Principles of Management Chapter 4

accommodative strategy

A batch of a particular car model is found to have a serious defect in the engine that is potentially harmful. As soon as the company learns of the manufacturing defect, it announces an immediate recall of the entire defective batch of cars. This is an example of a(n) _____. a. accommodative strategy b. defensive strategy c. proactive strategy d. reactive strategy

proactive strategy

A company using a _____ will anticipate responsibility for a problem before it occurs, do more than expected to address the problem, and lead the industry in its approach. a. retaliatory strategy b. reactive strategy c. defensive strategy d. proactive strategy

defensive strategy

A(n) _____ is a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations. a. accommodative strategy b. defensive strategy c. retroactive strategy d. proactive strategy

They would worry less about punishment

According to Kohlberg's stages of moral development, which of the following is true of individuals at the instrumental exchange stage? a. They would avoid activities that are bad for society. b. They would do whatever the law permits them to do. c. They would worry less about punishment. d. They would avoid trouble for themselves.

satisfy their owners.

According to Milton Friedman, the only social responsibility that organizations have is to: a. make employees happy. b. satisfy their owners. c. divert wealth toward society. d. achieve long-time survival.

shareholder model

According to the _____, management's most important responsibility is the firm's long-term survival. a. stakeholder model b. media advocacy model c. normative model d. shareholder model

. How did it happen in the first place?

After a problem and its constituents have been identified, which of the following questions should a manager ask next in order to make an ethical decision? a. How did it happen in the first place? b. Who could be helped? c. Can I negotiate with those involved? d. What makes this an ethical problem?

Meeting the needs of primary stakeholders is usually more important than meeting the needs of secondary stakeholders of a company

Identify a true statement about stakeholders. a. Secondary stakeholders are groups on which a company depends for its long-term survival.. b. Meeting the needs of primary stakeholders is usually more important than meeting the needs of secondary stakeholders of a company. c. Secondary stakeholders engage in regular transactions with a company and are critical to its long-term survival. d. Primary stakeholders are important to a company because they can affect public perceptions and opinions about socially responsible behavior.

There is no guarantee that socially responsible companies will be profitable.

Identify a true statement about the relationship between social responsibility and economic performance of companies. a. Socially responsible companies always succeed in maximizing profits. b. A huge trade-off exists between being socially responsible and economic performance. c. Businesses predominantly become less profitable when they become socially responsible. d. There is no guarantee that socially responsible companies will be profitable.

develop employees' awareness of ethics

In order to create an ethical company culture, the first objective of ethics training is to: a. develop employees' awareness of ethics. b. caution employees about the consequences of reporting violations. c. delegate the ethical decision-making authority to all employees. d. assign upper-level managers to be in charge of ethical responsibilities.

reduced fines for having an effective compliance program.

In the carrot-and-stick approach used by the law to determine punishment for unethical behavior, the carrot signifies: a. heavy incentives for whistleblowing. b. heavy fines for unethical behavior. c. reduced fines for having an effective compliance program. d. reduced incentives for less money spent on social causes.

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

In the carrot-and-stick approach used by the law to determine punishment for unethical behavior, the stick signifies: a. the incentive for cooperating with federal authorities. b. the incentive in the absence of any offense. c. the reduced fine for having an effective compliance program. d. the threat of heavy fines based on the level of offense.

temporal immediacy

In the context of ethical intensity of decisions, _____ is the time between an act and the consequences the act produces. a. production deviance b. probability of effect c. proximity of effect d. temporal immediacy

concentration of effect

In the context of ethical intensity of decisions, _____ refers to how much an act affects the average person. a. proximity of effect b. concentration of effect c. deviance of effect d. probability of effect

probability of effect

In the context of ethical intensity of decisions, _____ refers to the chance that something will happen that results in harm to others. a. probability of effect b. temporal immediacy c. proximity of effect d. social consensus

principle of utilitarian benefits

In the context of principles of ethical decision making, the _____ states that one should never take an action that does not result in greater good for society. a. principle of individual rights b. principle of personal virtue c. principle of utilitarian benefits d. principle of distributive justice

