Deck 5: Ethics, corporate Responsibility, and Sustainability

Question 1

Excessive emphasis on long-term revenues over shorter-term considerations is one of the factors conducive to unethical behavior.

Answer 1

False
Explanation: Many factors create a climate conducive to unethical behavior,including excessive emphasis on short-term revenues over longer-term considerations.

Question 2

According to virtue ethics,moral individuals can transcend society's rules by applying personal virtues.

Answer 2

True
Explanation: Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right.Society's rules provide a moral minimum,and then moral individuals can transcend rules by applying their personal virtues such as faith,honesty,and integrity.

Question 3

The Sarbanes-Oxley Act,passed in 2002,includes provisions for senior managers to personally sign off on financial results.

Answer 3

True
Explanation: Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor confidence.The law requires companies to have more independent board directors,to adhere strictly to accounting rules,and to have senior managers personally sign off on financial results.

Question 4

Astroturfing is considered a difficult but ethical practice.

Question 5

Universalism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

Question 6

Utilitarianism defines acceptable behaviors as those that maximize benefits for the individual.

Question 7

Utilitarianism directly seeks the greatest good for the greatest number of people.

Question 8

Business ethics comprises the moral principles and standards that guide behavior in the world of business.

Question 9

Compliance-based ethics programs are concerned with instilling in people a personal responsibility for ethical behavior.

Question 10

An ethical issue is a situation,problem,or opportunity in which an individual is obligated to choose among several actions that must be evaluated as legal or illegal on the basis of law.

Question 11

Individuals can be ethical leaders if they have a strong moral character,regardless of what issues actually get most of their attention.

Question 12

With an integrity-based ethics program,people govern themselves through a set of guiding principles that they embrace.

Question 13

Most people have unconscious biases that favor themselves and their own group.

Question 14

Ethics is the system of rules that governs the ordering of values.

Question 15

Two basic ethical ideals underpin the Caux Principles: fairness and equality.

Question 16

People in the preconventional stage of Kohlberg's model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society,family,or peers.

Question 17

Relativism is a philosophy that bases ethical behavior on the opinion and behaviors of relevant other people.

Question 18

Moral philosophy refers to the principles,rules,and values people use in deciding what is right or wrong.

Question 19

The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

Question 20

The ethical system known as egoism is similar to Adam Smith's concept of the invisible hand in business.

Question 21

Philanthropic contributions are considered part of a firm's ethical responsibilities in the pyramid of global corporate social responsibility and performance.

Question 22

Moral awareness means knowing what actions are morally defensible.

Question 23

Profit maximization and corporate social responsibility necessarily lead to opposing corporate policies.

Question 24

Being a whistleblower is typically a straightforward and painless process.

Question 25

Life-cycle analysis quantifies the total use of resources and the releases into the air,water,and land.

Question 26

_____ refers to the principles,rules,and values people use in deciding what is right or wrong.

A) Ethical issue
B) Social capital
C) Emotional intelligence
D) Moral philosophy
E) Legal positivism

Question 27

In general,the accumulated evidence indicates that social responsibility is associated with better long-term benefits.

Question 28

A good process for ethical decision making begins with considering the legal requirements.

Question 29

_____ is the system of rules that governs the ordering of values.

A) Ethnocentrism
B) Ethics
C) Dynamics
D) Legitimacy
E) Dialectics

Question 30

Economic responsibility forms the base of the pyramid of global corporate social responsibility and performance.

Question 31

Sustainable growth refers to growth in profitability that sustains the wealth of shareholders.

Question 32

The goal of ecocentric management is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.

Question 33

Beth is a marketing agent.Most of her colleagues fill out inaccurate time records in the office log so that they are eligible for extra pay.Beth can either do the same thing or log in real,accurate details.This situation of Beth is an example of _____.

A) a moral rights debate
B) an ethical issue
C) kyosei
D) an avoidance situation
E) greenwashing

Question 34

Greenwashing refers to misleading marketing claims about the environmentally friendly nature of a product.

Question 35

Sustainability in business is considered compatible with the natural ecosystems that generate and preserve life.

Question 36

_____ is the ethical system stating that all people should uphold certain values that society needs to function.

A) Relativism
B) Egoism
C) Universalism
D) Ethnocentrism
E) Utilitarianism

Question 37

Persuasion is one of the five higher goals in transcendent education that balances self-interest with responsibility to others.

Question 38

According to Milton Friedman's famous dictum,the social responsibility of business is to increase profits.

Question 39

Which of the following statements about unethical corporate behavior is true?

A) When corporations behave unethically,only the top executives suffer.
B) When corporations behave unethically,only the shareholders suffer.
C) When corporations behave unethically,the rank-and-file employees suffer the most.
D) When corporations behave badly,both top executives and rank-and-file employees are shielded from the fallout.
E) There is no evidence that corporations today ever behave unethically.

Question 40

A transcendent education involves balancing self-interest with responsibility to others.

