Deck 5: Social Responsibility and Managerial Ethics

Question 1

The most outspoken advocate of the classical view of organizational social responsibility is Milton Friedman.

Answer 1

True

Question 2

A business has fulfilled its social obligation when it meets economic, legal, and ethical obligations.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Socially responsible businesses tend to have less-secure long-run profits.

Question 5

In the Arab region, companies are not widely acknowledged for their social responsibilities or green
management actions.

Question 6

The difference between an organization's social obligation and social responsiveness is the legal aspect.

Question 7

A structural design that continuously reminds employees of what is ethical is less likely to encourage ethical behavior.

Question 8

Though the outcomes are not perfectly measured, the majority of research studies show a positive relationship between corporate social involvement and economic performance.

Question 9

The classical view of organizational social responsibility is that management's only social responsibility is to maximize profits.

Question 10

Managers in countries like Syria and Jordan, do not embrace corporate social responsibility.

Question 11

Employees may be pressured to do "whatever is necessary" to look good on the outcome variables when they are evaluated only on the results.

Question 12

People proceed through the six stages of moral development in lockstep fashion.

Question 13

Possession of resources is an argument for social responsibility.

Question 14

The market approach to going green is when organizations respond to multiple demands of stakeholders.

Question 15

A company that displays a superior ability to effectively manage environmental and social factors may be named as one of the 100 most sustainable corporations in the world.

Question 16

The activist approach to going green is when an organization looks for ways to respect and preserve the earth and its natural resources.

Question 17

In the socioeconomic view of organizational social responsibility, maximizing profits is not a company's only priority.

Question 18

The term "values" refers to the rules and principles that define right and wrong conduct.

Question 19

In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general.

Question 20

The term "shades of green" refers to the level of environmental responsibility that a company has.

Question 21

Fair trade proponents are examples of whistleblowers.

Question 22

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

A) Charles Darwin
B) Milton Friedman
C) Carnegie Milton
D) Milton Freeman

Question 23

Linking religion to CSR adoptions is very common among Arab managers.

Question 24

The best thing managers can do to provide ethical leadership is be a good role model.

Question 25

Individuals and groups affected by an organization's actions are ________.

A) beneficiaries
B) consumers
C) interested parties
D) stockholders

Question 26

A company that meets pollution control standards as dictated by law and follows the law in hiring, promotion, and pay ________.

A) is meeting its social responsiveness and nothing more because society demands these actions
B) is meeting its social obligation and nothing more because laws mandate these actions
C) is not even meeting its social obligation, though there are laws in some of these areas of social responsibility
D) is meeting its social obligation and more because it is trying to be a good citizen

Question 27

According to the classical view, corporate managers should ________.

A) maximize value to shareholders
B) emphasize charitable donations
C) maximize value to stockholders
D) represent society whenever possible

Question 28

The Organization for Economic Co-Operation and Development (OECD) developed a global code of ethics.

Question 29

Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists.

Question 30

"Wasta" is not unique to the Arab world as it exists under different names in different countries.

Question 31

Values-based management is based on the close link between an organization's decisions and activities and its impact on the natural environment.

Question 32

Proponents of the socioeconomic view of social responsibility believe that business organizations are ________.

A) not just merely economic institutions
B) to be leaders in social responsibility
C) not to be involved in social responsibility, but should maximize profits for stakeholders
D) just merely economic institutions

Question 33

"Guanxi" is a Japanese term which is similar to "wasta" in Arab contexts.

Question 34

A leading proponent of the classical view argues that anytime managers decide on their own to spend their organization's resources for the "social good," they are ________.

A) contributing social benefits in the name of goodwill
B) helping make society a better place for everyone to live
C) adding to the costs of doing business
D) following governmental regulations

Question 35

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

A) maximize adherence to the laws for stockholders
B) minimize adherence to the laws for stockholders
C) maximize organizational profits for stockholders
D) maximize organizational profits for stakeholders

Question 36

The socioeconomic view is that management's social responsibility goes beyond making profits to include ________.

