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Chapter Twenty-Two:
Implementing Ethics Systems
True/False Questions:
1) Corporate statements of social responsibility and codes of ethics are rare.
2) The positive application of ethics includes the formulation of policies to be used
in the screening stage.
3) All codes and statements of responsibility are little more than public relations..
4) Many companies have established the position of “ethics officer.”
5) Some codes of ethics and statements of responsibility are little more than public
relations.
6) Although nonmarket action is often motivated by self-interest, on many issues it
is motivated by moral concerns.
7) Moral concerns are the same as self-interest.
8) The link between moral concerns and nonmarket action is mediated by the cost of
taking individual and collective action..
9) Moral concerns are not the same as self-interest.
10) Although it is difficult to assess the cost of generating individual and collective
action, it is reasonable to expect the cost to be higher when people with similar concerns
are involved.
11) One frequently used approach to implementing corporate social responsibility is
the “triple bottom line.”
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12) The social responsibilities of business are identified by ethics principles and
reasoning based on those principles.
13) Wal-Mart’s credo is one of the oldest and best-followed statements of
commitment in American business.
14) One approach to measuring corporate social performance is the balanced
scorecard.
15) Some companies have extended the balanced scorecard to include financial and
corporate performance.
16) Citibank’s balanced scorecard includes four components instead of the traditional
two.
17) BP’s concept of social responsibility was well received by activists groups.
18) Wal-Mart belatedly recognized that it had focused on only one primary
stakeholder—its shareholders.
19) When you think of The Body Shop, think profiteering.
20) Codes of conduct help to guide behavior in the conduct of their duties in
corporations.
21) In such a competitive world, even Proctor & Gamble is justified in allowing its
employees to obtain information by going through the trash of the competitors
such as Unilever PLC.
22) Some companies, such as Enron, use the Golden Rule as a guide to their basic
principles of behavioral conduct for employees.
23) As part of its principles, Cummins Engine states that it neither practices nor
condones any activity that will not stand the most rigorous public ethical
examination.
24) Paternalism refers to actions taken to harm a person .
25) Paternalism is a moral wrong.
26) Unethical behavior has a number of sources; some are idiosyncratic to the
particular individuals involved.
27) Paternalism can be a difficult issue in the implementation of ethics principles.
28) Paternalism is seen as a moral right.
29) Unbridled political action in campaigns is ethical because it is seen as a necessity
for survival from one political leader to another.
30) Utilitarianism views political rights as instrumental and calls for their exercise
only to minimize aggregate well-being.
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Multiple Choice Questions:
31) Which of the following is true regarding statements of social responsibility and
codes of ethics?
a) They have become commonplace
b) They are rare
c) They are found more in Europe than in the U.S.
d) All of the above
32) In the Conference Board Survey, what percentage of the members of boards of
directors participated in creating codes of ethics?
a) 14
b) 62
c) 78
d) 47
33) Implementation of ethical systems requires all of the following measures, except:
a) Providing guidance for the types of situations likely to be encountered by
employees
b) Developing and supporting personal integrity
c) Developing corporate financial standards
d) None of the above
34) Although nonmarket action is often motivated by self-interest, on many issues it
is motivated by:
a) Public interest.
b) Selfishness.
c) Civil rights.
d) Moral concerns.
35) The link between moral concerns and nonmarket action is ______ by the cost of
taking individual and collective action.
a) Moderated
b) Mediated
c) Subjugated
d) Controlled
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36) Which petroleum company presented in the text has taken an active role in
working with Greenpeace and others on the issue of global warming?
a) Shell
b) Exxon
c) British Petroleum
d) Sunoco
37) The spread of codes of ethics and statements of social responsibility is likely due
to three factors, excluding which of the following?
a) Belief by management that their firms should be accountable for conduct
beyond profit maximization
b) Defensive motivation to avoid nonmarket action by interest groups and others
c) Defend against and pre-empt government regulation
d) Offensive image advantage must be established
38) Which of the following shareholders is ranked as first priority in the Johnson &
Johnson Credo?
a) Stockholders
b) Shareholders in general
c) Medical personnel
d) Employees
39) The Business Roundtable identifies the following components of an ethics and
standards of conduct program. Which item is not one of the recommended
components?
a) Fundamental Honesty and Adherence to the law
b) Employment practices
c) Protection of the environment
d) Individual Codes of conduct
40) All of the following are part of The Business Roundtable’s set of topics to be
covered by company codes of ethics and standards of conduct except:
a) Conflicts of interest.
b) Financial reporting.
c) Supplier relationships.
d) Stock options.
