Question 1

Which of the following sparked renewed interest in corporate governance?
A)Scandals among CEOs who were eventually convicted of fraud.
B)Advances in technology that have dramatically improved communication.
C)Rising oil prices as well as higher prices for many other natural resources.
D)High-profile businesspeople creating charitable foundations.
E)An increasingly diverse workforce.

Accepted Answer

CEOs of firms such as Enron, WorldCom, Tyco, and Adelphia did the things in recent years that got them convicted for fraud.After the scandals, there was a resumed interest in what is known as corporate governance, the system of governing a company so that the interests of corporate owners and other stakeholders are protected.

Question 2

Jessica is an employee in a manufacturing plant who works the graveyard shift, midnight to 8 a.m.One night, she saw one of her managers dumping some chemicals down a storm drain in the parking lot.When she confronted him, he said this was standard procedure for some waste materials to avoid other costly disposal measures.When Jessica wrote a letter about it to the local newspaper she was a(n)
A)victim's advocate.
B)activist.
C)gossip.
D)whistle-blower.
E)disloyal employee.

Accepted Answer

A whistle-blower is an employee who reports organizational misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers.

Question 3

Which of the following is recommended to improve corporate governance?
A)Getting directors involved in the day-to-day management issues of the firm.
B)Instituting an employee vote to hire or fire the CEO.
C)Setting up "golden parachutes" for CEOs.
D)Instituting a "cradle-to-grave" conceptualization of all new products.
E)Ensuring that directors are clearly separated in their authority from the CEO.

Accepted Answer

Now more attention is being paid to strengthening corporate governance so that directors are clearly separated in their authority from the CEO.While directors are not supposed to get involved with day-to-day management issues, they are now feeling more pressure from stockholders and others to have stronger financial reporting systems and more accountability.

Question 4

Only about a fifth of American managers reach which level of personal moral development?
A)Internalized
B)Postconventional
C)Expectational
D)Enlightened
E)Cooperative

Accepted Answer

Kohlberg has proposed three levels of personal moral development: preconventional, conventional, and postconventional.Only about a fifth of American managers reach level 3, the postconventional level.

Question 5

Eliza is a new manager, and she frequently feels it necessary to threaten her employees with a variety of punishments in order to get them to follow the rules.The level of personal moral development at which Eliza is operating is the ______ level according to Kohlberg.
A)conventional
B)unconventional
C)preconventional
D)postconventional
E)reconventional

Accepted Answer

Kohlberg has proposed three levels of personal moral development: preconventional, conventional, and postconventional.At level 1, the preconventional level, managers would be autocratic or coercive, and expect employees to be obedient for obedience's sake.

Question 6

A manager's duty to take actions that will benefit the interests of society as well as of the organization is known as
A)social responsibility.
B)philanthropy.
C)ethics.
D)moral rights.
E)the society motive.

Accepted Answer

Social responsibility is a manager's duty to take actions that will benefit the interests of society as well as of the organization.

Question 7

The economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as
A)sustainability.
B)ethical growth.
C)economic security.
D)strategic planning.
E)philanthropic growth.

Accepted Answer

Sustainability is meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Question 8

______ is the illegal buying or selling of a company's stock by people using confidential company information.
A)A whistle-blower
B)Stock exploitation
C)Insider trading
D)Tip abuse
E)A Ponzi scheme

Accepted Answer

Insider trading is the illegal trading of a company's stock by people using confidential company information.

Question 9

Google made a pledge to investors when it went public to reserve 1% of its profit and equity to "make the world a better place." This is an example of corporate
A)fairness.
B)correctness.
C)greenworks.
D)philanthropy.
E)sustainability.

Accepted Answer

Philanthropy is defined as making charitable donations to benefit humankind as Google did with its pledge.

Question 10

Which of the following statements about a code of ethics is most true?
A)A code of ethics is rarely a written document but instead an informal understanding between people who work for a particular organization.
B)Most codes of ethics offer guidance on how to treat stakeholders.
C)The purpose of a code of ethics is to keep top management out of jail.
D)Codes of ethics typically prohibit bribes unless it is the accepted way of doing business in a foreign country.
E)Workforce diversity is not covered in a code of ethics; instead it is usually covered in a separate diversity code.

Accepted Answer

A code of ethics consists of a formal written set of ethical standards guiding an organization's actions.Most codes offer guidance on how to treat customers, suppliers, competitors, and other stakeholders.The purpose is to clearly state top management's expectations for all employees.Most codes prohibit bribes.

Question 11

Kelly runs a growing business in Birmingham and wants to do more than lead a successful and law-abiding company.She intends to make a difference in her community by helping with issues like poverty and high unemployment.Kelly believes in
A)corporate paternal accountability.
B)the fair skies concept.
C)corporate social responsibility.
D)the corporate protection concept.
E)corporate welfare.

Accepted Answer

Corporate social responsibility (CSR) is the notion that corporations are expected to go above and beyond following the law and making a profit to help society.

Question 12

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as
A)corporate social responsibility.
B)the ethical climate.
C)philanthropy.
D)corporate governance.
E)the utilitarian approach.

Accepted Answer

Corporate governance is the system of governing a company so that the interests of corporate owners and other stakeholders are protected.

