Deck 4: Ethics and Corporate Responsibility

Question 1

Unethical behavior happens only in a business environment.

Answer 1

False

Question 2

It is a common perception that business leaders use illegal means to gain competitive advantage or improve their personal positions.

Answer 2

True

Question 3

A company can easily avoid environmental issues since the creation and distribution of wealth generates very few by-products.

Answer 3

False

Question 4

An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically.

Question 5

Unlike utilitarianism, egoism directly seeks the greatest good for the greatest number of people.

Question 6

The economic responsibilities of business include satisfying its obligations to investors.

Question 7

Business should look at environmental issues as a no-win situation: either one helps the environment and hurts one's business, or else one helps one's business at a cost to the environment.

Question 8

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

Question 9

An integrity-based ethics program is designed to instill in people a personal responsibility for ethical behavior.

Question 10

Whistleblowers are given preferential treatment since it requires great courage to report fraudulent activities.

Question 11

Employees, their organizations, and their communities thrive over the long term when managers apply ethical standards that direct them to act with integrity.

Question 12

An integrity-based ethics program is designed to instill in people a personal responsibility for ethical behavior.

Question 13

According to utilitarianism, all people should uphold certain values, such as honesty and other values that society needs to function.

Question 14

Relativism defines ethical behavior based on the opinions and behaviors of relevant other people.

Question 15

When faced with an ethical issue in business, people rely on the laws enacted by the Congress to decide what is right or wrong.

Question 16

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

Question 17

Ecocentric management centers around practices that maximize current economic growth, irrespective of the potential harm to future generations.

Question 18

Milton Friedman contended that a business cannot increase its profits while conforming to society's laws and ethical customs.

Question 19

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

Question 20

According to Professor Edward Freeman, which of the following is true of ethics and corporate responsibility?

A) Managers can benefit their organizations only by growing profits.
B) It is not the responsibility of managers to behave ethically when dealing with their stakeholders.
C) Managers can benefit their organizations by growing profits as well as behaving ethically toward their stakeholders.
D) Managers must emphasize ethical behavior toward stakeholders at the cost of growing profits.
E) In business, it is a myth that profits and ethical behavior go hand in hand.

Question 21

While working as a receptionist in a lawyer's office, Marcus was instructed to inform callers that the lawyer was in court when, in fact, the lawyer was playing golf. He eventually quit the job because he could not bring himself to lie to people. Marcus was following the ethical system known as:

A) egoism.
B) social justice.
C) the Taylor Principles.
D) relativism.
E) universalism.

Question 22

According to the Caux Principles for Business, the ethical ideal of kyosei means:

A) deciding what is right by using a set of rules and regulations.
B) being aware of moral situations and then acting morally.
C) accepting the moral constraints of living in a society.
D) living and working together for the common good.
E) recognizing the intrinsic worth of every human being.

Question 23

According to _____, an ethical system, individual self-interest is the actual motive of all conscious action.

A) egoism
B) universalism
C) relativism
D) utilitarianism
E) virtue ethics

Question 24

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

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

Question 25

The moral principles and standards that guide behavior in the world of business are known as:

A) business principles.
B) business philosophy.
C) business development.
D) business ethics.
E) business-related politics.

Question 26

According to Kohlberg's model of cognitive moral development, people in the _____ stage make decisions based on concrete rewards and punishments and immediate self-interest.

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

Question 27

Caring, being honest, showing loyalty, being fair, and acting with integrity are all examples of:

A) ethics.
B) citizenship.
C) values.
D) self focus.
E) excellence.

Question 28

_____, an ethical system, defines ethical behavior according to how others behave.

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

Question 29

In the context of ethical systems, which of the following is true of virtue ethics?

A) It suggests that what is moral must come from what a mature person with good "moral character" would deem right.
B) It bases ethical behavior on the opinions and behaviors of relevant other people.
C) It states that all people should uphold certain values that society needs to function.
D) It states that the greatest good for the greatest number should be the overriding concern of decision makers.
E) It holds that individual self-interest is the actual motive of all conscious action.

