Chapter 4: Corporate Social Responsibility, Ethics, and Sustainability

Vocational Rehabilitation Act of 1973

For jobs connected with the federal government, requires affirmative action to employee qualified handicapped persons and prohibits discrimination against them

(d) Set sustainability goals.

Identify a basic step that organizations can take to achieve sustainability. (a) Terminate unethical employees. (b) Confront an employee suspected of wrongdoing. (c) Gather and record evidence of wrongdoing. (d) Set sustainability goals.

(d) Potential loss of qualified employees

Identify a disadvantage associated with unethical behavior in an organization. (a) Improvement in an organization's relations with a community. (b) Reduced public pressure for government regulation (c) Decreased production of shoddy merchandise (d) Potential loss of qualified employees

(a) Ethical behavior can improve organizations' relations with the community.

Identify a true statement about behavior in organizations. (a) Ethical behavior can improve organizations' relations with the community. (b) Organizations do not have to become involved in social problems that are outside their normal areas of operation. (c) Ethical standards are standard across all cultures. (d) Organizations and employees do not have an obligation to behave ethically.

(d) Supervisors can see the consequences of their actions by discussing the ethical implications of their decisions.

Identify a true statement about ethical decision making. (a) It follows the same standards across all cultures. (b) Supervisors can engage in questionable ethical decision making if it helps keep costs down. (c) It is based on hard-and-fast rules. (d) Supervisors can see the consequences of their actions by discussing the ethical implications of their decisions.

(a) It is a challenge to decide what is right in a situation and then determine how to carry it out.

Identify a true statement about ethical decisions in an organization. (a) It is a challenge to decide what is right in a situation and then determine how to carry it out. (b) They are based on ethical standards that are common across all cultures. (c) They are based on hard-and-fast rules. (d) It is acceptable to make questionable ethical decisions in order to keep costs down.

(c) It is difficult to meet ethical standards when one works with people from more than one culture.

Identify a true statement about ethical standards. (a) It is acceptable to compromise ethical standards if doing so keeps costs down. (b) Ethical standards are fixed across all business cultures. (c) It is difficult to meet ethical standards when one works with people from more than one culture. (d) Ethical standards cannot improve an organization's relations with the community.

(a) To produce only what customers will demand

Identify an economic concern of a manager in a sustainable organization. (a) To produce only what customers will demand (b) To minimize the usage of fossil fuel and energy (c) To conserve natural resources (d) To protect and care for the communities in which the organization's workers live

(b) To produce only what customers will demand

Identify an economic concern of a manager in a sustainable organization. (a) To conserve natural resources (b) To produce only what customers will demand (c) To protect and care for the communities in which organization's workers live (d) To minimize the usage of fossil fuel and energy

(d) Conserving natural resources

Identify an environmental concern of a manager in a sustainable organization. (a) Producing only what customers will demand (b) Generating a fair profit for the company's investors (c) Protecting and caring for the community (d) Conserving natural resources

(b) Producing substandard merchandise in order to reduce costs

Identify an example of unethical behavior at the organizational level. (a) Prohibiting the acceptance of gifts that fall outside federal government regulations (b) Producing substandard merchandise in order to reduce costs (c) Increasing the price of goods in order to be on par with competitors (d) Refusing to hire qualified relatives

(b) Responding to problems (d) Keeping communication flowing

Identify the courses of actions that will allow an organization to find solutions without the costs and embarrassment of public disclosure in the event of whistle-blowing by an employee. Select all that apply. (a) Terminating the whistle-blower (b) Responding to problems (c) Viewing the whistle-blower as a troublemaker (d) Keeping communication flowing

(a) A government agency (b) A private organization (d) The media

Identify the organizations a whistle-blower might contact if a manager in his or her organization is unresponsive to ethical issue. Select all that apply. (a) A government agency (b) A private organization (c) The chief executive officer (CEO) of the whistle-blower's organization (d) The media

(a) The social costs related to each activity, product, or service shall be passed on to the customer. (d) Social responsibility arises from social power.

