Deck 2: Social Responsibility and Managerial Ethics

Question 1

According to the concept of distributive justice,all employees should receive equal rewards and punishments.

Answer 1

False

Question 2

According to the universal approach to ethical decision making,if two courses of action have equal moral standing,managers should determine the more ethical course by considering the positive and negative consequences of each one.

Answer 2

False

Question 3

The efficiency perspective of social responsibility states that it is irresponsible to maximize shareholders' wealth because they are not the only ones responsible for a firm's existence.

Answer 3

False

Question 4

The greater the psychological and emotional involvement of participants in ethics training,the greater their retention of learning points will be.

Question 5

In the "outside-in" approach of the strategic corporate social responsibility perspective,managers look at social issues in general terms of the extent to which they are problematic.

Question 6

Accommodator companies obey the letter of the law but do not make changes that might restrict profits unless they are required to do so.

Question 7

The utilitarian approach to ethical decision making advocates making decisions based on moral principles rather than on the positive or negative consequences of an action.

Question 8

Having to make a choice between two competing but arguably valid options is known as an ethical dilemma.

Question 9

The Foreign Corrupt Practices Act was passed in 1977 in order to prevent foreign government officials from making payments to U.S.firms.

Question 10

Reactor firms tend to believe that they are obligated to a variety of stakeholders.

Question 11

From the perspective of social responsibility,shareholders are stakeholders.

Question 12

Ethnocentricity tends to hurt managerial effectiveness,especially in culturally diverse contexts.

Question 13

In the "inside-out" approach of the strategic corporate social responsibility perspective,managers can look inside the company at issues that are more rather than less important as a function of the company's strategy and business activities.

Question 14

According to Adam Smith,the best way to advance the well-being of society is to place resources in the hands of government officials and allow politicians to allocate scarce resources to satisfy the demands of society.

Question 15

As a group,whistleblowers tend to be disgruntled employees.

Question 16

Employees are unlikely to conform to a corporate code of ethics unless other actions taken by the organization reinforce the code.

Question 17

According to the utilitarian approach to ethical decision making,the most ethical course of action is the one that results in the greatest good for the greatest number of people.

Question 18

In the "outside-out" approach of the strategic corporate social responsibility perspective,managers can look outside the company at issues the company can influence.

Question 19

Moral intensity refers to the impact of ethics and morality on a group of people.

Question 20

Managerial ethics begin at the top of the organization.

Question 21

According to the ________ approach to ethical decision making,some things are just right or wrong,independent of their consequences.

A) universal
B) utilitarian
C) justice
D) moral rights

Question 22

________ is the degree to which people see an issue as an ethical one.

A) Ethnocentricity
B) Disparate impact
C) Moral intensity
D) Social consensus

Question 23

According to philosopher Immanuel Kant,________ form the basis of all rights.

A) individuality and happiness
B) freedom and autonomy
C) fairness and equitability
D) justice and truth

Question 24

An executive who justifies paying a bribe because it allows his company to provide the greatest good for the greatest number of people adheres to the ________ approach to ethical decision making.

A) justice
B) moral rights
C) universal
D) utilitarian

Question 25

At Pixel Inc,all promotions,pay raises,and bonuses are based on employees' attainment of their goals and the extent to which they help the organization reach its objectives.Managers are strictly instructed to disregard irrelevant criteria such as the employee's age,gender,race,and so on when allocating rewards.This is indicative of ________.

A) procedural justice
B) distributive justice
C) compensatory justice
D) interactional justice

Question 26

Which of the following is true regarding the utilitarian approach to ethical decision making?

A) It examines the moral standing of actions independent of their consequences.
B) The "goodness" or "badness" of an outcome is often subjective.
C) One should choose a course of action that can be applied to all people under all situations.
D) Culture and religion do not influence one's judgment of what is good or bad.

Question 27

________ is concerned with morality and standards of business conduct,especially among individuals.

A) Social consensus
B) Managerial ethics
C) Organizational behavior
D) Earned value management

Question 28

Which aspect of the justice approach to ethical decision making is concerned with the impartial administration of decision-making processes?

A) procuratory justice
B) distributive justice
C) procedural justice
D) restorative justice

Question 29

A(n)________ involves having to make a choice between two competing but arguably valid options.

