Ethics Test 2
The study of good and evil, right and wrong, and just and unjust actions in business is called:
business ethics
According to conservative economists:
business is most responsible when it makes money efficiently.
With regard to CSR, the growing number of board committees and vice presidents of corporate responsibility implies more _____ than usually exists in practice.
centralization
The learning of specific virtues such as prudence or honesty is known as:
character development.
According to the doctrine of social Darwinism:
charity interferes with the natural evolutionary process in which society shed its less fit to make way for the better adapted.
According to the _____ view of economics, a business is socially responsible if it maximizes profits while operating within the law.
classical
Formal statements of aspirations, principles, guidelines and rules, for corporate behavior are known as:
codes of conduct.
Most companies, including nearly all of the largest multinationals, vary in their reaction to pressures in the operating environment across a spectrum from reluctance to enthusiasm. At the right of this spectrum:
companies seek to be proactive by anticipating demands and resolving problems before they arise.
The example of _____ is perhaps the strongest influence on integrity in a corporate culture.
company leaders
When a civil court requires payments by a company to correct "concrete losses" experienced by injured parties, these payments are called:
compensatory damages
The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with the ethical principle of:
compensatory justice
A(n) _____ approach teaches employees to meet legal and regulatory requirements and emphasizes following rules.
compliance
According to ____, corporate social responsibility creates administrative expenses, distracts executives, confuses economic goals with other goals, and subtracts from social welfare when the corporation is less efficient.
conservative economists
The set of values, norms, and rules that define a company are called:
corporate culture
The duty of a corporation to avoid harm to the assets of a community is called:
corporate social responsibility
The fundamental idea behind _____ is that corporations have duties that go beyond lawful execution of their economic function.
corporate social responsibility
A method of ethical reasoning in which insight comes from answering a list of questions is known as the:
critical questions approach
A progressive business model:
defines a strategy that meets market needs by mitigating social problems.
When a manager "cuts corners" by acting in questionable ways, he/she is acting according to the:
ends-means ethic
The idea that a manager has the right to take a certain action as long as it does not deprive a worker of one of his rights is fundamental to the ethical principle of:
equal freedom
Corporate cultural values found in documents such as mission statements and codes of ethics are known as:
espoused values
Explain the basic components of a company's mission statement. What should be included in this statement?
A mission statement is a brief statement of the basic purpose of an organization. The best ones define the business, differentiate it from competitors, explain relationships with stakeholders, and focus energy on critical activities and goals.
All of the following are examples of social performance indicators in the triple bottom line EXCEPT: A. total amount of employee wages and benefits. B. total hours of employee training. C. total number of incidents of discrimination and actions taken. D. total number of substantiated complaints regarding breaches of customer privacy.
A. total amount of employee wages and benefits.
Visible behaviors like patterns of interaction come under which of the following corporate culture levels?
Artifacts
Which level of corporate culture includes both physical expressions of culture and visible behaviors?
Artifacts
Under which of the following corporate cultural values do symbolic displays such as picture walls of former executives come under? A. Espoused values B. Artifacts C. Enacted values D. Tacit underlying values
B. Artifacts
Which sphere of justice requires that the benefits and burdens of company life be distributed using impartial criteria? A. The proportionality ethic B. Distributive justice C. Restorative justice D. Retributive justice
B. Distributive justice
Which of the following schools holds that in terms of biological and psychological needs, human nature is the same everywhere? A. Reciprocity B. Ethical universalism C. Amorality D. Ethical relativism
B. Ethical universalism
Which of the following is a relevant categorization of stakeholders according to their power to affect a firm's business? A. Neutral, supportive, or confrontational B. High, medium, or low influence C. Neutral, investors, or environmentalists D. Feminists, investors, or environmentalists
B. High, medium, or low influence
All of the following are examples of economic performance indicators in the triple bottom line EXCEPT: A. net revenues B. taxes paid C. ratio of basic salary of men to women by employee category D. charitable monetary contributions to local organizations
C. ratio of basic salary of men to women by employee category
Companies can manage their responses to social pressures by moving through a process of:
CSR implementation.
Which of the following is a variant of strategic philanthropy in which charitable contributions are based on purchases of a product?
Cause-related marketing
_____ is regulation by nonstate actors based on social norms or standards enforced by social or market sanctions.
Civil regulation
_____ are those social issues/impacts related to factors that influence success in the marketplace.
Competitive social issues
What is consequentialism?
Consequentialism holds that actions are right or wrong based on their consequences.
_____ values are the central beliefs that guide decisions and reside deep in a company's culture.
Core
Explain what is meant by corporate philanthropy and how it is expressed.
