Question 1

Roger believes in the statement, "what you give, you receive." He shows respect to everyone he knows and meets every day and expects them to show him respect. Roger's behavior is consistent with ________.

Accepted Answer

Roger's behavior is consistent with the golden rule, which suggests treating others as one would like to be treated oneself.

Question 2

Which of the following acts was passed amid outcries of public outrage over outrageous management practices discovered at several companies including Enron, WorldCom, and Tyco?

Accepted Answer

The Sarbanes-Oxley Act was passed in 2002 in response to the public outrage caused by scandalous management practices at Enron, WorldCom, and Tyco. The act was aimed at improving corporate governance and accountability, increasing transparency, and enhancing financial disclosures to protect investors.

Question 3

Which of the following suggests that an organization is acting unethically?

Accepted Answer

The public pressuring legislators and other government officials to enforce existing regulations could suggest that the organization is acting unethically and not meeting the required standards that have been established for their industry.

Question 4

What does it really mean to say "sustainability is the future of business?" Defend and support your answer.

Accepted Answer

The answer of What does it really mean to say...

Question 5

________ is a formal statement that acts as a guide for the ethics of how people within a particular organization should act and make decisions.

Accepted Answer

A code of ethics is a formal statement that outlines the principles and guidelines for ethical behavior and decision-making within a particular organization. It helps to ensure that employees and other stakeholders understand the values and standards expected of them, and can be used to guide ethical decision-making in a variety of situations.

Question 6

Which of the following guidelines indicates that in order to be ethical, corporate behavior must respect the dignity of human nature?

Accepted Answer

The Rights standard indicates that in order to be ethical, corporate behavior must respect the dignity of human nature. This principle holds that every individual has certain fundamental rights, and these rights must be respected and protected by society and its legal system. Therefore, corporate behavior that violates or undermines these rights is considered unethical.

Question 7

The study of ethics in management can be approached from many different directions. A practical approach is to view ethics as catalyzing managers to ________.

Accepted Answer

Ethical considerations can encourage managers to take socially responsible actions, which go beyond merely fulfilling legal obligations or meeting the needs of stockholders. This approach emphasizes the importance of considering the impact of managerial decisions on various stakeholders, including employees, customers, the community, and the environment. By taking a socially responsible approach, managers can build trust and positive relationships with stakeholders, which can lead to long-term success for the organization.

Question 8

________ is a guideline that determines behavior to be ethical if it reflects high moral values.

Accepted Answer

The virtue standard is a guideline that determines behavior to be ethical if it reflects high moral values. It focuses on the character and personal integrity of the individual rather than on the consequences or actions of the individual.

Question 9

In business, ethics can be defined as the capacity to reflect on ________ in the corporate decision-making process.

Accepted Answer

Ethics in business involves reflecting on values, such as honesty, fairness, and integrity, in the decision-making process. Customer preferences, competitive strategies, production bottlenecks, and workforce diversity may all be taken into consideration, but they are not the focus of ethical reflection.

Question 10

Which of the following actions suggests that an individual is following the golden rule?

Accepted Answer

The golden rule states "treat others as you would like to be treated" and option A aligns with this principle.

Question 11

What is sustainability? Why is building sustainable organizations important?

Accepted Answer

The answer of What is sustainability? Why is building sustainable...

Question 12

________ indicates that behavior can be considered ethical if it provides the most good for the greatest number of people.

Accepted Answer

The utilitarian standard, developed by philosophers like Jeremy Bentham and John Stuart Mill, suggests that an action or behavior is ethical if it results in the greatest amount of happiness or pleasure for the greatest number of people. This approach is often used in business ethics to evaluate the potential impact of actions on stakeholders and society as a whole.

Question 13

Within their organizations, ________ must take responsibility for creating and sustaining conditions in which employees are likely to behave ethically, as well as creating and sustaining efforts aimed at minimizing conditions in which employees might be tempted to behave unethically.