Identify the propositions of the Davis model of corporate social responsibility. Select all that apply. (a) The social costs related to each activity, product, or service shall be passed on to the customer. (b) Business institutions do not have the responsibility to be involved in social problems. (c) Business shall operate as a one-way system, with open receipt of inputs only from society. (d) Social responsibility arises from social power.

(c) investigate the complaint and report what will be done

If an employee complains about a genuine case of wrongdoing in an organization, a supervisor should _____. (a) advise the whistle-blower to withdraw the complaint as it reflects poorly on the supervisor (b) advise the whistle-blower to quit the organization (c) investigate the complaint and report what will be done (d) ignore the complaint as it does not affect the organization's profits

(c) sustainability

If organizations use less energy, less of the world's natural resources, and reduce waste, they can keep on making their products available without using up what the planet can provide. This is the goal of _____. (a) profitability (b) validity (c) sustainability (d) reliability

(d) United Nations Global Compact

In an international context, some companies have helped individuals make ethical choices by signing the voluntary _____. (a) North American Free Trade Agreement (b) North American Agreement on Labor Cooperation (c) Universal Declaration of Human Rights (d) United Nations Global Compact

(c) nepotism

Joan, a supervisor at a publishing firm, hires her brother for a post in her company although he lacks the required credentials for the job. Joan is guilty of _____. (a) pragmatism (b) cronyism (c) nepotism (d) dogmatism

(a) unethical behavior

Kevin is an accountant at a software company. In order to show inflated profits for the company, he uses a hedge fund to transfer money from one account to another. This transfer does not comply with legal accounting standards. In this scenario, Kevin is guilty of _____. (a) unethical behavior (b) groupthink (c) nepotism (d) whistle-blowing

Corporate Social Responsibility

Managerial obligation to take action that protects and improves the welfare of society and the organization's interests

Vietnam Era Veterans' Readjustment Assistance Act of 1974

Mandates affirmative action in employment for veterans of the Vietnam War era

(c) Fairness

Marwin, a supervisor of a sales team at a marketing firm, does not like women and often blames company losses on their ineptitude. In this scenario, identify the dimension of ethical behavior that is being violated. (a) Profitability (b) Sustainability (c) Fairness (d) Loyalty

Prejudice

Negative conclusions about a category of people based on stereotypes

Qualified Individual with a Disability

Person with a disability who, with or without reasonable accommodation, can perform the essential functions of a particular job

Civil Rights Act of 1991

Places the burden of proof on the employer and allows for compensatory and punitive damages in discrimination cases

Americans with Disabilities Act of 1990

Prohibits discrimination against disabled employees in the private sector and encourages reasonable accommodations for them

Equal Pay of of 1963

Requires equal pay for men and women performing similar work

(a) He should confront the concerned employee with the evidence.

Simon, a supervisor at a steel plant, suspects that one of his employees is wasting time at work talking to friends over the phone. He gathers the required evidence to support his suspicion. Identify the next course of action that Simon should undertake. (a) He should confront the concerned employee with the evidence. (b) He should pass an order that phones should be left with security personnel before entering the work area. (c) He should protect the employee as this incident will reflect poorly on his supervisory skills. (d) He should terminate the employee according to his company's disciplinary procedure.

Whistle-Blower

Someone who exposes a violation of ethics or law

Whistle-blower

Someone who exposes a violation of ethics or law in an organization is known as a(n) _____.

Ethics

The principles by which people distinguish what is morally right

False

True or False: Fudging numbers on performance records or producing substandard merchandise is acceptable if it keeps costs down.

False

True or False: In all parts of the world, the giving of gifts to one's supervisor or manager is interpreted as an attempt to buy influence.

Discrimination

Unfair or inequitable treatment based on prejudice

Sexual Harassment

Unwanted sexual attentions, including language, behavior, or the display of images

(b) The social costs and benefits of an activity or product shall be thoroughly calculated and considered in deciding whether to proceed with it.