Corporate philanthropy is the concern for the welfare of society expressed by gifts of money or property to the needy or to activities for social progress.
What is corporate social responsibility?
Corporate social responsibility is the duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets. It is also known as corporate citizenship, stakeholder management, sustainability, and, in Japan, kyosei, a word that translates as "living and working together for the common good."
Which of the following are responses to competitive forces in markets? A. Private regulations B. Mandated actions C. Voluntary actions D. Market actions
D. Market actions
Retributive justice allows that pay raises can be distributed on the basis of friendship rather than on performance.
FALSE
Rights are an absolute doctrine with definite limits.
FALSE
Skeptics call cause-related marketing "conservation philanthropy".
FALSE
Soft law creates binding obligations for corporations.
FALSE
The Golden Rule of ethics is: "Justice is nothing else than the interest of the stronger."
FALSE
The Golden Rule of ethics suggests to managers that it is acceptable to treat workers as simply factorsof production that should be manipulated in the manager's best interest.
FALSE
The belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society is known as business ethics.
FALSE
The principle of equal freedom can act as a tiebreaker when the rights of two managers are in conflict.
FALSE
To be effective, performance goals must be general and progress toward them should be measurable.
FALSE
Utilitarianism protects both individual needs and community needs equally.
FALSE
What is right or wrong in a business decision involving ethical concerns is always a clear decision.
FALSE
When a company signs a DPA or NPA it is indicted.
FALSE
When a court makes a monetary award to a plaintiff to correct concrete losses of his business, this is called punitive damages.
FALSE
Corporations are not allowed to invoke the _____ Amendment right against self-incrimination when prosecutors ask them to turn over documents related to a crime.
Fifth
Which legal doctrine, created by the Supreme Court in 1909, states that corporations are liable for the actions of employees who commit a crime in the course of their employment when their act was for the benefit of the company?
Respondeat superior
This is the economic growth that meets the needs of the present without consuming social and environmental resources in a way that harms future generations.
Sustainable development
A court awards punitive damages to a plaintiff only if malicious and willful misconduct by a company was established.
TRUE
A strategy is a basic approach, method, or plan for achieving an objective.
TRUE
According to Herbert Spencer, charity is right only when it raises the character and superiority of the giver.
TRUE
According to the radical Progressives, corporate social responsibility is an insufficient doctrine.
TRUE
All corporate cultures have ethical dimensions.
TRUE
Corporations should try to internalize adverse costs of production borne by society.
TRUE
During the Progressive era in U.S. history, business managers were considered to be trustees of their local communities.
TRUE
Ethical intuition is a form of social intuition.
TRUE
Executives are more often prosecuted than corporations, though harder to convict.
TRUE
Governments advance corporate responsibility mainly with binding national regulation.
TRUE
In terms of a company's social report, the opposite of transparency is opacity.
TRUE
Job descriptions that include sustainability duties encourage accountability.
TRUE
Milton Friedman believes that the sole objective of managers should be maximization of profit.
TRUE
Most U.S. companies have a written code of ethical conduct.
TRUE
Most mission statements center on profits and products.
TRUE
Natural selection is the evolutionary basis of ethics.
TRUE
No matter what the source of a code of conduct, the target is the corporation.
TRUE
Philosopher G. E. Moore believed that a good manager can "sense" the difference between right and wrong behavior.
TRUE
Rights have corresponding duties associated with them.
TRUE
Social responsibility is still frequently seen as a superfluous activity only indirectly related to the bottom line, one that costs money, takes time, and reduces efficiency.
TRUE
Standards of ethical behavior were arguably clearer in ancient Greek civilization than they are now.
TRUE
The Tripartite Declaration came in response to the rising power of multinational corporations in the 1960s.
TRUE
The application of one nation's laws within the borders of another nation is known as extraterritoriality.
TRUE
The basic purpose of the study of ethics is to have individuals in society act cooperatively as a social whole.
TRUE
The categorical imperative, an ethical guide for behavior, is based on the writings of German philosopher Immanuel Kant.
TRUE
The conventionalist ethic is a thin justification for questionable behavior by managers.
TRUE
The duty of a company to create wealth in ways that avoid harm to, protect, or enhance societal assets is called corporate social responsibility.
TRUE
The economic and political factors within a society affect an individual's chances for justice to be served.
TRUE
The idea that the needs of workers should be subordinate to the needs of the organization is fundamental to the organization ethic.
TRUE
The most effective assurance that information in a corporate sustainability report is correct is provided by independent, external auditors.
