Question 1

Pixel Inc prohibits smoking in the workplace.According to company rules,any employee found smoking on the work premises will be fined.However,managers are lax in implementing this rule and employees are regularly seen smoking in the office corridors and cafeteria.Which of the following is true in this scenario?

Accepted Answer

The probability of effect is low because although there is a rule against smoking, it is not being strictly enforced, meaning the likelihood of facing consequences (being fined) for smoking is low.

Question 2

Cigarette ads and smoking have not been completely outlawed in part because the ________ is not 100 percent.

Accepted Answer

The probability of effect refers to the uncertainty regarding the direct impact of smoking on health for every individual, which is a reason why cigarette ads and smoking have not been completely outlawed.

Question 3

________ is the extent to which consequences are focused on a few individuals or dispersed across many.

Accepted Answer

Concentration of effect refers to the extent to which consequences are focused on a few individuals or dispersed across many. Proximity refers to the physical or social distance between individuals or groups. Probability of effect relates to the likelihood of a certain consequence happening. Social consensus refers to the level of agreement among members of a society about a particular issue or value.

Question 4

Which of the following is true regarding the efficiency perspective of social responsibility,according to Milton Friedman?

Accepted Answer

According to Milton Friedman, the efficiency perspective of social responsibility states that the primary responsibility of businesses is to maximize profits for their shareholders. This means that managers should focus on making decisions that benefit the financial well-being of the company, rather than on fulfilling social or environmental goals. Thus, the correct option is C - Managers should maximize profits for the shareholders in the business.

Question 5

________ involves the extent to which members of a society agree that an act is either good or bad.

Accepted Answer

Social consensus refers to the level of agreement in a society about the moral or ethical value of a particular act. It involves the shared understanding and acceptance of social norms, values, and beliefs, which in turn shape people's attitudes and behaviors. Social consensus is an important aspect of social order, as it helps to promote cooperation, coordination, and social stability.

Question 6

________ is a function of the interval between the time the action occurs and the onset of its consequences.

Accepted Answer

Temporal immediacy refers to the closeness in time between an action and the consequences that follow. This can be an important factor in determining how likely an individual is to repeat a behavior if the consequences are perceived as immediate and closely linked to the action.

Question 7

From an efficiency perspective,when the manager of a business ________,the self-interests of the owner are best achieved by serving the interests of society.

Accepted Answer

When the manager is also the owner, their self-interest aligns with the business's success, which is best achieved by serving societal interests, as this can lead to sustainable profitability and reputation.

Question 8

According to the principle of ________,the financial obligation corporations have to others is limited to the company and does not extend to its shareholders.

Accepted Answer

The principle of limited liability means that the financial obligation of corporations is limited to the company, and shareholders are not personally liable for the debts or obligations of the company. This principle is a key feature of corporate law and encourages investment by reducing the risk for shareholders.

Question 9

________ refers to an individual's physical and psychological closeness to the outcome of an action.

Accepted Answer

Proximity refers to the closeness of an individual to the outcome of an action. It can have an impact on the individual's level of responsibility or accountability for the outcome.

Question 10

A factory continues to dump its chemical waste into the local river in spite of government orders banning the dumping of industrial effluents in local water bodies.The company knows that the effects of the chemicals on the water will not be detected until several years later.This is an example of ________.

Accepted Answer

Temporal immediacy refers to the time it takes for the consequences of an action to become apparent. In this case, the effects of dumping chemical waste into the river will not be detected until several years later, indicating a lack of temporal immediacy.

Question 11

Within the context of the efficiency perspective of social responsibility,externalities involve ________.

Accepted Answer

Externalities involve unintended consequences that occur as a result of economic activities or transactions that affect parties who are not directly involved in the production or consumption of goods or services. These externalities may be positive or negative, and they can have both economic and social impacts. From an efficiency perspective, social responsibility requires that externalities be internalized so that the true costs and benefits of production and consumption are reflected in market prices. This helps to ensure that resources are allocated efficiently and that optimal outcomes are achieved for both producers and consumers.

Question 12

The ________ perspective of social responsibility states that a manager's responsibility is to maximize profits for the owners of the business.

