MGMT 2100- Chapter 4: Ethics and Social Responsibility

It ____ pay to be socially responsible.

does

A coworker of yours consistently takes 20-minute breaks-10 minutes longer than management allows. This is an example of: a. political deviance. b. employee shrinkage. c. production deviance. d. property deviance.

c

In the context of principles of ethical decision making, the _______ states that the law represents the minimal moral standards of society, so one should never take any action that violates the law. a. principle of individual rights b. principle of personal virtue c. principle of distributive justice d. principle of government requirements

d

When Joe says that it's important for Theo Chocolate to "create lasting change" in people's lives and the environment, he is making a statement about the ethics of his company. This statement suggests that Joe's decisions are ethically intense because of: a. Temporal immediacy b. Social consensus c. Probability of effect d. Magnitude of consequences

d

Suppose that the U.S. government wanted to strictly regulate chocolate production in the United States, and they were considering a law that would demand that all chocolate manufacturers put only certain percentages of chocolate in chocolate bars. If Theo Chocolates wanted to take action to make sure that law wasn't passed, what should they do? Check all that apply. a. Create a political action committee to distribute money to politicians who support Theo Chocolate's position. b. Have Joe reach out to the politicians he knows and explain why the law would harm the chocolate industry. c. Avoid giving favors to politicians who will vote against the new law. d. Hire a professional lobbyist to represent Theo Chocolates' concerns in Congress.

- Create a political action committee to distribute money to politicians who support Theo Chocolate's position. - Have Joe reach out to the politicians he knows and explain why the law would harm the chocolate industry. - Hire a professional lobbyist to represent Theo Chocolates' concerns in Congress.

As VP of sales and marketing, Debra is very interested in the likely impact of corporate social responsibility (CSR) on Theo Chocolates. She asks you for your opinion. What do you tell her? State all that apply. - Companies known for high corporate social responsibility tend to attract a lower caliber of employee. - There is no guarantee that socially responsible businesses will be profitable. - The costs of social responsibility can be offset by gaining a better corporate reputation. - Studies have shown that there is a small, positive relationship between being socially responsible and economic performance.

- There is no guarantee that socially responsible businesses will be profitable. - The costs of social responsibility can be offset by gaining a better corporate reputation. - Studies have shown that there is a small, positive relationship between being socially responsible and economic performance.

The first step in a compliance program under the U.S. Sentencing Commission Guidelines for Organizations is to: a. establish standards and procedures. b. encourage employees to report violations. c. enforce standards consistently and fairly. d. delegate decision-making authority specifically to ethical employees.

a

Which of the following ethical principles holds that one should never take any action that is unkind or harms a sense of community, such as the positive feelings that come from working together to accomplish a commonly accepted goal? a. The principle of religious injunctions b. The principle of individual rights c. The principle of long-term self-interest d. The principle of personal virtue

a

Which of the following arguments also support the need for companies to adopt positions of social responsibility? Check all that apply. a. Organizations have more power than most underprivileged people, so they are responsible for helping those people get ahead in life. b. People should be allowed to choose their charities for themselves. When organizations donate money to charity, the bottom line suffers. c. People who put money into an organization deserve the maximum possible return on their investment. d. Organizations have the knowledge and resources to do good in the community, so they are responsible for helping others.

a and d

Companies that are ethically responsible have already met ______ responsibilities. a. economic and social b. economic and legal c. discretionary and economic d. legal and discretionary

b

If a company's approach to social responsibility is to "Do only what is legally required," then it is likely utilizing which approach? a. Proactive strategy b. Defensive strategy c. Accommodative strategy d. Reactive strategy

b

In the context of ethical intensity of decisions, _______ refers to the chance that something will happen that results in harm to others. a. social consensus b. probability of effect c. temporal immediacy d. proximity of effect

b

Under the U.S. Sentencing Commission Guidelines for Organizations, the base fine for an organization involved in unethical behavior is computed by: a. examining the written code of ethics of the organization. b. determining the level of offense that has occurred in the organization. c. calculating the number of employees in the organization. d. assessing the net worth of the organization.

