Chapter 3 quiz

Which approach to social responsibility is being implemented by a company that actively embraces the need to behave in socially responsible ways? A) Proactive B) Accommodative C) Obstructionist D) Defensive E) Assertive

A

Utilitarian rule states that an ethical decision is a decision that __________. A) Best protects the rights of people affected. B) Produces the greatest good for the greatest number of people. C) Distributes benefits and harms in an impartial manner. D) Can be communicated with no reluctance. E) Increases the financial effectiveness of the organization.

B

__________ is the esteem or high repute that individuals or organizations gain when they behave ethically? A) Trust B) Reputation C) Social Responsibility D) Moral Standing E) Emotional Value

B

One managerial implication of the justice rule is that managers should base their decision on which of the following? A) The effects the decision can have on stakeholders' rights. B) What provides maximum profits to the company. C) Whatever promotes a fair distribution of outcomes. D) The personal situation of employees. E) The greatest good for the greatest number of people.

C

The __________ stakeholder group is considered to be the most critical. A) Managers B) Employees C) Customers D) Stockholders E) Suppliers

C

Unethical behavior does which of the following? A) Reduces a company's inefficiency. B) Decreases a company's ineffectiveness. C) Reduces a company's performance. D) Increases the national standard of living. E) Increases national well-being and prosperity.

C

When faced with an ethical dilemma as a manager, Same tries to reflect on his upbringing to decide between right and wrong. Same is reflecting on which type of ethics? A) Societal B) Occupational C) Individual D) Organizational E) Religious

C

Which of the following best defines the moral principles and beliefs about what is the right or appropriate way to behave? A) Societal norms B) Laws and regulations C) Ethics D) Values and norms E) Individual values

C

__________ is a formal, written standard of rules based on beliefs about right and wrong that guide the behavior of managers and employees within an organization. A) Code of Conduct B) Code of Statue C) Code of Ethics D) Code of Virtue E) Code of Standards

C

A(n) __________ is a manager responsible for communicating and teaching ethical standards to all employees and monitoring their conformity to those standards. A) Ethics Director B) Ethics Manager C) Ethics Interpreter D) Ethics Ombudsperson E) Ethics Supervisor

D

Managers at Enron prevented employees from selling Enron shares in their pension funds while they sold hundreds of millions of dollars' worth of their own Enron stock. This illustrates the __________ approach to social responsibility. A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

D

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n) __________ approach to social responsibility. A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

D

Which of the following approaches to a commitment to social responsibility is characterized by low levels of socially responsible behavior? A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Obligatory

D

The __________ has organization-wide authority. Hence, organization members in any department can communicate instances of unethical behavior by their managers or coworkers without fear of retribution. A) Manager B) Stakeholder C) Shareholder D) Supervisor E) Ethics Ombudsperson

E

Which of the following is least likely to be a source of individual ethics? A) Family B) Friends C) Church D) Teachers E) Supervisors

E

Companies that go out of their way to learn about the needs of different stakeholders and use organizational resources to promote their interests are using which of the following approaches? A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

B

According to which of the following approaches do companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises? A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

A

Which stakeholder group has the most responsibility for deciding the goals of the organization? A) Stockholders B) Customers C) Managers D) Operational-level employees E) Consultants

C

Which of the following statements is true of the practical rule of ethical decision making? A) This rule emphasizes distributing benefits and harms in an equitable way. B) This rule states that it is acceptable for a company to choose an unethical action if the action provides the greatest good for the greatest number of people. C) This rule requires managers to determine the fair or unfair rules and procedures for distributing outcomes to stakeholders. D) This rule states that an ethical decision is one that a manager will be hesitant or reluctant to communicate to people outside the company because the typical person in a society would think it is unacceptable. E) This rule ensures that managers will take into account the interests of all the stakeholders.

E

__________ are individuals who have a claim on an organization because they bring to it their skills, expertise, and experience. A) Customers B) Distributors C) Suppliers D) Local Communities E) Managers

E

Samantha made some changes in the production process to make sure employees could perform tasks without endangering their health and safety. Samantha was employing the moral rights rule to __________. A) Seek to protect the rights and privileges of people affected. B) Maximize the greatest good for the greatest number of people. C) Distribute benefits in fair ways, but ignore harm. D) Hesitate to communicate to people outside the company for fear of them criticizing her decision. E) Randomly distribute harms and benefits.

A

The president at Protector's Insurance takes pride in the fact that his organization strives to behave legally and ethically. The company advocates an approach that tries to balance the interests of different stakeholders in relation to the claims of other stakeholders. What approach to social responsibility is the organization implementing? A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

A

Tiffany & Co. has a deep moral commitment to act responsibly in its sourcing of precious metals and gemstones. This is an example of __________ ethics. A) Societal B) Individual C) Organizational D) Occupational E) Governmental

A

Under which rule is an ethical decision one that distributes rewards and harms in a fair way? A) Justice B) Moral Rights C) Utilitarian D) Practical E) Moral Scruples

A

Which type of ethics are the standards that govern how members of society should deal with one another in matters involving issues such as fairness, justice, poverty, and individual rights? A) Societal B) Occupational C) Individual D) Organizational E) Governmental

A

__________ is a person's confidence and faith in another person's goodwill. A) Trust B) Reputation C) Social Responsibility D) Moral Standing E) Emotional Value

A

Dianna has witnessed her manager harassing a coworker on multiple occasions. Dianna knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job. This example illustrates which of the following? A) Justice rule B) Ethical dilemma C) Moral dilemma D) Utilitarian rule E) Moral rights rule

B

Under the practical rule, a manager would not be reluctant to communicate a decision to people outside the company when __________. A) The decision, although unethical, would increase shareholders' wealth. B) A typical person would consider the decision acceptable. C) A typical person wouldn't care about the decision. D) A typical person would be unaware of the harmful implications of the decision. E) He/she could blame the top management of the firm.

