Deck 5: Managing Ethics and Social Responsibility

Question 1

 Compensatory justice argues that an employee's compensation should be based on individual performance.

Answer 1

False

Question 2

 Level 3 of the personal moral development model is called the conventional level.

Answer 2

False

Question 3

 The right of free consent, the right to privacy, and the right to freedom of speech are rights that should be considered in the moral-rights approach.

Answer 3

True

Question 4

 Individualism is popular in the highly organized society of today because it supports immediate self-interest.

Question 5

 The domain of ethics has no specific laws.

Question 6

 The moral-rights approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Question 7

 The moral agent is an individual who must make an ethical choice in an organization.

Question 8

 Free choice lies between the domains of codified law and ethics.

Question 9

 If something is ethical, it must not be illegal.

Question 10

 Procedural justice requires that rules be clearly stated, consistently and impartially enforced, and administered fairly.

Question 11

 Monitoring the Internet to maintain the company's ethical climate and workplace productivity could be considered part of an individualistic approach.

Question 12

 Three types of justice of concern to managers are distributive justice, practical justice, and compensatory justice

Question 13

 Ethics, found between the domains of law and free choice, is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.

Question 14

 The utilitarian approach, individualism approach, moral-rights approach, and objective-dualism approach are the four approaches that guide ethical decision making.

Question 15

 Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models for ethical behavior.

Question 16

 Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.

Question 17

 The ethical concept that contends that acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good, is known as the moral-rights approach.

Question 18

 The ethical concept that holds that moral behavior produces the greatest good for the greatest number is objective dualism.

Question 19

 The utilitarian ethic is the basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco consumption on the job.

Question 20

 An ethical dilemma is a situation in which all alternative choices or behaviors have potentially negative consequences.

Question 21

 Important stakeholders in corporations include the government and the community.

Question 22

 At the preconventional level of personal moral development, people live up to the expectations of others, uphold laws, and fulfill duties and obligations of the social system.

Question 23

 Individuals are concerned with external rewards and punishments at the principled level of personal moral development.

Question 24

 Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.

Question 25

 The great majority of managers operate at level two, the conventional level of moral development.

Question 26

 By early 2016, 30 U.S. states and the District of Columbia had passed laws allowing nonprofit organizations to incorporate as benefit corporations.

Question 27

 Community capitalism refers to following organizational policies and practices that both enhance the economic success of a company and advance the economic and social conditions of the communities in which the company operates.

Question 28

 Organizations with taking cultures, in which people tend to work for their own self-interest, tend to be more effective.

Question 29

 The triple bottom line is sometimes called the three Ps: People, Planet, and Profit.

Question 30

 Stakeholder mapping helps managers identify or prioritize the key stakeholders related to a specific issue or project.

Question 31

 At the preconventional level of personal moral development, individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.

Question 32

 Only about 20 percent of American adults reach the postconventional level of moral development.

Question 33

 Leaders should use an autocratic or a coercive style at the conventional level of moral development.

Question 34

 Special interest groups include trade associations, political action committees, and consumerists.

Question 35

 The principled level of moral development is also referred to as the postconventional level.

Question 36

 Managers in organizations that embrace sustainability measure their success in terms of an organization's social performance, its environmental performance, and its financial performance.

Question 37

 A stakeholder is any group within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions.

Question 38

 Corporate social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.

Question 39

 Companies that incorporate as benefit corporations must also get B Lab certification.

Question 40

 Greenwashing occurs when a company makes environmental responsibility its number-one priority.

Question 41

 A formal statement of a company's values concerning ethics and social values is called a code of ethics.

Question 42

 Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a $71,000 pay increase just months before she laid off 42 employees. Chinoda's decision lies in the domain of:

A) codified law.
B) free choice.
C) ethics.
D) social responsibility.
E) legalism.

Question 43

 Many managers still look at whistle-blowers as disgruntled employees who aren't good team players.

Question 44

 A recent poll found that more than _____ percent of people surveyed agreed with the statement that corporate America's moral compass is "pointing in the wrong direction."

A) 10
B) 25
C) 50
D) 75
E) 95

Question 45

 The assumption that "If it's not illegal, it must be ethical," ignores which of the following?

A) Domain of codified law
B) Domain of ethics
C) Domain of free choice
D) Domain of symbolism
E) All of these

Question 46

 Policy-based statements generally outline the procedure to be used in specific ethical situations.

Question 47

 Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

Question 48

 A new drug has not been approved by the Food and Drug Administration to sell in the United States because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of research and development and production three years ahead of time. This example places the decision in the domain of:

A) ethics.
B) free choice.
C) legalism.
D) compensatory justice.
E) moral rights.

Question 49

 Codes of ethics greatly influence and ensure ethical behavior among employees and managers.

Question 50

 A situation that arises when all alternative choices or behaviors have potentially negative consequences, making it difficult to distinguish right from wrong, is considered a(n):

A) moral agent.
B) social responsibility.
C) ethical dilemma.
D) ethical standard.
E) ethical issue.

Question 51

 The decision by ABC International to downsize and reduce its labor force is in the domain of:

A) codified law.
B) free choice.
C) ethics.
D) social responsibility.
E) legalism.

