preconventional level of
personal moral development?
a.
b.
c.
d.
e.
44.
Level: 3
Level: 3
Page: 161
Type: F
Which of the following is NOT included in the model of personal moral development
described in your text?
a.
b.
c.
d.
e.
Preconventional level
Conventional level
Principled level
Postconventional level
All of the above are included in the model
Answer: e
Level: 2
Page: 161
Type: F
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 138
46.
The ______ stage is the stage of personal moral development in which an individual
develops an internal set of standards and values.
a.
b.
c.
d.
e.
preconventional
conventional
principled
discretionary
social
Answer: c
47.
Level: 2
Page: 161-162
Type: F
Which leadership style matches with the postconventional level of personal moral
development?
a.
b.
c.
d.
e.
Team oriented
Autocratic
Guiding/encouraging
Coercive
Servant leadership
Answer: e
Level: 3
Page: 162
Type: F
Which of these employee behaviors matches with the postconventional level of personal
moral development?
a.
b.
c.
d.
e.
Empowered employees, full participation
Task accomplishment
Act in own interest
Work group collaboration
Autocratic
Answer: a
50.
Type: F
are in the preconventional level of moral development.
are in the conventional level of moral development.
are in the principled level of moral development.
do not care what people think of them.
none of the above.
Answer: c
49.
Page: 161
People making decisions based on an internal set of beliefs that has more meaning to
them than the expectations of others
a.
b.
c.
d.
e.
48.
Level: 2
Level: 3
Page: 162
Type: F
The great majority of managers operate at the
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 139
a.
b.
c.
d.
e.
51.
preconventional level.
principled level.
conventional level.
postconventional level.
autocratic level.
Answer: c
Level: 2
Only about
development.
percent of American adults reach the level-three stage of moral
a.
b.
c.
d.
e.
Page: 162
Type: F
preconventional
autocratic
postconventional
conventional
transformative
Answer: d
Level: 2
Page: 162
Type: F
American managers working in different cultures need __________ and __________
when faced with difficult situations.
a.
b.
c.
d.
e.
sensitivity, training
diligence, cross-cultural management
training, strong goals
sensitivity, openness
openness, cross-cultural management
Answer: d
54.
Level: 3
Regarding the levels of personal moral development, the majority of managers operate at
the ______ level.
a.
b.
c.
d.
e.
53.
Type: F
two
four
eleven
fifteen
twenty
Answer: e
52.
Page: 162
Level: 2
Page: 164
Type: F
Ethical standards can be affirmed and communicated through __________ and
__________.
a.
ceremonies, public awards
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 140
b.
c.
d.
e.
management direction, public awards
management direction, employee empowerment
employee empowerment, ceremonies
ceremonies, management direction
Answer: a
55.
Level: 2
Page: 165
Type: F
The obligation of organization management to make decisions and take actions that will
enhance the welfare and interests of society as well as the organization is referred to as
a.
b.
c.
d.
e.
organizational responsibility.
social responsibility.
discretionary responsibility.
economic responsibility.
none of the above.
Answer: b
Level: 1
Page: 166
Type: F
Which of these is true about the policy a bank adopts toward its investing of depositor's
money?
a.
b.
c.
d.
e.
It is an expression of its philosophy of social responsibility.
It is important only to the community.
It has no ethical implications.
It would represent its personal state of moral development.
All of the above
Answer: a
58.
Type: F
Culture
The reward system
Emphasis on legal and professional standards
Leadership and decision processes
The extent to which the company cares for its people
Answer: a
57.
Page: 165
______ is a major force that influences ethics in an organization.
a.
b.
c.
d.
e.
56.
Level: 2
Level: 2
Page: 166
Type: A
Which of these is true about a company with a sense of social responsibility?
a.
b.
c.
d.
e.
It would be most concerned with the cost of pollution control devices.
It would only care about their stockholders and employees.
It would install safety control devices before the government required them.
It would wait until the government required smokestack scrubbers.
It would follow the competitors.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 141
Answer: c
59.
Page: 166
Type: F
a supplier.
an international customer.
a stakeholder.
OPEC.
a trade association.
Answer: c
Level: 1
Page: 166
Type: F
Primary stakeholders of an organization include
a.
b.
c.
d.
e.
employees.
customers.
investors and shareholders.
suppliers.
all of the above.
Answer: e
Level: 1
Page: 167
Type: F
All of the following are examples of special interest groups EXCEPT
a.
b.
c.
d.
e.
professional associations.
trade associations.
political action committees.
courts.
consumerists.
