Mgt 3013 Questions Ch03

Ch03Student: ___________________________________________________________________________

1. According to public opinion polls, just more than half of American respondents don't trust business. True False

2. Ethics is the system of rules that governs the ordering of values.

True False 3. Most people have unconscious biases that favor themselves and their group.

True False 4. Ethical issues arise in everyone's daily lives where individual responses are dictated by laws enacted by

congress. True False

5. Egoism is a preferred ethical stance from a societal perspective, compared to utilitarianism.

True False 6. Utilitarianism defines acceptable behaviors as that which maximizes consequences for the individual.

True False 7. Relativism defines ethical behavior based on the opinions and behavior of other people.

True False 8. People in the conventional stage of Kohlberg's model of cognitive moral development conform to the

expectations of ethical behavior held by groups or institutions such as society, family or peers. True False

9. From reading the text information on business ethics, it is clear that business needs to improve their

efforts to be ethical. True False

10. The Sarbanes-Oxley Act, passed in 2002, established strict marketing rules to improve investor

confidence. True False

11. Excessive emphasis on long-term revenues over shorter-term considerations is one of the factors that is

conducive to unethical behavior. True False

12. An ethical leader is one who is both a moral person and a moral manager influencing others to behave

ethically. True False

13. An integrity-based ethics program instills in people a personal responsibility for ethical behavior.

True False 14. Moral awareness means realizing an issue has ethical implications.

True False 15. Whistleblowing is an easy thing for employees to do, taking little courage.

True False 16. The economic responsibility of a business includes satisfying its obligations to investors.

True False

17. A transcendent education involves balancing self-interest with responsibility to others. True False

18. Milton Friedman emphasized that under no circumstances could practices such as sponsoring a local

charity event be practiced without violating the profit motive. True False

19. Business should look at environmental issues as a no-win situation: either you help the environment and

hurt your business, or else you help your business at a cost to the environment. True False

20. A corporation can avoid involving itself with environmental issues if it so chooses since there are few

environmental risks associated with the creation and distribution of products. True False

21. Ecocentric management centers around practices that maximize current economic growth, without regard

to the potential harms to future generations. True False

22. Life-cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water and

land. True False

23. Which of the following statements about corporate behavior is TRUE regarding employee behavior?

A. When corporations behave badly, only the top executives suffer.B. When corporations behave badly, only the rank-and-file employees suffer.C.

When corporations behave badly, it's often not the top executives but rank-and-file employees who suffer most.

D.

When corporations behave badly, it is usually not the problem of top executive or rank-and-file employees.

E. There is no evidence that corporations today ever behave badly. 24. A system of rules that governs the ordering of values is referred to as

A. prioritization.B. ethics.C. corporate legitimacy.D. justice.E. legal system.

25. Honesty, caring, loyalty, fairness and integrity are all examples of

A. ethics.B. citizenship.C. values.D. self focus.E. excellence.

26. A situation, problem or opportunity in which an individual must choose among several actions that must

be evaluated as morally right or wrong is called A. ethical standards.B. ethical issue.C. business ethics.D. personal issue.E. moral rights.

27. Susan has the opportunity to either go along with her coworkers and participate in filling out inaccurate time records OR tell her manager what is happening. This is an example of A. a moral rights issue.B. an ethical issue.C. a time when Susan should ignore the problem.D. a situation that is not a problem.E. None of the above is correct.

28. The moral principles and standards that guide behavior in the world of business are called

A. business principles.B. business philosophy.C. business development.D. business ethics.E. organizational politics.

29. Principles, rules and values people use in deciding what is right and wrong are called

A. business ethics.B. business responsibility.C. moral philosophy.D. business philosophy.E. None of the above.

30. ______________ is the ethical system stating that all people should uphold certain values that society

needs, in order to function. A. Moral philosophyB. Business ethicsC. UniversalismD. Caux principlesE. Utilitarianism

31. If Leilani is using her principles and values, like honesty, fairness and cooperation, in her daily life to

determine what she thinks is right, it refers to her A. moral philosophy.B. carrying capacity.C. universalism.D. ecocentric philosophy.E. egoism.

32. The Caux Principles are based on two ethical ideals. They are

A. right and wrong.B. kyosei and fairness.C. kyosei and respect.D. kyosei and human dignity.E. self fulfillment and happiness.

33. Markus worked last summer as a receptionist in a lawyer's office. During a discussion prompted by the

ethics chapter in your text, he commented that he was asked to tell callers that the lawyer was in court when in fact the lawyer was playing golf! He eventually quit the job because he couldn't force himself to lie to people. Markus appeared to be following the ethical system referred to as A. egoism.B. rule utilitarianism.C. the Taylor Principles.D. kyosei.E. universalism.

34. Which ethical system would support the premise that people should hold some values as always appropriate? A. UtilitarianismB. EgoismC. Rule utilitarianismD. UniversalismE. Act utilitarianism

35. Which of the following is the ethical system that can be thought of as self-interested behavior that can

still benefit all of society, in a fashion similar to Adam Smith's notion of the ‘invisible hand' in business? A. UtilitarianismB. UniversalismC. EgoismD. RelativismE. Volunteerism

36. ___________ considers acceptable behavior as that which maximizes benefits for the individual.

A. EgoismB. DeontologyC. RelativismD. UniversalismE. None of above

37. Utilitarianism states that

A. some values must always be upheld, regardless of the consequences.B. societal rules or customs should be used to order values.C. society will be enhanced if we all take care of ourselves and don't harm others.D. individuals might choose between conflicting values by tallying the final results of the various acts.E. seeking the greatest good for the greatest number of people will lead to an ethical act.

38. ____________ bases ethical behavior on the opinions and behaviors of relevant other people.

A. EgoismB. UtilitarianismC. RelativismD. SociologyE. None of above

39. Susan typically makes a decision about what she will or won't do based on what her friends think she

should do. Susan is using which ethical system? A. EgoismB. UtilitarianismC. RelativismD. UniversalismE. None of the above

40. The text cites a study which found that Russian businesspeople were more likely to make personal

payments to government officials in charge of awarding contracts than their US counterparts. This difference in standards of acceptable behavior between cultures is acknowledged in which ethical system? A. RelativismB. UtilitarianismC. EgoismD. UniversalismE. None of the above

41. __________ acknowledges the existence of different ethical viewpoints and uses norms as guidelines for acceptable behavior. A. Virtue ethicsB. RelativismC. UniversalismD. UtilitarianismE. Egoism

42. Kohlberg's model of cognitive moral development is associated most closely with which ethical system?

A. Virtue ethicsB. RelativismC. UniversalismD. UtilitarianismE. Egoism

43. People in Kohlberg's ____________ stage make decisions based on concrete rewards and punishments

and immediate self-interest. A. conventionalB. principledC. preconventionalD. deontologyE. none of the above

44. People in Kohlberg's ____________ stage take a broader perspective in which they see beyond authority,

laws and norms and follow their self-chosen ethical principles. A. conventionalB. principledC. preconventionalD. deontologyE. none of above

45. Savaya conforms to the expectations of ethical behavior held by her parents and her church. She appears

to be at which stage of cognitive moral development according to Kohlberg? A. UtilitarianB. PrincipledC. PreconventionalD. ConventionalE. Universalism

46. At what level of moral judgment would Kohlberg describe Julio, if he makes all his decisions in order to

keep receiving his allowance or to avoid getting grounded by his parents? A. UtilitarianB. PrincipledC. PreconventionalD. ConventionalE. Universalism

47. __________ classifies people into categories based on their level of moral judgment.

A. EgoismB. DeontologyC. Kohlberg's model of cognitive moral developmentD. RelativismE. Teleology

48. __________ is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right. A. Business ethicsB. Virtue ethicsC. RelativismD. Code of responsibilityE. Code of ethics

49. According to the text, most business leaders believe they

A. are ethical disaster zones.B. uphold ethical standards in business practices.C. don't have to worry about ethics if their employees worry about it.D. fail in upholding ethical standards in business practices.E. have superior ethical standards than their employees.

