Deck 3: Managing Ethics and Diversity

Question 1

All stakeholders benefit in the long run from companies making the right choices.

Answer 1

True
Explanation: When making business decisions, managers must consider the claims of all stakeholders. To help themselves and employees make ethical decisions and behave in ways that benefit their stakeholders; managers can use four ethical rules to analyze the effects of their business decisions on stakeholders: the utilitarian, moral rights, justice, and practical rules. These are useful guidelines that help managers decide on the appropriate way to behave in situations where it is necessary to balance a company's self-interest and the interests of its stakeholders. If all companies make the right choices, all stakeholders will benefit in the long run.

Question 2

Laws and ethics are fixed principles that do not change over time.

Answer 2

False
Explanation: In studying the relationship between ethics and law, it is important to understand that neither laws nor ethics are fixed principles that do not change over time. Ethical beliefs change as time passes; and as they do so, laws change to reflect the changing ethical beliefs of a society.

Question 3

Not being illegal does not make behavior ethical.

Answer 3

True
Explanation: Not being illegal does not make behavior ethical; such behavior is clearly unethical.

Question 4

Under the justice rule,managers should determine fair rules and procedures for distributing outcomes to stakeholders.

Question 5

The "practical rule" ensures that managers are taking into account the interests of all stakeholders.

Question 6

From a moral rights perspective,managers should compare alternative courses of action on the basis of how each will affect the rights of each stakeholder group.

Question 7

An ethical dilemma does not arise when a person has to choose between two different courses of action,knowing that whichever course he/she chooses will harm one person or group even while it may benefit another.

Question 8

Under the utilitarian rule,an ethical decision is one that best maintains and protects the fundamental rights and privileges of the people affected by it.

Question 9

Customers are often regarded as the most important stakeholder group.

Question 10

Stakeholders supply a company with its productive resources.

Question 11

Under the moral rights rule,an ethical decision is one that distributes benefits and harms among people and groups in a fair,equitable,or impartial way.

Question 12

The SEC's goal is to turn many actions that were previously classified as only unethical into illegal behavior in the near future.

Question 13

The local communities in which an organization operates are generally not considered to be true stakeholders of the organization.

Question 14

"An ethical decision is one that a typical person in a society would think is acceptable" is a statement that reflects the justice rule.

Question 15

Suppliers expect to receive quality products at agreed-upon prices.

Question 16

Customers are stakeholders of an organization,but managers are not.

Question 17

Typically,in a capitalist society,the interests of employees are placed above the interests of shareholders.

Question 18

Under the moral rights rule,decisions protect the rights of all stakeholders under any circumstances.

Question 19

"Moral scruples" are thoughts and feelings that tell a person what is right or wrong.

Question 20

The pursuit of self-interest is the most important foundation upon which a society can operate.

Question 21

Research suggests that women are better than men in motivating others,communicating,and listening.

Question 22

Federal guidelines suggest that employers make reasonable accommodations for employees' religious practices.

Question 23

According to the federal Glass Ceiling Commission Report,African-Americans have the hardest time being promoted.

Question 24

The increasing racial and ethnic diversity of the workforce and the population as a whole underscores the importance of effectively managing diversity.

Question 25

Federal law prohibits discrimination based on sexual orientation.

Question 26

In the disseminator role,managers support diversity initiatives in the wider community and speak to diverse groups to interest them in career opportunities.

Question 27

A society's ethics are derived exclusively from the written values and norms of society that address how people should interact with one another.

Question 28

The invisible barrier within an organization that prevents women from being promoted to top management positions is called the glass ceiling.

Question 29

The term "diversity" refers to differences in gender and age,but not to those in sexual orientation.

Question 30

An organization's code of ethics is shaped by the ethics of the top managers of the organization.

Question 31

Effectively managing diversity can increase worker satisfaction but does not increase organizational effectiveness.

Question 32

The Family Medical and Leave Act requires employers to provide 12 weeks of paid leave for medical and family reasons.

Question 33

The EEO law that first prohibited discrimination against persons with disabilities was Title VII of the Civil Rights Act of 1964.

Question 34

Ethics officers are also known as ethics ombudsmen.

Question 35

A slight bias toward a particular group can lead to very large differences between groups over time.

Question 36

Professional ethics are standards that govern how members of a profession make decisions when the way in which they should behave is clear-cut.

Question 37

Diversity within the organization can be a source of competitive advantage to the organization.

Question 38

Managers can promote the effective management of diversity through the performance of interpersonal and decisional roles,but not through informational roles.

Question 39

Managers in a resource allocator role commit resources to diverse groups to interest them in career opportunities.

Question 40

The ADA does not cover employees with AIDS from being discriminated against in the workplace.

Question 41

An important factor that managers need to keep in mind is that employees who go along with unwanted sexual attention in the workplace cannot be considered sexual harassment victims.

Question 42

Which of the following is usually NOT considered to be a stakeholder of an organization?

