57) The social responsibility perspective argues that ________.
A) the basis of all rights stem from freedom and autonomy
B) firms are accountable only to shareholders
C) society grants existence to firms
D) costs and benefits should be equitably distributed
58) According to the principle of ________, the financial obligation corporations have to others
is limited to the company and does not extend to its shareholders.
A) limited liability
B) distributive justice
C) limited interest
D) compensatory justice
59) According to the social responsibility perspective, managers should ________.
A) maximize returns to shareholders
B) not consider the concerns of stakeholders beyond the firm’s shareholders
C) balance returns to shareholders against legitimate concerns of stakeholders
D) minimize returns to shareholders and maximize returns to stakeholders
60) A(n) ________ is an individual or group that has an interest in and is affected by the actions
of an organization.
A) social consensus
B) cohort
C) stakeholder
D) accommodator
61) Actions that benefit shareholders but harm the other stakeholders would be viewed as
________ from the efficiency perspective but ________ from the social responsibility
perspective.
A) managerially responsible; socially irresponsible
B) socially responsible; managerially irresponsible
C) socially irresponsible; managerially responsible
D) managerially irresponsible; socially responsible
62) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. Companies that are ________ tend to fight efforts that they see
as resulting in greater restriction and regulation of their ability to maximize profits.
A) accommodators
B) defenders
C) reactors
D) anticipators
63) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. Defenders ________.
A) actively seek legal loopholes in conducting their business
B) abide by the letter of the law
C) make changes when they feel pressurized by constituencies
D) anticipate harmful consequences independent of pressures and laws
64) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. ________ tend to obey the letter of the law but do not make
changes that might restrict profits unless they are required to.
A) Reactors
B) Anticipators
C) Defenders
D) Accommodators
65) Which of the following is an example of an accommodator firm?
A) The Hardley Accounting Firm changes its accounting practices after the introduction of the
Sarbanes-Oxley Act in 2002.
B) Ramen’s retail store decides to stop using plastic bags after customers threatened to boycott its
products.
C) A biotech company fights government efforts that will restrict its ability to import raw
materials.
D) A petrochemical company takes preventive measures to protect employees from harmful
chemicals within the workplace even before anyone suffers negative side effects.
66) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. ________ firms make changes when they feel that pressure from
constituencies is sufficient such that nonresponsiveness could have a negative economic impact
on the firm.
A) Accommodator
B) Anticipator
C) Reactor
D) Defender
67) Which of the following is an example of a reactor firm?
A) A biotech company fights government efforts that will restrict its ability to import raw
materials.
B) A petrochemical company takes preventive measures to protect employees from harmful
chemicals within the workplace even before anyone suffers negative side effects.
C) The Hardley Accounting Firm changes its accounting practices after the introduction of the
Sarbanes-Oxley Act in 2002.
D) Ramen’s retail store decides to stop using plastic bags after customers threatened to boycott
its products.
68) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. ________ make changes only when legally compelled to do so.
A) Accommodators and reactors
B) Anticipators and reactors
C) Defenders and accommodators
D) Reactors and anticipators
69) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. Reactor firms focus on ________ profits.
A) protecting
B) obtaining
C) maximizing
D) sharing
70) Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. ________ tend to believe that they are obligated to a variety of
stakeholders not to harm them independent of laws or pressures that restrict or regulate their
actions.
A) Defenders
B) Anticipators
C) Reactors
D) Accommodators
71) Which of the following is an example of an anticipator firm?
A) The Hardley Accounting Firm changes its accounting practices after the introduction of the
Sarbanes-Oxley Act in 2002.
B) A biotech company fights government efforts that will restrict its ability to import raw
materials.
C) A petrochemical company takes preventive measures to protect employees from harmful
chemicals within the workplace even before anyone suffers negative side effects.
D) Ramen’s retail store decides to stop using plastic bags after customers threatened to boycott
its products.
72) Which of the following best explains the inside-out approach to strategic corporate social
responsibility?
A) Managers can look inside the company at issues that are more rather than less important as a
function of the company’s strategy and business activities.
B) Managers can look outside the company at issues the company can influence.
C) Managers look at social issues in general terms of the extent to which they are problematic.
D) Managers look for legal loopholes in conducting their business.
73) When managers can look outside the company at issues the company can influence, they are
following the ________ approach to strategic corporate social responsibility.
A) inside-out
B) outside-in
C) outside-out
D) inside-in
74) When managers look at social issues in general terms of the extent to which they are
problematic they are following the ________ approach to strategic corporate social
responsibility.
A) outside-in
B) inside-out
C) inside-in
D) outside-out
75) A(n) ________ is a formal settlement that outlines types of behavior that are and are not
acceptable.
A) mission statement
B) code of ethical conduct
C) internal control
D) performance report
76) How can a company communicate ethical standards?
A) by disseminating a one-time memo
B) by repeatedly communicating the code in memos and company newsletters
C) by conducting one-to-one meetings with the manager and the employee
D) by letting employees conduct themselves in ways they think appropriate and correcting them,
if need be
77) A(n) ________ is an employee who discloses illegal or unethical conduct on the part of
others in the organization.
A) connoisseur
B) critic
C) whistleblower
D) analyst
78) As an employee of an international aid organization, Cynthia is often required to travel to
countries where natural disasters have recently occurred. During a visit to a city destroyed by an
earthquake, Cynthia learns that her organization has hired child laborers to help rebuild the
ruined city. She quits the organization and brings this information to the notice of the public.
Cynthia is a(n) ________.
A) connoisseur
B) analyst
C) whistleblower
D) defender
79) When companies reward employees who report valid claims of corporate unethical conduct,
what are they clearly encouraging?
A) moral intensity
B) pay for performance
C) compensatory justice
D) whistleblowing
80) Which of the following statements is true regarding whistleblowing?
A) Whistleblowers report illegal acts for personal fame.
B) Whistleblowers tend not to be disgruntled employees.
C) Laws in the United States neither protect nor reward whistleblowing.
D) Whistleblowers rarely use external channels to blow the whistle.
81) Which of the following is least likely to encourage whistleblowing?
A) communicating procedures to all employees
B) protecting whistleblowers who make valid claims
C) having a closed-door policy
D) investigating all claims based on consistent procedures
82) The Foreign Corrupt Practices Act prohibit payments to ________.
A) foreign shareholders
B) foreign officials
C) firm partners
D) competitors
83) According to the Foreign Corrupt Practices Act, which of the following can be paid to low-
level government employees to perform their duties more quickly?
A) bribes
B) dividends
C) facilitating payments
D) push money
84) Which of the following is true about the Foreign Corrupt Practices Act?
A) It prohibits employees of U.S. firms from making payments to low-level government
employees.
B) It covers payments made to business executives.
C) It outlaws an employee from making payments to any person when the employee has “reason
to know” that the payments might be used to corrupt the behavior of officials.
D) Companies and individuals found violating the act are given a warning.
85) Define ethical dilemmas and ethical lapses.
86) How can the utilitarian approach be used to accommodate child labor?
87) Discuss the moral rights approach to ethical decision making.
88) Explain the justice approach to ethical decision making and its various forms.
89) What is moral intensity? Identify the six components of moral intensity.
90) Compare magnitude of consequences with probability of effect, from the perspective of
moral intensity.
91) What does the efficiency perspective of social responsibility suggest when the manager of a
business is also its owner?
92) Describe the characteristics of companies that are classified as reactors in terms of social
responsibility.
93) What is the strategic corporate social responsibility perspective? Explain the “inside-out”
approach with examples.
94) Who is a whistleblower?
95) Briefly describe the Foreign Corrupt Practices Act.