E-Man Chapter 3
76. According to proponents of the classical view of CSR, what drives businesses to make things like healthier foods and energy-efficient products? A. The government B. Profitability C. Owners and shareholders D. A sense of indebtedness to society E. Pressure from civil society
B
40. In the ________ view, ethical behavior treats people impartially and fairly. A. individualism B. justice C. moral rights D. utilitarian E. humanitarian
B
12. Cultural relativism is a form of ethical imperialism.
False
33. Which of the following is an instrumental value? A. Honesty B. Self-respect C. Freedom D. Family security E. Happiness
A
37. In business practice, the ________ view of ethical understanding and reasoning abilities may result in greed and a tendency to "push the law to its outer limits." A. individualism B. religious C. justice D. utilitarian E. moral rights
A
41. ________ justice involves the degree to which policies and rules are fairly applied to all individuals. A. Procedural B. Economic C. Distributive D. Commutative E. Interactional
A
95. Businesses are required by law to have boards of directors that are elected by ________ to represent their interests. A. customers B. government officials C. stockholders D. union leaders E. all employees
C
96. ________ is the oversight of top management by a board of directors. A. Ethical administration B. Executive leadership C. Corporate governance D. Final authority E. Command leadership
C
97. ________ is making sure day-to-day performance is achieved ethically and in socially responsible manner. A. Corporate governance B. Social leadership C. Ethical self-governance D. Stockholder control E. Command leadership
C
48. ________ is an attempt to impose one's ethical standards on other cultures. A. Polycentrism B. Moral relativism C. Ethical imperialism D. Cultural relativism E. Moral absolutism
C
7. Distributive justice is the degree to which others are treated with dignity and respect.
False
86. Which strategy of corporate social responsibility meets only economic responsibilities? A. Resistive B. Obstructionist C. Defensive D. Accommodative E. Proactive
B
32. Which of the following is a terminal value? A. Honesty B. Ambition C. Imagination D. Self-discipline E. Happiness
E
14. An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered unethical.
True
74. Issue urgency: A. indicates the extent to which stakeholders need immediate attention. B. refers to the managers' ability to maximize profits. C. refers to the shareholders' ability to maximize profits. D. refer to the capacity of the stakeholder to positively or negatively affect the stakes of the organization. E. indicates the validity and legitimacy of a stakeholder's interest in the organization.
A
51. Which of the following is a spotlight question when dealing with ethical dilemmas? A. What sort of trouble will I get into because of my decision? B. Are there any legal consequences to my decision? C. Who will be affected by my decision? D. How will I feel if my family finds out about my decision? E. How will my career be affected by my decision?
D
103. What are codes of ethics? What do they address?
Answer: Code of ethics are formal statements of an organization's values and ethical principles that set expectations for behavior. Ethics codes typically address organizational citizenship, illegal or improper acts, and relationships with coworkers and customers. Specific guidelines are often set for bribes and kickbacks, political contributions, honesty of books or records, and confidentiality of corporate information.
39. In the ________ view, ethical behavior respects and protects fundamental rights. A. individualism B. justice C. moral rights D. utilitarian E. humanitarian rights
C
42. Which of the following addresses biased hiring practices, favoring a particular community? A. Procedural justice B. Fundamental justice C. Distributive justice D. Commutative justice E. Interactional justice
C
43. Interactional justice involves the: A. degree to which policies and rules are fairly applied to all individuals. B. degree to which outcomes are allocated fairly among people and without respect to individual characteristics. C. degree to which people treat one another with dignity and respect. D. fairness of exchanges or transactions. E. honesty and integrity of business dealings.
C
34. The ________ view of ethical understanding and reasoning abilities considers ethical behavior to be that which delivers the greatest good to the greatest number of people. A. individualism B. religious C. justice D. utilitarian E. moral rights
D
73. Demand legitimacy: A. indicates the extent to which stakeholders need immediate attention. B. refers to the managers' ability to maximize profits. C. refers to the shareholders' ability to influence managers. D. refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization. E. indicates the validity and legitimacy of a stakeholder's interest in the organization.
