BA 3308 final

What is Corporate Social Responsibility (CSR)?

- The practical application of business ethics by the firm and a wider commitment to building a better society.

Which of the following is not a side-effect of being the victim of workplace bullying?

. Increased productivity

Which of the following describes a dual relationship?

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

Which of the following describes the categorical imperative?

Act as if the maximum of thy action were to become thy will a universal law of nature

There has been a tremendous amount of business abroad and locally for your equipment because of the political upheavals over the last decade. As a result, your manufacturing units have reported that given demand they will not be able to supply enough parts and forecast a 30% shortage. While discussing options, one of your staff suggests charging more than the list price. "We charge more than the list price. If customers ask why, we tell them it's because of a shortage of materials. That's why we're being forced to charge more." The other option is to stock out, resulting in lost sales. You: Allow stock outs to occur and explain the real reason.SelectCharge the higher prices without telling the real reason.

Allow stock outs to occur and explain the real reason.I

_____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.

Bullying

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

Community.

High levels of competition create a higher probability that firms cut corners because margins are usually low.

Competition

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

According to Starbucks CEO Howard Schultz, what went wrong with the company's aggressive global growth strategy?

Correct. The singular focus on profit harmed product quality and employee morale.

The ethical crisis that is causing the biggest impact in these videos is:

Correct. The threat of oil from a BP accident polluting Gulf of Mexico waters is the biggest ethical crisis in this video. It is what causes all of the other issues, from rising seafood prices to hotel cancellations. The video says nothing about how big the oysters are when harvested - only that the oysters Matthew is harvesting need more time to be full grown.

Which of the following was developed in the 1980's to guide corporate support for ethical conduct by established a method for discussing best practices?

Defense Industry Initiative on Business Ethics and Conduct

Kant's categorical imperative and the Golden Rule are examples of which moral philosophy?

Deontology

The _____ states that economic and social equalities should be arranged to provide the most benefit to the least-advantaged members of society

Difference Principle

The ____ was called "a sweeping overhaul of the financial regulatory system... on a scale not seen since the reforms that followed the great depression.

Dodd-Frank Wall Street Reform and Consumer Protection Act

A new company has started to become very competitive in your geographic areas. The first step they took was to slash prices. The second was stealing some of your best sales and manufacturing personnel. As a result, they have been able to go down the learning curve a lot faster, thus increasing their overall revenue. In a meeting with some of your people, the idea is brought up that you could increase the competition's costs by tying them up through litigation and state administrative action. Some local government officials owe you favors because your company has made campaign contributions in the past. Some other sources tell you the new company has over extended themselves, meaning their debt/equity ratio is very high. They probably couldn't survive a protracted legal battle or some legislation that's been designed to negatively impact their bottom line and not yours. Many more suggestions are brought up, but the first one is the only one that has a chance of success. You: Don't call in favors from politicians.SelectCall in favors from politicians.Don't call in favors from politicians.Item 1

Don't call in favors from politicians

Sustainable design has been mainstream for many years.

False

Using recycled materials is costly not only for designers but also for consumers.

False

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

Federal Sentencing Guidelines for Organizations

Research shows that in many aspect there are no differences between men and women, but when differences are found, women are generally more ethical than men. Women seem to be more sensitive to ethical scenarios and less tolerant of unethical actions. Females were also found to be more likely to report fraudulent intentions on financial reporting.

Gender

have been found to decrease unethical practices and increase positive work behavior.

Good personal values

The specific steps for implementing the stakeholder perspective do not include which of the following?

Identifying and gaining government feedback.

___ is an important element of virtue and means being whole, sound, and in unimpaired condition.

Integrity

Why do critics argue that high compensation for boards of directors is a bad thing?

It could cause conflicts of interest between the directors and the organization.

Which program recognizes sustainable building practices and strategies?

LEED

____are person-specific, whereas _______ are based on decisions made by groups or when carrying out tasks to meet business objectives

Moral philosophies; business ethics

An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg's stages of development?

Mutual interpersonal expectations, relationships, and conformity (3rd stage)

External and internal rewards relate to which part of the ethical decision-making framework?

Opportunity

What will happen to a firm found to be in violation if the company had proactively tried to prevent misconduct from occurring?

