CH 4 practice

Managers faced with these kinds of tough ethical choices often benefit from a _____ strategy, which is one based on norms and values, to guide their decision making. A. professional B. personal C. strategic D. normative

D

After reading about a study by Adam Grant, Malcolm decided to try _____ in order to increase his team's effectiveness based on Grant's claim that this approach was the biggest single predictor of team productivity. A. encouraging greater help and support among team members B. granting bonuses C. promising vacation time D. working harder on the project in ways that were visible to the team

A

As a company executive, the chief ethics officer is responsible for: A. overseeing all aspects of ethics and legal compliance. B. coordinating all four criteria of the company's social responsibility. C. directing decisions about the economic responsibility of the company. D. single-handedly ensuring the company's triple bottom line.

A

As marketing director at her firm, Julia is leading a team that is conducting forums with customers about potential adaptations to a current product line, making those products more responsive to customers' needs. These forums are part of the company's _____ responsibilities. A. economic B. ethical C. discretionary D. legal

A

At the preconventional level of moral development, individuals: A. obey authority to avoid detrimental personal consequences. B. value personal values more than others' expectations. C. are guided by an internal sense of universal justice and right. D. conform to the expectations of good behavior.

A

Companies that embrace sustainability measure performance outcomes at several different levels in a triple bottom line. Which of the following is NOT included in the triple bottom line? A. Moral performance B. Environmental performance C. Social performance D. Financial performance

A

In the Enron scandal (2001), the company found a way to avoid reporting huge debts. A whistle-blower alerted authorities. Enron's CEO was clearly engaged in unethical behavior. He was sentenced to prison because: A. values and standards that say a company can't falsify its financial documents are codified law. B. people in general believe it to be illegal as well as unethical. C. if a behavior is unethical, it is also illegal. D. the domains of ethics and free choice both say he needs to be punished for misleading investors.

A

In the war on terror, military forces have dropped bombs on various targets. The commander of a unit decides not to bomb a certain target because of intelligence that says numerous civilians are currently located there as well as enemy militants. This decision is based on a(n) _____ approach. A. moral-rights B. compensatory justice C. individualism D. utilitarian

A

Managers who follow ethical leadership: A. are fair in their dealings with employees and customers. B. support the idea that their corporation's sole mission is to maximize profits. C. take actions that will contribute to the interests of their organization, but not the society. D. make decisions that enable the company to gain at the expense of society.

A

Most ethical dilemmas involve a conflict between: A. the needs of the part and the whole. B. stakeholders and shareholders. C. parties to a contract. D. individual markets.

A

One of your employees has just come to you saying that he is being sexually harassed by a coworker. He shows you suggestive notes and cartoons that have been left at his desk. He asks you to speak to other coworkers, who confirm the behavior has occurred. You must, as a(n) _____, reprimand the perpetrator and refer the perpetrator's employment status to the human resources department. A. moral agent B. legal counsel C. ethical philosopher D. company employee

A

The purpose of a policy-based statement in an organization's code of ethics is to: A. outline the procedures to be used in specific ethical situations. B. define company responsibilities. C. affect corporate culture. D. specify the guidelines for treatment of employees.

A

The term triple bottom line is also known as the three P's. Which of the following correctly identifies the three P's? A. People, Planet, and Profit B. Profit, People, and Personality C. Price, Product, and Payment D. People, Product, and Profit

A

When it comes to human behavior, the values and standards that are written into the legal system and enforceable in the courts fall within the domain of: A. codified law. B. free choice. C. ethics. D. a social dilemma.

A

Which of the following descriptions best defines corporate social responsibility? A. In taking actions, organizational managers make choices that will enhance the welfare and interests of both society and their organizations. B. Management conducts a process of raising capital through small amounts of money from a large number of investors, using channels such as social media and the Internet. C. Organizations introduce products, services, or processes that radically change competition in an industry. D. It guides management as they initiate a business venture, organize necessary resources, and take on the associated risks and rewards.