E
93. Washo, a laundry detergent manufacturer, employs unskilled locals and trains them, manufactures its detergent using organic products. It uses biodegradable packaging that is sourced locally, and disposes its wastes using environmentally friendly methods. It follows the advice of its research team and takes discretionary actions in the hopes of making things better in the future. Washo is pursuing the ________ strategy of CSR. A. resistive B. obstructionist C. defensive D. accommodative E. proactive
E
38. According to the individualism view of ethical behavior, society will be best off if: A. individuals make decisions based on the greater common good. B. everyone works toward the betterment of society. C. everybody lives by the letter of the law. D. everyone acts in a way that maximizes his or her own happiness. E. everyone follows a universal moral code of behavior.
D
44. Swift Auto, a franchisee outlet for Electro, an electric car company, sells John Hanks an older model car. Swift Auto sells the older model without informing John of the newer, better models released by Electro in the same price band. According to which justice dimension would Swift Auto's conduct be considered unethical? A. Procedural B. Economic C. Distributive D. Commutative E. Interactional
D
89. A(n) ________ strategy accepts social responsibility and tries to satisfy society's basic ethical expectations. A. resistive B. obstructionist C. defensive D. accommodative E. proactive
D
17. In Kohlberg's preconventional level of moral development, moral thinking is largely limited to issues of punishment, obedience, and personal interest.
True
23. Strong work group identities that encourage loyalty and self-censorship are barriers to whistle blowing.
True
8. Commutative justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria.
False
5. Ethical behavior under a moral rights view is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards.
False
30. Corporate governance is making sure day-to-day performance is achieved ethically and in socially responsible ways.
False
63. Archie Carroll suggests that most managers act ________. A. ethically B. amorally C. immorally D. morally E. unscrupulously
B
55. The Sarbanes-Oxley Act of 2002 makes it easier for corporate executives to be tried and sentenced to jail for ________. A. sexual harassment B. nepotism C. financial misconduct D. biodata fraud E. misuse of organizational facilities
C
53. In Kohlberg's preconventional level of moral development, decisions: A. are made according to internal principles. B. are likely to be based on following social norms. C. made follow rules to help society run smoothly. D. are likely to be directed toward achieving personal gain. E. are consistent with universal principles.
D
66. Which of the following is true of a whistle blower? A. A whistleblower is the first to act unethically in an organization. B. Whistleblowers unintentionally disregard the ethics of an act or a decision. C. Whistleblowers are members of management who specifically look out for unethical behavior among employees. D. A whistleblower exposes the misdeeds of others in organizations. E. Whistleblowers are members of law enforcement specifically trained to deal with financial misconduct.
D
67. ________ describes the obligation of an organization to act in ways that serve both its own interests and the interests of society at large. A. Sustainability B. Corporate accountability C. Environmental stewardship D. Corporate social responsibility E. Corporate citizenship
D
78. The ________ view of CSR is that business should focus on broader welfare of the community as well as profits. A. shared value B. classical C. post-modern D. socioeconomic E. ethnocentric
D
19. The ethics culture in an organization sets high standards and may even push people to behave more ethically than they otherwise would.
True
20. A common statement by a rationalizer is "It's in everyone's best interests." This response involves the mistaken belief that because someone can be found to benefit from the behavior, the behavior is also in the individual's or the organization's best interests.
True
22. According to Archie Carroll, most managers remain mostly uninformed or undisciplined in considering the ethical aspects of our behavior.
True
25. The triple bottom line evaluates organizational performance on economic, social, and environmental criteria.
True
29. According to the classical view of CSR, the principal obligation of management should be to owners and shareholders.
True
4. The utilitarian view considers ethical behavior to be that which delivers the greatest good to the greatest number of people.