A) cognitive bias
B) ethical lapse
C) fallacy
D) ethical dilemma

Question 30

The ________ approach to ethical decision making focuses on the equity of processes and outcomes.

A) universal
B) utilitarian
C) justice
D) moral rights

Question 31

________ is the view that your perspective is correct and the views of people in other cultures are inferior.

A) Ethnocentricity
B) Universality
C) Polycentricity
D) Regiocentricity

Question 32

Which of the following is in accordance with the utilitarian approach to ethical decision making?

A) Do onto others as you would have them do unto everyone, including yourself.
B) Choose the action that conforms with moral principles.
C) Try to make decisions that result in the greatest good.
D) Focus on the equity and process of outcomes.

Question 33

Pixel Inc has established a system to settle employee grievances.According to this system,aggrieved employees must first approach their immediate supervisors with their problems.If the employee considers the supervisor's decision unsatisfactory,he or she may approach the next person in the chain of command.If the grievance still remains unresolved,the matter may be referred to voluntary arbitration.This system is indicative of ________.

A) procedural justice
B) distributive justice
C) interactional justice
D) compensatory justice

Question 34

A(n)________ is a decision that is contrary to an individual's stated beliefs and policies of the company.

A) fallacy
B) cognitive bias
C) ethnocentric viewpoint
D) ethical lapse

Question 35

Mark heads his firm's international division in China and has been approached by local officials on several occasions to pay a bribe.After countless failed attempts,the officials are now threatening to shut down the facility if Mark doesn't pay up.Realizing that this would render thousands of employees jobless,Mark decides to pay the bribe.Mark adopted the ________ approach in arriving at this decision.

A) utilitarian
B) universal
C) moral rights
D) justice

Question 36

The ________ approach to ethical decision making focuses on consequences of an action.

A) moral rights
B) utilitarian
C) universal
D) justice

Question 37

Refer to the scenario above.Which of the following is similar to the given scenario?

A) As an owner of a retail store, Jeremy decides to cut off his supplier in order to switch to a different supplier with lower prices.
B) A forest officer allows a tribal community living in the forest to cut trees for personal use.
C) Albert, who runs a sports goods store, declines a consignment of shoes from a manufacturer after learning that working conditions at the factory were extremely poor.
D) Naomi, a designer in Georgia, refuses to pay for a damaged shipment of material that arrived via courier from India.

Question 38

Even if a manager does not intend to discriminate against a particular minority group,legal action can be brought against the firm if the minority group can prove ________.

A) temporal immediacy
B) disparate impact
C) compensatory justice
D) probability of effect

Question 39

According to the universal approach to ethical decision making,managers must first determine whether a course of action can apply to all people in all situations,then ask themselves whether ________.

A) the act has moral significance in the community
B) the costs and benefits of the act can be equitably distributed
C) the rewards of the act can be equitably distributed
D) they would want the same rule applied to themselves

Question 40

Which aspect of the justice approach to ethical decision making forms the basis of affirmative action plans?

A) compensatory justice
B) distributive justice
C) procedural justice
D) restorative justice

Question 41

Pixel Inc prohibits smoking in the workplace.According to company rules,any employee found smoking on the work premises will be fined.However,managers are lax in implementing this rule and employees are regularly seen smoking in the office corridors and cafeteria.Which of the following is true in this scenario?

A) The probability of effect is low.
B) The concentration of effect is high.
C) The magnitude of the consequence is high.
D) The temporal immediacy is high.

Question 42

Cigarette ads and smoking have not been completely outlawed in part because the ________ is not 100 percent.

A) probability of effect
B) anchoring effect
C) temporal immediacy
D) externality

Question 43

________ is the extent to which consequences are focused on a few individuals or dispersed across many.

A) Proximity
B) Probability of effect
C) Concentration of effect
D) Social consensus

Question 44

Which of the following is true regarding the efficiency perspective of social responsibility,according to Milton Friedman?

A) The welfare of the community is the firm's responsibility.
B) Managers who are owners must act in the best interests of society and stakeholders.
C) Managers should maximize profits for the shareholders in the business.
D) Firms have obligations not only to shareholders but also to society.

