chapter 4 for test 1

Which of the following would NOT be considered a characteristic of an ethical dilemma?

Right and wrong can be clearly identified.

Which of the following would be a principle-based statement within a company's code of ethics?

"We are committed to creating an environment in which all are treated with dignity and respect that brings out the full potential in each of us."

Which of the following would be a policy-based statement within a company's code of ethics?

"We must avoid any relationship or activity that might impair, or even appear to impair, our ability to make objective and fair decisions when performing our jobs."

About _____ of American adults reach the postconventional level of moral development and are able to act in an independent, ethical manner regardless of expectations from others inside or outside the organization.

20 percent

A Gallup poll asked American people whether they agreed with the statement that corporate America's moral compass is "pointing in the wrong direction," and _____ said yes

75 percent

At its very basis, being ethical involves:

making decisions.

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with suppliers?

Accepting favors or kickbacks

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with financial stakeholders?

Breaching database controls

Which of the following would NOT be included in the People part of the triple bottom line that looks at the level of an organization's social responsibility?

Commitment to environmental sustainability

Which of the following would be included in the Planet part of an organization's triple bottom line?

Commitment to environmental sustainability

Which of the following descriptions best explains what sustainability is?

Companies committed to sustainability engage in economic development that generates wealth and meets the needs of the current generation while preserving the environment and society for future generations.

Which of the following groups is among the primary stakeholders of an organization?

Employees

Which of the following would NOT be characteristic of a manager who practices ethical leadership?

Encourages a win-at-all-costs attitude

_____ is the code of moral principles and values that governs the behaviors of individuals or groups.

Ethics

Which of the following statements or questions best illustrates the thinking of a person at the postconventional level of moral development?

I know this is not right, and I will not do it, even if everyone else is.

Which of the following descriptions best defines corporate social responsibility?

In taking actions, organizational managers make choices that will enhance the welfare and interests of both society and their organizations.

Which of the following statements about the individualism approach to ethical decision making is true?

Individualism is easily misinterpreted to support immediate self-gain.

Which of the following statements best describes the utilitarian approach as a guide for ethical decision making?

It advocates moral behavior that produces the greatest good for the greatest number.

Which of the following statements best describes the individualism approach as a guide for ethical decision making?

It sees acts as moral when they promote an individual's best long-term interests.

As a definition for ethics, which of the following statements is true?

It sets standards as to what is good or bad in conduct and decision making.

Companies that embrace sustainability measure performance outcomes at several different levels in a triple bottom line. Which of the following is NOT included in the triple bottom line?

Moral performance

The term triple bottom line is also known as the three P's. Which of the following correctly identifies the three P's?

People, Planet, and Profit

The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Which of the following is not among the three types of justice that are specifically of concern to managers?

Personal

Photos emerged of a college basketball coach partying and drinking alcohol with college co-ed students. Although not illegal, the situation is not considered acceptable by the community at large. The college administration fired the coach. Which approach to ethical decision making was at work here?

Practical

_____ statements define fundamental values and reference organizational responsibilities, products, and employees.

Principle-based

Which of the following descriptions best explains what a stakeholder is?

Stakeholders are a group or person inside or outside the organization who is invested or interested in the organization's performance and is affected by the organization's actions.

Which of the following reasons best explains why managers are embracing the idea of sustainability?

Sustainability provides a way to achieve financial goals in a manner that is socially and environmentally responsible.

Which of the following statements best summarizes the relationship between ethics and law and free choice?

The domain of ethics is found between codified law and free choice, because even though written laws do not bind ethics, standards of conduct based upon shared principles and values still exist.

Which of the following statements about the practical approach to ethical decision making is true?

The practical approach bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Which of the following best describes a corporation's ethical responsibility?

To act with fairness and impartiality, respecting the rights of individuals

Which of the following best describes a corporation's legal responsibility?

To conduct itself in ways that society deems important with respect to appropriate corporate behavior

Which of the following best describes a corporation's discretionary responsibility?

To go beyond societal expectations to contribute to a community's welfare

Which of the following best describes a corporation's economic responsibility?

To produce the goods and services that society wants and to maximize profits for its owners and shareholders

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with employees?

Tolerating a work environment that includes harassment

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with customers?

Using false or deceptive sales techniques

One expert on business ethics suggests that managers can ask themselves the following five questions to help resolve ethical dilemmas. Which of the following questions is NOT included among those five?

What can I realistically get away with?

Which of the following scenarios involves an ethical dilemma?

You and another manager are overseeing a large project. You have to sign off on a report that contains data you know the other manager did not verify.

Studies typically find _____ between a company's social responsibility and its financial performance.

a positive relationship

Managers who follow ethical leadership:

are fair in their dealings with employees and customers.

At the postconventional level of moral development, individuals:

are guided by an internal set of values based on universal principles of justice and right.

The formal statement that communicates what the company stands for and includes the company's values concerning ethics and social issues is known as its:

code of ethics

When it comes to human behavior, the values and standards that are written into the legal system and enforceable in the courts fall within the domain of:

codified law.

General statements of principle that define fundamental values and contain general language about company responsibilities are often called:

corporate credos.

