1. Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or
groups.
a.
True
b.
False
True
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2. Free choice lies between the domains of codified law and ethics.
a.
True
b.
False
False
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3. If something is ethical, it must not be illegal.
a.
True
b.
False
False
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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
False
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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
True
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6. An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially
harmful ethical consequences.
a.
True
b.
False
True
143
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7. The moral agent is an individual who must make an ethical choice in an organization.
a.
True
b.
False
True
MGMT.DAFT.12.05-02 – 05–02
8. The virtue ethics 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
False
144
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9. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
a.
True
b.
False
False
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10. The virtue ethics approach to ethical decision making says that moral behavior stems from personal virtues.
a.
True
b.
False
True
144
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11. Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-
making.
a.
True
b.
False
False
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12. 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
True
145
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13. 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
False
145
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14. 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
False
145
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15. The ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people is
objective dualism.
a.
True
b.
False
False
145
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16. Individualism is popular in the highly organized society of today because it supports immediate self-gain.
a.
True
b.
False
False
145
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17. 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
True
MGMT.DAFT.12.05-03 – 05–03
18. Compensatory justice argues that an employees compensation should be based on individual performance.
a.
True
b.
False
False
146
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19. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.
a.
True
b.
False
True
146
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20. Level 3 of the Personal Moral Development model is Conventional.
a.
True
b.
False
False
148
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21. 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
False
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22. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to
avoid detrimental personal consequences.
a.
True
b.
False
True
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23. Individuals are concerned with external rewards and punishments at the principled level.
a.
True
b.
False
False
148
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24. 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
False
148
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25.
a.
True
b.
False
True
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26. Principled level of moral development is also referred to as the postconventional level.
a.
True
b.
False
True
148
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27. The majority of managers operate at the preconventional level of personal moral development.
a.
True
b.
False
False
149
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28. Approximately 20% of American adults, according to your text, never reach the postconventional level of moral
development.
a.
True
b.
False
True
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29. 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
True
150
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30. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.
a.
True
b.
False
False
150
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31. Important stakeholders in corporations include the government and the community.
a.
True
b.
False
True
150
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32. A stakeholder is any group within or outside the organization that has a stake in the organization’s performance.
a.
True
b.
False
True
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33. All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.
a.
True
b.
False
False
150
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34. Special interest groups include trade associations, political action committees and consumerists.
a.
True
b.
False
True
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35. 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
True
MGMT.DAFT.12.05-06 – 05–06
36. 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
True
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37.
a.
True
b.
False
True
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38. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.
a.
True
b.
False
False
154
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39. 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
True
154
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40. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.
a.
True
b.
False
156
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41. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.
a.
True
b.
False
False
156
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42. A formal statement of the organization’s values regarding moral principles and governing its response to social values
is called a code of ethics.
a.
True
b.
False
True
158
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43. Principle-based statements define fundamental values and contain general language about company responsibilities,
quality of products, and treatment of employees.
a.
True
b.
False
True
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44. Policy-based statements generally outline the procedure to be used in specific ethical situations.
a.
True
b.
False
True
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45. 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
False
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46. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.
a.
True
b.
False
True
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47. Ethics training programs are not an important supplement as long as a well-written code of ethics exists.
a.
True
b.
False
False
160
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48. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle–
blowing.
a.
True
b.
False
True
160
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
49. Managers are often concerned good citizenship will hurt performance.
a.
True
b.
False
True
160
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United States – BUSPROG: Ethics
United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
50. Managers who are essentially ethical individuals make up the first pillar of an ethical organization.
a.
True
b.
False
True
163
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United States – BUSPROG: Ethics
United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
51. Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is
right and wrong?
a.
Social responsibility
b.
Free domain
c.
Ethics
d.
Codified law
e.
Discretionary responsibility
c
140
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United States – BUSPROG: Ethics
United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
52. Individualism is most closely related to:
social responsibility.
free choice.
economic responsibility.
codified law.
togetherness.
a.
b.
c.
d.
e.
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
53. An organization’s decision to produce a new product 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.
141
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
54. 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
141
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
55. The assumption that “If it’s not illegal, it must be ethical,” ignores which of the following?
a.
Domain of codified law
b.
Domain of ethics
c.
Domain of free choice
d.
Discretionary responsibility
e.
Domain of symbolism
141
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
56. 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.
141
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
57. 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
142
United States – BUSPROG: Ethics
United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
58. 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.
143
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
59. Which of the following is a(n) 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
144
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
60. Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a $71,000 pay
increase just months before she laid off 42 employees. Chinoda’s decision lies in the:
a.
domain of codified law.
b.
domain of free choice.
c.
domain of ethics.
d.
domain of social responsibility.
e.
none of these.
144
United States – BUSPROG: Ethics
United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
61. Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has
been cheating the company out of expense money. Sharon must decide whether or not to fire this employee. In this role,
Sharon is acting as:
a.
a moral agent.
b.
an ethical theorist.
c.
a symbolic leader.
d.
an authoritarian leader.
e.
an obstructive manager.
144
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United States – LA – DISC: Ethical Responsibilities
Bloom’s: Knowledge
62.
a.
b.
c.
d.
e.
145
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Bloom’s: Knowledge
63.
a.
b.
c.
d.
e.
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Bloom’s: Knowledge
64. 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.
145
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United States – LA – DISC: Ethical Responsibilities
65. Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on