Answer: d
63.
Level: 2
Any group within or outside the organization that has a stake in the organization's
performance is called
a.
b.
c.
d.
e.
62.
Type: A
world trade.
company’s finances.
conventional level.
ethics.
professionalism.
Answer: d
61.
Page: 166
Explicit rules, the reward system, the extent to which the company cares for its people,
the selection system, and leadership and decision process all have a major impact on
a.
b.
c.
d.
e.
60.
Level: 3
Level: 2
Page: 167
Type: F
What type of a stakeholder would a nature conservation group be for a paper
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 142
manufacturing company?
a.
b.
c.
d.
e.
Supplier
Competitor
Employee
Special interest group
None of the above
Answer: d
64.
Level: 2
Page: 170
Type: F
Economic development that generates wealth and meets the needs of their current
generation while focusing on future generations is often labeled __________.
a.
b.
c.
d.
e.
ethical management
activist strategy
sustainability
market strategy
future management
Answer: c
Level: 2
Page: 170
Type: F
According to the book's model for judging corporate social performance, social
responsibility is divided into what into four sections?
a.
b.
c.
d.
e.
Ethical, legal, technical, and rational
Mandatory, technical, discretionary, and economic
Legal, mandatory, economic, and ethical
Discretionary, legal, economic, and ethical
None of the above
Answer: d
67.
Type: A
legal
stakeholder
activist
market
extended
Answer: c
66.
Page: 167
When organizations take the highest level of green, they take a(n) __________ approach.
a.
b.
c.
d.
e.
65.
Level: 2
Level: 2
Page: 171
Type: F
Salomon Brothers' purely profit-maximizing view is an extreme version of
a.
b.
ethical responsibility.
discretionary responsibility.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 143
c.
d.
e.
economic responsibility.
legal responsibility.
moral responsibility.
Answer: c
68.
Level: 2
Page: 171
Type: F
__________ includes behavior that is not always written down and may actually not serve
an organization’s bottom-line.
a.
b.
c.
d.
e.
Legal responsibility
Economic responsibility
Ethical responsibility
Discretionary responsibility
None of the above
Answer: c
Level: 2
Page 172
Type: F
McDonald's helping to feed victims of the 1992 Los Angeles riots is an example of
a.
b.
c.
d.
e.
voluntary organizational behavior.
discretionary responsibility.
proactive response towards social demands.
all of the above.
a and b only.
Answer: d
71.
Type: A
A legal behavior
An unethical behavior
An economic responsibility
A discretionary responsibility
A responsible behavior
Answer: b
70.
Page: 171
Which of these is considered a decision that enables an individual or company to benefit
at society's expense?
a.
b.
c.
d.
e.
69.
Level: 2
Level: 3
Page: 173
Type: A
With respect to appropriate corporate behavior, what society deems ______ as important.
a.
b.
c.
d.
e.
ethical responsibility
discretionary responsibility
economic responsibility
legal responsibility
moral responsibility
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 144
Answer: d
72.
Level: 1
Page: 173
Type: F
______ is the responsibility that goes beyond societal expectations to contribute to the
community welfare.
a.
b.
c.
d.
e.
Ethical responsibility
Discretionary responsibility
Economic responsibility
Legal responsibility
Technical responsibility
Answer: b
Level: 2
Page: 173
Type: F
Speeches, company publications and personal actions of senior management regarding
their commitment to ethical values for a company is an example of
a.
b.
c.
d.
e.
a code of ethics.
leadership by example.
an ethical structure.
a principle-based statement of corporate values.
leadership by speech.
Answer: b
75.
Type: F
Ethical
Economic
Legal
Discretionary
Stakeholder
Answer: d
74.
Page: 173
__________ responsibility is purely voluntary and is guided by a company’s desire to
make social contributions not mandated by economics, law, or ethics.
a.
b.
c.
d.
e.
73.
Level: 2
Level: 2
Page: 175
Type: F
According to your text, Fortune 1,000 companies found that __________ percent address
issues of ethics and business conduct in formal corporate documents.
a.
b.
c.
d.
e.
50
75
85
90
98
Answer: e
Level: 3
Page: 176
Type: F
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 145
76.
A code of__________ is a formal statement of the company’s values concerning ethics
and social issues.
a.
b.
c.
d.
e.
integrity
trust
citizenship
ethics
honesty
Answer: d
77.