Question 45

________ involves the extent to which members of a society agree that an act is either good or bad.

A) Social consensus
B) Probability of effect
C) Concentration of effect
D) Social order

Question 46

________ is a function of the interval between the time the action occurs and the onset of its consequences.

A) Chronological order
B) Probability of effect
C) Proximity
D) Temporal immediacy

Question 47

From an efficiency perspective,when the manager of a business ________,the self-interests of the owner are best achieved by serving the interests of society.

A) is also its owner
B) plays a purely administrative role
C) has a strong concern for social welfare
D) is risk averse

Question 48

According to the principle of ________,the financial obligation corporations have to others is limited to the company and does not extend to its shareholders.

A) limited liability
B) distributive justice
C) limited interest
D) compensatory justice

Question 49

________ refers to an individual's physical and psychological closeness to the outcome of an action.

A) Concentration of effect
B) Proximity
C) Social consensus
D) Spatial intelligence

Question 50

A factory continues to dump its chemical waste into the local river in spite of government orders banning the dumping of industrial effluents in local water bodies.The company knows that the effects of the chemicals on the water will not be detected until several years later.This is an example of ________.

A) temporal immediacy
B) social consensus
C) concentration of effect
D) proximity

Question 51

Within the context of the efficiency perspective of social responsibility,externalities involve ________.

A) random consequences
B) marketplace interactions
C) unintended consequences
D) indirect acts of social responsibility

Question 52

The ________ perspective of social responsibility states that a manager's responsibility is to maximize profits for the owners of the business.

A) effector
B) effectiveness
C) efficiency
D) efficacy

Question 53

A major concern with the efficiency perspective is that corporations can impose indirect consequences that may not be completely understood or anticipated.In economic terms,such an unintended consequence is called a(n)________.

A) externality
B) ethical lapse
C) oligopoly
D) random error

Question 54

The moral intensity of an issue rises and falls depending on how likely people think the consequences are.This is known as ________.

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

Question 55

According to the social responsibility perspective,managers should ________.

A) maximize returns to shareholders
B) not consider the concerns of stakeholders beyond the firm's shareholders
C) balance returns to shareholders against legitimate concerns of stakeholders
D) minimize returns to shareholders and maximize returns to stakeholders

Question 56

According to a recent survey by BizMag.com,more than 60 percent of all employees believe that pilfering office supplies for personal use is acceptable.Which of the following statements is true in this scenario?

A) The magnitude of the consequence is high.
B) The concentration of effect is high.
C) There is a high degree of social consensus.
D) The probability of effect is high.

Question 57

A(n)________ is an individual or group that has an interest in and is affected by the actions of an organization.

A) social consensus
B) cohort
C) stakeholder
D) accommodator

Question 58

The social responsibility perspective argues that ________.

A) the basis of all rights stem from freedom and autonomy
B) firms are accountable only to shareholders
C) society grants existence to firms
D) costs and benefits should be equitably distributed

Question 59

The ________ associated with the outcome of a given action is the anticipated level of impact,independent of whether the consequences are positive or negative.

A) probability of effect
B) magnitude of the consequences
C) concentration of effect
D) temporal immediacy

Question 60

Pixel Inc is planning to upgrade its technology infrastructure.However,this move is likely to render more than half of its workforce redundant.Which of the following statements is true in this scenario?

A) The magnitude of the consequence is high.
B) The concentration of effect is low.
C) There is a high degree of social consensus.
D) The probability of effect is low.

Question 61

Which of the following best explains the inside-out approach to strategic corporate social responsibility?

A) Managers can look inside the company at issues that are more rather than less important as a function of the company's strategy and business activities.
B) Managers can look outside the company at issues the company can influence.
C) Managers look at social issues in general terms of the extent to which they are problematic.
D) Managers look for legal loopholes in conducting their business.

Question 62

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.________ make changes only when legally compelled to do so.

A) Accommodators and reactors
B) Anticipators and reactors
C) Defenders and accommodators
D) Reactors and anticipators

Question 63

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.Reactor firms focus on ________ profits.

A) protecting
B) obtaining
C) maximizing
D) sharing

Question 64

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.________ tend to believe that they are obligated to a variety of stakeholders not to harm them independent of laws or pressures that restrict or regulate their actions.

A) Defenders
B) Anticipators
C) Reactors
D) Accommodators

Question 65

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.Defenders ________.

