Deck 4: Ethics and Social Responsibility

Question 1

People at the postconventional level of moral development make moral decisions based on selfish reasons.

Answer 1

False

Question 2

The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.

Answer 2

False

Question 3

A company using a reactive strategy to respond to demands for social responsibility will do less than society expects.

Answer 3

True

Question 4

Companies will be considered unethical if they do not perform their discretionary responsibilities.

Question 5

All adults reach the postconventional stage of morality.

Question 6

Stakeholders are people or groups with an interest in a company's actions.

Question 7

The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible.

Question 8

Probability of effect is the chance that something will happen and then result in harm to others.

Question 9

The shareholder model holds that management's most important responsibility is the firm's long-term survival (not just maximizing profits). According to the shareholder model, long-term survival is achieved by satisfying the interests of multiple corporate stakeholders (not just shareholders).

Question 10

Under the U.S. Sentencing Commission Guidelines, a culpability score is a way of assigning blame to a company.

Question 11

Concentration of effect is how much an act affects the average person.

Question 12

The concept of magnitude of consequences is the total harm or benefit derived from an ethical decision.

Question 13

According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.

Question 14

All four areas of social responsibility for companies (economic, legal, ethical, and discretionary) are equally important to a company's overall level of social responsibility.

Question 15

Under the U.S. Sentencing Commission Guidelines, companies without compliance programs can pay fines many times larger than companies with established compliance programs.

Question 16

In order to ensure that a company's ethics code will encourage ethical decision making and behavior, companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company. The second is to develop practical ethical standards and procedures specific to the company's line of business.

Question 17

There is general agreement regarding what is socially responsible corporate behavior.

Question 18

The two types of integrity testing currently used by employers are overt integrity tests and personality-based integrity tests.

Question 19

The media would be an example of a secondary stakeholder group for an organization.

Question 20

Proximity of effect is the time between an act and the consequences the act produces.

Question 21

Heyworth Industries formally closed one of its factories in May. The workers were informed of this only one month earlier, in April. Which of the following factors most probably caused a high ethical intensity?

A)Low concentration of effect
B)Magnitude of influence
C)Temporal immediacy
D)Probability of response
E)Dispersion of effect

Question 22

The U.S. Sentencing Commission Guidelines for Organizations impose smaller fines on companies that _____.

A)have never before violated ethics principles
B)voluntarily disclose illegal activities to federal authorities
C)have already established an affirmative action program
D)were unaware of the unethical behavior of employees
E)are not concerned with the ethical behavior of employees

Question 23

When addressing issues of _____, managers are more aware of the impact their decisions have on others, are more likely to view the decision as a moral decision, and are more likely to worry about doing the right thing.

A)low social consensus
B)low temporal immediacy
C)low proximity of effect
D)​high ethical intensity
E)high improbability of effect

Question 24

If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company but does so, then the catalog's sentence would be determined by _____.

A)the Internet Compliancy Act
B)specific Supreme Court rulings
C)the Federal Trade Act
D)the Cellar­Kefauver Act of 1995
E)the U.S.Sentencing Commission Guidelines

Question 25

Which of the following statements best explains the "carrot-and-stick" approach of the U.S Sentencing Commission Guidelines?

A)Nonprofits are exempted from fines.
B)Quick­responding reactive organizations are rewarded.
C)Lower fines are imposed on companies that take proactive steps to prevent unethical behavior.
D)Companies are asked to emphasize just one area of ethical behavior.
E)Organizations accused of unethical behavior are excused if the management was unaware.​

Question 26

Which of the following terms describes the degree of concern people have about an ethical issue?

A)Ethical intensity
B)Social consensus
C)Temporal immediacy
D)Magnitude of consequences
E)Ethical valence

Question 27

Doug has a low-paying job at a telecommunications company. Every day, Doug puts a headset, a stapler, or something similar in his lunch box and takes it home with him. Doug sees nothing wrong with his behavior since he feels he is being paid less than he should. In terms of Kohlberg's stages of moral development, which level is Doug operating at?

A)Conventional
B)Universal
C)Preconventional
D)Postconventional
E)Internalization

Question 28

Delayed product delivery is less of an issue when compared to delivering a faulty product which can be harmful. This is because delivering a harmful product has a ______.

A)high magnitude of consequences
B)low magnitude of influence
C)high location immediacy
D)low probability of response
E)high dissolution of effect

Question 29

The _____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.

A)U.S.Sentencing Commission Guidelines
B)World Trade Organization
C)U.S.Department of Labor
D)U.S.Equal Employment Opportunity Commission
E)Federal Trade Commission

Question 30

Which of the following statements about ethics is true?

A)Acting ethically is always easier than any other form of action.
B)The ethics of an organization has little effect on the overall performance and popularity of that organization.
C)Ethics can be specifically defined, like other laws.
D)If an act is legal, it must by definition be ethical.
E)When people believe their work environment is ethical, they are six times more likely to stay with that company.

Question 31

According to the U.S. Sentencing Commission Guidelines for Organizations, which of the following steps should be followed right after the standards and procedures for the compliance program have been established?