b

Rose found strong evidence that her supervisor was stealing confidential documents from the company. She immediately reported her manager's actions to the top management. Rose's action is an example of: a. personal aggression. b. brainstorming. c. whistle-blowing. d. property deviance.

c

Which of the following scenarios illustrates the strongest temporal immediacy? a. Employees at Darwin Pharmaceuticals will stop receiving incentives next year as a result of deteriorating sales performance. b. Tox-O Chemical Corp. will make a nearby stream unfit for aquatic life within 20 years by regularly dumping its toxic wastes into the stream. c. Bronwyn Inc. will have to lay off 50 employees before the following week because of poor economic conditions. d. Administrative assistants at Carson Office Supply will probably have carpal tunnel syndrome as a result of typing on computer keyboards for eight hours every day.

c

A toy manufacturer has just learned that the small, button nose on the stuffed teddy bear it produces might detach and become a choking hazard for young children. If this company is using a defensive strategy, it might: a. claim that if parents put the bear in the washing machine, the button stitching will come loose, causing it to detach. As a result, parents should not put the bear in the washing machine. b. create a set of industry-wide guidelines to help prevent choking hazards on toys for children. c. recall the stuffed bears, offer a refund to all customers, and redesign the bear to have a felt nose. d. issue a statement apologizing for the choking hazard and recall the stuffed bears.

d

An eyeglass company would like to use a proactive strategy in regard to social responsibility. Which of the following strategies would be most appropriate for a proactive strategy? a. Sell eyeglasses to families in need for a discounted price. Families must meet income requirements to qualify. b. Donate used glasses to underprivileged children in developing countries. c. Donate one pair of eyeglasses to a child in need for every pair purchased. d. Partner with organizations to provide training to low-income entrepreneurs in developing countries so that they can sell affordable eyeglasses to people in need.

d

Identify a true statement about the relationship between social responsibility and economic performance of companies. a. Socially responsible companies always succeed in maximizing profits. b. A huge trade-off exists between being socially responsible and economic performance. c. Businesses predominantly become less profitable when they become socially responsible. d. There is no guarantee that socially responsible companies will be profitable.

d

Joe and Debra are deeply interested in the well-being of the cocoa farmers they buy from. They make sure that they follow fair trade standards when buying cocoa, and they hold their own manufacturing units to the same standards they hold their suppliers to. In doing this, Theo Chocolates is assuming what degree of social responsibility? a. Accommodative stance b. Defensive stance c. Obstructionist stance d. Proactive stance

d

Jose is a manager at Zoien Corp. He wants to hire an honest person for the position of software engineer at his firm. While interviewing candidates, Jose asks each candidate, "What would you do if someone in the management asked you to do something unethical?" Which of the following types of tests is Jose using to screen the candidates? a. An aptitude-based integrity test b. A personality-based integrity test c. A covert integrity test d. An overt integrity test

d

Marika always sticks to her principles when making a decision even if the decision conflicts with the law. According to Kohlberg's stages of moral development, Marika is at the _____. a. law and order stage b. social contract stage c. punishment and obedience stage d. universal principle stage

d

Those in favor of the shareholder model say that the only social responsibility that organizations have is to: a. achieve long-time survival. b. divert wealth toward society. c. make employees happy. d. maximize profits.

d

Which of the following actions is an example of whistle-blowing? a. Managers ignoring employees who do not maintain office timings b. Employees turning up late to work and lying to the top management about it c. Managers drinking at the workplace and violating workplace rules d. Employees reporting to authorities that coworkers are stealing money from clients

d

Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds its suppliers. This type of behavior encourages more ethical decision-making by ___________________ sends a powerful message to employees and customers.

establishing a specific code of ethics

If company employees are engaged in unethical activity, the U.S. Sentencing Commission can impose a base fine of up to _______ ,____________ company managers knew about the unethical behavior.

