57.
(p. 388)
The _____ was established in 1977 to help employees who blow the whistle on unethical
corporate practices.
A.
Government Accountability Project
B.
Project On Government Oversight
C.
Lloyd-La Follette Project
D.
Nonprofit Forum of Whistleblowers
58.
(p. 389)
The best solution against whistleblowing is:
A.
stating the terms of whistleblowing at the recruitment or induction stage.
B.
C.
declaring a moratorium on whistleblowing.
D.
discouraging whistleblowing through posters opposing it.
59.
(p. 390)
Which of the following managerial policies involves the use of the company’s budget for
personal expenses?
A.
Manipulation
B.
Favoritism
C.
Utilitarianism
D.
Fudging
60.
(p. 390)
Carol works as an operations manager for a reputed organization. She is aware that her
team members use the company’s budget to pay for their personal travel expenses. Which
of the following terms best describes this unethical practice?
A.
Fudging
B.
Social loafing
C.
Hacktivism
D.
Whistleblowing
Fill in the Blank Questions
61.
(p. 374)
_____ deals with standards of conduct and morals in a particular society.
Ethics
62.
(p. 380)
When one is trying to find an excuse for behavior that causes embarrassment, shame,
anxiety, or pain, it is called ____.
rationalization
63.
(p. 381)
_____ is the term used to refer to the practice of currying favor, or kissing up, with a
manager to achieve your own goals.
Boss massaging
64.
(p. 381)
A boss who is being massaged should make it clear that employees’ performance is based
on ____, and he should be consistent in the application of that philosophy.
merit
65.
(p. 382)
_____ results when people encounter someone in need and look the other way because
other people’s goals or a group’s pressures override the need.
Ethical conflict
66.
(p. 383)
Depending on the culture, those who are in the _____ could be family members, tribal
members, or trusted friends.
inner circle
67.
(p. 384)
The practice of future favors can be found in nearly any culture that respects the _____
concept.
inner circle
68.
(p. 384)
_____ is a practice commonly seen in developing countries based upon mutual obligation
and resulting in the exchange of favors over years and even generations.
Future favors
69.
(p. 384)
Gift exchange is a strong tradition in many cultures, in which giving gifts creates a _____ to
the receiver.
future obligation
70.
(p. 384)
_____ means putting ethical standards to work in all areas of the global community in which
you live.
Social responsibility
71.
(p. 385)
According to ____, the government and general public are responsible for solving social
problems, not companies.
traditional social responsibility
72.
(p. 385)
_____ refer to any group that a business interacts with, such as customers, competitors,
unions, suppliers, consumer groups, and government agencies.
Stakeholders
73.
(p. 385)
According to ____, a company is responsible not just to make a profit, but also to answer to
customers, competitors, unions, suppliers, consumer groups, government agencies, and so
on.
stakeholder social responsibility
74.
(p. 385–
386)
_____ holds that companies are not just responsible to their profit margin and their
stakeholders, but they are also responsible to the general public and society at large.
Affirmative social responsibility
75.
(p. 386)
People who volunteer for beach clean-up activities, recycling centers, child-mentoring
activities, and so on are demonstrating _____ at the individual level.
social responsibility
76.
(p. 387)
One strategy to counter unethical practices in the workplace is ____, which involves turning
in the offending person or people and exposing the truth.
whistleblowing
77.
(p. 387)
The first law passed to protect whistleblowers was the ____.
Lloyd-La Follette Act
78.
(p. 389)
The ethical tone of an organization nearly always originates in _____ and moves downward.
top management
79.
(p. 390)
_____ occurs when one employee is given extra privileges and allowances.
Favoritism
80.
(p. 390)
Managers should be careful not to set a bad example by engaging in ______; using
company expense budgets for items of doubtful use for the company.
fudging
Short Answer Questions
81.
(p. 374)
Define morality.
Morality deals with how behavior should generally conform to cultural ideals of right and
wrong. It represents broadly based, mostly unwritten standards of how people should
behave.
82.
(p. 374)
How is ethics different from law?
Ethics deals with the standards of conduct and morals in a particular society; in short,
ethics expresses the standards of right and wrong. Although both ethical standards and
laws are generally agreed upon within specific cultures, laws are different because they are
always set down in writing, and descriptions of them are available to the public. Ethics
violations are not always punishable, but violating the law carries specific penalties.
83.
(p. 374)
What is the common view on ethics and business?
The common public perception is that business and ethics never go together and it is
based on the misunderstanding that profit and morality simply do not mix, and that one
can’t make money without becoming corrupt.
84.
(p. 375)
What are the two major misperceptions that affect people’s understanding of ethics?
The two most common misperceptions that influence people’s understanding of ethics are:
(1) All ethical problems have simple solutions in which right and wrong are always obvious.
(2) Ethics is simply a matter of complying with a set of rules or regulations.
85.
(p. 376)
Briefly discuss the ethical challenges of the Internet.
The threats are as follows: potential for sexual harassment, improper contact with
competitors, people using illicit chat rooms, viewing or downloading pornography, and
employees sending out proprietary information over the Net. Purchasing confidential
information about people’s buying habits, transfer of confidential personal information, and
copyright infringement are the other challenges posed by the Internet.
86.
(p. 377)
What are ethical codes? What are the ethical approaches that form the basis for codes of
ethics like the one generated by Texas Instruments?
Ethical codes are formalized sets of ethical guidelines developed by some companies for
use at all levels of an organization. Codes of ethics like that of Texas Instruments are
usually based on one of the following ethical philosophies: principles of justice, individual
rights, utilitarianism, individualism, or the categorical imperative.