A) actively seek legal loopholes in conducting their business
B) abide by the letter of the law
C) make changes when they feel pressurized by constituencies
D) anticipate harmful consequences independent of pressures and laws

Question 66

Which of the following is an example of an anticipator firm?

A) The Hardley Accounting Firm changes its accounting practices after the introduction of the Sarbanes-Oxley Act in 2002.
B) A biotech company fights government efforts that will restrict its ability to import raw materials.
C) A petrochemical company takes preventive measures to protect employees from harmful chemicals within the workplace even before anyone suffers negative side effects.
D) Ramen's retail store decides to stop using plastic bags after customers threatened to boycott its products.

Question 67

As an employee of an international aid organization,Cynthia is often required to travel to countries where natural disasters have recently occurred.During a visit to a city destroyed by an earthquake,Cynthia learns that her organization has hired child laborers to help rebuild the ruined city.She quits the organization and brings this information to the notice of the public.Cynthia is a(n)________.

A) connoisseur
B) analyst
C) whistleblower
D) defender

Question 68

When companies reward employees who report valid claims of corporate unethical conduct,what are they clearly encouraging?

A) moral intensity
B) pay for performance
C) compensatory justice
D) whistleblowing

Question 69

Which of the following statements is true regarding whistleblowing?

A) Whistleblowers report illegal acts for personal fame.
B) Whistleblowers tend not to be disgruntled employees.
C) Laws in the United States neither protect nor reward whistleblowing.
D) Whistleblowers rarely use external channels to blow the whistle.

Question 70

Actions that benefit shareholders but harm the other stakeholders would be viewed as ________ from the efficiency perspective but ________ from the social responsibility perspective.

A) managerially responsible; socially irresponsible
B) socially responsible; managerially irresponsible
C) socially irresponsible; managerially responsible
D) managerially irresponsible; socially responsible

Question 71

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.Companies that are ________ tend to fight efforts that they see as resulting in greater restriction and regulation of their ability to maximize profits.

A) accommodators
B) defenders
C) reactors
D) anticipators

Question 72

A(n)________ is an employee who discloses illegal or unethical conduct on the part of others in the organization.

A) connoisseur
B) critic
C) whistleblower
D) analyst

Question 73

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.________ tend to obey the letter of the law but do not make changes that might restrict profits unless they are required to.

A) Reactors
B) Anticipators
C) Defenders
D) Accommodators

Question 74

How can a company communicate ethical standards?

A) by disseminating a one-time memo
B) by repeatedly communicating the code in memos and company newsletters
C) by conducting one-to-one meetings with the manager and the employee
D) by letting employees conduct themselves in ways they think appropriate and correcting them, if need be

Question 75

When managers look at social issues in general terms of the extent to which they are problematic they are following the ________ approach to strategic corporate social responsibility.

A) outside-in
B) inside-out
C) inside-in
D) outside-out

Question 76

A(n)________ is a formal settlement that outlines types of behavior that are and are not acceptable.

A) mission statement
B) code of ethical conduct
C) internal control
D) performance report

Question 77

When managers can look outside the company at issues the company can influence,they are following the ________ approach to strategic corporate social responsibility.

A) inside-out
B) outside-in
C) outside-out
D) inside-in

Question 78

Which of the following is an example of a reactor firm?

A) A biotech company fights government efforts that will restrict its ability to import raw materials.
B) A petrochemical company takes preventive measures to protect employees from harmful chemicals within the workplace even before anyone suffers negative side effects.
C) The Hardley Accounting Firm changes its accounting practices after the introduction of the Sarbanes-Oxley Act in 2002.
D) Ramen's retail store decides to stop using plastic bags after customers threatened to boycott its products.

Question 79

Which of the following is an example of an accommodator firm?

A) The Hardley Accounting Firm changes its accounting practices after the introduction of the Sarbanes-Oxley Act in 2002.
B) Ramen's retail store decides to stop using plastic bags after customers threatened to boycott its products.
C) A biotech company fights government efforts that will restrict its ability to import raw materials.
D) A petrochemical company takes preventive measures to protect employees from harmful chemicals within the workplace even before anyone suffers negative side effects.

Question 80

Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways.________ firms make changes when they feel that pressure from constituencies is sufficient such that nonresponsiveness could have a negative economic impact on the firm.

A) Accommodator
B) Anticipator
C) Reactor
D) Defender