$150 million, whether or not

Compliance Program steps from the U.S Sentencing Commission Guidelines for Organizations

Step 1: Establish - Standards and Procedures Step 2: Assign - Upper level managers to be in charge Step 3: Delegate - Decision making authority only to ethical employees Step 4: Encourage - Employees to report violations Step 5: Train - Employees on Standards and Procedures Step 6: Enforce - Standards Consistently and Fairly Step 7: Improve - Program after Violations

The most basic level of social responsibility requires that a company _______. a. obey the law b. be a good corporate citizen c. be ethical d. be profitable

d

Which of the following ethical principles holds that one should never take any action that is unkind or harms a sense of community, such as the positive feelings that come from working together to accomplish a commonly accepted goal? a. The principle of long-term self-interest b. The principle of individual rights c. The principle of personal virtue d. The principle of religious injunctions

d

_______ indirectly estimate job applicants' honesty by measuring psychological traits such as dependability and conscientiousness. a. Overt integrity tests b. Covert integrity tests c. Aptitude-based integrity tests d. Personality-based integrity tests

d

Generally, there _______ a trade-off between being socially responsible and economic performance.

is not

If a company's employees are found guilty of unethical behavior, the U.S. Sentencing Commission can impose a base fine and multiply that fine by up to __ times, based on the organization's _____.

4, culpability

A company using a social responsiveness strategy in which it does less than society expects is using: a. a reactive strategy. b. a defensive strategy. c. an accommodative strategy. d. a proactive strategy.

a

A(n) _______ is a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations. a. defensive strategy b. reactive strategy c. accommodative strategy d. proactive strategy

a

In the context of ethical intensity of decisions, _______ is the time between an act and the consequences the act produces. a. temporal immediacy b. probability of effect c. magnitude of consequences d. proximity of effect

a

Which of the following are examples of production deviance? Check all that apply. a. Employee shrinkage b. Damaging equipment c. Cyberloafing d. Leaving early e. Taking long breaks

c, d, e

Johnson & Johnson's reputation would lead you to believe that it is operating at a ______ level of corporate responsibility.

discretionary

Which of the following are considered primary stakeholders of an organization? a. Trade associations b. Local communities c. The media d. Special interest groups

b

Which of the following are considered secondary stakeholders of an organization? a. Suppliers b. Trade associations c. Customers d. Employees

b

Which of the following statements is true of social responsibility and economic performance? a. Being socially responsible guarantees business success. b. There is no trade-off between being socially responsible and economic performance. c. Socially responsible companies experience vastly different ups and downs than traditional businesses do. d. There is no inherent relationship between social responsibility and economic performance.

b

A tobacco company taking a reactive stance to the claims that smoking causes cancer would: a. place a warning label on cigarette packages about the dangers of smoking. b. sponsor advertisements on the impact that smoking can have on your health. c. stop selling cigarettes as they are harmful to your health and actively warn consumers about the dangers of tobacco use. d. create an advertising campaign, suggesting that breathing secondhand smoke was less dangerous than drinking milk.

d

In order to create an ethical company culture, the first objective of ethics training is to: a. caution employees about the consequences of reporting violations. b. delegate the ethical decision-making authority to all employees. c. assign upper-level managers to be in charge of ethical responsibilities. d. develop employees' awareness of ethics.

d

In the carrot-and-stick approach used by the law to determine punishment for unethical behavior, the stick signifies: a. the incentive in the absence of any offense. b. the incentive for cooperating with federal authorities c. the reduced fine for having an effective compliance program. d. the threat of heavy fines based on the level of offense.

d

In the context of principles of ethical decision making, the _______ states that one should never take an action that does not result in greater good for society. a. principle of personal virtue b. principle of distributive justice c. principle of individual rights d. principle of utilitarian benefits

d

The fact that there is a criminal investigation pending against Johnson & Johnson suggests that regulators feel the company is not meeting its obligations at a ________ level of corporate responsibility.

legal

The ___________ assigns punishments to companies whose employees are involved in _______ forms of workplace deviance.

