BUE chap 5, BUE chap 4, BUE chap 1, BUE chap 3
. In the philanthropic model of CSR, situations where a business supports a social cause for the purpose of receiving a business benefit in return are not much different from: a. the economic model of CSR. b. the stakeholder theory of CSR. c. the integrative model of CSR. d. the sustainability theory of CSR.
a
10. Philosophers often emphasize that ethics is _____, which means that it deals with a person's reasoning about how he or she should act. a. normative b. descriptive c. stipulative d. persuasive
a
15. The _____ discipline provides an account of how and why people do act the way they do. a. descriptive b. supererogatory c. normative d. stipulative
a
16. Individual codes of conduct based on one's value structures regarding how one should live, how one should act, what one should do, what kind of a person should one be etc. is sometimes referred to as _____. a. morality b. independence c. leadership d. rationality
a
7. Which of the following is the objective of the Grayson-Himes Pay for Performance Act? a. To ban future "unreasonable and excessive" compensation at companies receiving federal bailout money b. To set up the Public Company Accounting Oversight Board in the wake of accounting scandals that rocked the private sector c. To outlaw the practice of backdating of stock options awarded to senior management d. To set upper limits on executive pay based on average employee salary in all private sector organizations
a
A firm that balances its social goals against economic goals and does justice to both is said to follow the: a. integrative model of corporate social responsibility. b. economic model of corporate social responsibility. c. social web model of corporate social responsibility. d. stakeholder model of corporate social responsibility.
a
A(n) _____ provides concrete guidance for internal decision making creating a built-in risk management system. a. code of conduct b. organization vision c. income statement d. ombudsman
a
According to David Vogel, which of the following should a firm be most cautious about when engaging in CSR activities? a. Investing in CSR when consumers are not willing to pay higher prices to support that investment. b. Employees may become over-indulgent in activities related to social causes. c. Attrition levels may rise due to indifference among employees engaging in activities related to social responsibility. d. The easily measurable ethical pay off can turn out to be lower than the anticipated levels.
a
According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they: a. respect human rights and cause no harm. b. contribute to charitable organizations. c. are confident and do charitable work. d. adhere to rules and regulations.
a
Corporate culture: a. is fashioned by a shared pattern of beliefs, expectations, and meanings that influence and guide the thinking and behaviors of the members of that organization. b. shapes the people who are members of the organization, but it is not shaped by the people who comprise that organization. c. is not influenced by unspoken standards and expectations. d. is generally easy to modify.
a
Corporate social responsibility refers to: a. those things that businesses ought, or should, do, even if they would rather not. b. those measures that are taken against the ill treatment of subordinates in a firm. c. the avoidance of misconduct within an organization. d. the responsibility that society has to ensure a business's success.
a
Sustainability holds that: a. a firm's financial goals must be balanced against environmental considerations. b. a firm must place social considerations below tasks beneficial to its growth. c. a firm must not prioritize social goals at the expense of economic growth. d. a firm's sustenance is affected by overemphasis on environmental considerations.
a
The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referred to as: a. decision making for social responsibility. b. corporate cultural responsibility. c. institutionalized ethical responsibility. d. institutional morality.
a
The for-profit organizations that prioritize social entrepreneurship and sustainability as a central part of their strategic mission are pursuing the _____ model of CSR. a. integrative b. economic c. social web d. philanthropic
a
The form of business that limits the liability of individuals for the risks involved in business activities is known as _____. a. corporation b. partnership c. joint proprietorship d. sole proprietorship
a
The practice of attending to the "image" of a firm is referred to as: a. reputation management. b. branding. c. crisis management. d. gentrification.
a
When a firm engages in socially responsible activities with a prime focus on reputation: a. social responsibility tend to become a form of social marketing. b. the measure of positive reputation gained is impossible to calculate. c. profits have to be sacrificed for social causes. d. it always loses employee loyalty.
