Chapter 4: Ethics and Social Responsibility
1. Ethics is the set of moral principles or values that defines right and wrong for a person or group.
2. Kohlberg’s three phases of moral development in order are law and order, instrumental exchange, and
universal principle.
3. There is general agreement regarding what is socially responsible corporate behavior.
MULTIPLE CHOICE
1. __________ is unethical behavior that violates organizational norms about right and wrong.
a.
Workplace deviance
b.
Organizational deviance
c.
Social irresponsibility
d.
Social deviance
e.
An ethical dilemma
2. The __________ determined that companies can be prosecuted and punished for the illegal or
unethical actions of employees, even if management didn’t know about the unethical behavior.
a.
U.S. Sentencing Commission Guidelines
b.
U.S. Supreme Court
c.
U.S. Department of Labor
d.
U.S. Equal Employment Opportunity Commission
e.
Federal Trade Commission
3. What is the term used to describe the degree of concern people have about an ethical issue?
a.
Ethical intensity
b.
Social consensus
c.
Temporal immediacy
d.
Magnitude of consequences
e.
Ethical valence
4. Which of the following principles of ethical decision making would support the practice of “looking
after number one”?
a.
the principle of long-term self-interest
b.
the principle of personal virtue
c.
a discretionary code of ethics
d.
a utilitarian code of ethics
e.
the equity principle
5. 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
6. 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
7. 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.
8. 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