Deck 6: Ethics and Stakeholder Social Responsibility

Question 1

Nortel Networks aims its ethics training at managers, so that employees can follow a strong example.

Answer 1

False

Question 2

Integrity means "honor of traditions."

Answer 2

False

Question 3

Dishonest executives can be prosecuted as criminals in the U.S. court system.

Answer 3

True

Question 4

Unfortunately, ethics programs for businesses are proving to be ineffective.

Question 5

The Sarbanes-Oxley Act reforms corporate governance without creating any new employment rights.

Question 6

Recent regulations are designed to give organizations more discretion in developing their own ethics policies.

Question 7

Employment-at-will has not been significantly modified for nearly 30 years.

Question 8

Whistle-blowing is the act of going over your supervisor's head and directly to management with a complaint.

Question 9

Whistle-blowers seem to be at a higher stage of moral development than most employees.

Question 10

The fairness principle requires that decisions and behavior be based on a variety of universal obligations.

Question 11

"To support and comply with just institutions" is one of the universal principles of natural duty.

Question 12

The European Union's Eco-Management and Audit Scheme (EMAS) and the International Organization for Standardization's ISO 14000 standards are examples of environmental policy statements designed to provide guidance to multinational businesses.

Question 13

Former Chrysler Chairman Robert Eaton was a strong advocate of corporate social responsibility.

Question 14

Customer-oriented firms FedEx and Intel are twice as profitable as their competitors.

Question 15

Nortel Networks is notorious for abusing corporate power in attempting to influence public issues.

Question 16

GM was the first automaker to conduct a social audit.

Question 17

A social audit is an attempt to identify, measure, evaluate, report on, and monitor the effects the organization is having on its stakeholders and society as a whole.

Question 18

Studies show that behaving ethically can be profitable.

Question 19

Nortel Networks' approach to ethical behavior is __________.

A) a top-down strategy of having management set a good example for everyone to follow
B) making every employee accountable for ethical decision making
C) to voluntarily admit when they make mistakes
D) establishment of a special task force to monitor ethics throughout the organization

Question 20

According to the preview reading, Nortel Networks has a code of business conduct that is intended to prevent all of the following except:

A) loss of customers.
B) damage to corporate reputation.
C) FCC and SEC intervention.
D) criminal prosecution.

Question 21

Nortel Networks believes that their business ethics should be guided by __________.

A) the best traditions of religion and education
B) legal cases that have identified the standards for corporate fraud
C) personal values of its workers
D) all of the above

Question 22

Mark Harvey has just been fired by his supervisor at the local plant where he has worked for many years. Harvey has participated in all of the activities listed below, but only one activity is classified as an acceptable reason for him being fired. Which of the following is considered an acceptable reason for Harvey being fired?

A) engaging in an activity to protest wages
B) filing of unfair labor practice charges against the company
C) reporting a violation to OSHA
D) committing harassment, which is considered a civil rights violation

Question 23

Herschel Isenberg is the loan manager for a local bank. A publisher of a legal, pornographic magazine has asked for a loan. The local community has been indifferent to the pornographic business. The loan will be beneficial to the bank in terms of increasing business. The bank has a nondiscrimination policy. Isenberg is personally very opposed to pornography and thinks all pornographic materials should be illegal. Based on _________ source of guidance, Herschel refuses to make the loan.

A) informal
B) formal
C) interpretive
D) code of ethics

Question 24

Nortel Networks' prohibition policy toward bribes must be modified for countries where bribery is a "normal way of doing business" in which following way?

A) formal disclosure to the U.S. government
B) discretion
C) executive board exception procedure
D) none of the above

Question 25

At Nortel Networks where bribes or kickbacks are prohibited in their foreign operations, what type of "facilitation payment" is considered permissible?

A) low level government workers such as immigration clerks
B) routine business services such as phone installations
C) fees to insure that shipments are not stolen
D) all of the above

Question 26

Dee Dee Cantrell is aware of wrongdoing and unethical behavior within the manufacturing company where she works. Before Cantrell blows the whistle she would be wise to ask herself some very difficult questions. Which of the following would not be helpful to the decision-making process she must complete before blowing the whistle?

A) Should she resign from the company?
B) Does she have documentary evidence?
C) Is retaliation likely?
D) Will the jury award be worth it?

Question 27

The score from the managerial values profile you took in class reveals (1) you believe in adhering to rules designed to maximize benefits to all, (2) you believe in maintaining significant inequities among employees when the ultimate result benefits all, and (3) you believe what is good is what helps the company attain ends that benefit everyone. Your profile suggests you subscribe to what approach to making ethical decisions?

A) moral rights
B) justice
C) utilitarian
D) a mix of all three approaches

Question 28

Managers and employees alike should not have personal interests that conflict with the organization's achievement of its goals. Conflicts of interest, however, can sometimes be difficult to judge. Which of the following is especially susceptible to conflicts of interest?

A) A purchasing agent who has a significant financial interest in one of the firm's major suppliers.
B) Employees of an accounting firm who own stock in companies that the firm audits.
C) American managers doing business with co-owners globally.
D) all of the above

Question 29

Employees, customers, and the general public have the right not to have their lives and safety unknowingly and unnecessarily endangered. Which of the following is not true concerning this right?

A) The U.S. Occupational Safety and Health Act of 1970 contained new safety requirements.
B) Regulations were established restricting the use of asbestos and lead-based paint.
C) OSHA requirements are applicable to all U.S. companies, including those with factories in foreign countries.
D) All of the above statements are true.

