Deck 4: Ethics and Social Responsibility

Question 1

Websites that allow free downloading of songs and movies illustrate the "tragedy of the commons" because there is pursuit of self-interest with no consideration for societal interest.

Answer 1

True
Explanation: This is an example of digital piracy.The tragedy that would result if all people were to steal digital media would be the disappearance of music, movie, and book companies as creative people decided there was no point in working hard to produce original songs, stories, and so on.

Question 2

People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.

Answer 2

True
Explanation: People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.

Question 3

Dianna has witnessed her manager harassing a coworker on multiple occasions.Dianna knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job.This example illustrates a(n)

A)justice rule.
B)ethical dilemma.
C)moral dilemma.
D)utilitarian rule.
E)moral rights rule.

Answer 3

B
Explanation: An ethical dilemma is the quandary people find themselves in when they have to decide if they should act in a way that might help another person or group and is the right thing to do, even though doing so might go against their own self-interest.

Question 4

When one person starts to profit by behaving unethically, it encourages other people to act in the same way.

Question 5

Which of the following statements is true about stockholders?

A)They are often regarded as the most critical stakeholder group because if a company cannot attract them to buy its products, it cannot stay in business.
B)They are least interested in the company's profits.
C)They bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
D)They are responsible for using a company's financial, capital, and human resources to increase its performance and thus its stock price.
E)They have a claim on a company because when they buy its stock or shares, they become its owners.

Question 6

Stockholders seek to maximize the return on their investment and therefore show interest in the ethical practices of a company.

Question 7

_____ watch the company and its managers closely to ensure that management is working diligently to increase the company's profitability.

A)Community members
B)Suppliers
C)Stockholders
D)Customers
E)Distributors

Question 8

Under the moral rights rule, an ethical decision is one that distributes benefits and harms among people and groups in an equitable way.

Question 9

Decisions that managers take to protect the rights of some stakeholders often hurt the rights of others.

Question 10

_____ are the moral principles and beliefs about what is the right or appropriate way to behave.

A)Societal norms
B)Laws and regulations
C)Ethics
D)Values and norms
E)Individual values

Question 11

Steve works in the accounting department for a large manufacturing company.His manager instructed him to record a transaction in an incorrect manner to increase the revenue for the fiscal year.Steve is pondering whether to report this issue to a higher-level manager.This is an example of an ethical dilemma.

Question 12

_____ are thoughts and feelings that tell people what is right or wrong.

A)Moral scruples
B)Ethical dilemmas
C)Practical rules
D)Norms
E)Individual rights

Question 13

"An ethical decision is one that a typical person in a society would think is acceptable" is a statement that reflects the practical rule.

Question 14

Organizational ethics are the standards that govern how members of a profession should conduct themselves.

Question 15

Jim is comfortable with his decision and would have no problem with people reading about it on the front page of a morning paper.This indicates that he is following the practical rule.

Question 16

Organizational ethics are the way a company's managers view their duty to make decisions that enhance the well-being of stakeholders.

Question 17

From a moral rights perspective, managers should consider courses of action that respect the fundamental rights of others.

Question 18

Which of the following statements is true about ethics?

A)Ethics and laws are fixed principles.
B)Ethical beliefs remain constant as time passes.
C)Laws change to reflect the changing ethical beliefs of a society.
D)Absolute and indisputable rules and principles can be developed to decide whether an action is ethical or unethical.
E)Ethics evolve over time, but laws related to ethical beliefs remain constant.

Question 19

Stakeholders benefit in the long run if companies make the right choices.

Question 20

If a company's top managers consistently endorse the ethical principles in its corporate credo, they can prevent employees from going astray.

Question 21

Simon was confronted with a serious ethical dilemma.He responded with a solution that created the greatest good for the greatest number of people.Which ethical rule best describes his response?

A)justice
B)moral rights
C)utilitarian
D)practical
E)moral scruples

Question 22

The _____ rule is that an ethical decision is one that distributes rewards and harms in a fair way.