TRUE
The top management of a company sets the tone for the company's social goals.
TRUE
The triple bottom line has become the most accepted approach to CSR reporting because it can satisfy a range of demanding stakeholders.
TRUE
The virtue ethic states that ethical behavior arises from the virtues within one's character.
TRUE
There is no single formula for social responsibility that fits all companies.
TRUE
There is no specific part of the brain that makes ethical decisions.
TRUE
There is overwhelming evidence that individuals are influenced to be more or less ethical by the situations they are in.
TRUE
Top managers are the strongest influence on the integrity of the company's managers.
TRUE
Training is the key to communicating ethics and compliance knowledge.
TRUE
When a company changes its philosophy of giving money to charitable organizations from pure generosity to commercial objectives, it is called strategic philanthropy.
TRUE
When managers are convicted of criminal behavior, prison sentences are imposed based on a numerical point system.
TRUE
After the turn-of-the-century fraud scandals, Congress created requirements for antifraud mechanisms with this 2002 Act.
The Sarbanes-Oxley Act
A manager faced with an ethical dilemma asks herself how it would feel to explain the decision to a wider audience by using this ethical principle.
The disclosure rule
The idea that there are no common ethical values but that each culture determines these values is a basic tenet in:
ethical relativism
The idea that ethical rules are "transcultural" because the same ethical rules apply to all cultures is a fundamental tenet in:
ethical universalism
The study of which actions are "right" and which actions are "wrong" is called:
ethics
The coordinated efforts of a company to prevent its managers from breaking the law and to act ethically are called:
ethics programs
A(n) _____ cost is a production cost not paid by a firm or its customers, but by members of society.
external
When a factory dumps toxic waste into a stream, it results in a(n) _____ cost for society.
external
The application of one nation's laws within the borders of another nation is known as:
extraterritoriality.
The idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods is known as:
fair trade
In the realm of international law, _____ are found mainly in treaties, creates binding rights, prohibitions, and duties.
hard laws
According to Thomas Donaldson and Thomas W. Dunfee, the right to political participation is a(n):
hypernorm
According to Thomas Donaldson and Thomas W. Dunfee, ethical principles that are the basis for all other ethical principles are called:
hypernorms
Rights to life are an example of:
hypernorms
Moral intuition is a form of social intuition that is adaptive to the social environment and predominates in individual ethical decisions, more so when they are:
immediate
A non-prosecution agreement is one:
in which U.S. attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime, cooperate, and compensate victims.
In 2009, U.S. charitable giving was about $304 billion. The largest proportion of this was given by:
individuals
According to the Committee for Economic Development, the _____ circle of social responsibility aims at efficient execution of economic functions so that the society can achieve economic growth.
inner
Classical ideology focused solely on the _____ circle of social responsibility.
inner
The concentric circle of social responsibility that encompasses responsibility to exercise the economic function with a sensitive awareness of changing social values and priorities is the:
intermediate circle.
Neuroscience provides a basis for the _____ ethic set forth by philosopher G. E. Moore more than a century ago.
intuition
The idea that a manager simply "knows" the difference between right and wrong actions is fundamental to the:
intuition ethic
If a company issues ethics guidelines that include the statement: "If an action feels wrong, don't do it," the company is applying the:
intuition ethic.
The idea that the needs of workers should be subordinate to the needs of the organization is the basis of the:
organization ethic
The concentric circle of responsibility that outlines newly emerging and still amorphous responsibilities that business should assume to improve the social environment, even if they are not directly related to specific business processes is the:
outer circle.
When a company gives monetary gifts to society in order to advance social welfare, it is called:
philanthropy
The saying, "Your right to swing your fist ends where my nose begins" is a colloquial version of the:
principle of equal freedom
Civil regulation is also known as:
private regulation
The set of rules that a manager can use to make decisions that have both good and bad consequences is the basis of the:
proportionality ethic
When a civil court requires payments by a company that are in excess of actual losses to injured parties, these payments are called:
punitive damages
A _____ is an agent of a company whose corporate role puts him/her in a position of power over the fate of not just stockholders, but also of others such as customers, employees, and communities.
trustee
At one point of time, courts consistently held charitable gifts to be ____, that is, "beyond the law," because the charters prevalent during that time did not expressly permit them.
ultra vires
"Actions that promote happiness are right while actions that promote unhappiness are wrong" is the basis of the:
utilitarian ethic
Jeremy Bentham developed the idea of _____ as a guide to ethics.
utilitarianism
One problem with _____ is that in practice it has led to self-interested reasoning.
utilitarianism
A _____ is the sequence of coordinated actions that add benefit to a product or service.
value chain
The idea that character development is the wellspring of ethical behavior is known as the:
virtue ethic
When a company indulges in charity, it is said to be undertaking a:
voluntary action
When a worthwhile action of a company goes above and beyond what is required by government regulations, it is called a:
voluntary action
Strategic initiatives where the firm seeks to profit from solving a social problem are an example of:
voluntary actions
The four cardinal virtues identified by Plato are justice, temperance, courage, and:
wisdom
Define a business model and explain its purpose.
