Deck 5: Managements Social and Ethical Responsibilities

Question 1

A stakeholder audit focuses exclusively on parties with direct financial ties to the company.

Answer 1

False

Question 2

According to supporters of corporate social responsibility, businesses lack the resources to tackle today's complex societal problems, therefore requiring government intervention.

Answer 2

False

Question 3

By definition, socially responsible acts must be government mandated.

Answer 3

False

Question 4

The idea of corporate social responsibility is still evolving and there are different opinions about the exact nature and scope of management's social responsibilities.

Question 5

The global corporation should focus on taking home-country standards into consideration before considering host-country standards.

Question 6

The classical economic model equates corporate social responsibility with profitability.

Question 7

Adam Smith is considered the father of corporate social responsibility.

Question 8

Because of the universality of management principles, the practice of management has remained the same in the midst of its changing social, political, economic, and technological environments.

Question 9

Archie Carroll believes that corporations must emphasize all areas of responsibility rather than picking and choosing the ones that work for them.

Question 10

An argument against corporate social responsibility is that business is unavoidably involved in social issues.

Question 11

John Kopchinski, is a unique example of a whistle-blower. He received no compensation for doing the right thing by reporting his company, instead, Pfizer fired him.

Question 12

The general public today wants businesses to make as much profit as possible because it is a win-win situation.

Question 13

In the largest health care fraud settlement in history, pharmaceutical giant Pfizer must pay $2.3 billion in penalties.

Question 14

According to Adam Smith, the public interest was served by individuals pursuing their own self-interests.

Question 15

Paul Dolan at California's Fetzer Vineyards demonstrates corporate social responsibility through voluntary actions including a zero waste operations and using alternative power sources.

Question 16

In an effort to repair its damaged public image, Pfizer pharmaceutical company created a free-drug program for people who lost their jobs.

Question 17

Organizations do get involved in social programs with no connection to the bottom line.

Question 18

Opponents of social responsibility argue that a better society means a better environment for doing business.

Question 19

Former Pfizer sales representative John Kopchinski will receive more than $50 million for his role as one of the whistle-blowers that led to Pfizer paying $2.3 billion, the largest health care fraud settlement in history.

Question 20

It is immoral to make a profit, according to the socioeconomic view of business.

Question 21

Corporate charity is simply altruism, according to researchers.

Question 22

One argument against corporate social responsibility proposes that profit maximization ensures the efficient use of society's resources.

Question 23

Business ethics is simple, it is the manager's obligation to choose right versus wrong.

Question 24

The opponents of corporate social responsibility argue that managers are not directly accountable to the people because they are not elected.

Question 25

Toyota's foot dragging on vehicle recalls in recent years is an example of a company adopting a defensive social responsibility strategy.

Question 26

The sole purpose of business is to maximize profits, according to the iron law of responsibility.

Question 27

The iron law of responsibility states that: "in the long run, those who do not use power in a way that society considers responsible will tend to lose it."

Question 28

A company's social responsibility accomplishments should not be used as a recruiting tool because it would be unethical.

Question 29

An example of a proactive social responsibility strategy is Patagonia switching to organically grown cotton.

Question 30

According to researchers' conclusions, there is a negative correlation between industry leadership in environmental protection/pollution control and profitability.

Question 31

An accommodative social responsibility strategy involves taking the initiative and becoming a positive role model for the industry.

Question 32

Managers who believe in enlightened self-interest think that ultimately the best way to help themselves is to help create a better society.

Question 33

Businesses will deny responsibility if they follow the "reaction" social responsibility strategy.

Question 34

One of the top-ten workplace hot spots that trigger unethical and illegal conduct is little or no recognition of achievements.

Question 35

A long-run benefit of socially responsible operations includes easier recruitment of talented and socially-conscious personnel.

Question 36

According to research, the number one workplace hot spot responsible for triggering unethical and illegal conduct is balancing work and family.

Question 37

A business will deny responsibility while striving to maintain the status quo under a proactive social responsibility strategy.

Question 38

Those who argue against corporate social responsibility worry that business already has enough power.

Question 39

An argument favoring corporate social responsibility is that government will force business to do what it fails to do voluntarily.

Question 40

According to corporate social responsibility proponents, accommodation should become management's preferred response in both good times and bad.

Question 41

Equality, freedom, and self-respect are instrumental values, according to the Rokeach value survey.

Question 42

The general ethical principle of "self-interests" states that we should not take any action in which the least fortunate among us are harmed in some way.

Question 43

Denial of injury occurs when the actors are convinced that no one is harmed by their actions; hence the actions are rationalized as not really corrupt.

Question 44

The "universal rules" ethical principle states that individuals should never take action that they would not be willing to see others, faced with the same or similar situation, be free to take.

Question 45

"Procedural values" involve ways of behaving.

Question 46

Social weighting is a rationalization strategy in which the actors counter any blame for their actions by arguing that the violated party deserved whatever happened.

Question 47

Values, or abstract ideals, shape an individual's thinking and behavior.

Question 48

When managers become aware of the problem of pressure from above, they should consciously avoid putting undue pressure on others and should prepare to deal with excessive organizational pressure.

Question 49

According to the Rokeach value survey, terminal values include happiness, a sense of accomplishment and family security.