A)justice
B)moral rights
C)utilitarian
D)practical
E)moral scruples

Question 23

Under the _____ rule, an ethical decision is one that best maintains people's fundamental privileges.

A)justice
B)moral rights
C)utilitarian
D)practical
E)moral scruples

Question 24

After a lengthy investigation, Larry lost his license to practice law on charges of accepting bribes.In all likelihood, Larry probably violated his _____ ethics.

A)environmental
B)occupational
C)individual
D)organizational
E)governmental

Question 25

Some websites offer free streaming and downloading of movies, games, and music.Websites like these demonstrate that the pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way.This exemplifies a situation known as the

A)moral dilemma.
B)"tragedy of the commons."
C)ethical dilemma.
D)credo.
E)war of attrition.

Question 26

Under the practical rule, a manager would not be reluctant to communicate a decision to people outside the company when

A)the decision, although unethical, would increase shareholders' wealth.
B)a typical person would consider the decision acceptable.
C)a typical person wouldn't care about the decision.
D)a typical person would be unaware of the harmful implications of the decision.
E)he/she could blame the top management of the firm.

Question 27

When Bob was calculating the yearly bonuses for his employees, he paid particular attention to the individual employee scores to ensure that they were based on performance and not favoritism.Which ethical rule was Bob following?

A)practical
B)moral scruples
C)utilitarian
D)justice
E)moral rights

Question 28

_______ is the esteem or high repute that individuals or organizations gain when they behave ethically.

A)Trust
B)Reputation
C)Social responsibility
D)Moral standing
E)Emotional value

Question 29

Unethical behavior

A)reduces a company's inefficiency.
B)decreases a company's ineffectiveness.
C)reduces a company's performance.
D)increases the national standard of living.
E)increases national well-being and prosperity.

Question 30

_____ have the right to expect a good return or reward by investing their human capital to improve a company's performance.

A)Customers
B)Distributors
C)Suppliers
D)Distributors
E)Managers

Question 31

When faced with an ethical dilemma as a manager, Sam tries to reflect on his upbringing to decide between right and wrong.Sam is reflecting on ______ ethics.

A)societal
B)occupational
C)individual
D)organizational
E)religious

Question 32

Which of the following is a method by which a company can act ethically toward employees and meet their expectations?

A)by improving their products over time and providing guarantees to customers about the integrity of their products
B)by selling customers quality products at a fair price and providing good after-sales service.
C)by maximizing the stockholders' return on investments
D)by creating an occupational structure that fairly and equitably rewards organization members for their contributions
E)by implementing a high power distance culture and discouraging decentralized decision making

Question 33

Samantha made some changes in the production process to make sure employees could perform tasks without endangering their health and safety.Samantha was employing the moral rights rule to

A)seek to protect the rights and privileges of people affected.
B)maximize the greatest good for the greatest number of people.
C)distribute benefits in fair ways, but ignore harm.
D)hesitate to communicate to people outside the company for fear of them criticizing her decision.
E)randomly distribute harms and benefits.

Question 34

Bob gave a talk to his employees about standards that govern how members of their profession should conduct themselves.He was talking about ______ ethics.

A)societal
B)occupational
C)individual
D)organizational
E)governmental

Question 35

_____ have a claim on an organization because they bring to it their skills, expertise, and experience.

A)Customers
B)Distributors
C)Suppliers
D)Local communities
E)Managers

Question 36

________ is the idea that the pursuit of self-interest with no consideration for societal interests leads to disaster.

A)The "tragedy of the commons"
B)The ethical dilemma
C)The moral dilemma
D)The "credo"
E)The concept of individual ethics

Question 37

The utilitarian rule states that an ethical decision is a decision that

A)best protects the rights of people affected.
B)produces the greatest good for the greatest number of people.
C)distributes benefits and harms in an impartial manner.
D)can be communicated with no reluctance.
E)increases the financial effectiveness of the organization.

Question 38

One managerial implication of the justice model is that managers should base their decisions on

A)the effects the decision can have on stakeholders' rights.
B)what provides maximum profits to the company.
C)whatever promotes a fair distribution of outcomes.
D)the personal situation of employees.
E)the greatest good for the greatest number of people.