Which of the following is a proposition of the Davis model of corporate social responsibility? (a) Business shall operate as a one-way system, with open receipt of inputs solely from society. (b) The social costs and benefits of an activity or product shall be thoroughly calculated and considered in deciding whether to proceed with it. (c) Business institutions do not have the responsibility to become involved in certain social problems that are outside their normal areas of operation. (d) The social costs related to each activity, product, or service should not be passed on to consumers.

(a) the laws of several states (b) federal laws (d) court decision

Which of the following provide protection to whistle-blowers? Select all that apply. (a) the laws of several states (b) federal laws (c) the U.S. Constitution (d) court decision

(d) hire people with sustainability skills

A basic step that organizations can take to achieve sustainability is to _____. (a) gather and record evidence of wrongdoing (b) confront employees suspected of wrongdoing (c) terminate or retaliate against whistle-blowers (d) hire people with sustainability skills

Disability

A physical or mental impairment that substantially limits a major life activity, a record of such an impairment, or being regarded as having such an impairment

(d) corporate social responsibility

A supervisor working to meet an organizational goal of producing high-quality product is engaged in _____. (a) corporate philanthropy (b) whistle-blowing (c) nepostism (d) corporate social responsibility

(a) Confront the employee with the evidence.

After gathering and recording evidence of unethical behavior, identify the next step supervisors should take when an employee is suspected of unethical behavior. (a) Confront the employee with the evidence. (b) Follow the organization's disciplinary procedure. (c) Terminate the employee. (d) Look for and correct the conditions that led to the problem.

(d) Confront the employee with the evidence.

After gathering and recording evidence of unethical behavior, identify the next step supervisors should take when an employee is suspected of unethical behavior. (a) Look for and correct the conditions that led to the problem. (b) Terminate the employee. (c) Follow the employee. (d) Confront the employee with the evidence.

Bona Fide Occupational Qualification (BFOQ)

An objective characteristic required for an individual to perform a job properly

Sustainability

An organization's ability to meet its present needs without compromising the ability of future generations to meet their needs

sustainability

An organization's ability to meet its present needs without compromising the ability of future generations to meet their needs is known as _____.

Code of Ethics

An organization's written statement of its values and rules for ethical behavior

code of ethics

An organization's written statement of its values and rules for ethical behavior is know as its _____.

Age Discrimination in Employment Act of 1967

Bars discrimination against those 40 years and older because of age

Pregnancy Discrimination Act of 1978

Bars discrimination in employment against women based on pregnancy, childbirth, or related conditions

Corporate Culture

Beliefs and norms that govern organizational behavior

Title VII of 1964 Civil Rights Act, as amended

Created the Equal Employment Opportunity Commission; bars discrimination based on race, color, religion, sex, or national origin

Sexism

Discrimination based on gender stereotypes

(c) cause their performance to suffer and cost them their jobs

Employees are sometimes afraid to be ethical because doing so would _____. (a) lead to the resignation of top-notch supervisors (b) reduce public pressure for government regulation (c) cause their performance to suffer and cost them their jobs (d) attract job opportunities from competitors

Diversity

Characteristics of individuals that shape their identities and the experiences they have in society

Ageism

Discrimination based on age

Stereotypes

Generalized, fixed images of others

(a) Economy, environment, and society

Identify the areas based on which managers make decisions in sustainable organizations. (a) Economy, environment, and society (b) Productivity, taxes, and embargoes (c) Profits, losses, and expenses (d) Credit, debit, and liabilities

(c) increase productivity

Improving sustainability in an organization tends to _____. (a) increase groupthink (b) decrease taxes on merchandise (c) increase productivity (d) increases public pressure for government regulation

Nepotism

The hiring of one's own relatives

Ethics

_____ refers to the principles people use to distinguish what is morally right.