Man3025 final

12. Abercrombie and Fitch uses overt sexuality to sell clothes to teenagers. Many people object to this advertising. This is an example of an ethical dilemma involving the relationship of the a. employee to the firm. b. firm to the employee. c. firm to the environment. d. firm to competitors. e. employee to the environment.

C

16. All of the following are key dimensions to the organizational context of management ethics EXCEPT a. an individual's personal ethics. b. organization culture. c. the technology used. d. the organizational environment. e. the treatment of employees by the organization.

C

3. 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

32. 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 affecting? a. General social welfare b. The natural environment c. Organizational stakeholders d. The external political-legal environment e. The external cultural environment

C

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

26. Traditionally, experts have suggested a three-step model for applying ethical judgments to situations that may arise during the course of business activities. The first step is to a. gather the relevant factual information. b. appoint an ombudsman. c. locate a mediator. d. determine what is lacking in the organization culture. e. determine the most appropriate moral values.

A

36. 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

38. Siemens partners with the College Board to evaluate entries in the Siemens Competition, the $100,000 scholarship competition that judges project entries from high school students doing research in math, science, and technology. Siemens pays for everything. The College Board selects the winner. The partnership negates the argument against social responsibility that says a. based on their legal status, organizations are technically prohibited from such activities. b. such activity detracts from the basic mission society has given business. c. social responsibility programs have the potential to create substantial conflicts of interest. d. business executives lack the expertise to make decisions about social programs. e. there is too much potential for the abuse of the power that corporations have already without adding to it.

A

41. Which of the following is NOT one of the arguments offered by those who oppose corporations habitually engaging in social responsibility programs? a. Based on their legal status, organizations are technically prohibited from such activities. b. Such activity detracts from the basic mission society has given business. c. Social responsibility programs have the potential to create substantial conflicts of interest. d. Business executives lack the expertise to make decisions about social programs. e. There is too much potential for the abuse of the power that corporations have already without adding to it.

A

42. The Internet and e-commerce affects the natural environment by a. reducing energy costs and pollution. b. sending electronic pulses into the air. c. increasing package delivery and increasing pollution. d. depleting ozone. e. decreasing charitable contributions.

A

5. Under U.S. law, it is illegal for a U.S. firm operating in a foreign country to pay bribes to get what it needs. Natives of some of those same countries consider the payment of bribes to be perfectly acceptable. Which of the following influences may account for this difference? a. Cultural differences b. Economic influences c. Religious influences d. Educational systems e. All of these choices

A

58. Politicians caught in extramarital affairs usually deny wrong doing until there is physical evidence to contradict the politician's claims. This is an example of the ____ approach to responsibility. a. defensive b. accommodative c. proactive d. reactive e. participative

A

61. The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular healthcare maintenance instead of only when they are sick. Wrigley is taking a(n) ____ approach to social responsibility. a. proactive b. offensive c. defensive d. participative e. accommodative

A

65. 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

75. Enron used special purpose entities to move debt off its books. SPEs are legal, but the hiding of important financial information was misleading and fraudulent. Enron failed ____. a. legal compliance. b. ethical compliance. c. evaluative compliance. d. philanthropic giving. e. rational compliance.

A

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

A

84. 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

10. 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

11. All of the following issues stem from how employees treat the organization EXCEPT a. conflicts of interest. b. wages and working conditions. c. secrecy and confidentiality. d. employee honesty. e. misappropriation of organizational resources.

B

2. The definition of ethics includes all of the following terms EXCEPT a. morals. b. legal and illegal. c. right and wrong. d. standards. e. good and bad.

B

21. 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

23. Bernard Madoff defrauded clients out of millions of dollars. The probability that the employees of Madoff's have high ethical behavior is minimal due to a. a national culture that values ethical behavior. b. its top management fostering an inappropriate culture. c. a legal environment that prohibits unethical practices. d. an economic environment conducive to ethical practices. e. its low-pressure competitive environment.

B

28. 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

29. ____ justice refers to people's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization. a. Organizational b. Distributive c. Procedural d. Interpersonal e. Informational

B

35. Many builders are using fiber-cement siding to build houses. This siding is best painted with a soy-based, environmentally friendly paint. Most paint is not biodegradable because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with the soy-based paint would be 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

B

37. 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

44. 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. reactive b. obstructionist c. proactive d. defensive e. obstructionist

B

64. The Environmental Protection Agency is the agency charged with enforcement of many of the environmental laws in the United States. This agency represents a form of a. indirect regulation. b. direct regulation. c. legislative mandate. d. government coercion. e. legislative intervention.

