MGMT Exam 1 Review (Ch. 4)
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
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
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
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
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
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
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 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
____ is a thorough, formal analysis of the effectiveness of a firm's response to social responsibility. (A) An ethics review (B) A legal compliance assessment (C) A corporate conduct review (D) A corporate social audit (E) Whistle-blowing
a corporate social audit
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 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
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.
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. Cruz says the advice provided by Wal-Mart would have cost hundreds of thousands of dollars if contracted with a management consulting firm. This is an example of (A) philanthropic giving. (B) legal compliance. (C) organization culture. (D) ethical compliance. (E) social compliance.
philanthropic giving
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 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
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
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 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
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
____ 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
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
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
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
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
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
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 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
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
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
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
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
Which of the following actions is NOT part of an organization's attempts to evaluate social performance? (A) Corporate social audits (B) Whistle-blowing by employees (C) Requiring employees to sign agreements to abide by its code of ethics (D) Reviewing its responses to questionable conduct (E) Examining the impact that the corporate culture has on the firm's social performance
whistle-blowing by employees
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
John Kopchinski, a former Pfizer sales representative, earned more than $51.5 million as a result of his lawsuit against the world's biggest drug maker and the record penalty the company must pay the U.S. government for its massive marketing transgressions. He engaged in (A) whistle-blowing. (B) ethical compliance. (C) leadership practices. (D) corporate culture modification. (E) ethical compliance.
whistle-blowing
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
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
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
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
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
As applied to social responsibility, social audits represent what function of management? (A) Controlling (B) Organizing (C) Leading (D) Directing (E) Planning
controlling
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
Which of the following represents an attempt to manage social responsibility by means of what the text calls ethical compliance? (A) Requiring top financial managers to ensure compliance with securities and banking regulations (B) Creating a committee to write a code of ethics or review proposals concerning selection and promotion (C) Donating money to fund public broadcasting or the performing arts (D) Consulting the legal department regarding the requirements of a particular statute (E) Making human resource managers responsible for complying with EEOC standards
creating a committee to write a code of ethics or review proposals concerning selection and promotion
Siemens is primarily an engineering company. Employees in the U.S. volunteer to run Siemens Science Day in schools and hospitals to get children excited about science. The passion for science is part of the informal organization dimension (A) leadership. (B) culture. (C) ethical compliance. (D) whistle-blowing. (E) social compliance.
culture
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
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
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
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
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 an informal approach to social responsibility? (A) Whistle-blowing procedures (B) Ethical compliance (C) Leadership practices (D) The organization culture (E) Treatment of whistleblowers
ethical compliance
____ is the extent to which an organization and its members follow basic moral and legal standards of behavior. (A) Legal compliance (B) Ethical compliance (C) Evaluative compliance (D) Philanthropic giving (E) Rational compliance
ethical compliance
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
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
John Kopchinski, a former Pfizer sales representative, earned more than $51.5 million as a result of his lawsuit against the world's biggest drug maker and the record penalty the company must pay the U.S. government for its massive marketing transgressions. Kopchinski used whistleblowing, a(n) ____, to bring attention to the problem. (A) formal organizational dimension (B) defensive stance toward social responsibility (C) protective stance toward social responsibility (D) reactive approach to social responsibility (E) informal organizational dimension
informal organizational dimension
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
News Corporation is alleged to have tapped phones and bribed police in the UK to get leads on stories. It failed ____. (A) legal compliance. (B) ethical compliance. (C) evaluative compliance. (D) philanthropic giving. (E) rational compliance.
legal compliance
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
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 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
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 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 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