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41) The Cummins Engine Company’s basic principle is a version of which of the
following?
a) Greek philosophy
b) Roman ethics
c) Golden Rule
d) Way of Tao
42) Paternalism refers to actions or rules of behavior taken to benefit a person without
that person's consent. Thus, which of the following cases would be considered
paternalistic?
a) An American citizen for whom somebody else made a decision on his/her
behalf without consent
b) An individual who was denied the opportunity to make choices that would
further his/her interests
c) One's action does not have that person's past, present or immediately
forthcoming consent
d) All the above actions are considered paternalistic
43) Who in this list has the right to engage in nonmarket activity in the U.S.?
a) Firms
b) Interest groups
c) Individuals
d) All are correct answers
44) Paternalism is a _____ wrong.
a) political
b) moral
c) corporate
d) systemic
45) Which among the following can be sources of unethical behavior?
a) Idiosyncrasies of people
b) Functions of the managerial setting
c) Policies of a firm
d) All are correct
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46) Unethical behavior can result from too _____a focus on duties imposed by the
_____.
a) Broad; company
b) Narrow; law
c) Narrow; company policy
d) Broad; law
47) ______ provides minimum restraints on behavior.
a) The law
b) A conscience
c) Reading ethical tracts
d) None are correct
48) What is rarely a sufficient insurance of ethical behavior?
a) Personal integrity
b) Interpersonal values
c) Constitutional rights
d) Conscience
49) What are the two principal causes of unethical behavior?
a) Conscience and upbringing
b) Intolerance and bad genes
c) Ignorance and conscience
d) Temptation and pressure
50) Which of the following companies has had a great deal of problems with racism
by employees toward customers?
a) McDonald’s
b) Denny’s
c) Levi Strauss
d) Johnson & Johnson
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Essay and Review Questions:
1) Develop an approach, or a framework, for the analysis of moral determinants of
nonmarket behavior. Apply your approach to a specific issue of your choice.
Explain the outcomes or action suggested based on your analysis.
2) Managers do suffer from many tensions in the implementation of ethics
principles. State and explain five of these tensions, their sources and their
implications for decision-making. Give specific examples.
3) Select four corporations and discuss their programs for implementing their
respective social responsibilities. Critique some of their practices and assess their
effectiveness in reaching their professed goals.
4) You have been assigned the honor of writing the document outlining the ethical
principles and code of conduct for XYZ International Corporation. Using the
outline suggested by the Business Roundtable group, write the documents. Make
sure to include the policies and procedures to guarantee compliance with your
code.
5) Select, describe and explain five sources of unethical behavior that you have
noticed in your career as a manager or line employee. How did you deal with such
behavior? What was the outcome of each? Write your own code of ethics by
which you abide.
6) Compare and contrast the ethical approaches of BP, Levi-Strauss, H-P and
Cummins. Be specific in your analysis.
7) Describe, discuss, analyze and evaluate the case of Denny’s and Customer
Service. Use concepts from the chapter to frame your analysis.
8) What are the ethical and moral issues facing the U.S. in the 21st century? What are
the management issues? How would you address these issues? Give specifics in
your analysis.
10) Develop an ethical code of conduct for your university or place of employment.
Be specific and draw from points in the chapter to support your arguments.
11) You are a human resources and ethics consultant to Denny’s. How would you
approach the company in terms of such human resources issues as hiring, firing,
training, performance evaluations, and diversity? Develop an approach using the
information and concepts in the chapter.
12) Discuss what you think it would be like to be the Ethics and Social Responsibility
Officer in Silicon Valley or New York City.