a
When would a values-based culture rely on the personal integrity of its workforce for making decisions? a. In situations where the rules of the organization do not apply b. When legal bodies are empowered to monitor compliance c. In situations where rules are applicable to make decisions d. In situations where a set of principles should be enforced
a
Which of the following ethical requirements is the type of responsibility established by the precedents of tort law? a. Duty to not cause avoidable harm to the society b. Duty to find employment for employees injured at work c. Duty to engage in charitable work d. Duty to volunteer for causes related to the environment
a
Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing? a. Whistleblowing b. Redlining c. Gentrification d. Flyposting
a
Which of the following is a value that will impact the culture of an organization in the absence of any other established values? a. Profit—at any cost b. Ethical behavior c. Legal compliance d. Customer satisfaction
a
Which of the following is an essential element in establishing an ethical leadership? a. The end or objective toward which the leader leads b. The prevailing culture in the external environment c. The ethical nature of the team members d. The personality traits of the team members
a
Which of the following models of corporate social responsibility holds pursuit of profit as the sole duty of a business? a. Economic model of corporate social responsibility b. Philanthropic model of corporate social responsibility c. Social web model of corporate social responsibility d. Integrative model of corporate social responsibility
a
Which of the following statements is true about ethical decision making in business? a. Ethical decision making is not limited to the type of major corporate decisions with dramatic social consequences. b. Every employee does not face an issue that requires ethical decision making. c. All ethical decisions can be covered by economic, legal, or company rules and regulations. d. Ethical decision making should not rely on the personal values and principles of the individuals involved.
a
Which of the following statements is true about the Federal Sentencing Guidelines for Organizations? a. They provide uniformity and fairness to the judiciary system. b. They are used to provide arbitrary punishments. c. They are applicable only to organizations and not to individuals. d. They assign most federal crimes to one of 5 "offense levels.".
a
Which of the following statements is true about the philanthropic model of corporate social responsibility? a. This model holds that business has no strict obligation to contribute to social causes, but it can be a good thing when they do so. b. This model views business as a citizen of the society in which it operates and, like all members of a society, business must conform to the normal ethical duties and obligations. c. This model begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others. d. This model holds that a firm's financial goals must be balanced against, and perhaps even overridden by, environmental considerations.
a
Which of the following theories recognizes the fact that every business decision affects a wide variety of people—benefiting some and imposing costs on others? a. Stakeholder theory b. Integrative theory c. Altruistic theory d. Institutional theory
a
. The philanthropic model in which business support for a social cause is done because it is the right thing to do differs from the reputational version only in terms of the: a. level of social good done. b. underlying motivation. c. reach of the social good done. d. medium used.
b
11. Which of the following observations is true of ethics? a. It is descriptive in nature. b. It deals with our reasoning about how we should act. c. It provides an account of how and why people act the way they do. d. It is equivalent to law-abiding behavior.
b
12. Like ethics, social sciences such as psychology and sociology also examine human decision making and actions. However, these fields differ from ethics because they are _____. a. normative in nature b. descriptive in nature c. persuasive in nature d. stipulative in nature
b
2. Which of the following statements is true about ethical decision making in business? a. Ethical decision making is limited to the type of major corporate decisions with social consequences. b. At some point, every worker will be faced with an issue that will require ethical decision making. c. All ethical decisions can be covered by economic, legal, or company rules and regulations. d. Ethical decision making should not rely on the personal values and principles of the individuals involved.
b
9. Which of the following is an approach advocated while teaching ethics? a. Teachers should teach ethical dogma to a passive audience. b. Teachers should consider acceptance of customary norms as an adequate ethical perspective. c. Teachers should understand that their role is only to tell the right answers to their students. d. Teachers should challenge students to think for themselves.
b
According to Norman Bowie, the "moral minimum" that we expect of every person—either acting as individuals or within corporate institutions—is: a. basic spirituality. b. respect for human rights. c. contribution to charity. d. accountability.
