Question 1

When judging an organization's policies-such as fair and impartial administering of promotions regardless of gender, age, sexual orientation, and the like-ethical behavior under the justice approach is guided by respect for impartial standards of fairness and equity.

Accepted Answer

The justice approach to ethics emphasizes impartiality and fairness in decision-making and considers policies that treat individuals equitably as ethical. Therefore, when judging an organization's policies regarding promotions and other matters, ethical behavior is guided by respect for these principles of justice.

Question 2

Despite recent pressure from stockholders to increase profits, a global petroleum organization has maintained a practice of consistently acting ethically by being a good global corporate citizen, taking host-country and global standards into consideration when making decisions, and obeying the law of host countries as well as international law. This is an example of a company acting socially responsible.
B. Carroll, corporate social responsibility rests at the top of a pyramid of a corporation's obligations, right up there with economic, legal, and ethical obligations. Carroll suggests the responsibilities of an organization in the global economy should take the following priorities, with profit being the most fundamental (base of the pyramid) and corporate citizenship at the top: (1) Be a good global corporate citizen, as defined by the host country's expectations; (2) be ethical in its practices, taking host-country and global standards into consideration; (3) obey the law of host countries as well as international law; and (4) make a profit consistent with expectations for international business.

Accepted Answer

The statement is consistent with Carroll's pyramid of corporate social responsibility, with corporate citizenship being at the top of the pyramid. The company mentioned in the statement maintains ethical practices and obeys laws, while also being a good global corporate citizen, which is an example of socially responsible behavior.

Question 3

Ethical behavior is behavior that is accepted as "right" as opposed to "accepted" according to the standards of what is right or wrong.

Accepted Answer

Ethical behavior is behavior that is accepted as "right" as opposed to "wrong" according to one's standards.Ethical behavior in the utilitarian approach is guided by what will result in the greatest good for the greatest number of people.

Question 4

Companies screen out dishonest, irresponsible workers after they are hired by checking employees' résumé and references.

Accepted Answer

Companies often conduct background checks and contact references before and after hiring to ensure that their employees are trustworthy and suitable for the job. This helps them avoid potential legal issues and maintain a positive work environment.

Question 5

A whistle-blower is usually a stakeholder who reports organizational misconduct to the public.

Accepted Answer

This is the generally accepted definition of a whistle-blower.

Question 6

An organization's value system is the belief of employees and customers about that company's product and service quality.

Accepted Answer

Value systems are the pattern of values within an organization.

Question 7

Milton Friedman represents the view that the social responsibility of business is to maintain a balance between business and environmental concerns.

Accepted Answer

Milton Friedman is known for his view that the social responsibility of business is to maximize profits for shareholders and that businesses should not have any social responsibilities beyond obeying the law and engaging in free and open competition. He did not believe that businesses should actively pursue environmental concerns unless it was mandated by the government.

Question 8

A benefit of the individual approach is that when managers make decisions that are made in the individual's best interests, this will usually benefit most people.

Accepted Answer

The statement is incorrect. The individual approach focuses on making decisions that benefit the individual, rather than the group or organization as a whole. While these decisions may benefit some people, they may not benefit everyone, and may even have negative consequences for others.

Question 9

Human resource professionals indicate that when their organizations offer ethics training using a case approach to present employees with ethical dilemmas by clarifying expectations, this kind of training may reduce unethical behavior.

Accepted Answer

Human resource professionals believe that ethics training using a case approach can reduce unethical behavior by clarifying expectations and presenting employees with ethical dilemmas.

Question 10

Psychologist Laurence Kohlberg has proposed three levels of personal moral development: preconventional, conventional, and postconventional.

Accepted Answer

This is a true statement. Kohlberg's theory of moral development includes these three levels.

Question 11

A code of ethics is an insurance document specifying upper management's ethical policy and procedures regarding health care with the Affordable Care Act.

Accepted Answer

A code of ethics is a document outlining an organization's values and principles for ethical behavior, but it is not specific to the Affordable Care Act or healthcare.

Question 12

In the old days of cutthroat capitalism, a company's most important goal was to make money pretty much any way it could. Today for-profit enterprises generally make a point of "putting something back" into society as well as taking something out.

Accepted Answer

This statement is generally true. Many companies now have corporate social responsibility initiatives and strive to give back to their communities and be sustainable in their practices. However, it is important to note that there are still companies that prioritize profit over everything else.

Question 13

The beliefs by individuals regarding what they feel others will observe in their behavior are called ethics.

Accepted Answer

Ethics are the principles or values that guide individuals in making decisions about what is right or wrong. The beliefs that individuals have regarding what others will observe in their behavior are more related to social norms or self-perception, rather than ethics.

Question 14

The Sarbanes-Oxley Act set up the Federal Trade Commission to ensure consumer protection and eliminate and prevent anticompetitive business practices, with penalties of as much as 25 years in prison for noncompliance.

Accepted Answer

The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB) to oversee auditing standards, financial reporting requirements, and ethical conduct within the accounting industry. It did not set up the Federal Trade Commission, which already existed prior to the act and focuses on consumer protection and preventing anticompetitive practices in the marketplace. Additionally, the penalties for noncompliance with Sarbanes-Oxley provisions range from fines to imprisonment, but not necessarily as much as 25 years in prison.

Question 15

A Ponzi scheme is when an individual or company utilizes the bait-and-switch method. A product is advertised at a low price, but when customers ask to buy the item they are told that the advertised good is not available and are pressured to buy a higher-priced item.

Accepted Answer

This description is not accurate for a Ponzi scheme. A Ponzi scheme is an investment fraud where returns are paid to earlier investors using the capital from newer investors, creating the illusion of a profitable investment when no such profits are being made.

Question 16

The Bill and Melinda Gates Foundation, through which Bill Gates and his wife have pledged to spend billions on health, education, and overcoming poverty, is an example of natural capital.

Accepted Answer

The Bill and Melinda Gates Foundation is an example of philanthropy or charitable giving, not natural capital. Natural capital refers to the resources and services provided by nature, such as clean air and water, forests, and biodiversity.

Question 17

When illegal female immigrants from Central America are transported into Texas and forced to work seven days a week or as prostitutes, this violates the moral-rights approach.

Accepted Answer

The moral-rights approach focuses on the inherent rights of individuals, such as the right to be treated with dignity and respect. The situation described in the prompt violates these moral rights.

Question 18

Terrell, the HR manager, strongly believes that fairness means hiring according to ability, not family background. Terrell's deeply held belief regarding hiring is a part of his dilemma approach.

Accepted Answer

Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.

Question 19

The utilitarian approach is guided by what will result in the individual's best long-term interests.

Accepted Answer

The utilitarian approach is guided by what will result in the greatest good for the greatest number of people, not just the individual's best long-term interests.

Question 20

Corporate social responsibility is the belief that corporations are expected to go above and beyond following the law and making a profit to be a good corporate citizen and benefit interests of society.

Accepted Answer

Corporate social responsibility (CSR) does indeed entail corporations taking on additional responsibilities and obligations beyond strictly legal and profit-making ones. CSR is typically associated with actions that promote environmental sustainability, social justice, and ethical behavior, among other societal concerns. While CSR is voluntary, many corporations view it as an important aspect of their reputation, brand equity, and long-term viability.

Quiz 3: The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing