e.
assess the ethical intensity of an issue
55. __________ integrity tests indirectly estimate employee honesty by measuring psychological traits.
a.
Overt
b.
Psychographic-based
c.
Covert
d.
Personality-based
e.
Attitudinal
56. According to the What Really Works, “Integrity Tests,” overt integrity tests are LEAST effective in
predicting:
a.
overall workplace deviance
b.
employee theft
c.
job performance
d.
drug abuse
e.
workplace violence
57. According to the What Really Works, “Integrity Tests,” overt integrity tests are MOST effective in
predicting:
a.
job performance
b.
employee theft
c.
overall workplace deviance
d.
employ pilferage
e.
organizational culture compatibility
58. When the Chicago-based Club Aluminum Company was facing bankruptcy, one of the changes its
new CEO made was to create a(n) __________ for all employees to follow in their business and
professional lives. It read, “Of the things we think, say, and do: (1) Is it the truth? (2) Is it fair to all
concerned? (3) Will it build goodwill and better friendships? (4) Will it be beneficial to all
concerned?”
a.
overt statement of integrity
b.
new vision
c.
mission statement of principle
d.
statement of utilitarianism
e.
code of ethics
59. The Code of Ethics for members of the Society of American Foresters instructs them to protect and
serve society by inspiring, guiding, and governing members in the conduct of their professional lives.
In addition, the society’s code of ethics should:
a.
include standards and procedures specific to the forestry industry
b.
demonstrate postconventional morality
c.
determine what ethical principle will guide the actions of foresters
d.
remain general in nature
e.
show how the society engages in discretionary responsibility
60. Which of the following is an objective of ethics training?
a.
to develop employee awareness about ethics
b.
to push ethics training throughout the entire organization
c.
to teach employees a practical model of ethical decision making
d.
to achieve credibility with employees
e.
to achieve all of these
61. All of the following are important factors in the creation of an ethical business climate EXCEPT:
a.
personal examples set by company management
b.
approval of the company’s ethics code by government regulators
c.
fair but consistent punishment of violators
d.
a reporting system that encourages whistleblowers to report potential ethics violations
e.
top management’s active involvement in ethics training program
62. The last step in the basic model of ethical decision making is to:
a.
monitor the results
b.
determine benchmarks
c.
act
d.
make a choice
e.
select an ethical leader
63. After identifying the problem in the basic model of ethical decision making, the next step is to:
a.
diagnose the situation
b.
identify the constituents
c.
determine alternative solutions
d.
analyze your options
e.
create a forecast of what is to be accomplished
64. The basic model of ethical decision making:
a.
has five steps
b.
provides a method for analyzing the ethical climate
c.
can be used to determine which principle of ethical decision making is appropriate to the
situation
d.
begins with a diagnosis of the situation
e.
is accurately described by none of these
65. In May 2005, U.S. Attorney Michael J. Sullivan announced the United States had settled civil claims
arising out of a suit that alleged Oracle Corporation had violated the False Claims Act in connection
with billing the federal government for software training services. The U.S. government learned
about the overcharging from a former Oracle vice president. The vice president acted as a(n):
a.
whistleblower
b.
ethical ombudsman
c.
secondary stakeholder
d.
covert stakeholder
e.
secondary shareholder
66. Former Wal-Mart vice chairman Tom Coughlin allegedly engineered to defraud the company for
personal gain. Operations vice president Jared Bowen asserted that information he provided to
Wal-Mart spawned the investigation that led to the discovery of Coughlin’s activities. Bowen sued
Wal-Mart because they fired him. His lawsuit is an example of:
a.
the importance of discretionary responsibility
b.
a problem with too specific codes of ethics
c.
one of the problems of being a whistleblower
d.
creating a sustainable ethical climate
e.
performing the functions of an ethical ombudsman
67. Back in 1995, Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver,
became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like
room to a “soft room” protected by drywall that you could punch a hole through. Graf eventually had
to take his concerns to the media before the plutonium was stored once again in a safe location. Graf
was a(n):
a.
whistleblower
b.
ethical ombudsman
c.
secondary stakeholder
d.
covert stakeholder
e.
secondary shareholder
68. Why is it often difficult for an employee to assume the role of whistleblower?
a.
because managers have such broad spans of management
b.
because the employee is often the one punished
c.
because of organizational decentralization
d.
due to employee empowerment
e.
due to the U.S. Sentencing Commission Guidelines
69. Which of the following statements about whistleblowing is true?
a.
Whistleblowing refers to reporting others’ ethics violations.
b.
Whistleblowing is very difficult for most people to do.
c.
Potential whistleblowers often fear that they will be punished.
d.
Many federal and state laws protect the rights of whistleblowers.
e.
All of these statements about whistleblowing are true.
70. What is social responsibility?
a.
a business’s obligation to pursue policies, make decisions, and take actions that benefit
society
b.
a business tactic used to create relationship bonds with customers
c.
what companies are obliged legally to do to protect their external environments
d.
a business’s responsibility to its shareholders
e.
the fact businesses are responsible for monitoring their social environments so they can
satisfy the needs of their customers
71. Kowalski’s Markets expanded in 2002 by purchasing four existing stores. One of the stores was
located in Minneapolis’s Camden neighborhood, a lower–class community unlike the store’s typical
upscale customer demographic. Rather than sell the property, the owners decided they had a(n) ______
to provide a neighborhood grocery store to that community.
a.
equitable responsibility
b.
stakeholder responsibility
c.
fiscal responsibility
d.
organizational responsibility
e.
social responsibility
72. In an article about BP Amoco, its CEO said that BP Amoco’s commitment to ___________ is all
about trying to align its policies, values, and behavior with those of the societies in which it operates
because ultimately, superior performance means being in touch.
a.
social consensus
b.
social munificence
c.
social responsibility
d.
shareholder responsibility
e.
social proximity
73. In 2001, Indonesia had ramin wood listed as an endangered species. Thus, the exporting of this wood
must be regulated by the government. (Ramin is used to make pool cues and picture frames.) In spite
of attempts to control the sale of ramin wood, the wood is still being carried across Indonesia’s
national borders and sold in Malaysia where government officials pretend the wood was legally
acquired. The Malaysian government is ignoring its:
a.
responsibility to provide equitable justice
b.
stakeholder responsibility
c.
fiscal responsibility
d.
organizational responsibility
e.
social responsibility
74. When a country is exporting new pharmaceuticals to developing countries, they have a much greater
_____ than when they are producing drugs for developed nations. In developing countries, limited
systems exist for picking up drug side-effects; therefore, drug companies must be vigilant and create
their own monitoring systems.
a.
social consensus
b.
social munificence
c.
social responsibility
d.
shareholder responsibility
e.
social proximity
75. Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all
international manufacturers of rubber chemicals. They have all been indicted as participants in a
price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other
products. They could use the _____ model to justify their actions.
a.
economic
b.
stakeholder
c.
shareholder
d.
accounting
e.
fiscal
76. The __________ model holds that the only social responsibility that businesses have is to maximize
profits.
a.
economic
b.
stakeholder
c.
shareholder
d.
accounting
e.
fiscal
77. According to Milton Friedman, which of the following is a position opposing the stakeholder model of
corporate social responsibility?
a.
Organizations can act effectively as moral agents for all company shareholders.
b.
The time, money, and attention diverted to social causes undermine market efficiency.
c.
It is socially responsible for companies to divert their efforts to social causes.
d.
The marketplace will ultimately determine the importance of social causes.
e.
All of these positions are in accordance with the beliefs of Milton Friedman.
78. In 2001, Indonesia had ramin wood listed as an endangered species. Thus, the exporting of the wood
must be regulated by the government. (Ramin is used to make pool cues and picture frames.) In spite
of attempts to control the sale of ramin wood, the wood is still being carried across Indonesia’s
national borders and sold in Malaysia where government officials pretend the wood was legally
acquired. Loggers of ramin wood and those that buy the wood illegally in Malaysia are examples of:
a.
indirect investors
b.
discretionary agents
c.
organizational gatekeepers
d.
shareholders
e.
stakeholders
79. Many passengers are disturbed by the lack of basic safety guidelines for airplanes flying in and out of
the airports in Brazil. Airline passengers are _____ for those airline companies that fly into and out of
Brazil.
a.
primary stakeholders
b.
secondary stakeholders
c.
functional shareholders
d.
conventional stakeholders
e.
reactive shareholders
80. Which of the following is NOT an example of a stakeholder group that an organization must satisfy to
assure long-term survival?
a.
investors
b.
customers
c.
the media
d.
employees
e.
governments
81. Kowalski’s Markets expanded in 2002 by purchasing four existing stores. One of the stores was
located in Minneapolis’s Camden neighborhood, a lower–class community unlike the store’s typical
upscale customer demographic. Rather than sell the property, the owners decided they had an
obligation to provide a neighborhood grocery store to that community. Which of the following is an
example of a primary stakeholder group for Kowalski’s markets?
a.
community activists
b.
city licensing agencies
c.
customers in the Camden neighborhood
d.
newspapers that carry ads for stores
e.
all of these
82. The two general categories of stakeholders are __________ stakeholders and __________
stakeholders:
a.
primary; secondary
b.
reactive; proactive
c.
business; nonbusiness
d.
relevant; irrelevant
e.
pioneering; selective
83. __________ stakeholders are groups, such as shareholders, employees, customers, suppliers,
governments, and local communities, on which the organization depends for long-term survival.
a.
Primary
b.
Secondary
c.
Functional
d.
Conventional
e.
Proactive
84. According to the __________ model, management’s most important responsibility is long-term
survival (not just maximizing profits), which is achieved by satisfying the interests of multiple
corporate stakeholders.
a.
economic
b.
stakeholder
c.
societal
d.
social welfare
e.
shareholder
85. Which of the following is an example of a stakeholder group that an organization must satisfy to
assure long-term survival?
a.
suppliers
b.
customers
c.
employees
d.
governments
e.
all of these
86. According to the stakeholder model, which primary stakeholder group is theoretically most important
to the company?
a.
investors
b.
customers
c.
suppliers
d.
employees
e.
it depends on the stage of the company
87. Secondary stakeholders are important to a company because:
a.
it depends on them for long-term survival
b.
they can affect public perceptions and opinions
c.
the company is endangered by a termination of their relationship
d.
they have the direct power to control management decisions
e.
they create an awareness of overt organizational integrity
88. __________ stakeholders are any groups that can influence or be influenced by the company and can
affect public perceptions about its socially responsible behavior.
a.
Primary
b.
Secondary
c.
Covert
d.
Conventional
e.
Reactive
89. Kowalski’s Markets expanded in 2002 by purchasing four existing stores. One of the stores was
located in Minneapolis’s Camden neighborhood, a lower-class community unlike the store’s typical
upscale customer demographic. Rather than sell the property, the owners decided they had an
obligation to provide a neighborhood grocery store to that community. Which of the following is an
example of a secondary stakeholder group for Kowalski’s Markets?
a.
animal rights organization protesting the sale of live lobsters
b.
Kowalski’s Markets’ customers
c.
employees of Kowalski’s Markets
d.
investors in Kowalski’s Markets
e.
wholesalers who supply the products sold in Kowalski’s Markets
90. Under the stakeholder model, ___________ would be an example of a stakeholder group that does not
engage in regular transactions with the company and is not critical to its long-term survival, but can
still affect public perceptions and opinions about the company’s socially responsible behavior
a.
the media
b.
suppliers
c.
governments
d.
employees
e.
shareholders
91. Which of the following is a secondary stakeholder group?
a.
governments
b.
suppliers
c.
the media
d.
employees
e.
shareholders
92. When media in India informed the public that Coca-Cola products bottled in India contained a high
level of certain cancer-causing pesticides, they were acting in the role of:
a.
overt constituents
b.
covert constituents
c.
secondary shareholders
d.
secondary stakeholders
e.
functional customers
93. Video Arts Inc., a Chicago-based business training company, is currently marketing The Grapevine, a
30-minute training video designed to teach companies how to deal with and prevent damaging gossip.
Which of the following is an example of a secondary stakeholder group for Video Arts?
a.
companies that use the video for training
b.
actors in the video
c.
distributors of the training video
d.
the company’s top managers
e.
business magazines that run ads for the training video
94. Shell’s efforts to sink Brent Spar, an abandoned offshore oil-storage buoy, got derailed by Greenpeace
in Germany, which mounted a well-orchestrated public relations blitz that caused Shell’s gasoline
sales to plunge by 50 percent at some German stations. This is an example of how __________
stakeholders can influence organizational strategy.
a.
covert
b.
functional
c.
situational
d.
reactive
e.
secondary
95. Historically, __________ responsibility means making a profit by producing a product valued by
society. It has been business’s most basic social responsibility.
a.
discretionary
b.
ethical
c.
legal
d.
fiscal
e.
economic
96. In 2001, Indonesia had ramin wood listed as an endangered species. Thus, the exporting of the wood
must be regulated by the government. (Ramin is used to make pool cues and picture frames.) In spite
of attempts to control the sale of ramin wood, the wood is still being carried across Indonesia’s
national borders and sold in Malaysia where government officials pretend the wood was legally
acquired. Companies that buy the illegally gotten wood in Malaysia are ignoring their __________
responsibility to society.
a.
economic
b.
ethical
c.
legal
d.
discretionary
e.
fiscal
97. Rotavirus is a gastrointestinal disease that causes only a few deaths in the U.S., but up to 500,000
deaths annually in developing countries. The vaccine for preventing the disease was proven to cause
an extremely rare but serious side effect, so its manufacturer stopped producing it. If the manufacturer
decided that to avoid any potential liability, it would never produce the drug again despite need for it
in developing countries, it might be acting at what level of ethical responsibility?
a.
discretionary
b.
ethical
c.
legal
d.
fiscal
e.
economic
98. For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and
Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. But that wasn’t
enough for AIDS prevention groups, which were outraged by GSK’s decision to use the World Trade
Organization’s (WTO’s) patent protection rules to take action against governments importing
lower-cost versions. By using the WTO’s regulation, AIDS prevention groups saw GSK acting at
which level of social responsibility?
a.
economic
b.
fiscal
c.
legal
d.
discretionary
e.
accommodative
99. A consumer advocacy group is critical of ads by the U.S. Postal Service that claim its Priority Mail is a
low-cost, two-day service while failing to disclose that first-class letters generally reach their
destination just as quickly and for a tenth the cost. The consumer advocacy group wants the USPS to
take __________ responsibility for its actions and do what is right.
a.
utilitarian
b.
fiscal
c.
legal
d.
ethical
e.
discretionary
100. Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all
international manufacturers of rubber chemicals. They have all been indicted as participants in a
price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other
products. These companies ignored their _____ responsibility to society.
a.
economic
b.
ethical
c.
legal
d.
discretionary
e.
fiscal
101. In 2005, 3M ran a “Stick up for the Cause” campaign in which it donated part of the October sales of
its Post-It notes to the City of Hope, a cancer research organization. With this charitable campaign,
3M was emphasizing its _____ responsibility to society.
a.
economic
b.
ethical
c.
legal
d.
discretionary
e.
fiscal
102. __________ are the expectations that a company will voluntarily serve a social role beyond its
economic, legal, and ethical responsibilities.
a.
Stakeholder responsibilities
b.
Overt responsibilities
c.
Discretionary responsibilities
d.
