Chapter 4, Chapter 5, and Chapter 6

Identify the use of the word "responsible" that carries an ethical connotation.

The restaurant's wonder is responsible for waiters' well-being.

The primary responsibility for the cultivation of patterns of behavior that support ethical decision making in the workplace lies with __________________.

corporate leaders.

The term __________ __________ __________ (CSR) refers to the ethical responsibilities that a business has to the soviet in which it operates.

corporate social responsibility

The Sarbanes-Oxley Act directed the United States Sentencing Commission to.........

have severe deterrents in sentencing recommendations for fraud relating to accounting and securities.

Norman Bowie stated that the responsibility to ________ overrides other ethical concerns.

not cause harm

One of the levels of ethical responsibilities that philosophers distinguish among is the ethical responsibility to.......

prevent harm.

The belief that businesses have an obligation to "give back" to the community by supporting good causes considers this obligation to be.....

similar to a debt of thankfulness.

According to philosophers Benjamin Powell and Matthew Zwolinski, the moral imperative of supporting sweatshops is.....

the welfare of the least advantaged who face the economic aftermath of current economic and political decisions.

The stakeholder model of corporate social responsibility holds that business managers are responsible......

to anyone who is affected by the success or failure of their firm.

What are the categories an offender is placed into based on Federal Sentencing Guidelines for Organizations?

1. A criminal history category. 2. An offense severity category.

Identify the true statements about the ethical rationale for the employment-at-will (EAW) doctrine.

1. A manager is in the best position to know what is best for his or her firm and the law should not interfere with those decisions. 2. Total discretion over employment allows managers to make efficient decisions that contribute to the greater overall good.

According to the study titled "Developing Value: The Business Case for Sustainability in Emerging Markets," what were the greatest benefits of multinational enterprises engaging in sustainability activities?

1. Access to markets 2. Improvements in productivity 3. Growth of revenue 4. Cost savings

What are the positive objectives of an effective monitoring process for a firm's corporate culture?

1. Assessing whether the positive results of an ethics program are being measured and reported. 2. Assessing the effectiveness with which the ethical values of senior management are being disseminated. 3. Assessing the ability of a firm's compensation structure to reward ethical behavior. 4. Assessing the allocation of resources.

Identify the ways in which a firm can determine employees' perceptions of change in its corporate culture.

1. By analyzing data surrounding its help line. 2. By taking surveys of employees' job satisfaction. 3. By requesting an external organization to audit it.

How do ethical business leaders serve as role models?

1. By supporting others who maintain their own standards. 2. By fulfilling promises and commitments. 3. By adhering to their own standards.

Which of the following are examples of sweatshops?

1. CASL Auto does not ensure that safety standards are met in its manufacturing units and pays their employees wages lower than the local poverty rate. 2. EYP Tech Solutions forces its employees to work overtime and underpays them.

Which of the following standards are part of the Base Code established by the Ethical Trade Initiative addressing living wages?

1. Deductions from wages not provided for by national law shall not be permitted without the expressed permission of the worker concerned. 2. Wages should always be enough to meet basic needs and also to provide some discretionary income.

What are the arguments raised by those who argue in favor of requiring the Occupational Safety and Health Administration (OSHA) to use cost-benefit analysis for setting up health and safety standards?

1. Even if a standard is technologically and economically viable, it would still be unfair if the benefits did not outweigh the costs. 2. OSHA should focus on achieving the optimal level of safety.

Identify the ways in which companies reduce negative influences on their reporting mechanisms.

1. Giving employees enough time to make responsible decisions. 2. Communicating their expectations and values to all stakeholders.

What are the necessary characteristics of an ethical, effective leader?

1. He or she should pursue ethical objectives. 2. He or she should use ethical methods.

What are the criticisms of Geert Hofstede's work?

1. His studies are based on a limited number of countries. 2. He focused his work on a single period of time. 3. His view is biased by his Western perspective.