Penalties or fines would be reduced.

The situation that comes to you seems to be more frequent. An area sales manager wants you to sign off on a potential sale for ABCO. ABCO's debt/equity ratio is very bad and does not conform to company regulations; however, you are the one who wrote them up several years ago. Some in the company feel (you've heard rumors) that you are not quite up with the times relative to changing industry parameters. For example, several very good sales staff have left in the past year because of some of your regulations being too provincial for the global marketplace that is emerging. As you review ABCO's credit report you find many danger signals; however, the sale is relatively large ($45 million) and the company has been in a sales slump. If you ok this sale it will signal an end to your standards, but if you don't and ABCO goes with another company and pays off their debt, you will have made a gross error and everyone in the company will know it. You:

Reject the sale

have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.

Relativists

Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?

Sarbanes-Oxley Act.

Milton Friedman

Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief?

Stipulates acts are morally right or acceptable, if they produce some desired result, such as realization of self-interest or utility.

Teleology

Which of the following is not a provision of the Sarbanes-Oxley Act?

The Sarbanes-Oxley Act allows accountants from offering a broad range of consulting services to publicly traded companies that they audit.

Title VII of the Civil Rights Act of 1964.

The most important federal statute prohibiting employment discrimination against members of a protected class is:

As designers become more adept at using recycled materials in their products, their products have become more sophisticated.

True

Products made with reclaimed materials are becoming less of a novelty.

True

The environmental and financial struggles of the past decade have led to the increased use of waste materials in design.

True

A management system that focuses on all the elements that contribute to organizational performance and success, including financial, customer, market, and internal processes is defined as the _____.

a. Balanced Scorecard

Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members?

a. International Monetary Fund

Which of the following best describes an ethics audit?

a. It is a major component of an ethics program.

Employee turnover is a useful indicator for assessing employee issues.

a. True

Organizational culture emerges whether or not there is effective leadership.

a. True

WalMart's annual revenues are greater than the GDPs of most of the countries in the world.

a. True

With regards to benefits of ethical leadership, which statement is incorrect?

a. Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity.

Which of the following provides legally binding ground rules for international commerce and trade policy?

a. World Trade Organization

Which of the following is not a category of communication?

a. coercive communication

The Better Business Bureau's International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit?

a. companies with fewer resources

Global warming _____.

a. is associated with the ozone layer

When managers overlook or stifle the importance of core values in their business decisions it is referred to in the chapter as _____.

a. normative myopia

Both ethics auditing and financial auditing employ _____.

a. objective reporting

When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called _____.

a. risk compartmentalization

The process of assessing and reporting on a business's performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders is called a _____.

a. social audit

In this clip, Starbucks CEO Howard Schultz demonstrates ethical leadership by:

a.focusing on product quality and affordability. Correct. In this clip, Starbucks CEO Howard Schultz demonstrates ethical leadership by focusing on product quality and affordability.

Suppose that Matthew set up a system to measure the performance of his company. He investigates any process variations that cause him to miss his goals, and he tries to manage those variations so he eliminates defects. When Mr. Fisherman looks for process variations, he is measuring:

a.nonfinancial ethical performance. Correct. Looking at the work process is an example of studying non-financial ethical performance.

Howard Shultz's childhood experience with his injured father taught him to:

a.subordinate short-term economic interests of a firm to core needs and interests of other stakeholders. Correct. Howard Shultz's childhood experience with his injured father taught him to subordinate short-term economic interests of a firm to core needs and interests of other stakeholders.

Reciprocity

an interchange of giving and receiving in social relationships. Occurs when an action that has an effect upon another is reciprocated with an action that has an approximately equal effect upon the other.

Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word.

auditing

Many managers are reluctant to engage in this step of the RADAR model because they fear doing so will uncover questionable conduct that could put the firm in an unfavorable light.

b. Detect

What is a major role of the International Monetary Fund (IMF)?

b. It makes short-term loans to member countries that have deficits and provides foreign currencies for its members.

