Management Chapter 4 Test Bank

26. An organization's choice of which of two well-qualified suppliers to use is in the domain of _____. a. codified law b. free choice c. ethics d. compensatory justice e. social responsibility

b. free choice

32. When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest. This is an example of reasoning associated with the _____ approach. a. utilitarian b. individualism c. moral justice d. justice e. social responsibility

b. individualism

10. Research suggests that the majority of managers operate at the preconventional level of moral reasoning. a. True b. False

False

13. Corporate social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong. a. True b. False

False

18. According to research conducted by Adam Grant, the best predictor of a team's effectiveness is incentives such as bonuses and vacation time. a. True b. False

False

2. On the continuum of amounts of explicit control associated with the domains of human action, free choice lies between the domains of codified law and ethics. a. True b. False

False

20. According to Adam Grant of the Wharton School of Business, changes in society and organizations make self-sacrifice for the sake of a larger purpose an increasingly inappropriate and even dangerous characteristic. a. True b. False

False

3. If an act is not illegal, it must be ethical. a. True b. False

False

5. The utilitarian approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. a. True b. False

False

6. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders. a. True b. False

False

7. The ethical concept that acts are moral when they promote the individual's best long-term interests and assumes that will ultimately lead to the greater good is known as the moral rights approach. a. True b. False

False

1. Ethics is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong. a. True b. False

True

11. Only about 20 percent of U.S. adults reach the postconventional stage of moral development. a. True b. False

True

12. Corporate social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization. a. True b. False

True

14. Important stakeholders in corporations include the government and the community. a. True b. False

True

16. Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. a. True b. False

True

35. The __________ leadership style is associated with the preconventional level of personal moral development. a. autocratic b. team-oriented c. servant d. guiding/encouraging e. transforming

a. autocratic

45. Principle-based statements are designed to affect_____ as policy-based statements are procedures to be used in _____. a. corporate culture; specific ethical situations b. marketing practices; conflicts of interest c. observance of laws; proprietary information d. specific situations; corporate culture e. political gifts; equal opportunities

a. corporate culture; specific ethical situations

59. Ken cannot understand why it is any of his company's business that he sometimes sneaks a cigarette in the stairway or restroom. Yes, it is against company policy, but it is his choice. The company asserts that they have the right to make such policies because secondhand smoke from cigarettes is harmful to everyone, not "just" the smoker. The company's reasoning is most consistent with the ______ approach. a. procedural justice b. utilitarian c. individualism d. defensive e. free-choice

b. utilitarian

51. B Lab Certification is _____. a. required for all B corporations b. voluntary but desirable c. administered by the IRS d. considered important only for nonprofit organizations e. a legal framework

b. voluntary but desirable

29. A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered _____. a. a moral ambiguity b. a social responsibility c. an ethical dilemma d. an ethical standard e. discretionary responsibility

c. an ethical dilemma

50. A _____ corporation is a for-profit organization that has a stated purpose of creating a positive impact on society. a. sustainable b. socialist c. benefit d. protectionist e. global

c. benefit

34. The _________ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. a. social responsibility b. practical c. justice d. moral rights e. individualism

c. justice

36. Which behavior or outcome is particularly important to someone operating at the conventional level of personal moral development? a. Avoiding getting fired b. Empowering subordinates c. Meeting social and interpersonal obligations d. Being an autocratic leader e. Acting on the basis of internal values

c. meeting social and interpersonal obligations

37. When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked his life to save men who were being picked off by sharks. The Navy pilot was operating from the __________ level of moral development. a. preconventional b. conventional c. postconventional d. lowest e. conservative

c. postconventional

39. Any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions is called a(n) ______. a. supplier b. international customer c. stakeholder d. influencer e. trade association

c. stakeholder

46. Which group is charged with making rulings on questionable issues of right and wrong and assumes responsibility for disciplining wrongdoers? a. The culture committee b. The human resources committee c. The ethics committee d. The political correctness committee e. The disciplinary committee

c. the ethics committee

24. A benefit corporation is a not-for-profit organization that has a stated purpose that includes creating a material that has a positive impact on society. a. True b. False

False

15. Sustainability refers to the ability to generate wealth without compromising environmental responsibility and social stewardship, thus meeting the current and future needs of stakeholders while preserving the environment and society so that future generations can meet their needs as well. a. True b. False

True

19. One of the most pressing ethical dilemmas facing managers today is that of competitive intelligence, which is increasingly gained through social media. a. True b. False

True

21. The global supply chain has made issues related to corporate social responsibility more challenging, a. True b. False

True

22. Stakeholder mapping helps managers identify or prioritize the key stakeholders related to a specific issue or project. a. True b. False

True

23. The term triple bottom line refers to measuring an organization's social performance, its environmental performance, and its financial performance. a. True b. False

True

25. Companies can incorporate as benefit corporations without getting B Lab certification. a. True b. False

True

4. The moral agent is the individual who must make an ethical choice in an organization. a. True b. False

True

8. Procedural justice holds that rules should be clearly stated and consistently and impartially enforced. a. True b. False

True

9. Individuals at the preconventional level of moral reasoning are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. a. True b. False

