Chapter 4 review questions

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other shareholders. This illustrates the _______ approach to social responsibility. A) offensive B) defensive C) accommodative D) proactive obstructionist

Defensive

_______ have the right to expect a good return or reward by investing their human capital to improve a company's performance. A) Managers B) The community C) Customers D) Distributors E) Suppliers

A) Managers

_______ is/are your company's views on its duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole. A) Social responsibility B) Organizational ethics C) Stakeholder mandate D) Legal scrutiny E) Ethical performance

A) Social responsibility

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n) _______ approach to social responsibility. A) accommodative B) offensive C) obstructionist D) defensive E) proactive

A) accommodative

Managers are being socially responsible and showing support for their stakeholders when they A) allow employees to take time off when they need it. B) move a factory to a new location if it is polluting the environment. C) invest in countries that have poor human rights records. D) decline to help countries develop an economic base if they have poor living standards. E) stop laying employees off.

A) allow employees to take time off when they need it.

1) David is trying to provide a visible means of support to develop an ethical culture in his company. He can do so by creating A) an ethics ombudsperson position. B) a strong human resources team. C) strict leadership rules for the top management. D) ethical beliefs that remain rigidly constant. a plan for minimum compensation benefits.

A) an ethics ombudsperson position.

Philamena has noticed that her operations manager has been using unethical practices to reap personal benefits at the expense of the company's customers. She will most likely approach the _______ to report the matter without fear of retribution. A) ethics ombudsperson B) human resources manager C) consumer court D) CEO E) legal advisor

A) ethics ombudsperson

The individual ethics of a company's _______ are especially important in shaping the organizational code of ethics. A) founders B) community C) shareholders D) employees E) customers

A) founders

The _______ rule states that an ethical decision is one in which rewards and harms are distributed in a fair and impartial way. A) justice B) utilitarian C) moral scruples D) practical E) moral rights

A) justice

When Bob calculates the yearly bonuses for his employees, he pays particular attention to the individual employee scores to ensure that they are based on performance and not favoritism. Which ethical rule is Bob following? A) justice B) utilitarian C) moral rights D) moral scruples E) practical

A) justice

Under the _______ rule, an ethical decision is one that best maintains people's fundamental privileges. A) moral rights B) justice C) moral scruples D) utilitarian E) practical

A) moral rights

Which type of commitment to social responsibility is characterized by low levels of socially responsible behavior? A) obstructionist B) obligatory C) proactive D) accommodative E) defensive

A) obstructionist

When Frida was determining if her decision was ethical, she asked herself, "Would the people with whom I have a significant personal relationship, such as family members, friends, or even managers in other organizations, approve of the decision?" Frida was demonstrating which rule of ethical decision making? A) practical B) moral rights C) moral scruples D) utilitarian E) justice

A) practical

Companies that use the _______ approach to social responsibility are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics testing; and the reduction of crime, illiteracy, and poverty. A) defensive B) proactive C) accommodative D) reactive E) obstructionist

B) proactive

The practical rule of ethical decision making A) states that it is acceptable for a company to choose an unethical action if the action provides the greatest good for the greatest number of people. B) states that an ethical decision is one that a manager will be hesitant or reluctant to communicate to people outside the company because the typical person in a society would think it is unacceptable. C) ensures that managers will take into account the interests of all the stakeholders. D) emphasizes distributing benefits and harms in an equitable way. E) requires managers to determine the fair or unfair rules and procedures for distributing outcomes to stakeholders.

C) ensures that managers will take into account the interests of all the stakeholders.

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n) _______ approach to social responsibility. A) accommodative B) offensive C) obstructionist D) defensive E) proactive

C) obstructionist

Wanda's doctor put her on a new medication because he gets a kickback from the pharmaceutical company for every prescription he writes, in spite of the fact that it isn't the best medication for Wanda. Her doctor violated his _______ ethics. A) governmental B) organizational C) occupational D) environmental E) individual

C) occupational

One thing that it is important to remember about shareholders is they A) bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals. B) are responsible for using a company's financial, capital, and human resources to increase its performance and thus its stock price. C) play an important role, but are not the company's only stakeholder group. D) are least interested in the company's profits. E) are usually regarded as the most critical stakeholder group.

C) play an important role, but are not the company's only stakeholder group.

Shia makes some changes in the production process to ensure employees can perform tasks without endangering their health and safety. Shia is employing the moral rights rule to A) hesitate to communicate to people outside the company for fear of them criticizing her decision. B) maximize the greatest good for the greatest number of people. C) seek to protect the rights and privileges of people affected. D) distribute benefits in fair ways but ignore harm. randomly distribute harms and benefits.

C) seek to protect the rights and privileges of people affected.

Gerald's Jewelry has a deep moral commitment to act responsibly in its sourcing of precious metals and gemstones. This is an example of _______ ethics. A) organizational B) governmental C) societal D) occupational individual

C) societal

The board and top managers of a nonprofit organization have considerable latitude to decide how they will spend the organization's resources because A) all monies earned are pumped back into the business. B) they are typically small organizations. C) the organization does not have shareholders. D) they are a private foundation. they receive contributions and government grants

C) the organization does not have shareholders.