Question 30

General Motors established manufacturing operations in Mexico, where environmental standards are much lower. Which of the following outcomes is true?

A) They saved money by avoiding expensive environmental protection.
B) They were forced by the government to furnish a safe work environment.
C) They voluntarily selected higher standards.
D) There were public accusations of worker exploitation.

Question 31

State Farm Insurance offers a highly detailed __________.

A) privacy policy
B) customer information database
C) telemarketing agreement
D) all of the above

Question 32

Customers receive an annual Notice of Privacy Policy from __________.

A) Citibank
B) Blue Cross
C) State Farm
D) Associated Credit Bureau

Question 33

As a client, State Farm Insurance gathers information on you from all of the following sources except:

A) your credit history
B) your tax return
C) your driving record
D) your State Farm agent

Question 34

As primary stakeholders, customers expect the organization to provide __________.

A) safety and health
B) concern for the environment
C) efficiency
D) met commitments

Question 35

Which secondary stakeholders are directly addressed in Nortel's "Commitments to Stakeholders"?

A) suppliers
B) customers
C) labor unions
D) none of the above

Question 36

Nortel Networks believes that shareholder value is delivered through __________.

A) continuing professional development
B) satisfied and loyal customers
C) teamwork competency
D) lobbying of governmental agencies

Question 37

Safe and environmentally responsible products are a commitment Nortel makes to its __________.

A) suppliers
B) customers
C) employees
D) shareholders

Question 38

Which of the following has a primary stake in Nortel Networks?

A) shareholders
B) suppliers
C) employees
D) all of the above

Question 39

Suppliers apply which of the following types of pressure to organizations?

A) meet commitments
B) ethical disclosure of financial information
C) demands for efficiency
D) both A and C

Question 40

ISO 14000 refers to __________.

A) safety in the workplace
B) quality manufacturing processes
C) voluntary environmental standards
D) ethical hiring standards

Question 41

Local laws and regulations govern business actions related to pollution and the use of natural resources. What international standards for environmental management have also been developed?

A) European Union's Eco-Management and Audit Scheme
B) International Organization for Standardization's 14000
C) Material Safety Data Sheets
D) all of the above

Question 42

Which of the following is not a company that has voluntarily met ISO 14000 standards?

A) Lear Corporation
B) Volvo of North America
C) Brinker International
D) none of the above

Question 43

According to _________, "The idea of corporations taking on social responsibility is ridiculous."

A) Kenneth Lay, CEO of Enron
B) Robert Eaton, Chrysler Chairman
C) Dick Cheney, CEO of Halliburton
D) Warren Buffet of Berkshire Hathaway

Question 44

During a five-year period, the revenues of 13 well-known customer-oriented firms such as FedEx, when compared to their competitors, __________.

A) failed to keep up
B) maintained an equal performance
C) grew 3 times faster
D) grew nearly 10 times faster

Question 45

A proactive approach to social responsibility involves accepting five categories of obligations. Which of the following is not among these categories?

A) Managers and employees must consider and accept more narrow criteria for measuring the organization's performance and social role than those required by law.
B) Managers and employees should maintain or improve the current standards of the physical and social environment.
C) Managers and employees should accept responsibility for solving current problems.
D) Managers must show a willingness to work with outside stakeholders for enactment of environmental protection laws.

Question 46

The __________ social responsibility concept holds that managers and other employees should be able to anticipate negative effects of the organization's plans on other stakeholders and then reduce those effects before implementing the plan.

A) traditional
B) affirmative
C) proactive
D) communal

Question 47

In addressing ethical concerns, the proactive stakeholder social responsibility approach involves all of the following except:

A) legislative and political activities
B) legal defense initiatives
C) response to social pressures
D) operating strategy

Question 48

Nortel Networks is opposed to taking part in which of the following activities?

A) corporate contributions to politicians
B) employee reimbursement for campaign donations
C) publicly expressing its political corporate views
D) Nortel refuses to take part in all of the above.

Question 49

Which of the following is true about Nortel Networks' political behavior?

A) They contribute to political campaigns.
B) They allow employees to campaign on company property.
C) They abuse corporate power to influence public issues.
D) They reimburse employees who contribute to political parties or candidates.

Question 50

A __________ identifies, monitors, and evaluates the effects that the organization is having on its stakeholders and society as a whole.

A) sustainable development evaluation
B) strategic action survey
C) stakeholder audit
D) social audit

Question 51

A(n) __________ audit identifies, monitors, and evaluates the effects that the organization is having on its stakeholders and society as a whole.

A) financial
B) management
C) organizational
D) social

Question 52

General Motors publishes an annual __________ report that documents the integration of economic, environmental, and social objectives into daily business activities.

A) social audit
B) social compliance
C) social responsibility
D) social development

Question 53

Since 1995, General Motors has reduced worker injuries in its global operations by __________.

A) 90%
B) 75%
C) 40%
D) 15%

Question 54

General Motors met and exceeded their five-year goal to reduce nonrecycled waste by __________.

A) 10%
B) 25%
C) 33%
D) 50%

Question 55

What are four of the ethical standards found within the utilitarian model?

Question 56

Describe the fairness principle.

Question 57

What are two of the components of the natural duty principle?

Question 58

Explain the ways that Nortel Networks deployed a comprehensive corporate ethics program addressed to its primary stakeholders.