Level: 1
Page: 176
Type: F
An example of an ethical structure is
a.
b.
c.
d.
e.
chief ethics officer.
a formal statement of company values.
an equal opportunity policy.
whistle-blowing.
corporate speech.
Answer: a
Level: 2
Page: 177
Type: F
When an official is given the responsibility of overseeing all aspects of ethics and legal
compliance. S/he is referred to as
a.
b.
c.
d.
e.
a whistle-blower.
a chief ethics officer.
vice-president of human resource management.
a yes-man.
a political play.
Answer: b
80.
Type: F
principle-based
policy-based
ethically-based
codified
codes of organizational integrity
Answer: c
79.
Page: 176
Statements that define fundamental values and reference organizational responsibilities,
products and employees are often called __________.
a.
b.
c.
d.
e.
78.
Level: 1
Level: 1
Page: 177
Type: F
Which of these is the disclosure by an employee of an illegal activity?
a.
Tattling
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 146
b.
c.
d.
e.
Whistle-blowing
Organizational communication
The filing of a disclosure statement
Snooping
Answer: b
81.
Level: 2
Page: 178
Type: F
The relationship between social responsibility and financial performance has been shown
to be __________.
a.
b.
c.
d.
e.
non-existant
positive
negative
not important
a reflection of top leadership
Answer: b
Level: 2
Page: 179
Type: F
Leaders who are committed to good business and making a positive impact on society are
refered to as __________.
a.
b.
c.
d.
e.
social entrepreneurs
ethical leaders
ethical entrepreneurs
philanthropic leaders
philanthropic entrepreneurs
Answer: a
84.
Type: F
economic, social, environmental
economic, environmental, ethical
environmental, social, ethical
social, economic, ethical
ethical, environmental, legitimate
Answer: a
83.
Page: 177
Many stakeholders are requiring organizations to report the triple bottom line, which
refers to __________, __________, and __________.
a.
b.
c.
d.
e.
82.
Level: 1
Level: 2
Page: 180
Type: F
Organizations can measure social responsibility based on a model which includes a look
at the companies behavior based on __________.
a.
b.
c.
economics
legal behavior
ethical decision making
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 147
d.
e.
discretionary actions
all of the above
Answer: e
Level: 2
Page: 181
Type: F
Scenario Questions
Scenario—Bryan Stamos
The pressure was on again. Bryan Stamos, the Vice President at McIntyre Hardware, Inc., was
receiving requests from men and women inside the firm and outside the firm, asking him to
review the company's promotion policies. Of the 52 middle and high level executives, only three
were women. The pressure was to review the policies that had led to this perceived imbalance
and, if appropriate, take the steps necessary for correction.
1.
Using the justice approach for ethical decision-making, the logic of promoting qualified
men and women would be supported by
a.
b.
c.
d.
e.
equal rights justice.
distributive justice.
procedural justice.
compensatory justice.
all of the above.
Answer: b
2.
Type: A
The decision to recruit, hire, train and promote both men and women equally is based on
the ethical approach of
a.
b.
c.
d.
e.
utilitarian approach.
individualism approach.
moral rights approach.
all of the above provide the basis.
none of the above.
Answer: d
Type: A
Short Answer Questions
1.
is the code of moral principles and values that govern the behaviors of a
person or group with respect to what is right or wrong.
Answer: ethics
Page: 156
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 148
2.
When values and standards are written into the legal system, it is referred to as _______.
Answer: codified law
3.
Page: 157
An
arises in a situation when each alternative choice or behavior is
undesirable because of potentially harmful ethical consequences.
Answer: ethical dilemma
4.
The ________ is an individual responsible for making an ethical choice.
Answer: moral agent
5.
Page: 157
Page: 157
List the four criteria for ethical decision-making described in the book.
Answer: Utilitarianism, individualism, moral-rights, and justice.
Page: 159
6.
The ethical concept that moral behaviors produce the greatest good for the greatest
number is referred to as
approach.
Answer: utilitarian
7.
Page: 159
The
approach contends that acts are moral when they promote the individual's
best long-term interests.
Answer: individualism
8.
The
approach assets that human beings have fundamental rights and liberties
that cannot be taken away by an individual's decision.
Answer: moral-rights
9.
Page: 159
Page: 160
List three of the six moral rights that should be considered during decision making.
Answer: Students can list any three of the following: the right of free consent, the right to
privacy, the right of freedom of conscience, the right of free speech, the right to due
process, and the right to life and safety.
