managment test chapter 4,5,

Identify a true statement about the relationship between social responsibility and economic performance of companies.

There is no guarantee that sociall responsible companies will be profitable

says that a person should never take any action that infringes on causing harm or doing bad things.

principle of utlitarian benefits

When Joe says that it's important for Theo Chocolate to "create lasting change" in people's lives and the environment, he is making a statement about the ethics of his company. This statement suggests that Joe's decisions are ethically intense because of:

magnitude of consequences

is the total harm or benefit derived from an ethical decision. There are larger consequences when more people are harmed or the harm is greater.

magnitude of consequences

Those in favor of the shareholder model say that the only social responsibility that organizations have is to:

maximize profits

can estimate job applicants' honesty by asking them directly what they think or feel about theft or about punishment of unethical behaviors.

overt integrity tests

indirectly estimate job applicants' honesty by measuring psychological traits such as dependability and conscientiousness.

personality based integrity tests

people use internalized ethical principles to solve ethical dilemmas. In Stage 5, a person is aware that while rules and laws exist to protect the good of the greatest number of people, there are times when the rule or law works against the good of particular people. In Stage 6, a person has developed their own set of moral guidelines.

post conventional level of moral development

people decide based on selfish reasons. In Stage 1, the individual obeys to avoid being punished. In Stage 2, a person recognizes that there is not one "right" view dictated by someone in authority.

pre conventional level of moral development

In the context of principles of ethical decision making, the _______ states that the law represents the minimal moral standards of society, so one should never take any action that violates the law.

principle of government require==

says that a person should never take any action that infringes on others' agreed-upon rights.

principle of individual rights

will anticipate responsibility for a problem before it occurs, do more than expected to address the problem, and lead the industry in its approach.

proactive strategy

In the context of ethical intensity of decisions, _______ refers to the chance that something will happen that results in harm to others.

probability of effect9

is agreement on whether the behavior is good or bad

social consensus

According to the _______, management's most important responsibility is the firm's long-term survival.

stakeholder model

is the time between an act and the consequences the act produces. It is stronger if the action has to take place next week versus in a few months.

temporal immediacy

In the carrot-and-stick approach used by the law to determine punishment for unethical behavior, the stick signifies:, the carrot refers to

the reduced fine for having an effective compliance program

In the carrot-and-stick approach used by the law to determine punishment for unethical behavior, the stick signifies:

the threat of heavy fines based on the level of offense.

Which of the following are considered primary stakeholders of an organization?

local communities

says that a person should never take any action that is not kind and that does not build a sense of community.

principle of religious injunctions

In determining the punishment, the first step is

to compute the base fine by determining what level of offense has occurred

Which of the following are considered secondary stakeholders of an organization?

trade associates

In order to create an ethical company culture, the first objective of ethics training is to:

develop employees awareness of ethics

codes of ethics are effective if which of the following are true

Management develops practical ethical standards and procedures specific to the company's line of business. The code of ethics is communicated to employees.

Joe and Debra are deeply interested in the well-being of the cocoa farmers they buy from. They make sure that they follow fair trade standards when buying cocoa, and they hold their own manufacturing units to the same standards they hold their suppliers to. In doing this, Theo Chocolates is assuming what degree of social responsibility?

Proctive stance

is the social, psychological, cultural, or physical distance of a decision maker from those affected by his or her decisions. It is greater when the decision impacts employees the manager knows versus employees he does not know.

Proximity of effect=

As VP of sales and marketing, Debra is very interested in the likely impact of corporate social responsibility (CSR) on Theo Chocolates. She asks you for your opinion. What do you tell her? Check all that apply.

The costs of social responsibility can be offset by gaining a better corporate reputation. There is no guarantee that socially responsible businesses will be profitable. Studies have shown that there is a small, positive relationship between being socially responsible and economic performance.

Which of the following statements is true of social responsibility and economic performance?

There is no trade-off between being socially responsible and economic performance.

The most basic level of social responsibility requires that a company

be profitable

is the degree of concern people have about an ethical issue. Issues that have high ethical intensity cause managers to be more aware of the impact their decision will have on others. Several factors must be considered when determining the ethical intensity of an action:

ethical intensity

In the context of ethical intensity of decisions, _______ refers to how much an act affects the average person.

concentration of effect

people make decisions that conform to societal expectations. In Stage 3, people are good in order to be seen as being good by others. In Stage 4, people are aware of society's expectations and obey rules in order to avoid guilt and uphold the law.

conventional morality level

is a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations.

defensive strategy

Companies that are ethically responsible have already met ______ responsibilities.

economic and legal

The first step in a compliance program under the U.S. Sentencing Commission Guidelines for Organizations is to:

establish standards and procedures

Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds its suppliers. This type of behavior encourages more ethical decision-making by _______________ sends a powerful message to employees and customers.

establishing a specific code of ethics