Question 41

The _____ ethical framework encourages employees to consider whether they would like to see their decisions displayed on the front page of the newspaper.

A) Kohlberg
B) sunshine
C) Sarbanes-Oxley
D) egoism
E) utilitarian

Question 42

Which of the following should be done for constructing an effective ethics code?

A) Keep it complex,formal,and rigid so that employees realize how serious it is.
B) Make it as catchy and clever as possible.
C) Involve only the legal department and top executives in writing the statement.
D) Let the employees construct the ethics code according to their ideologies.
E) Focus on real-life situations that employees can relate to.

Question 43

_____ considers acceptable behavior to be that which maximizes benefits for the individual.

A) Egoism
B) Ethnocentrism
C) Relativism
D) Universalism
E) Utilitarianism

Question 44

Which of the following statements about the Sarbanes-Oxley Act is true?

A) It was passed in 1992.
B) It requires strict adherence to accounting rules.
C) It gives senior managers power to not sign off on financial results.
D) It is intended to maintain truth in advertising.
E) It requires whistleblowers to be fired.

Question 45

The Caux Principles are based on two ethical ideals:

A) fairness and equality.
B) self-fulfillment and sharing.
C) unity and respect.
D) kyosei and human dignity.
E) honesty and happiness.

Question 46

Cassandra's behavior is typically guided by what she thinks would be acceptable to her parents.According to Kohlberg,which of the following stages of moral development does Cassandra's behavior exemplify?

A) Utilitarian stage
B) Conventional stage
C) Principled stage
D) Preconventional stage
E) Conclusive stage

Question 47

According to Kohlberg's model of cognitive moral development,people in which of the following stages tend to make decisions based on rewards and punishments and immediate self-interest?

A) Principled stage
B) Conventional stage
C) Righteous stage
D) Preconventional stage
E) Unconventional stage

Question 48

The management of an organization follows the ideology that if they work keeping in mind the company's own economic self-interest,the total wealth of the society will be maximized.Which of the following best describes the ethical system used by the organization?

A) Ethnocentrism
B) Relativism
C) Egoism
D) Universalism
E) Utilitarianism

Question 49

A person who sees beyond authority,laws,and norms and follows his own self-chosen ethical principles is most likely to be in the _____ stage of Kohlberg's model of cognitive moral development.

A) utilitarian
B) conventional
C) principled
D) preconventional
E) intermediate

Question 50

An ethics program that is designed by corporate counsel to detect,prevent,and punish legal violations is called a _____ ethics program.

A) life-cycle-based
B) compliance-based
C) competency-based
D) relativism-based
E) responsibility-based

Question 51

_____ is a philosophy that bases ethical behavior on the opinions and behaviors of relevant other people.

A) Egoism
B) Virtue ethics
C) Relativism
D) Universalism
E) Utilitarianism

Question 52

_____ acknowledges the existence of different ethical viewpoints and uses norms as guidelines.

A) Virtue ethics
B) Relativism
C) Universalism
D) Utilitarianism
E) Egoism

Question 53

Utilitarianism is centered around the idea that:

A) ethical ideas depend on kyosei and human dignity.
B) an ethical system should define acceptable behavior as that which maximizes consequences for the individual.
C) an ethical system with no rules will help bring out the best of people.
D) ethical behavior should be based on the opinions and behaviors of relevant other people.
E) the greatest good for the greatest number should be the overriding concern of decision makers.

Question 54

Which of the following is one of Kohlberg's stages of cognitive moral development?

A) Unconventional
B) Emotional
C) Relative
D) Principled
E) Developed

Question 55

The _____ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

A) corporate social responsibility
B) ethical climate
C) ecocentric management
D) legal responsibility
E) moral obligation

Question 56

Bina downloaded music from the Internet on her office computer.As all of her colleagues did it,she thought it was fine to do so.In this scenario,which of the following ethical systems has Bina used to rationalize her decision?

A) Egoism
B) Virtue ethics
C) Relativism
D) Universalism
E) Utilitarianism

Question 57

Which of the following best describes an ethical perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right?

A) Business ethics
B) Virtue ethics
C) Relativism
D) Utilitarianism
E) Egoism

Question 58

Shannon is a marketing agent who determines his work behavior solely on whether he thinks he can do them without receiving immediate punishment from his boss.According to Kohlberg,which of the following stages of moral development does Shannon's behavior exemplify?

A) Principled stage
B) Conventional stage
C) Righteous stage
D) Preconventional stage
E) Unconventional stage

Question 59

Ashleigh works as a receptionist for a law firm.Some of the lawyers have asked her to tell callers that they are in court when in fact they are playing golf.She wanted to quit the job because she hated to lie to people and believes that all people should uphold certain values that society needs to function.Which of the following best describes the ethical system used by Ashleigh to make the decision?

A) Egoism
B) Ethnocentrism
C) Relativism
D) Universalism
E) Utilitarianism

Question 60

Which of the following is a danger sign that organizations may be allowing or even encouraging unethical behavior?

