Deck 4: Social Responsibility and Ethics

Question 1

One of the key difficulties managers seem to demonstrate when considering ethics is the ability to distinguish between corporate ethics and corporate principles.

Answer 1

False

Question 2

Basically, the invisible-hand perspective of corporate social responsibility states that corporations can be socially responsible by making profits and obeying the law.

Answer 2

True

Question 3

A broad view of social responsibility outlines four categories of responsibilities of management. These are economic, legal, discretionary and social.

Answer 3

False

Question 4

Generous charitable donations help perceptions of companies even when they are behaving illegally.

Question 5

Providing an opportunity to evaluate the extent to which an organisation is meeting its social objectives, is an advantage derived from conducting a social scan.

Question 6

Issues management and social scanning are similar in that they are informal and unsystematic.

Question 7

An amoral management style is preferable to other management styles as it is not immoral and precious time is not wasted on ancillary issues.

Question 8

Haigh and Jones (2006) identified six sets of factors that might influence corporate social responsibly. They include pressures from competitors, regulatory pressures from both government and non-government organisations and internal pressures on employees.

Question 9

According to Jones (1991), the moral intensity of an ethical issue is critical to the decision-making process because it influences the identification of an issue as an ethical problem.

Question 10

Which of the following has been developed over history and is not one of the three major perspectives of corporate social responsibility?

A) The invisible-hand perspective
B) The hand-of-management perspective
C) The hand-of-government perspective
D) The 'don't bite the hand that feeds you' perspective

Question 11

According to Friedman, why are activities of charitable firms not considered to be socially responsible?

A) Stockholders cannot make decisions about disposal of funds.
B) Charitable activities do not ensure that companies have high profit margins.
C) Business executives are not able to allocate resources.
D) Stockholders become disadvantaged.

Question 12

The invisible-hand perspective of corporate social responsibility is traced back to the writings of Adam Smith. Its most noted supporter in recent times has been:

A) Robert Wood.
B) Milton Friedman.
C) James Plumlee.
D) Cornelius Vanderbilt.

Question 13

Which is not one of the areas which the hand-of-government perspective argues should be regulated by government?

A) Minimum wage rates
B) Product safety
C) Minimum prices
D) Pollution control

Question 14

When compared to other perspectives, the hand-of-management perspective of corporate social responsibility is:

A) inclusive of social responsibility.
B) the oldest.
C) based on legal requirements.
D) against the 'nanny-state' approach.

Question 15

Several arguments are raised supporting organisations' social responsibility and the hand-of-management perspective. They are the anti-freeloader argument, the capacity argument, the enlightened self-interest argument and the:

A) discretionary argument.
B) ethical argument.
C) guiding corporation's argument.
D) iron law of responsibility argument.

Question 16

What do the economic and legal responsibilities of management have in common?

A) Making a profit and obeying the law
B) Being pro-active in the market
C) Obeying the law and ensuring little attention is paid to charitable organisations
D) Downsizing and obeying the law

Question 17

A company providing a large number of portable electrical generators at no cost to victims of a hurricane would be practising activities best described as:

A) economic responsibilities.
B) legal responsibilities.
C) ethical responsibilities.
D) discretionary responsibilities.

Question 18

Laws and regulations specify employer responsibilities on matters relating to:

A) equal employment opportunity .
B) pensions and benefits.
C) health and safety .
D) All of the given answers are correct

Question 19

Two areas of current concern regarding a business's responsibilities to the customer stakeholder group are health and safety issues regarding products and issues concerning:

A) plant closures.
B) quality of products.
C) hidden interest charges.
D) limited warranties.

Question 20

While the community often wants business aid, companies need various forms of community support which include:

A) sufficient schools and recreation facilities.
B) police and fire services.
C) adequate transport.
D) All of the given answers are correct

Question 21

A number of studies have been conducted to ascertain whether there is a relationship between a company's social responsibility efforts and its financial success. These found that, at least, in the short term:

A) there was no relationship at all.
B) there was a slight relationship.
C) there was no clear relationship.
D) there was a strong relationship.

Question 22

O'Toole, in his studies on corporate social responsiveness, has identified companies that have been successful financially and have high scores on social responsibility. He calls such companies:

A) vanguard corporations.
B) redstone companies.
C) atlas performers.
D) minuteman performers.

Question 23

Two processes are usually essential in developing social responsiveness: establishing methods of monitoring social demands and expectations in the external environment, and developing:

A) competitive products and/or services.
B) a reputation for consistency.
C) internal mechanisms to handle social responses.
D) an up-to-date management information system.

Question 24

The development of organisational decision processes where managers anticipate, respond to and manage social responsibility areas refers to:

A) organisational social responsiveness.
B) community responsiveness.
C) managerial social response.
D) general social response.

Question 25

Social forecasting, social audits and opinion surveys are all major means of performing one of the two essential processes in the development of organisational social responsiveness, namely:

A) screening requests for corporate giving.
B) determining what the competition is doing.
C) monitoring social demands and expectations in the external environment.
D) developing internal social response mechanisms such as committees and departments.

Question 26

There are a number of means by which an organisation can try to assess the demands and expectations for social responsiveness in its external environment. Which of the following is not one of them?