According to the study titled "Developing Value: The Business Case for Sustainability in Emerging Markets," what were the most significant areas of sustainability action for multinational enterprises?

1. Human resource management 2. Environmental process improvements

Rank the steps involved in establishing a code of conduct in an organization in the order of their implementation.

1. Identifying the purpose of the organization as well as what it stands for. 2. Articulating a clear vision for the organization's direction. 3. Identifying clear steps as to how the code will be implemented. 4. Fostering a belief among members of the organization that the requirements of the code are achievable.

Identify the features of affirmative action.

1. It can take place in employment environments, education, and other areas. 2. It is the intentional inclusion of previously excluded groups.

What are the drawbacks of the acceptable risk approach to workplace health and safety?

1. It equates workplace risks with other types of risks without considering their differences. 2. It improperly incentivizes people who may financially benefit by not reducing workplace risks that they could control. 3. It treats employees disrespectfully and overlooks their role in the decision-making process.

Which of the following are true of the free-market approach to workplace health and safety?

1. It favors compensating injured workers when it can be proved that employers were liable for causing the harms. 2. It holds that individual bargaining with employers leads to the optimal distribution of safety and income in competitive and free labor markets.

What are the positive effects of a strong ethical culture in a company?

1. It helps prevent stakeholder damage. 2. It enhances bottom-line sustainability.

What are the inherent problems in the free-market approach to workplace health and safety?

1. It is based on the invalid assumption that labor market is perfectly competitive and free and allows employees to make free choices. 2. It addresses questions from a purely individual perspective and ignores questions of social justice and public policy.

What are the characteristics of an organization that effectively supports internal whistle-blowing?

1. It protects the rights of the person or persons being accused. 2. It permits anonymity or confidentiality.

In the context of due process in the workplace, identify the consequences of the unjust exercise of the acknowledged authority of employers over employees in the employment relationship.

1. It reduces employee morale. 2. It leads to the emotional abuse of employees. 3. It causes loss of dignity, intimidation, and fear among employees.

In the context of the expectations to the employment at will rule, which of the following reverse the burden of proof and require employers to show cause to justify the dismissal of an employee?

1. Just cause 2. Due process rights

Which of the following are Geert Hofstede's categories of dispositions.

1. Masculinity vs. femininity 2. Indulgent vs. restrained 3. Time and order orientation

According to the economic model of corporate social responsibility, which of the following kinds of philanthropy are ethically responsible?

1. Philanthropy done to obtain business benefits. 2. Philanthropy done for repetitional purposes.

Identify Geert Hofstede's dimensions of dispositions.

1. Power distance. b 2. Uncertainty avoidance. 3. Individualism vs. collectivism.

According to the Ethics Resource Center (ERC), what are the effects of a strong ethical environment?

1. Reduced pressure on employees. 2. Increased reporting 3. Decreased retaliation 4. Few instances of misconduct

Which of the following are true of the Occupational Safety and Health Administration (OSHA)?

1. Regulations established by OSHA in its early years were aimed at achieving the safest feasible standards. 2. OSHA regulations were biased in favor of health and safety as they required businesses to prove that high standards were not economically feasible.

Identify the steps a firm should follow to ensure an ethical process of downsizing.

1. The decision to downsize should be made by a representative group to ensure that all stakeholder interests are considered. 2. The firm should adopt measures to reduce the impact of the decision on all employees and permit the terminated employees to leave with dignity.

Identify the basic guidelines for creating affirmative action program and policies.

1. The effort or policy may not keep aside any positions for women or minorities. 2. They should be only temporary in that the programs or policies are for the goal of attaining a balanced workforce.

What are the signs of an ethically challenged firm?

1. The firm fails to treat its stakeholders in a professional manner. 2. The firm fails to manage its finances in a responsible manner.

Rank the levels of ethical responsibilities in increasing order of their obligatory nature, beginning with the least obligatory level.

