MGMT Exam 1 Review (Ch. 4)

The Sarbanes-Oxley Act requires the ____ to vouch for the truthfulness and fairness of the firms' financial disclosures. (A) CEO (B) CFO (C) COO (D) CEO and CFO (E) CEO, CFO, and COO

CEO, CFO, and COO

A code of ethics will ensure ethical behavior by employees. (A) True (B) False

False

After Japan won the World Cup one of its players apologized profusely for appearing to criticize the coach. American athletes in many sports criticize fellow players, coaches, and managers. This is an example of how ethical behavior is similar across cultures. (A) True (B) False

False

Awarding funds or gifts to individuals is called philanthropic giving. (A) True (B) False

False

Blowing your own horn is the disclosure by an employee of the illegal or unethical conduct on the part of others within the organization. (A) True (B) False

False

A corporate social audit is a formal and thorough analysis of the effectiveness of a firm's social performance. (A) True (B) False

True

A manager paying an employee less than he deserves, simply because the manager knows the employee cannot afford to quit or risk losing his job by complaining, might be considered unethical. (A) True (B) False

True

A manager who discriminates against a fifty year old man in hiring is exhibiting both unethical and illegal behavior. (A) True (B) False

True

Information technology and privacy continues to be an ethical issue. (A) True (B) False

True

Organizations themselves do not have ethics. (A) True (B) False

True

Under U.S. law, it is illegal for a U.S. firm operating in a foreign country to pay bribes to get what it needs. Natives of some of those same countries consider the payment of bribes to be perfectly acceptable. Which of the following influences may account for this difference? (A) Cultural differences (B) Economic influences (C) Religious influences (D) Educational systems (E) All of these choices

cultural differences

Which of the following is NOT an example of a situation in which a manager is likely to be called upon to make an ethical decision regarding the relationship of the firm to the employee? (A) Hiring and firing (B) Customer relations (C) Working conditions (D) Garnishment of wages (E) Drinking or drug problem

customer relations

Auto manufacturers are required to attain a certain average fuel-efficiency level for all the cars they sell. They try to attain the mandated levels, but they also try to get deadline extensions. The auto makers' approach to social responsibility is a(n) ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

defensive

Companies that meet their economic and legal responsibilities but do not go beyond them are exhibiting a(n) ____ approach to social responsibility. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

defensive

____ justice relates to the degree of fairness people see in how they are treated by others in their organization. (A) Organizational (B) Distributive (C) Procedural (D) Interpersonal (E) Informational

interpersonal

The norm of ____ means determining whether the act is consistent with what most people would see as fair. (A) caring (B) justice (C) rights (D) virtue (E) utility

justice

When IBM makes large contributions to the performing arts, it is an example of which general area of social responsibility? (A) General social welfare (B) The natural environment (C) Legal compliance (D) The task environment (E) The internal cultural environment

General social welfare

Our government uses the tax codes to indirectly influence our behavior. (A) True (B) False

True

Secrecy and confidentiality are major considerations in the relationship of the employee to the firm. (A) True (B) False

True

The Food and Drug Administration's focus on consumer-related concerns is a form of direct regulation. (A) True (B) False

True

The Internet is also seen as having the potential to play an important role in natural resource conservation, as many e-commerce businesses and transactions are reducing both energy costs and pollution. (A) True (B) False

True

The highest degree of social responsibility that an organization can exhibit is referred to as the proactive stance (A) True (B) False

True

Trust is indispensable to any business transaction. (A) True (B) False

True

Which of the following statements is NOT one of the arguments offered in favor of social responsibility? (A) Corporations are citizens. (B) Corporations have ample resources. (C) Corporations lack expertise. (D) Corporations create problems and should help solve them. (E) All of these choices

corporations lack expertise

Genzyme is a pharmaceutical company that manufactures Cerdase, a drug that treats a genetic illness called Gaucher's disease, which is a life-threatening illness that affects 20,000 people worldwide. A year's supply of the drug costs $200,000. Given what you know about the various approaches to social responsibility, you might assume that Genzyme takes a(n) ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

defensive

Managers who agree with Milton Friedman's economic arguments against social responsibility will most likely take an approach to social responsibility known as a(n) ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

defensive

Politicians caught in extramarital affairs usually deny wrong doing until there is physical evidence to contradict the politician's claims. This is an example of the ____ approach to responsibility. (A) defensive (B) accommodative (C) proactive (D) reactive (E) participative

defensive

When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. When they sell at Wal-Mart the company eventually donates to their troop. Target does not allow any Girl Scout to sell cookies in front of stores. Target is an example of the ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

defensive

Which of the following is NOT one of the means by which businesses typically attempt to influence government? (A) Favors (B) Lobbying (C) Direct contributions to election campaigns (D) Political action committees (E) Personal contacts

direct contribution to election campaigns

The Environmental Protection Agency is the agency charged with enforcement of many of the environmental laws in the United States. This agency represents a form of (A) indirect regulation. (B) direct regulation. (C) legislative mandate. (D) government coercion. (E) legislative intervention.