True
85. Vector Technologies, a manufacturer of refrigerators, used ozone depleting CFCs in its products. It downplayed the significance of ozone depletion for years, claiming that CFCs do not cause any significant harm to the ozone layer. Which of the following strategies of corporate social responsibility did Vector Technologies employ? A. Minimalist B. Obstructionist C. Defensive D. Accommodative E. Proactive
B
102. What is ethics intensity? Discuss the conditions that raise the ethics intensity of a situation.
Answer: Ethics intensity is the extent to which a situation is perceived to pose important ethics challenges. The conditions that raise the ethics intensity of a situation include the magnitude, probability, and immediacy of any potential harm, the proximity and concentration of the effects, and social consensus. A decision situation will elicit greater ethical attention when the potential harm is perceived as great, likely, and imminent, when the potential victims are visible and close by, and when there is more social agreement on what is good or bad about what is taking place.
98. What are instrumental and terminal values? Give examples of each.
Answer: Terminal values are preferences about desired ends, such as the goals one strives to achieve in life. Examples of terminal values considered important by managers include self-respect, family security, freedom, and happiness. Instrumental values are preferences regarding the means for accomplishing these ends. Among the instrumental values held important by managers are honesty, ambition, imagination, and self-discipline.
99. Explain the utilitarian view of ethical behavior.
Answer: The utilitarian view considers ethical behavior to be that which delivers the greatest good to the greatest number of people. Based on the work of 19th-century philosopher John Stuart Mill, this results-oriented point of view assesses the moral implications of actions in terms of their consequences. Business decision makers, for example, are inclined to use profits, efficiency, and other performance criteria to judge what is best for the most people.
36. The individualism view of ethical behavior is based on the belief that one's primary commitment is to the long-term advancement of self-interests. Lying and cheating for immediate gain are not tolerated by this ethical view point because lying and cheating: A. are inherently harmful to a person's psyche. B. serve no one's interest in the long run. C. are against the law. D. are contrary to all religious beliefs. E. cause an unfair distribution of resources.
B
50. Managers with strong ________, ones that provide personal rules or strategies for value-based decision making, will act more consistently and confidently than those without. A. religious affiliations B. ethical frameworks C. ethnocentric backgrounds D. social-centered behavior E. self-centered behavior
B
75. According to the classical view of CSR, the principal obligation of management should be to ________. A. suppliers B. owners C. consumers D. future generations E. the state or local government
B
57. When rationalizers tell themselves that "no one will ever know about it," they believe that: A. a questionable behavior is acceptable, especially in ambiguous situations. B. because someone can be found to benefit from the behavior, it is also in the individual's or the organization's best interests. C. a questionable behavior is really "safe" and will never be found out or made public. D. the organization's (on behalf of whom the individual acts questionably) best interests stand above all others. E. as long as people have acted in good faith their behavior is ethical.
C
46. Which of the following is a drawback of the moral rights view of ethical behavior? A. It relies on the assessment of future outcomes that are often difficult to predict and are tough to measure accurately. B. It presumes that individuals are self-regulating; however, not everyone has the same capacity or desire to control their behaviors. C. It is possible for a few individuals to take advantage of the freedom allowed by this perspective and disrupt the degree of trust that exists within a business community. D. It does not ensure that the outcomes associated with protecting individual rights are beneficial to the majority of society. E. It places an emphasis on fairness and equity, both of which cannot be ensured simultaneously.
D
72. Stakeholder power: A. indicates the extent to which stakeholders need immediate attention. B. refers to the managers' ability to maximize profits. C. refers to the shareholders' ability to influence managers. D. refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization. E. indicates the validity and legitimacy of a stakeholder's interests in the organization.
D
79. Which of the following statements is in agreement with the socioeconomic view of corporate social responsibility? A. Financial improvement can be achieved by being socially responsible. B. The primary responsibility of business is to maximize business profits. C. By acting responsibly, businesses avoid government regulation. D. Businesses must be concerned with the broader social concerns and not just with corporate profits. E. Society is served best when businesses are allowed to maximize their profits.