Because genetically modified seeds are _______, farmers cannot keep any of the seed themselves but must purchase seeds each year from companies such as Monsanto.

b. patented

Acid rain, waste management, urban sprawl, and deforestation are all environmental issues related to land.

b. False

Alternative energy sources have significantly increased the carbon footprint of communities, cities, and even countries.

b. False

Behavioral economics assumes that humans act independently on the basis of full and relevant information. ​

b. False

Companies that experience ethical misconduct disasters almost never recover from them.

b. False

Environmental advocates ensure that shoppers are adequately informed about the environmental impact of the products they buy.

b. False

Ethical leadership is possible without effective communication.

b. False

Having the results of an ethics audit verified by an independent party is the second step in the ethics-auditing process.​

b. False

Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole.

b. False

Paralanguage includes gestures, facial expressions, proximity, time, and dress.

b. False

___________ involves misleading a consumer into thinking that a product or service is more environmentally friendly than it really is. It can range from making environmental claims that are required by law and are therefore irrelevant (CFC-free) to puffery, or exaggerating environmental claims, to fraud.

b. Greenwashing

One attempt at addressing global warming was _______, created in 1997. It was an international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs.

b. The Kyoto Protocol

Which type of leader inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate? This type of leader is considered to be the most effective.

b. The authoritative leader

_____ is one of the biggest contributors to illnesses in developing countries.

b. Water pollution

Of the following statements, which is correct

b. When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping.

Ethical leaders need both knowledge and ___________ to make the right decisions.

b. experience

Sustainability _____.

b. falls into the social responsibility domain of maximizing positive and minimizing negative impacts on stakeholders

The ability or authority to guide and direct others toward a goal is called _____.

b. leadership

Which of the following items do NOT have a strong impact on whether an ethics program is successful?

b. the level of employee compensation

How members of a society respond to uncertainty or ambiguity is referred to as _____.

b. uncertainty avoidance

Donation of computer equipment to schools by Toshiba would be associated with responsibilities.

b. voluntary

The statement in this clip that reveals the most about Howard Schultz's moral management is:

b."We are in the people business serving coffee" Correct. The statement in this clip that reveals the most about Howard Schultz's moral management is: "We are in the people business serving coffee".

Which issue in global ethics has created a controversy at Chiquita Brands International?

b.Bribery and questionable payments Correct. Bribery and questionable payments have created a controversy at Chiquita Brands International.

In what way does Howard Schultz's description of the Starbucks coffee shop demonstrate ethical leadership?

b.It focuses on people Correct. Howard Schultz's description of the Starbucks coffee shop demonstrates ethical leadership because it focuses on people.

which of the following are no typically secondary stakeholder

c. Customers

_____________ occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company.

c. Leader-follower congruence

Which of the following is not considered a significant other group in the workplace?

c. Spouses

Companies such as Coca-Cola, Hewlett-Packard, and Walmart support a globally based resource system called __________, which tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools.

c. business for social responsibility

A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd-Frank Act is to

c. encourage employees to report misconduct.

Sustainable development _____.

c. has become a top concern for many businesses as it involves meeting the needs of the present without compromising the ability of future generations to meet their own needs

Formal controls _____.

c. includes input controls such as proper selection of employees, effective ethics training, and strong structural systems (including communication systems)

The most controversial form of alternative energy is _____.

c. nuclear power

The power inequality between superiors and subordinates is referred to as _____.

c. power distance dimension

The unconscious reference to one's own cultural values, experiences, and knowledge is called _____.

c. the self-reference criterion

With regards to leadership styles that influence ethical decisions, the challenge for leaders is _______________________, which is essential if organizational leaders are to steer their companies toward success.

c. to gain trust and commitment of organizational members

Which of the following responses to the economic downturn shows Howard Schultz's passion to do right?

c.He increased employee health benefits despite the economic cost to the company Correct. Howard increased employee health benefits despite the economic cost to the company, which demonstrates his passion to do right.

In this clip, Starbucks and CEO Howard Schultz addresses the needs and interests of the following stakeholder group:

c.customers. Correct. In this clip, Starbucks and CEO Howard Schultz addresses the needs and interests of customers.