direct regulation

When the SEC brought charges against Bernard Madoff and his CFO, it was exercising its power of (A) political favors. (B) legislative intervention. (C) indirect regulation. (D) lobbying. (E) direct regulation.

direct regulation

Which of the following is the MOST important action that top managers can take to promote ethical behavior? (A) Lobby for legislation dealing with ethics (B) Adhere to ethical standards themselves (C) Punish those who are unethical (D) Establish organizational policies (E) Establish a fair performance appraisal system

Adhere to ethical standards themselves

The ____ is not a government regulatory agency. (A) Securities and Exchange Commission (B) Federal Aviation Administration (C) Federal Communications Commission (D) American Civil Liberties Union (E) Environmental Protection Agency

American civil liberties union

Ethics are cultural beliefs about whether behavior, actions, or decisions are right or wrong. (A) True (B) False

False

If competitors from different countries are giving bribes to get contracts in developing countries, it is acceptable under U.S. law that a U.S. company can do the same if it can show competitive reasoning. (A) True (B) False

False

Informational justice relates to the degree of fairness people see in how they are treated by others in their organization. (A) True (B) False

False

One way the government regulates or tries to influence businesses is by using political action committees. (A) True (B) False

False

Organizations that take an obstructionist approach to social responsibility meet their basic legal obligations but nothing more. (A) True (B) False

False

Procedural justice refers to people's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization. (A) True (B) False

False

The Sarbanes-Oxley Act requires CIOs to personally vouch for the truthfulness and fairness of their firms' financial disclosures. (A) True (B) False

False

The ethical norm justice, means whether a particular act optimizes what is best for the organization's constituencies. (A) True (B) False

False

The existence of laws and regulations makes it necessary for companies that strive to be responsible to their stakeholders to concentrate first and foremost on government. (A) True (B) False

False

The extent to which an organization and its members follow basic ethical standards of behavior is called legal compliance. (A) True (B) False

False

Westerman is an American company that makes cylindrical steel containers used to safely ship uranium. A Westerman executive is accused of bribing Russian officials to win contracts. This would be illegal in the U.S., but is permissible in Russia. (A) True (B) False

False

The National Football League Players Association agreed to a salary cap. This is an example of how the (A) culture affects employees. (B) employees and organization treat other economic agents. (C) organization treats the employees. (D) employees treat the organization. (E) code of ethics affects employees.

employees treat the organization

Laws that deal with how agrichemical companies dispose of hazardous wastes are examples of (A) consumer protection regulation. (B) fair labor practice. (C) environmental protection regulation. (D) safety and health regulation. (E) legislative intervention.

environmental protection regulation

Which of the following is NOT an example of a formal approach to social responsibility? (A) Legal compliance (B) Ethical compliance (C) Evaluative compliance (D) Philanthropic giving (E) Ethics committee

evaluative compliance

Advertising for Abercrombie and Fitch uses overt sexuality to sell clothes. Ads for Abercrombie, the pre-teen sizes, are only moderately less sexual and products include swim wear with padding in the chest. Many people object to this advertising. This is an example of the relationship of the (A) employee to the firm. (B) firm to the employee. (C) firm to the environment. (D) firm to competitors. (E) employee to the environment.

firm to the environment

The Nation Football League executives shorted unrestricted free agency requirements from six seasons to four, which gave individual players greater mobility and negotiating power. This is an example of how the (A) culture affects employees. (B) employees and organization treat other economic agents. (C) organization treats the employees. (D) employees treat the organization. (E) code of ethics affects employees.

organization treats the employees

A firm is taking a(n) ____ stance when it actively looks for ways to benefit society as well as meeting its obligations and responding to requests. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

proactive

In Major League Baseball, the Cardinals were accused of hacking into the Astros computer system to steal information. The former General Manager of the Cardinals now worked for the Astros. The Cardinals had a log of past passwords used by the GM, which enabled front office executives to enter the Astros' system. The FBI investigated the incident. This is an example of ethical issues with ______. (A) technology (B) leadership (C) organizational stakeholders (D) corporate governance (E) technology and leadership

technology and leadership

Any effort to enhance an organization's ethical behavior must begin with (A) the appointment of an ombudsman. (B) a review of the internal environment. (C) the development of a formalized code of ethics. (D) a modification of the ethical codes of employees who interact with stakeholders. (E) the support of top management.