. principle of government requirements

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. a. principle of distributive justice b. principle of individual rights c. principle of government requirements d. principle of personal virtue

punishment and obedience stage

Jake, a college freshman, wants to watch a movie that was released last month. His roommates download a free, pirated copy of the movie from a website and ask Jake to join them when watching it. Jake refuses as he knows that it is illegal to download and watch pirated movies. He is afraid he might be penalized if caught. According to Kohlberg's stages of moral development, Jake is at the _____ of moral development. a. law and order stage b. punishment and obedience stage c. "good boy, nice girl" stage d. instrumental exchange stage

An overt integrity test

Joe is a manager at Zoien Corp. He wants to hire an honest person for the position of software engineer at his firm. While interviewing candidates, Joe asks each candidate, "What would you do if someone in the management asked you to do something unethical?" Which of the following types of tests is Joe using to screen the candidates? a. A covert integrity test b. An overt integrity test c. An aptitude-based integrity test d. A personality-based integrity test

universal principle stage

Kyle always sticks to his principles when making a decision even if the decision conflicts with the law. According to Kohlberg's stages of moral development, Kyle is at the _____. a. universal principle stage b. social contract stage c. punishment and obedience stage d. law and order stage

whistle-blowing.

Rose found strong evidence that her supervisor, Roger, was stealing confidential documents from the company. Rose immediately reported Roger's actions to the top management. Rose's action is an example of: a. whistle-blowing. b. brainstorming. c. personal aggression. d. property deviance.

accommodative

Savoureel Corp., a nutrition bar manufacturer, learns that its nutrition bars being sold in Selenasia are made from low-quality ingredients that could cause health problems to its consumers. The company immediately stops the sale of its products in Selenasia and conducts a thorough investigation in its Selenasia business branch. The company also announces new quality standard checks and assures its customers that such errors will not occur again. In this case, Savoureel has adopted the _____ social responsiveness strategy. a. reactive b. proactive c. defensive d. accommodative

A defensive strategy

Signorite Inc., an apparel brand, manufactures clothes in workshops in a small town in Arhus. The workers work in a hazardous environment. Recently, a fire broke out in one of its workshops and resulted in numerous deaths and casualties. Many workers remained without work for months. Signorite acknowledged the problem but compensated the families of the victims with a very small cash sum and never addressed the matter again. Identify the social responsive strategy used by Signorite in this scenario. a. A proactive strategy b. A defensive strategy c. A comprehensive strategy d. An accommodative strategy

establish standards and procedures

The first step in a compliance program under the U.S. Sentencing Commission Guidelines for Organizations is to: a. enforce standards consistently and fairly. b. encourage employees to report violations. c. establish standards and procedures. d. delegate decision-making authority specifically to ethical employees.

determining the level of offense that has occurred in the organization.

Under the U.S. Sentencing Commission Guidelines for Organizations, the base fine for an organization involved in unethical behavior is computed by: a. determining the level of offense that has occurred in the organization. b. calculating the number of employees in the organization. c. examining the written code of ethics of the organization. d. assessing the net worth of the organization.

Improving the program after violations

Under the U.S. Sentencing Commission Guidelines for organizations, which of the following is the final step in a compliance program? a. Training employees on standards and procedures b. Encouraging employees to report violations c. Improving the program after violations d. Assigning upper-level managers to be in charge of the program

discretionary

Venus Electronics Corp. periodically conducts donation drives for famine victims and underprivileged children in Rhenasia. Venus Electronics is fulfilling its _____ responsibilities. a. discretionary b. cultural c. economic d. legal

social contract stage

Vincent refuses to watch a pirated movie because he believes that, as a whole, the community is better off when the rights of others such as directors, actors, and producers of the movie are not violated. According to Kohlberg's stages of moral development, Vincent is most likely at the _____. a. law and order stage b. social contract stage c. "good boy, nice girl" stage d. instrumental exchange stage

code of ethics

When Rubberstamp Productions, previously a small-time production house, grew in size, the first thing its chief executive officer (CEO) did was establish a set of guidelines that detailed all the principles, standards, and procedures to be followed in the company's line of business. The CEO set specific standards on topics ranging from treatment of coworkers to protecting the environment to maintenance of financial records. This scenario illustrates that the CEO developed a _____. a. code of ethics b. performance appraisal document c. cognitive map d. database of employee records

