MGMT 3020 Study Guide
True or False: Due to diverse employee groups and management styles, the work culture of a large global firm in one country will differ significantly from the work culture of the same firm halfway around the world.
False
True or False: Ethical decision making in business is limited to major corporate decisions with dramatic social consequences.
False
True or False: Ethical decisions cannot be made on economic grounds.
False
True or False: Ethics attempts to answer the question of how we should live, but it does not give reasons to support its answers.
False
True or False: In a general sense, a business stakeholder is one who has made substantial financial investments in the business.
False
True or False: In business, every decision can be covered by economic, legal, or company rules and regulations.
False
True or False: In civil law, there is no room for ambiguity in applying the law because much of the law is established by past precedent.
False
True or False: Inattentional blindness is the inability to recognize ethical issues.
False
True or False: Normative myopia occurs only in business.
False
True or False: Stakeholder theory states that a firm should be managed for the sole benefit of stockholders.
False
True or False: The concept of a human or moral right is central to the utilitarian ethical tradition.
False
True or False: The first step in making decisions that are ethically responsible is to consider all of the people affected by a decision, the people often called stakeholders.
False
True or False: The rights of employees to minimum wage, equal opportunity, and to bargain collectively as part of a union are examples of their rights grounded in moral entitlements.
False
True or False: Values are the only guidance individuals need to act in ways that are positive or ethical.
False
True or False: Whistle-blowing to external groups is usually preferred over internal mechanisms for reporting wrongdoing.
False
________ rights protect individuals from being treated in ways that would violate their dignity and that would treat them as mere objects or means.
Human
In an ethical decision-making process, creativity in identifying options is called "________."
Moral Imagination
We tend to give in to ________ in our professional environments, both because we want to "fit in" and to achieve success in our organizations, and also because our actual thinking is influenced by our peers.
Peer Pressure
Defining the specific culture within an organization is not an easy task since it is partially based on each participant's ________ of the culture.
Perception
Chapter 3
Philosophical Ethics and Business
According to the economic model of corporate social responsibility (CSR), ________ is a direct measure of how well a business firm is meeting society's expectations.
Profit
Chapter 4
The Corporate Culture - Impact and Implications
An ethics of ________ shifts the focus from questions about what a person should do, to a focus on who that person is. A. virtue B. stoicism C. principle D. intuition
A
Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the ________. A. rights-based ethical framework B. classical tradition C. stockholder theory D. financial framework
A
Ethics refers to the applications of ________ on which people's decisions are based. A. morals B. values C. norms D. etiquette
A
If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as ________. A. inattentional blindness B. descriptive ignorance C. change blindness D. normative myopia
A
Which of the following is the pursuit of the highest standard for what we should believe? A. Notional reason B. Practical reason C. Emotional reason D. Theoretical reason
D
True or False: A critical element of comparing and weighing the alternatives is the consideration of ways to mitigate, minimize, or compensate for any possible harmful consequences.
True
True or False: Ethics refers to how human beings should properly live their lives.
True
True or False: Lack of any generally accepted fundamental values for the organization is a clear sign of a "toxic" culture.
True
True or False: Legislators created a form of business called corporations to encourage people to engage in business activities.
True
True or False: No culture, in business or elsewhere, is static.
True
True or False: One of the major challenges to an ethics based on rights points to practical problems in applying a theory of rights to real-life situations.
True
True or False: Responsibility for the circumstances that can encourage ethical behavior and can discourage unethical behavior falls predominantly to the business management and executive team.
True
True or False: Societies that value individual freedom legally stipulate codes of personal integrity and common decency to safeguard this freedom.
True
True or False: The philanthropic perspective of the economic model holds that business has no strict obligation to contribute to social causes.
True
________ is commonly identified with the principle of "maximize the overall good" or, in a slightly different version, of producing "the greatest good for the greatest number."
Utilitarianism
The ________ tradition reminds us that we are as likely to act out of habit and based on character as we are to act after careful deliberations.