Question 39

______ are the stakeholder group with the most responsibility for deciding the goals of the organization.

A)Stockholders
B)Customers
C)Managers
D)Operational-level employees
E)Consultants

Question 40

______ ethics are the standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and individual rights.

A)Societal
B)Occupational
C)Individual
D)Organizational
E)Governmental

Question 41

______ ethics are standards that determine how people view their responsibilities to others and how they should act in situations when their own self-interest is at stake.

A)Societal
B)Occupational
C)Individual
D)Organizational
E)Governmental

Question 42

Which of the following approaches is characterized by the highest degree of social responsibility?

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 43

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n) _____ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 44

Which of the following stakeholder group's individual ethics are important in shaping the organizational code of ethics?

A)employees
B)customers
C)community
D)founders
E)stockholders

Question 45

The managers of Lehman Brothers, whose bankruptcy helped propel the 2008-2009 financial crisis, used loopholes in U.K.law to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition.Which of the following approaches to how to be socially responsible is illustrated from this example?

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)obligatory

Question 46

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other stockholders.This illustrates the_____ approach.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 47

_____ can provide guidance when organization members are uncertain about whether an action is ethical.

A)The communications manager
B)An ethics philosopher
C)The ethics ombudsperson
D)The personnel manager
E)The accommodative manager

Question 48

The _______ approach to social responsibility is most likely to be taken by a typical large U.S.company.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 49

Managers at Enron prevented employees from selling Enron shares in their pension funds while they sold hundreds of millions of dollars' worth of their own Enron stock.This illustrates the_____ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 50

The _____ has organization-wide authority.Hence, organization members in any department can communicate instances of unethical behavior by their managers or coworkers without fear of retribution.

A)manager
B)stakeholder
C)stockholder
D)nation
E)ethics ombudsperson

Question 51

Which approach to social responsibility is being implemented by a company that actively embraces the need to behave in socially responsible ways?

A)proactive
B)accommodative
C)obstructionist
D)defensive
E)assertive

Question 52

Which of the following statements is true of organizational ethics?

A)Employees are much more likely to act unethically when a credo exists.
B)Employees are more likely to act unethically when the company's top managers consistently endorse the ethical principles in its corporate credo.
C)Top managers play the least important role in determining a company's ethics.
D)The individual ethics of a company's founders and top managers are especially important in shaping the organization's code of ethics.
E)They are standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities.

Question 53

Which of the following is least likely to be a source of individual ethics?

A)family
B)friends
C)church
D)teachers
E)supervisors

Question 54

Which of the following statements is true about the role of organizational culture?

A)The limited authority of ethics ombudsperson restricts organization members in any department to communicate instances of unethical behavior by their managers or coworkers for fear of retribution.
B)Ethics ombudspeople can provide guidance when organization members are uncertain about whether an action is ethical.
C)If top managers are perceived as being self-interested and not ethical, their subordinates are more likely to behave in an ethical manner.
D)When ethical values and norms are part of an organization's culture, they help organization members focus mainly on self-interested action.
E)The actions of top managers such as CEOs are seldom scrutinized for ethical improprieties, as their actions are independent of the values of their organizations.

Question 55

Demonstrating its social responsibility helps a company build a good

A)infrastructure.
B)production unit.
C)selection process.
D)reputation.
E)organizational hierarchy.

Question 56

_____ encourage employees to behave in a socially responsible manner.

A)Stakeholder claims
B)Conflicting interpersonal relations
C)Tougher selection processes
D)Ethical organizational cultures
E)High compensation benefits

Question 57

Companies that use the _______ approach are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics testing; and the reduction of crime, illiteracy, and poverty.

A)accommodative
B)defensive
C)reactive
D)proactive
E)obstructionist

Question 58

According to the_____ approach, companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 59

Companies that go out of their way to learn about the needs of different stakeholders and use organizational resources to promote their interests are using the _____ approach.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)offensive

Question 60

Managers who sell their stock in advance of other stockholders because they know that their company's performance is about to fall demonstrate the _____ approach to social responsibility.