Social expectations
e.
Stakeholders’ expectations
103. Companies are not considered unethical if they do not perform their __________ responsibilities.
a.
legal
b.
fiscal
c.
discretionary
d.
overt
e.
economic
104. Which of the following statements about social responsibility is true?
a.
Companies are viewed as having social responsibilities in economic, legal, and ethical
areas.
b.
The relative importance of economic, legal, ethical, and discretionary responsibilities is
fixed and unchanging over time.
c.
Economic and legal responsibilities play a larger role in a company’s social responsibility
than do ethical and discretionary responsibilities.
d.
Companies will be considered unethical if they do not perform their discretionary
responsibilities.
e.
Economic responsibilities are often referred to as fiscal responsibilities.
105. Lever’s most successful product in India is Fair & Lovely, a skin whitening agent that is sold to
dark-skinned women in India to help them find a better husband and a better job. Lever is emphasizing
its __________ responsibility to make a profit and ignoring its __________ responsibilities to help
women realize that their appearances are superficial.
a.
legal; ethical
b.
discretionary; ethical
c.
economic; legal
d.
economic; fiscal
e.
economic; discretionary
106. For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and
Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. By providing the
drugs at a fraction of their usual costs, GSK was acting at which level of social responsibility?
a.
discretionary
b.
global
c.
altruistic
d.
economic
e.
legal
107. When media in India informed the public that Coca-Cola products bottled in India contained a high
level of certain cancer-causing pesticides, Coke responded by saying that all of India’s water was
contaminated and that it was not doing anything wrong by using the local water supply. What kind of a
strategy did Coke use to respond to its social responsibility problems?
a.
reactive strategy
b.
prospective strategy
c.
defensive strategy
d.
accommodative strategy
e.
proactive strategy
108. Patagonia, which manufactures outdoor clothing and gear, has developed a new, more environmentally
friendly method of preparing wool for its products. The company chose to adopt this method and other
techniques for reducing environmental harm because it acts at the _____ level of social responsibility.
a.
discretionary
b.
ethical
c.
legal
d.
fiscal
e.
economic
109. Much of the winter sports clothing manufactured and sold by Patagonia uses polyester fill. In 1996, the
company developed a method for almost endless recycling of polyester to match its environmental
attitude toward manufacturing. Patagonia appears to use a(n) _____ strategy.
a.
reactive
b.
prospective
c.
defensive
d.
accommodative
e.
proactive
110. A U.S. metals broker advertises, “95 percent of orders shipped from stock” even though the company
has no warehouses and no inventory. When questioned about the falseness of the ad, the broker
responded, “We do ship 95 percent of our orders from stock, but it is from suppliers’ stocks, not ours.”
To respond to this ethical question, the broker used a(n) __________ strategy.
a.
reactive
b.
offensive
c.
accommodative
d.
proactive
e.
prospective
111. Bayer AG was indicted as a participant in an international price-fixing scheme that drove up the costs
of rubber chemicals used to make shoes, tires, and other products. Bayer AG paid its fine but did not
admit culpability. Instead, the company announced paying the fine was less costly than litigation.
Bayer AG implemented a(n) _____ strategy.
a.
offensive
b.
reactive
c.
proactive
d.
accommodative
e.
adaptive
112. The social responsiveness strategy that could be considered essentially a public relations approach is
the __________ strategy.
a.
reactive
b.
defensive
c.
communicative
d.
proactive
e.
accommodative
113. Rotavirus is a gastrointestinal disease that causes only a few deaths in the United States, but up to
500,000 deaths annually in developing countries. The vaccine for preventing the disease was proven
to cause an extremely rare but serious side effect, so its manufacturer stopped producing it. If the
manufacturer decided that, to avoid any potential liability, it would never produce the drug again even
though it was still needed in developing countries, it would be following a(n) _____ strategy.
a.
reactive
b.
prospective
c.
defensive
d.
accommodative
e.
proactive