35. An opportunity for an organization to practice social responsibility involves:
a. developing a sense of entitlement.
b. placing personal interests above company interests.
c. imposing harsh penalties on whistleblowers.
d. working with its supplier to improve working conditions.
36. The approach that focuses on social responsibility by finding out better ways for leaders to make a positive
contribution to society is known as the _____ approach.
a. whistleblowing
b. Thou Shalt
c. Thou Shalt Not
d. entitlement
37. When senior management provides strategic leadership for ethics:
a. senior managers emphasize being whistle blowers.
b. marketing strategy is converted into ethical strategy.
c. senior managers become ethics leaders.
d. the roles of stockholders and shareholders become reversed.
38. Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages
employees in his division to always give accurate and correct information. Barry is using the ethical initiative called:
a. leading by example.
b. open-book management.
c. accepting whistleblowers.
d. developing formal mechanisms for dealing with ethical problems.
39. A recommended approach for promoting ethical behavior throughout an organization is to:
a. reward employees based on their seniority.
b. impose severe penalties on whistleblowers.
c. hire only those candidates who have taken a course in ethics.
d. reward people who have performed well and behaved ethically.
40. An example of a formal mechanism for dealing with ethical problems is:
a. leading by example.
b. having an ethics committee for reviewing complaints about ethical problems.
c. conducting training programs in ethics for organizational employees .
d. accepting whistleblowers without penalizing them.
41. An example of a whistleblower (in relation to ethics) would be a(n):
a. security guard who sends notices to employees who drive too fast in the company parking lot.
b. executive who imposes fines on employees who behave unethically.
c. company specialist conducting training programs about ethics.
d. bookkeeper who tells a journalist about fraudulent accounting in the company.
42. Corporate philanthropy is most effective when:
a. large sums of money are given blindly to numerous causes.
b. records of donations are meticulously kept for tax purposes.
c. charities are trusted use the money wisely and efficiently.
d. the company seeks follow-up data to measure the maximum return in terms of social impact.
43. The virtuous cycle in relation to social responsibility suggests that
a. recycling pays off in increased profits.
b. ethical executives attract ethical employees.
c. corporate social performance and corporate financial performance feed and reinforce each other.
d. employees disclosing organizational wrongdoing to authorities should be severely penalized.
44. Studies have shown that employees working in an ethical environment tend to:
a. deliver superior performance.
b. have low levels of motivation.
c. overlook their ethical flaws.
d. focus solely on personal gains.
45. Arnold, a team manager, believes in treating all his team members equally. He adheres to his beliefs irrespective of the
circumstances. Which ethical leadership behavior is Arnold demonstrating?
a. Entitlement
b. Integrity
c. Whistleblowing
d. Rationalization
46. Martin, a senior manager in a company, bribes a government officer to secure a government contract. He justifies his
actions stating that he acted in the best interests of the company and nobody stopped him. In the given scenario, Martin is
justifying his actions by resorting to _____.
a. rationalization
b. whistleblowing
c. entitlement
d. power sharing
47. Amanda, a business analyst, presents false research findings to her manager to prove that the desired results have been
achieved and to get appreciation for her work. Which level of moral development is illustrated in the given scenario?
a. conventional level
b. postconventional level
c. preconventional level
d. nonconventional level
48. Evan, a manager, strongly believes in the concept of power sharing. Therefore, Evan is most likely to _____.
a. show a consistency between word and deeds and keep promises
b. allow for group member input into decisions and listen to their suggestions
c. care about the environment in such ways as being a champion of recycling
d. be moral enough just to look good
49. The employees of a company feel that management does not make fair decisions when increasing salaries or
promoting people. Which ethical screen is used by the employees to question the decisions of management in the given
example?
a. Justice
b. Reversibility
c. Intuition
d. Utilitarianism
50. A journalist questions the director of a chemical manufacturing company about the possible hazards of a recently
introduced chemical for use in water purification systems. The journalist’s question is based on the _____.
a. deontological theory of justice
b. universalist principle of disclosure
c. utilitarian notion of doing the greatest good for the greatest number of people
d. deontological principle of reversibility that evaluates ethics by reversing the decision maker
51. Which of the following examples illustrates a method for creating a socially responsible and ethical organization?
a. ABC Inc., a large industrial group, encourages its senior managers to set examples for other employees by being
fair and just in their actions.
b. A company immediately terminates employees who report wrongdoings of the company to government
authorities and ensures they are not employed elsewhere.
c. Shine Inc., a chemical supplier, adjusts its balance sheets to show profit despite a reduction in sales in order to
reinforce the confidence of its shareholders.
d. A company focuses on achieving its annual targets in terms of revenue irrespective of the impact on its employees
and the environment.
52. Which of the following examples illustrates an effort toward building a socially responsible and ethical organization?
a. Rodger, a senior executive in a company, uses the company car allotted to him for personal purposes claiming
that he is eligible to do so because of his position.
b. Drive Inc., a tire manufacturing company, uses solar panels to generate electricity for running the equipment in its
inspection and packaging division.
c. White Inc., a large pharmaceutical company, fires those employees who protest against unethical actions and
report wrongdoings to government authorities.
d. Dave, a team manager, often justifies his unethical actions by stating that he did so for the benefit of the team and
nobody stopped or questioned him.
53. Blue Inc., a highly profitable consumer goods manufacturing company, invests in a number of social responsibility
initiatives that in turn generate profit for the company. Which feature of corporate and social performance is illustrated in
the given scenario?
a. Entitlement
b. Deontological theory
c. Virtuous circle
d. Whistleblowing
54. Edwin, an engineer in a construction material manufacturing company, always strives to give his best because he is
aware that he is contributing to something larger and would be recognized for it. It can be inferred from the given scenario
that _____.
a. employees who work in an ethical environment tend to be better motivated
b. putting personal interests before the company’s interest builds socially responsible organizations
c. individuals tend to focus on the intent of an action rather than on the action itself
d. people are primarily concerned with receiving external rewards and avoiding punishment
55. One of the approaches for achieving a socially responsible and ethical organization is to _____.
a. develop a sense of entitlement
b. engage in philanthropy
c. dismiss whistleblowers
d. encourage rationalization
56. The Sarbanes–Oxley Act requires public companies to _____.
a. disclose whether they have adopted a code of ethics for senior financial officers
b. provide a list of possible penalties to be imposed on whistleblowers at all levels
c. use renewable sources of energy wherever possible
d. donate part of their profit to charitable organizations
57. Which of the following is not a practical justification for practicing corporate social responsibility?
a. It helps attract high-quality employees.
b. Employees tend to be more emotionally committed to the company.
c. Executives will later be given greater latitude by governmental oversight when moral lapses inevitably occur.
d. Public perception of the company will improve.
58. Gordon is a team leader who always aspires to do good work that matters to his team mates, other colleagues, and
society in general. He always tries to make decisions by keeping in focus the best interests of his team. When faced with a
situation that involves making critical decisions that can impact many people in his team, what are the ways that Gordon
should consider for examining if his decisions are ethical?
59. Brian takes over as the director of a company charged with unethical practices such as presenting fraudulent sales
figures to authorities and shareholders. The company suffered bankruptcy because of huge penalties imposed by the
government. Thousands of workers were laid off and investors developed distrust toward the company. What are the
possible initiatives that Brian could consider for creating an organizational culture that encourages ethical behavior among
employees?
60. Jennifer, an entrepreneur, recently started a food processing business. She possesses a strong desire for building a
community and giving something back to society. Jennifer hopes to inculcate the same desires in her employees. How can
Jennifer accomplish her goals?