Question 13

Which of the following forms the base of Carroll's global corporate social responsibility pyramid?
A)Philanthropic responsibility
B)Economic responsibility
C)Ethical responsibility
D)Moral responsibility
E)Legal responsibility

Accepted Answer

Economic responsibility is at the bottom of Carroll's global corporate social responsibility pyramid .

Question 14

Milton Friedman would have agreed with which of the following statements about social responsibility?
A)A company will produce higher quality products when it practices social responsibility.
B)A company will increase its sales when it practices social responsibility.
C)A company will be able to create better jobs when it practices social responsibility.
D)A company will become distracted from its task to maximize profits when it practices social responsibility.
E)A company will provide improved value when it practices social responsibility.

Accepted Answer

Friedman represents the view that "the social responsibility of business is to make profits." Unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth, which is the real social justification for the firm's existence.

Question 15

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following?
A)Open personal lines of credit.
B)Hire an ethics officer.
C)Set procedures and guidelines for the board of directors.
D)Hire a diversity officer.
E)Personally certify financial reports.

Accepted Answer

Administered by the SEC, SarbOx requires a company's chief executive officer and chief financial officer to personally certify the organization's financial reports, prohibits them from taking personal loans or lines of credit, and makes them reimburse the organization for bonuses and stock options when required by restatement of corporate profits.

Question 16

Issues like privacy, health and safety, and due process that are described as basic rights are typically tied to which of the following approaches to deciding ethical dilemmas?
A)Utilitarian
B)Justice
C)Individual
D)Liberty
E)Moral rights

Accepted Answer

Ethical behavior in the moral-rights approach is guided by respect for the fundamental rights of human beings, such as those expressed in the U.S.Constitution's Bill of Rights.We would all tend to agree that denying people the right to life, liberty, privacy, health and safety, and due process is unethical.

Question 17

An ethical _________ represents employee's perceptions about the extent to which work environments support ethical behavior.
A)climate
B)atmosphere
C)code
D)structure
E)hierarchy

Accepted Answer

An ethical climate represents employees' perceptions about the extent to which work environments support ethical behavior.It is important for managers to foster ethical climates because they significantly affect the frequency of ethical behavior.

Question 18

Omar is a human resources manager for a large landscaping and exterior construction company called Northwest Patios.A local news station has just done a story on several dissatisfied customers and their complaints of shoddy work.Omar has had two other media outlets contact him this morning too.Based on research on the effects of such publicity, Omar should expect that
A)job applications will increase, though rates of candidates accepting job offers will decline.
B)employee retention will improve.
C)both rates of candidates accepting job offers and employee retention will slide.
D)job applications will decrease but employee retention will stay the same.
E)no substantive changes in applications, offer acceptance or retention will occur.

Accepted Answer

One survey indicated that 83% rated a company's record of business ethics as "very important" when deciding whether to accept a job offer; only 2% rated it as "unimportant." Another survey found that 79% of employees said their firms' concern for ethics was a key reason they remained.

Question 19

The individual approach is guided by what will result in the individual's ________ best interests, which ultimately are in everyone's self-interest.
A)shared
B)immediate
C)credible
D)long-term
E)observable

Accepted Answer

Ethical behavior in the individual approach is guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest.The assumption here is that you will act ethically in the short run to avoid others harming you in the long run.

Question 20

Aaron is a manager at a local live music venue.He is developing a new online system for advance ticket sales.Some of the shows have been so popular that tickets sell out quickly and regular patrons have complained that with a slow Internet connection they have no chance to purchase.In an effort to be fair to all prospective customers, Aaron is using what approach to ethical behavior?
A)Utilitarian
B)Individual
C)Moral-rights
D)Justice
E)Environmental

Accepted Answer

The justice approach is guided by respect for impartial standards of fairness and equity.

Quiz 3: The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing

Which of the following sparked renewed interest in corporate governance?

Which of the following is recommended to improve corporate governance?

Only about a fifth of American managers reach which level of personal moral development?

Eliza is a new manager, and she frequently feels it necessary to threaten her employees with a variety of punishments in order to get them to follow the rules.The level of personal moral development at which Eliza is operating is the ______ level according to Kohlberg.

A manager's duty to take actions that will benefit the interests of society as well as of the organization is known as

The economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as

______ is the illegal buying or selling of a company's stock by people using confidential company information.

Google made a pledge to investors when it went public to reserve 1% of its profit and equity to "make the world a better place." This is an example of corporate

Which of the following statements about a code of ethics is most true?

Kelly runs a growing business in Birmingham and wants to do more than lead a successful and law-abiding company.She intends to make a difference in her community by helping with issues like poverty and high unemployment.Kelly believes in

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as

Which of the following forms the base of Carroll's global corporate social responsibility pyramid?

Milton Friedman would have agreed with which of the following statements about social responsibility?

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following?

Issues like privacy, health and safety, and due process that are described as basic rights are typically tied to which of the following approaches to deciding ethical dilemmas?

An ethical _________ represents employee's perceptions about the extent to which work environments support ethical behavior.

The individual approach is guided by what will result in the individual's ________ best interests, which ultimately are in everyone's self-interest.