1. The responsibility to do good. 2. The responsibility to prevent harm. 3. The responsibility not to cause harm.

Which of the following are the basic guidelines for creating affirmative action programs and policies?

1. They should not unsettle any legitimate, deeply rooted expectations of employees. 2. They should represent a minimal intervention into the legitimate, settled expectations of employees.

Identify the challenges raised against the approach that requires the Occupational Safety and Health Administration (OSHA) to use cost-benefit analysis for establishing health and safety standards.

1. This approach involves trading off health and safety against profit margin. 2. This approach treats health and safety merely as an instrument value and ignores the intrinsic value of employees' lives.

Which of the following are included in voluntary affirmative action plans?

1. Training plans and programs. 2. Focused recruiting activity.

Identify the standards that are part of the Base Code established by the Ethical Trade Initiative addressing living wage.

1. Wages paid for a standard working week meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. 2. All workers shall be given written and clear information about their employment conditions with regard to wages before they join as an employee.

Identify the ways in which affirmative action arises in a workplace.

1. Where Executive Order 11246 does not apply, courts may require "judicial affirmative action" to remedy a finding of past discrimination. 2. By legal requirements.

Identify the arguments made by philosophers Benjamin Powell and Matthew Zwolinski in the seminal article titled "The Ethical and Economic Case against Sweatshop Labor: A Critical Assessment" defending the moral legitimacy of sweatshops.

1. Workers are able to give consent even within their limited set of choices. 2. Workers acknowledge the risks associated with working in sweatshops but decide to work as it will give them the economic power that they lacked.

What is the most dangerous situation that can arise because of a failure in a company's reporting system?

A manager chooses to ignore a risk because its potential for harm is not immediately evident.

Which of the following is an example of the ethical responsibility to prevent harm?

A nuclear power plant uses sewage as a coolant to avoid depleting freshwater sources.

Why does stakeholder theory claim superiority over the economic model of corporate social responsibility?

Because the economic model often has one group benefit at the expense of others.

How does the pursuit of profit maximization help maximize the overall good in an economic model of corporate social responsibility?

By allowing firms to work toward optimally satisfying consumer demand.

How do leaders create a shared culture of ethical decision making in an organization?

By engaging in visible ethical action.

The term ____________ ____________ signifies children who work, and it has also taken on the meaning of exploitative work that can cause some harm to a child who is not of an age to explain his or her presence in the workplace.

Child Labor

Match the exceptions to the employment-at-will (EAW) rule.

Civil right laws - these laws prevent dismissal of employees on the basis of membership in certain prohibited classes such as race, sex, disability, age, national origin, religion, or ethnic background. Labor laws - these laws stop employers from dismissing employees for union activities.

Match the types of corporate cultures with their features.

Compliance-based Cultures - They have audit offices and legal counsel that monitor and enforce compliance with internal regulations and with the law. Values-based Cultures - They support a decision-making process that is based on certain principles in order to shape employee decisions.

Identify a true statement about ethical leadership in an organization.

Corporate leaders are often responsible for the unethical actions of their predecessors.

_______________ refers to the presence of diverse cultures, languages, races, ethnicities, affinity orientations, genders, religious sects, abilities, social classes, ages, and national origins of the employees in a firm.

Diversity

Larry and Co, a multinational advertising agency, is forced to close its services in various regions due to financial constraints. As part of cost-cutting efforts, the company terminates many employees offshore and at the headquarters. Which of the following measures is exemplified in the given scenario?

Downsizing

Identify a challenge related to the free-market approach to workplace health and safety.

Employees rarely have the kind of complete information efficient markets require for making informed choices.

The doctrine known as ____________ ____ ________ (EAW) holds that, in the absence of a particular contractual or other legal obligation that specifies the length or conditions of employment, all employees are employed "at will".

Employment- at-will

Which type of ethical responsibilities offers a model of corporate social responsibility that encourages all businesses to integrate ethical goals into their mission?

Ethical responsibilities associated with sustainability

What is the least obligatory level of ethical responsibilities?

