Deck 4: Ethics and Social Responsibility

Question 1

Jonathon is a(n)________, meaning he is both an employee of the company and a customer of its products.

A)stockholder
B)shareholder
C)stakeholder
D)owner
E)community member

Answer 1

C

Question 2

People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.

Answer 2

True

Question 3

Stockholders are the group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders.

Answer 3

False

Question 4

________ are the moral principles and beliefs about what is the right or appropriate way to behave.

A)Societal norms
B)Laws and regulations
C)Ethics
D)Values and norms
E)Individual values

Question 5

Eleanor has witnessed her manager harassing a coworker on multiple occasions. Eleanor knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job. This example illustrates a(n)

A)justice rule.
B)ethical dilemma.
C)moral dilemma.
D)utilitarian rule.
E)moral rights rule.

Question 6

The essential problem when solving moral dilemmas is

A)ethics and laws are fixed principles.
B)ethical beliefs remain constant as time passes.
C)there are no absolute or indisputable rules or principles to decide whether an action is ethical.
D)everyone agrees on what is ethical or unethical.
E)ethics evolve over time, but laws related to ethical beliefs remain constant.

Question 7

Websites that allow free downloading of songs and movies illustrate the "tragedy of the commons" because there is pursuit of self-interest with no consideration for societal interest.

Question 8

Maria is a member of a trade group that has a code of ethics, otherwise known as organizational ethics, for its members to follow.

Question 9

________ are the stakeholder group with the most responsibility for deciding the goals of the organization.

A)Stockholders
B)Customers
C)Managers
D)Operational-level employees
E)Consultants

Question 10

When one person starts to profit by behaving unethically, it encourages other people to act in the same way.

Question 11

Smoking marijuana is illegal in many states; therefore, smoking marijuana is

A)unethical.
B)ethical.
C)possibly unethical or ethical, depending on the circumstances.
D)always ethical when used for medical purposes, whether it is legal or not.
E)always unethical when used for medical purposes, whether it is legal or not.

Question 12

Laws are fixed principles, but ethics are not.

Question 13

The moral rights rule states that people should put the community's interests above the company's.

Question 14

One thing that it is important to remember about stockholders is they

A)are usually regarded as the most critical stakeholder group.
B)are least interested in the company's profits.
C)bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
D)are responsible for using a company's financial, capital, and human resources to increase its performance and thus its stock price.
E)play an important role, but are not the company's only stakeholder group.

Question 15

________ watch the company and its managers closely to ensure that management is working diligently to increase the company's profitability.

A)Community members
B)Suppliers
C)Stockholders
D)Customers
E)Distributors

Question 16

Don decided to close his factory and move production to increase the company's profits even though this caused hardship for his employees and the community. Don's decision is not only legal but also socially responsible behavior.

Question 17

Aaron works in the accounting department for a large manufacturing company. His manager instructed him to record a transaction in an incorrect manner to increase the revenue for the fiscal year. Aaron is pondering whether to report this issue to a higher-level manager. He is experiencing an ethical dilemma.

Question 18

Josiah is comfortable with his decision he made at work and would have no problem with people reading about it on the front page of a morning paper. This indicates that he is following the practical rule of ethics.

Question 19

________ have/has the right to expect a good return or reward by investing their human capital to improve a company's performance.

A)Customers
B)Distributors
C)Suppliers
D)The Community
E)Managers

Question 20

Brenda, the CEO of a manufacturing company, knew that her company followed the Environmental Protection Agency's (EPA)regulations for purifying waste water; however, new research found that those regulations where not strict enough and the drinking water would be affected. Brenda relied on her ________ and told the plant manager to go beyond the EPA's required level to assure that the company waste did not affect the community.

A)moral scruples
B)occupational ethics
C)practical rules
D)environmental principles
E)social justice views

Question 21

"Do unto others as you would have them do unto you," is an example of the ________ principle.

A)utilitarian
B)moral rights
C)justice
D)practical
E)fundamental

Question 22

The practical rule of ethical decision making

A)emphasizes distributing benefits and harms in an equitable way.
B)states that it is acceptable for a company to choose an unethical action if the action provides the greatest good for the greatest number of people.
C)requires managers to determine the fair or unfair rules and procedures for distributing outcomes to stakeholders.
D)states that an ethical decision is one that a manager will be hesitant or reluctant to communicate to people outside the company because the typical person in a society would think it is unacceptable.
E)ensures that managers will take into account the interests of all the stakeholders.