A

Which of the following statements about the individualism approach to ethical decision making is true? A. Individualism is easily misinterpreted to support immediate self-gain. B. Individualism contends that acts are moral when they promote the group's best long-term interests. C. Individualism fails to lead to behavior toward others that fits standards of behavior that people want toward themselves. D. Individualism is popular in the highly organized and group-oriented society of today.

A

Which of the following statements best describes the individualism approach as a guide for ethical decision making? A. It sees acts as moral when they promote an individual's best long-term interests. B. It advocates moral behavior that produces the greatest good for the greatest number. C. It requires that different treatment of people not be based on arbitrary characteristics. D. It upholds the fundamental rights and liberties of each individual, which cannot be taken away by another person's decision.

A

Which of the following statements best summarizes the relationship between ethics and law and free choice? A. The domain of ethics is found between codified law and free choice, because even though written laws do not bind ethics, standards of conduct based upon shared principles and values still exist. B. If an action is unethical, it is both contrary to codified laws and free choice. C. Free choice can be unethical but not illegal; codified laws govern behavior that cannot be unethical or illegal. D. Being ethical is much closer to acting with free choice than to acting based on codified laws.

A

Which of the following statements or questions best illustrates the thinking of a person at the postconventional level of moral development? A. I know this is not right, and I will not do it, even if everyone else is. B. What am I going to get from making this decision? C. What would my boss think if I did this? D. Everybody else is doing it, so it must be okay.

A

Which of the following would NOT be included in the People part of the triple bottom line that looks at the level of an organization's social responsibility? A. Commitment to environmental sustainability B. Fair labor practices C. Treatment of employees D. Contributions to the community

A

Which of the following would be included in the Planet part of an organization's triple bottom line? A. Commitment to environmental sustainability B. Fair labor practices C. Financial results D. Contributions to the community

A

At its very basis, being ethical involves: A. increasing the bottom line. B. making decisions. C. following the rules. D. deferring to legal authorities.

B

At the meeting, a purchasing agent within the corporation discloses the receipt of an invitation to a weeklong vacation at friend's condo in Vail, Colorado. This friend is also a vice president at one of the company's suppliers. The two individuals were friends before they came to work at their respective current jobs. To avoid any appearance of a conflict of interest, the purchasing agent wants approval from the corporation's: A. board of directors. B. ethics committee. C. whistle-blowers review board. D. legal counsel.

B

Atlantic Healthcare provides free daycare for preschool-aged children of its employees. This _____ of the organization provides a positive human impact and unconditional society betterment for its own sake rather than for economic reasons. A. triple bottom line B. virtuousness C. act of sustainability D. stakeholder mapping

B

Citibank decided to purchase a new private jet for $50 million in 2009 after it received a $45 billion government bailout in taxpayer funds following the financial crisis of 2008. It later reversed this decision after backlash about its _____ responsibility as a corporation. A. economic B. ethical C. discretionary D. legal

B

Edward finds out that his company is not filtering the effluent by-product from its production process before draining it into a nearby stream as required by EPA regulations. Because his manager has been unreceptive to any suggestions in the past, Edward calls the local newspaper with information about this activity. Edward has engaged in: A. organizational virtuousness. B. whistle-blowing. C. stereotyping. D. unethical employee behavior.

B

Green Cleaning Service has decided to hire three additional employees for a new cleaning crew. This decision falls within the domain of: A. codified law. B. free choice. C. ethics. D. social responsibility.

B

In order to keep costs low and remain competitive in the market, Carrier has decided to move much of its production facility to Mexico. This decision was based on the _____ approach. A. procedural justice B. utilitarian C. moral-rights D. distributive justice

B

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with customers? A. Tolerating a work environment that includes harassment B. Using false or deceptive sales techniques C. Accepting favors or kickbacks D. Failing to keep accurate records or invoices

B

Photos emerged of a college basketball coach partying and drinking alcohol with college co-ed students. Although not illegal, the situation is not considered acceptable by the community at large. The college administration fired the coach. Which approach to ethical decision making was at work here? A. Utilitarian B. Practical C. Justice D. Individualism

B

When it comes to human behavior, the behavior about which the law has no say and for which an individual or organization enjoys complete freedom falls within the domain of: A. codified law. B. free choice. C. ethics. D. a social dilemma.