True

44. Researchers have generally found a(n) _____ relationship between ethical and socially responsible behavior and a firm's financial performance. a. insignificant b. positive c. negative d. unimportant e. inconsequential

b. positive

17. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance. a. True b. False

True

27. Commercial advertising campaigns often seek to spin information on products. For example, a car manufacturer might say a particular car it manufactures was ranked as the most innovative new vehicle. The details of the survey that it was conducted at a shareholder meeting and only vehicles it manufactures were included in the survey are quickly flashed in very small print at the bottom of the screen. The decision to deliberately obscure potentially important information is best described as being in which domain? a. Ethical domain b. Domain of responsibility c. Legal domain d. Obstructive domain e. Protective domain

a. ethical domain

53. Lisa knows she should be working and not reading a novel. She also knows that she can usually hear her boss approach, since he has a large and noisy ring of keys. She decides to go ahead and read rather than work, reasoning that she can hear her boss approach and turn to her computer screen as he nears her cube. What level of moral reasoning does Lisa exhibit? a. Subconventional b. Preconventional c. Conventional d. Postconventional e. Supraconventional

b. preconventional

54. Loretta rose through the ranks to become a supervisor by outlasting everyone else. She is immensely proud of her title and never hesitates to remind her subordinates of it. She tells her employees what to do and expects them to follow her instructions exactly, and without question or objection. Loretta's management style suggests she is at which stage of moral development? a. Subconventional b. Preconventional c. Conventional d. Postconventional e. Supraconventional

b. preconventional

28. A recent poll found that nearly _____ percent of people say that executives make decisions based primarily on advancing their own careers. a. 10 b. 30 c. 50 d. 75 e. 95

e. 95

42. __________ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives. a. Ethical leadership b. Followership c. Corporate espionage d. Command-and-control leadership e. Concern-for-production leadership

a. ethical leadership

49. When a company tries to portray itself as more environmentally friendly than it actually is, it is engaging in _____. a. greenwashing b. conservation c. sustainability d. protectionism e. conscious capitalism

a. greenwashing

43. Statements that define fundamental values and reference organizational responsibilities, quality of products, and treatment of employees are often called ______. a. principle-based b. policy-based c. ethically based d. codified e. codes of organizational integrity

a. principle-based

33. Disk Replacement Services has just completed a procedure manual on how to handle employee grievances. One of the main directives is to make it clear to employees that rules will be administered fairly and consistently. This directive illustrates use of the ______ approach. a. procedural justice b. utilitarian c. individualism d. defensive e. free-choice

a. procedural justice

30. Robbie's Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the corporation as a whole. This is an example of the ____ approach. a. utilitarian b. individualism c. moral justice d. justice e. illegal

a. utilitarian

31. Caleb is a manager at Computer-Care Company. He is expected to consider the effect of each decision alternative on all parties and select the one that optimizes the benefits for the greatest number of people. This is an example of the _____ approach. a. utilitarian b. individualism c. moral justice d. justice e. soft-line managerial

a. utilitarian

52. What are the three Ps of the triple bottom line? a. Premium performance promotion b. People, planet, and profit c. Precise prediction profits d. Passion, prudence, and proof e. Plan, procure, and perfect

b. people, planet, and profit

60. There have recently been a number of episodes involving individuals who, on their private time, have engaged in shockingly racist behavior. BBQ Becky, ID Adam, Cornerstore Caroline, and others have been reviled for their racist behavior on the Internet, and some individuals have lost their jobs. The companies involved typically issue a statement that notes that the attitudes expressed are inconsistent with company values and the values or society as a whole. This is most consistent with the _____ approach. a. distributive justice b. practical c. individualism d. defensive e. free-choice

b. practical

55. Humbert is the new manager of a division that has a lot of problems with personality conflicts and low morale. He decides to start with his division by trying to guide and encourage employees to work better as a team and to develop interpersonal relationships and cooperation. This style suggests Humbert is at which stage of moral development? a. Subconventional b. Preconventional c. Conventional d. Postconventional e. Supraconventional

c. conventional

56. Teresa considers herself lucky to work for a company that emphasizes teamwork. The sense of interconnectedness is such that Teresa often finds herself voluntarily putting in extra time to make sure her workgroup exceeds the expectations of their clients. Teresa's behaviors and attitudes are most consistent with which stage of moral development? a. Subconventional b. Preconventional c. Conventional d. Postconventional e. Supraconventional

c. conventional

40. All of the following are examples of special interest groups, EXCEPT ______. a. professional associations b. trade associations c. political action committees d. courts e. consumerists

d. courts

57. Adelle is a department manager at a large corporation. She has made a conscious choice to lead in ways that enrich the lives of her subordinates, to help them develop and perform to their greatest capacity. Adelle's attitudes and behaviors are most consistent with which stage of moral development? a. Subconventional b. Preconventional c. Conventional d. Postconventional e. Supraconventional

d. postconventional

58. Leah is a line worker who is widely admired by virtually everyone, from peers to corporate leaders. She is able to get along with everyone and often functions as an informal mediator when disagreements arise. She volunteers to cover the shifts of employees who have family emergencies, and when asked why, she says her motto is "Do all the good you can. By all the means you can. In all the ways you can. In all the places you can. At all the times you can. To all the people you can. As long as ever you can." Leah's attitudes and behaviors are most consistent with which stage of moral development? a. Subconventional b. Preconventional c. Conventional d. Postconventional e. Supraconventional

d. postconventional

38. Which of the following best illustrates the preconventional stage of moral development? a. Everybody else is doing it, so it must be okay. b. What would my boss think if I did this? c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. How would I feel if my decision was on the front page of the paper?

d. what am i going to get from making this decision

48. The concept of _____ refers to following organizational policies and practices that both enhance the economic success of a company and advance the economic and social conditions of the communities in which the company operates. a. greenwashing b. conservation c. sustainability d. protectionism e. conscious capitalism

e. conscious capitalism

41. Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources? a. Preservation b. Conservation c. Environmentalism d. Protectionism e. Sustainability

e. sustainability

47. Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part is called ______. a. informing b. turning c. acknowledgment d. proffering e. whistle-blowing

e. whistle-blowing