Seok's company tries to balance the interests of different stakeholders in relation to the claims of other stakeholders. Which approach to social responsibility is the organization implementing? A) proactive B) obstructionist C) defensive D) accommodative E) offensive

D) accommodative

The practical rule states that an ethical decision is one that A) produces the greatest good for the greatest number of people. B) distributes benefits and harms in a fair way. C) is relevant to the financial effectiveness of the organization. D) can be communicated with no reluctance. E) best protects the rights of people affected.

D) can be communicated with no reluctance.

The _______ has organization-wide authority. Hence, organization members in any department can communicate instances of unethical behavior by their managers or coworkers without fear of retribution. A) stakeholder B) nation C) stockholder D) ethics ombudsperson E) manager

D) ethics ombudsperson

When faced with an ethical dilemma as a manager, Sanjay tries to reflect on his upbringing to decide between right and wrong. Sanjay is reflecting on _______ ethics. A) societal B) occupational C) religious D) individual E) organizational

D) individual

Brenda, the CEO of a manufacturing company, knew that her company followed the Environmental Protection Agency's (EPA) regulations for purifying waste water; however, new research found that those regulations where not strict enough and the drinking water would be affected. Brenda relied on her _______ and told the plant manager to go beyond the EPA's required level to assure that the company waste did not affect the community. A) social justice views B) practical rules C) occupational ethics D) moral scruples E) environmental principles

D) moral scruples

Bo gives a talk to his employees about standards that govern how members of their profession should conduct themselves. He is talking about _______ ethics. A) organizational B) governmental C) individual D) occupational E) societal

D) occupational

What approach to social responsibility is characterized by the highest level of social responsibility? A) obstructionist B) offensive C) defensive D) proactive E) accommodative

D) proactive

One managerial implication of the justice model is that to be ethical, managers should base their decisions on A) the effects the decision can have on stakeholders' rights. B) what provides maximum profits to the company. C) the personal situation of employees. D) whatever promotes a fair distribution of outcomes. E) the greatest good for the greatest number of people.

D) whatever promotes a fair distribution of outcomes.

Under the practical rule, for a business decision to be ethical, a manager would NOT be reluctant to communicate the decision to people outside the company when A) a typical person would be unaware of the harmful implications of the decision. B) he or she could blame the top management of the firm. C) a typical person wouldn't care about the decision. D) the decision, although unethical, would increase shareholders' wealth. a typical person would consider the decision acceptable

a typical person would consider the decision acceptable

The _______ stakeholder group is often considered to be the most critical. A) customers B) managers C) suppliers D) shareholders E) employees

A) customers

Jose is an employee of Carling company. Based only on this information, you know he must be a(n) A) manager. B) stakeholder. C) shareholder. D) owner. E) community member.

B) stakeholder.

Lana wasn't sure if her coworker Branson was correct when she said it was ok to take work home, but she had faith in Branson's ability to make good decisions, so she took the work home and hoped her boss wouldn't be mad. Lana was displaying A) self-interest. B) unethical behavior. C) rule breaking. D) trust in Branson. E) trust in her boss.

D) trust in Branson.

_______ are the moral principles and beliefs about what is the right or appropriate way to behave. A) Ethics B) Laws and regulations C) Values and norms D) Individual values E) Societal norms

A) Ethics

_______ ethics are standards that determine how people view their responsibilities to others and how they should act in situations when their own self-interest is at stake. A) Individual B) Organizational C) Occupational D) Governmental E) Societal

A) Individual

_______ are frequently in the position of having to juggle the interests of different stakeholders, including themselves. A) Managers B) Suppliers C) Shareholders D) Contractors E) Customers

A) Managers

_______ encourage employees to behave in a socially responsible manner. A) Tougher selection processes B) Ethical organizational cultures C) Conflicting interpersonal relations D) Stakeholder claims E) High compensation benefits

B) Ethical organizational cultures

_______ ethics are the guiding practices and beliefs through which a particular firm and its managers view their responsibilities to stakeholders. A) Societal B) Organizational C) Occupational D) Individual E) Governmental

B) Organizational

A company can act ethically toward employees and meet their expectations by A) improving their products over time and providing guarantees to customers about the integrity of their products. B) creating an occupational structure that fairly and equitably rewards organization members for their contributions. C) implementing a high-power distance culture and discouraging decentralized decision making. D) maximizing the shareholders' return on investments. E) selling customers quality products at a fair price and providing good after-sales service.

B) creating an occupational structure that fairly and equitably rewards organization members for their contributions.