A)Employees should be discouraged to report violations.
B)Upper­level managers should be assigned to be in charge of the program.
C)All employees should be given decision­making authority.
D)Flexibility should be allowed in the enforcement of standards and procedures.
E)Employees who repeatedly violate standards should be given informal warnings.

Question 32

People at the _____ of moral development use internalized ethical principles to solve ethical dilemmas.

A)conventional level
B)temporal level
C)postconventional level
D)proximal level
E)preconventional level

Question 33

According to Kohlberg's model of moral development, people at the _____ make decisions that conform to societal expectations.

A)unconventional level
B)preconventional level
C)conventional level
D)postconventional level
E)amoral level

Question 34

According to the U.S. Sentencing Commission Guidelines for Organizations, which of the following is a method used to determine the level of an offense?

A)Examining the personal codes of ethics of top managers of offending companies
B)Examining the loss incurred by the victims
C)Determining how much competitive advantage was created by the offense
D)Looking at industry standards
E)Studying the organization's code of ethics

Question 35

_____ is the social, psychological, cultural, or physical distance of a decision maker from those affected by his or her decisions.

A)Ethical variance
B)Probability of effect
C)Proximity of effect
D)Norm compliance
E)Situational morality

Question 36

Which of these factors is taken into account while determining ethical intensity?

A)competition perception
B)peer acceptance
C)intent of the manager
D)probability of synergy
E)temporal immediacy

Question 37

The three stages of moral development identified by Kohlberg are ____.

A)the amoral level, the moral level, and the post­ moral level
B)the preconventional level, the conventional level, and the postconventional level
C)the introductory stage, the growth stage, and the maturity stage
D)the individual stage, the organizational stage, and the industry­wide stage
E)the unconventional level, the conformity level, and the nonconformity level

Question 38

According to Kohlberg's model of moral development, people at the _____ make decisions that are based on selfish reasons.

A)amoral level
B)preconventional level
C)conventional level
D)postconventional level
E)unconventional level

Question 39

Red Spark Enterprises, a multinational electronics manufacturer, recently grabbed the attention of millions worldwide after it was involved in a major money-laundering scam. This scam had adversely affected the careers of more than two hundred employees of Red Spark without them being involved in the scam. In other words, the plan had a:

A)low probability of effect.
B)low impact proximity.
C)high concentration of synergy.
D)high magnitude of consequences.
E)high dissolution of effect.

Question 40

Ethical intensity depends on all of the following EXCEPT ____.

A)temporal immediacy
B)probability of effect
C)proximity of effect
D)individual commitment
E)concentration of effect

Question 41

Elliot's Kitchen, a small diner chain in Indianapolis, expanded by purchasing four existing stores. One of the stores was located in a lower- class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had a_____ to provide a neighborhood diner to that community.

A)distributive obligation
B)legal stakeholder duty
C)fiscal responsibility
D)cybernetic feasibility
E)social responsibility

Question 42

Harry is a senior manager at a leading software development firm. For a while now, he has been aware that his company has been engaging in several serious financial crimes. When he decided that he had seen enough, he took matters into his own hands and reported everything to higher authorities. In this scenario, Harry is a(n) _____.

A)whistleblower
B)ombudsman
C)secondary stakeholder
D)covert stakeholder
E)secondary shareholder

Question 43

Why is it often difficult for an employee to assume the role of whistleblower?

A)Because managers have such broad spans of management
B)Because of organizational decentralization
C)Because of employee empowerment
D)​Because of the lack of company action on their complaints
E)Because of the U.S.Sentencing Commission Guidelines

Question 44

A(n) _____ is a test that estimates employee honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviors.

A)situational­based integrity test
B)personality­based integrity test
C)behavioral integrity test
D)framed integrity test
E)overt integrity test

Question 45

The last step in the basic model of ethical decision making is to _____.

A)monitor the results
B)determine benchmarks
C)act on the situation
D)make a choice
E)select an ethical leader

Question 46

A police officer who strongly believes in justice and does not accept bribes from others is operating at the _____ level of moral development.

A)amoral
B)preconventional
C)unconventional
D)postconventional
E)conventional

Question 47

_____ integrity tests indirectly estimate employee honesty by measuring psychological traits.

A)Covert
B)Overt
C)Psychographic­based
D)​Personality­based
E)Attitudinal

Question 48

Which of the following is an objective of ethics training?

A)To assign upper­level managers to be in charge of operations
B)To discourage employees from reporting violations
C)To bring in flexibility in ethical standards
D)To achieve credibility with employees
E)To delegate decision­making authorities to all employees

Question 49

According to _____, the only social responsibility that organizations have is to satisfy their owners, that is, company shareholders.

A)Lawrence Kohlberg
B)LaRue Hosmer
C)Milton Friedman
D)Mary Parker Follett
E)Max Weber

Question 50

A person who reports others' ethics violations to management or legal authorities is termed a(n) _____.

A)whistleblower
B)ombudsman
C)secondary stakeholder
D)covert stakeholder
E)secondary shareholder

Question 51

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

A)personal examples set by company management
B)official approval of a company's ethics code by government regulators
C)fair but consistent punishment of violators
D)a reporting system that encourages whistleblowers to report potential ethics violations
E)top management's active involvement in an ethics training program

Question 52

During an ethical decision-making process, which of these questions must be asked in order to identify a problem?