the support of top management

The University of Michigan rented the stadium to a couple, both graduates, for their wedding on the fifty yard line. The couple said it was a dream come true. This is an example of (A) the treatment of the organization by the individual (B) organization culture. (C) the treatment of other agents by the organization. (D) the organizational environment. (E) the treatment of employees by the organization.

the treatment of other agents by the organization

Many builders are using fiber-cement siding to build houses. This siding is best painted with a soy-based, environmentally friendly paint. Most paint is not biodegradable because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with the soy-based paint would be an example of which general area of social responsibility? (A) General social welfare (B) The natural environment (C) Legal compliance (D) The task environment (E) The internal cultural environment

The natural environment

The Coca-Cola Foundation awarded grants to communities for water conservation and community recycling. This is an example of which area of social responsibility? (A) General social welfare (B) The natural environment (C) Organizational stakeholders (D) The task environment (E) The internal cultural environment

The natural environment

Which of the following is NOT a way in which the organizational context contributes to the use of unethical practices? (A) A manager becomes aware of an unethical practice, but allows it to continue. (B) Unethical activity is encouraged as long as it is in the best interests of the firm. (C) Rewards are provided to those who succeed at the cost of others. (D) An employee is promoted for finding a way around a legal regulation designed to protect the environment. (E) A manager decides to hire a relative to a position for which the relative is qualified.

a manager decides to hire a relative to a position for which the relative is qualified

Which of the following is the MOST common approach to the management of ethics? (A) Top management support (B) A multipage book of organizational policies and procedures (C) An unwritten code of ethics (D) A written code of ethics and top management support (E) government regulation

a written code of ethics and top management support

Someone's ethical standards are developed as a child in response to his or her (A) parents' and other adults' behavior. (B) peers. (C) religious beliefs. (D) parents' and other adults' behavior and peers. (E) All of these are correct

all of these are correct

Which of the following is NOT one of the arguments offered by those who oppose corporations habitually engaging in social responsibility programs? (A) Based on their legal status, organizations are technically prohibited from such activities. (B) Such activity detracts from the basic mission society has given business. (C) Social responsibility programs have the potential to create substantial conflicts of interest. (D) Business executives lack the expertise to make decisions about social programs. (E) There is too much potential for the abuse of the power that corporations have already without adding to it.

based on their legal status, organizations are technically prohibited from such activities.

Which of the following statements is NOT one of the arguments offered in favor of social responsibility? (A) Business should fix the problems it creates. (B) Businesses have resources needed to solve some social problems. (C) Business executives are uniquely qualified to make decisions about social programs. (D) Business is a partner in society with the government and the general population. (E) Corporations have many of the same obligations and privileges as private citizens.

business executives are uniquely qualified to make decisions about social programs

Judith Cruz, the executive director of the Treasure Coast Food Bank, had a logistics problem. She contacted Wal-Mart to ask for management advice. Members from Wal-Mart's distribution team arrived at the food bank, helping it improve its warehousing, sorting, and routing, to allow more food deliveries per week. The food bank went from serving 42,000 meals per week to more than 100,000 meals. The partnership negates the argument against social responsibility that says (A) based on their legal status, organizations are technically prohibited from such activities. (B) such activity detracts from the basic mission society has given business. (C) social responsibility programs have the potential to create substantial conflicts of interest. (D) business executives lack the expertise to make decisions about social programs. (E) there is too much potential for the abuse of the power that corporations have already without adding to it.

business executives lack the expertise to make decisions about social programs.

The purpose of a political action committee (PAC) is to (A) lobby on behalf of trade associations. (B) circumvent laws regarding donations by businesses to election campaigns. (C) provide opportunities for personal contacts with legislators. (D) ensure that businesses do not attempt to bribe officials. (E) prevent businesses from getting excessive tax breaks.

