44. The obligation of organization management to make decisions and take actions that will enhance the
welfare and interests of society as well as the organization is referred to as
a.
organizational responsibility.
b.
social responsibility.
c.
discretionary responsibility.
d.
economic responsibility.
e.
none of these.
45. Which of these is true about the policy a bank adopts toward its investing of depositor’s money?
a.
It is an expression of its philosophy of social responsibility.
b.
It is important only to the community.
c.
It has no ethical implications.
d.
It would represent its personal state of moral development.
e.
All of these.
46. Any group within or outside the organization that has a stake in the organization‘s performance is
called
a.
a supplier.
b.
an international customer.
c.
a stakeholder.
d.
OPEC.
e.
a trade association.
47. Primary stakeholders of an organization include
a.
employees.
b.
customers.
c.
investors and shareholders.
d.
suppliers.
e.
all of these.
48. All of the following are examples of special interest groups EXCEPT
a.
professional associations.
b.
trade associations.
c.
political action committees.
d.
courts.
e.
consumerists.
49. What type of a stakeholder would a nature conservation group be for a paper manufacturing company?
a.
Supplier
b.
Competitor
c.
Employee
d.
Special interest group
e.
None of these
50. With a philosophy of ____, managers weave environmental and social concerns into every strategic
decision, revise policies and procedures to support these efforts and goals.
a.
sustainability
b.
conservation
c.
ethics
d.
preservation
e.
human concerns
51. ____ is economic development that generates wealth and meets the needs of their current generation
while focusing on future generations.
a.
Ethical management
b.
Activist strategy
c.
Sustainability
d.
Market strategy
e.
Future management
52. Which of the following concepts argues that organizations can find innovative ways to create wealth at
the same time they are preserving natural resources?
a.
Preservation
b.
Conservation
c.
Environmentalism
d.
Protectionism
e.
Sustainability
53. According to the book’s model for judging corporate social performance, social responsibility is
divided into what four sections?
a.
Ethical, legal, technical, and rational
b.
Mandatory, technical, discretionary, and economic
c.
Legal, mandatory, economic, and ethical
d.
Discretionary, legal, economic, and ethical
e.
None of these
54. ____ is considered a decision that enables an individual or company to benefit at society’s expense.
a.
A legal behavior
b.
An unethical behavior
c.
An economic responsibility
d.
A discretionary responsibility
e.
A responsible behavior
55. ____ includes behavior that is not always written down and may actually not serve an organization’s
bottom-line.
a.
Legal responsibility
b.
Economic responsibility
c.
Ethical responsibility
d.
Discretionary responsibility
e.
None of these
56. With respect to appropriate corporate behavior, society deems ____ as important.
a.
ethical responsibility
b.
discretionary responsibility
c.
economic responsibility
d.
legal responsibility
e.
moral responsibility
57. Which of the following responsibilities is purely voluntary and is guided by a company’s desire to
make social contributions not mandated by economics, law, or ethics?
a.
Ethical
b.
Economic
c.
Legal
d.
Discretionary
e.
Stakeholder
58. ____ is the responsibility that goes beyond societal expectations to contribute to the community’s
welfare.
a.
Ethical responsibility
b.
Discretionary responsibility
c.
Economic responsibility
d.
Legal responsibility
e.
Technical responsibility
59. ____ means that managers are honest and trustworthy, fair in their dealings with employees and
customers, and behave ethically in both their personal and professional lives.
a.
Ethical leadership
b.
Followership
c.
Corporate espionage
d.
Command-and-control approach
e.
Concern for production leadership
60. A code of ____ is a formal statement of the company’s values concerning ethics and social issues.
a.
integrity
b.
trust
c.
citizenship
d.
ethics
e.
honesty
61. Statements that define fundamental values and reference organizational responsibilities, products and
employees are often called ____.
a.
principle-based
b.
policy-based
c.
ethically-based
d.
codified
e.
codes of organizational integrity
62. An example of an ethical structure is
a.
chief ethics officer.
b.
a formal statement of company values.
c.
an equal opportunity policy.
d.
whistle-blowing.
e.
corporate speech.
63. When an official is given the responsibility of overseeing all aspects of ethics and legal compliance.
S/he is referred to as
a.
a whistle-blower.
b.
a chief ethics officer.
c.
vice-president of human resource management.
d.
a yes-man.
e.
a political play.
64. Which of these is the disclosure by an employee of an illegal activity?
a.
Tattling
b.
Whistle-blowing
c.
Organizational communication
d.
The filing of a disclosure statement
e.
Snooping
65. ____ is not part of the structures and systems pillar of an ethical organization.
a.
Corporate culture
b.
Code of ethics
c.
Ethics committee
d.
Whistle-blowing mechanisms
e.
Rewarding ethical behavior
66. The relationship between social responsibility and financial performance has been shown to be ____.
a.
non-existent
b.
positive
c.
negative
d.
not important
e.
a reflection of top leadership
67. Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a
$71,000 pay increase just months before she laid off 42 employees. Chinoda’s decision lies in the
a.
domain of codified law.
b.
domain of free choice.
c.
domain of ethics.
d.
domain of social responsibility.
e.
none of these.
68. A recent poll found that ________ percent of people surveyed say corporate America’s moral compass
is pointing in the wrong direction.
a.
10
b.
29
c.