U.S. Sentencing Commission, serious

Several coworkers of yours at the local swimming pool have been taking snacks from the snack bar without paying. This is an example of: a. property deviance. b. personal aggression. c. political deviance. d. production deviance.

a

Which of the following are examples of political deviance? Check all that apply. a. Blaming other for mistakes b. Employee shrinkage c. Personal aggression d. Spreading rumors about coworkers e. Cyberloafing

a, c, d

A company using a(n) _____ will anticipate responsibility for a problem before it occurs, do more than expected to address the problem, and lead the industry in its approach. a. reactive strategy b. defensive strategy c. proactive strategy d. accommodative strategy

c

As a manager, when Vijay makes decisions, he always thinks about how he would feel if his decision was reported on the evening news. Vijay uses the ________. a. principle of religious injunctions b. principle of utilitarian benefits c. principle of personal virtue d. principle of long-term self-interest

c

In the carrot-and-stick approach used by the law to determine punishment for unethical behavior, the carrot signifies: a. heavy incentives for whistleblowing. b. heavy fines for unethical behavior. c. reduced fines for having an effective compliance program. d. reduced incentives for less money spent on social causes.

c

________ can estimate job applicants' honesty by asking them directly what they think or feel about theft or about punishment of unethical behaviors. a. Overt integrity tests b. Aptitude-based integrity tests c. Covert integrity tests d. Personality-based integrity tests

a

In the context of principles of ethical decision making, the _______ states that the law represents the minimal moral standards of society, so one should never take any action that violates the law. a. principle of distributive justice b. principle of personal virtue c. principle of government requirements d. principle of individual rights

c

When Rubberstamp Productions, previously a small-time production house, grew in size, the first thing its chief executive officer (CEO) did was establish a set of guidelines that detailed all the principles, standards, and procedures to be followed in the company's line of business. The CEO set specific standards on topics ranging from treatment of coworkers to protection of the environment to maintenance of financial records. This scenario illustrates that the CEO developed a _____. a. performance appraisal document b. cognitive map c. code of ethics d. database of employee records

c

The managers at Johnson & Johnson who authorized the buyback of defective products might have endorsed Milton Friedman's shareholder, or profit-maximizing view. Which of the following arguments also support Friedman's position? Check all that apply. a. Organizations are responsible for acting as good citizens in the society in which they operate. b. Organizations must act in a sustainable fashion. In the long run, what is good for the environment will be good for the organization. c. Organizations must make money to stay in existence. Making money, then, should be the sole focus of an organization's activities. d. Companies exist only to make money for people who invest in them.

c, d

Codes of ethics are effective if which of the following are true. Check all that apply. a. Management develops practical ethical standards and procedures specific to the company's line of business. b. Training on the code of ethics is given by top-level managers on a monthly basis. c. The code of ethics is communicated to employees. d. The code of ethics is based on society's standards and expectations rather than the company's mission and vision.

a and c

A college freshman you know wants to watch a movie that was released last month. His roommates download a free, pirated copy of the movie from a website and ask him to join them when watching it. He refuses as he knows that it is illegal to download and watch pirated movies. He is afraid he might be penalized if caught. According to Kohlberg's stages of moral development, the freshman is at the _____ of moral development. a. law and order stage b. instrumental exchange stage c. punishment and obedience stage d. social contract stage

c

A company that accepts responsibility for a problem and does all that society expects to solve that problem is using: a. a reactive strategy. b. a defensive strategy. c. a proactive strategy. d. an accommodative strategy.

d

According to the _______, management's most important responsibility is the firm's long-term survival. a. shareholder model b. normative model c. media advocacy model d. stakeholder model

d

In the context of ethical intensity of decisions, _______ refers to how much an act affects the average person. a. proximity of effect b. probability of effect c. concentration of effect d. deviance of effect

c