circumvent laws regarding donations by businesses to election campaigns

The Food and Drug Administration (FDA) is an example of which of the following areas of government regulation? (A) Consumer protection (B) Safety and health of employees (C) Safety and health of consumers (D) Environmental protection (E) Investor related issues

consumer protection

Companies that take a(n) ____ stance to social responsibility cross the ethical or legal line that separates acceptable from unacceptable practices, and often deny or cover up their actions. (A) accommodative (B) reactive (C) participative (D) defensive (E) obstructionist

obstructionist

The inclusion of a biologist in decisions that affect the local community is an example of which area of social responsibility? (A) General social welfare (B) The natural environment (C) Legal compliance (D) The task environment (E) The internal cultural environment

the natural environment

Boards of directors are responsible for which area of emerging ethical issues? (A) Ethical leaders (B) Ethics issues in information technology (C) Ethics issues in privacy (D) Corporate governance (E) None of these choices

corporate governance

For firms that do NOT want to take a proactive stance with respect to social responsibility, the next most responsible position in the eyes of proponents of social responsibility would be a(n) ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

accommodative

The firm using a(n) ____ approach to social responsibility meets its obligations and is also willing to respond to appropriate societal requests. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

accommodative

When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. When they sell at Wal-Mart the company eventually donates to their troop. Target does not allow any Girl Scout to sell cookies in front of stores. Shop Rite is an example of the ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

accommodative

Imagine that you are a manufacturer of athletic shoes. Within the organizational context, which of the following ethical behaviors can occur? (A) Government officials inspect employee working conditions. (B) Regulatory agents monitor the company's adherence to ADA regulations. (C) Competitor promotes a low-cost, well-made golfing shoe. (D) Each employee follows his or her own personal code of ethics. (E) All of these choices

all of these choices

Joshua is aware that his peers take office supplies home for personal use. To determine if behavior is ethical Joshua should determine (A) whether the act optimizes what is best for everyone. (B) whether the behavior respects the rights of the individuals involved. (C) whether the behavior is consistent with what he sees as being fair. (D) whether the behavior is consistent with people's responsibilities to each other. (E) All of these choices

all of these choices

The primary economic agents of interest for an organization include (A) customers. (B) competitors. (C) supplies. (D) dealers. (E) All of these choices

all of these choices

The success of any culture to promote ethical behavior in a society depends on (A) a national culture that values ethical behavior. (B) top officials fostering an appropriate culture. (C) a legal environment that prohibits unethical practices. (D) an economic environment conducive to ethical practices. (E) all of these choices.

all of these choices

Which of the following is a basic area of government regulation of business? (A) Consumer protection (B) Safety and health of employees (C) Safety and health of consumers (D) Environmental protection (E) All of these choices

all of these choices

Which of the following is an important factor in how the organization treats economic agents? (A) Competitors (B) Unions (C) Customers (D) Owners/stockholders (E) All of these choices

all of these choices

Which of the following is part of the organizational context in which ethical/unethical behaviors occur? (A) Organizational practices (B) The regulatory environment (C) The competitive environment (D) Personal ethical standards (E) All of these choices

all of these choices

Traditionally, experts have suggested a three-step model for applying ethical judgments to situations that may arise during the course of business activities. The first step is to (A) gather the relevant factual information. (B) appoint an ombudsman. (C) locate a mediator. (D) determine what is lacking in the organization culture. (E) determine the most appropriate moral values.

gather the relevant factual info

Kweku Adoboli was arrested after losing $2.3 billion of UBS global equities. Adoboli's actions were (A) legal and ethical. (B) moral. (C) legal but unethical. (D) illegal and unethical. (E) illegal but ethical.

illegal and unethical

Women in Saudi Arabia have been arrested for driving. Their actions are (A) legal and ethical. (B) moral. (C) legal but unethical. (D) illegal and unethical. (E) illegal but ethical.

illegal but eithical

Bernard Madoff defrauded clients out of millions of dollars. The probability that Madoff's employees have high ethical behavior is minimal due to (A) a national culture that values ethical behavior. (B) its top management fostering an inappropriate culture. (C) a legal environment that prohibits unethical practices. (D) an economic environment conducive to ethical practices. (E) its low-pressure competitive environment.

its top management fostering an inappropriate culture

Congressman Anthony Weiner resigned after sending naked pictures of himself to adult women who were not his wife. His actions were (A) legal and ethical. (B) justified. (C) legal but unethical. (D) illegal and unethical. (E) illegal but ethical.

legal but unethical

The National Organization of Women works to influence legislators to support NOW's positions. NOW is a (A) political action committee. (B) government stakeholder. (C) public regulator. (D) lobbyist. (E) multinational corporation.

lobbyist.