A) protecting and improving society's welfare
B) placing members of society on welfare
C) minimizing the welfare of society in exchange for profits
D) protecting and improving the organization's profits

Question 37

A company's shared values act as guideposts for managerial decisions and actions.

Question 38

Sharing corporate values is an approach to managing in which managers establish, promote, and practice an organization's shared values.

Question 39

The Global Compact identifies human rights principles for doing business globally that includes making certain that corporations are not complicit in human rights abuses.

Question 40

Which of the following is associated with the classical view of social responsibility?

A) stockholder financial return
B) concern for social welfare
C) voluntary activities
D) economist Robert Reich

Question 41

The belief that businesses that help solve difficult social problems create a desirable community and attract and keep skilled employees is known as which argument for social responsibility?

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

Question 42

The belief that businesses are being socially responsible when they attend only to economic interests is known as which argument against a firm being socially responsible?

A) dilution of purpose
B) too much power
C) costs
D) violation of profit maximization

Question 43

Applying social criteria to an investment decision refers to ________.

A) socioeconomic view
B) social responsiveness
C) social screening
D) social responsibility

Question 44

Social responsiveness refers to the capacity of a firm to adapt to changing ________.

A) organizational managers
B) societal leaders
C) societal conditions
D) organizational conditions

Question 45

Under the concept of social obligation, the organization ________.

A) does the minimum required by law
B) fulfills its obligation to the stakeholders, which makes it fulfill the law, too
C) does what it can to meet the law, and a little bit more for stakeholders
D) fulfills its obligation to the law and its stakeholders

Question 46

The belief that a firm's pursuit of social goals would give them too much power is known as what argument in opposition to a firm being socially responsible?

A) costs
B) lack of broad public support
C) too much power
D) lack of skills

Question 47

When a firm advertises that it only uses recycled paper products, it is ________.

A) meeting social responsibilities
B) being socially responsive
C) paying attention to the bottom line
D) meeting its social obligation

Question 48

The belief that businesses have the financial, technical, and managerial resources to support needed public and charitable projects is known as which argument?

A) possession of resources
B) ethical obligations
C) public expectations
D) public image

Question 49

Employee relations, philanthropy, pricing, resource conservation, product quality and safety, and doing business in countries that violate human rights are some obvious examples of ________.

A) social responsibility issues that employees must confront while at work
B) areas of social responsibility that influence managers, not employees
C) social responsibility ethics that managers must decide on a daily basis
D) decisions that managers face that have a social responsibility dimension

Question 50

The aspect that differentiates social responsibility from other similar concepts is that it ________.

A) adds a moral imperative
B) adds a legal imperative
C) considers social norms
D) adds an ethical imperative

Question 51

The belief that businesses should be responsible because such actions are right for their own sake is known as which argument for social responsibility?

A) discouragement of further government regulation
B) public expectation
C) ethical obligation
D) public image

Question 52

________ provides a way for individual investors to support socially responsible companies.

A) A socially responsible investment fund
B) The stock exchange
C) A bond
D) Going green

Question 53

Which argument for social responsibility puts forth the belief that an imbalance between the large amount of power held by firms and their responsibility is harmful to the public good?

A) ethical obligation
B) balance of responsibility and power
C) public expectation
D) public image

Question 54

Which argument for social responsibility puts forth the belief that by becoming socially responsible businesses can expect to have less government regulation?

A) stockholder interests
B) public image
C) public expectations
D) discouragement of further government regulation

Question 55

The belief that business leaders should not direct social policy because there is no direct line of social accountability to the public is known as what argument against a firm being socially responsible?

A) too much power
B) costs
C) lack of accountability
D) dilution of purpose

Question 56

The belief that the costs of social activity are passed on as higher prices to consumers is known as which argument against a firm being socially responsible?

A) costs
B) violation of profit maximization
C) lack of skills
D) dilution of purpose

Question 57

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

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

Question 58

One should be cautious in the interpretation, but a summary of more than a dozen studies analyzing the relationship between organizational social responsibility and economic performance provides what conclusion?

A) There is a positive relationship between corporate social involvement and economic performance.
B) Being socially responsible causes good economic performance.
C) Good economic performance allows firms to be socially responsible.
D) Corporate social involvement tends to devalue stock prices in the long run.

