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b. self-concept
c. personal ability
d. self-awareness
59. ______ is the process of justifying our unethical behavior so that we do not have to
feel bad.
a. Perseverating
b. Distorting
c. Excusing
d. Rationalizing
60. ______ refers to distinguishing right from wrong and choosing to do the right thing.
a. Ethical choices
b. Personality traits
c. Moral development
d. The golden rule
61. All of the following are situations in which unethical behavior is more likely, EXCEPT
when ______.
a. employees are supervised in a noncompetitive situation
b. performance falls below aspiration levels
c. unethical behavior is not punished
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d. there is no formal ethics policy
62. Which of the following is the first of the four questions in the four–way test?
a. Is it fair to all concerned?
b. Would I be proud to tell relevant stakeholders my decision?
c. Is it the truth?
d. Will it build goodwill and better friendship?
63. ______ means trying to creating a win-win situation for all relevant stakeholders so
that everyone benefits from the decision.
a. Code of ethics
b. Stakeholders’ approach to ethics
c. The golden rule
d. Social responsibility
64. The collective behavior by ______ establishes a company’s ethical conduct.
a. top management
b. stakeholders
c. employees
d. stockholders
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65. ______ hold(s) the ultimate responsibility for the ethical behaviors in an
organization.
a. Management
b. The employees
c. Human resources
d. Stakeholders
66. Jela works for a company that creates parts for playground slides. He noticed that
during production, several parts were not passing necessary tests to ensure top-notch
safety requirements. When he told his manager, she said not to worry about it because
it was only a few of them and no one would notice. Jela believed this to be wrong and
went to the media with this information. Jela is an example of a(n) ______.
a. mole
b. whistle-blower
c. instigator
d. informant
67. Employees should be encouraged to expose what they believe to be unethical
behavior by their fellow employees. This is called ______.
a. social responsibility
b. whistle-blowing
c. ethical reporting
d. social auditing
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68. Joaquin, the human resource manager for his company, is reviewing current laws
and ethics with three of his employees who will be travelling overseas for a nine-month
business partnership with a foreign company. The laws they are reviewing are only
accountable to U.S. companies regarding bribery. What act is Joaquin reviewing with
his employees?
a. FICA
b. FERPA
c. FMLA
d. FCPA
69. After the oil spill by BP in the Gulf of Mexico, BP began cleaning up the shores and
investing their time and money in the affected ports, cities, and businesses in order to
regain more customers again. This is an example of ______.
a. corporate social responsibility
b. total quality management
c. ethical relations
d. social quality management
70. Social responsibility is the conscious effort to operate in a manner that creates a
win-win situation for ______.
a. all shareholders
b. all stakeholders
c. all employees
d. the organization
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71. Joaquin is a human resource manager for a midsize corporate firm. The recent
construction project that was completed in his department has been approved by the
rest of the corporation because of his energy-saving improvements, which are providing
an overall reduction of natural resources by the firm. The project was a win-win for all
the stakeholders. This is considered to be ______.
a. social responsibility
b. total quality management
c. resource optimization
d. competitive advantage
72. Abijah founded his for-profit company on the principle that businesses can, and
should, contribute to solving social problems, such as working towards a cleaner
environment. His company went through a certification process in which it demonstrated
its ability to operate in such a way that the interests of all stakeholders are taken into
consideration. As a result of this process, his company was certified as a ______.
a. E Corp
b. B Corp
c. S Corp
d. C Corp
73. CSR has been called enlightened self-interest because firms will be motivated to
engage in CSR activities when ______.
a. customers demand it
b. competitors engage in similar activities
c. laws are passed that require it
d. the benefits outweigh the costs
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74. When Walmart stated that it would cut nearly 20 million metric tons of greenhouse
gas emissions from its supply chain, it pressured all of the suppliers to meet its ______
standards.
a. ethical
b. sustainability
c. performance
d. LEED
75. ______ meets the needs of the present world without compromising the ability of
future generations to meet their own needs.
a. Moral development
b. Sustainability
c. Global sourcing
d. Social responsibility
76. Joaquin is a human resource manager for a midsize corporate firm. He recently had
improvements done to his offices that have saved the company more than 25% of
operating costs due to the energy-saving upgrades. Joaquin is now trying to convince
the rest of the department managers to commit to similar improvements. Joaquin is
advocating for ______.
a. company performance
b. company sustainability
c. company LEED
d. customer value
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77. Socially responsible managers focus on measuring profits, corporate social
responsibility, and environmental impact. This is sometimes referred to as the ______.
a. triple measures of success
b. triple outcomes assessment
c. triple bottom line
d. triple stakeholder benefit
78. The importance of sustainability management is reflected in a new corporate title
that has emerged.
a. chief sustainability officer
b. chief environmental officer
c. vice president for sustainability
d. corporate sustainability officer
79. Which of the following is NOT one of the levels of corporate social responsibility?
a. legal
b. ethical
c. benevolent
d. philanthropic
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True/False
1. The five components of internal environment are mission, value, system processes,
resources, and organization.