A business model is the underlying idea or theory that explains how a business will create value by making and selling products in the market. The theory is validated if the business makes a profit.
Explain what is meant by corporate social responsibility.
A corporation should assess its current situation and activities based on the society. This is known as its corporate social responsibility. Companies manage their responses to social pressures by moving through a process of CSR implementation.
What is a strategy? Discuss the implementation of a CSR strategy.
A strategy is a basic approach, method, or plan for achieving an objective. To establish its CSR objective, a company can consider options suggested by the profile of its situation constructed in the prior CSR review stage. This profile can be analyzed to find the strengths and weaknesses in the company's social response and the threats and opportunities in its environment. To be carried out, the strategy must be translated into specific goals and performance objectives, embedded in policies and procedures, reinforced with processes, and supported by both the formal structure and the informal elements of corporate culture.
Which of the following is a relevant categorization of stakeholders according to their orientation to the firm? A. Confrontational, neutral, or supportive B. High, medium, or low influence C. Neutral, low, or medium influence D. Feminists, investors, or environmentalists
A. Confrontational, neutral, or supportive
All variations of ethical principle should conform to which of the following? A. Hypernorms B. Externalities C. Moral muteness D. Master morality
A. Hypernorms
Which of the following statements about a CSR review is false? A. It explores regulatory requirements, but cannot examine competitors' initiatives. B. It involves an engagement of stakeholders to reveal expectations in society. C. It can begin with a definition of CSR to provide a focus. D. It involves a discovery of core values.
A. It explores regulatory requirements, but cannot examine competitors' initiatives.
Which of the following defines a business, differentiates it from competitors, explains relationships with stakeholders, and focuses energy on critical activities and goals? A. Mission statement B. Annual report C. Social contract D. Code of conduct
A. Mission statement
Which of the following ethical principles is primarily a perfectionist rule for interpersonal relations? A. The Golden Rule B. The organization ethic C. The Doctrine of the Mean D. The principle of equal freedom
A. The Golden Rule
Which of the following ethical principles is based on the fundamental idea of "a command that admits no exception"? A. The categorical imperative B. The Doctrine of the Mean C. The disclosure rule D. The rights ethic
A. The categorical imperative
Identify the ethical principle that states that managers are responsible for the consequences when they create situations leading to both good and evil effects. A. The principle of proportionality B. The principle of justice C. The principle of utility D. The principle of equal freedom
A. The principle of proportionality
Which of the following believed that both good and evil were a natural part of human nature? A. The realist school B. The school of ethical relativism C. The school of ethical universalism D. The legalist school
A. The realist school
When American Express Co. advertised that it would donate 3 cents per transaction to nonprofit anti-hunger groups over a two-month period for all charges against its credit card, it was an example of:
A. cause-related marketing
Which ethical principle asserts that right actions are found in the area between extreme behaviors—labeled as excess on the one hand and deficiency on the other? A. The principle of equal freedom B. The Doctrine of the Mean C. The categorical imperative D. The theory of justice
B. The Doctrine of the Mean
Which of the following ethical principles is based on the idea that a manager can do whatever he wants as long as he does not break the law? A. The principle of equal freedom B. The conventionalist ethic C. The Doctrine of the Mean D. The disclosure rule
B. The conventionalist ethic
Which of the following is a rare variant of the progressive model wherein a founder with noble impulses left a culture inclined to corporate responsibility? A. The local business B. The large corporation C. The traditional business D. The small company
B. The large corporation
Which of the following is true regarding problems faced by cross-border corporate power? A. International law strongly addresses the social impacts of business. B. Transnational corporations are subject to uneven regulation in developing nations. C. Strict regulations ensure that corporations are made directly accountable for social harms. D. International law has strongly codified norms protecting commercial rights, human rights, and other social resources.
B. Transnational corporations are subject to uneven regulation in developing nations.
All of the following statements about a functional magnetic resonance imaging (fMRI) are true EXCEPT: A. it is a method used to map activity in neural networks during ethical decision making. B. it can pinpoint neural activity to within 1 micrometer in the brain. C. it measures changes in blood flow and blood oxygen content related to neural activity. D. it works by detecting shifts in magnetic properties of hemoglobin.