A) Social scanning
B) Issues management
C) Permanent committees
D) Social audits

Question 27

When an organisation periodically reviews the programs it is involved in (within the area of social responsibility) to see if the programs are on target and worthwhile, it is conducting:

A) opinion surveys.
B) issues management.
C) social audits.
D) social scanning.

Question 28

Social audits are:

A) a routine part of the financial audit.
B) required by the Securities Commission.
C) usually difficult to do.
D) All of the given answers are correct

Question 29

After careful analysis, issues management, as it applies to social responsiveness, results in the preparation of an organisational response to _______________ of emerging social issues of particular relevance to the organisation:

A) a couple
B) a relatively small number
C) a quite lengthy list
D) hundreds

Question 30

When a company uses a permanent department as a social response mechanism, the name of that department is most likely to be:

A) the public affairs department.
B) the personnel department.
C) the public relations department.
D) the legal department.

Question 31

To demonstrate social responsibility to all stakeholders, many organisations have used a combination of approaches to coordinate social performance. Combinations include:

A) division-level committees only.
B) a permanent committee comprised of a combination of employees from regional and corporate . community affairs committees of the organisation's sub-branches.
C) key executives hear the claims and make a decision.
D) a public affairs department together with the supervisor.

Question 32

White-collar crime today costs __________ than street crime.

A) considerably less
B) a little less
C) a little more
D) considerably more

Question 33

Recent estimates place the losses due to white-collar crime at ____________ the losses due to street crime.

A) one-tenth
B) one-half
C) double
D) ten times

Question 34

According to Carroll's classifications, managers who see the law as the ethical guide, who give lower-level managers free rein and who might be well-intended but do not consider their impact on others are likely to be ____________.

A) amoral.
B) immoral
C) unethical
D) moral

Question 35

Trying to determine some commonsense guidelines for making ethical managerial decisions has been the subject of the work done by O'Toole. Which one of the following is not one of his guidelines?

A) Obey the law
B) Show respect for people
C) Stick to the Golden Rule
D) Save the bad news

Question 36

Which of the following guidelines proposed by O'Toole for making ethical managerial decisions is similar to a well-known ethical rule in medicine?

A) Save the bad news
B) Always act when you have responsibility
C) Practice participation, not paternalism
D) Above all, do no harm

Question 37

Kohlberg (1969) identified six stages of moral development. Which answer below is not one of the stages that Kohlberg had identified?

A) Punishment orientation.
B) Authority orientation.
C) Business orientation.
D) Ethical principle orientation.

Question 38

The temporal immediacy of a moral issue refers to:

A) the probability that the act will take place immediately.
B) the length of time before the consequences of the act in question occur.
C) the feeling of nearness the moral agent has.
D) the sum of harms or benefits done to victims.

Question 39

A value is a conception that defines what a decision maker considers as acceptable. The practical mode is:

A) a drive to stay with something that has worked in the past.
B) a position of making strong judgements with regard to the right or wrong of a decision.
C) the extent to which a moral act affects a society.
D) a value system focusing on resources.

Question 40

Several external environmental factors have been identified that sometimes encourage unethical behaviour. Which of the following is not one of them?

A) An environment which has limited opportunities for success
B) A competitive environment
C) A high level of delegation of authority
D) A high degree of dependency on other organisations for success

Question 41

Several internal environmental factors have been identified that sometimes encourage unethical behaviour. Which of the following is not one of them?

A) Strong encouragement of innovation
B) Pressure for high performance
C) Poor internal financial performance
D) High levels of morale and work satisfaction

Question 42

Which level of manager, according to a report cited by Bartol, usually feels less pressure to commit unethical acts?

A) Lower
B) Middle
C) Top
D) None of the given answers is correct

Question 43

There are some mechanisms that can help managers create an ethical climate in an organisation, including:

A) increasing awareness of diversity
B) top-management commitment
C) codes of ethics
D) All of the given answers are correct

Question 44

Which is not a suggested mechanism to help managers create an ethical climate in an organisation?

A) Setting up an ethics committee
B) Employing only people who seem ethical
C) Having a code of ethics
D) Training staff in ethical conduct

Question 45

What are the three historical views of corporate social responsibility and three arguments used to support CSR?

Question 46

Who benefits from managers accepting the social responsibilities of management?

Question 47

What characteristics do you expect from 'vanguard' companies? Explain your answer with examples from a local company.

Question 48

Five means of assessing social demands and expectations related to organisations are provided in the text. What are the five terms and how does each one work in practice?

Question 49

Name the alternative internal social response mechanisms which are available to organisations? Describe how each mechanism works.

Question 50

Business ethical problems put the ethical standards of managers under a spotlight. What are the three major types of managerial ethics? Give examples to illustrate your answer.

Question 51

Locate a set of ethical guidelines for managers by using the internet or library databases. How did the ethical guidelines compare and contrast with those suggested in the text?

Question 52

What factors were identified by Haigh & Jones (2006) as influencing CSR?

Question 53

In what ways do the following factors influence the ethical decision-making of managers: moral development stages, organisational culture, the moral intensity of ethical issues, intra-organisational factors and individual values?

Question 54

What mechanisms can managers use to protect themselves in ethical situations and foster ethical organisational behaviour?