Question 30

_____ refers to the moral principles and standards that guide the behavior of an individual or group.

A) Prioritization
B) Ethics
C) Corporate legitimacy
D) Justice
E) The legal system

Question 31

Which ethical system acknowledges the existence of different ethical viewpoints?

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

Question 32

Carol uses certain principles, rules, and values such as honesty, fairness, and cooperation in her daily life to determine what is right or wrong. In the context of the above scenario, which of the following does she employ when making decisions?

A) Moral philosophy
B) Carrying capacity
C) Universalism
D) Ecocentric management
E) Egoism

Question 33

The notion of _____, an ethical system, is similar to Adam Smith's concept of the invisible hand in business.

A) utilitarianism
B) universalism
C) egoism
D) relativism
E) virtue ethics

Question 34

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

A) Corporate legislation
B) Business responsibility
C) Moral philosophy
D) Sustainability index
E) Ecocentric management

Question 35

_____, an ethical system, defines ethical behavior on the opinions and behaviors of relevant other people.

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

Question 36

Susan, an employee in a company, is facing a situation in which she has to choose between going along with her colleagues and filling out inaccurate time records, or informing her manager about the malpractice. In this context, Susan is faced with a(n):

A) moral rights issue.
B) ethical issue.
C) universal value.
D) corporate social responsibility.
E) human rights violation.

Question 37

Linda usually makes decisions on the basis of what her friends would expect her to do. Which ethical system is she making use of?

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

Question 38

According to the ethical system of utilitarianism, which of the following is true?

A) Some values must always be upheld, regardless of the consequences.
B) Societal rules or customs should be used to order values.
C) Society will be enhanced if we all take care of ourselves and do not harm others.
D) Individuals might choose between conflicting values by tallying the final results of the various acts.
E) Seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

Question 39

A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called a(n):

A) ethical standard.
B) ethical issue.
C) business ethic.
D) personal responsibility.
E) moral right.

Question 40

Two basic ethical ideals underpin the Caux Principles for Business.They are:

A) right and wrong.
B) okolu-na and shinpai suna.
C) systematize and sanitize.
D) kyosei and human dignity.
E) self-fulfillment and happiness.

Question 41

Collins, a senior manager at an organization, is approached by a competitor with an offer of a large sum of money in exchange for sensitive information. He refuses to leak the information because he believes that it would be wrong to betray his company. According to Kohlberg's model of cognitive moral development, Collins resides in the _____ stage.

A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

Question 42

In the context of business ethics, which of the following statements regarding ethics codes is true?

A) The Sarbanes-Oxley Act requires all private companies to disclose their financial statements.
B) The statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show.
C) Ethical codes focus exclusively on employee conduct and avoid subjects such as the environment, technology, and political activity.
D) The code of ethics is drawn up by the organizations' administrative department.
E) Executives pay most attention to their company's code of ethics when their senior managers instruct them to do so.

Question 43

Which of the following is true of compliance-based corporate ethics programs?

A) They are designed to instill in people a personal responsibility for ethical behavior.
B) They increase surveillance and controls on people and impose punishments on wrongdoers.
C) They go beyond the mere avoidance of illegality.
D) They help companies and people govern themselves through a set of guiding principles that they embrace.
E) They are not concerned with legal repercussions of unethical behavior.

Question 44

According to Kohlberg's model of cognitive moral development, people in the _____ stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.

A) conventional
B) principled
C) preconventional
D) universal
E) postconventional

Question 45

Compliance-based ethics programs are designed by _____ to prevent, detect, and punish legal violations.

A) corporate counsel
B) administrative staff
C) top executives
D) stockholders
E) corporate trainers

Question 46

In the context of business ethics, which of the following is true of an ethical leader?

A) An ethical leader does not let ethics be "managed" by "benign neglect."
B) An ethical leader merely has a strong personal character.
C) An ethical leader should solely focus on being a moral manager.
D) An ethical leader is quick to take credit for the accomplishments of his subordinates.
E) An ethical leader places personal interest before the common good of the organization.

Question 47

Which of the following is true of unethical corporate behavior?