B. it can pinpoint neural activity to within 1 micrometer in the brain.
All of the following are examples of environmental performance indicators in the triple bottom line EXCEPT: A. energy use B. taxes paid C. changes in natural habitats caused by the company's operations D. materials used by weight or volume
B. taxes paid
Identify the correct statement about deferred prosecution agreements (DPAs). A. A company can be prosecuted even if it has signed a DPA. B. The government will not prosecute if the corporation takes steps to compensate victims and prevent future wrongdoing. C. Because corporations are so fearful of indictment, they are drawn into DPAs. D. It is an agreement between a prosecutor and an individual to delay prosecution while the company takes remedial actions.
C. Because corporations are so fearful of indictment, they are drawn into DPAs.
Which of the following is a traditional, passive form of corporate philanthropy characterized by donations to multiple worthy causes without any relationship to business strategy? A. Altruism B. Cause-related marketing C. Checkbook philanthropy D. Venture philanthropy
C. Checkbook philanthropy
In terms of GRI indicators, which of the following is an economic performance indicator? A. Materials used by weight or volume. B. Total number of substantiated complaints. C. Number of jobs supported in the supply chain. D. Total value of financial and in-kind contributions to political parties.
C. Number of jobs supported in the supply chain.
Which of the following is an emerging form of philanthropy that uses market forces to achieve results? A. Checkbook philanthropy B. High impact philanthropy C. Philanthrocapitalism D. Microphilanthropy
C. Philanthrocapitalism
Which idea reflects the central purpose of ethics, which is to bind individuals into a cooperative social whole? A. Realism B. Utilitarianism C. Reciprocity D. Ethical relativism
C. Reciprocity
Which of the following sketches stakeholders in categories and depicts their relationship to the firm? A. Analysis map B. Stakeholder model C. Stakeholder map D. Concept map
C. Stakeholder map
Which ethical principle holds that a manager faced with a moral choice must act in a way that he/she believes is right and just for any person in a similar situation? A. The disclosure rule B. The Doctrine of the Mean C. The categorical imperative D. The Might-Equals-Right Ethic
C. The categorical imperative
Identify the principle that admonishes a manager to treat employees as ends in themselves and not to manipulate them simply as factors of production for the self-interested ends of the company. A. The disclosure rule B. The Doctrine of the Mean C. The practical imperative D. The organization ethic
C. The practical imperative
Which of the following rejects ethical perfection, taking the position that human affairs will be characterized by flawed behavior and ought to be depicted as they are, not as we might wish them to be? A. The legalist school B. The school of ethical relativism C. The realist school D. The school of ethical universalism
C. The realist school
Which ethical principle is grounded on the idea that every individual has protections and entitlements that need to be respected by others? A. The intuition ethic B. The organization ethic C. The rights ethic D. The disclosure rule
C. The rights ethic
In terms of GRI indicators, which of the following is an environmental performance indicator? A. Percentage of employees trained in the organization's anticorruption policies B. Voluntary donations to communities C. Net revenues D. Materials used by weight or volume
D. Materials used by weight or volume
Which of the following correctly outlines the corporate social responsibility spectrum reading from left to right? A. Free market conservatives, mainstream corporate managers, progressive civil societies, and radical Progressives. B. Radical Progressives, mainstream corporate managers, progressive civil societies, and free market conservatives. C. Free market conservatives, progressive civil societies, and radical Progressives. D. Radical Progressives, progressive civil societies, mainstream corporate managers, and free market conservatives.
D. Radical Progressives, progressive civil societies, mainstream corporate managers, and free market conservatives.
Which of the following refers to a basic approach, method, or plan for achieving an objective? A. Vision B. Initiative C. Mission D. Strategy
D. Strategy
In considering whether or not to do a certain action based on ethical reasoning, a manager asks herself: "If I act in this way, would my family approve of my actions?" Which of the following ethical principles is she applying? A. The ends-means ethic B. The intuition ethic C. The organization ethic D. The disclosure rule
D. The disclosure rule
All of the following statements were the interrelated themes of broader responsibility that emerged during the Progressive era EXCEPT: A. managers were trustees, whose corporate roles put them in positions of power. B. managers had an obligation to balance multiple interests. C. many managers subscribed to the service principle. D. managers concentrated more on promoting their self-interests.
D. managers concentrated more on promoting their self-interests.
Define deontological ethics.