Question 52

 Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part is called whistle-blowing.

Question 53

 A new approach to developing managers that many of today's best companies are taking is called global placement programs, which place employees with nonprofit organizations or small businesses, often in developing countries, to provide free or low-cost technical and managerial assistance.

Question 54

 Codes of ethics tend to exist in two types: practical-based statements and policy-based statements.

Question 55

 An organization's decision to produce a new product is in the domain of:

A) codified law.
B) free choice.
C) ethics.
D) compensatory justice.
E) social responsibility.

Question 56

 Which of the following refers to the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong?

A) Social responsibility
B) Free domain
C) Ethics
D) Codified law
E) Sustainability

Question 57

 An organization's ethical structure may include an ethics committee, a chief ethics officer, and an ethics hotline.

Question 58

 The amount of explicit control is __________ in the domain of __________. A) high; codified law B) high; free choice C) low; social responsibility D) low; codified law E) high; ethics

Question 59

 __________ is the individual who must make an ethical choice in an organization.

A) The symbolic leader
B) An obstructive manager
C) The defensive individual
D) The moral agent
E) An authoritarian manager

Question 60

 A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.

Question 61

 Which of the following is not a level personal moral development?

A) Preconventional 
B) Conventional 
C) Principled 
D) Postconventional 
E) Collaborative

Question 62

 Studies have generally found __________ relationship between ethical and socially responsible behavior and a firm's financial performance.

A) a positive
B) a negative
C) a weak
D) a moderate
E) no

Question 63

 Which of the following is not a normative ethics approach?

A) Utilitarian 
B) Individualism 
C) Social responsibility 
D) Moral-rights 
E) Practical

Question 64

 The __________ approach holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them.

A) individualism 
B) justice 
C) utilitarian 
D) moral-rights 
E) practical

Question 65

 When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of the __________ approach.

A) utilitarian 
B) individualism 
C) moral-rights
D) justice 
E) practical

Question 66

 Which of the following approaches to ethical decision making asserts that human beings have fundamental liberties that cannot be taken away by another individual's decision?

A) Utilitarian 
B) Individualism 
C) Moral-rights 
D) Practical 
E) Justice

Question 67

 __________ argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no control.

A) Distributive justice
B) Utilitarianism
C) Procedural justice
D) Organizational justice
E) Compensatory justice

Question 68

 Which of the following ethical approaches are companies citing to justify their policing of employees' personal habits on and off the job, such as alcohol and tobacco consumption?

A) Justice 
B) Utilitarian 
C) Individualism 
D) Moral-rights
E) Practical

Question 69

 Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Sharon must decide whether or not to fire this employee. In this role, Sharon is acting as a(n):

A) moral agent.
B) ethical theorist.
C) symbolic leader.
D) authoritarian leader.
E) obstructive manager.

Question 70

 Which of the following has become a hot-button ethical issue in the United States, as stated in the text?

A) Employee theft
B) Firing whistle-blowers
C) Monitoring employees' nonwork activities
D) Excessive executive compensation
E) Unsafe working conditions

Question 71

 __________ requires that different treatment of people not be based on arbitrary characteristics.

A) Procedural justice
B) Compensatory justice
C) Distributive justice
D) Organizational justice
E) Utilitarianism

Question 72

 The Container Store, Whole Foods Market, Costco, and Trader Joe's are all examples of companies that:

A) have engaged in unethical behavior in recent years.
B) use a utilitarian approach to ethical decision making.
C) have set up ethics hotlines.
D) embrace a conscious capitalism philosophy.
E) have a taking, rather than giving, culture.

Question 73

 Which of the following approaches to ethical decision making is not popular in the highly organized and group-oriented society of today?

A) Moral-rights 
B) Individualism 
C) Utilitarian 
D) Justice 
E) Individualism

Question 74

 The ethical decision-making approach that holds that moral decisions be based on standards of equity, fairness, and impartiality is the __________ approach.

A) moral-rights 
B) individualism 
C) utilitarian 
D) justice 
E) practical

Question 75

 Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on the __________ approach.

A) procedural-justice
B) utilitarian 
C) individualism 
D) compensatory-justice
E) free-choice 

Question 76

 The action of Paula Reid, the manager who set the U.S. Secret Service prostitution scandal in motion by reporting the misconduct of agents in Catagena, Columbia, was based largely on the __________ approach.

A) justice
B) moral-rights
C) utilitarian
D) individualism
E) practical

Question 77

 The justice approach is closest to the thinking underlying the domain of:

A) social responsibility.
B) free choice.
C) law.
D) moral principles.
E) ethics.

Question 78

 Which of the following is causing some managers to behave unethically toward customers, employees, and the broader society in today's environment?

A) Globalization
B) An overemphasis on pleasing shareholders
C) An overemphasis on meeting long-term earnings goals
D) Operating in a turbulent environment
E) All of these

Question 79

 Which of the following is not a concern to managers under the justice approach?

A) Compensatory justice
B) Distributive justice
C) Procedural justice
D) Obstructive justice
E) All of these

Question 80

 The golden rule "do unto others as they would do unto you" is an example of the __________ approach to ethical decision making.

A) utilitarian
B) moral-rights
C) individualism
D) social responsibility
E) justice