Employees reporting to authorities that coworkers are stealing money from clients

Which of the following actions is an example of whistle-blowing? a. Managers drinking at the workplace and violating workplace rules b. Managers ignoring employees who do not maintain office timings c. Employees turning up late to work and lying to the top management about it d. Employees reporting to authorities that coworkers are stealing money from clients

BmC Corp. avoids trade with unscrupulous companies.

Which of the following companies is fulfilling its ethical responsibility? a. Amtel adheres to labor and tax laws or applicable industry regulations. b. BmC Corp. avoids trade with unscrupulous companies. c. AzBev reports regulatory agencies about a business that is engaged in suspected illegal or improper activities d. RSDA Inc. donates $1 million to a local charity to build a retirement home.

The principle of religious injunctions

Which of the following ethical principles holds that one should never take any action that is unkind or harms a sense of community, such as the positive feelings that come from working together to accomplish a commonly accepted goal? a. The principle of personal virtue b. The principle of religious injunctions c. The principle of long-term self-interest d. The principle of individual rights

Local communities

Which of the following is considered a primary stakeholder of an organization. a. Local communities b. The media c. Special interest groups d. Trade associations

Trade associations

Which of the following is considered secondary stakeholders of an organization? a. Customers b. Trade associations c. Suppliers d. Employees

The company must communicate its code to others both inside and outside the company.

Which of the following is necessary for a code of ethics to encourage ethical decision making and behavior in a company? a. The company must ensure that competitor information included in the code is shared among all employees. b. The company must communicate its code to others both inside and outside the company. c. The code should revolve around legal factors and not organizational goals and missions. d. The code must contain broad rather than specific guidelines.

Bronwyn Inc. will have to lay off 50 employees before the following week because of poor economic conditions

Which of the following scenarios illustrates the strongest temporal immediacy? a. Employees at Darwin Pharmaceuticals will stop receiving incentives from next year as a result of deteriorating sales performance. b. Bronwyn Inc. will have to lay off 50 employees before the following week because of poor economic conditions. c. Administrative assistants at Carson Office Supply will probably have carpal tunnel syndrome as a result of typing on computer keyboards for eight hours every day. d. Tox-O Chemical Corp. will make a nearby stream unfit for aquatic life within 20 years by regularly dumping its toxic wastes into the stream.

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

Which of the following statements is true of social responsibility and economic performance? a. There is no trade-off between being socially responsible and economic performance. b. Being socially responsible guarantees business success. c. There is no inherent relationship between social responsibility and economic performance. d. Socially responsible companies experience vastly different ups and downs than traditional businesses do.

An animal rights organization that protests against Smokin' Steaks' use of animal products

Who among the following would be considered a secondary stakeholder of Smokin' Steaks, a popular chain of steak houses? a. An animal rights organization that protests against Smokin' Steaks' use of animal products b. Dominic Francis, the manager of a Smokin' Steaks restaurant in Brooklyn c. The supplier of hamburger meat to Smokin' Steaks franchises nationwide d. Mary Silverman, the owner of the Smokin' Steaks

Personality-based integrity tests

_____ indirectly estimate job applicants' honesty by measuring psychological traits such as dependability and conscientiousness. a. Overt integrity tests b. Covert integrity tests c. Personality-based integrity tests d. Aptitude-based integrity tests

Legal responsibility

_____ is a company's social responsibility to obey society's laws and regulations as it tries to meet its economic responsibilities. a. Cultural responsibility b. Ethical responsibility c. Legal responsibility d. Discretionary responsibility