D
82. Which of the following is most likely to result in a virtuous circle? A. Felix Educational Services makes anonymous donations to charities every year. B. Compassion Today, a not-for-profit organization, provides free food and shelter to orphans. C. Santro Communication Technology funds frequent AIDS awareness programs held by a not-for-profit organization in the surrounding neighborhood. D. Mould Plastics incorporates environmentally friendly manufacturing techniques that also result in cost savings. E. Cryo Serve uses environmentally hazardous chemicals to reduce the cost of manufacturing its products and to maximize its profits.
D
90. Which strategy of corporate social responsibility meets economic, legal, and ethical responsibilities but not discretionary responsibilities? A. Resistive B. Obstructionist C. Defensive D. Accommodative E. Proactive
D
10. Cultural relativism suggests ethical standards apply universally across all cultures.
False
2. Terminal values are preferences regarding the means to desired ends.
False
16. Asking spotlight questions is a powerful way to test whether a decision is consistent with an individual's personal ethical standards.
True
59. George works for Spin, a billboard advertising agency, which hires billboards from owners on behalf of clients. George routinely accepts pay-offs from billboard owners in exchange for referring their billboards to clients. This behavior could result in his dismissal from Spin, if found out. Which statement is George most probably utilizing to rationalize his actions? A. "It's not really illegal." B. "It's in everyone's best interests." C. "No one will ever know about it." D. "The organization will stand behind me." E. "I cannot be held responsible."
c
83. A(n) ________ strategy tries to avoid and resist pressures for social responsibility. A. minimalist B. obstructionist C. defensive D. accommodative E. proactive
B
84. In the ________ strategy of corporate social responsibility, social demands lying outside the organization's perceived self-interests are resisted. A. minimalist B. obstructionist C. defensive D. accommodative E. proactive
B
15. Questions such as "Is it legal?," "Is it right?," "Whom does it affect?," "Who benefits?," and "Who gets hurt?" are referred to as spotlight questions.
False
18. In Kohlberg's conventional level of moral development, the individual is strongly principle-centered.
False
60. According to Archie Carroll, a(n) ________ manager is defined as a manager who chooses to behave unethically. A. amoral B. apathetic C. immoral D. individualist E. ethnocentric
C
77. The classical view of CSR is that businesses should focus on ________. A. the environment B. owners and shareholders C. profits D. labor unions E. future generations
C
87. A(n) ________ strategy does the minimum legally required to display social responsibility. A. leadership B. obstructionist C. defensive D. accommodative E. proactive
C
69. The ________ evaluates organizational performance on economic, social, and environmental criteria. A. social denominator B. corporate critical line C. stewardship audit D. global value audit E. triple bottom line
E
81. A company following the shared value view of CSR will most likely: A. become an add-on initiative—funding activities like philanthropy, environmental preservation, and community projects. B. pursue a narrow stakeholder perspective focused on maximizing short-term profits. C. pursue its own interests in competitive settings and make products that are profitable. D. put society and the environment ahead of shareholders and stakeholders. E. integrate socially responsible behavior into everyday business goals and activities for an improved financial performance.