Page: 160
10.
The
approach holds that moral decisions must be based on standards of equity,
fairness, and impartiality.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 149
Answer: justice
11.
Page: 160
________ justice requires that different treatment of people not be based on arbitrary
characteristics.
Answer: Distributive
12.
Page: 160
_______ justice requires that rules should be clearly stated and consistently and
impartially enforced.
Answer: Procedural
13.
Page: 161
justice argues that individuals should be compensated for the cost of their
injuries by the party responsible.
Answer: Compensatory
14.
At the _______ level of personal moral development, individuals are most concerned
with external rewards and punishments.
Answer: preconventional
15.
Page: 161
Individuals at the _______ level are guided by an internal set of values and standards and
will even disobey rules or laws that violate these principles.
Answer: postconventional or principled
17.
Page: 162
________ is not the only aspect of an organization that influences ethics, but it is a major
force because it defines company values.
Answer: Culture
19.
Page: 161
Most managers operate at the ________ level.
Answer: conventional or second
18.
Page: 161
People learn to conform to the expectations of good behavior that are set by peers and
society at the _______ level.
Answer: conventional
16.
Page: 161
Page: 165
Management's obligation to make choices that will contribute to the well being of both
the organization and society is known as _______.
Answer: social responsibility
Page: 166
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 150
20.
A
is any group within or outside the organization that has a stake in the
organization's performance.
Answer: stakeholder
21.
Page: 166
List three examples of primary stakeholders.
Answer: Investors, shareholders, employees, customers, and suppliers are all examples of
primary stakeholders.
Page: 167
22.
Organizations that are _______ responsible consider the effects of their actions on all
stakeholder groups and may invest in a number of philanthropic causes that benefit
stakeholders.
Answer: socially
23.
Page: 168
_________ __ has become an integral part of organizational strategy for many
organizations because of the collaboration of corporations and environmental activist
groups.
Answer: Environmentalism
24.
___________ is a phrase used to evaluate a company’s commitment to environmental
responsibility.
Answer: Shades of green
25.
Page: 169
Companies that attempt to answer the environmental concerns of various stakeholder
groups would use the _______ approach.
Answer: stakeholder
28.
Page: 169
The ______ approach represents a growing awareness of and sensitivity to environmental
concerns.
Answer: market
27.
Page: 169
When a company does just what is necessary to satisfy legal requirements, it falls under
the _______ approach.
Answer: legal
26.
Page: 169
Page: 170
The ______ approach is taken by organizations that actively search for ways to conserve
the Earth’s resources.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 151
Answer: activist
29.
Page: 170
List the four responsibilities of corporate social performance.
Answer: economic responsibility, legal responsibility, ethical responsibility, and
discretionary responsibility
Page: 171
30.
responsibility is purely voluntary and guided by a company's desire to
make social contributions not mandated by economics, law, or ethics.
Answer: Discretionary
31.
Page: 173
List the three pillars of an ethical organization.
Answer: ethical individuals, ethical leadership, and organizational structures and systems
Page: 175
32.
A
is a formal statement of the company's values concerning ethics and social
issues; it communicates to employees what the company stands for.
Answer: code of ethics
33.
__________ generally outline the procedures to be used in specific ethical situations,
such as marketing practice, conflicts of interest, and observance of laws.
Answer: Policy-based statements
34.
Page: 177
________ programs help employees deal with ethical questions and translate the values
stated in a code of ethics into everyday behavior.
Answer: Ethics training
36.
Page: 176
A group of executives assigned to oversee the organization's ethics by ruling on
questionable issues and disciplining violators is referred to as a(n)
.
Answer: ethics committee
35.
Page: 176
Page: 177
Employee disclosure of illegal organization activities is known as _______.
Answer: whistle-blowing
Page: 177
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 152
Essay Questions
1.
Define ethics and explain how the domain of ethics relates to law and free choice.
ANSWER:
Ethics is the code of moral principles and values that govern the behaviors of a person or
a group with respect to what is right or wrong. In Codified Law, the values and standards
are written into the legal system and enforceable in the courts. In free choice, the law has
no say and the individual or group has complete freedom. The domain of ethics is found
between Codified Law and free choice. While written laws do not bind ethics, still there
are standards of conduct based upon shared principles and values.
Level: 2
2.
Page: 156-157
List the four approaches that are used to describe values for guiding ethical decision
making. Briefly describe each.
ANSWER:
Utilitarian approach is the ethical concept that moral behaviors produce the greatest good
for the greatest number.