B

69. 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

7. Which of the following is NOT an example of a situation in which a manager is likely to be called on to make an ethical decision regarding the relationship of the firm to the employee? a. Hiring and firing b. Customer relations c. Working conditions d. Garnishment of wages e. Drinking or drug problem

B

72. The purpose of a political action committee (PAC) is to a. lobby on behalf of trade associations. b. circumvent laws regarding donations by businesses to election campaigns. c. provide opportunities for personal contacts with legislators. d. ensure that businesses do not attempt to bribe officials. e. prevent businesses from getting excessive tax breaks.

B

76. ____ is the extent to which an organization and its members follow basic ethical and legal standards of behavior. a. Legal compliance b. Ethical compliance c. Evaluative compliance d. Philanthropic giving e. Rational compliance

B

77. 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 particular statute e. Making human resource managers responsible for complying with EEOC standards

B

78. Which of the following is NOT an example of an informal approach to social responsibility? a. Whistle-blowing procedures b. Ethical compliance c. Leadership practices d. The organization culture e. Treatment of whistleblowers

B

8. 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

83. Which of the following actions is NOT part of an organization's attempts to evaluate social performance? a. Corporate social audits b. Whistle-blowing by employees c. Requiring employees to sign agreements to abide by its code of ethics d. Reviewing its responses to questionable conduct e. Examining the impact that the corporate culture has on the firm's social performance

B

9. Americans work more hours than their counterparts in other industrial nations. A new trend is taking vacation time to catch up at work. This is an example of how a. employees treat the environment. b. employees treat the firm. c. firms treat the employees. d. firms treat other economic agents.

B

33. 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 task environment e. The internal cultural environment

C

39. Which of the following statements is NOT one of the arguments offered in favor of social responsibility? 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

40. 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 these choices

C

45. All of the following are basic approaches to social responsibility EXCEPT a. accommodative stance. b. defensive stance. c. reactive stance. d. proactive stance. e. obstructionist stance.

C

50. When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. When they sell at Wal-Mart the company eventually donates to their troop. Target does not allow any Girl Scout to sell cookies in front of stores. Wal-Mart is an example of the ____ stance. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

C

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

C

57. A firm is taking a(n) ____ stance when it actively looks for ways to benefit society as well as meeting its obligations and responding to requests. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

C

59. 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

60. Apple Computer donates almost $10 million annually in computer equipment and advice to U.S. schools. This is an example of the ____ approach to social responsibility. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

C

67. Laws that deal with how agrichemical companies dispose of hazardous wastes are examples of a. consumer protection regulation. b. fair labor practice. c. environmental protection regulation. d. safety and health regulation. e. legislative intervention.

C

71. Which of the following is NOT one of the means by which businesses typically attempt to influence government? a. Favors b. Lobbying c. Direct contributions to election campaigns d. Political action committees e. Personal contacts

C

74. 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

81. ____ is considered an informal activity for managing social responsibility. a. Philanthropic giving b. Legal compliance c. Organization culture d. Ethical compliance e. Social compliance

C

82. 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

15. According to the concept of managerial ethics, which of the following is NOT considered an economic agent? a. Competitors b. Suppliers c. Unions d. Regulatory agencies e. Owners/stockholders

D

20. 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

30. ____ justice relates to the degree of fairness people see in how they are treated by others in their organization. a. Organizational b. Distributive c. Procedural d. Interpersonal e. Informational

D

34. Boards of directors are responsible for which area of emerging ethical issues? a. Ethical leaders b. Ethics issues in information technology c. Ethics issues in privacy d. Corporate governance e. None of these choices

D

4. At work Michael Vanairs made disparaging remarks about women having easier training standards than men. He was confronted about his statements, so he downgraded his evaluation of the confronter to punish her and force her to either resign or be fired. His actions were a. legal and ethical. b. justified. c. legal but unethical. d. illegal and unethical. e. illegal but ethical.

