Chapter 4 Management

Carrying out discretionary responsibilities is mandatory for every organization. True False

F

Which of the following is a difference between property deviance and production deviance? Property deviance influences employees to steal company merchandise, whereas production deviance influences employees to endanger coworkers. Property deviance affects company possessions and products, whereas production deviance affects the quality of work produced. Property deviance is aimed at gaining illegal ownership of a company, whereas production deviance is aimed at obtaining illegal products. Property deviance falls into the category of workplace deviance, whereas production deviance falls into the category of political deviance.

Property deviance affects company possessions and products, whereas production deviance affects the quality of work produced.

Organizational culture is key to fostering ethical decision making. True False

T

Which of the following statements is true of the relationship between social responsibility and economic performance? The costs of being socially responsible can be offset by a better product or corporate reputation. Socially responsible companies are guaranteed profitability. Socially responsible companies and traditional businesses do not experience the same ups and downs in economic performance. There is a big trade-off between social responsibility and economic performance.

a. The costs of being socially responsible can be offset by a better product or corporate reputation.

_____ is the degree of concern people have about an ethical issue. Ethical intensity Ethical congruence Ethical pluralism Ethical objectivism

a. Ethical intensity

_ refers to a company's strategy to react to stakeholders' economic, legal, ethical, or discretionary expectations concerning social responsibility. Social responsiveness Social awareness Social loafing Social engineering

a. Social responsiveness

Ethics training becomes more credible when top managers teach the initial ethics classes to their subordinates who in turn teach their subordinates. True False

a. T

he principle of distributive justice is designed to protect the poor, the uneducated, and the unemployed. True False

a. T

Which of the following is an objective of ethics training programs for employees? To achieve credibility with employees To enforce flexible ethical standards To discourage employees from reporting violations To delegate the decision-making authority to all employees

a. To achieve credibility with employees

According to psychologist Lawrence Kohlberg, people at the _____ of moral development make decisions that conform to societal expectations. conventional level unconventional level preconventional level postconventional level

a. conventional level

Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a _____. high magnitude of consequences low magnitude of influence high cultural effect low probability of effect

a. high magnitude of consequences

In the context of workplace deviance, unlike personal aggression, political deviance: involves using one's influence to harm others. includes verbal abuse and personally threatening coworkers. involves direct hostility toward others. includes the theft of company merchandise.

a. involves using one's influence to harm others.

Managers can use overt integrity tests to _____. select and hire ethical employees assess the ethical intensity of an issue differentiate between the ethics of primary and secondary stakeholders reinforce the ethical principle of individual rights

a. select and hire ethical employees

Unlike the instrumental exchange stage of the preconventional level of moral development, in the punishment and obedience stage of the preconventional level of moral development, _____. your primary concern will be to avoid trouble for yourself you will stick to your principles even if your decision conflicts with the law you worry less about punishment and more about doing things that directly advance your wants you normally do what the other "morally upright" people are doing

a. your primary concern will be to avoid trouble for yourself

Which of the following is a similarity between political deviance and personal aggression? Both involve the theft of company merchandise. Both involve harming coworkers. Both address the issue of quality of work. Both aim at damaging company property.

b. Both involve harming coworkers.

When addressing an issue of high _____, managers are more aware of the impact their decision will have on others. ethical congruence ethical intensity ethical pluralism ethical subjectivism

b. Ethical congruence

A company must avoid communicating its code of ethics to others outside the company. True False

b. F

In the context of ethical decision making, the principle of government requirements states that one should never take an action that does not result in greater good for society. Incorrect Response True False

b. F

Nonprofits, partnerships, and labor unions are not covered by the US Sentencing Commission Guidelines for Organizations. True False

b. F

The greater the corporate responsibility in conducting, encouraging, or sanctioning illegal or unethical activity, the lower the culpability score. True False

b. F

he principle of distributive justice is designed to protect the poor, the uneducated, and the unemployed. True False

b. F

_____ is a business's obligation to pursue policies, make decisions, and take actions that benefit society. Social loafing Social responsibility Social networking Social engineering

b. Social responsibility

company must avoid communicating its code of ethics to others outside the company. True False

b. f

In a basic model of ethical decision making, after a problem has been identified, the next step is to _____. diagnose the situation identify the constituents analyze the available options develop alternative solutions

b. identify the constituents

A(n) _____ is a social responsiveness strategy in which a company does less than society expects. discretionary strategy reactive strategy proactive strategy accommodative strategy

b. reactive strategy

Secondary stakeholders are important to a company because: they are critical to the company's long-term survival. they can affect public perceptions about socially responsible behavior. they are involved in day-to-day transactions with the company. they have the direct power to control management decisions.

b.they can affect public perceptions about socially responsible behavior.

Which of the following is an argument put forth by economist Milton Friedman? A law represents the minimal moral standards of society, so an individual should never take any action that violates the law. It is unethical for companies to take any action that is not in an organization's long-term self-interest. It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations. An individual's ethical decision is based on his or her level of moral development.

c. It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations.

_____ are defined as persons or groups with a legitimate interest in a company. Baby boomers Millennials Stakeholders Boomerangs

c. Stakeholders

In the context of the postconventional level of moral development, which of the following statements is true of individuals in the universal principle stage? They look for external guidance and do whatever the law permits. They worry less about punishment and more about doing things that directly advance their wants. They stick to their principles even if their decision conflicts with the law. They believe that society is better off when the rights of others are not violated.

c. They stick to their principles even if their decision conflicts with the law.