A) Community
B) Society
C) Customers
D) Government
E) Distributors

Question 43

An ethical dilemma is a situation in which a person has to decide if he/she should act in a way that:

A) fosters his/her own self-interest to favor another's self-interest.
B) is the right thing to do, even though doing so might go against his/her own self-interest.
C) does not go against anyone's self-interest.
D) may help another person and favor his/her own self-interest.
E) favors another's self-interest and therefore helps him/her.

Question 44

Which of the following is NOT an ethical rule that managers can use to analyze the effects of their business decisions on stakeholders?

A) Justice
B) Moral rights
C) Utilitarian
D) Practical
E) Existentialism

Question 45

Employees who are similar in their level of skill,performance,or responsibility should receive similar pay; allocation of outcomes should not be based on differences such as gender,race,or religion.This is an example of which rule of ethical decision making?

A) Justice rule
B) Moral rights rule
C) Utilitarian rule
D) Practical rule
E) Existential rule

Question 46

Thoughts and feelings that tell a person what is right or wrong,accurately defines:

A) moral scruples.
B) ethical dilemmas.
C) laws.
D) norms.
E) emotions.

Question 47

"Do unto others as you would have them do unto you" is a(n)_____ principle that managers should use to decide which rights to uphold.

A) justice
B) utilitarian
C) moral rights
D) existentialism
E) practical

Question 48

According to which of the following rules is an ethical decision one that best maintains people's fundamental privileges?

A) Justice
B) Moral rights
C) Utilitarian
D) Practical
E) Existentialism

Question 49

Sexual harassment that creates a hostile work environment is more subtle than quid pro quo sexual harassment.

Question 50

It was ethical and legal to acquire and possess slaves in ancient Rome and Greece.Today,however,slavery is considered both unethical and illegal.This implies that:

A) ethics and laws can be fixed or flexible principles depending on the situation.
B) ethics are always fixed but law is always flexible.
C) neither laws nor ethics are fixed principles.
D) ethics are always flexible but law is always fixed.
E) both ethics and laws are fixed principles.

Question 51

Which of the following statement is true of ethics and law?

A) Both ethics and law are fixed principles.
B) Ethics are always fixed, but law is always flexible.
C) Ethics are always flexible, but law is always fixed.
D) Neither ethics nor laws are fixed principles.
E) Both ethics and law can be fixed or flexible according to the situation.

Question 52

_____ are the stakeholder group with the most responsibility for deciding the goals of the organization.

A) Stockholders
B) Customers
C) Managers
D) Working-level employees
E) Consultants

Question 53

_____ are often regarded as the most critical stakeholder group.

A) Stockholders
B) Managers
C) Employees
D) Customers
E) Suppliers

Question 54

Important issues concerning how and when payments are made or product quality and safety specifications are governed by the contracts a company signs with its:

A) customers.
B) managers.
C) employees.
D) suppliers and distributors.
E) stockholders.

Question 55

Effective management of diversity is inversely proportional to profitability of the organization.

Question 56

A manager telling a lewd joke to another manager would be an example of quid pro quo sexual harassment.

Question 57

According to which of the following rules is an ethical decision one that distributes rewards and harms in a fair way?

A) Justice rule
B) Moral rights rule
C) Utilitarian rule
D) Practical rule
E) Existential rule

Question 58

Stockholders are interested in the way that a company operates because they:

A) use the company's products.
B) believe in being ethical.
C) want to maximize the return on their investment.
D) want to take all risks.
E) like to be in control.

Question 59

One managerial implication of the justice model is that managers should base their decisions on:

A) whatever stockholders want because they own the company.
B) what provides the maximum benefit to most stakeholders.
C) whatever promotes a fair distribution of outcomes to stakeholders.
D) arbitrary factors.
E) the organization's culture.

Question 60

The utilitarian rule states that an ethical decision:

A) best protects the rights of people affected.
B) produces the greatest good for the greatest number of people.
C) distributes benefits and harms in a fair way.
D) is one that can be communicated with no reluctance.
E) is relevant to financial effectiveness of the organization.

Question 61

Which of the following Equal Employment Opportunity (EEO)laws prohibits discrimination in employment decisions on the basis of race,religion,sex,color,or national origin and covers a wide range of employment decisions,including hiring,firing,pay,promotion,and working conditions?

A) Age Discrimination in Employment Act
B) Title VII of the 1964 Civil Rights Act
C) Equal Pay Act
D) Americans with Disabilities Act
E) Family and Medical Leave Act

Question 62

Which of the following is true about capabilities/disabilities?

A) A large number of employees abuse the ADA by seeking unnecessary accommodations for disabilities that do not exist.
B) The Americans with Disabilities Act of 1980 requires that employers make reasonable accommodations to enable people with disabilities to effectively perform their jobs.
C) Accommodations enabling students who may not be able to see, to perform up to their capabilities, are partially covered under the ADA.
D) The ADEA protects employees with AIDS from being discriminated against in the workplace.
E) The passage of the ADA does not appear to have increased employment rates significantly for those with disabilities.