Question 23

Under the practical rule, for a business decision to be ethical, a manager would NOT be reluctant to communicate the decision to people outside the company when

A)the decision, although unethical, would increase shareholders' wealth.
B)a typical person would consider the decision acceptable.
C)a typical person wouldn't care about the decision.
D)a typical person would be unaware of the harmful implications of the decision.
E)he or she could blame the top management of the firm.

Question 24

When Frida was determining if her decision was ethical, she asked herself, "Would the people with whom I have a significant personal relationship, such as family members, friends, or even managers in other organizations, approve of the decision?" Frida was demonstrating which rule of ethical decision making?

A)practical
B)moral scruples
C)utilitarian
D)justice
E)moral rights

Question 25

Stefan is confronted with a serious ethical dilemma. He responds with a solution that creates the greatest good for the greatest number of people. Which ethical rule best describes his response?

A)justice
B)moral rights
C)utilitarian
D)practical
E)moral scruples

Question 26

Shia makes some changes in the production process to ensure employees can perform tasks without endangering their health and safety. Shia is employing the moral rights rule to

A)seek to protect the rights and privileges of people affected.
B)maximize the greatest good for the greatest number of people.
C)distribute benefits in fair ways but ignore harm.
D)hesitate to communicate to people outside the company for fear of them criticizing her decision.
E)randomly distribute harms and benefits.

Question 27

An ethical dilemma for managers is that decisions that will protect the rights of some stakeholders often will hurt the rights of others. This most closely relates to the ________ rule of ethical decision making.

A)practical
B)moral scruples
C)utilitarian
D)justice
E)moral rights

Question 28

The ________ stakeholder group is often considered to be the most critical.

A)managers
B)employees
C)customers
D)stockholders
E)suppliers

Question 29

The practical rule states that an ethical decision is one that

A)best protects the rights of people affected.
B)produces the greatest good for the greatest number of people.
C)distributes benefits and harms in a fair way.
D)can be communicated with no reluctance.
E)is relevant to the financial effectiveness of the organization.

Question 30

A company can act ethically toward employees and meet their expectations by

A)improving their products over time and providing guarantees to customers about the integrity of their products.
B)selling customers quality products at a fair price and providing good after-sales service.
C)maximizing the stockholders' return on investments.
D)creating an occupational structure that fairly and equitably rewards organization members for their contributions.
E)implementing a high-power distance culture and discouraging decentralized decision making.

Question 31

The utilitarian rule states that an ethical decision is one that

A)best protects the rights of people affected.
B)produces the greatest good for the greatest number of people.
C)distributes benefits and harms in an impartial manner.
D)can be communicated with no reluctance.
E)increases the financial effectiveness of the organization.

Question 32

One managerial implication of the justice model is that to be ethical, managers should base their decisions on

A)the effects the decision can have on stakeholders' rights.
B)what provides maximum profits to the company.
C)whatever promotes a fair distribution of outcomes.
D)the personal situation of employees.
E)the greatest good for the greatest number of people.

Question 33

________ are frequently in the position of having to juggle the interests of different stakeholders, including themselves.

A)Stockholders
B)Customers
C)Contractors
D)Managers
E)Suppliers

Question 34

The board and top managers of a nonprofit organization have considerable latitude to decide how they will spend the organization's resources because

A)they are a private foundation.
B)the organization does not have shareholders.
C)they are typically small organizations.
D)they receive contributions and government grants.
E)all monies earned are pumped back into the business.

Question 35

A website offered free streaming and downloading of movies, games, and music. It was eventually shut down by the courts. Websites like these demonstrate that the pursuit of self-interest can lead to a(n)________, a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way.

A)moral dilemma
B)"tragedy of the commons"
C)ethical dilemma
D)credo
E)war of attrition

Question 36

The town in which a large dog food company has its headquarters is referred to as

A)a community.
B)the company's constituency.
C)stockholders.
D)the company's labor force.
E)the company's social conscience.

Question 37

Tax reform legislation signed into law by President Trump in late 2017 included a new 21% excise tax on ________ for salaries over $1 million.