52
d.
76
e.
98
69. When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked
his life to save men who were being picked off by land sharks. The Navy pilot was operating from the
________ level of moral development.
a.
preconventional
b.
conventional
c.
postconventional
d.
lowest
e.
conservative
70. The profit-maximizing view of economic responsibility is advocated by ________.
a.
Milton Friedman
b.
Arthur Anderson
c.
Donald Trump
d.
Warren Buffett
e.
Steve Jobs
71. Of the following, which may whistle-blowers suffer?
a.
Job loss
b.
Ostracism by coworkers
c.
Transfer to lower-level position
d.
Hostile work environment
e.
All of the above
72. Examples of unethical behavior toward ________ include a hostile work environment and violations
of health and safety rules.
a.
customers
b.
financiers
c.
society
d.
suppliers
e.
employees
CASE
Scenario – Larry Campbell
The pressure was on again. Larry Campbell, the Vice President at ToolTime Hardware, Inc., was
receiving requests from men and women inside the firm and outside the firm, asking him to review the
company’s promotion policies. Of the 52 middle and high level executives, only three were women.
The pressure was to review the policies that had led to this perceived imbalance and, if appropriate,
take the steps necessary for correction.
1. The decision to recruit, hire, train and promote both men and women equally is based on the ethical
approach of
a.
utilitarian approach.
b.
individualism approach.
c.
moral rights approach.
d.
all of these provide the basis.
e.
none of these.
2. Using the justice approach for ethical decision-making, the logic of promoting qualified men and
women would be supported by
a.
equal rights justice.
b.
distributive justice.
c.
procedural justice.
d.
compensatory justice.
e.
all of these.
3. A(n) _______ would outline the procedures Larry should use in this and other ethical situations.
a.
principle-based statement
b.
code of ethics
c.
corporate credo
d.
policy-based statement
e.
ethics committee
COMPLETION
1. __________ is the code of moral principles and values that govern the behaviors of a person or group
with respect to what is right or wrong.
2. When values and standards are written into the legal system, it is referred to as ______.
3. A(n) ________ arises in a situation when each alternative choice or behavior is undesirable because of
potentially harmful ethical consequences.
4. The ________ is an individual responsible for making an ethical choice.
5. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred
to as ________ approach.
6. The _________ approach contends that acts are moral when they promote the individual’s best
long-term interests.
7. The _________ approach asserts that human beings have fundamental rights and liberties that cannot
be taken away by an individual’s decision.
8. The ________ approach holds that moral decisions must be based on standards of equity, fairness, and
impartiality.
9. __________ justice requires that different treatment of people not be based on arbitrary characteristics.
10. ________ justice requires that rules should be clearly stated and consistently and impartially enforced.
11. ________ justice argues that individuals should be compensated for the cost of their injuries by the
party responsible.
12. At the _________ level of personal moral development, individuals are most concerned with external
rewards and punishments.
13. People learn to conform to the expectations of good behavior that are set by peers and society at the
_________ level.
14. Individuals at the __________ level are guided by an internal set of values and standards and will even
disobey rules or laws that violate these principles.
15. Most managers operate at the _________ level.
16. Management’s obligation to make choices that will contribute to the well being of both the
organization and society is known as __________.
17. A(n) _________ is any group within or outside the organization that has a stake in the organization’s
performance.
18. __________ refers to interacting with the community in which a company does business in a way that
makes money for the company but also improves the long-term well-being of the community.
19. ___________ responsibility is purely voluntary and guided by a company’s desire to make social
contributions not mandated by economics, law, or ethics.
20. A(n) __________ is a formal statement of the company’s values concerning ethics and social issues; it
communicates to employees what the company stands for.
21. __________ generally outline the procedures to be used in specific ethical situations, such as
marketing practice, conflicts of interest, and observance of laws.
22. A group of executives assigned to oversee the organization‘s ethics by ruling on questionable issues
and disciplining violators is referred to as a(n) _________.
23. __________ programs help employees deal with ethical questions and translate the values stated in a
code of ethics into everyday behavior.
24. Employee disclosure of illegal organization activities is known as ________.
25. The relationship between social responsibility and financial performance has been shown to be
__________.
26. The ________ approach to ethical decision making sidesteps debates about what is right, good, or just
and bases decisions on prevailing standards of the profession and the larger society, taking the interests
of all stakeholders into account.
27. The ________ approach to ethical decision making says that moral behavior stems from personal
virtues.
28. The ________ approach to economic responsibility means that economic gain is the only social
responsibility and can lead companies into trouble.
SHORT ANSWER
1. List the four criteria for ethical decision-making described in the book.
2. List three of the six moral rights that should be considered during decision making.
3. List three examples of primary stakeholders.
4. List the four responsibilities of corporate social performance.
ESSAY
1. Define ethics and explain how the domain of ethics relates to law and free choice.
2. List the four approaches that are used to describe values for guiding ethical decision making. Briefly
describe each.
3. Briefly explain the justice approach to ethics and then explain the three types of justice.
4. List and define the stages of moral development.
5. What is social responsibility? Why is it considered a difficult concept to grasp?
6. Explain the concept of a stakeholder and list five common stakeholders.
7. List and define the criteria of corporate social responsibility.
8. Explain the differences between principle-based statements and policy-based statements in an
organization’s code of ethics.