50. Which of the following statements is true regarding the Sarbanes-Oxley Act?

A. It was passed in 1992.B. It established strict marketing rules.C. It was written in response to a series of corporate scandals.D. It was intended to improve and maintain consumer confidence.E. None of the above are correct

51. Which of the following is described as a current ethical issue in the text?

A. CEO payB. SweatshopsC. Religion at workD. Commercialism in schoolsE. All of the above

52. The __________ of an organization refers to the processes by which decisions are evaluated and made on

the basis of right and wrong. A. deontologyB. ethical climateC. ethics codesD. legal responsibilitiesE. voluntary responsibilities

53. According to the text, General Electric's top executives have demonstrated a commitment to promoting

high levels of integrity without sacrificing the company's well-known commitment to business results. The measures taken by GE, including global standards for behavior and disciplinary action for violations, help to maintain a positive A. moral environment.B. ethical environment.C. ethics code.D. legal responsibility.E. ethical climate.

54. Which of the following helps prevent a business climate conducive to potentially unethical behavior?

A. Excessive emphasis on short-term revenuesB. Failure to establish a written code of ethicsC. A desire for "quick fix" solutionsD. Consideration of ethics as solely a legal issue or a public relations toolE. Clear procedures for handling ethical problems

55. Questions to consider for an understanding of your organization's ethics climate include which of the following? A. What do people think is required to succeed?B. Do people think that ethical people "finish last" and that "the bad guys" win?C. Do people think that the company rewards ethical behavior?D. Do people believe that unethical behavior won't be tolerated?E. all of the above

56. One who is both a moral person and a moral manager influencing others to behave ethically would be

referred to as a(n) A. ethical leaderB. ethics chairpersonC. ethical guideD. transitional leaderE. expert witness

57. Which of the following statements regarding corporate codes of ethics is TRUE?

A. The code of ethics provision of the Sarbanes-Oxley Act has been ignored by most public companies.B. Ethical statements may be nothing more than public relations tools.C.

Ethical codes focus only on employee conduct and avoid subjects such as the environment, technology and political activity.

D. Implemented codes usually have little impact on ethical behavior.E. Legal departments are not involved in the creation of these codes.

58. Which of the following is advised by the text for constructing an ethics code?

A. Cover as many potential issues as possible to provide maximum clarity.B. Make it "catchy"—better something "clever" than something "important".C. Involve only the legal department and top executives in writing the statement.D. Explain away potential conflicts between reality and the language used in the code with humor.E. Focus on relatable, real-life situations.

59. Johnson & Johnson's ethics code has been widely recognized because

A. the code focuses only on employee behavior.B. it does not mention stockholders.C. it is effective; J&J consistently receives high rankings for community and social responsibility.D. employees see little relation between it and the realities at the firm.E. the statement uses humor to make light of the potential issues.

60. Many corporate ethics programs are not comprehensive. Which of the following is most commonly

included? A. An ethics codeB. Evaluation of ethical conductC. Channels for reporting violationsD. Ethics trainingE. Discipline for violations

61. An ethics program that is designed by lawyers to detect, prevent and punish legal violations is called a(n)

_________ ethics program. A. integrity-basedB. compliance-basedC. competency-basedD. legally-basedE. responsibility-based

62. Compliance-based ethics programs are typically designed by A. lawyers.B. employees.C. top executives.D. stockholders/owners.E. focus groups of customers.

63. Compliance-based ethics programs have been criticized because they merely ensure

A. resistance to social responsibility.B. moral mediocrity.C. discretionary social responsibility.D. proactive social responsibility.E. a moral commitment to ethical conduct.

64. An ethics program that is designed to instill in people a personal responsibility for ethical behavior is

called a(n) _________ ethics program. A. integrity-basedB. compliance-basedC. competency-basedD. legally-basedE. responsibility-based

65. According to the text, an Americans with Disabilities Act program that goes beyond modifying the

physical environment to accommodate employees with disabilities and also trains people to understand and perhaps change attitudes toward people with disabilities would be classified as a(n) ______________ ethics program. A. competency-basedB. legally-basedC. responsibility-basedD. integrity-basedE. compliance-based

66. Integrity-based ethics programs utilize

A. stated societal rules and values.B. corporate social responsiveness.C. a set of guiding principles.D. monitoring and punishment.E. top-level development.

67. Programs tend to be better integrated into operations, thinking and behavior when

A. every employee has signed the code of ethics.B. top management has more personal commitment to responsible ethical behavior.C. employees have seen top managers punished for their wrongdoings.D. managers use punishment to motivate employees to "be good".E. managers use embarrassment to prevent bad behavior.

68. Knowing what actions are morally defensible is referred to as

A. moral awareness.B. moral judgment.C. moral character.D. moral certainty.E. moral actionability.

69. Jamila is considering a layoff of several of employees in her division. She has realized that there are ramifications for her employees as well as the shareholders. This is known as A. moral certainty.B. moral actionability.C. moral awareness.D. moral judgment.E. moral character.

70. The strength and persistence to act in accordance with your ethics despite the challenges is known as

A. moral certainty.B. moral awareness.C. moral judgment.D. moral character.E. moral actionability.

71. John Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision.

This thought process is based on the A. veil of ethics.B. veil of understanding.C. veil of ignorance.D. ethical certainty.E. ethical ignorance.

72. The process for ethical decision making begins with

A. defining the complete moral problem.B. determining the legal requirements.C. understanding all moral standards and recognizing all moral impacts.D. proposing a moral solution.E. evaluating your solution's success.

73. The ethical decision making process, ‘recognize all moral impacts' includes which of the following?

A. Determining the economic outcomesB. Considering the legal requirementsC. Evaluating the ethical dutiesD. Determining benefits and harms of various alternativesE. Determining the potential media coverage

74. Behaving ethically requires not just moral awareness and moral judgment, but also the _________ to take

actions consistent with your ethical decisions. A. abilityB. enthusiasmC. desireD. courageE. instruction

75. Level 1 business costs of ethical failures, those that are less damaging but get more executive attention,

include A. government fines and penalties.B. cost of remedial education.C. cost of corrective action.D. loss of reputation.E. employee turnover.

76. Which of the following is a Level 3 cost of ethical failure, the more damaging type of costs which get less executive attention? A. Loss of reputationB. Administrative and audit costsC. Costs of remedial educationD. Costs of corrective actionE. Costs of government oversight

77. Telling others, inside or outside the organization, of wrongdoing is called

A. ethical shadowing.B. whistleblowing.C. egoism.D. storytelling.E. ethical interference.

78. McDonalds has changed the packaging of their sandwiches so that less waste is produced. They

additionally use recycled paper to bag their products. McDonalds states that they are doing these types of things in order to make the earth a "nicer place to eat." From this information, we can conclude that McDonalds believes in A. deregulation.B. corporate social responsiveness.C. maximizing customer actualization.D. corporate social responsibility.E. corporate wealth enhancement.

79. The ___________ responsibilities of business are to produce goods and service that society wants at a

price that perpetuates the business and satisfies its obligations to investors. A. economicB. legalC. voluntaryD. ethicalE. primary

80. Corporate social responsibility refers to

A. taking an active role in training employees to be ethical.B. the obligation toward society assumed by business.C. following the laws that govern the industry in which a company operates.D. encouraging recycling efforts within the organization's buildings.E. maximizing shareholder wealth.

81. To obey local, state, federal and relevant international laws defines ________ responsibility.

A. economicB. legalC. corporate socialD. philanthropicE. ethical

82. According to the text, pork producer Smithfield Foods took on which of the responsibilities of business

by discontinuing the practice of confining sows in gestation crates during pregnancy, conforming to external expectations, though they were not legally required to do so? A. EconomicB. LegalC. VoluntaryD. EthicalE. Secondary

83. All About U (AAU) Salon believes in and engages in meeting societal expectations whether or not written as law, and voluntarily uses earth-friendly products. AAU can be described as operating at which level of the pyramid of corporate social responsibility? A. PreconventionalB. ConventionalC. EconomicD. EthicalE. Legal

84. Which of the following is the "highest" level of the pyramid of global corporate social responsibility

and performance in Figure 3.3, which includes behaviors and activities that society finds desirable and that the values of the business support, such as supporting community projects and making charitable contributions? A. Economic responsibilityB. Legal responsibilityC. Ethical responsibilityD. Philanthropic responsibilityE. Financial responsibility

85. Which of the following is the "lowest" level of the pyramid of global corporate social responsibility and

performance, whose goal is to ‘be profitable'? A. Economic responsibilityB. Legal responsibilityC. Ethical responsibilityD. Philanthropic responsibilityE. Financial responsibility

86. The order of the levels in the pyramid of global corporate social responsibility and performance are (from

bottom to top): A. economic, legal, philanthropic, ethicalB. ethical, economic, legal, philanthropicC. economic, legal, ethical, philanthropicD. legal, economic, ethical, philanthropicE. philanthropic, economic, legal, ethical

87. Office Depot gives a portion of their sales on school supplies to the customer's designated school. This

donation to a community organization is an example of A. economic responsibility.B. legal responsibility.C. ethical responsibility.D. philanthropic responsibility.E. secondary responsibility.