Leaders with a(n) _____ conflict management style desire to meet the needs of stakeholders and strongly adhere to organizational values and principles.

d. collaborating

A ___________ business attempts to avoid dealing with environmental issues and hopes nothing bad happens or no one ever finds out about an environmental accident or abuse.

d. low-commitment

Which is not a benefit of a firm "going green"?

d. Firms can focus more upon their own efforts as a distinct unit rather than on the entire supply chain

_____________ is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse.

d. Recycling

Which of the following is a means of measuring process variations that cause defects considered as unacceptable deviations from the mean or target?

d. Six Sigma

___________ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.

d. Sustainability

As defined within the chapter, global common values _____.

d. are all derived from the major religions

The strategic importance of ethics auditing includes all of the following EXCEPT _____.

d. avoidance of fines in case of an infraction

Alternative sources of energy include all of the following EXCEPT _____.

d. gas power

Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants?

d. rational economics

All of the following are sustainable business practices that show social commitment EXCEPT _____.

d. reducing alternative energy sources

An integrity-based approach _____.

d. usually have chief officers, human resource managers, and board member committees involved with the ethics and compliance program

Howard Schultz responded to the financial crisis by:

d.All of these options Correct. Howard Schultz responded to the financial crisis by reversing the company's rapid growth strategy, ramping up employee health benefits, and returning as CEO.

To recognize and respond to negative consequences of Starbucks' rapid growth, CEO Howard Shultz needed:

d.Ethical decision making skills Correct. To recognize and respond to negative consequences of Starbucks' rapid growth, CEO Howard Shultz needed ethical decision making skills.

Chiquita Brands International is a multinational corporation because:

d.The company operates business units in Colombia and many other nations around the world Correct. Chiquita Brands International is a multinational corporation because the company operates business units in Colombia and many other nations around the world.

Which of the following is not a step in the ethics auditing process?

e. Report the results to the U.S. Sentencing Commission.

Why do certain countries view bribery as ethical? ​

e. ​They see these bribes as "favors" of minimal value.

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

e. Global Compact

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's TheJungle, was the first consumer protection legislation?

e. Pure Food and Drug Act of 1906

The measuring of social, financial, and environmental factors (or people, places, and planet) that recognizes business has a responsibility to positively influence a variety of stakeholders, including customers, employees, shareholders, community, and the natural environment is defined as _____.

e. Triple Bottom Line

Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach.

e. compliance; integrity

When morality varies from one culture to another and that "right" and "wrong" are defined differently is referred to as _____.

e. cultural relativism

Which is NOT a criticism of MNCs _____.

e. exploitation of labor markets of home countries

What is one of the greatest organizational benefits of conducting an ethics audit?

e. improved relationships with stakeholders who desire transparency

Codes, rules, and compliance are essential in organizations. However, an organization built on to develop a high integrity corporate culture

e. informal relationships

Employees who believe they control the events in their lives by their own effort and skill have aNo

e. internal locus of control.

8. A stakeholder group that is absolutely necessary for a firm's survival is defined as

e. primary.

An ethics audit is a _____.

e. systematic evaluation of an organization's ethics program and/or performance to determine its effectiveness

Which of the following is not part of the framework for an ethics audit?

e. verify the results yourself or by a coworker

Employees' perceptions of their firm as having an ethical climate leads to

enhanced outcomes.

Conflict management styles include all of the following EXCEPT _____.

guarding

One of the major ethical issues President Obama's administration focused on was

health care and consumer protection

Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation

is excessively complex and financially burdensome.

The purpose of a stakeholder orientation is to

maximize positive outcomes that meet stakeholder needs.

trade off betwen equity and efficiency

optimization

This type of leader is characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoyment in flouting the rules.

psychopathic

All of the following represent steps in the RADAR model EXCEPT _____.

realize

Creating a perception or belief by words that intentionally deceives someone is __

related to lying by commission

Many people wrongly assume that a company will be ethical if it

simply hires ethical employees

normative approach

stakeholder theory: approach which identifies ethical guidelines that dictate how firms ought to treat stakeholders. Principles and values provide direction.

Mandated boundaries of conduct are imposed

the legal system.

When unethical acts are discovered in a firm, in most instances

there was knowing cooperation or complicity from within the company

Which moral philosophy valuates the morality of an action on the basis of its consequenses for everyone affected (seeks the greatest good for the greatest number).

utilitarianism