B

Whenever Zachary faces an ethical dilemma, he always decides to be completely honest and do what he feels is best for himself and his family. Zachary follows a(n) _____ approach as a guide for ethical decision making. A. utilitarian B. individualism C. practical D. justice

B

Which of the following best describes a corporation's ethical responsibility? A. To fulfill economic goals within the framework of legal requirements B. To act with fairness and impartiality, respecting the rights of individuals C. To make decisions that enable it to gain at the expense of society as a whole D. To operate on a profit-oriented basis, with its sole mission being to increase its profits

B

Which of the following descriptions best explains what a stakeholder is? A. Stakeholders are groups or individuals committed to making moral decisions based on standards of equity, fairness, integrity, and impartiality under any circumstance. B. Stakeholders are a group or person inside or outside the organization who is invested or interested in the organization's performance and is affected by the organization's actions. C. Stakeholders form a loosely knit social framework in which individuals are expected to take care of themselves. D. Stakeholders are those employees who offer their combined knowledge, experience, skills, and capabilities toward the organization.

B

Which of the following reasons best explains why managers are embracing the idea of sustainability? A. Sustainability offers a fool-proof way to maximize profits for the owners and shareholders of organizations. B. Sustainability provides a way to achieve financial goals in a manner that is socially and environmentally responsible. C. Sustainability provides the powerful force of moral value that helps regulate organizational behaviors. D. Sustainability lets managers sidestep debates about what is right and base their decisions on the larger society's prevailing standards.

B

Which of the following statements best describes the utilitarian approach as a guide for ethical decision making? A. Individuals who are injured should be compensated for any costs arising from those injuries by the persons(s) responsible. B. It advocates moral behavior that produces the greatest good for the greatest number. C. It upholds the fundamental rights and liberties of each individual, which cannot be taken away by another person's decision. D. Individuals treat others as they themselves want to be treated, as per the Golden Rule.

B

_____ is the code of moral principles and values that governs the behaviors of individuals or groups. A. Social responsibility B. Ethics C. Managerial responsibility D. Free choice

B

About _____ of American adults reach the postconventional level of moral development and are able to act in an independent, ethical manner regardless of expectations from others inside or outside the organization. A. 40 percent B. 10 percent C. 20 percent D. 60 percent

C

As Diego and his management team make strategic decisions, they factor in environmental and social concerns, making sure to consider the long-term effects of those decisions. They operate with a philosophy of: A. scientific management. B. social learning. C. sustainability. D. scenario building.

C

As a definition for ethics, which of the following statements is true? A. It is codified in the law, to be obeyed without question. B. It based almost entirely on religious beliefs. C. It sets standards as to what is good or bad in conduct and decision making. D. It is based on feelings about what is right and wrong.

C

At the postconventional level of moral development, individuals: A. obey authority to avoid detrimental personal consequences. B. value personal values more than others' expectations. C. are guided by an internal set of values based on universal principles of justice and right. D. conform to the expectations of good behavior.

C

Companies may fare poorly when they use economic criteria as their only measure of responsibility, which is sometimes called: A. the triple bottom line. B. organizational virtuousness. C. the profit-maximizing view. D. stakeholder mapping.

C

If a behavior is ethical, it: A. is legal. B. is illegal. C. may be legal or illegal. D. has nothing to do with whether it is legal.

C

Melanie believes that men and women should not receive different salaries if they have the same qualifications and are performing the same job. This belief comes out of her sense of: A. compensatory justice. B. moral justice. C. distributive justice. D. procedural justice.

C

One expert on business ethics suggests that managers can ask themselves the following five questions to help resolve ethical dilemmas. Which of the following questions is NOT included among those five? A. What's in it for me? B. What will be the long-term impact for myself and important stakeholders? C. What can I realistically get away with? D. What rules, policies, or social norms apply?