Question 63

Why is it so important that managers,and people in general,should act ethically and temper their pursuit of self-interest by considering the effects of their actions on others?

A) Because giving excessive importance to oneself with no consideration of societal interests leads to disaster for each individual and for the whole society because scarce resources are destroyed.
B) Because ethical issues are seldom clear-cut since the rights, self-interests, goals, and incentives of different stakeholders often conflict.
C) Because a manager has no reluctance about communicating an ethical decision to people outside the company since the typical person in a society would think it is acceptable.
D) Because if all companies make the right choices, all stakeholders will benefit in the long run.
E) Because a company affects the prosperity of a society and a nation and, to the degree that a company is involved in global trade, all the countries it operates in and thus the prosperity of the global economy.

Question 64

The _____ rule is that an ethical decision is one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think it is acceptable.

A) justice
B) moral rights
C) utilitarian
D) practical
E) existential

Question 65

_____ ethics are standards that govern how members of a particular community deal with each other in matters involving issues such as fairness,justice,poverty,and the rights of the individual.

A) Fundamental
B) Professional
C) Individual
D) Organizational
E) Societal

Question 66

_____ ethics are standards that govern how members of an organization,managers or workers,make decisions when the way in which they should behave is not clear-cut.

A) Professional
B) Individual
C) Societal
D) Organizational
E) Fundamental

Question 67

Which of the following includes paternity leaves?

A) Equal Pay Act
B) Age Discrimination in Employment Act
C) Pregnancy Discrimination Act
D) Family and Medical Leave Act
E) Americans with Disabilities Act

Question 68

A(n)_____ is responsible for communicating ethical standards to all employees,for designing systems to monitor employees' conformity to those standards,and for teaching managers and nonmanagerial employees at all levels of the organization how to respond to ethical dilemmas appropriately.

A) ethics compliance officer
B) regulatory agency
C) whistleblower
D) ethics ombudsman
E) code of ethics

Question 69

_____ is dissimilarities among people due to age,gender,race,ethnicity,religion,sexual orientation,socioeconomic background,education,experience,physical appearance,capabilities/disabilities,and any other characteristic that is used to distinguish between people.

A) Flexibility
B) Solidarity
C) Universality
D) Abstrusity
E) Diversity

Question 70

Under the practical rule,answering "yes" to all of the following questions would make the decision ethical EXCEPT:

A) "Would my family members and friends approve of this decision?"
B) "Will anyone find out I made the decision?"
C) "Am I willing to see the decision communicated to all people and groups affected by it?"
D) "Does the decision fall within the accepted values and standards that typically apply in business today?"
E) "Am I willing to see the decision communicated by having it reported on television?"

Question 71

Which of the following can be defined as the esteem or standing that individuals or organizations gain when they behave ethically?

A) Trust
B) Reputation
C) Ethics
D) Moral scruples
E) Effectiveness

Question 72

Which of the following refers to the invisible barriers that prevent minorities and women from being promoted to top corporate positions?

A) Glass labyrinth
B) Flight ceiling
C) Glass cliff
D) Glass ceiling
E) Glass wall

Question 73

Which of the following results due to differences in personalities,values,and attitudes?

A) Societal ethics
B) Occupational ethics
C) Individual ethics
D) Organizational ethics
E) Fundamental ethics

Question 74

The practical rule states that an ethical decision:

A) best protects the rights of people affected.
B) produces the greatest good for the greatest number of people.
C) distributes benefits and harms in a fair way.
D) is one that can be communicated with no reluctance.
E) is relevant to financial effectiveness of the organization.

Question 75

_____ is(are)formal standards and rules,based on beliefs about right or wrong,that managers can use to help themselves make appropriate decisions with regard to the interests of their stakeholders.

A) Honor codes
B) Codes of ethics
C) Moral codes
D) Existentialism
E) Utilitarianism

Question 76

A person's confidence and faith in another person's goodwill is called:

A) trust.
B) esteem.
C) ethics.
D) moral scruple.
E) effectiveness.

Question 77

Which of the following is LEAST likely to be a source of individual ethics?

A) Family
B) Friends
C) Personality
D) Experience
E) Managers

Question 78

Stakeholders have valuable _____ that they must protect because their ability to earn a living and obtain resources in the long run depends on how they behave.

A) ethics
B) moral scruples
C) trust
D) effectiveness
E) reputation

Question 79

People in a particular country may automatically behave ethically because they have internalized values and norms that specify how they should behave in certain situations.This is an example of which code of ethics?

A) Professional ethics
B) Individual ethics
C) Societal ethics
D) Organizational ethics
E) Fundamental ethics

Question 80

Which of the following emanates from a particular community's unwritten attitudes,values,and norms that influence how people interact with each other?

A) Societal ethics
B) Professional ethics
C) Individual ethics
D) Organizational ethics
E) Fundamental ethics