1. Ethics is the code of moral principles and values that governs the behaviors of individuals or groups.
a. True
b. False
2. Free choice lies between the domains of codified law and ethics.
a. True
b. False
3. If something is ethical, it must not be illegal.
a. True
b. False
4. Although public confidence in business managers is at an all-time low, politics, sports, and non-profit organizations
have not been affected.
a. True
b. False
5. Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role
models for others.
a. True
b. False
6. An ethical dilemma arises in a situation concerning right or wrong when values are in conflict.
a. True
b. False
7. The moral agent is an individual who must make an ethical choice in an organization.
a. True
b. False
8. The CSR approach to ethical decision making sidesteps debates about what is right, good, or just and bases
decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into
account.
a. True
b. False
9. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
a. True
b. False
10. The practical approach to ethical decision making says that ethical issues are not always clear cut.
a. True
b. False
11. The basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco
consumption on the job is called the utilitarian ethic.
a. True
b. False
12. Monitoring the Internet to maintain the company‘s ethical climate and workplace productivity could be considered
part of an individualistic approach.
a. True
b. False
13. The ethical concept that acts are moral when they promote the individual’s best long term interests, which ultimately
leads to the greater good, is known as the moral rights approach.
a. True
b. False
14. Individualism is popular in the highly organized society of today because it supports immediate self-gain.
a. True
b. False
15. The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be
considered in the moral rights approach.
a. True
b. False
16. Compensatory justice argues that an employees compensation should be based on individual performance.
a. True
b. False
17. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered
fairly.
a. True
b. False
18. Level 3 of the Personal Moral Development model is Conventional.
a. True
b. False
19. The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and
fulfills duties and obligations of the social system.
a. True
b. False
20. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority
to avoid detrimental personal consequences.
a. True
b. False
21. Individuals are concerned with external rewards and punishments at the principled level.
a. True
b. False
22. An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social
systems, and upholds law.
a. True
b. False
23. Principled level of moral development is also referred to as the postconventional level.
a. True
b. False
24. The majority of managers operate at the preconventional level of personal moral development.
a. True
b. False
25. Approximately 20% of American adults, according to your text, never reach the postconventional level of moral
development.
a. True
b. False
26. Social responsibility is management‘s obligation to make choices and take actions that will contribute to the welfare
and interests of society as well as the organization.
a. True
b. False
27. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or
wrong.
a. True
b. False
28. Important stakeholders in corporations include the government and the community.
a. True
b. False
29. A stakeholder is any group within or outside the organization that has a stake in the organization’s performance.
a. True
b. False
30. Special interest groups include trade associations, political action committees and consumerists.
a. True
b. False
31. Economic development that generates wealth and meets the needs of the current population while preserving the
environment for the needs of future generations refers to sustainability.
a. True
b. False
32. Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be
used to evaluate corporate social performance.
a. True
b. False
33. Economic responsibility, carried to the extreme, is called the profit-maximizing view.
a. True
b. False
34. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.
a. True
b. False
35. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the
corporation‘s direct economic interests.
a. True
b. False
36. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.
a. True
b. False
37. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.
a. True
b. False
38. Principle-based statements define fundamental values and contain general language about company responsibilities,
quality of products, and treatment of employees.
a. True
b. False
39. Policy-based statements generally outline the procedure to be used in specific ethical situations.
a. True
b. False
40. One of the newest positions in organizations is the chief operating officer, a response to widespread financial
wrongdoing in recent years.
a. True
b. False
41. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.
a. True
b. False
42. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle–
blowing.
a. True
b. False
43. Managers are often concerned good citizenship will hurt performance.
a. True
b. False
44. An organization‘s decision to hire for an open position is in the:
a. domain of codified law.
b. domain of free choice.
c. domain of ethics.
d. domain of compensatory justice.
e. domain of social responsibility.
45. A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company
has a chance to sell its product in another country immediately to start recovering the costs of R & D and
production three years ahead of time. This example places the decision in which of the categories from the text?
a. The ethical domain
b. The domain of free choice
c. The legal domain
d. The obstructive category
e. The protective domain
46. The decision by ABC International to downsize and reduce its labor force is in the:
a. domain of codified law. b. domain of free choice.
c. domain of ethics. d. social responsibility.
e. none of these.
47. A recent poll found that percent of people surveyed say corporate America’s moral compass is pointing in
the wrong direction.
a. 10 b. 29
c. 52 d. 76
e. 98
48. A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the
potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered:
a. a moral agent.
b. a social responsibility.
c. an ethical dilemma.
d. an ethical standard.
e. discretionary responsibility.
49. Which of the following is the individual who must make an ethical choice in an organization?
a. The symbolic leader
b. An obstructive manager
c. The defensive individual
d. The moral agent
e. An authoritarian manager
50. A normative approach to ethical decision making:
a. reduces ethical dilemmas to easy–to-understand formulas.
b. uses various approaches to describe guiding values for decisions.
c. states that everyone must use their employer‘s value system at work.
d. dictates only one way to choose to resolve dilemmas.
e. none of these.
51. Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number?
a. Defensive
b. Justice
c. Utilitarian
d. Individualism
e. Moral–rights
52. Robbie’s Robots decided to continue operations at one plant while shutting down another. The decision was justified
on the basis of what was best for the total corporation. This is an example of the:
a. utilitarian approach.
b. individualism approach.
c. moral-justice approach.
d. justice approach.
e. illegal approach.
53. Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative
on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example
of the:
a. utilitarian approach.
b. individualism approach.
c. moral-justice approach.
d. justice approach.
e. soft-line managerial approach.
54. Which ethical approach are companies citing to justify their policing of employee‘s personal habits on and off the
job, such as alcohol and tobacco consumption?
a. Justice approach
b. Utilitarian approach
c. Individualism approach
d. Moral-justice approach
e. Discretionary responsibility