88. The goal of providing an education that teaches students to leave a legacy that extends beyond the bottom

line is called a(n) _______________ education. A. ethicalB. fiscalC. transcendentD. completedE. management

89. Which of the following goals of a transcendent education is described as ‘viewing success not merely as

personal gain, but a common victory'? A. EmpathyB. GenerativityC. MutualityD. Civil aspirationE. Intolerance of ineffective humanity

90. Opponents of corporate social responsibility would suggest that A.

organizations ought to be profit-seeking and that when they concentrate on this motive, they will benefit society.

B. organizations' responsibilities are clearly defined by the laws and regulations imposed upon them.C. organizations' responsibilities are to attempt to satisfy all relevant stakeholders' interests.D. an organization's responsibility is to satisfy select stakeholders that express their specific needs.E. an organization's goal is to provide employment, safe working conditions and profit to the owners.

91. Which of the following goals of a transcendent education is described as ‘thinking not just in terms

of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions'? A. EmpathyB. GenerativityC. MutualityD. Intolerance of ineffective humanityE. Civil aspiration

92. Which of the following goals of a transcendent education is described as ‘speaking out against unethical

actions'? A. EmpathyB. GenerativityC. MutualityD. Civil aspirationE. Intolerance of ineffective humanity

93. Which writer said, "The social responsibility of business is to increase profits"?

A. Adam SmithB. Milton FriedmanC. Benjamin FranklinD. Thomas JeffersonE. Milton Berle

94. Who wrote that sympathy is the basis of a civilized society?

A. Adam SmithB. Milton FriedmanC. Benjamin FranklinD. Thomas JeffersonE. Milton Berle

95. General Electric CEO Jeff Immelt used to view environmental rules as a burden and a cost. Now he

sees environmentally friendly technologies as one of the global economy's most significant business opportunities. Why has GE changed its view on the subject? A.

GE is attempting leverage its technologies to solve environmental problems with wind turbines, solar energy cell materials and energy-efficient home appliances.

B. GE has negotiated with the EPA to reduce their risk and liability for its emissions.C. GE no longer creates products that effect the natural environment.D.

GE has found that environmental technologies will not create a competitive advantage for its competitors.

E.

GE executives believe that an era of abundant raw materials, cheap energy, and unconstrained waste disposal will return.

96. __________ has as its goal the creation of sustainable economic development and improvement of

quality of life worldwide for all organizational stakeholders. A. Compliance buildingB. StonewallingC. Ecocentric managementD. Life-cycle analysisE. Egoism

97. Economic growth and development that meets present needs without harming the needs of future generations is known as A. ecocentric management.B. ergonomic management.C. sustainable growth.D. sustainable management.E. risk.

98. The process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product, to

determine the total environmental impact of its production and use is known as A. life-cycle analysis.B. cost-benefit analysis.C. ecocentric management.D. compliance building.E. ergonomic management.

99. Discuss the ethical systems (universalism, egoism, utilitarianism and relativism). Provide an example of

each.

100.Describe Kohlberg's model of cognitive moral development. Give an example for each of the stages.

101.Your text provided many examples of "danger signs" that might be found within an organization that

create a climate which encourages unethical behavior. Describe five of them.

102.Explain John Rawls's thought experiment based on the "veil of ignorance". Use an example to show how

a decision maker can tactically apply this concept to minimize personal bias.

103.Distinguish between the different types of social responsibilities of business using examples. What are the contrasting views to corporate social responsibility?

104.Discuss ecocentric management. How can it be beneficial to organizations?

Scenario A. Use the following information to answer the three questions below the paragraph.Your energy drink corporation faces an ethical question. There has been a problem with your accounting process that has resulted in higher profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why. Sita wants to report the error because she believes is worried about her job should the news get out about a cover-up. Ben wants to report the error because it is the honest thing to do, and he feels that is fundamental to your business and society. After hearing his colleagues' opinions, Ray says he wants to report the error as well because he always wants to "go with the group." 105.Sita is using which ethical system for her decision making?

A. UniversalismB. EgoismC. UtilitarianismD. RelativismE. Conventionalism

106.Ben is using which ethical system for his decision making?


107.Ray is using which ethical system for his decision making?


Scenario B. Use the following information to answer the three questions below the paragraph.You face a question regarding how to handle a defective piece on a scooter that your toy company sold. To tell the customer and issue a recall would cost you a substantial amount of money but if the toy fails, it could lead to serious injury of the child using it. You are choosing between three options presented by colleagues:Option 1: Keeping quiet about the defect.Option 2: Review company policy, toy industry practices and advice from colleagues.Option 3: Disclose the defect and suggest alternatives to eliminate the risk of injury.

108.Option 1 employs which ethical approach? A. EgoismB. UtilitarianismC. RelativismD. Virtue ethicsE. Life-cycle analysis

109.Option 2 employs which ethical approach?

A. EgoismB. UtilitarianismC. RelativismD. Virtue ethicsE. Life-cycle analysis

110.Option 3 employs which ethical approach?

A. EgoismB. UtilitarianismC. RelativismD. Virtue ethicsE. Life-cycle analysis

Scenario C. Use the following information to answer the three questions below the paragraph.Two managers at Minimum Effort, Inc. are discussing the latest e-mail they have received. The email they are reading concerns how decisions are evaluated on the basis of right and wrong at their company. Jimmy Joe's reaction is simply to say: "All this thing needs to say, as far as I'm concerned is if you don't get busted for it, you're innocent. If you do get caught, you pay the price." His friend, Hassan, has a very different idea. His response is: "I believe, however, that every individual should take personal responsibility for their behavior. I would like for our organization to integrate that idea into everything we do here at work." 111.The assessment of how decisions are evaluated in the company refers to the organization's

A. corporate climate.B. ethical climate.C. ethical perspective.D. organizational dynamics.E. corporate code.

112.Jimmy Joe seems to prefer which type of ethics program for the company?

A. Associate-basedB. Compliance-basedC. Integrity-basedD. Systems-basedE. Consensus-based

113.Hassan seems to prefer which type of ethics program for the company?

A. Associate-basedB. Compliance-basedC. Integrity-basedD. Systems-basedE. Consensus-based

Scenario D. Use the following information to answer the three questions below the paragraph.Two executives are discussing possible options to improve profitability for their toy company, Rankin Limited. Shareholders have been unhappy with recent declines in earnings, and stock prices have fallen sharply. Lian has advocated moving toy production offshore to dramatically lower costs and has obtained some samples made in a foreign location. But she is worried that tests show the toys may not meet US standards for lead content. Jerome is concerned about another issue; the business with whom they are negotiating has a history of using child labor, which is not illegal in its nation, and he has heard about angry parent groups getting involved in these issues.

114.Considering the levels of corporate social responsibility, the shareholders' concerns would best be described as Rankin's A. sustainability responsibility.B. ethical responsibility.C. philanthropic responsibility.D. legal responsibility.E. economic responsibility.

115.Considering the levels of corporate social responsibility, Lian's concerns would best be described as

Rankin's A. sustainability responsibility.B. ethical responsibility.C. philanthropic responsibility.D. legal responsibility.E. economic responsibility.

116.Considering the levels of corporate social responsibility, Jerome's concerns would best be described as

Rankin's A. sustainability responsibility.B. ethical responsibility.C. philanthropic responsibility.D. legal responsibility.E. economic responsibility.

Ch03 Key 1.(p. 52)

According to public opinion polls, just more than half of American respondents don't trust business. TRUE

In a survey by public relations firm Edelman, barely more than half of American respondents said they trust business.