E
91. A(n) ________ strategy actively pursues social responsibility by taking discretionary actions to make things better in the future. A. resistive B. obstructionist C. defensive D. accommodative E. proactive
E
88. Trust Inc. is a chit fund company that offers small loans to individuals. Legal guidelines regarding small loans require the terms and conditions of payback be accessible to customers. Trust complies with this rule by putting up a poster with terms and conditions in a back room of their office. Only customers explicitly wishing to see the terms and conditions are taken to the back room. What strategy of corporate social responsibility does Trust Inc. follow? A. Leadership B. Obstructionist C. Defensive D. Accommodative E. Proactive
C
47. A Japanese expatriate argues that the practice of giving corporate gifts is acceptable in another country as long as it is consistent with local laws and customs. In this scenario, the Japanese expatriate is guided by ________. A. ethnocentrism B. moral relativism C. ethical imperialism D. cultural relativism E. moral absolutism
D
49. According to Thomas Donaldson, the core values or "hyper-norms" that should transcend cultural boundaries focus on human dignity, basic rights, and ________. A. cultural tolerance B. social responsibility C. acceptance D. good citizenship E. stewardship
D
54. At the postconventional level of moral development, the individual is strongly ________. A. social-centered B. peer-pressure oriented C. self-centered D. principle-centered E. punishment-driven
D
62. In Kohlberg's terms, which of the following types of manager is at the postconventional level of moral development? A. Unethical B. Amoral C. Ethnocentric D. Moral E. Immoral
D
92. Which corporate social responsibility strategy meets economic, legal, ethical, and discretionary responsibilities? A. Resistive B. Obstructionist C. Defensive D. Accommodative E. Proactive
E
94. Which of the following CSR strategies addresses the most number of responsibilities? A. Resistive B. Obstructionist C. Defensive D. Accommodative E. Proactive
E
21. An amoral manager chooses to behave unethically.
False
56. After doing something that might be considered unethical, a rationalizer says: "It's not really illegal." This expresses a mistaken belief that: A. one's behavior is acceptable, especially in ambiguous situations. B. because someone can be found to benefit from the behavior, it is also in the individual's or the organization's best interests. C. a questionable behavior is really "safe" and will never be found out or made public. D. the organization's (on behalf of whom the individual acts questionably) best interests stand above all others. E. as long as people have acted in good faith, their behavior is ethical.
A
61. According to Archie Carroll, a(n) ________ manager disregards the ethics of an act or a decision, but does so unintentionally or unknowingly. A. amoral B. apathetic C. immoral D. individualist E. ethnocentric
A
80. The ________ view of CSR approaches business decisions with the understanding that economic and social progress are interconnected. A. shared value B. classical C. post-modern D. socioeconomic E. ethnocentric
A
65. Which of the following is the top reason why almost half the workers in the United States fail to blow the whistle to report wrongdoings they observe at work? A. A very bureaucratic process of reporting B. Weak work group identities that discourage loyalty and self-censorship C. The fear of being reprimanded if caught D. The belief that no corrective action would be taken E. The lack of any commitment to the organization
D
13. An American international business executive guided by rules of moral absolutism would argue that the use of slavery is acceptable in another country as long as it is consistent with local laws.
False
24. Corporate social responsibility means taking personal responsibility to always respect and protect the interests of society at large.
False
26. The three Ps of organizational performance are patience, politeness, and planning.
False
27. Competitors, labor unions, public-interest groups, and legal institutions are all shareholders of an organization.
False
28. Demand legitimacy indicates the extent to which a stakeholder's concerns need immediate attention.
False
3. Among the terminal values held important by managers are honesty, ambition, imagination, and self-discipline.
False
58. When rationalizers proceed with a questionable action because of a mistaken belief that "the organization will stand behind me," they believe that: A. a questionable behavior is acceptable, especially in ambiguous situations. B. because someone can be found to benefit from the behavior, it is also in the individual's or the organization's best interests. C. a questionable behavior is really "safe" and will never be found out or made public. D. the organization's (on behalf of whom the individual acts questionably) best interests stand above all others. E. as long as people have acted in good faith their behavior is ethical.
D
6. Procedural justice involves the degree to which policies and rules are fairly applied to all individuals.
True
31. Ethics is defined as the _____ code of principles that sets standards of good or bad, or right or wrong, in one's conduct. A. social B. legal C. moral D. cultural E. religious
C
70. The 3 P's of organizational performance are: A. planning, process, and profit. B. procurement, process, and profit. C. procurement, processing, and planet. D. place, people, and policy. E. profit, people, and planet.