C

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with suppliers? A. Tolerating a work environment that includes harassment B. Using false or deceptive sales techniques C. Accepting favors or kickbacks D. Falsifying sensitive data concerning product quality

C

Roberta, the CEO at Anderson Construction, serves on the board of directors for the local chapter of Habitat for Humanity. Each year, the company sponsors a Habitat Day in which all its employees actually work on a Habitat house. In this way, Anderson Construction is fulfilling a(n) _____ responsibility. A. economic B. ethical C. discretionary D. legal

C

The formal statement that communicates what the company stands for and includes the company's values concerning ethics and social issues is known as its: A. conflict of issues statement. B. mission statement. C. code of ethics. D. public disclosure statement.

C

The social performance model for evaluating a company's social responsiveness uses four criteria. They are: A. legal, economic, social, and humane. B. professional, legal, financial, and human resources. C. economic, legal, ethical, and discretionary. D. sustainability, economic, legal, and stakeholder.

C

Which of the following best describes a corporation's legal responsibility? A. To make social contributions not mandated by economics, law, or ethics B. To pursue positive human impact, moral goodness, and unconditional society betterment for its own sake C. To conduct itself in ways that society deems important with respect to appropriate corporate behavior D. To produce the goods and services that society wants and to maximize profits for its owners and shareholders

C

Which of the following statements about the practical approach to ethical decision making is true? A. Because ethical issues are most frequently clear-cut, the practical approach is the most effective. B. The only question a manager using the practical approach needs to answer in making a decision is "What decision would lead to the greatest good for the greatest number?" C. The practical approach bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. D. The practical approach focuses primarily on debates about what is right, good, or just.

C

Which of the following would NOT be considered a characteristic of an ethical dilemma? A. The situation requires a decision. B. People hold divergent views about appropriate or inappropriate actions. C. Right and wrong can be clearly identified. D. In a situation concerning right or wrong, values are in conflict.

C

Which of the following would be a principle-based statement within a company's code of ethics? A. "Before engaging in any activity, transaction, or relationship that might give rise to a conflict of interest, employees must seek review from their managers." B. "We will not engage in unauthorized use, copying, distribution, or alteration of software or other intellectual property." C. "We are committed to creating an environment in which all are treated with dignity and respect that brings out the full potential in each of us." D. "Employees who award contracts or who can influence the allocation of business must avoid actions that create the appearance of favoritism."

C

A Gallup poll asked American people whether they agreed with the statement that corporate America's moral compass is "pointing in the wrong direction," and _____ said yes. A. 10 percent B. 30 percent C. 50 percent D. 75 percent

D

At the postconventional level of moral development, managers: A. encourage interpersonal relationships and cooperation through their leadership style. B. prefer work-group collaboration for accomplishing organizational goals. C. use a coercive style of leadership. D. encourage others to think for themselves and focus on the needs of their followers.

D

General statements of principle that define fundamental values and contain general language about company responsibilities are often called: A. moral codes. B. organization virtuousness. C. mission statements. D. corporate credos.

D

Janice works at a payroll company. She never uses the copy machine for personal papers, never takes a cup of coffee in the break room without putting a quarter in the jar, and never takes home pens or pencils from the office. Janice is operating at _____ of moral development. A. a postconventional level B. a preconventional level C. a conventional level D. potentially any one of the three levels

D

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with employees? A. Falsifying sensitive data concerning product quality B. Accepting favors or kickbacks C. Breaching database controls D. Tolerating a work environment that includes harassment

D

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with financial stakeholders? A. Tolerating a work environment that includes harassment B. Using false or deceptive sales techniques C. Accepting favors or kickbacks D. Breaching database controls

D

Stephanie is putting together a _____ in which she identifies the expectations, needs, importance, and relative power of various stakeholders, which may change over time. A. CSR blueprint B. contingency plan C. strategic outline D. stakeholder map

D

Studies typically find _____ between a company's social responsibility and its financial performance. A. a conflict of interest B. little or no correlation C. a negative relationship D. a positive relationship

D

The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Which of the following is not among the three types of justice that are specifically of concern to managers? A. Distributive B. Compensatory C. Procedural D. Personal

D

The most pressing concern for individuals at the conventional level of moral development is to: A. obtain external rewards. B. obey authority. C. follow their own internal values. D. meet social obligations.