b
According to the _____ ethics tradition, people act out of habit than out of deliberations. a. Kantian b. virtue c. utilitarian d. principle-based
b
According to the economic model of corporate social responsibility, the sole duty of a business is to: a. go beyond legal responsibilities to cater to the needs of the society. b. fulfill the economic functions that it was designed to serve. c. think beyond economic ends that have to be met to help the society. d. analyze the defects in society and design products to overcome these defects.
b
As compared to a traditional compliance-oriented program, an evolved and inclusive ethics program: a. focuses on meeting regulatory requirements. b. entails helping to unify a firm's global operations. c. strives to minimize risks of litigation and indictment. d. works mainly toward improving accountability mechanisms.
b
In a general sense, a business _____ is anyone who affects or is affected by decisions made within the firm, for better or worse. a. nominee b. stakeholder c. stockholder d. watchdog
b
Stakeholder theory is an example of the: a. philanthropy model of corporate social responsibility. b. social web model of corporate social responsibility. c. economic model of corporate social responsibility. d. stockholder model of corporate social responsibility.
b
The first step in constructing a personal code or mission for a firm is to: a. articulate a clear vision regarding the firm's direction. b. ask oneself what one stands for or what the firm stands for. c. believe that the culture is actually possible, achievable. d. identify clear steps as to how the cultural shift will occur.
b
The means used to motivate others and achieve one's goals plays a key role in distinguishing between: a. silent leaders and visible leaders. b. effective leaders and ethical leaders. c. informal leaders and formal leaders. d. silent leaders and ethical leaders.
b
The second step in the development of guiding principles for a firm is to: a. ask oneself what one stands for or what the company stands for. b. articulate a clear vision regarding the firm's direction. c. identify clear steps as to how the cultural shift will occur. d. believe that the culture is actually possible, achievable.
b
Which of the following allows organizations to uncover silent vulnerabilities that could pose challenges later to the firm, serving as a vital element in risk assessment and prevention? a. Code of conduct b. Ongoing ethics audit c. Whistleblowing d. Ombudsman
b
Which of the following directed the USSC to consider and to review its guidelines for fraud relating to securities and accounting, as well as to obstruction of justice, and specifically asked for severe and aggressive deterrents in sentencing recommendations? a. Bank Secrecy Act b. Sarbanes-Oxley Act c. Gramm-Leach-Bliley Act d. Fair Credit Reporting Act.
b
Which of the following is a similarity between utilitarianism and stakeholder theory? a. Both place organizational benefits above other considerations. b. Both consider the consequences of management decisions for the well-being of all affected groups. c. Both contribute to society in ways that go beyond the narrow obligations of law and economics. d. Both strive to focus only on consumers.
b
Which of the following is an example of a firm that is failing its fundamental social responsibility? a. A firm that has its loss margins exceeding its profit margins b. A firm that uses resources at unsustainable rates c. A firm that is financially unstable d. A firm that prioritizes environmental sustainability
b
Which of the following is true about an integrity-based culture? a. It reinforces a particular set of rules. b. It reinforces a particular set of values. c. It empowers legal bodies to monitor compliance. d. It emphasizes rules as the primary responsibility of ethics.
b
Which of the following is true about the Sarbanes-Oxley Act? a. It specifically asked for lenient penalties in sentencing recommendations. b. It required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist. c. Its mandatory nature violated the Sixth Amendment right to a jury trial. d. It did not support the United States Sentencing Commission's guidelines to create both a legal and an ethical corporate environment.