Individualism approach is the ethical concept that acts are moral when they promote the
individual’s best long-term interests. This will eventually lead to the greatest good.
Moral-rights approach is the ethical concept that moral decisions are those that best
maintain the rights of those people affected by them.
Justice approach is the ethical concept that moral decisions must be based on standards of
equity, fairness, and impartiality.
Level: 2
3.
Page: 159-161
Briefly explain the justice approach to ethics and then explain the three types of justice.
ANSWER:
The justice approach is the ethical concept that moral decisions must be based on
standards of equity, fairness, and impartiality. Distributive justice requires that different
treatment of people be based only on substantive differences and not be based on arbitrary
characteristics. Procedural justice requires that all rules be administered fairly. Rules
should be clearly stated and consistently enforced. Compensatory justice requires that
individuals should be compensated for the cost of their injuries by the party responsible
and that individuals not be held responsible for matters over which they have no control.
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 153
Level: 2
4.
Page: 160-161
List and define the stages of moral development.
ANSWER:
According to the model in the book, there are three stages of moral development. During
the preconventional stage (level 1), individuals are mostly concerned with external
rewards and punishments. They obey authority in order to avoid punishment. Individuals
conforming to the expectations of others characterize the second level, the conventional
stage. Fulfilling social and interpersonal obligations is important. At the
postconventional/principled stage (level 3), an individual's behavior is directed by an
internal set of values and beliefs. These values are more important than the expectations
of others.
Level: 2
5.
Page: 161-162
What is social responsibility? Why is it considered a difficult concept to grasp?
ANSWER:
Social responsibility is management’s obligation to make choices and take actions that
will contribute to the welfare and interests of society as well as the organization.
It can be a difficult concept to grasp because different people have different beliefs as to
what will improve society’s well being and it covers a range of ambiguous issues with
respect to right or wrong.
Level: 2
6.
Page: 165-166
Explain the concept of a stakeholder and list five common stakeholders.
ANSWER:
A stakeholder is any individual or group of people, inside the organization or outside the
organization, that has a stake or direct interest in that organization's performance.
Stakeholders inside the organization include the employees, the managers, and the
stockholders. Stakeholders outside the organization include customers, suppliers,
regulatory agencies, and creditors.
Level: 1
7.
Page: 166-167
Describe the four shades of green that evaluates commitment to environmental
responsibility.
ANSWER:
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 154
The first shade of shades of green is the legal approach. The legal approach is defined as
an organization that does just what is necessary to satisfy legal requirements and
managers shows little concern for environmental issues. The second shade is the market
approach. Here there is a growing awareness of and sensitivity to environmental
concerns that will satisfy customers. The third shade is the stakeholder approach. The
stakeholder approach is achieved when an organization attempts to solve environmental
problems of various stakeholder groups. The highest shade of green is the activist
approach. This approach is taken by actively searching for ways to conserve the Earth’s
resources.
Level: 3
8.
Page: 169-170
List and define the criteria of corporate social responsibility.
ANSWER:
There are four criteria of corporate social responsibility. The first criterion of social
responsibility is economic responsibility. The organization's basic responsibilities are to
produce the goods and provide the services that society wants, while at the same time
maximizing profits and wealth for owners and stockholders. The second criterion is legal
responsibilities. Through its laws, each society has defined what it considers to be
appropriate corporate behavior. According to this criterion, businesses are expected to
fulfill their economic goals within the law. Ethical responsibilities make up the third
criterion. These include behaviors not necessarily codified into law, nor do they
necessarily serve the organization's direct economic interests. Discretionary
responsibilities, the fourth criterion, are entirely voluntary and are guided by the
organization's desire to make a social contribution not mandated by economics, law,
and/or ethics.
Level: 3
9.
Page: 171-173
Describe each of the three pillars of an ethical organization.
ANSWER:
The three pillars are ethical individuals, ethical leadership, and organizational structures
and systems. Ethical individuals are managers who possess honesty and integrity. People
inside and outside the organization trust these managers. Ethical leadership is shown
through ethical actions. Leaders need to make a commitment to ethical values and help
others throughout the organization embody and reflect those values. Organizational
structures and systems are the set of tools that managers use to shape values and promote
ethical behavior throughout the organization. Examples of these are codes of ethics,
ethical structures, and whistle-blowers.
Level: 2
Page: 174-178
Chapter Five * Ethics and Social Responsibility
Test Bank * Page 155
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