A) Unethical corporate behavior is the sole responsibility of an unethical individual.
B) Managers must adhere to firm standards in different cultural contexts, rather than decide when relativism is appropriate.
C) Business ethics are shaped exclusively by laws and by individual development and virtue.
D) Companies with international activities find it easier to maintain a positive ethical climate.
E) Unethical corporate behavior reveals a company culture that is ethically lax.

Question 48

Sarah conforms to the expectations of ethical behavior held by her parents and her church. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.

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

Question 49

The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.

A) Securities Exchange
B) Glass-Steagall
C) Commodity Futures Modernization
D) Gramm-Leach-Bliley
E) Sarbanes-Oxley

Question 50

Clark, an American teenager, helps his parents do the household chores only if he receives a large weekly allowance. According to Kohlberg's model of cognitive development, he resides in the _____ stage.

A) conventional
B) principled
C) preconventional
D) postconventional
E) universal

Question 51

Laura, an employee at a company, observed that one of her co-workers accessing confidential company information and carrying it home on a flash drive. She informed her supervisor about it and the errant employee was fired. Unfortunately, Laura found herself ostracized by her co-workers after the incident. Her supervisor did not take any action to protect her. In the context of the above scenario, it can be stated that Laura's company has a poor:

A) strategic objective.
B) span of control.
C) ethical climate.
D) distribution policy.
E) administrative framework.

Question 52

CEO pay packages, wages, antibrand attitudes, and religion at work are some of the _____ that challenge American managers and employees today.

A) personal issues
B) ethical dilemmas
C) corporate crimes
D) cognitive biases
E) business malpractices

Question 53

_____ ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations.

A) Integrity-based
B) Compliance-based
C) Competency-based
D) Legality-based
E) Responsibility-based

Question 54

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

A) distribution policy
B) ethical climate
C) strategic objective
D) legal responsibility
E) span of control

Question 55

A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been taken to create a strong _____ in the company.

A) decision-making environment
B) social awareness
C) individual accountability
D) legal responsibility
E) ethical climate

Question 56

In the context of business ethics and the law, which of the following statements is true regarding the Sarbanes-Oxley Act?

A) It was passed by the Congress in 1992 to improve investor confidence.
B) It requires companies to strictly adhere to a policy of sustainable development.
C) It was passed by the Congress in response to a series of corporate scandals.
D) It requires organizations to have more company insiders as members of the board of directors.
E) It prohibits senior managers from personally signing off on financial results.

Question 57

In the context of corporate ethics programs, which of the following is a function of ethics committees?

A) They develop policies, evaluate actions, and investigate violations.
B) They monitor the online activities of employees.
C) They take disciplinary action against whistleblowers.
D) They work to cover the unethical acts committed by the organization.
E) They encourage eavesdropping as a means of gathering information about employees.

Question 58

Which of the following may prevent the creation of a business climate conducive to unethical behavior?

A) Excessive emphasis on short-term revenues
B) Failure to establish a written code of ethics
C) A desire for "quick fix" solutions to ethical problems
D) Consideration of ethics solely as a legal issue or a public relations tool
E) Willingness to take an ethical stand that may impose financial costs

Question 59

Donna prefers gymnastics to music. However, she agrees to attend music lessons because her parents want her to become a musician. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.

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

Question 60

In the context of business ethics, which of the following principles is helpful in making an ethics code effective?

A) Focus on hypothetical situations so that people have a guide during times of crisis.
B) Making it as lengthy as possible so that it covers all possible aspects.
C) Writing about high ideals so that people can aspire to live up to them.
D) Involving those who have no relationship with the code in writing it, in order to maintain objectivity.
E) Focus on real-life situations that employees can relate to.

Question 61

In the context of making ethical decisions, knowing what actions are morally defensible is referred to as:

A) moral awareness.
B) moral judgment.
C) moral character.
D) moral certainty.
E) moral ability.

Question 62

John Rawls, a philosopher, maintained that only a person ignorant of his or her own identity can make a truly ethical decision. This thought experiment is based on:

A) the "sunshine" ethical framework.
B) the concept of a transcendent education.
C) the veil of ignorance.
D) the concept of "strategic philosophy."
E) the "light of day" principle.

Question 63

A manager of a company is facing an ethical problem. He uses the formal process for ethical decision making to resolve the problem. Which of the following steps will he begin with?

