Chapter 4 Questions

New York passed a law requiring no smoking in bars and restaurants. Owners who pressure bartenders and waiters to sell to people who are smoking in order to keep profits high are taking a(n) _____ stance toward social responsibility a) reaction b) obstructionist c) proactive d) accommodative e) participative

b) obstructionist - an approach to social responsibility in which firms do as little as possible to solve social or environmental problems

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

b) rebates

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

b) justice

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

a) Consumer Protection

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

d) accommodative - a social responsibility stance in which an organization meets its legal and ethical obligations but will also go beyond these obligations in selected cases

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

e) CEO, CFO, and COO

As applied to social responsibility, what function of management do such things as social audits represent? a) controlling b) organizing c) leading d) directing e) planning

a) controlling

When IBM makes large contributions to the performing arts, this 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

a) general social welfare - charitable contributions

Which of the following represents a major shortcoming associated with the implementation of codes and 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

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

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

b) adhere to ethical standards themselves

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 statute e) making human resources responsible for complying with EEOC standards

b) creating a committee to write a code of ethics or review proposals concerning selection and promotion - the extent to which an organization and its members follow basic ethical standards of behavior

Mary works for a department in State government. She has seniority and knows her union will protect her. She spends most of her day reading news or books on the computer. 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

b) relationship of the employee to the firm

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

b) the natural environment -environmentally sensitive products, recycling, public safety

The treatment of employees by the organization includes which area of ethical concern? a) conflicts of interest b) wages c) financial disclosure d) advertising e) expense accounts

b) wages

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) ethical compliance b) whistle-blowing c) leadership practices d) corporate culture modification e) ethical compliance

b) whistle-blowing - the disclosure by an employee of illegal or unethical conduct on the part of others within the organization; informal organizational dimension

Which of the following statements is NOT one of the arguments offered in favor of social responsibility? a) 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 such as these 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

c) Business executives are uniquely qualified to make decisions such as these

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 the above

c) corporations lack expertise

All of the following are common approaches that businesses use to influence government EXCEPT... a) favors b) lobbying c) direct contributions to election campaigns d) political action committees e) personal contacts

c) direct contributions to election campaigns

When a manager behaves in a questionable manner, the company may establish a peer review panel to evaluate the alleged misconduct. This is an example of... a) legal compliance b) whistle-blowing c) ethical compliance d) cultural forcing e) forced compliance

c) ethical compliance - the extent to which an organization and its members follow basic ethical standards of behavior

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

c) evaluative compliance

You suspect that a manager is stealing company funds for his own use, but you decide to ignore it. Your action is... a) legal and ethical b) illegal but not unethical c) legal but unethical d) illegal and unethical e) illegal but ethical

c) legal but unethical

Because Coca-Cola distributes its products in Israel, several Arab nations have banned the product. Which general area of social responsibility is most affected by this product ban? a) general social welfare b) the natural environment c) organizational stakeholders d) the external political-legal environment e) the external cultural environment

c) organizational stakeholders - people and organizations directly affected by the behaviors of an organization and that have a stake in its performance

When Global Printing spent a half million dollars to purchase a lavish home in which to entertain clients, allowed managers to fly anywhere they wanted in corporate jets, and allowed nepotism to dominate its hiring practices, which general area of social responsibility was it affected? a) general social welfare b) the natural environment c) organizational stakeholders d) the external political-legal environment e) the external cultural environment

c) organizational stakeholders - people and organizations directly affected by the behaviors of an organization and that have a stake in its performance

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

c) proactive

L'Oreal has a foundation responsible for corporate philanthropy. This is a(n) _____ stance. a) reactive b) obstructionist c) proactive d) accommodative e) defensive

c) proactive - a social responsibility stance in which an organization views itself as a citizen in a society and proactively seeks opportunities to contribute

When Girl Scouts sell cookies at Wal-Mart the company eventually donuts to their troop. Wal-Mart is an example of the _____ stance. a) reactive b) obstructionist c) proactive d) accommodative e) defensive

c) proactive - a social responsibility stance in which an organization views itself as a citizen in a society and proactively seeks opportunities to contribute

Which of the following is NOT a basic approach to social responsibility? a) accommodative stance b) defensive stance c) reactive stance d) proactive stance e) obstructionist stance

c) reactive stance

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) Managing legal compliance is usually delegated to the appropriate mangers e) Legal compliance is usually handled by a committee of managers from various functional areas

d) Managing legal compliance is usually delegated to the appropriate mangers

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

d) Regulation

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

d) a written code of ethics and top management support

When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. Shop Rite is an example of the _____ stance. a) reactive b) obstructionist c) proactive d) accommodative e) defensive

d) accommodative - a social responsibility stance in which an organization meets its legal and ethical obligations but will also go beyond these obligations in selected cases

The day before Ford began negotiations with the United Auto Workers (UAW), it announced a 10% cut in salaried workers. This was a preemptive attempt to affect bargaining and 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

d) employees treat the organization

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

d) lobbyist - the use of persons or groups to formally represent an organization or group of organizations before political bodies to influence the government

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 the above

e) all of the above

Genzyme is a pharmaceutical company that manufactures Cerdase, a drug that treats a genetic illness, 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, you might assume that Genzyme take a(n) _____ stance. a) reactive b) obstructionist c) proactive d) accommodative e) defensive

e) defensive - a social responsibility stance in which an organization does everything that is required of it legally, nut nothing more

Manager's 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

e) defensive - a social responsibility stance in which an organization does everything that is required of it legally, nut nothing more

Target does not allow any Girl Scout to sell cookies in front of their stores. Target is an example of the _____ stance. a) reactive b) obstructionist c) proactive d) accommodative e) defensive

e) defensive - a social responsibility stance in which an organization does everything that is required of it legally, nut nothing more

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

e) obstructionist - an approach to social responsibility in which firms do as little as possible to solve social or environmental problems