Deontological ethics refers to the position that actions are right and wrong in themselves independently of any consequences.
Aristotle's idea that "virtue requires moderation" is an essential part of the:
Doctrine of the Mean
Who were corporate trustees?
During the Progressive era, interrelated themes of broader responsibility emerged. One of them was, managers who were trustees, that is, agents whose corporate roles put them in positions of power over the fate of not just stockholders, but also of others such as workers, customers, and communities. This power implied a duty to promote the welfare of each group.
Companies that join the ____, a voluntary initiative, must reduce emissions, energy use, and waste beyond legal requirements.
EcoManagement and Audit Scheme
The _____ divide projects into high, medium, and low social and environmental risk and compel borrowers to meet standards for ecological protection and to consult with native peoples.
Equator Principles
Identify the corporate culture level that encompasses formal statements of belief and intention.
Espoused values
Identify the theory that adopts the belief that different cultures may create different values and there is no universal standard by which to judge which values are superior.
Ethical relativism
A company's charitable contributions are not tax-deductible.
FALSE
A critical function of managers is to create strong competitive strategies that enable a company to meet its strategic objectives even if it means encouraging ethical compromise.
FALSE
A progressive business model is one in which the central strategy for creating value is based on meeting market demands.
FALSE
According to the Committee for Economic Development, the intermediate circle of societal expectations outlines the newly emerging responsibilities that business should assume to improve the social environment, even if they are not directly related to specific business processes.
FALSE
According to the doctrine of neo-Darwinism, charity interferes with the natural evolutionary process in which society sheds its less fit to make way for the better adapted.
FALSE
According to the theory of moral unity, there are two different standards for ethics: one for society in general and another one for business.
FALSE
Any large multinational corporation will follow only a single code.
FALSE
Aristotle argued that the end justified the means.
FALSE
At most companies CSR is still incidental, and rarely supplemental, to core business strategies.
FALSE
Cause-related marketing is a variant of strategic philanthropy in which charitable contributions are based on purchases of a service.
FALSE
Checkbook philanthropy is an active approach to philanthropy.
FALSE
Civil regulation has fully compensated for lack of binding global regulation.
FALSE
Compensatory justice requires inequitable compensation to victims.
FALSE
Corporate philanthropy is a large part of overall private philanthropy in the U.S. every year.
FALSE
Corporate social responsibility has a definite, universal meaning.
FALSE
Demographic factors explain a lot about what individual qualities are associated with ethical behavior.
FALSE
Different countries have the same ethical values.
FALSE
Ethical perfection is factual and real.
FALSE
Hard law refers to statements of philosophy, policy and principle found in nonbinding international conventions.
FALSE
In traditional philanthropy, foundations and corporations give grants to profitable organizations that then spend the money to meet stated goals.
FALSE
International law found in treaties, conventions, and trade agreements strongly address the social impacts of businesses.
FALSE
Kant's categorical imperative is an ethical guideline that allows a manager to be flexible and act depending on the situation.
FALSE
Logical positivism is a school of thought that rejects ethical perfection, taking the position that human affairs will be characterized by flawed behavior.
FALSE
Mandated actions go beyond those compelled by law or regulation.
FALSE
Most companies begin with an early founding impulse for truth, justice, and the stakeholder way.
FALSE
Most companies focus more on an ethics approach to prevent wrongdoing than on a compliance approach.
FALSE
One of the advantages of sustainability reporting is that the reports are comparable from company to company.
FALSE
The theory that the sole responsibility of a corporation is to optimize profits while obeying the law is known as:
Friedmanism
Define Friedmanism.
Friedmanism is the theory that the sole responsibility of a corporation is to optimize profits while obeying the law.
The international effort to develop uniform standards for company reports is called the:
GRI
"Do unto others as you would have them do unto you" is the basic tenet of the:
Golden Rule
The standard used by the International Organization for Standardization to determine the environmental impact of a product or service is the:.
ISO 14000
The International Organization for Standardization is developing the _____ which is intended to set forth underlying principles, core subjects, and methods for integrating social performance in the plans, systems, and processes of organizations.
ISO 2600
The standard used by the International Organization for Standardization to determine the quality of a product or service is the:
ISO 9000
Distinguish between the progressive business model and the traditional model as they relate to corporate responsibility.
In the universe of business models, there are two distinct types as they relate to corporate responsibility, the progressive model and the traditional model. A traditional business model is one in which the central strategy for creating value is based on meeting market demands while complying with the law. A progressive business model creates value by meeting market demands and, in the process, mitigating social problems or improving society in some way. The value proposition is based on actions that would be considered voluntary responsibilities in more traditional companies. Progressive business models are rare, the basis of only a few companies.
