Chapter 15 Business Ethics and Social Responsibility
True / False Questions
1.
(p. 374)
Ethics deals with how behavior should generally conform to cultural ideals of right and
wrong.
FALSE
2.
(p. 374)
Ethics and morality are not identical concepts.
TRUE
3.
(p. 374)
Morality deals with the standards of conduct and morals in a particular society.
FALSE
4.
(p. 374)
Laws are different from moral standards because they are always set down in writing, and
descriptions of them are available to the public.
TRUE
5.
(p. 374)
The common perception is that profit and morality simply do not mix, and that one can’t
make money without becoming corrupt.
TRUE
6.
(p. 375)
A general fact about ethical problems is that they have simple solutions in which right and
wrong are always obvious.
FALSE
7.
(p. 375)
A common misconception is that ethics is just a matter of complying with a set of rules and
regulations.
TRUE
8.
(p. 375)
The most ethical course of action is always clear-cut and obvious.
FALSE
9.
(p. 376)
Copyright infringement is one of the leading issues in Internet ethics.
TRUE
10.
(p. 377)
Value statements are formalized sets of ethical guidelines developed by some companies
for use at all levels of an organization.
FALSE
11.
(p. 377)
Codes of ethics are based on the principles of justice.
TRUE
12.
(p. 377)
The principle of justice focuses on making sure that all decisions are consistent, unbiased,
and based on fact.
TRUE
13.
(p. 379)
The principle of individualism focuses on basic human rights and the dignity of the
individual.
FALSE
14.
(p. 379)
The principle of utilitarianism means making decisions that promise to do the greatest
good for the largest number of people.
TRUE
15.
(p. 379)
The principle of justice is an ethical principle that results from the question, “What would
the world—or my company—be like if everyone were to do this?”
FALSE
16.
(p. 380)
Rationalizing is the preferred way to handle an unethical situation or incident.
FALSE
17.
(p. 380)
One of the four basic rationalizations that leads to unethical behavior is that they are within
ethical and legal limits.
TRUE
18.
(p. 380)
One of the four basic rationalizations that leads to unethical behavior is the belief that
nobody will notice.
TRUE
19.
(p. 380)
Rationalization is often done with conscious thought.
FALSE
20.
(p. 381)
People with high self-esteem are more likely to seek the short-term gains of unethical
behavior.
FALSE
21.
(p. 381)
People with high self-esteem are more likely to feel a healthy connection with others
around them.
TRUE
22.
(p. 381)
Most people do not judge those who play “boss massaging” because it is so common.
TRUE
23.
(p. 381)
People who find themselves in a boss massaging situation should remember that no one
can force them to act unethically.
TRUE
24.
(p. 382)
Research by social scientists shows that many people change their ethical standards
between home and work.
TRUE
25.
(p. 382)
If compromise is necessary to continue as an employee, make sure that the compromise
translates into a tangible gain for your personal or professional future.
FALSE
26.
(p. 383)
The values and customs of countries other than those of the western developed world are
inferior, primitive, or degraded.
FALSE
27.
(p. 383)
If the community is the enforcer of law, one can easily see why tradition would overcome
any written law in most cases.
TRUE
15-5
28.
(p. 384)
Future favors refer to the practice of currying favor with a manager to achieve one’s own
goals.
FALSE
29.
(p. 384)
The practice of future favors can be found in cultures that ignore the inner circle concept.
FALSE
30.
(p. 387)
Whistleblowing refers to the practice of turning in the offending person or people and
exposing the truth.
TRUE
Multiple Choice Questions
31.
(p. 374)
Ethics:
A.
merely deals with an organization’s performance guidelines.
B.
addresses the deeper issues of fairness, equity, and compromise.
C.
deals with how behavior should generally conform to cultural ideals.
D.
refers to disciplinary practices mandated by the safety requirements of a company.
32.
(p. 374)
_____ deals with how behavior should generally conform to cultural ideals of right and
wrong.
A.
Social responsibility
B.
Fudging
C.
Ethics
D.
Morality
33.
(p. 374)
Laws are different from ethical standards because:
A.
laws are based on common knowledge, while ethics is a subject of study and
contemplation.
B.
laws are specific codes of conduct while ethics deals with how behavior should
generally conform to cultural ideals of right and wrong.
C.
law violations carry specific penalties, while ethics violations are not always punishable.
D.
laws refer to specific acts, but ethics is more of a feeling.
34.
(p. 374)
The common perception that business and ethics do not go together is based on the
misunderstanding that:
A.
one cannot make money in business without being corrupt.
B.
it is difficult to pin down when ethics violations occur.
C.
one cannot mix ethics that is rooted in religion with business.
D.
it is not always possible to punish ethical violations.
35.
(p. 375)
Even the most ethical people are sometimes faced with ethical and moral dilemmas
because:
A.
ethical issues require expert knowledge to help identify the right course of action.
B.
ethical violations are very easy to spot.
C.
ethical violations are easily punishable.
D.
ethical courses of action aren’t always clear-cut and obvious.
36.
(p. 377)
_____ are formalized sets of guidelines, which deal with the standards of conduct and
morals in a particular society, developed by some companies for use at all levels of an
organization.
A.
Articles of association
B.
Mission statements
C.
Ethical codes
D.
Value statements
37.
(p. 377)
The _____ is an ethical philosophy that holds that all decisions should be consistent,
unbiased, and based on fact.