Managers at Carpets and Flooring prevented employees from selling the company shares in their pension funds while the managers sold millions of dollars' worth of their own Carpets and Flooring stock. This illustrates the _______ approach to social responsibility . A) offensive B) obstructionist C) proactive D) accommodative E) defensive

B) obstructionist

The managers of Lehman Brothers, whose bankruptcy helped propel the 2008-2009 financial crisis, used loopholes in U.K. law to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition. This example illustrates the _______ approach to social responsibility. A) proactive B) obstructionist C) accommodative D) obligatory E) defensive

B) obstructionist

Which person is most likely to act unethically? A) Morris, who works in a company with a code of ethics B) Nitro, who puts his coworkers' needs above his own C) Ronny, who is struggling financially and has a family to support D) Alaine, who has an ethical manager E) Falulah, who is new to the job and is just learning the ropes

C) Ronny, who is struggling financially and has a family to support

_______ ethics are the standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and individual rights. A) Governmental B) Individual C) Societal D) Occupational E) Organizational

C) Societal

It is the responsibility of the _______ to determine if a CEO has the experience and integrity needed to head a company and be entrusted with the capital and wealth of the organization. A) chief financial officer B) shareholders C) board of directors D) ethics ombudsperson E) employees

C) board of directors

A company that expects its managers to behave ethically to the degree that they stay within the law, but no more, is acting with a(n) _______ approach to social responsibility. A) obstructionist B) offensive C) defensive D) accommodative E) proactive

C) defensive

Managers at a well-known company sold their stock in advance of other shareholders because they knew that their company's performance was about to fall. This demonstrates the _______ approach to social responsibility. A) proactive B) reactive C) defensive D) obstructionist E) accommodative

C) defensive

Emmanuel and his human resources team have adapted several existing company policies. Because he is unsure if all these policies can be implemented on ethical grounds, his team would best approach a(n) _______ to resolve the matter. A) ethical philosopher B) HR manager C) ethics ombudsperson D) legal advisor E) consumer court

C) ethics ombudsperson

shareholders are interested in how a company operates because they A) want to make sure the organization makes the most efficient use of resources. B) are responsible for the organization's capital resources. C) want to maximize the return on their investment. D) provide input for the goals of the organization. are responsible for the organization's financial resources

C) want to maximize the return on their investment.

A website offered free streaming and downloading of movies, games, and music. It was eventually shut down by the courts. Websites like these demonstrate that the pursuit of self-interest can lead to a(n) _______, a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way. A) ethical dilemma B) credo C) war of attrition D) "tragedy of the commons" E) moral dilemma

D) "tragedy of the commons"

_______ is the esteem or high repute that individuals or organizations gain when they behave ethically . A) Emotional value B) Moral standing C) Trust D) Reputation E) Social responsibility

D) Reputation

What is true of organizational ethics? A) They are standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities. B) Employees are much more likely to act unethically when a credo exists. C) Employees are more likely to act unethically when the company's top managers consistently endorse the ethical principles in its corporate credo. D) The individual ethics of a company's founders and top managers are especially important in shaping the organization's code of ethics. E) Top managers play the least important role in determining a company's ethics.

D) The individual ethics of a company's founders and top managers are especially important in shaping the organization's code of ethics.

According to the _______ approach to social responsibility, companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises. A) offensive B) defensive C) obstructionist D) accommodative E) proactive

D) accommodative

_______ can provide guidance when organization members are uncertain about whether an action is ethical. A) The accommodative manager B) The communications manager C) An ethics philosopher D) The personnel manager E) The ethics ombudsperson

E) The ethics ombudsperson

_______ is a person's confidence and faith in another person's goodwill. A) Emotional value B) Moral standing C) Social responsibility D) Reputation E) Trust

E) Trust

The town in which a large stone company has its headquarters is referred to as A) the company's social conscience. B) the company's labor force. C) the company's constituency. D) shareholders. E) a community.

E) a community.

" Do unto others as you would have them do unto you," is an example of the _______ principle . A) fundamental B) practical C) utilitarian D) justice E) moral rights

E) moral rights

Tax reform legislation signed into law by President Trump in late 2017 included a new 21% excise tax on _______ for salaries over $1 million. A) public company CEOs B) companies with overseas branches C) government employees D) small-business employees E) nonprofit employers

E) nonprofit employers

After a lengthy investigation, Legrand lost his license to practice law on charges of accepting bribes. Most likely, Legrand violated his _______ ethics. A) organizational B) individual C) governmental D) environmental E) occupational

E) occupational

The utilitarian rule states that an ethical decision is one that. A) can be communicated with no reluctance. B) distributes benefits and harms in an impartial manner. C) best protects the rights of people affected. D) increases the financial effectiveness of the organization. E) produces the greatest good for the greatest number of people.

E) produces the greatest good for the greatest number of people.

Smoking marijuana is illegal in many states; therefore, smoking marijuana is A) ethical. B) possibly unethical or ethical, depending on the circumstances. C) unethical. D) always unethical when used for medical purposes, whether it is legal or not. E) always ethical when used for medical purposes, whether it is legal or not.

possibly unethical or ethical, depending on the circumstances