Ethical responsibilities to do good.

_________________ __________________ are individuals within and organization who are charged with managerial oversight of ethical compliance and enforcement within the organization.

Ethics officers

True or false: Stakeholder theory supports the view of the economic model of corporate social responsibility that management can ignore duties to everyone but stockholders.

False.

True or false: The economic model of corporate social responsibility states that business have social responsibilities beyond the economic and legal ends for which they were created.

False.

True or false: The stability that a corporate culture provides is always a benefit.

False.

What are the methods used by effective leaders to achieve their goals that make them unethical leaders?

Intimidation Coercion Harassment Threats

Identify a true statement about a firm's decision to downsize.

It adversely affects stakeholder perceptions about the firm's commitment to corporate social responsibility.

When establishing a code of conduct, what does an organization do immediately after articulating its vision for its direction?

It determines processes and procedures it would need to establish.

What is an impact of a company's culture on employees?

It develops both ethical and unethical habits in employees.

What is a feature of an ethical environment?

It empowers an employee to act in an ethically responsible manner.

Which of the following is true of the instrumental value of an employee who dies in a workplace accident?

It is calculated, in part, by the lost wages the employee would have earned if he or she lived.

What is the approach of a values-based culture to a situation where a rule does not apply?

It permits a firm to rely on its employees' personal integrity.

Identify a contribution of the United States Sentencing Commission.

It tackled the issue of arbitrary punishments.

Which of the following is a best practice for managers when a company is downsizing?

Managers should show visibility, approachability, and honesty toward employees.

Who among the following is most likely to significantly change the corporate culture of Junk Food Online?

Piper, the Chief Executive Officer of Junk Food Online.

The Occupational Safety and Health Administration (OSHA) is a federal agency in the United States that...

Publishes and implements safety and health regulations for U.S. businesses.

According to Norman Bowie's defense of the stakeholder model of corporate social responsibility, what is the "moral minimum" that is expected of all people?

Respecting human rights.

Match the major elements of the acceptable risk approach to workplace health and safety.

Risk - it refers to the likelihood of harm in a workplace. Relative Risk - it involves a comparison of the likelihood of harm involved in various activities.

_____________ _____________ is a theory that begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

Stakeholder theory

What does enlightened self-interest as a justification for corporate social responsibility (CSR) presume?

That good ethics can lead to good business.

Which of the following is an Independent agency in the United States Judiciary that was created in 1984 to regulate sentencing policy in the federal court system?

The United States Sentencing Commission.

Match the tests used by courts to decide whether a worker is an employee or an independent contractor.

The common-law agency test - This test is a persuasive indicator of independent contractor status that provides the employer the ability to control the manner in which the work is performed. The economics reality test - This test is used by courts to consider whether the worker is economically dependent on the business or, as a matter of economic fact, is in business for himself or herself.

What are the elements of a corporate culture that are perceived by employees?

The competitive environment Hierarchical structure Incentives Methods of problem solving Individual autonomy

Match the models of corporate social responsibility with their descriptions.

The economic model - This model acknowledges only legal restrictions on the pursuit of profit and requires that managers maximize profit and shareholder wealth. The stakeholder model - This model states that a business and its employees are required to fulfill the ethical responsibilities to do good, to prevent harm, and to not cause harm. The integrative model - This model asserts that managers' responsibility to shareholders involves serving the social good.

Which level of ethical responsibilities is enforced by society through the law and legal punishment in addition to the full force of social sanctioning?

The ethical responsibility not to cause harm.

Which of the following is true of a firm that uses corporate social responsibility merely to build its reputation?

The firm is not truly committed to fulfilling its social responsibilities.

What is the issue with a firm's engagement in corporate social responsibility for primarily reputational purposes?

The firm reduces social responsibility to social marketing.

Which of the following is an ethical requirement of utilitarianism that is satisfies by stakeholder theory?

The interests of all parties affected by a decision should be balanced.