A)nonprofit employers
B)public company CEOs
C)small business employees
D)government employees
E)companies with overseas branches

Question 38

The ________ rule states that an ethical decision is one in which rewards and harms are distributed in a fair and impartial way.

A)justice
B)moral rights
C)utilitarian
D)practical
E)moral scruples

Question 39

When Bob calculates the yearly bonuses for his employees, he pays particular attention to the individual employee scores to ensure that they are based on performance and not favoritism. Which ethical rule is Bob following?

A)practical
B)moral scruples
C)utilitarian
D)justice
E)moral rights

Question 40

Under the ________ rule, an ethical decision is one that best maintains people's fundamental privileges.

A)justice
B)moral rights
C)utilitarian
D)practical
E)moral scruples

Question 41

________ ethics are the standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and individual rights.

A)Societal
B)Occupational
C)Individual
D)Organizational
E)Governmental

Question 42

Which country is known for being one of the most ethical countries in the world?

A)Brazil
B)the United States
C)Nigeria
D)Japan
E)New Zealand

Question 43

Bo gives a talk to his employees about standards that govern how members of their profession should conduct themselves. He is talking about ________ ethics.

A)societal
B)occupational
C)individual
D)organizational
E)governmental

Question 44

When all companies and their managers in a society behave in a socially responsible way, business increases, quality of life increases, and

A)a climate of caring will pervade.
B)lawlessness all but ceases to exist.
C)people look after their own interests.
D)small business starts increase.
E)inflation decreases.

Question 45

________ is the esteem or high repute that individuals or organizations gain when they behave ethically.

A)Trust
B)Reputation
C)Social responsibility
D)Moral standing
E)Emotional value

Question 46

It is the responsibility of the ________ to determine if a CEO has the experience and integrity needed to head a company and be entrusted with the capital and wealth of the organization.

A)chief financial officer
B)stockholders
C)employees
D)board of directors
E)ethics ombudsperson

Question 47

________ ethics are standards that determine how people view their responsibilities to others and how they should act in situations when their own self-interest is at stake.

A)Societal
B)Occupational
C)Individual
D)Organizational
E)Governmental

Question 48

The ________ is the idea that the pursuit of self-interest with no consideration for societal interests leads to disaster.

A)tragedy of the commons
B)ethical dilemma
C)moral dilemma
D)credo
E)concept of individual ethics

Question 49

Which person is most likely to act unethically?

A)Alaine, who has an ethical manager
B)Ronny, who is struggling financially and has a family to support
C)Morris, who works in a company with a code of ethics
D)Falulah, who is new to the job and is just learning the ropes
E)Nitro, who puts his coworkers' needs above his own

Question 50

________ ethics are the guiding practices and beliefs through which a particular firm and its managers view their responsibilities to stakeholders.

A)Societal
B)Occupational
C)Individual
D)Organizational
E)Governmental

Question 51

________ is a person's confidence and faith in another person's goodwill.

A)Trust
B)Reputation
C)Social responsibility
D)Moral standing
E)Emotional value

Question 52

After a lengthy investigation, Legrand lost his license to practice law on charges of accepting bribes. Most likely, Legrand violated his ________ ethics.

A)environmental
B)occupational
C)individual
D)organizational
E)governmental

Question 53

Gerald's Jewelry has a deep moral commitment to act responsibly in its sourcing of precious metals and gemstones. This is an example of ________ ethics.

A)societal
B)individual
C)organizational
D)occupational
E)governmental

Question 54

The influence of one's family, peers, and upbringing in general can affect a person's ________ ethics.

A)occupational
B)organizational
C)societal
D)business
E)individual

Question 55

Lana wasn't sure if her coworker Branson was correct when she said it was ok to take work home, but she had faith in Branson's ability to make good decisions, so she took the work home and hoped her boss wouldn't be mad. Lana was displaying

A)self-interest.
B)unethical behavior.
C)trust in Branson.
D)trust in her boss.
E)rule breaking.

Question 56

When faced with an ethical dilemma as a manager, Sanjay tries to reflect on his upbringing to decide between right and wrong. Sanjay is reflecting on ________ ethics.