Question 50

High levels of pressure to act unethically were more often reported by college graduates than by those with a high school diploma or less.

Question 51

Amoral managers are neither moral nor immoral, but indifferent to the ethical implications of their actions.

Question 52

Personal values play a minor role in managerial decision making and ethics.

Question 53

"Honesty is the best policy" is an instrumental value, because it is an enduring belief in a certain way of behaving.

Question 54

Terminal values help achieve instrumental values.

Question 55

One expert on the subject believes amoral managers far outnumber moral managers.

Question 56

"Equal access" is one of the ten general ethical principles.

Question 57

According to research, the most effective way of getting managers to behave ethically is to simply tell them to be good and act professionally.

Question 58

A major ethical problem for managers is pressure from below.

Question 59

Among the ten general ethical principles are universal rules, personal virtues, and government requirements.

Question 60

The general ethical principle of "contributive liberty" states that our actions should not violate the right of all of us for self-development and self-fulfillment.

Question 61

An effective code of ethics needs to be stated in general terms rather than getting bogged down in the details of specific behaviors.

Question 62

Pharmaceutical giant Pfizer must pay $2.3 billion to

A) keep whistle-blowers quiet
B) get the cooperation of foreign governments
C) resolve criminal and civil allegations of illegal conduct
D) complete their ethics audit and training program
E) fund their free-drug program

Question 63

Which of these actions conforms to the definition of corporate social responsibility?

A) A food company voluntarily recalls a product because of possible contamination
B) A U.S. tobacco company moves its production facilities to Asia to take advantage of lax regulation
C) Exxon's oil refineries adhere to the U.S. Clean Air Act
D) Ford negotiates with the United Automobile Workers to avoid layoffs
E) An apartment complex owner gives in to tenant pressures and hires a security guard

Question 64

Archie B. Carroll applies which label to social activities that are not mandated by law or generally expected of business in an ethical sense?

A) Socioeconomic
B) Quasi-ethical
C) Philanthropic responsibilities
D) Legal obligations
E) Values

Question 65

The practice of management ____ as the social, political, economic, and technological environments have changed.

A) is being pushed aside by technology
B) has changed only for managers in the private sector
C) itself has changed
D) in the public sector has remained the same
E) is becoming obsolete

Question 66

An ethical advocate is assigned the specific role of critical questioner, and may also be asked to sit in on top-management decision deliberations.

Question 67

____ are what the public expects business to make today.

A) Long-term profits
B) Short-term profits
C) Both excellent financial and social responsibility contributions
D) Only social contributions
E) Only economic contributions

Question 68

Which of the following is not part of Archie B. Carroll's global corporate social responsibility pyramid?

A) Economic
B) Social
C) Legal
D) Ethical
E) Philanthropic

Question 69

Which of the following is NOT one of the areas of responsibility according to Archie B. Carroll's Global Corporate Responsibility model?

A) Make a profit
B) Obey the law
C) Be ethical in practice
D) Be a good corporate citizen
E) Allow the invisible hand to promote public welfare

Question 70

Whistle-blower John Kopchinski got ________ and ____________ for his role in the Pfizer fraud case.

A) fired; paid more than $100 million
B) fired; paid more than $50 million
C) fired; then got his sales job back
D) no recognition; got his sales job back
E) recognition; did not get his sales job back

Question 71

According to research, detailed ethics codes actually hinder managers from dealing swiftly and effectively with employee misconduct.

Question 72

According to the author, which statement is true about today's businesses?

A) Companies are involved in social programs that have no direct connection with the bottom line.
B) Companies have no business spending money on social programs because their primary responsibility is to customers.
C) Companies are expected to make as much profit as possible.
D) Companies should get involved in social programs only when management can establish a direct contribution to the bottom line.
E) Companies engage in social programs primarily when they are caught in ethical turmoil.

Question 73

Johan is a production manager in Saudi Arabia for Petrolia Inc., a U.S. oil company. Although he is concerned about the company's financial state, Johan believes that Petrolia must do everything possible to follow Saudi Arabia's global standards. Which of Carroll's areas of responsibility does this belief represent?

A) Personal
B) Philanthropic
C) Financial
D) Ethical
E) Legal

Question 74

Social responsibility challenges managers to ____ make the world a better place while pursuing a ____ profit.

A) voluntarily; illegitimate
B) voluntarily; legitimate
C) voluntarily; minimum
D) involuntarily; maximum
E) involuntarily; minimum

Question 75

The first step to reduce the need for whistle-blowing is encouraging the free expression of controversial and dissenting viewpoints.

Question 76

Research offers conclusive evidence that ethics training improves employee behavior.

Question 77

What is the present level of agreement on the nature and scope of management's social responsibilities?

A) Wide-ranging disagreement
B) General agreement, except for labor unions
C) Moderate agreement
D) Complete agreement
E) General agreement in Europe, but not in the U.S. and Canada

Question 78

Selective, or uneven, enforcement is the quickest way to kill the effectiveness of an ethics code.

Question 79

Firing a whistle-blower for disloyalty to the company is supported by legal rulings.

Question 80

Before corporate actions can be called socially responsible, they must be

A) legal.
B) ethical.
C) contractual.
D) voluntary.
E) unprofitable.