A)accommodative
B)proactive
C)defensive
D)obstructionist
E)reactive

Question 61

Stockholders are interested in how a company operates because

A)they are responsible for the organization's capital resources.
B)they are responsible for the organization's financial resources.
C)they want to maximize the return on their investment.
D)they provide input for the goals of the organization.
E)they want to make sure the organization makes the most efficient use of resources.

Question 62

Discuss how the community, society, and nation-state stakeholders benefit from the TOMS Company.

Question 63

In 2016, the average pay for a CEO was

A)$8.5 million.
B)$7.5 million.
C)$10.8 million.
D)$11.1 million.
E)$9.8 million.

Question 64

The board and top managers of a nonprofit organization have considerable latitude to decide how they will spend the organization's resources because

A)they are a private foundation.
B)the organization does not have stockholders.
C)they are typically small organizations.
D)they receive contributions and government grants.
E)all monies earned are pumped back into the business.

Question 65

Suppose you are an accountant for a large publicly traded company.You have discovered an error in the financial records that makes the company look more profitable.Your manager tells you to correct the error and reissue a financial statement for the stockholders.Which of the four ethical rules did the manager apply to this situation? Explain the reason for your answer.

Question 66

Define ethical dilemma, moral scruples, and ethics, and explain how they are related.

Question 67

Discuss the relationship between ethics and laws.

Question 68

Nancy wants to report some unethical behavior among colleagues in her department, but she doesn't want to her colleagues to know she is the whistle-blower.Nancy should talk to

A)her manager.
B)the ethics manager.
C)the ethics ombudsperson.
D)the ethics philosopher.
E)the ethics interpreter.

Question 69

The influence of one's family, peers, and upbringing in general can affect a person's ________ ethics.

A)occupational
B)organizational
C)societal
D)business
E)individual

Question 70

Bryan is the manager of a company which has been judged as having the best corporate reputation for two years in a row, based on a survey of countrywide consumers.This company is well known for its

A)compensation benefits.
B)ethical culture.
C)selection process.
D)goal-setting process.
E)strong leadership.

Question 71

Identify and describe the approaches to how to be socially responsible, from the lowest to the highest.Give an example of a real company to illustrate each.

Question 72

Robert and his HR team have adapted several existing company policies.He is unsure if all these policies can be implemented on ethical grounds.His team can approach a(n) _____ to resolve the matter.

A)consumer court
B)legal advisor
C)ethics ombudsperson
D)HR manager
E)ethical philosopher

Question 73

Tiffany & Co.has a deep moral commitment to act responsibly in its sourcing of precious metals and gemstones.This is an example of ______ ethics.

A)societal
B)individual
C)organizational
D)occupational
E)governmental

Question 74

Ethical beliefs change over time.Give an example of an ethical belief that may be changing in the culture in which you presently live, and explain whether existing laws are still appropriate for that behavior.

Question 75

Bank of America's plan to reduce the workforce in its consumer banking unit by thousands will

A)have a negative effect on managers.
B)result in a gain in company assets.
C)take a heavy toll on individual workers and local communities.
D)have a positive effect on individual workers and local communities.
E)take a heavy toll on stockholders.

Question 76

The _____ stakeholder group is considered to be the most critical.

A)managers
B)employees
C)customers
D)stockholders
E)suppliers

Question 77

In today's business world, top executives are receiving large salaries and unbelievable stock options.Is it ethical for managers to receive these amounts? Argue both sides of this question.

Question 78

Phil has noticed that his operations manager has been practicing unethical means to reap personal benefits at the expense of the company's customers.He will most likely approach the _____ to report the matter without fear of retribution.

A)CEO
B)HR manager
C)consumer court
D)legal advisor
E)ethics ombudsperson

Question 79

Describe the four rules of ethical decision making and discuss their managerial implications.

Question 80

Give specific examples of stakeholders of each major type that exist in your school system.