According to the free-market approach to workplace health and safety, which of the following urges employers to maintain a reasonably safe and healthy workplace?

The threat of compensation for injured employees.

What is a consequence of stakeholders in an organization perceiving a leader to be involved in unethical behavior?

They are likely to assume that such behavior is acceptable and expected.

What are ethical responsibilities?

Things one should do even if one would prefer not to do them.

Categorize the characteristics of traditional compliance-based cultures and progressive values-based cultures.

Traditional compliance-based cultures - Audit focus, Transaction-based, Policies and procedures focus, Financial account focus. Progressive values-based cultures - Business focus, Process-based, Risk management focus, Customer focus.

Match the types of cultures with their goals.

Traditional compliance-oriented cultures - Satisfying regulatory requirements, enhancing accountability mechanisms, and reducing risks of indictment and litigation. Inclusive and progressive corporate cultures - Hiring and retaining desirable employees, managing reputation and brand, improving employees' work environment, and helping unify the operations of a company worldwide.

Categorize the features of traditional corporate cultures and progressive corporate cultures.

Traditional corporate cultures - Policy adherence, Multiyear audit coverage, Compliance objective, Budgeted cost center. Progressive corporate cultures - Continual risk-assessment coverage, Accountability for performance improvement results, Risk identification, process improvement objective, Change facilitator.

True or False: Historically, the ethical rationale for the employment-at-will (EAW) rules was that private property owners have the right to control their property by controlling who works for them.

True

True or False: The law permits employers to decide on discrimination on any basis other than those prohibited by the Constitution, precedent, and several statutes.

True

True or False: Basic fairness applied through due process requires that an employer's authority over employees should be exercised in a just manner.

True.

True or false: David Vogel cautions firms to avoid investing in corporate social responsibility when consumers are reluctant to support that investment by paying higher prices.

True.

True or false: Federal Sentencing Guidelines for Organizations require organizations to assess areas of risk for ethics and compliance.

True.

What determines the effectiveness of the process of integrating an ethical culture in an organization?

Whether incentives promote ethical decision making.

_________________-________________ is one of the classic issues in business ethics that refers to situations where an employee discloses unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing.

Whistle-blowing

An example of ethical responsibilities to do good is........

a business financing the construction of schools for the underprivileged in different parts of the world.

One of the requirements of the Sarbanes-Oxley Act was that....

all public companies create a code of conduct for top executives.

One of the features of codes of conduct is that they........

are often created by professional associations and voluntarily followed.

A way in which firms can measure the effect of measures taken to change their corporate culture is by........

assessing shifts in employees' perceptions of their working conditions.

One of the concerns about diversity in the workplace involves....

assimilating diverse viewpoints into a preexisting corporate culture.

According to the Kantian approach to the ethics of workplace relationships, employers' decision to treat employees well is motivated by their...

awareness of duty and rights.

Sustainability is a topic within corporate social responsibility that requires firms to.......

balance their financial goals with environmental considerations.

According to the philanthropic offshoot of the economic model of corporate social responsibility, ...........

business is not obligated to support social causes.

One of the measures firms have taken to create a more positive notion of whistle-blowing is to.......

call their reporting mechanisms "speak-up" programs.

A(n) __________________ _________________ ________________ is a set of behavioral guidelines and expectations that govern all members of a business firm.

code of conduct

In order for an ethical culture to become an essential element of corporate decision making and corporate life, _________________________ must be incorporated into the habits, attitudes, and vocabulary of an organization.

communication of the code of conduct

Under the integrative model of corporate social responsibility, a(n) _____________ ____________ report is a supplement to a company's financial annual report that provides an overview of the company's performance on environmental and social, as well as financial, grounds.

corporate sustainability

An organization's culture serves as an obstacle by preventing the organization from.......

creatively responding to challenges.