The idea that "the ends justify the means" was a basic tenet of:
Machiavelli
The tendency of an individual to use self-centered, immoral, manipulative behavior in a group is known as:
Machiavellianism
_____ actions are initiatives required either by government regulation or civil regulation.
Mandated
What is the evolutionary basis of ethics?
Natural selection
What is philanthrocapitalism?
Now, a model of philanthropy is emerging based largely, but not entirely, on the philosophies and examples of new billionaires from technology industries. In distinctive ways, new philanthropists, either themselves or through their companies, apply the business methods that made them rich to the field of philanthropy, blurring the line between charity and business, seeking to harness market forces. This new philanthropy, or philanthrocapitalism as it is often called, covers a range of actors and approaches but it is bold, entrepreneurial, results-oriented, closely engaged, and impatient.
Which of the following are awarded to deter similar actions and punish a corporation that has exhibited malicious and willful misconduct?
Punitive damages
According to ____, corporate social responsibility is an insufficient doctrine that substitutes poorly for tougher laws and regulations, allowing corporations to form a smoke screen of virtue behind which their "inviolable core" of profit seeking behavior is untouched.
Radical Progressives
Define the service principle.
Service principle was a near-spiritual belief that individual managers served society by making each business successful and if they all prospered, the aggregate effect would eradicate social injustice, poverty, and other ills.
According to ____, rich people and dominant companies are morally superior.
Social Darwinism
_____ was a philosophy of the late 1800s and early 1900s that used evolution to explain the dynamics of human society and institutions.
Social Darwinism
Define social Darwinism in the context of corporate social responsibility.
Social Darwinism is a philosophy of the late 1800s and early 1900s that used evolution to explain the dynamics of human society and institutions. The idea of "survival of the fittest" in the social realm implied that rich people and dominant companies were morally superior. According to this philosophy, charity interfered with the natural evolutionary process in which society shed its less fit to make way for the better adapted.
_____ is the documentation and disclosure of how closely corporate operations conform to the goal of sustainable development.
Sustainability reporting
Which principle states that a manager will act ethically if the good effects outweigh the evil?
The principle of double effect
Explain what is meant by the principle of equal freedom in ethical decision-making.
The principle of equal freedom states that a person has the right to freedom of action unless such action deprives another person of a proper freedom.
What is meant by the rights ethic in ethical decision-making?
The rights ethic states that each person has protections and entitlements that others have a duty to respect.
Which ethical theory postulates that people must act for the common good of the society in which they live?
The theory of justice
Discuss the three elements of social responsibility.
The three elements of social responsibility are market actions, externally mandated actions, and voluntary actions. Market actions are responses to competitive forces in markets. Such actions have always dominated and this will continue. When a corporation responds to markets, it fulfills its first and most important social responsibility. All else pales before its economic impact. Mandated actions are those required either by government regulation or civil regulation. Government, or public, regulation is rooted in the authority of the state and its mandates are enforceable by law. Government mandates have multiplied rapidly in developed countries over the last 75 years. Civil regulation is regulation by nonstate actors based on social norms or standards enforced by social or market sanctions. Civil regulation has many faces. It is imposed when activists, consumers, investors, lenders, shareholders, or employees make demands on a company and failure to comply will lead to reputational or financial damage. Such mandates are enforced by the power of the market, not the power of law. Mandates based on civil regulation are now expanding rapidly in the global economy. The third element is voluntary actions that go beyond those compelled by law or regulation. Some voluntary actions can be called "legal plus" because they exceed required mandates. Other actions are unrelated to mandates, but respond to public consensus. Still other actions may be strategic initiatives where the firm seeks to profit from solving a social problem.
In making a decision using this principle, one must determine whether the harm in an action is outweighed by the good.
The utilitarian ethic
This ethical principle requires the manager to calculate which course of action, among alternatives, will result in the greatest benefit for the company and all workers.
The utilitarian ethic
Brain research into neural sensitivity affirms this ethic if it is defined as moral intuition enlightened by experience and ethical education.
The virtue ethic
This is the state in which company social policies, processes, and actions are visible to external observers.
Transparency
The purpose of this concept is to appraise the overall impact of a firm's operations by adding nonfinancial measures to traditional financial results.
Triple bottom line
Explain what is meant by the "triple bottom line" in GRI reporting.
Triple bottom line is an accounting of a firm's financial, social and economic performance.