Virtue Ethics
Social sciences such as psychology and sociology are different from ethics owing to the fact that they are ________. A. descriptive in nature B. clinical in nature C. conjectural in nature D. normative in nature
A
The ________ of corporate social responsibility (CSR) holds that just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no strict ethical responsibility to serve wider social goods. A. philanthropic model B. legal model C. ethical model D. integrative model
A
The practice of attending to the "image" of a firm is sometimes referred to as: A. reputation management B. branding C. gentrification D. crisis management
A
The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of ________. A. virtue ethics B. principle-based ethics C. utilitarianism D. Kantian tradition
A
Utilitarianism determines ethical and unethical acts by their ________. A. consequences B. nuances C. legality D. fairness
A
Which of the following is a value that will impact the culture of an organization in the absence of any other established values? A. at any cost B. Ethical behavior C. Customer satisfaction D. Legal compliance
A
Which of the following is an essential element in establishing an ethical leadership? A. The end or objective toward which the leader leads B. The prevailing culture in the external environment C. The personality traits of the team members D. The ethical nature of the team members
A
Which of the following is the most demanding social responsibility? A. A business should not sell a product that causes harm to consumers. B. A business should engage in charitable work for the development of the society. C. A business should volunteer for society or environment-friendly work. D. A business should prevent harm even in those cases where it is not the cause.
A
Which of the following is true about values? A. Values are underlying beliefs that cause us to act or to decide in a certain way. B. Values cannot lead to unethical results. C. Corporate scandals prove the fact that individuals have personal values, but institutions lack values. D. Values are the highest standards of appropriate and proper behavior.
A
Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility? A. Philanthropy done for reputational reasons and financial ends is ethically responsible. B. Philanthropy is considered a social contribution rather than an investment. C. Philanthropy done for solely financial benefits is not truly an act of social responsibility. D. Philanthropy done for reputational reasons is not fully ethical.
A
Which of the following versions of corporate social responsibility (CSR) suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment? A. Sustainability B. Stakeholder C. Social entrepreneurship D. Philanthropic
A
________ is generally referred to as the responsibilities that a business has to the society in which it operates. A. Corporate Social Responsibility B. Duty C. Social Contract
A
The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referred to as: A. organizational ethical responsibility. B. decision making for social responsibility. C. institutional morality. D. corporate cultural responsibility.
B
Corporate social responsibility (CSR) refers to the: A. accountability that a manager has to his subordinates. B. ethical expectation that society has for business. C. actions that maximize the profit of an organization. D. dedication that businesses show in expanding their market share.
B
Dramatic examples of tyrannical regimes in history demonstrate that: A. just societies can only be achieved through strict enforcement of ethical codes. B. one's ethical responsibility may run counter to the law. C. obedience to the law almost always makes people apathetic towards their ethical duties. D. societies valuing freedom welcome laws that require more than the ethical minimum.
B
Focusing failures result in moments where we ask ourselves, "How could I have missed that?" According to Bazerman and Chugh, this phenomenon is known as: A. normative myopia. B. inattentional blindness. C. descriptive ignorance. D,. change blindness.
B
Identify a true statement about corporate cultures. A. Corporate cultures are static in nature. B. Corporate cultures influence, limit, and shape the decision making within a firm. C. Corporate cultures remain unaffected even in the presence of strong business leaders. D. Corporate cultures in a global firm differ significantly across different countries.
B
Identify a true statement about the integrative model of corporate social responsibility (CSR). A. It argues that every business should adopt the principles of benefit corporations and devote all their activities to service of social goals. B. It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model. C. It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged. D. It recognizes that some stakeholders have different power and impact on decisions than others.
B
Identify the final step in the ethical decision-making process? A,.Corresponding with the stakeholders B. Monitoring and learning from outcomes C. Identifying new ethical dilemmas to tackle D. Listing out the eventualities that may result from the decision
B
Individual codes of conduct based on one's value structures regarding how one should live, how one should act, what one should do, and what kind of a person should one be is sometimes referred to as ________. A.leadership B. morality C. independence D. rationality
B
Which of the following is the second step of the ethical decision-making process? A. Considering the impact of the on stakeholders B. Considering available alternatives C. Making the decision D. Identifying the ethical issues involved
D
Which of the following is the reason why normative myopia is especially liable to occur in a business context? A. Ethics can justifiably be allowed to take a backseat in a business context. B. People are more likely to focus on the technical aspects of the task at hand in a business context, and thus, fail to recognize the ethical aspect. C. The fast paced world of business allows little time for contemplation on ethics. D. Business attracts people from diverse backgrounds, which makes it difficult to identify ethical standards agreeable to everybody.
B
Which of the following statements is true about the stakeholder theory? A. It argues that the narrow economic model successfully provides an accurate descriptive and a reasonable normative account of business management. B. It begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others. C. It suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment. D. It holds that business firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.