Every organization has a(n) _______________ fashioned by a shared pattern of beliefs, expectations, and meanings that influences and guides the thinking and behaviors of the members of that organization.

culture

Philosophically, the right of ____________ ____________ is the right to be protected against the arbitrary use of authority.

due process

The ______________ ____________ of corporate social responsibility holds that business' sole responsibility is to fulfill the economic functions they were to designed to serve.

economic model

A challenge that reporting systems in organizations face is that these systems.......

fail to make the values of an organization clear.

The ___________ _____________ of corporate social responsibility involves business firms fully integrating social responsibility with their missions or strategic plan.

integrative model

According to the utilitarian approach to the ethics of workplace relationships, employees are treated well by employers because......

it fosters high levels of innovation among employees.

One of the major criticisms of the acceptable risk approach to workplace health and safety is that.....

it ignores the basic deontological right employees may have to safe and healthy working environments.

Communication is one of the most decisive elements of the process of integrating an ethical culture throughout a firm because.......

it provides clarity of process, priorities, and purpose.

Stakeholder theory rejects the economic model of corporate social responsibility because the economic model fails to consider.......

legal precedent that arises from legislative enactments and case law.

As work takes children out of school, nation-specific studies show that high levels of child labor correlate with......

low literacy levels.

Unlike stakeholder theory, the economic model of corporate social responsibility attempts to satisfy utilitarian requirements by encouraging business to........

maximize the interests of their stockholders only if profitable.

An organization's ______________ ______________ or corporate credo serves as a formal summary statement that describes the goals, values, and institutional aim of the organization.

mission statement

The principle of tolerance and inclusion that backs the co-existence of multiple cultures, while boosting each to retain that which is unique or special about that particular culture, is referred to as.....

multiculturalism

Stakeholder theory claims to be ethically superior to the economic model of corporate social responsibility because stakeholder theory.......

never permits corporate managers to treat people only as means to an end.

In his defense of the stakeholder model of corporate social responsibility, Norman Bowie argues that......

one of the ethical responsibilities of business is respecting human rights.

According to the economic model of corporate social responsibility, a direct indicator of how well a corporation is satisfying the expectations of society is.......

profit.

The courts have cautiously constructed legal precedent in the decades after Title VII of the United States Civil Rights Act was passed in 1964 and established the.....

prohibited classes of discrimination.

In 2004, the United States Sentencing Commission updated its Federal Sentencing Guidelines for Organizations so that they required firms to...........

promote a corporate culture that supports ethical behavior and compliance with the law.

The primary responsibility of managers according to the economic model of corporate social responsibility is to........

pursue profit within the bounds of the law.

The practice of attending to the "image" of a firm is referred to as.......

reputation management.

Decisions made or actions taken against individuals who are historically considered to be in power or the majority, such as white men, or in favor of a traditionally non-dominant group is known as...

reverse discrimination.

The philanthropic approach of the economic model of corporate social responsibility is common among.......

small-scale, privately owned businesses.

The concept of corporate social responsibility involves the notion that corporations are......

social institutions formed by society to serve the ends of human beings.

The _______________ _______________ of corporate social responsibility states that business exists within a web of social and ethical relationships and that it exists to create value for a range of stakeholders, including employees, customers, suppliers, and local communities as well as investors and stockholders.

stakeholder model

In 2005, U.S. Supreme Court held in U.S. v. Booker that the Federal Sentencing Guidelines for Organizations violated......

the Sixth Amendment right to a jury trial.

Proponents of the sustainability model of corporate social responsibility hold that.......

the current model of economic growth is straining on the biosphere's ability to sustain life.

The evaluation of ethical behavior during an employee's performance review provides information on........

the effectiveness with which an organization has integrated ethical culture.

Milton Friedman, in his article "The Social Responsibility of Business Is to Increase Its Profits," suggests that.......

the ethical responsibilities of managers are fulfilled when they pursue profit and increase shareholder wealth.

Employees tend to be more satisfied with their firm when they believe that......

the firm values their emotion.

A major challenge concerning due process in the workplace is....

the lack of consensus in the definition of basic fairness.