Accepted Answer

Managers have the responsibility to create and maintain an ethical work culture in which staff members are likely to behave ethically. They should also establish and maintain procedures aimed at minimizing conditions that could encourage staff members to behave unethically, such as developing a code of conduct, providing moral training, and instituting an ethical reporting system. While lawyers and employees play an essential part in promoting ethics in the workplace, managers have the ultimate responsibility for developing a culture that encourages ethical behavior. Corporations and businesses are impersonal entities that cannot be held responsible for their employees' ethical conduct.

Question 14

While managers have historically focused on profits as the primary gauge for evaluating organizational performance, today managers are evaluating performance by examining three sustainability gauges. These include:

Accepted Answer

The three sustainability gauges that managers are now evaluating performance by include economy, environment, and society. This is commonly referred to as the triple bottom line. While profitability is still important, it is now considered one of the measurements within the economic aspect of sustainability. Option A mentions environment, economy, and profitability, making it less inclusive of the social aspect of sustainability. Option B includes society, economy, and profitability, but does not mention the environment. Option D includes economy, profitability, and marketability, but marketability is not a commonly used sustainability gauge. Option E includes environment, society, and marketability, but does not include the economic aspect of sustainability.

Question 15

Business behavior that reflects honesty in advertising about the worthiness of a product or paying suppliers a fair price for their goods is an example of the ________.

Accepted Answer

The virtue standard emphasizes traits such as honesty, integrity, fairness, and responsibility in decision making and behavior. This standard would apply to business behavior that reflects honesty in advertising or paying suppliers a fair price, as these actions showcase ethical virtues.

Question 16

Behavior where the actions reflect virtues like honesty, fairness, and compassion is an example of the ________.

Accepted Answer

The behavior described in the question reflects the virtue standard, which focuses on the character traits that promote ethical behavior, such as honesty, fairness, and compassion. The other options listed (rights standard, four-way test, decision-making process, and golden rule) all provide different frameworks or guidelines for ethical decision-making but do not specifically pertain to virtuous behavior.

Question 17

Sustainability is said to be worthwhile as these efforts result in an increase in which of the following areas:

Accepted Answer

The answer of Sustainability is said to be worthwhile as...

Question 18

Which of the following are best categorized as "outside" stakeholders of an organization?

Accepted Answer

Outside stakeholders are those who are not directly involved in the operation of the organization but are affected by its decisions and actions. Customers are outside stakeholders as they consume the organization's products or services, and their feedback sometimes contributes to the organization's decision-making process. Stockholders, managers, employees, and shareholders are all internal or insider stakeholders.

Question 19

A manager's actions to build organizations that are sustainable in economic, environmental, and societal activities are commonly referred to as ________.

Accepted Answer

The term commonly used for a manager's actions to build a sustainable organization in economic, environmental, and societal activities is "triple bottom line." It is also referred to as "people, planet, profit" or the "3Ps." Therefore, option A is the correct answer. Option B, C, D, and E are incorrect choices as they do not accurately reflect the common term used for this concept.

Question 20

The Federal Reserve Board (the Fed) examines the relevant economic data and makes a judgment about the present and future state of the economy in order to set interest rates. If economic activity seems to be slowing down, the Fed might decide to lower interest rates as a means for stimulating economic growth. If the economy seems to be growing too fast and the inflation rate is increasing, it might choose to raise interest rates. Lowering or raising interest rates, in and of itself, is neither good nor bad; the rightness of the act depends on the consequences. This action is consistent with the ________.

Accepted Answer

The utilitarian standard focuses on maximizing overall happiness or welfare. The Fed's decision to lower or raise interest rates is based on the expectation that it will result in stimulating economic growth or controlling inflation, respectively, which would lead to greater overall happiness or welfare in society. Therefore, this action is consistent with the utilitarian standard.

Quiz 2: Managers, Society, and Sustainability