AACSB: Ethics

Bateman - Chapter 03 #1Blooms: Comprehension

Learning Objective: 03-01 Describe how different ethical perspectives guide decision making.Level of Difficulty: Medium

Topic: Ethics

2.(p. 52)

Ethics is the system of rules that governs the ordering of values. TRUE

AACSB: Ethics

Bateman - Chapter 03 #2Blooms: Knowledge

Learning Objective: 03-01 Describe how different ethical perspectives guide decision making.Level of Difficulty: Easy

Topic: Ethics

3.(p. 52-53)

Most people have unconscious biases that favor themselves and their group. TRUE

Most people have unconscious biases that favor themselves and their own group. For example, managers often hire people who are like them, think they are immune to conflicts of interest, take more credit than they deserve, and blame others when they deserve some blame themselves.

AACSB: Ethics



Topic: Ethics

4.(p. 54)

Ethical issues arise in everyone's daily lives where individual responses are dictated by laws enacted by congress. FALSE

Ethical issues arise in every facet of life, but moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.

AACSB: Ethics



Topic: Ethics

5.(p. 55)

Egoism is a preferred ethical stance from a societal perspective, compared to utilitarianism. FALSE

Egoism can be defined as "doing the act that promotes the greatest good for oneself" while utilitarianism directly seeks the greatest good for the greatest number of people.

AACSB: Ethics



Topic: Ethics

6.(p. 55)

Utilitarianism defines acceptable behaviors as that which maximizes consequences for the individual. FALSE

AACSB: Ethics



Topic: Ethics

7.(p. 56)

Relativism defines ethical behavior based on the opinions and behavior of other people. TRUE

AACSB: Ethics



Topic: Ethics

8.(p. 56)

People in the conventional stage of Kohlberg's model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family or peers. TRUE

AACSB: Ethics



Topic: Ethics

9.(p. 56)

From reading the text information on business ethics, it is clear that business needs to improve their efforts to be ethical. TRUE

Insider trading, illegal campaign contributions, bribery and kickbacks, famous court cases, and other scandals have created a perception that business leaders use illegal means to gain competitive advantage, increase profits, or improve their personal positions.

AACSB: Ethics


Learning Objective: 03-02 Explain how companies influence their ethics environment.Level of Difficulty: Medium

Topic: Ethics

10.(p. 57)

The Sarbanes-Oxley Act, passed in 2002, established strict marketing rules to improve investor confidence. FALSE

The Sarbanes-Oxley Act that was passed by Congress in 2002 established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.

AACSB: Ethics



Topic: Ethics

11.(p. 59)

Excessive emphasis on long-term revenues over shorter-term considerations is one of the factors that is conducive to unethical behavior. FALSE

Excessive emphasis on short-term revenues over longer-term considerations is one of the danger signs indicative of a climate conducive to unethical behavior:

AACSB: Ethics



Topic: Ethics

12.(p. 60)

An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically. TRUE

AACSB: Ethics


Learning Objective: 03-02 Explain how companies influence their ethics environment.Level of Difficulty: Easy

Topic: Ethics

13.(p. 62)

An integrity-based ethics program instills in people a personal responsibility for ethical behavior. TRUE

AACSB: Ethics



Topic: Ethics

14.(p. 62)

Moral awareness means realizing an issue has ethical implications. TRUE

AACSB: Ethics


Learning Objective: 03-03 Outline a process for making ethical decisions.Level of Difficulty: Easy

Topic: Ethics

15.(p. 64)

Whistleblowing is an easy thing for employees to do, taking little courage. FALSE

Much courage is necessary when deciding, despite the likelihood of being ostracized, treated rudely, or given undesirable assignments, that the only ethical course of action is whistleblowing.

AACSB: Ethics


Learning Objective: 03-03 Outline a process for making ethical decisions.Level of Difficulty: Medium

Topic: Ethics

16.(p. 65)

The economic responsibility of a business includes satisfying its obligations to investors. TRUE

AACSB: Ethics


Learning Objective: 03-04 Summarize the important issues surrounding corporate social responsibility.Level of Difficulty: Easy

Topic: Corporate Social Responsibility

17.(p. 66)

A transcendent education involves balancing self-interest with responsibility to others. TRUE

AACSB: Ethics




18.(p. 66)

Milton Friedman emphasized that under no circumstances could practices such as sponsoring a local charity event be practiced without violating the profit motive. FALSE

Friedman contended that organizations may help improve the quality of life as long as such actions are directed at increasing profits.

AACSB: Ethics


Learning Objective: 03-04 Summarize the important issues surrounding corporate social responsibility.Level of Difficulty: Medium


19.(p. 69)

Business should look at environmental issues as a no-win situation: either you help the environment and hurt your business, or else you help your business at a cost to the environment. FALSE

Today, companies can deliberately incorporate environmental values into competitive strategies and into the design and manufacturing of products. In addition to philosophical reasons, companies "go green" to satisfy consumer demand, react to a competitor's actions, meet requests from customers or suppliers, comply with guidelines, and create a competitive advantage.

AACSB: Ethics


Learning Objective: 03-05 Discuss reasons for businesses growing interest in the natural environment.Level of Difficulty: Medium

Topic: The Natural Environment

20.(p. 69)

A corporation can avoid involving itself with environmental issues if it so chooses since there are few environmental risks associated with the creation and distribution of products. FALSE

The fundamental sources of risk in modern society are the excessive production of hazards and ecologically unsustainable consumption of natural resources. Risk has proliferated through population explosion, industrial pollution, and environmental degradation. The institutions that create environmental and technological risk (corporations and government agencies) also are responsible for controlling and managing the risks.

AACSB: Ethics




21.(p. 69)

Ecocentric management centers around practices that maximize current economic growth, without regard to the potential harms to future generations. FALSE

Ecocentric management has as its goal the creation of sustainable economic development. This sustainable growth meets the organization's present needs without harming the ability of future generations to meet their needs.

AACSB: Ethics


Learning Objective: 03-06 Identify actions managers can take to manage with the environment in mind.Level of Difficulty: Medium


22.(p. 70)

Life-cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water and land. TRUE

Life-cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water and land.

AACSB: Ethics


Learning Objective: 03-06 Identify actions managers can take to manage with the environment in mind.Level of Difficulty: Easy


23.(p. 52)

Which of the following statements about corporate behavior is TRUE regarding employee behavior? A. When corporations behave badly, only the top executives suffer.B. When corporations behave badly, only the rank-and-file employees suffer.C.


D.

When corporations behave badly, it is usually not the problem of top executive or rank-and-file employees.

E. There is no evidence that corporations today ever behave badly.


AACSB: Ethics



Topic: Ethics

24.(p. 52)

A system of rules that governs the ordering of values is referred to as A. prioritization.B. ethics.C. corporate legitimacy.D. justice.E. legal system.

AACSB: Ethics



Topic: Ethics

25.(p. 54)

Honesty, caring, loyalty, fairness and integrity are all examples of A. ethics.B. citizenship.C. values.D. self focus.E. excellence.

Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen.

AACSB: Ethics



Topic: Ethics

26.(p. 54)

A situation, problem or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called A. ethical standards.B. ethical issue.C. business ethics.D. personal issue.E. moral rights.

AACSB: Ethics



Topic: Ethics

27.(p. 54)

Susan has the opportunity to either go along with her coworkers and participate in filling out inaccurate time records OR tell her manager what is happening. This is an example of A. a moral rights issue.B. an ethical issue.C. a time when Susan should ignore the problem.D. a situation that is not a problem.E. None of the above is correct.

Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen.

AACSB: Ethics

Bateman - Chapter 03 #27Blooms: Application

Learning Objective: 03-01 Describe how different ethical perspectives guide decision making.Level of Difficulty: Hard

Topic: Ethics

28.(p. 54)

The moral principles and standards that guide behavior in the world of business are called A. business principles.B. business philosophy.C. business development.D. business ethics.E. organizational politics.

AACSB: Ethics



Topic: Ethics

29.(p. 54)

Principles, rules and values people use in deciding what is right and wrong are called A. business ethics.B. business responsibility.C. moral philosophy.D. business philosophy.E. None of the above.

AACSB: Ethics



Topic: Ethics

30.(p. 54)

______________ is the ethical system stating that all people should uphold certain values that society needs, in order to function. A. Moral philosophyB. Business ethicsC. UniversalismD. Caux principlesE. Utilitarianism

AACSB: Ethics



Topic: Ethics

31.(p. 54)

If Leilani is using her principles and values, like honesty, fairness and cooperation, in her daily life to determine what she thinks is right, it refers to her A. moral philosophy.B. carrying capacity.C. universalism.D. ecocentric philosophy.E. egoism.