Accepted Answer

The efficiency perspective of social responsibility focuses on maximizing profits for the business owners. This perspective asserts that a business exists primarily to generate profits for its owners or shareholders and that managers have a responsibility to operate the business as efficiently as possible to accomplish this goal.

Question 13

A major concern with the efficiency perspective is that corporations can impose indirect consequences that may not be completely understood or anticipated.In economic terms,such an unintended consequence is called a(n)________.

Accepted Answer

An unintended consequence that can result from a corporation's focus on efficiency is called an externality. This is a term used in economics to refer to the indirect impact that a company's actions may have on individuals or the broader community, which may not be fully understood or anticipated. Examples of externalities can include pollution, traffic congestion, and even the negative effects of advertising on self-esteem and body image. Such consequences can be difficult to quantify and may require regulation or other forms of intervention to address.

Question 14

The moral intensity of an issue rises and falls depending on how likely people think the consequences are.This is known as ________.

Accepted Answer

The moral intensity of an issue is influenced by the probability of the consequences occurring. If people perceive the consequences as highly probable, then the moral intensity of the issue increases. Therefore, the concept described is probability of effect.

Question 15

According to the social responsibility perspective,managers should ________.

Accepted Answer

The social responsibility perspective suggests that managers should balance returns to shareholders (maximizing profits) with the legitimate concerns of stakeholders. This means considering the impact of the company's actions on all parties affected, such as employees, customers, suppliers, and the broader community. This approach recognizes that a company's success depends not just on financial performance, but also on the relationships it builds with stakeholders and its contribution to societal well-being.

Question 16

According to a recent survey by BizMag.com,more than 60 percent of all employees believe that pilfering office supplies for personal use is acceptable.Which of the following statements is true in this scenario?

Accepted Answer

The statement that there is a high degree of social consensus is true because more than 60 percent of all employees share the belief that pilfering office supplies for personal use is acceptable, indicating a common or widespread agreement on this issue among the surveyed group.

Question 17

A(n)________ is an individual or group that has an interest in and is affected by the actions of an organization.

Accepted Answer

A stakeholder is someone who can affect or be affected by the actions or decisions of an organization. This can include employees, customers, suppliers, investors, government, and the local community. Understanding and managing stakeholder interests is important for the long-term success of an organization. A social consensus refers to a general agreement among members of a society or community. A cohort refers to a group of individuals who share a common characteristic, such as age or occupation. An accommodator is someone who adapts to or negotiates differences in order to reach an agreement. None of these terms capture the idea of a group or individual affected by an organization's actions, so they are not the correct answer.

Question 18

The social responsibility perspective argues that ________.

Accepted Answer

The social responsibility perspective argues that society grants existence to firms, and therefore, they have a responsibility to act in the best interest of society. This perspective suggests that firms should consider not only the interests of their shareholders but also the interests of other stakeholders, such as customers, employees, and the broader community. This includes taking into account the social and environmental impacts of their operations and ensuring that the costs and benefits are equitably distributed across all stakeholders. Option A describes the basis of rights and autonomy, while option B represents the shareholder perspective. Option D is similar to the social responsibility perspective but does not capture the idea that firms exist because of society's grant of privilege.

Question 19

The ________ associated with the outcome of a given action is the anticipated level of impact,independent of whether the consequences are positive or negative.

Accepted Answer

Magnitude of the consequences is the level of impact associated with the outcome of a given action, regardless of whether the consequences are positive or negative. The other options, such as probability of effect, concentration of effect, and temporal immediacy, do not fully capture the level of impact associated with the consequences of an action.

Question 20

Pixel Inc is planning to upgrade its technology infrastructure.However,this move is likely to render more than half of its workforce redundant.Which of the following statements is true in this scenario?

Accepted Answer

The magnitude of the consequence is high as more than half of the workforce will be rendered redundant, indicating a significant impact on the employees' lives and the company's operations. The other options are not applicable as the concentration of effect is not low, there may not be high social consensus or agreement on the decision, and the probability of effect may be high given the plan to upgrade technology infrastructure.

Quiz 2: Social Responsibility and Managerial Ethics