A) Excessive emphasis over long-term consideration over short-term revenues
B) Failure to establish a written code of ethics
C) An informal corporate structure
D) Flexible timings that allow employees to choose their hours of work
E) Multiple levels of supervision and monitoring

Question 61

Corporate social responsibility is the _____.

A) ethical system stating that all people should uphold certain values that society needs to function
B) obligation toward society assumed by business
C) system that defines acceptable behavior as that which maximizes consequences for the individual
D) ideology that the greatest good for the greatest number should be the overriding concern of decision makers
E) maximization of shareholder wealth

Question 62

Within the pyramid of global corporate social responsibility and performance,doing what is required by global stakeholders is categorized as a(n)_____ responsibility.

A) economic
B) legal
C) financial
D) philanthropic
E) ethical

Question 63

Having the strength and persistence to act in accordance with one's ethics despite the challenges is referred to as moral _____.

A) awareness
B) judgment
C) certainty
D) action
E) character

Question 64

Which of the following is true of whistleblowing?

A) The road for whistleblowers is easy and painless.
B) Whistleblowers are often encouraged by their company to go public.
C) Whistleblowers are seldom given undesirable assignments.
D) Many whistleblowers suffer consequences such as being ostracized.
E) The Sarbanes-Oxley Act prohibits whistleblowing.

Question 65

Making ethical decisions takes moral _____ which helps realize that an issue has ethical implications.

A) certainty
B) actionability
C) awareness
D) judgment
E) character

Question 66

Which of the following plays a role in the moral awareness involved in identifying an act as unethical,the moral judgment to fully consider the repercussions,and the moral character to take the ethical action?

A) Courage
B) Legitimacy
C) Intelligence
D) Compliance
E) Knowledge

Question 67

Which of the following responsibilities lies at the base of the pyramid of global corporate social responsibility and performance?

A) Legal
B) Economic
C) Moral
D) Ethical
E) Philanthropic

Question 68

According to John Rawls,only a person ignorant of his own identity can make a truly ethical decision.This thought process is based on _____.

A) ethical shielding
B) the veil of understanding
C) the veil of ignorance
D) ethical certainty
E) ethical ignorance

Question 69

_____ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

A) Economic
B) Legal
C) Financial
D) Philanthropic
E) Ethical

Question 70

Compliance-based ethics programs are typically designed by _____.

A) corporate counsel
B) employees
C) top executives
D) stockholders / owners
E) focus groups of customers

Question 71

Compliance-based ethics programs:

A) are company mechanisms designed to instill in people a personal responsibility for ethical behavior.
B) are designed by corporate counsel to prevent,detect,and punish legal violations.
C) define ethical behavior as that which maximizes consequences for the individual.
D) define ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
E) are designed by the employees to define what ethical standards they should follow.

Question 72

Integrity-based ethics programs involve _____.

A) stated ethics,rules,and policies
B) corporate social responsiveness
C) a set of guiding principles
D) monitoring and punishment
E) discretionary social responsibility

Question 73

Which of the following levels of corporate social responsibility of business includes meeting societal expectations that are not written as law?

A) Economic
B) Legal
C) Social
D) Philanthropic
E) Ethical

Question 74

Which of the following is most likely to be the last step in an ideal ethical decision-making process?

A) Defining the complete moral problem
B) Developing an ethical framework
C) Determining the legal requirements
D) Understanding all moral standards
E) Proposing a moral solution

Question 75

Telling others,inside or outside the organization,about wrongdoing is called _____.

A) ethical shadowing
B) whistleblowing
C) egoism
D) ethical interference
E) moral consequences

Question 76

FoodieZ,a fast food manufacturer,changed the packaging of its sandwiches to minimize waste.Additionally,it uses recycled paper to bag its products.FoodieZ states that these actions make the earth a "better place to eat." In this scenario,FoodieZ is participating in _____.

A) deregulation
B) corporate entrepreneurship
C) maximizing customer actualization
D) corporate social responsibility
E) corporate wealth enhancement

Question 77

Making ethical decisions takes moral _____,which involves knowing what actions are morally defensible.

A) awareness
B) judgment
C) character
D) action
E) certainty

Question 78

Going beyond legal compliance with ADA standards and training people to understand that individuals with disabilities also have valued abilities is an example of a(n)_____ ethics program.

A) compliance-based
B) integrity-based
C) egoism-based
D) competency-based
E) utilitarianism-based

Question 79

The process for ethical decision making begins with:

A) defining the complete moral problem.
B) developing an ethical framework and determining the economic outcomes.
C) considering the legal requirements and evaluating the legal duties.
D) understanding all moral standards and recognizing all moral impacts.
E) proposing a convincing moral solution.

Question 80

To behave ethically,an individual will require:

A) social capital.
B) competitive intelligence.
C) creative thinking.
D) moral character.
E) technical skills.