A.
principle of justice
B.
principle of utilitarianism
C.
principle of individualism
D.
principle of relativity
38.
(p. 379)
The principle of utilitarianism focuses on making sure that:
A.
all decisions are consistent, unbiased, and based on fact.
B.
all decisions should do the greatest good for the largest number of people.
C.
all primary goals should achieve long-term self-interests.
D.
all members have easy and fast access to legal assistance.
39.
(p. 379)
The principle of _____ holds that a person’s primary goal is to achieve long-term self-
interests.
A.
utilitarianism
B.
individual rights
C.
relativity
D.
individualism
40.
(p. 379)
Which of the following questions forms the basis for the categorical imperative?
A.
What should I expect in return for a future favor?
B.
What would the world—or my company—be like if everyone were to do this?
C.
What is the right course of action in a situation like this?
D.
What financial benefit will I receive if I go ahead with this decision or action?
41.
(p. 380)
According to Saul Gellerman, unethical behavior in the workplace often starts with any of
these rationalizations EXCEPT:
A.
a belief that the unethical behavior is within ethical and legal limits.
B.
a belief that because the chosen behavior will work for the best interest of either the
individual or the company, the company would expect that it be carried out.
C.
a belief that the behavior is the only course of action available for the situation.
D.
a belief that because the chosen behavior helps the company, the company will go
along with it and protect the person.
42.
(p. 380)
_____ is a term that means finding an excuse for behavior that causes embarrassment,
shame, anxiety, or pain.
A.
Whistleblowing
B.
Rationalizing
C.
Dissonance reduction
D.
Social loafing
43.
(p. 381)
People with high self-esteem:
A.
tend to seek the short-term gains of unethical behavior.
B.
engage in rationalization to justify unethical behavior.
C.
seldom feel good about themselves.
D.
are more likely to act in a socially responsible way.
44.
(p. 381)
A piece of advice for people who find themselves having to employ boss massaging is to:
A.
seek the short-term gains of unethical behavior.
B.
remember that no one can force them to act unethically.
C.
justify an action that seems unethical.
D.
mentally manipulate the facts.
45.
(p. 382)
Which of the following statements is true of the influence of group goals?
A.
People who have learned helping behavior in their families and communities do not face
difficulties transferring those behaviors to the workplace.
B.
There is no evidence suggesting that people change their ethical standards between
home and work.
C.
When encountering someone in need, many people look the other way because other
people’s goals or a group’s pressures override the need.
D.
Employees seldom need to examine how their personal ethics fit into the ethics of the
firm.
46.
(p. 383)
_____ refers to a clique of trusted family members, tribal members, or friends who are at
the center of power or influence.
A.
Trust territory
B.
Inner circle
C.
Power group
D.
Primary network
47.
(p. 384)
Which of the following statements is true of future favors?
A.
This practice is called inner duty by the Kenyans and inner relationship by the
Japanese.
B.
This practice refers to the use of company expense budgets for items of doubtful use to
the company.
C.
This practice translates into “making decisions that promise to do the greatest good for
the largest number of people.”
D.
This practice can be found in nearly any culture that respects the inner circle concept.
48.
(p. 384)
_____ is a practice seen in developing countries based upon mutual obligation and resulting
in the exchange of privileges over years and even generations.
A.
Laissez faire
B.
Future favors
C.
Whistleblowing
D.
Categorical imperative
49.
(p. 384)
Gift exchange is a strong tradition in many cultures, in which giving gifts creates a _____ to
the receiver.
A.
partnership invitation
B.
future obligation
C.
status statement
D.
sense of responsibility
50.
(p. 384)
Which of the following terms refers to putting ethical standards to work in all areas of the
global community in which the individual lives?
A.
Social responsibility
B.
Hacktivism
C.
Best practices
D.
Moral responsibility
51.
(p. 385)
Traditional social responsibility says that a company or organization:
A.
is responsible for generating more jobs for the general public.
B.
is responsible to the stakeholders of the organization.
C.
is responsible to the government and general public.
D.
is responsible only to itself and to making a profit.
52.
(p. 385)
Which of the following views on social responsibility is based mostly on materialistic ideals
that emerged with the Industrial Revolution in the late 1880s when large corporations were
first formed?
A.
Traditional social responsibility
B.
Corporate social responsibility
C.
Stakeholder social responsibility
D.
Affirmative social responsibility
53.
(p. 385)
_____ holds that companies are responsible to any group they interact with as a business.
A.
Traditional social responsibility
B.
The practice of hacktivism
C.
Stakeholder social responsibility
D.
The practice of fudging
54.
(p. 385)
Which of the following is the most broadly based perspective of social responsibility?
A.
Traditional social responsibility
B.
Individual social responsibility
C.
Stakeholder social responsibility
D.
Affirmative social responsibility
55.
(p. 385–
386)
According to ____, companies would be expected to avoid creating social problems such as
pollution and poverty, and to work toward goals that improve conditions for everyone.
A.
reciprocal social responsibility
B.
traditional social responsibility
C.
affirmative social responsibility
D.
private social responsibility
56.
(p. 387)
Which of the following refers to the practice of turning in or otherwise exposing people who
behave unethically in your company?
A.
Social loafing
B.
Scapegoating
C.
Ostracizing
D.
Whistleblowing