E
45. Which of the following is a drawback of the utilitarian view of ethical behavior? A. It relies on the assessment of future outcomes that are often difficult to predict and are tough to measure accurately. B. It presumes that individuals are self-regulating; however, not everyone has the same capacity or desire to control their behaviors. C. It is possible for a few individuals to take advantage of the freedom allowed by this perspective and disrupt the degree of trust that exists within a business community. D. It does not ensure that the outcomes associated with protecting individual rights are beneficial to the majority of society. E. It places an emphasis on fairness and equity, both of which cannot be ensured simultaneously.
A
52. When faced with an ethical dilemma, spotlight questions are used to test possible decisions for: A. the risk of public disclosure. B. potential harm to self. C. the risk to job security. D. potential harm to others. E. possible legal implications.
A
101. Write a note on Kohlberg's levels of moral development.
Answer: Lawrence Kohlberg describes the three levels of moral development—preconventional, conventional, and postconventional. There are two stages in each level, and Kohlberg believes that we move step by step through them as we grow in maturity and education. In Kohlberg's preconventional level of moral development the individual is self-centered. Moral thinking is largely limited to issues of punishment, obedience, and personal interest. Decisions made in the preconventional stages of moral development are likely to be directed toward achieving personal gain or avoiding punishment and are based on obedience to rules. In the conventional level of moral development, the individual is more social-centered. Decisions made in these stages are likely to be based on following social norms, meeting the expectations of group memberships, and living up to agreed-upon role obligations. At the postconventional level of moral development, the individual is strongly principle-centered. This is where a strong ethics framework is evident. The individual is willing to break with norms and conventions, even laws, to make decisions consistent with universal principles. Kohlberg believes that only a small percentage of people progress to the postconventional stages.
35. Susan Miles, the CEO of Alpha Computing Inc., shut down offshore operations of Alpha Computing Inc. during a period of economic recession. This resulted in over 20% cut in the workforce but was instrumental in keeping the company profitable and in saving the jobs of remaining workers. Which ethical viewpoint would Susan most likely use to justify her decision? A. Individualism B. Religious C. Justice D. Utilitarian E. Moral rights
D
1. Values are broad beliefs about what is appropriate behavior.
True
11. Ethical imperialism is an attempt to impose one's ethical standards on other cultures.
True
9. A drawback of the utilitarian view is that it relies on the assessment of future outcomes that are often difficult to predict and that are tough to measure accurately.
True
64. A ________ is a formal statement of an organization's values and ethical principles that set expectations for behavior. A. code of ethics B. mission statement C. code of conduct D. legal code E. value statement
A
68. Stewardship in management means taking personal responsibility to always respect and protect the interests of ________ at large. A. society B. shareholders C. management D. the environment E. the organization
A
71. The triple bottom line for assessing organizational performance evaluates how well organizations are doing on: A. economic, social, and environmental performance criteria. B. industrial, market, and customer satisfaction criteria. C. ecological, environmental, and financial criteria. D. humanitarian, sociological, and research criteria. E. geological, anthropological, and lean performance criteria.
A
100. Write a note on the four dimensions of justice issues in organizations. Illustrate your answer with examples.
Answer: Justice issues in organizations are often addressed on four dimensions—procedural, distributive, interactional, and commutative. Procedural justice involves the degree to which policies and rules are fairly applied to all individuals. For example, does a sexual harassment charge levied against a senior executive receive the same full hearing as one made against a first-level supervisor? Does a woman with the same qualifications and experience as a man receive equal treatment under a no-discrimination policy for hiring or promotion? Distributive justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria. For example, are members of minority groups adequately or proportionately represented in senior management positions? Do universities allocate a proportionate share of athletic scholarships to males and females? Interactional justice involves the degree to which people treat one another with dignity and respect. For example, does a bank loan officer take the time to fully explain to an applicant why he or she was turned down for a loan? Commutative justice focuses on the fairness of exchanges or transactions. According to this principle, the exchange is deemed to be fair if all parties enter into it freely, have access to relevant and available information, and obtain some type of benefit from the transaction.