b
Which of the following mechanisms allows employees to report wrongdoing and to create mechanisms for follow-up and enforcement? a. Accountability b. Ombudsman c. Appraisals d. Code of conduct
b
Which of the following situations could result in the business culture becoming a determining factor in ethical decision making? a. Lack of competition b. Law providing incomplete answers c. Lack of strong leadership d. Stagnant or decreasing profits
b
_____ is that aspect of ethics that is referred to by the phrase "personal integrity." a. Values b. Morality c. Social ethics d. Norms
b
_____ theory argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. a. Sustainability b. Stakeholder c. Classical d. Attributive
b
"Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods. But, just as charity is a good thing and something that we all want to encourage, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics." Identify the model of CSR that reflects this line of thought. a. Integrative model b. Stakeholder theory c. Philanthropic model d. Social web model
c
14. As a _____ discipline, ethics seeks an account of how and why people should act a certain way. a. descriptive b. supererogatory c. normative d. stipulative
c
6. Identify the bill that was passed in April 2009 to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 to prohibit unreasonable and excessive compensation and compensation not based on performance standards. a. Gramm-Rudman-Hollings Performance and Results Act b. Employee Pay Comparability Act c. Grayson-Himes Pay for Performance Act d. Statutory Pay-As-You-Go Act
c
A narrow view of corporate social responsibility is expressed by the: a. social web model of corporate social responsibility. b. integrative model of corporate social responsibility. c. economic model of corporate social responsibility. d. philanthropic model of corporate social responsibility.
c
According to the philosopher Norman Bowie, the contractual duty that managers have to stockholder-owners: a. makes them focus on philanthropy. b. makes them feel obliged to perform social good and prevent harm to the society. c. overrides their responsibility to prevent harm or to do good. d. leads them to take environment-conscious managerial decisions.
c
Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the _____. a. financial framework b. classical tradition c. rights-based ethical framework d. stockholder theory
c
Ethics seeks an account of how and why people should act a certain way, rather than how they do act. This nature of ethics makes it a(n) _____ discipline. a. descriptive b. supererogatory c. normative d. stipulative
c
How is an ethical, effective leader different from an effective leader? a. An ethical leader will take decisions based only on a set of rules. b. An ethical leader will follow a set of rules regardless of consequences. c. An ethical leader will empower the employees in decision making. d. An ethical leader will achieve his or her goals through intimidation.
c
Identify the correct statement about ethical leaders. a. Individuals perceived as ethical leaders avoid doing things that "traditional leaders" do. b. A "quietly ethical" executive is likely to be perceived as an ethical leader. c. An ethical leader's traits and behaviors must be socially visible. d. Ethical leaders are not people-oriented leaders.
c
Milton Friedman claims that a corporate executive has a "responsibility to conduct business in accordance with his or her employer's desires, which generally will be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom." This view of corporate social responsibility has its roots in the _____ tradition. a. deontological b. Kantian c. utilitarian d. virtue
c
Morality is the aspect of ethics that we can refer to by the phrase "_____." a. personal freedom b. individual rationality c. personal integrity d. persuasive rationality
c
The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory role, holding that their mandatory nature: a. was only applicable to individuals and not to organizations. b. provided arbitrary punishments. c. violated the Sixth Amendment right to a jury trial. d. encouraged internal whistleblowing.
c
The _____ model of CSR holds that, like individuals, business is free to contribute to social causes as a matter of philanthropy, and business has no strict obligation to contribute to social causes; but it can be a good thing when they do so. a. economic b. social web c. philanthropic d. integrative
c
The _____ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment. a. annual report b. vision statement c. mission statement d. income statement
c
The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by: a. utilizing a small percentage of profit on social causes. b. doing charitable work to build a good reputation within the community. c. pursuing social ends as the very core of an organization's mission. d. emphasizing the importance of achieving the desired economic goals.
c
Which of the following best describes corporate social responsibility? a. It refers to the dedication that employees show in meeting organizational goals. b. It refers to the accountability that a manager has over his subordinates. c. It refers to the actions for which a business can be held accountable. d. It refers to the actions that maximize the profit of an organization.
c
Which of the following best describes ethics? a. An academic discipline which originated in the early 1900s b. A descriptive approach that provides an account of how and why people do act the way they do c. The study of how human beings should properly live their lives d. A descriptive approach such as psychology and sociology
c
Which of the following is an effective way of creating clear and successful reporting schemes? a. Leaders empowering subordinates to take decisions without providing guidance b. Managers ignoring the risk and taking a wait-and-see attitude c. Consistent and continuous communication of the firm's values to all stakeholders d. Subordinates staying away from reporting unethical behaviors of superiors
c
Which of the following is emphasized by a compliance-based culture? a. Reliance on personal integrity of employees for decision making b. Use of values as the principle for decision making c. Obedience to rules as the primary responsibility of ethics d. Reinforcement of a set of values rather than a set of rules
c
Which of the following is the challenge associated with ethical pay offs? a. It ruins the reputation that triggered it. b. It is very small in comparison to profits. c. It is very difficult to measure ethical pay offs. d. It can easily be duplicated by competitors.
c
Which of the following is true about a compliance-based culture and/or a value-based culture? a. A compliance-based culture recognizes that where a rule does not apply the firm must rely on the personal integrity of its workforce when decisions need to be made. b. A values-based culture is one that reinforces a particular set of rules rather than a particular set of values. c. Values-based organizations include a compliance structure. d. Value-based organizations do not have codes of conduct.
c
Which of the following is true about communicating unethical behavior in a corporate structure? a. Reporting ethically suspect behavior is a simple thing to do. b. Employees are always comfortable in raising questions against superiors. c. Reporting individuals can face retaliation from superiors. d. Whistleblowing is the most preferred mechanism for communicating ethical behavior.
c
Which of the following is true about corporate cultures? a. Corporate cultures are not influenced by the people comprising that organization. b. Corporate cultures are not subject to changes over time. c. Corporate cultures can hinder individuals in making the "right" decisions. d. Corporate cultures in a global firm differ significantly across different countries.
c
Which of the following is true about the economic model of CSR? a. It holds that a business should prioritize environmental sustainability. b. It has its roots in the Kantian tradition of ethics. c. It contends that the goal of business managers should be to pursue profit within the law. d. It holds that social goals should be at the heart of a firm's mission.
c
Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility? a) Philanthropy done for reputational reasons is not fully ethical. b) Philanthropy done for solely financial benefits is not truly an act of social responsibility. c) Philanthropy done for financial reasons is ethically responsible. d) Philanthropy is considered as a social contribution rather than an investment.
c
Which of the following should an organization do in order to have an effective compliance and ethics program? a. It should do a public display of an employee's report on an unethical behavior. b. It should ensure that people who have previously engaged in unethical activities are placed in charge of programs. c. The organization should communicate its standards and procedures to all members. d. Low-level personnel must be assigned to have responsibility for the program.
c
Which of the following statements is true about whistleblowing? a. It involves the disclosure of ethical activities. b. It may seem disloyal, but it does not harm the business. c. It can occur both internally and externally. d. It does not cause any harm to the whistleblower.
c
_____ establish the guidelines or standards for determining what one should do, how one should act, what type of person one should be. a. Roles b. Attitudes c. Norms d. Laws
c
3. Which of the following statements is true about ethical decision making in business? a. Ethical decision making is limited to the type of major corporate decisions with social consequences. b. Every employee does not face an issue that requires ethical decision making. c. All ethical decisions can be covered by economic, legal, or company rules and regulations. d. Ethical decision making should rely on the personal values and principles of the individuals involved.
d
According to the economic model of corporate social responsibility, the pursuit of profit will continuously work toward the optimal satisfaction of consumer demand which, in one interpretation of _____is equivalent to maximizing the overall good. a. deontological ethics b. classicism c. virtue ethics d. utilitarianism
d
An effective internal mechanism of whistleblowing: a. occurs when employees report wrongdoing to legal authorities. b. must expose unethical behaviors to the press. c. should not protect the rights of the accused. d. must allow confidentiality, if not anonymity.
d
An individual who argues that firms should be managed for the sole benefit of stockholders is defending the: a. philanthropic model of CSR. b. social web model of CSR. c. integrative model of CSR. d. economic model of CSR.
d
Enlightened self-interest, an important justification offered for corporate social responsibility, presumes that: a. measurement of bottom-line impact of ethical decision making is unimportant. b. profits are independent of ethics. c. bottom-line impact of ethical decision making can be measured and compared. d. good ethics can also be good business.
d
Identify the most determinative element in integration, without which, there is no clarity of purpose, priorities, or process. a. Ethics b. Leadership c. Tradition d. Communication
d
If we judge a leader solely by the results produced, we are following the _____ ethical tradition. a. deontological b. virtual c. Kantian d. utilitarian
d
Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if: a. multiple owners were involved in the strategic decision making process of the firm. b. there was transparency among all stakeholders. c. firms had the obligation to justify bad decisions. d. individuals were protected by limiting the liability of individuals for business activities.
d
What is the role of an ethical leader in corporate cultures? a. A leader should be ethical within the confines of the top management team. b. An ethical leader must shrink his or her duties in the corporate structure. c. An ethical leader should not place her or his own ethical behavior above any other consideration. d. A leader must clearly advocate and model ethical behavior.
d
What is the term used to describe a potentially damaging or ethically challenged corporate culture? a. "Caustic" culture b. "Pyrophoric" culture c. "Corrosive" culture d. "Toxic" culture
d
Which of the following best describes a business stakeholder? a. Only the minority shareholders in a business entity b. Only those who have acquired significant shares in a firm c. Anyone who audits a firm d. Anyone who affects or is affected by decisions made within a firm
d
Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes? a. Customer-based culture b. Integrity-based culture c. Values-based culture d. Compliance-based culture
d
Which of the following is a traditional approach to corporate culture? a. Values-based b. Integrity-based c. Customer-based d. Compliance-based
d
Which of the following is the most demanding social responsibility? a. A business should prevent harm even in those cases where it is not the cause. b. A business should volunteer for society or environment-friendly work. c. A business should engage in charitable work for the development of the society. d. A business should not sell a product that causes harm to consumers.
d
Which of the following is true about culture? a. The specific culture within an organization can be defined easily and objectively. b. The incentives an organization employs do not help in determining the organization's specific culture. c. Attitude and behavior are the biggest fraction of the elements that determine culture. d. Perception may actually impact the culture in a circular way.
d
Which of the following is true about ethical leaders? a. Ethical business leaders do not need to talk about ethics and act ethically on a personal level. b. They do not say "no" to conduct that would be inconsistent with their organization's and their own personal values. c. If an executive is "quietly ethical" within the confines of the top management team, but more distant employees do not know about her or his ethical stance, they are more likely to be perceived as an ethical leader. d. They expect others to say no to them.
d
Which of the following is true about value-based cultures? a. They emphasize obedience to the rules as the primary responsibility of ethics. b. They are only as strong and as precise as the rules with which workers are expected to comply. c. They reflect the traditional approach of classifying corporate culture. d. These cultures are perceived to be more flexible and far-sighted corporate environments.
d
Which of the following models of corporate social responsibility considers business a citizen of the society that it operates in? a. Philanthropic model b. Economic model c. Altruistic model d. Social web model
d
Which of the following raises questions about justice, law, civic virtues, and political philosophy? a. Stipulative ethics b. Morality c. Descriptive discipline d. Social ethics
d
Which of the following statements is true of ethical cultures? a. Workplace ethical cultures have no impact on decision making. b. Subordinates are expected not to act unless directed by superior authorities. c. Decisions are expected to be taken based on laws and not on ethical values. d. Employees are expected to act in responsible ways, even if the law does not require it.
d
Which of the following versions of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment? a. Social web b. Philanthropic c. Social entrepreneurship d. Sustainability
d