Moral philosophy is the combination of one's principles, rules and values used in deciding what is right and wrong.

AACSB: Ethics



Topic: Ethics

32.(p. 54)

The Caux Principles are based on two ethical ideals. They are A. right and wrong.B. kyosei and fairness.C. kyosei and respect.D. kyosei and human dignity.E. self fulfillment and happiness.

AACSB: Ethics



Topic: Ethics

33.(p. 54)

Markus worked last summer as a receptionist in a lawyer's office. During a discussion prompted by the ethics chapter in your text, he commented that he was asked to tell callers that the lawyer was in court when in fact the lawyer was playing golf! He eventually quit the job because he couldn't force himself to lie to people. Markus appeared to be following the ethical system referred to as A. egoism.B. rule utilitarianism.C. the Taylor Principles.D. kyosei.E. universalism.

According to universalism, all people should uphold certain values, such as honesty and other values that society needs to function.

AACSB: Ethics



Topic: Ethics

34.(p. 54)

Which ethical system would support the premise that people should hold some values as always appropriate? A. UtilitarianismB. EgoismC. Rule utilitarianismD. UniversalismE. Act utilitarianism

According to universalism, all people should uphold certain values, such as honesty and other values that society needs to function. Universal values are principles so fundamental to human existence that they are important in all societies.

AACSB: Ethics



Topic: Ethics

35.(p. 55)

Which of the following is the ethical system that can be thought of as self-interested behavior that can still benefit all of society, in a fashion similar to Adam Smith's notion of the ‘invisible hand' in business? A. UtilitarianismB. UniversalismC. EgoismD. RelativismE. Volunteerism

Egoism can be defined as "doing the act that promotes the greatest good for oneself." If everyone follows this system, according to its proponents, the well-being of society as a whole should increase. This notion is similar to Adam Smith's concept of the invisible hand in business.

AACSB: Ethics



Topic: Ethics

36.(p. 55)

___________ considers acceptable behavior as that which maximizes benefits for the individual. A. EgoismB. DeontologyC. RelativismD. UniversalismE. None of above

AACSB: Ethics



Topic: Ethics

37.(p. 55)

Utilitarianism states that A. some values must always be upheld, regardless of the consequences.B. societal rules or customs should be used to order values.C. society will be enhanced if we all take care of ourselves and don't harm others.D. individuals might choose between conflicting values by tallying the final results of the various acts.E. seeking the greatest good for the greatest number of people will lead to an ethical act.

AACSB: Ethics



Topic: Ethics

38.(p. 56)

____________ bases ethical behavior on the opinions and behaviors of relevant other people. A. EgoismB. UtilitarianismC. RelativismD. SociologyE. None of above

AACSB: Ethics



Topic: Ethics

39.(p. 56)

Susan typically makes a decision about what she will or won't do based on what her friends think she should do. Susan is using which ethical system? A. EgoismB. UtilitarianismC. RelativismD. UniversalismE. None of the above

Relativism defines ethical behavior based on the opinions and behaviors of relevant other people.

AACSB: Ethics



Topic: Ethics

40.(p. 56)

The text cites a study which found that Russian businesspeople were more likely to make personal payments to government officials in charge of awarding contracts than their US counterparts. This difference in standards of acceptable behavior between cultures is acknowledged in which ethical system? A. RelativismB. UtilitarianismC. EgoismD. UniversalismE. None of the above

Relativism acknowledges the existence of different ethical viewpoints. For example, norms, or standards of expected and acceptable behavior, vary from one culture to another. A study of Russian versus U.S. managers found that in Russia more than in the United States, businesspeople were likely to make personal payments to government officials in charge of awarding contracts.

AACSB: Ethics



Topic: Ethics

41.(p. 56)

__________ acknowledges the existence of different ethical viewpoints and uses norms as guidelines for acceptable behavior. A. Virtue ethicsB. RelativismC. UniversalismD. UtilitarianismE. Egoism

Relativism acknowledges the existence of different ethical viewpoints. Norms, or standards of expected and acceptable behavior, vary.

AACSB: Ethics



Topic: Ethics

42.(p. 56)

Kohlberg's model of cognitive moral development is associated most closely with which ethical system? A. Virtue ethicsB. RelativismC. UniversalismD. UtilitarianismE. Egoism

According to virtue ethics, moral individuals can transcend rules by applying their personal virtues such as faith, honesty, and integrity. Individuals differ in their moral development, and can be categorized according to Kohlberg's model of cognitive moral development.

AACSB: Ethics



Topic: Ethics

43.(p. 56)

People in Kohlberg's ____________ stage make decisions based on concrete rewards and punishments and immediate self-interest. A. conventionalB. principledC. preconventionalD. deontologyE. none of the above

Kohlberg's model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the preconventional stage make decisions based on concrete rewards and punishments and immediate self-interest.

AACSB: Ethics



Topic: Ethics

44.(p. 56)

People in Kohlberg's ____________ stage take a broader perspective in which they see beyond authority, laws and norms and follow their self-chosen ethical principles. A. conventionalB. principledC. preconventionalD. deontologyE. none of above

Kohlberg's model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the principled stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.

AACSB: Ethics



Topic: Ethics

45.(p. 56)

Savaya conforms to the expectations of ethical behavior held by her parents and her church. She appears to be at which stage of cognitive moral development according to Kohlberg? A. UtilitarianB. PrincipledC. PreconventionalD. ConventionalE. Universalism

Kohlberg's model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the conventional stage conform to the expectations of ethical behavior held by groups or institutions such as society, family, or peers.

AACSB: Ethics



Topic: Ethics

46.(p. 56)

At what level of moral judgment would Kohlberg describe Julio, if he makes all his decisions in order to keep receiving his allowance or to avoid getting grounded by his parents? A. UtilitarianB. PrincipledC. PreconventionalD. ConventionalE. Universalism

Kohlberg's model of cognitive moral development classifies people into categories based on their level of moral judgment. People in the preconventional stage make decisions based on concrete rewards and punishments and immediate self-interest.

AACSB: Ethics



Topic: Ethics

47.(p. 56)

__________ classifies people into categories based on their level of moral judgment. A. EgoismB. DeontologyC. Kohlberg's model of cognitive moral developmentD. RelativismE. Teleology

AACSB: Ethics



Topic: Ethics

48.(p. 56)

__________ is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right. A. Business ethicsB. Virtue ethicsC. RelativismD. Code of responsibilityE. Code of ethics

AACSB: Ethics



Topic: Ethics

49.(p. 57)

According to the text, most business leaders believe they A. are ethical disaster zones.B. uphold ethical standards in business practices.C. don't have to worry about ethics if their employees worry about it.D. fail in upholding ethical standards in business practices.E. have superior ethical standards than their employees.

Most business leaders believe they uphold ethical standards in business practices.

AACSB: Ethics



Topic: Ethics

50.(p. 57)

Which of the following statements is true regarding the Sarbanes-Oxley Act? A. It was passed in 1992.B. It established strict marketing rules.C. It was written in response to a series of corporate scandals.D. It was intended to improve and maintain consumer confidence.E. None of the above are correct

Responding to a series of corporate scandals, Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor confidence. The law requires companies to have more independent board directors, not just company insiders, adhere strictly to accounting rules, and have senior managers personally sign off on financial results.

AACSB: Ethics



Topic: Ethics

51.(p. 57)

Which of the following is described as a current ethical issue in the text? A. CEO payB. SweatshopsC. Religion at workD. Commercialism in schoolsE. All of the above

Many managers and their organizations must deal frequently with ethical dilemmas, and the issues are becoming increasingly complex, such as branding and marketing practices, CEO pay, commercialism in schools, religion at work, sweatshops, and low wages.

AACSB: Ethics



Topic: Ethics

52.(p. 58)

The __________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. A. deontologyB. ethical climateC. ethics codesD. legal responsibilitiesE. voluntary responsibilities

AACSB: Ethics



Topic: Ethics

53.(p. 58)

According to the text, General Electric's top executives have demonstrated a commitment to promoting high levels of integrity without sacrificing the company's well-known commitment to business results. The measures taken by GE, including global standards for behavior and disciplinary action for violations, help to maintain a positive A. moral environment.B. ethical environment.C. ethics code.D. legal responsibility.E. ethical climate.

General Electric's top executives have demonstrated a commitment to promoting high levels of integrity without sacrificing the company's well-known commitment to business results. The measures taken by GE to maintain a positive ethical climate send a powerful message that ethical behavior is truly valued at GE.