B

Under which rule is an ethical decision one that best maintains people's fundamental privileges? A) Justice B) Moral Rights C) Utilitarian D) Practical E) Moral Scruples

B

Which of the following approaches is characterized by the highest degree of social responsibility? A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

B

A company that expects it managers to behave ethically to the degree that they stay within the law is acting with a(n) __________ approach. A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

C

Managers who sell their stock in advance of other stockholders because they know that their company's performance is about to fall demonstrate the __________ approach to social responsibility. A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Reactive

C

Simon was confronted with a serious ethical dilemma. He responded with a solution that created the greatest good for the greatest number of people. Which ethical rule best describes his response? A) Justice B) Moral Rights C) Utilitarian D) Practical E) Moral Scruples

C

Stockholders are interested in how a company operates because __________. A) They are responsible for the organization's capital resources. B) They are responsible for the organization's financial resources. C) They want to maximize the return on their investment. D) They provide input for the goals of the organization. E) They want to make sure the organization makes the most efficient use of resources.

C

Which of the following best describes individuals who watch a company and its manager closely to ensure that management is working diligently to increase the company's profitability? A) Community members B) Suppliers C) Stockholders D) Customers E) Distributors

C

Which of the following statements is true about ethics? A) Ethics and laws are fixed principles. B) Ethical beliefs remain constant as time passes. C) Laws change to reflect the changing ethical beliefs of a society. D) Absolute and indisputable rules and principles can be developed to decide whether an action is ethical or unethical. E) Ethics evolve over time, but laws related to ethical beliefs remain constant.

C

Which of the following statements is true of ethical decision making? A) Customers are often regarded as the least important stakeholder group. B) Communities, societies, and nations are independent of the effects of the decisions made by companies. C) The failure of a company can have catastrophic effects on a community since a general decline in business activity can affect a whole nation. D) The results of ethical behavior are loss of reputation and resources, and skilled managers and employees leaving the company. E) When making a business decision, managers must exclusively consider the claims of stockholders.

C

Which type of ethics are standards that determine how people view their responsibilities to others and how they should act in situations when their own self-interest is at stake? A) Societal B) Occupational C) Individual D) Organizational E) Governmental

C

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other stockholders. This illustrates which type of approach? A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Offensive

C

Companies that use the ___________ approach are often at the forefront of campaigns for causes such as pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics tests; and the reduction of crime, illiteracy, and poverty. A) Accommodative B) Defensive C) Reactive D) Proactive E) Obstructionist

D

Demonstrating its social responsibility helps a company build a good __________. A) Infrastructure B) Production Unite C) Selection Process D) Reputation E) Organizational Hierarchy

D

The managers of Lehman Brothers, whose bankruptcy helped propel the 2008-09 financial crisis, used loopholes in the U.K. law to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition. Which of the following approaches to how to be socially responsible is illustrated from this example. A) Accommodative B) Proactive C) Defensive D) Obstructionist E) Obligatory

D

The practical rule states that an ethical decision is one that __________. A) Best protects the rights of people affected. B) Produces the greatest good for the greatest number of people. C) Distributes benefits and harms in a fair way. D) Can be communicated with no reluctance. E) Is relevant to the financial effectiveness of the organization.

D

When Drew was calculating the yearly bonuses for his employees, he paid particular attention to the individual employee scores to ensure that they were based on performance and not favoritism. Which ethical rule was Drew following? A) Practical B) Moral Scruples C) Utilitarian D) Justice E) Moral Rights

D

Which of the following is a method by which a company can act ethically toward employees and meet their expectations? A) By improving their products over time and providing guarantees to customers about the integrity of their products. B) By selling customers quality products at a fair price and providing good after-sales service. C) By maximizing the stockholders' return on investments. D) By creating an occupational structure that fairly and equitably rewards organization members for their contributions. E) By implementing a high power distance culture and discouraging decentralized decision making.

D

Which of the following is true of regarding an organization's ethics? A) Employees are more likely to act unethically when a code of ethics exists. B) Employees are more likely to act unethically when the company's top managers consistently endorse the ethical principles in its code of ethics. C) Top managers play the least important role in determining a company's ethics. D) The individual ethics of a company's leaders and top managers are especially important in shaping the organization's code of ethics. E) They are standards that govern how members of a profession, trade, or craft should conduct themselves when performing work related activities.

D

Which of the following stakeholder group's individual ethics are important in shaping the organizational code of ethics? A) Employees B) Customers C) Community D) Leaders E) Stakeholders

D

Which stakeholder group is frequently in the position of having to juggle the interests of different stakeholders, including themselves? A) Stockholders B) Customers C) Contractors D) Managers E) Suppliers

D

Which of the following best describes individuals who have the right to expect a good return or reward by investing their human capital to improve a company's performance? A) Customers B) Distributors C) Suppliers D) Stockholders E) Managers

E

Which of the following statement is true about stakeholders? A) They are often regarded as the most critical stakeholder group because if a company cannot attract them to buy its products, it cannot stay in business. B) They are least interested in the company's profits. C) They bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals. D) They are responsible for using a company's financial, capital, and human resources to increase its performance and thus its stock price. E) They have a claim on a company because whey they buy its stock or shares, they become its owners.

E