Which of the following statements about legal compliance is TRUE? (A) Legal compliance also guarantees ethical compliance. (B) Despite the name, legal departments are not usually involved with legal compliance issues. (C) Top management usually retains management of legal compliance issues. (D) Legal compliance is usually handled by a committee of managers from various functional areas. (E) Managing legal compliance is usually delegated to the appropriate managers.

managing legal compliance is usually delegated to the appropriate managers

Judith Cruz, the executive director of the Treasure Coast Food Bank, had a logistics problem. She contacted Wal-Mart to ask for management advice. Members from Wal-Mart's distribution team arrived at the food bank, helping it improve its warehousing, sorting, and routing, to allow more food deliveries per week. The food bank went from serving 42,000 meals per week to more than 100,000 meals. This is an example of the ____ approach to social responsibility. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

proactive

L'Oreal has a foundation responsible for corporate philanthropy. This is a(n) ____ stance. (A) defensive (B) accommodative (C) proactive (D) reactive (E) participative

proactive

NBD, a financial institution headquartered in Detroit, matches its employees' contributions to universities and colleges. This is an example of the ____ approach to social responsibility. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

proactive

Sealed Air packages food, which preserves it and leads to less waste. Sealed Air launched an initiative in China to package chicken, because more than half of the chicken there spoils before consumption. Sealed Air's initiative focuses on an untapped market and is an example of the a(n)____ stance toward social responsibility because it helps the environment, farmers, and consumers of China. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) participative

proactive

The Siemens Foundation uses money to support and promote the importance of math, science, and technology education. It is taking a(n) ____ approach to social responsibility. (A) obstructionist (B) defensive (C) accommodative (D) proactive (E) reactive

proactive

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular healthcare maintenance instead of only when they are sick. Wrigley is taking a(n) ____ approach to social responsibility. (A) proactive (B) offensive (C) defensive (D) participative (E) accommodative

proactive

When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. When they sell at Wal-Mart the company eventually donates to their troop. Target does not allow any Girl Scout to sell cookies in front of stores. Wal-Mart is an example of the ____ stance. (A) reactive (B) obstructionist (C) proactive (D) accommodative (E) defensive

proactive

A college student was accused of sexual assault two years after the incident. He had to defend himself before a three person board without a lawyer or the ability to ask the accuser questions. The university expelled him. A lawyer then obtained the accuser's text messages from the evening in question that clearly showed consent and evidence of another consensual act with a second man later that night. The university said it followed the Obama administrations guidelines during the procedure and was maintaining the expulsion. The student was denied ____ justice. (A) organizational (B) distributive (C) procedural (D) interpersonal (E) informational

procedural

All of the following are basic approaches to social responsibility EXCEPT (A) accommodative stance. (B) defensive stance. (C) reactive stance. (D) proactive stance. (E) obstructionist stance

reactive stance

All of the following are common approaches that businesses use to influence government EXCEPT (A) personal contacts. (B) rebates. (C) lobbyists. (D) donations to PACs. (E) favors.

rebates.

The Internet and e-commerce affects the natural environment by (A) reducing energy costs and pollution. (B) sending electronic pulses into the air. (C) increasing package delivery and increasing pollution. (D) depleting the ozone layer. (E) decreasing charitable contributions.

reducing energy costs and pollution

Business influence on government relies on all EXCEPT which of the following? (A) Lobbying (B) Social pressure (C) Cultural influence (D) Regulation (E) Personal contacts

regulation

According to the concept of managerial ethics, which of the following is NOT considered an economic agent? (A) Competitors (B) Suppliers (C) Unions (D) Regulatory agencies (E) Owners/stockholders

regulatory agencies

The mayor of NYC convinced the Rent Guidelines Board to approve a rent freeze. Landlords complained, but could not change it. This is an example of the (A) relationship of the employee to the environment. (B) relationship of the employee to the firm. (C) relationship of the firm to the employee. (D) relationship of the firm to other economic agents. (E) relationship of the firm to its competitors.

relationship of the firm to other economic agents

Some companies require employees to only use their company cell phones for work related activities. Companies can check phone records, but it is a tedious process that would be unnecessary as long as employees do the right thing. This is an example of how employees treat the organization regarding ______. (A) conflicts of interest (B) secrecy (C) confidentiality (D) honesty (E) all of the above

secrecy

Which of the following represents a major shortcoming associated with the implementation of codes of ethics and ethics training programs? (A) They often fail to help people deal with the consequences of their actions. (B) Usually, they are not very comprehensive in coverage. (C) Usually, they are too complicated. (D) They often fail to give specific guidance about what is ethical. (E) They are often given only lip service by middle management.

they often fail to help people deal with the consequences of their actions

All of the following issues stem from how employees treat the organization EXCEPT (A) conflicts of interest. (B) wages and working conditions. (C) secrecy and confidentiality. (D) employee honesty. (E) misappropriation of organizational resources.

wages and working conditions