D

51. 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

53. When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. When they sell at Wal-Mart the company eventually donates to their troop. Target does not allow any Girl Scout to sell cookies in front of stores. Shop Rite is an example of the ____ stance. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

D

54. The Siemens Foundation uses money to support and promote the importance of math, science, and technology education. It is taking a(n) ____ approach to social responsibility. a. obstructionist b. defensive c. accommodative d. proactive e. reactive

D

55. The firm using a(n) ____ approach to social responsibility meets its obligations and is also willing to respond to appropriate societal requests. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

D

6. The day before Ford began negotiations with the United Auto Workers (UAW), it announced a 10 percent 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

62. 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

68. The ____ is not a government regulatory agency. a. Securities and Exchange Commission b. Federal Aviation Administration c. Federal Communications Commission d. American Civil Liberties Union e. Environmental Protection Agency

D

70. 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

85. ____ is a thorough, formal analysis of the effectiveness of a firm's response to social responsibility. a. An ethics review b. A legal compliance assessment c. A corporate conduct review d. A corporate social audit e. Whistle-blowing

D

1. Someone's ethical standards are developed as a child in response to his or her a. parents' and other adults' behavior. b. peers. c. religious beliefs. d. Both parents' and other adults' behavior and peers e. All of these are correct

E

13. 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 these choices

E

14. The primary economic agents of interest for an organization include a. customers. b. competitors. c. supplies. d. dealers. e. All of these choices

E

17. Imagine that you are a manufacturer of athletic shoes. Within the organizational context, which of the following ethical behaviors can occur? a. Government officials inspect employee working conditions. b. Regulatory agents monitor the company's adherence to ADA regulations. c. Competitor promotes a low-cost, well-made golfing shoe. d. Each employee follows his or her own personal code of ethics. e. All of these choices

E

18. Which of the following is NOT a way in which the organizational context contributes to the use of unethical practices? a. A manager becomes aware of an unethical practice, but allows it to continue. b. Unethical activity is encouraged as long as it is in the best interests of the firm. c. Rewards are provided to those who succeed at the cost of others. d. An employee is promoted for finding a way around a legal regulation designed to protect the environment. e. A manager decides to hire a relative to a position for which the relative is qualified.

E

19. Which of the following is part of the organizational context in which ethical/unethical behaviors occur? a. Organizational practices b. The regulatory environment c. The competitive environment d. Personal ethical standards e. All of these choices

E

22. The success of any culture to promote ethical behavior in a society depends on a. a national culture that values ethical behavior. b. top officials fostering an appropriate culture. c. a legal environment that prohibits unethical practices. d. an economic environment conducive to ethical practices. e. all of these choices.

E

25. Any effort to enhance an organization's ethical behavior must begin with a. the appointment of an ombudsman. b. a review of the internal environment. c. the development of a formalized code of ethics. d. a modification of the ethical codes of employees who interact with stakeholders. e. the support of top management.

E

27. Joshua is aware that his peers take office supplies home for personal use. To determine if behavior is ethical Joshua should determine a. whether the act optimizes what is best for everyone. b. whether the behavior respects the rights of the individuals involved. c. whether the behavior is consistent with what he sees as being fair. d. whether the behavior is consistent with people's responsibilities to each other. e. All of these choices

E

31. 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

43. 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

46. When Girl Scouts sell cookies at Shop Rite, they are given a place to stand. When they sell at Wal-Mart the company eventually donates to their troop. Target does not allow any Girl Scout to sell cookies in front of stores. Target is an example of the ____ stance. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

E

47. Managers 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

48. Genzyme is a pharmaceutical company that manufactures Cerdase, a drug that treats a genetic illness called Gaucher's disease, 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 about the various approaches to social responsibility, you might assume that Genzyme takes a(n) ____ stance. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

E

49. Auto manufacturers are required to attain a certain average fuel-efficiency level for all the cars they sell. They try to attain the mandated levels, but they also try to get deadline extensions. The auto makers' approach to social responsibility is a(n) ____ stance. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

E

52. Companies that meet their economic and legal responsibilities but do not go beyond them are exhibiting a(n) ____ approach to social responsibility. a. reactive b. obstructionist c. proactive d. accommodative e. defensive

E

63. Which of the following is a basic area of government regulation of business? a. Consumer protection b. Safety and health of employees c. Safety and health of consumers d. Environmental protection e. All of these choices

E

66. When the SEC brought charges against Bernard Madoff and his CFO, it was exercising its power of a. political favors. b. legislative intervention. c. indirect regulation. d. lobbying. e. direct regulation.

E

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

E

80. 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. Kopchinski used whistle-blowing, a(n) ____, to bring attention to the problem. a. formal organizational dimension b. defensive stance toward social responsibility c. protective stance toward social responsibility d. reactive approach to social responsibility e. informal organizational dimension

E