According to the U.S. Sentencing Commission Guidelines for Organizations, which of the following steps should be followed immediately after the standards and procedures for an effective compliance program have been established? First-line managers should be trained on standards and procedures. Ethical employees should be given decision-making authority. Upper-level managers should be given charge of the program. Middle managers should take steps to improve the program after violations.

c. Upper-level managers should be given charge of the program.

A(n) _____ is a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem. reactive strategy defensive strategy accommodative strategy discretionary strategy

c. accommodative strategy

The last step in a basic model of ethical decision making is to _____. diagnose the situation analyze alternatives act on the situation monitor the results

c. act on the situation

When businesses enhance their reputations by being socially responsible, they hope to maximize _____. utilitarian benefits the opportunity cost of a choice customers' willingness to pay distributive justice

c. customers' willingness to pay

In the context of workplace deviance, unlike property deviance, production deviance: a. hurts the possessions of a company. b. includes serious deviant behaviors that are targeted at an organization. c. hurts the quality and quantity of work produced. d. impacts the ownership and legal rights of an organization.

c. hurts the quality and quantity of work produced.

In the context of workplace deviance, unlike political deviance, personal aggression: involves the theft of company merchandise. involves showing favoritism and spreading rumors. involves workplace violence. involves using one's influence to harm others.

c. involves workplace violence.

According to psychologist Lawrence Kohlberg, people at the _____ of moral development make decisions that are based on selfish reasons. conventional level unconventional level preconventional level postconventional level

c. preconventional level

The _____ holds that an individual should never do anything that is not honest, open, and truthful and that he or she would not be glad to see reported in the newspapers or on television. principle of government requirements principle of distributive justice principle of personal virtue principle of utilitarian benefits

c. principle of personal virtue

____ pertain to the social roles that businesses play in society beyond their economic, legal, and ethical responsibilities. Proactive responsibilities Obligatory responsibilities Accommodative responsibilities Discretionary responsibilities

d. Discretionary responsibilities

_____ is a company's social responsibility to not violate accepted principles of right and wrong when conducting its business. Legal responsibility Ethical responsibility Economic responsibility Discretionary responsibility

d. Discretionary responsibility

Which of the following statements best explains the carrot-and-stick approach of the U.S. Sentencing Commission Guidelines for Organizations? Nonprofit organizations are exempted from fines. Unincorporated organizations and associations are exempted from penalties. Organizations accused of unethical behavior are excused if the management was unaware of such behavior. Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior.

d. Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior.

Identify a difference between social consensus and magnitude of consequences. Social consensus is the chance that something will happen that results in harm to others, whereas magnitude of consequences is the psychological or physical distance of a decision maker from those affected by his or her decisions. Social consensus is an ethical principle that holds that you should never take any action that harms the least fortunate, whereas magnitude of consequences is an ethical principle that holds that you should never take any action that does not result in greater good for society. Social consensus is the extent to which a decision maker is socially or culturally distant from those affected by his or her decisions, whereas magnitude of consequences is how much an act affects the average person. Social consensus is agreement on whether behavior is bad or good, whereas magnitude of consequences is the total harm or benefit derived from an ethical decision.

d. Social consensus is agreement on whether behavior is bad or good, whereas magnitude of consequences is the total harm or benefit derived from an ethical decision.

Which of the following stakeholder groups does not engage in regular transactions with a company? Customers Governments Local communities Special interest groups View Feedback

d. Special interest groups

In the context of ethical intensity, unlike proximity of effect, concentration of effect is: the social distance of a decision maker from those affected by his or her decisions. the total harm or benefit derived from an ethical decision. the chance that something will happen that results in harm to others. how much an act affects the average person.

d. how much an act affects the average person.

A(n) _____ is a written test that estimates job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors. effort-based integrity test personality-based integrity test covert integrity test overt integrity test

d. overt integrity test

Under the _____, an individual should never take any action that harms the least fortunate people in some way. principle of government requirements principle of personal virtue principle of utilitarian benefits principle of distributive justice

d. principle of distributive justice

In the _____ of the postconventional level of moral development, you are careful not to violate the rights of others. law and order stage Incorrect Response punishment and obedience stage social contract stage

d. social contract stage

For a code of ethics to encourage ethical decision making and behavior in a company, _____. it must be communicated only inside the company it should revolve around legal factors and not organizational goals and mission the management must ensure that the code does not include customers' and shareholders' interests the management must develop practical ethical standards and procedures specific to the company's line of business

d. the management must develop practical ethical standards and procedures specific to the company's line of business

The U.S. Sentencing Commission Guidelines for Organizations impose smaller fines on companies that: have no history of violation of ethical principles. are unaware of the unethical behavior of employees. are not concerned with the ethical behavior of employees. voluntarily disclose illegal activities to federal authorities.

d. voluntarily disclose illegal activities to federal authorities.

In the context of Kohlberg's stages of moral development, unlike the law and order stage, in the instrumental exchange stage, _____. you will stick to your principles even if your decision conflicts with the law Incorrect Response your primary concern will be to avoid trouble for yourself you are careful not to violate the rights of others Correct Answer you worry less about punishment and more about doing things that directly advance your needs

d. your primary concern will be to avoid trouble for yourself

In the context of workplace deviance, unlike personal aggression, employee shrinkage: solely affects the intangible assets of a company. deals with hostile behavior toward coworkers. hurts the quality and quantity of work produced. deals with worker theft of company merchandise.

d.deals with worker theft of company merchandise.