AACSB: Ethics



Topic: Ethics

54.(p. 59)

Which of the following helps prevent a business climate conducive to potentially unethical behavior? A. Excessive emphasis on short-term revenuesB. Failure to establish a written code of ethicsC. A desire for "quick fix" solutionsD. Consideration of ethics as solely a legal issue or a public relations toolE. Clear procedures for handling ethical problems

Some danger signs that an organization may be allowing or even encouraging unethical behavior include excessive emphasis on short-term revenues over longer-term considerations, failure to establish a written code of ethics, desire for simple, "quick fix" solutions to ethical problems, unwillingness to take an ethical stand that may impose financial costs, consideration of ethics solely as a legal issue or a public relations tool, lack of clear procedures for handling ethical problems, and responsiveness to the demands of shareholders at the expense of other constituencies.

AACSB: Ethics



Topic: Ethics

55.(p. 59)

Questions to consider for an understanding of your organization's ethics climate include which of the following? A. What do people think is required to succeed?B. Do people think that ethical people "finish last" and that "the bad guys" win?C. Do people think that the company rewards ethical behavior?D. Do people believe that unethical behavior won't be tolerated?E. all of the above

To understand an organization's ethics climate, think about issues from the employees' perspective. What do people think is required to succeed? Do they think that ethical people "finish last" and that the "bad guys win"? Or vice versa, that the company rewards ethical behavior and won't tolerate unethical behavior?

AACSB: Ethics



Topic: Ethics

56.(p. 60)

One who is both a moral person and a moral manager influencing others to behave ethically would be referred to as a(n) A. ethical leaderB. ethics chairpersonC. ethical guideD. transitional leaderE. expert witness

AACSB: Ethics



Topic: Ethics

57.(p. 60)

Which of the following statements regarding corporate codes of ethics is TRUE? A. The code of ethics provision of the Sarbanes-Oxley Act has been ignored by most public

companies.B. Ethical statements may be nothing more than public relations tools.C.

Ethical codes focus only on employee conduct and avoid subjects such as the environment, technology and political activity.

D. Implemented codes usually have little impact on ethical behavior.E. Legal departments are not involved in the creation of these codes.

Often, the codes of ethics required by the Sarbanes-Oxley Act are just for show, but when implemented well they can change a company's ethical climate for the better and truly encourage ethical behavior.

AACSB: Ethics



Topic: Ethics

58.(p. 61)

Which of the following is advised by the text for constructing an ethics code? A. Cover as many potential issues as possible to provide maximum clarity.B. Make it "catchy"—better something "clever" than something "important".C. Involve only the legal department and top executives in writing the statement.D. Explain away potential conflicts between reality and the language used in the code with humor.E. Focus on relatable, real-life situations.

Effective ethics code involve those who have to live with the code in writing it, focus on real-life situations that employees can relate to, keep it short and simple so it is easy to understand and remember, write about values and shared beliefs that are important and that people can really believe in, and set the tone at the top, having executives talk about and live up to the statement.

AACSB: Ethics



Topic: Ethics

59.(p. 61)

Johnson & Johnson's ethics code has been widely recognized because A. the code focuses only on employee behavior.B. it does not mention stockholders.C. it is effective; J&J consistently receives high rankings for community and social responsibility.D. employees see little relation between it and the realities at the firm.E. the statement uses humor to make light of the potential issues.

Johnson & Johnson has one of the most famous ethics codes; it is featured in Table 3.2. J&J consistently receives high rankings for community and social responsibility in Fortune's annual survey of corporate reputations.

AACSB: Ethics



Topic: Ethics

60.(p. 61)

Many corporate ethics programs are not comprehensive. Which of the following is most commonly included? A. An ethics codeB. Evaluation of ethical conductC. Channels for reporting violationsD. Ethics trainingE. Discipline for violations

Although many companies have a code of ethics, far fewer have a comprehensive ethics program that includes training, channels for reporting violations, evaluation of ethical conduct, and discipline for violations.

AACSB: Ethics



Topic: Ethics

61.(p. 62)

An ethics program that is designed by lawyers to detect, prevent and punish legal violations is called a(n) _________ ethics program. A. integrity-basedB. compliance-basedC. competency-basedD. legally-basedE. responsibility-based

AACSB: Ethics



Topic: Ethics

62.(p. 62)

Compliance-based ethics programs are typically designed by A. lawyers.B. employees.C. top executives.D. stockholders/owners.E. focus groups of customers.

AACSB: Ethics



Topic: Ethics

63.(p. 62)

Compliance-based ethics programs have been criticized because they merely ensure A. resistance to social responsibility.B. moral mediocrity.C. discretionary social responsibility.D. proactive social responsibility.E. a moral commitment to ethical conduct.

Compliance-based ethics programs should reduce illegal behavior and help a company stay out of court. But they do not create a moral commitment to ethical conduct; they merely ensure moral mediocrity.

AACSB: Ethics



Topic: Ethics

64.(p. 62)

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) _________ ethics program. A. integrity-basedB. compliance-basedC. competency-basedD. legally-basedE. responsibility-based

AACSB: Ethics



Topic: Ethics

65.(p. 62)

According to the text, an Americans with Disabilities Act program that goes beyond modifying the physical environment to accommodate employees with disabilities and also trains people to understand and perhaps change attitudes toward people with disabilities would be classified as a(n) ______________ ethics program. A. competency-basedB. legally-basedC. responsibility-basedD. integrity-basedE. compliance-based

Mere compliance would involve making the changes necessary to avoid legal problems. Integrity-based programs would go further by training people to understand and perhaps change attitudes toward people with disabilities and sending clear signals that people with disabilities also have valued abilities.

AACSB: Ethics



Topic: Ethics

66.(p. 62)

Integrity-based ethics programs utilize A. stated societal rules and values.B. corporate social responsiveness.C. a set of guiding principles.D. monitoring and punishment.E. top-level development.

With Integrity-based programs, companies and people govern themselves through a set of guiding principles that they embrace.

AACSB: Ethics



Topic: Ethics

67.(p. 62)

Programs tend to be better integrated into operations, thinking and behavior when A. every employee has signed the code of ethics.B. top management has more personal commitment to responsible ethical behavior.C. employees have seen top managers punished for their wrongdoings.D. managers use punishment to motivate employees to "be good".E. managers use embarrassment to prevent bad behavior.

When top management has a personal commitment to responsible ethical behavior, programs tend to be better integrated into operations, thinking, and behavior.

AACSB: Ethics



Topic: Ethics

68.(p. 62)

Knowing what actions are morally defensible is referred to as A. moral awareness.B. moral judgment.C. moral character.D. moral certainty.E. moral actionability.

AACSB: Ethics



Topic: Ethics

69.(p. 62)

Jamila is considering a layoff of several of employees in her division. She has realized that there are ramifications for her employees as well as the shareholders. This is known as A. moral certainty.B. moral actionability.C. moral awareness.D. moral judgment.E. moral character.

Moral awareness begins with considering whether a decision has ramifications that disadvantage employees, the environment, or other stakeholders.

AACSB: Ethics


Learning Objective: 03-03 Outline a process for making ethical decisions.Level of Difficulty: Hard

Topic: Ethics

70.(p. 62)

The strength and persistence to act in accordance with your ethics despite the challenges is known as A. moral certainty.B. moral awareness.C. moral judgment.D. moral character.E. moral actionability.

AACSB: Ethics



Topic: Ethics

71.(p. 62-63)

John Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision. This thought process is based on the A. veil of ethics.B. veil of understanding.C. veil of ignorance.D. ethical certainty.E. ethical ignorance.

The philosopher John Rawls created a thought experiment based on the "veil of ignorance." Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision. A decision maker can tactically apply the veil of ignorance to help minimize personal bias.

AACSB: Ethics



Topic: Ethics

72.(p. 63)

The process for ethical decision making begins with A. defining the complete moral problem.B. determining the legal requirements.C. understanding all moral standards and recognizing all moral impacts.D. proposing a moral solution.E. evaluating your solution's success.

Figure 3.1 illustrates a process for ethical decision making, which starts with understanding all moral standards and recognizing all moral impacts.

AACSB: Ethics



Topic: Ethics

73.(p. 63)

The ethical decision making process, ‘recognize all moral impacts' includes which of the following? A. Determining the economic outcomesB. Considering the legal requirementsC. Evaluating the ethical dutiesD. Determining benefits and harms of various alternativesE. Determining the potential media coverage

Figure 3.1 illustrates a process for ethical decision making, where evaluation of the full scope of the moral problem should recognize the impacts of alternatives: which people do they benefit and harm, which are able to exercise their rights, and whose rights are denied.

AACSB: Ethics



Topic: Ethics

74.(p. 64)

Behaving ethically requires not just moral awareness and moral judgment, but also the _________ to take actions consistent with your ethical decisions. A. abilityB. enthusiasmC. desireD. courageE. instruction

Behaving ethically requires not just moral awareness and moral judgment but also moral character, including the courage to take actions consistent with your ethical decisions.

AACSB: Ethics



Topic: Ethics

75.(p. 64)

Level 1 business costs of ethical failures, those that are less damaging but get more executive attention, include A. government fines and penalties.B. cost of remedial education.C. cost of corrective action.D. loss of reputation.E. employee turnover.

Figure 3.2 illustrates the business costs of ethical failures. Those in level 1 are government fines and penalties.

AACSB: Ethics



Topic: Ethics

76.(p. 64)

Which of the following is a Level 3 cost of ethical failure, the more damaging type of costs which get less executive attention? A. Loss of reputationB. Administrative and audit costsC. Costs of remedial educationD. Costs of corrective actionE. Costs of government oversight

Figure 3.2 illustrates the business costs of ethical failures. Those in level 3 include loss of reputation.

AACSB: Ethics



Topic: Ethics

77.(p. 64)

Telling others, inside or outside the organization, of wrongdoing is called A. ethical shadowing.B. whistleblowing.C. egoism.D. storytelling.E. ethical interference.

AACSB: Ethics



Topic: Ethics

78.(p. 65)

McDonalds has changed the packaging of their sandwiches so that less waste is produced. They additionally use recycled paper to bag their products. McDonalds states that they are doing these types of things in order to make the earth a "nicer place to eat." From this information, we can conclude that McDonalds believes in A. deregulation.B. corporate social responsiveness.C. maximizing customer actualization.D. corporate social responsibility.E. corporate wealth enhancement.

Corporate social responsibility is the obligation toward society assumed by business. A socially responsible business maximizes its positive effects on society and minimizes its negative effects.

AACSB: Ethics


Learning Objective: 03-04 Summarize the important issues surrounding corporate social responsibility.Level of Difficulty: Hard


79.(p. 65)

The ___________ responsibilities of business are to produce goods and service that society wants at a price that perpetuates the business and satisfies its obligations to investors. A. economicB. legalC. voluntaryD. ethicalE. primary

AACSB: Ethics




80.(p. 65)

Corporate social responsibility refers to A. taking an active role in training employees to be ethical.B. the obligation toward society assumed by business.C. following the laws that govern the industry in which a company operates.D. encouraging recycling efforts within the organization's buildings.E. maximizing shareholder wealth.

AACSB: Ethics




81.(p. 65)

To obey local, state, federal and relevant international laws defines ________ responsibility. A. economicB. legalC. corporate socialD. philanthropicE. ethical

AACSB: Ethics




82.(p. 65-66)

According to the text, pork producer Smithfield Foods took on which of the responsibilities of business by discontinuing the practice of confining sows in gestation crates during pregnancy, conforming to external expectations, though they were not legally required to do so? A. EconomicB. LegalC. VoluntaryD. EthicalE. Secondary

Ethical responsibilities include meeting other societal expectations, not written as law. Smithfield took on this level of responsibility when it responded to requests by major customers that it discontinue the practice of using gestation crates to house its sows. Smithfield is not legally required to make the change (except in two states), and the arrangement may not maximize profits, but the company's actions help it maintain good customer relationships and a positive public image.

AACSB: Ethics




83.(p. 65-66)

All About U (AAU) Salon believes in and engages in meeting societal expectations whether or not written as law, and voluntarily uses earth-friendly products. AAU can be described as operating at which level of the pyramid of corporate social responsibility? A. PreconventionalB. ConventionalC. EconomicD. EthicalE. Legal

Ethical responsibilities include meeting other societal expectations, not written as law, and doing what is expected by global stakeholders.

AACSB: Ethics




84.(p. 66)

Which of the following is the "highest" level of the pyramid of global corporate social responsibility and performance in Figure 3.3, which includes behaviors and activities that society finds desirable and that the values of the business support, such as supporting community projects and making charitable contributions? A. Economic responsibilityB. Legal responsibilityC. Ethical responsibilityD. Philanthropic responsibilityE. Financial responsibility

AACSB: Ethics




85.(p. 66)

Which of the following is the "lowest" level of the pyramid of global corporate social responsibility and performance, whose goal is to ‘be profitable'? A. Economic responsibilityB. Legal responsibilityC. Ethical responsibilityD. Philanthropic responsibilityE. Financial responsibility

AACSB: Ethics




86.(p. 66)

The order of the levels in the pyramid of global corporate social responsibility and performance are (from bottom to top): A. economic, legal, philanthropic, ethicalB. ethical, economic, legal, philanthropicC. economic, legal, ethical, philanthropicD. legal, economic, ethical, philanthropicE. philanthropic, economic, legal, ethical

According to Figure 3.3, the levels from bottom to top are economic, legal, ethical, and philanthropic.

AACSB: Ethics




87.(p. 66)

Office Depot gives a portion of their sales on school supplies to the customer's designated school. This donation to a community organization is an example of A. economic responsibility.B. legal responsibility.C. ethical responsibility.D. philanthropic responsibility.E. secondary responsibility.

Philanthropic responsibility are additional behaviors and activities that society finds desirable and that the values of the business support, such as supporting community projects and making charitable contributions.

AACSB: Ethics




88.(p. 66)

The goal of providing an education that teaches students to leave a legacy that extends beyond the bottom line is called a(n) _______________ education. A. ethicalB. fiscalC. transcendentD. completedE. management

AACSB: Ethics




89.(p. 66)

Which of the following goals of a transcendent education is described as ‘viewing success not merely as personal gain, but a common victory'? A. EmpathyB. GenerativityC. MutualityD. Civil aspirationE. Intolerance of ineffective humanity

A transcendent education has five higher goals that balance self-interest with responsibility to others. Mutuality is described as viewing success not merely as personal gain, but a common victory.

AACSB: Ethics




90.(p. 66)

Opponents of corporate social responsibility would suggest that A.

organizations ought to be profit-seeking and that when they concentrate on this motive, they will benefit society.

B. organizations' responsibilities are clearly defined by the laws and regulations imposed upon them.C. organizations' responsibilities are to attempt to satisfy all relevant stakeholders' interests.D. an organization's responsibility is to satisfy select stakeholders that express their specific needs.E. an organization's goal is to provide employment, safe working conditions and profit to the owners.

Economist Milton Friedman contended that the social responsibility of business is to increase profits and that organizations may help improve the quality of life as long as such actions are directed at increasing profits.

AACSB: Ethics




91.(p. 66)

Which of the following goals of a transcendent education is described as ‘thinking not just in terms of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions'? A. EmpathyB. GenerativityC. MutualityD. Intolerance of ineffective humanityE. Civil aspiration

A transcendent education has five higher goals that balance self-interest with responsibility to others. Civil aspiration is described as thinking not just in terms of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions.

AACSB: Ethics




92.(p. 66)

Which of the following goals of a transcendent education is described as ‘speaking out against unethical actions'? A. EmpathyB. GenerativityC. MutualityD. Civil aspirationE. Intolerance of ineffective humanity

A transcendent education has five higher goals that balance self-interest with responsibility to others. Intolerance of ineffective humanity is described as speaking out against unethical actions.

AACSB: Ethics




93.(p. 66)

Which writer said, "The social responsibility of business is to increase profits"? A. Adam SmithB. Milton FriedmanC. Benjamin FranklinD. Thomas JeffersonE. Milton Berle

AACSB: Ethics




94.(p. 66)

Who wrote that sympathy is the basis of a civilized society? A. Adam SmithB. Milton FriedmanC. Benjamin FranklinD. Thomas JeffersonE. Milton Berle

AACSB: Ethics




95.(p. 69)

General Electric CEO Jeff Immelt used to view environmental rules as a burden and a cost. Now he sees environmentally friendly technologies as one of the global economy's most significant business opportunities. Why has GE changed its view on the subject? A.

GE is attempting leverage its technologies to solve environmental problems with wind turbines, solar energy cell materials and energy-efficient home appliances.

B. GE has negotiated with the EPA to reduce their risk and liability for its emissions.C. GE no longer creates products that effect the natural environment.D.

GE has found that environmental technologies will not create a competitive advantage for its competitors.

E.

GE executives believe that an era of abundant raw materials, cheap energy, and unconstrained waste disposal will return.

Under a business initiative called Ecomagination, GE is looking for business opportunities from solving environmental problems. Ecomagination solutions already include wind turbines, materials for solar energy cells, and energy-efficient home appliances. Over a five-year period, GE's revenues from renewable-energy products have risen from $5 million to $7 billion.

AACSB: Ethics




96.(p. 69)

__________ has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders. A. Compliance buildingB. StonewallingC. Ecocentric managementD. Life-cycle analysisE. Egoism

AACSB: Ethics




97.(p. 69)

Economic growth and development that meets present needs without harming the needs of future generations is known as A. ecocentric management.B. ergonomic management.C. sustainable growth.D. sustainable management.E. risk.

AACSB: Ethics




98.(p. 70)

The process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product, to determine the total environmental impact of its production and use is known as A. life-cycle analysis.B. cost-benefit analysis.C. ecocentric management.D. compliance building.E. ergonomic management.

AACSB: Ethics




99.(p. 54-56)

Discuss the ethical systems (universalism, egoism, utilitarianism and relativism). Provide an example of each.

Answers will vary.

AACSB: Ethics



Topic: Ethics

100.(p. 56)

Describe Kohlberg's model of cognitive moral development. Give an example for each of the stages.

Answers will vary.

AACSB: Ethics



Topic: Ethics

101.(p. 59)

Your text provided many examples of "danger signs" that might be found within an organization that create a climate which encourages unethical behavior. Describe five of them.

Answers will vary.

AACSB: Ethics



Topic: Ethics

102.(p. 62-63)

Explain John Rawls's thought experiment based on the "veil of ignorance". Use an example to show how a decision maker can tactically apply this concept to minimize personal bias.

Answers will vary.

AACSB: Ethics


Learning Objective: 03-03 Outline a process for making ethical decisions.Level of Difficulty: Hard

Topic: Ethics

103.(p. 65-66)

Distinguish between the different types of social responsibilities of business using examples. What are the contrasting views to corporate social responsibility?

Answers will vary.

AACSB: Ethics




104.(p. 69)

Discuss ecocentric management. How can it be beneficial to organizations?

Answers will vary.

AACSB: Ethics


Learning Objective: 03-06 Identify actions managers can take to manage with the environment in mind.Level of Difficulty: Medium


Scenario A. Use the following information to answer the three questions below the paragraph.Your energy drink corporation faces an ethical question. There has been a problem with your accounting process that has resulted in higher profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why. Sita wants to report the error because she believes is worried about her job should the news get out about a cover-up. Ben wants to report the error because it is the honest thing to do, and he feels that is fundamental to your business and society. After hearing his colleagues' opinions, Ray says he wants to report the error as well because he always wants to "go with the group."

Bateman - Chapter 03

105.(p. 54-56)

Sita is using which ethical system for her decision making? A. UniversalismB. EgoismC. UtilitarianismD. RelativismE. Conventionalism

AACSB: Ethics



Topic: Ethics

106.(p. 54-56)

Ben is using which ethical system for his decision making? A. UniversalismB. EgoismC. UtilitarianismD. RelativismE. Conventionalism

AACSB: Ethics



Topic: Ethics

107.(p. 54-56)

Ray is using which ethical system for his decision making? A. UniversalismB. EgoismC. UtilitarianismD. RelativismE. Conventionalism

AACSB: Ethics



Topic: Ethics

Scenario B. Use the following information to answer the three questions below the paragraph.You face a question regarding how to handle a defective piece on a scooter that your toy company sold. To tell the customer and issue a recall would cost you a substantial amount of money but if the toy fails, it could lead to serious injury of the child using it. You are choosing between three options presented by colleagues:Option 1: Keeping quiet about the defect.Option 2: Review company policy, toy industry practices and advice from colleagues.Option 3: Disclose the defect and suggest alternatives to eliminate the risk of injury.


108.(p. 54-56)

Option 1 employs which ethical approach? A. EgoismB. UtilitarianismC. RelativismD. Virtue ethicsE. Life-cycle analysis

AACSB: Ethics



Topic: Ethics

109.(p. 54-56)


AACSB: Ethics



Topic: Ethics

110.(p. 54-56)


AACSB: Ethics



Topic: Ethics

Scenario C. Use the following information to answer the three questions below the paragraph.Two managers at Minimum Effort, Inc. are discussing the latest e-mail they have received. The email they are reading concerns how decisions are evaluated on the basis of right and wrong at their company. Jimmy Joe's reaction is simply to say: "All this thing needs to say, as far as I'm concerned is if you don't get busted for it, you're innocent. If you do get caught, you pay the price." His friend, Hassan, has a very different idea. His response is: "I believe, however, that every individual should take personal responsibility for their behavior. I would like for our organization to integrate that idea into everything we do here at work."


111.(p. 58)

The assessment of how decisions are evaluated in the company refers to the organization's A. corporate climate.B. ethical climate.C. ethical perspective.D. organizational dynamics.E. corporate code.

AACSB: Ethics



Topic: Ethics

112.(p. 62)

Jimmy Joe seems to prefer which type of ethics program for the company? A. Associate-basedB. Compliance-basedC. Integrity-basedD. Systems-basedE. Consensus-based

AACSB: Ethics


Learning Objective: 03-02 Explain how companies influence their ethics environment.Level of Difficulty: Hard

Topic: Ethics

113.(p. 62)

Hassan seems to prefer which type of ethics program for the company? A. Associate-basedB. Compliance-basedC. Integrity-basedD. Systems-basedE. Consensus-based

AACSB: Ethics


Learning Objective: 03-02 Explain how companies influence their ethics environment.Level of Difficulty: Hard

Topic: Ethics

Scenario D. Use the following information to answer the three questions below the paragraph.Two executives are discussing possible options to improve profitability for their toy company, Rankin Limited. Shareholders have been unhappy with recent declines in earnings, and stock prices have fallen sharply. Lian has advocated moving toy production offshore to dramatically lower costs and has obtained some samples made in a foreign location. But she is worried that tests show the toys may not meet US standards for lead content. Jerome is concerned about another issue; the business with whom they are negotiating has a history of using child labor, which is not illegal in its nation, and he has heard about angry parent groups getting involved in these issues.


114.(p. 65-66)

Considering the levels of corporate social responsibility, the shareholders' concerns would best be described as Rankin's A. sustainability responsibility.B. ethical responsibility.C. philanthropic responsibility.D. legal responsibility.E. economic responsibility.

AACSB: Ethics




115.(p. 65-66)

Considering the levels of corporate social responsibility, Lian's concerns would best be described as Rankin's A. sustainability responsibility.B. ethical responsibility.C. philanthropic responsibility.D. legal responsibility.E. economic responsibility.

AACSB: Ethics




116.(p. 65-66)

Considering the levels of corporate social responsibility, Jerome's concerns would best be described as Rankin's A. sustainability responsibility.B. ethical responsibility.C. philanthropic responsibility.D. legal responsibility.E. economic responsibility.

AACSB: Ethics




Ch03 Summary Category # of Questions

AACSB: Ethics 116

Bateman - Chapter 03 120

Blooms: Application 25

Blooms: Comprehension 50

Blooms: Knowledge 41

Learning Objective: 03-01 Describe how different ethical perspectives guide decision making. 42

Learning Objective: 03-02 Explain how companies influence their ethics environment. 28

Learning Objective: 03-03 Outline a process for making ethical decisions. 13

Learning Objective: 03-04 Summarize the important issues surrounding corporate social responsibility. 24

Learning Objective: 03-05 Discuss reasons for businesses growing interest in the natural environment. 3

Learning Objective: 03-06 Identify actions managers can take to manage with the environment in mind. 6

Level of Difficulty: Easy 41

Level of Difficulty: Hard 25

Level of Difficulty: Medium 50

Topic: Corporate Social Responsibility 24

Topic: Ethics 83

Topic: The Natural Environment 9

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Mgt 3013 Questions Ch03