B
________ are fundamental to theories of social justice upon which capitalist economies have been built. A. Fraternity and autocracy B. Liberty and equality C. Consideration and kindness D. Kinship and cooperation
B
The defenders of the sustainability approach toward corporate social responsibility (CSR) point out that ________. A. people have a strong ethical duty to cause no harm, and only a prima facie duty to prevent harm B. businesses' sole social responsibility is to fulfill the economic functions they were designed to serve C. all economic activity exists within a biosphere that supports all life D. the success of a business must be judged only against profitability
C
Free market economics is grounded in the ________. legal framework of ethics A. principle-based B. framework of ethics C. utilitarian framework of ethics D. rights-based framework of ethics
C
Identify a true statement about ethical decision making in business: A. Ethical decision making should not rely on the personal values and principles of the individuals involved. B. Employees only have to deal with situations that call for ethical decision making once they reach managerial positions within organizations. C. At some point, every worker will be faced with an issue that will require ethical decision making. D. Companies are legally obligated to cover all ethical decisions by internal rules and regulations.
C
Identify a true statement about ethical decision making in business: A. Ethical decisions that employees make have to always be based upon clearly established guidelines laid down by the board of directors. B. Every instance of ethical decision making should be based on the law of the land. C. Ethical decision making is not limited to major corporate decisions with dramatic social consequences. D. All ethical decisions can be covered by economic, legal, or company rules and regulations.
C
Identify the view which holds that people act only out of a self-interest. A. Altruism B. Libertarianism C. Egoism D. Utilitarianism
C
In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical. A. Identifying and considering impact of decision on stakeholders B. Determining the facts C. Considering the available alternatives D. Identifying the ethical issues
C
Missing a highway turn-off as a result of speaking on a cell phone while driving is an example of ________. A. rational ignorance B. change blindness C. inattentional blindness D. normative myopia
C
The ________ tradition claims that our fundamental human rights, and the duties that follow from them, are derived from our nature as free and rational beings. A. utilitarian B. role-based C. Kantian D. virtue-based
C
The form of business that limits the liability of individuals for the risks involved in business activities is known as ________. A. partnership B. sole proprietorship C. corporation D. joint proprietorship
C
What is the difference between virtue ethics and principle-based ethics? A. Virtue ethics is based on the consequences of actions, whereas principle-based ethics is based on character traits. B. Virtue ethics is based on set of rules, whereas principle-based ethics is based on consequences of actions. C. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules. D. Virtue ethics is based on producing the greater good, whereas principle-based ethics is based on self-interest.
C
Which of the following considerations can sometimes override consequences when comparing and weighing alternatives for ethical decision making? A. Apprehensions B. Ideas C. Principles D. Assumptions
C
Which of the following is a true statement about norms? A. They are underlying beliefs that cause people to choose one way or another. B. They consist of guidelines for bringing about positive behavioral change. C. They are standards of appropriate and proper behavior. D. They provide benchmarks of desirable societal conditions.
C
Which of the following is an approach advocated while teaching ethics? A. Teachers should understand that their role is only to tell the right answers to their students. B. Teachers should teach ethical dogma to a passive audience. C. Teachers should challenge students to think for themselves. D. Teachers should consider acceptance of customary norms as an adequate ethical perspective.
C
Which of the following is emphasized by a compliance-based culture? A. Reinforcement of a set of values rather than a set of rules B. Use of values as the principle for decision making C. Obedience to rules as the primary responsibility of ethics D. Reliance on personal integrity of employees for decision making
C
Which of the following is the first step in making an ethically responsible decision? A. Considering the available alternatives B. Comparing and weighing alternatives C. Determining the facts of the situation D. Monitoring and learning from the outcomes
C
Which of the following is true about an integrity-based culture? A. It reinforces a particular set of rules. B. It empowers legal bodies to monitor compliance. C. It reinforces a particular set of values. D. It emphasizes rules as the primary responsibility of ethics.
C
Which of the following principles does utilitarianism emphasize? A. Ensuring that a fair decision is an impartial decision B. Acting only out of self-interest C. Producing the greatest good for the greatest number D. Obeying the law and keeping promises
C
Which of the following statements is true about an ethical leader in a corporate environment? A. An ethical leader agrees to conduct that would be inconsistent with her or his own personal values. B. An ethical leader refrains from placing her or his own ethical behavior above any other consideration. C. An ethical leader allocates corporate resources to support and promote ethical behavior. D. An ethical leader shirks her or his duties in the corporate structure.