2. Stakeholders are people whose interests are affected by organization behavior.
3. Customers, competition, and the economy are all task factors.
4. An organization’s culture is manifested in the key values and principles that leaders
preach and practice and in its employees’ attitudes and behavior.
5. Behaviors are typically the hardest part of an organization’s culture to change.
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6. Strengthening an organizational culture is not a program with a starting and ending
date; it is an ongoing process.
7. It is possible for a business to obey government laws and regulations and still behave
unethically.
8. The individualism view of ethics focuses on protecting the privileges of individuals,
such as their right to speak freely.
9. The utilitarian view of ethics focuses on making decisions that create the greater
good.
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10. The justice view of ethics focuses on making decisions that are in keeping with
existing laws and regulations.
11. Because of their personalities, some people have a higher level of ethics than
others.
12. People are more likely to behave unethically if they see that unethical behavior goes
unpunished.
13. The existence of a formal ethics policy in an organization does not reduce unethical
behavior.
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14. People are more likely to report unethical behavior when the violation is less
serious.
15. People are less likely to report unethical behavior when the person committing the
violation is a friend.
16. Most religions have some variation of the Golden Rule.
17. The four-way test includes the question, “Would I be proud to tell relevant
stakeholders my decision?”
18. Research shows that making a decision without using an ethical guide leads to less
ethical choices.
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19. A code of ethics is also considered a code of conduct.
20. Businesses can’t always create a win-win for all stakeholders because the
stakeholders often have conflicting objectives.
21. There is a clear and easily measured positive impact of corporate social
responsibility on corporate profits.
22. A firm can be between levels of corporate social responsibility or be on different
levels for different issues.
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23. A statement on Ben & Jerry’s website says: “Through our business, partnerships
and advocacy, we will seek ways to organize, educate and mobilize citizens at the
grassroots level in support of peace-building efforts, and to celebrate peace-building
efforts around the world.” Based on this, it would be most appropriate to categorize the
company as one that operates at the ethical level of corporate social responsibility.
24. From 1948 to 1996, liquor companies voluntarily refrained from advertising hard
liquor products on television. Based on this, it would be most appropriate to categorize
the companies in this industry as operating during that time period at the benevolent
level of corporate social responsibility.
25. CSOs are in charge of the corporation’s environmental programs.
26. Unlike the United States, trust in business is hard across other countries, including
those in Europe and Asia.
27. One of the difficulties inherent in addressing ethics in a global external environment
is that with specific country characteristics come varying ethical standards.
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Essay
1. List and describe the five internal environmental factors.
2. Using your school as an example, describe the four components of the systems
process. Be sure to explain where you, the student, fit in the overall process.
3. Describe how the nine external environmental factors can affect the internal business
environment.
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4. You have been the manager of a popular night club for the past three years. The
night club industry is highly vulnerable to the external environment. Please select and
discuss one task factor and one general factor that you think are most important to this
industry.
5. Describe the three levels of organizational culture and their relationship to each other.
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6. Explain the difference between strong and weak cultures.
7. You have recently come on board as manager of a local non-profit that works to help
adopted children find their birth parents. Though the organization serves a strong
purpose and has a very high success rate, the culture of the organization is weak.
Please offer a brief plan to strengthen the culture of the organization.
8. Compare the three views of ethics.
9. Explain the stakeholders’ approach to ethics.
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10. You recently have been promoted to the position of lead manager at a local casino.
In your position, you are responsible for auditing the daily intakes from all of the poker
tables. Because you started as a poker dealer, you know how easy it is to pocket chips
and then cash them in and since you have a good relationship with your team, you
know you could take this opportunity to make some extra cash. Just in case you were
tempted to run this scam, which of the five simple guides for ethical behavior would you
call on to not take the chips?
11. Give some examples of how all companies need to be socially responsible to
external environmental stakeholders.
12. Identify and define the three levels of corporate social responsibility. Give at least
one example for each.
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