A)societal
B)occupational
C)individual
D)organizational
E)religious

Question 57

The individual ethics of a company's ________ are especially important in shaping the organizational code of ethics.

A)employees
B)customers
C)community
D)founders
E)stockholders

Question 58

Wanda's doctor put her on a new medication because he gets a kickback from the pharmaceutical company for every prescription he writes, in spite of the fact that it isn't the best medication for Wanda. Her doctor violated his ________ ethics.

A)environmental
B)occupational
C)individual
D)organizational
E)governmental

Question 59

________ is your company views on its duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.

A)Social responsibility
B)Ethical performance
C)Stakeholder mandate
D)Legal scrutiny
E)Organizational ethics

Question 60

What is true of organizational ethics?

A)Employees are much more likely to act unethically when a credo exists.
B)Employees are more likely to act unethically when the company's top managers consistently endorse the ethical principles in its corporate credo.
C)Top managers play the least important role in determining a company's ethics.
D)The individual ethics of a company's founders and top managers are especially important in shaping the organization's code of ethics.
E)They are standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities.

Question 61

What tends to happen in countries where organizations are highly socially responsible?

A)Crime rates are high.
B)Unemployment is low.
C)Literacy rates are low.
D)There is less harmony among people.
E)Poverty is high.

Question 62

Managers at Carpets and Flooring prevented employees from selling the company shares in their pension funds while the managers sold millions of dollars' worth of their own Carpets and Flooring stock. This illustrates the ________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 63

Utilizing the ________ approach to social responsibility, the local recycling company actively embraces behaving in socially responsible ways.

A)proactive
B)accommodative
C)obstructionist
D)defensive
E)assertive

Question 64

David is trying to provide a visible means of support to develop an ethical culture in his company. He can do so by creating

A)an ethics ombudsperson position.
B)ethical beliefs that remain rigidly constant.
C)strict leadership rules for the top management.
D)a plan for minimum compensation benefits.
E)a strong human resources team.

Question 65

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n)________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 66

What approach to social responsibility is characterized by the highest level of social responsibility?

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 67

________ can provide guidance when organization members are uncertain about whether an action is ethical.

A)The communications manager
B)An ethics philosopher
C)The ethics ombudsperson
D)The personnel manager
E)The accommodative manager

Question 68

Which type of commitment to social responsibility is characterized by low levels of socially responsible behavior?

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)obligatory

Question 69

Seok's company tries to balance the interests of different stakeholders in relation to the claims of other stakeholders. Which approach to social responsibility is the organization implementing?

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 70

A company that expects its managers to behave ethically to the degree that they stay within the law, but no more, is acting with a(n)________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 71

A(n)________ is a manager responsible for communicating and teaching ethical standards to all employees and monitoring their conformity to those standards.

A)ethics director
B)ethics manager
C)ethics interpreter
D)ethics ombudsperson
E)stockholder

Question 72

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other stockholders. This illustrates the ________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 73

Managers at a well-known company sold their stock in advance of other stockholders because they knew that their company's performance was about to fall. This demonstrates the ________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)reactive

Question 74

The ________ has organizationwide authority. Hence, organization members in any department can communicate instances of unethical behavior by their managers or coworkers without fear of retribution.

A)manager
B)stakeholder
C)stockholder
D)nation
E)ethics ombudsperson

Question 75

The ________ approach to social responsibility is most likely to be taken by a typical large U.S. company.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 76

Managers are being socially responsible and showing support for their stakeholders when they

A)stop laying employees off.
B)move a factory to a new location if it is polluting the environment.
C)invest in countries that have poor human rights records.
D)decline to help countries develop an economic base if they have poor living standards.
E)allow employees to take time off when they need it.

Question 77

Your company sends out an annual questionnaire to learn about the needs of employees and community members and uses organizational resources to promote their interests. This company is using the ________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 78

The managers of Lehman Brothers, whose bankruptcy helped propel the 2008-2009 financial crisis, used loopholes in U.K. law to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition. This example illustrates the ________ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)obligatory

Question 79

Companies that use the ________ approach to social responsibility are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics testing; and the reduction of crime, illiteracy, and poverty.

A)accommodative
B)defensive
C)reactive
D)proactive
E)obstructionist

Question 80

According to the ________ approach to social responsibility, companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive