3-1
Chapter 03 Managing Ethics and Diversity Answer Key
True / False Questions
1.
An ethical dilemma does not arise when a person has to choose between two different
courses of action, knowing that whichever course he/she chooses will harm one person or
group even while it may benefit another.
FALSE
Ethical dilemma is the quandary that people find themselves in when they have to decide
if they should act in a way that might help another person or group and is the right thing to
do, even though doing so might go against their own self-interest. A dilemma may also
arise when a person has to choose between two different courses of action, knowing that
whichever course he/she selects will harm one person or group even while it may benefit
another.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Ethical Dilemma
2.
Customers are stakeholders of an organization, but managers are not.
FALSE
Because stakeholders can directly benefit or be harmed by its actions, the ethics of a
company and its managers are important to them. It is important to examine the claims of
these stakeholders—stockholders; managers; employees; suppliers and distributors;
customers; and community, society, and nation-state.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: External Stakeholders
3.
Under the utilitarian rule, an ethical decision is one that best maintains and protects the
fundamental rights and privileges of the people affected by it.
FALSE
The utilitarian rule is that an ethical decision is a decision that produces the greatest good
for the greatest number of people.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
4.
From a moral rights perspective, managers should compare alternative courses of action
on the basis of how each will affect the rights of each stakeholder group.
TRUE
From a moral rights perspective, managers should compare and contrast different courses
of business action on the basis of how each course will affect the rights of the company’s
different stakeholders. Managers should then choose the course of action that best
protects and upholds the rights of all stakeholders.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
5.
“An ethical decision is one that a typical person in a society would think is acceptable” is a
statement that reflects the justice rule.
FALSE
The practical rule is that an ethical decision is one that a manager has no hesitation or
reluctance about communicating to people outside the company because the typical
person in a society would think it is acceptable.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
6.
The “practical rule” ensures that managers are taking into account the interests of all
stakeholders.
TRUE
Applying the practical rule to analyze a business decision helps ensure that managers are
taking into account the interests of all stakeholders.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
7.
A society’s ethics are derived exclusively from the written values and norms of society that
address how people should interact with one another.
FALSE
Societal ethics emanate from a society’s laws, customs, and practices, and from the
unwritten attitudes, values, and norms that influence how people interact with each other.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
8.
An organization’s code of ethics is shaped by the ethics of the top managers of the
organization.
TRUE
Managers can emphasize the importance of ethical behavior and social responsibility by
ensuring that ethical values and norms are a central component of organizational culture.
An organization’s code of ethics guides decision making when ethical questions arise, but
managers can go one step farther by ensuring that important ethical values and norms are
key features of an organization’s culture.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Explain why managers should behave ethically and strive to create ethical organizational
cultures.
Topic: Code of Ethics
9.
The term “diversity” refers to differences in gender and age, but not to those in sexual
orientation.
FALSE
Diversity is dissimilarities among people due to age, gender, race, ethnicity, religion,
sexual orientation, socioeconomic background, education, experience, physical
appearance, capabilities/disabilities, and any other characteristic that is used to
distinguish between people.
AACSB: Analytical Thinking
AACSB: Ethics
Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.
Topic: Diversity
10.
According to the federal Glass Ceiling Commission Report, African Americans have the
hardest time being promoted.
TRUE
The federal Glass Ceiling Commission Report indicated that African Americans have the
hardest time being promoted and climbing the corporate ladder, that Asians are often
stereotyped into technical jobs, and that Hispanics are assumed to be less well educated
than other minority groups.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.
Topic: Diversity
11.
The increasing racial and ethnic diversity of the workforce and the population as a whole
underscores the importance of effectively managing diversity.
TRUE
The increasing racial and ethnic diversity of the workforce and the population as a whole
underscores the importance of effectively managing diversity. Statistics suggest that much
needs to be done in terms of ensuring that diverse employees have equal opportunities.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Topic: Diversity
12.
The ADA does not cover employees with AIDS from being discriminated against in the
workplace.
FALSE
The ADA protects employees with acquired immune deficiency syndrome (AIDS) from
being discriminated against in the workplace.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Appreciate the increasing diversity of the workforce and of the organizational environment.
Topic: Diversity
13.
Managers can promote the effective management of diversity through the performance of
interpersonal and decisional roles, but not through informational roles.
FALSE
Managers can promote the effective management of diversity through the performance of
interpersonal roles, decisional roles, and informational roles.
Refer: Table 3.2
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.
Topic: Diversity
14.
A slight bias toward a particular group can lead to very large differences between groups
over time.
TRUE
Research suggests that slight differences in treatment can accumulate and result in major
disparities over time. Even small differences—such as a very slightly favorable bias toward
men for promotions—can lead to major differences in the number of male and female
managers over time.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Grasp the central role that managers play in the effective management of diversity.
Topic: Diversity
15.
An important factor that managers need to keep in mind is that employees who go along
with unwanted sexual attention in the workplace cannot be considered sexual harassment
victims.
FALSE
One of the factors that managers and all members of an organization need to keep in mind
is that employees who go along with unwanted sexual attention in the workplace can be
sexual harassment victims.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Multiple Choice Questions
16.
An ethical dilemma is a situation in which a person has to decide if he/she should act in a
way that ________.
A.
fosters his/her own self-interest to favor another’s self-interest
B.
is the right thing to do, even though doing so might go against his/her own self-interest
C.
D.
may help another person and favor his/her own self-interest
An ethical dilemma is the quandary that people find themselves in when they have to
decide if they should act in a way that might help another person or group, and is the right
thing to do, even though doing so might go against their own self-interest.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Ethical Dilemma
17.
“Thoughts and feelings that tell a person what is right or wrong” accurately defines
________.
A.
moral scruples
B.
ethical dilemmas
C.
laws
D.
norms
Moral scruples are thoughts and feelings that tell a person what is right or wrong; they are
a part of a person’s ethics.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Ethical Dilemma
18.
The inner guiding moral principles, values, and beliefs that people use to analyze or
interpret a situation and then decide what is the right or appropriate way to behave are
________.
A.
ethics
B.
scruples
C.
laws
D.
norms
Ethics are the inner guiding moral principles, values, and beliefs that people use to analyze
or interpret a situation and then decide what is the right or appropriate way to behave.
Ethics also indicate what is inappropriate behavior and how a person should behave to
avoid harming another person.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Ethical Dilemma
19.
Which of the following statements is true of ethics and law?
A.
Both ethics and law are fixed principles.
B.
Ethics are always fixed, but law is always flexible.
C.
Ethics are always flexible, but law is always fixed.
D.
Neither ethics nor laws are fixed principles.
In studying the relationship between ethics and law, it is important to understand that
neither laws nor ethics are fixed principles that do not change over time. Ethical beliefs
alter and change as time passes, and as they do so, laws change to reflect the changing
ethical beliefs of a society.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Ethical Dilemma
3-14
20.
It was ethical and legal to acquire and possess slaves in ancient Rome and Greece. Today,
however, slavery is considered both unethical and illegal. This implies that ________.
A.
ethics and laws can be fixed or flexible principles depending on the situation
B.
ethics are always fixed but law is always flexible
C.
neither laws nor ethics are fixed principles
D.
ethics are always flexible but law is always fixed
In studying the relationship between ethics and law, it is important to understand that
neither laws nor ethics are fixed principles that do not change over time. Ethical beliefs
alter and change as time passes, and as they do so, laws change to reflect the changing
ethical beliefs of a society.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Ethical Dilemma
21.
The people and groups that supply a company with its productive resources, and thus
have a claim on and a stake in the company, are known as ________.
A.
consultants
B.
suppliers and distributors
C.
stockholders
D.
stakeholders
Stakeholders supply a company with its productive resources; as a result, they have a
claim on and a stake in the company. Types of stakeholders include stockholders,
managers, customers, community, society, nation-states, suppliers and distributors, and
employees.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: External Stakeholders
22.
Stockholders are interested in the way that a company operates because they ________.
A.
use the company’s products
B.
believe in being ethical
C.
want to maximize the return on their investment
D.
want to take all risks
Stockholders are interested in the way a company operates because they want to
maximize the return on their investment. Thus they watch the company and its managers
closely to ensure that management is working diligently to increase the company’s
profitability. Stockholders also want to ensure that managers are behaving ethically and
not risking investors’ capital by engaging in actions that could hurt the company’s
reputation.
AACSB: Analytical Thinking
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: External Stakeholders
23.
The stakeholder group with the most responsibility for deciding the goals of the
organization are the ________.
A.
stockholders
B.
customers
C.
managers
D.
working-level employees
Managers are the stakeholder group that bears the responsibility to decide which goals an
organization should pursue to most benefit stakeholders and how to make the most
efficient use of resources to achieve those goals.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Internal Stakeholders
24.
Aztec Entertainment Company is experiencing a drop in profits during an economic
downturn and decides to cut costs to benefit stockholders. Which stakeholder group is
probably most adversely affected?
A.
Board of directors
B.
Customers
C.
Managers
D.
Employees
In economic downturns or when a company experiences performance shortfalls, layoffs
may help cut costs (thus benefiting shareholders) at the expense of the employees laid
off.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Internal Stakeholders
25.
Important issues concerning product quality and safety specifications are governed by the
contracts a company signs with its ________.
A.
customers
B.
managers
C.
employees
D.
suppliers and distributors
Important issues concerning product quality and safety specifications are governed by the
contracts a company signs with its suppliers and distributors.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics
26.
The most critical stakeholder group is often the ________.
A.
stockholders
B.
managers
C.
employees
D.
customers
Customers are often regarded as the most critical stakeholder group since if a company
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: External Stakeholders
27.
To help managers and employees make ethical decisions and behave in ways that benefit
their stakeholders, they can use four ethical rules or principles to analyze the effects of
their business decisions on stakeholders, the ________ rules.
A.
utilitarian, moral choice, justice, and practical
B.
utilitarian, moral rights, justice, and existentialist
C.
fairness, moral choice, justice, and practical
D.
utilitarian, moral rights, justice, and practical
To help themselves and employees make ethical decisions and behave in ways that
benefit their stakeholders, managers can use four ethical rules or principles to analyze the
effects of their business decisions on stakeholders: the utilitarian, moral rights, justice,
and practical rules.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Illustrate how ethics help managers determine the right way to behave when dealing with
different stakeholder groups.
Topic: Code of Ethics