Roberta, the CEO at Anderson Construction, serves on the board of directors for the local chapter of Habitat for Humanity. Each year, the company sponsors a Habitat Day in which all its employees actually work on a Habitat house. In this way, Anderson Construction is fulfilling a(n) _____ responsibility.

discretionary

Melanie believes that men and women should not receive different salaries if they have the same qualifications and are performing the same job. This belief comes out of her sense of:

distributive justice.

As marketing director at her firm, Julia is leading a team that is conducting forums with customers about potential adaptations to a current product line, making those products more responsive to customers' needs. These forums are part of the company's _____ responsibilities.

economic

The social performance model for evaluating a company's social responsiveness uses four criteria. They are:

economic, legal, ethical, and discretionary.

At the post conventional level of moral development, managers:

encourage others to think for themselves and focus on the needs of their followers

After reading about a study by Adam Grant, Malcolm decided to try _____ in order to increase his team's effectiveness based on Grant's claim that this approach was the biggest single predictor of team productivity.

encouraging greater help and support among team members

Citibank decided to purchase a new private jet for $50 million in 2009 after it received a $45 billion government bailout in taxpayer funds following the financial crisis of 2008. It later reversed this decision after backlash about its _____ responsibility as a corporation.

ethical

At the meeting, a purchasing agent within the corporation discloses the receipt of an invitation to a weeklong vacation at friend's condo in Vail, Colorado. This friend is also a vice president at one of the company's suppliers. The two individuals were friends before they came to work at their respective current jobs. To avoid any appearance of a conflict of interest, the purchasing agent wants approval from the corporation's:

ethics committee.

Green Cleaning Service has decided to hire three additional employees for a new cleaning crew. This decision falls within the domain of:

free choice.

When it comes to human behavior, the behavior about which the law has no say and for which an individual or organization enjoys complete freedom falls within the domain of:

free choice.

Whenever Zachary faces an ethical dilemma, he always decides to be completely honest and do what he feels is best for himself and his family. Zachary follows a(n) _____ approach as a guide for ethical decision making.

individualism

The production line that Hugo oversees has just malfunctioned and caused an accident that injured one worker. Hugo, to fulfill the company's _____ responsibility, will file a report and cooperate with OSHA inspectors in their investigation of the accident.

legal

If a behavior is ethical, it:

may be legal or illegal.

The most pressing concern for individuals at the conventional level of moral development is to:

meet social obligations.

One of your employees has just come to you saying that he is being sexually harassed by a coworker. He shows you suggestive notes and cartoons that have been left at his desk. He asks you to speak to other coworkers, who confirm the behavior has occurred. You must, as a(n) _____, reprimand the perpetrator and refer the perpetrator's employment status to the human resources department.

moral agent

In the war on terror, military forces have dropped bombs on various targets. The commander of a unit decides not to bomb a certain target because of intelligence that says numerous civilians are currently located there as well as enemy militants. This decision is based on a(n) _____ approach.

moral-rights

Managers faced with these kinds of tough ethical choices often benefit from a _____ strategy, which is one based on norms and values, to guide their decision making.

normative

At the preconventional level of moral development, individuals:

obey authority to avoid detrimental personal consequences

The purpose of a policy-based statement in an organization's code of ethics is to:

outline the procedures to be used in specific ethical situations.

As a company executive, the chief ethics officer is responsible for:

overseeing all aspects of ethics and legal compliance.

Janice works at a payroll company. She never uses the copy machine for personal papers, never takes a cup of coffee in the break room without putting a quarter in the jar, and never takes home pens or pencils from the office. Janice is operating at _____ of moral development.

potentially any one of the three levels

The purpose of an organization's ethics hotline is to provide employees with a channel to:

report questionable behavior.

Tracy operates from a higher level of development and as a manager, she focuses on the needs of followers, encouraging others to think for themselves. Tracy is a(n):

servant leader.

Stephanie is putting together a _____ in which she identifies the expectations, needs, importance, and relative power of various stakeholders, which may change over time.

stakeholder map

As Diego and his management team make strategic decisions, they factor in environmental and social concerns, making sure to consider the long-term effects of those decisions. They operate with a philosophy of:

sustainability.

Most ethical dilemmas involve a conflict between:

the needs of the part and the whole.

Companies may fare poorly when they use economic criteria as their only measure of responsibility, which is sometimes called:

the profit-maximizing view.

To measure the level of managerial success of decisions based on sustainability, managers use a:

triple bottom line.

In order to keep costs low and remain competitive in the market, Carrier has decided to move much of its production facility to Mexico. This decision was based on the _____ approach.

utilitarian

In the Enron scandal (2001), the company found a way to avoid reporting huge debts. A whistle-blower alerted authorities. Enron's CEO was clearly engaged in unethical behavior. He was sentenced to prison because:

values and standards that say a company can't falsify its financial documents are codified law.

Atlantic Healthcare provides free daycare for preschool-aged children of its employees. This _____ of the organization provides a positive human impact and unconditional society betterment for its own sake rather than for economic reasons.

virtuousness

Edward finds out that his company is not filtering the effluent by-product from its production process before draining it into a nearby stream as required by EPA regulations. Because his manager has been unreceptive to any suggestions in the past, Edward calls the local newspaper with information about this activity. Edward has engaged in:

whistle-blowing.