The statement of how a business will create value by selling something in the marketplace is called:
a business model
Tasks like revising or creating policies, budgeting resources, and assigning work are a part of the:
action plan
The idea that business should be conducted without considering ethical standards or societal ideals is known as the theory of:
amorality
Kinds of decisions made form a part of:
artifacts
As a first step in implementing corporate social responsibility, a corporation should:
assess its current situation and activities.
Verification by audit that information in a corporate sustainability report is correct is known as:
assurance
When employees at Dow Chemical Company face an ethical decision they are told to ask: "What feels right or wrong about the situation or action?" This is an application of the:
intuition ethic.
A traditional business model:
is one in which the central strategy for creating value is based on meeting market demands while complying with the law.
Advocates of social responsibility feel that:
it is an ethical duty of corporations to promote social justice.
The two elements that determine the CSR orientation of a firm are its business model and its:
leadership.
A/an _____ is a model of the methods an organization can use to achieve certain goals.
management standard
According to Howard R. Bowen:
mangers have an ethical duty to consider the broad social impact of their decisions.
The three elements of social responsibility are:
market actions, externally mandated actions, and voluntary actions
Friedrich Nietzsche's idea that great men made their own ethical rules without respect for the general good was called:
master morality
A manager makes ethical decisions based on what he feels he can get away with given his power in the organization's hierarchy. He is using the principle of the:
might-equals-right ethic
The basic purpose of a company that defines the type of business in which the company is engaged in and explains how it differs from its competitors is called a:
mission statement.
When Hershey Foods states that its purpose is "to consistently create shareholder value by achieving excellence in every aspect of our business," this is called its:
mission statement.
According to the U.S. Sentencing Commission's Guidelines Manual, if criminal conduct occurs:
modify the program to prevent repeat offenses
A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment is called a:
monitor
According to Thomas Donaldson and Thomas W. Dunfee, the idea that "inconsistent norms" are acceptable as long as they do not violate any hypernorms is called:
moral free space
The idea that only one set of ethical standards exists for business and for society is known as the theory of:
moral unity
The theory that business actions are judged by the general ethical standards of society and not by a special set of more permissive standards is the theory of:
moral unity
A(n) _____ is a standard that arises over time and as agreement on it becomes widespread, is enforced by social sanction or law.
norm
When managers are convicted of a crime, their prison sentences are based on a(n):
numerical point system
When a manager acts toward a customer in a favorable way in the hope that the customer will return for future purchases, this is an example of:
reciprocity
According to brain research, the effectiveness of the disclosure rule is shown to rest on emotions such as:
remorse
An ethical principle that requires punishment to be evenhanded and proportionate to transgressions is:
retributive justice
The idea that a bank cashier should not be fired for stealing $100 if a bank officer is allowed to keep his job after embezzling $1,000 is consistent with the ethical principle of:
retributive justice
A manager may comply with both the practical imperative and the Golden Rule by asking if she would change places with the person affected by the contemplated action. This is known as the:
reversibility test
When a manager is trying to decide how to treat a subordinate, he asks himself: "If I treat this person in this way, would I want to switch places with this subordinate and have my supervisor treat me in this way?" In this scenario, he is applying the:
reversibility test
The near-spiritual belief that individual managers served society by making each business successful is called the:
service principle.
According to Michael Porter and Mark Kramer, an "essential test" for the worthiness of any additional social initiative is to determine whether it presents an opportunity to create _____ that is, a meaningful benefit for society that is also valuable to the business.
shared value
According to Friedrich Nietzsche, the mass of ordinary people developed a(n) _____ intended to shackle the great men.
slave morality
When a company assesses its social impact on society, it has performed a(n):
social audit.
Evidence suggests that the sensitivity of neural pathways is based on learning and:
social experience
Formulas for CEO compensation are almost universally focused on attaining:
specific financial goals.
When a corporation aligns its charitable strategy with its business strategy, it is known as:
strategic philanthropy
At most companies CSR is still ___, and largely ___, to core business strategies.
supplemental; incidental
The practice of a corporation publishing information about its economic, social, and environmental performance is known as:
sustainability reporting.
The unspoken, unwritten beliefs about the nature of the company and what behaviors bring success are called:
tacit underlying values
In considering whether or not to do a certain action that involves ethical reasoning, a manager asks himself: "If I act in this way, do I want to read about my actions in 'The New York Times' tomorrow morning?" In this scenario, he is applying:
the disclosure rule
In terms of a company's social reports, the opposite of _____ is:
transparency; opacity
The standard that uses economic, environmental, and social performance indicators that are based on GRI standards is called the:
triple bottom line