Question 59

There is ________ to say that a company's socially responsible actions significantly hurt its long-term economic performance.

A) not any evidence
B) a lot of evidence
C) mounting evidence
D) little evidence

Question 60

________ is defined as a business firm's obligation, beyond that required by law and economics, to pursue long-term goals that are good for society.

A) Social responsibility
B) Values-based management
C) Social obligation
D) Social screening

Question 61

Which of the following approaches toward environmental issues exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility?

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

Question 62

Freedom of association and the effective recognition of the right to collective bargaining are principles for doing business globally in the area of ________.

A) the environment
B) human rights
C) labor
D) anticorruption

Question 63

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

A) Conflict tolerance is related to unethical behavior.
B) A strong culture will support high ethical standards.
C) A culture that is high in control tends to encourage unethical behavior.
D) Low conflict tolerance leads to ethical behavior.

Question 64

With the stakeholder approach of dealing with environmental issues, the organization chooses to respond to ________.

A) the demands made by governmental stakeholders
B) multiple demands made by social activists
C) the demands made by the strongest stakeholders
D) multiple demands made by stakeholders

Question 65

A personality measure of a person's convictions is ________.

A) locus of control
B) social desirability
C) moral development
D) ego strength

Question 66

Issue intensity, as an issue that affects ethical behavior, is described as ________.

A) the cultural strength of the organization
B) the level of control and influence one has over the event
C) the characteristics of the ethical issue itself
D) the organizational structure

Question 67

A manager who believes that "she worked hard and met the productivity goals despite bad weather" is displaying what individual characteristic?

A) Internal locus of control
B) Strong self-image
C) Low impression management
D) High moral development

Question 68

To shape employees' ethical behavior, managers should understand that ________.

A) ethical judgement is unrelated to a person's upbringing
B) people typically use only one approach to ethical decision-making
C) people's judgement about right and wrong differ
D) all employees reach the highest stage in moral development

Question 69

________ is a personality attribute that measures the degree to which people believe they control their own fate.

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

Question 70

An organization's values reflect ________.

A) their profit goals
B) what it stands for and what it believes in
C) management
D) the board of directors' values

Question 71

Reasoning at the ________ level of moral development indicates that moral values reside in maintaining the conventional order and the expectations of others.

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

Question 72

Which of the following is not one of the six determinants that are relevant in deciding issue intensity?

A) What is the length of time between the act in question and its expected consequences?
B) What is the probability that your act will be discovered?
C) How great a harm (or benefit) is done to victims (or beneficiaries) of the ethical act in question?
D) How much consensus is there that the act is evil (or good)?

Question 73

Which of the following is a basic definition of ethics?

A) moral guidelines for behavior
B) Principles or beliefs that define right and wrong conduct
C) rules for acknowledging the spirit of the law
D) principles for legal and moral development

Question 74

Companies that work on green management and CSR are awarded by what well known program in the
Arab region?

A) CSR Summit Awards program
B) Green management Awards program
C) Global 100 list
D) Environmental Awards program

Question 75

________ is an approach to managing in which managers establish, promote, and practice what an organization stands for and believes in.

A) Cause-related marketing
B) Belief management
C) Ethical marketing
D) Values-based management

Question 76

Which of the following is not an approach organizations can take with respect to environmental issues?

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

Question 77

Which of the following organizational structural characteristics would most likely result in managerial ethical behavior?

A) Formal rules
B) Performance appraisal systems focused on outcomes
C) Mixed messages from authority figures
D) Few job descriptions

Question 78

The recognition of the close link between an organization's decisions and activities and its impact on the natural environment is referred to as ________.

A) shared corporate values
B) social responsiveness
C) the greening of management
D) corporate social responsibility

Question 79

The ________ approach to environmental issues is when organizations respond to environmental preferences of their customers.

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

Question 80

Values shared among the organizational members can serve as ________.

A) a guidepost for managerial decisions and actions
B) a guidepost for managerial decisions to invest in new technology
C) a reason to follow federal and state environmental laws
D) a way to shape managerial decisions to invest in economic conditions