A) Defining the complete moral problem
B) Determining the legal requirements
C) Understanding all the moral standards and recognizing all moral impacts
D) Proposing a convincing moral solution
E) Evaluating the success of the solution

Question 64

In the context of the business costs of ethical failures, level 1 costs that are less damaging and get more executive attention include:

A) the cost of government fines and penalties.
B) the cost of remedial education.
C) the cost of corrective action.
D) the cost of loss of reputation.
E) employee turnover cost.

Question 65

In the context of making ethical decisions, the strength and persistence to act in accordance with one's ethics despite the challenges is known as:

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

Question 66

Patricia, a manager, is considering laying off several employees in her division. She has realized that such a decision has several ramifications for her employees as well as her shareholders. In the context of making ethical decision, this stage is known as:

A) moral certainty.
B) moral ability.
C) moral awareness.
D) moral judgment.
E) moral characterization.

Question 67

A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Since the company followed a(n) _____ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people.

A) competency-based
B) mutuality-based
C) awareness-based
D) integrity-based
E) compliance-based

Question 68

Which of the following is true of integrity-based ethics programs in business organizations?

A) They are designed by corporate counsel to prevent, detect, and punish legal violations.
B) They increase surveillance and controls on people and impose punishments on wrongdoers.
C) Companies and people govern themselves through a set of guiding principles that they embrace.
D) Program elements include establishing and communicating legal standards and procedures.
E) They include assigning high-level managers to oversee compliance.

Question 69

In the context of corporate social responsibility, _____ responsibilities are to obey local, state, federal, and relevant international laws.

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

Question 70

Corporate social responsibility refers to:

A) taking an active role in training employees to be ethical.
B) the obligation toward society assumed by business.
C) following the laws that govern the industry in which a company operates.
D) encouraging recycling efforts within the organization.
E) maximizing shareholder wealth.

Question 71

A fast food chain changed the packaging of its sandwiches so that less waste was produced. In addition, they used recycled paper to bag their products. The company stated that they made these changes in order to make the earth a "nicer place to eat." From this information, we can conclude that the fast food company believes in:

A) mutuality.
B) empathy.
C) maximizing customer actualization.
D) corporate social responsibility.
E) wealth enhancement.

Question 72

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) _________ ethics program.

A) integrity-based
B) compliance-based
C) awareness-based
D) mutuality-based
E) responsibility-based

Question 73

In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking and behavior when:

A) every employee has signed the code of ethics.
B) top management has a personal commitment to responsible ethical behavior.
C) employees have seen top managers punished for their wrongdoings.
D) managers use punishment to motivate employees to "be good".
E) managers use humiliation and bullying to prevent bad behavior.

Question 74

In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act.

A) environmental preservation
B) whistleblower
C) sexual harassment protection
D) human rights responsibility
E) anti-discrimination

Question 75

In the context of corporate social responsibility, _____ responsibility involves meeting other social expectations, not written as law.

A) economic
B) legal
C) human rights
D) ethical
E) philanthropic

Question 76

Behaving ethically requires not just moral awareness and moral judgment but also moral character, including the _____ to take actions consistent with your ethical decisions.

A) ability
B) enthusiasm
C) desire
D) courage
E) willingness

Question 77

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

A) economic
B) legal
C) voluntary
D) political
E) philanthropic

Question 78

In the context of the process for ethical decision making, recognizing all moral impacts includes:

A) determining the economic outcomes.
B) considering the legal requirements.
C) evaluating the ethical duties.
D) determining benefits and harms of various alternatives.
E) determining the potential media coverage.

Question 79

All About U (AAU) Salon believes in and engages in meeting societal expectations whether or not written as law, and voluntarily uses earth-friendly products. AAU can be described as operating at which level of the pyramid of corporate social responsibility?

A) Philanthropic responsibility
B) Legal responsibility
C) Economic responsibility
D) Ethical responsibility
E) Administrative responsibility

Question 80

In the context of the business costs of ethical failures, which of the following is a level 3 cost?

A) Employee cynicism cost
B) Administrative and audit cost
C) Cost of remedial education
D) Cost of corrective action
E) Cost of government oversight