A)"Who are the people that have been hurt?"
B)"What are the factors that make this an ethical problem?"
C)"Who could be helped?"
D)"What is my intention in making this particular decision?"
E)"What could have prevented it?"

Question 53

Which of the following statements best defines social responsibility?

A)It is a business' obligation to pursue policies, make decisions, and take actions that benefit society.
B)It is a business tactic used to gather society trends.
C)It is what companies are legally obliged to do to protect their external environments.
D)It is a business' responsibility to its shareholders.
E)It is a business' responsibility follow societal mores.

Question 54

According to the _____ model, the only social responsibility that businesses have is to maximize profits.

A)accounting
B)economic
C)fiscal
D)stakeholder
E)​shareholder

Question 55

Which of the following is an important step in establishing an ethical climate in an organization?

A)Discouraging employees from reporting ethical violations
B)Eliminating grapevine communication in the organization
C)Allowing flexibility in ethical standards
D)​The top managers behaving ethically
E)Limiting bottom­up communication in the organization

Question 56

In an attempt to spread awareness about climate change and global warming, Sparkle Fruit Juice decided to conduct awareness programs in its community. This move is an example of _____.

A)social consensus
B)social munificence
C)social responsibility
D)shareholder responsibility
E)social proximity

Question 57

When Rubberstamp Productions, previously a small-time production house, increased in size, the first thing its CEO did was to establish a set of guidelines in place which detailed all the principles, standards, and procedures to be followed within the company and in the company's line of business. In other words, a(n) _____ was established.

A)statement of qualification
B)statement of incorporation
C)mission statement of principle
D)statement of utilitarianism
E)code of ethics

Question 58

Managers can use integrity tests to _____.

A)select and hire ethical employees
B)force the use of the principle of distributive justice when dealing with customers
C)differentiate primary and secondary stakeholders
D)determine which principle of ethical decision making is most appropriate to the situation
E)assess the ethical intensity of an issue

Question 59

In the basic model of ethical decision making, after the problem has been identified, the next step is to _____.

A)diagnose the situation
B)identify the constituents
C)determine alternative solutions
D)analyze your options
E)create a forecast of what is to be accomplished

Question 60

StaticX Inc. was thinking about discontinuing the health and fitness programs offered to its employees. This was because the company wanted to cut its costs. However, the company dropped the decision because most of its employees were benefiting from the programs and discontinuing them would have very adverse effects on the employees. Which principle best describes the decision made by StaticX Inc.?

A)Principle of long­term self­interest
B)Principle of utilitarian benefits
C)Principle of individual rights
D)Principle of distributive justice
E)Principle of government requirement

Question 61

Which of the following is NOT an example of a stakeholder group that an organization must satisfy to assure long-term survival?

A)investors
B)customers
C)the media
D)employees
E)governments

Question 62

When the media in Viretia informed the public that Ellie's Foods products manufactured in Viretia contained a high level of certain cancer-causing pesticides, the Viretian government immediately ordered Ellie's to stop production. The Viretian government served as a(n) ____.

A)secondary shareholder
B)primary stakeholder
C)integrated stakeholder
D)tertiary stakeholder
E)overt stakeholder

Question 63

_____ are any groups that can influence or be influenced by the company and can affect public perceptions about its socially responsible behavior.

A)Preliminary stakeholders
B)Secondary stakeholders
C)Covert stakeholders
D)Conventional stakeholders

Question 64

According to the _____ model, management's most important responsibility is long-term survival.

A)economic
B)stakeholder
C)societal
D)social welfare
E)shareholder

Question 65

Who among the following are the secondary stakeholders of an organization?

A)major investors
B)customers
C)employees
D)trade associations
E)governments

Question 66

A primary stakeholder of an organization would be _____.

A)the media
B)trade associations
C)special interests groups
D)customers
E)advocacy groups

Question 67

Groups such as shareholders, employees, customers, suppliers, governments, and local communities are examples of _____ stakeholders.

A)primary
B)secondary
C)functional
D)conventional
E)proactive

Question 68

Various persons or groups with a legitimate interest in a company's actions are called _____.

A)stakeholders
B)whistleblowers
C)self­dealers
D)boundary spanners
E)gatekeepers

Question 69

Which of the following stakeholder groups do not engage in regular transactions with the company?

A)raw material suppliers
B)customers
C)employees
D)governments
E)special interest groups

Question 70

In the context of corporate social responsibility, which of the following statements would Milton Friedman agree to?

A)Organizations can act effectively as moral agents for all company shareholders.
B)The time, money, and attention diverted to social causes undermine market efficiency.
C)It is socially responsible for companies to divert their efforts to social causes.
D)The marketplace will ultimately determine the importance of social causes.
E)Management's most important responsibility is the firm's long­term survival.

Question 71

The two general categories of stakeholders are _____ stakeholders.

A)primary and secondary
B)reactive and proactive
C)business and nonbusiness
D)relevant and irrelevant
E)pioneering and selective