87.
(p. 377–
378)
Explain the principle of justice.
The principle of justice focuses on making sure that all decisions are consistent, unbiased,
and based on fact. For example, a manager using this principle would want to be certain
that he or she had all of the facts in a given case before making a decision. The judicial
systems of most countries are based on the principle of justice, including that of the United
States.
88.
(p. 379)
How is the principle of individual rights different from the principle of individualism?
The principle of individual rights focuses on basic human rights and the dignity of the
individual. Using this principle, a manager would never expect an employee to act in a way
that would deny the employee’s religious beliefs. The principle of individualism holds that a
person’s primary goal is to achieve long-term self-interests. Under this principle, a
corporate director would not engage in price-fixing.
89.
(p. 379)
What is the categorical imperative?
The categorical imperative is an ethical principle that results from the question, “What
would the world—or my company—be like if everyone were to do this?” This ethical idea
was developed years ago by philosopher Immanuel Kant. A person following the categorical
imperative would keep himself or herself from committing a crime by visualizing a world (or
even a neighborhood) where everyone commits that same crime regularly. The individual
would ask, “Would that be a world, or neighborhood, in which I would want to live?”
90.
(p. 379)
Illustrate the principle of utilitarianism with an example.
The principle of utilitarianism means making decisions that promise to do the greatest
good for the largest number of people. Sacrificing hundreds of soldiers for the overall good
of the country is an example of this principle at work.
91.
(p. 380)
What are the four basic rationalizations that prompt unethical behavior in the workplace, as
identified by management expert Saul Gellerman?
Management expert Saul Gellerman warns that unethical behavior in the workplace often
starts with one or more of four basic rationalizations:
(1) A belief that the unethical behavior is within ethical and legal limits.
(2) 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.
(3) A belief that nobody will notice.
(4) A belief that because the chosen behavior helps the company, the company will go
along with it and protect the person if he or she is caught.
92.
(p. 381)
How does self-esteem affect ethical behavior?
People with high self-esteem are more likely to feel good about themselves, which allows
them to not seek the short-term gains of unethical behavior and not engage in
rationalization to justify it. People with high self-esteem are also more likely to feel a
healthy connection with others around them, and so are more likely to act in a socially
responsible way.
93.
(p. 381)
When does “getting ahead in the company” become unethical?
When people compromise their own integrity to succeed at getting ahead in the company,
an important ethical line has been crossed. Boss massaging or the practice of currying
favor, or kissing up, with a manager to achieve one’s own goals is one of the most common
means of doing this.
94.
(p. 382)
Briefly discuss the roots of American values.
American values have their roots in the ancient cultures of Greece and Rome, as well as
that of the British Empire. Judeo-Christian religious influences have also been a large
factor, as are the U.S. Constitution and Bill of Rights.
95.
(p. 383)
How does tradition influence enforcement of law?
Any law is only as effective as its enforcement. If the community is the enforcer of law,
tradition would overcome any written law in most cases. In some countries in Africa, age–
old traditions that require payoffs are rooted in a communal heritage, and an entire tribe or
village benefits from such payoffs.
96.
(p. 383–
384)
Describe the concept of “the inner circle.”
Most communal societies make a strong distinction between insiders and outsiders. Those
who are in the inner circle are, depending on the culture, family members, tribal members,
or trusted friends. The possibility of unjust treatment toward outsiders is always a
consideration, and outsiders should watch carefully for this. In some inner circles, fairness
and kindness to those outside the circle are not considered to be necessary.
97.
(p. 384)
Define the concept of “future favors.” How is it different from the similar American
concept?
Within communities that respect the concept of inner circles, one will find the assumption
of future favors. The Japanese call it inner duty; in Kenya, it is known as inner relationship.
It translates into “I owe you; I pay you off. Now you owe me.” When a typical American
says, “I owe you one,” the seriousness with which such an expression is both meant and
understood is much less than in most developing countries.
98.
(p. 384)
Does gift exchange amount to bribery?
Americans who witness a gift exchange in another country may suspect bribery, but this
tradition of exchanging gifts goes back to ancient times. Although gift exchange does exist
in the Western world, the sense of obligation related to it is not nearly as strong. This
tradition is related to the concept of the inner circle, as the gift exchange is often the rite of
passage into that circle.
99.
(p. 385–
386)
Describe the three views of social responsibility.
Traditional social responsibility says that a company or organization is responsible only to
itself and to making a profit. Stakeholder social responsibility holds that companies are
responsible to stakeholders—that is, to any group they interact with as a business.
Affirmative social responsibility holds that companies are not just responsible to their profit
margin and their stakeholders, but they are also responsible to the general public and
society at large.
100.
(p. 387)
What is whistleblowing and how does the government protect whistleblowers?
Whistleblowing refers to the act of turning in or otherwise exposing people who behave
unethically in a company and exposing the truth. The first law passed to protect
whistleblowers was the Lloyd-La Follette Act of 1912, which protected federal employees
who gave information to Congress. Wider protection for those who blow the whistle on
dangerous, fraudulent, or unethical practices in their workplace has been in existence since
the 1970s. The Whistleblower Protection Act was passed in 1989 and strengthened in 1994.
In addition to federal laws, many individual states also have their own whistleblower
protection laws. The Whistleblower Protection Enhancement Act of 2007 was introduced
into Congress and was signed into law in November 2012.