D

The production line that Hugo oversees has just malfunctioned and caused an accident that injured one worker. Hugo, to fulfill the company's _____ responsibility, will file a report and cooperate with OSHA inspectors in their investigation of the accident. A. economic B. ethical C. discretionary D. legal

D

The purpose of an organization's ethics hotline is to provide employees with a channel to: A. serve personal needs and interests. B. identify the expectations and relative power of various stakeholders. C. make informed choices regarding various fringe benefits. D. report questionable behavior.

D

To measure the level of managerial success of decisions based on sustainability, managers use a: A. task force. B. utilitarian approach. C. stakeholder map. D. triple bottom line.

D

Tracy operates from a higher level of development and as a manager, she focuses on the needs of followers, encouraging others to think for themselves. Tracy is a(n): A. authoritarian leader. B. collaborative leader. C. conforming leader. D. servant leader.

D

Which of the following best describes a corporation's discretionary responsibility? A. To make decisions that enable it to gain at the expense of society as a whole B. To fulfill economic goals within the framework of legal requirements C. To operate on a profit-oriented basis, with its sole mission being to increase its profits D. To go beyond societal expectations to contribute to a community's welfare

D

Which of the following best describes a corporation's economic responsibility? A. To contribute to its country's gross domestic product B. To pursues positive human impact, moral goodness, and unconditional society betterment for its own sake C. To fulfill its economic goals within the framework of legal requirements D. To produce the goods and services that society wants and to maximize profits for its owners and shareholders

D

Which of the following descriptions best explains what sustainability is? A. Sustainability refers to a systematic way organizations identify the expectations, needs, importance, preferences, and relative power of various stakeholders of an organization, which may change over time. B. Companies committed to sustainability engage in self-regulating thoughts and behavior to accomplish all organizational tasks and handle difficult or challenging situations. C. With sustainability goals, managers alter jobs to increase both the quality of employees' work experience and their productivity. D. Companies committed to sustainability engage in economic development that generates wealth and meets the needs of the current generation while preserving the environment and society for future generations.

D

Which of the following groups is among the primary stakeholders of an organization? A. Regulatory authorities B. Trade unions C. Local governments D. Employees

D

Which of the following scenarios involves an ethical dilemma? A. Your law firm has three associate lawyers, you and two others. The associate who occupied a corner office took a job in another city. When the partner offers the office to you, you decline, so the third associate moves into it. B. You see a coworker loading company computer components in his car. The next day, your boss asks you what you saw. C. A supplier violated the terms of a contract by shipping a lower grade of product than your company agreed to purchase. D. You and another manager are overseeing a large project. You have to sign off on a report that contains data you know the other manager did not verify.

D

Which of the following would NOT be characteristic of a manager who practices ethical leadership? A. Behaves ethically in both his or her personal and professional life B. Honest and trustworthy C. Fair in his or her dealings with employees and customers D. Encourages a win-at-all-costs attitude

D

Which of the following would be a policy-based statement within a company's code of ethics? A. "The success of our business is dependent on the trust and confidence we earn from our employees, customers, and shareholders." B. "We all deserve to work in an environment where we are treated with dignity and respect." C. "Managers have a responsibility to create an open and supportive environment where employees feel comfortable raising such questions." D. "We must avoid any relationship or activity that might impair, or even appear to impair, our ability to make objective and fair decisions when performing our jobs."

D

_____ statements define fundamental values and reference organizational responsibilities, products, and employees. A. Compliance B. Policy-based C. Disclosure D. Principle-based

D