C
Chapter 5
Corporate Social Responsibility (CSR)
The omission known as change blindness occurs when ________. A. a decision maker wants to bring about a change on a whim B. a sudden change is overlooked by decision makers C. decision makers are adamant on maintaining status quo due to a fear of change D. decision makers fail to notice gradual changes over time
D
The philanthropic perspective of the economic model in which business support for a social cause is done because it is the right thing to do differs from the reputational version only in terms of the: A. medium used. B. level of social good done C. reach of the social good done. D. underlying motivation.
D
A(n) ________ provides concrete guidance for internal decision making creating a built-in risk management system. A. organization vision B. income statement C. ombudsperson D. code of conduct
D
Identify a true statement about a compliance-based culture. A. A compliance-based culture is one that reinforces a particular set of values rather a particular set of rules. B. A compliance-based culture is perceived to have a more flexible and far-sighted corporate environment. C. A compliance-based culture recognizes that where a rule does not apply, a firm must rely on the personal integrity of its workforce when decisions need to be made. D. A compliance-based culture is only as strong and as precise as the rules which workers are expected to follow.
D
In a general sense, anyone who affects or is affected by decisions made within a firm can be called a business ________. A. insider B. nominee C. analyst D. stakeholder
D
In the ethical decision-making process, once one examines the facts and identifies the ethical issues involved, one should next ________. A. monitor and learn from the outcomes B. make the decision C. consider the available alternatives D. identify the stakeholders
D
No group could function if members were free at all times to decide for themselves what to do and how to act. Which of the following functions to organize and ease relations between individuals? A. Personal norms B. Self-rule C. Autocracy D. Social contract
D
Philosophers often state that ethics is ________, which means that it focuses on people's reasoning about how they should act: A. clinical B. derivative C. circumstantial D. normative
D
The ________ directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of profit. A. sustainability theory of corporate social responsibility (CSR) B. stakeholder theory of corporate social responsibility (CSR) C. integrative model of corporate social responsibility (CSR) D. economic model of corporate social responsibility (CSR)
D
The ________ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment. A. income statement B. vision statement C. annual report D. mission statement
D
The three major categories of an ethical framework are: A. utility, virtue, and values. B. universal rights, cultural norms, and morals. C. universal rights, values, and moral principles. D. consequences, principles, and personal character.
D
Which of the following is true about the Sarbanes-Oxley Act? A. It did not support the United States Sentencing Commission's guidelines to create both a legal and an ethical corporate environment. B. It specifically asked for lenient penalties in sentencing recommendations. C. Its mandatory nature violated the Sixth Amendment right to a jury trial. D. It required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist.
D
Which of the following is true of moral imagination? A. It refers to the positive impact a hypothetical decision is projected to have on the stakeholders involved in the decision. B. It occurs when decision makers fail to notice gradual variations over time. C. It denotes reasonable ethical judgments that a person makes without regard for facts. D. It distinguishes good people who make ethically responsible decisions from good people who do not.
D
Which of the following should an organization do in order to have an effective compliance and ethics program? A. The organization should refrain from promoting and consistently enforcing its compliance and ethics program. B. It should ensure that people who have previously engaged in unethical activities are placed in charge of programs. C. Low-level personnel must be assigned to have responsibility for the program. D. The organization should establish standards and procedures to prevent and detect criminal conduct.
D
Which of the following statements is true about ethical cultures? A. Workplace ethical cultures have no impact on decision making. B. Subordinates are expected not to act unless directed by superior authorities. C. Decisions are expected to be taken based on laws and not on ethical values. D. Employees are expected to act in responsible ways, even when the law does not require it.
D
Which of the following statements is true about value-based cultures? A. They emphasize obedience to the rules as the primary responsibility of ethics. B. They reflect the traditional approach of classifying corporate culture. C. They are only as strong and as precise as the rules with which workers are expected to comply. D. These cultures are perceived to be more flexible and far-sighted corporate environments.
D
According to the ________ model of corporate social responsibility (CSR), the social responsibility of business managers is simply to pursue profit within the law.
Economic
A ________ environment is one in which employees act in responsible ways, even when the law does not require it.
Ethical
Chapter 2 Quiz
Ethical Decision Making: Personal and Professional Contexts
Chapter 1 Quiz
Ethics and Business
Virtue ethics directs us to consider the ________ of individuals and how various character traits can contribute to, or obstruct a happy, meaningful life.
moral character
Legal rules, organizational rules, role-based rules, and professional rules form a part of a ________, which functions to organize and ease relations between individuals.
social contract