Chapter 5--Managing Ethics and Social Responsibility
Chapter 5--Managing Ethics and Social ResponsibilityStudent:
___________________________________________________________________________1.Ethics,
found between the domains of law and free choice, is the code of
moral principles that governs any individual or groups.TrueFalse2.
Free choice lies between the domains of codified law and
ethics.TrueFalse3.If something is ethical, it must not be
illegal.TrueFalse4.Although public confidence in business managers
is at an all-time low, politics, sports, and non-profit
organizations have not been affected.TrueFalse5.Managers carry a
tremendous responsibility for setting the ethical climate in an
organization and can act as role models for others.TrueFalse6.An
ethical dilemma arises in a situation when each alternative choice
or behavior is undesirable because of potentially harmful ethical
consequences.TrueFalse7.The moral agent is an individual who must
make an ethical choice in an organization.TrueFalse8.The virtue
ethics 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.TrueFalse9.Most ethical
dilemmas in business involve a conflict between stakeholders and
shareholders.TrueFalse10.The virtue ethics approach to ethical
decision making says that moral behavior stems from personal
virtues.TrueFalse11.Utilitarian, individualism, moral-rights, and
objective dualism are the four approaches that guide ethical
decision-making.TrueFalse12.The basis for the recent trend among
companies to police employee personal habits such as alcohol and
tobacco consumption on the job is called the utilitarian
ethic.TrueFalse13.Monitoring the Internet to maintain the company's
ethical climate and workplace productivity could be considered part
of an individualistic approach.TrueFalse14.The ethical concept that
acts are moral when they promote the individual's best long term
interests, which ultimately leads to the greater good, is known as
the moral rights approach.TrueFalse15.The ethical concept that
argues that moral behaviors produce the greatest good for the
greatest number of people is objective
dualism.TrueFalse16.Individualism is popular in the highly
organized society of today because it supports immediate
self-gain.TrueFalse17.The right of free consent, the right to
privacy, and the right of freedom of conscience are rights that
should be considered in the moral rights
approach.TrueFalse18.Compensatory justice argues that an employees
compensation should be based on individual
performance.TrueFalse19.Procedural justice requires that rules be
stated clearly, consistently and impartially enforced, and
administered fairly.TrueFalse20.Level 3 of the Personal Moral
Development model is Conventional.TrueFalse21.The Preconventional
level of Personal Moral Development lives up to expectations of
others, upholds laws, and fulfills duties and obligations of the
social system.TrueFalse22.Individuals, at the preconventional
level, are concerned with external rewards and punishments and obey
authority to avoid detrimental personal consequences.TrueFalse
Individuals are concerned with external rewards and punishments
at the principled level.TrueFalse
An individual at the postconventional level lives up to
expectations of others, fulfills duties and obligations of social
systems, and upholds law.TrueFalse
The great majority of managers operate at level two, the
conventional level.TrueFalse
Principled level of moral development is also referred to as the
postconventional level.TrueFalse
The majority of managers operate at the preconventional level of
personal moral development.TrueFalse
Approximately 20% of American adults, according to your text,
never reach the postconventional level of moral
development.TrueFalse
Social responsibility is management's obligation to make choices
and take actions that will contribute to the welfare and interests
of society as well as the organization.TrueFalse
Social responsibility covers a narrow range of issues, many of
which are unambiguous with respect to right or wrong.TrueFalse
Important stakeholders in corporations include the government
and the community.TrueFalse
A stakeholder is any group within or outside the organization
that has a stake in the organization's performance.TrueFalse
All stakeholders of an organization are its stockholders but not
all stockholders are its stakeholders.TrueFalse
Special interest groups include trade associations, political
action committees and consumerists.TrueFalse
Economic development that generates wealth and meets the needs
of the current population while preserving the environment for the
needs of future generations refers to sustainability.TrueFalse
Economic, legal, ethical, and discretionary responsibilities are
the four areas of social responsibility which can be used to
evaluate corporate social performance.TrueFalse
Economic responsibility, carried to the extreme, is called the
profit-maximizing view.TrueFalse
Economic responsibility defines what society deems as important
with respect to appropriate corporate behavior.TrueFalse
Ethical responsibility includes behaviors that are not
necessarily codified into law and may not serve the corporation's
direct economic interests.TrueFalse
Ethical behavior occurs when decisions enable an individual or
company to gain at the expense of society.TrueFalse
Unfortunately, discretionary responsibility is involuntary and
is mandated by economics, law, or ethics.TrueFalse
A formal statement of the organization's values regarding moral
principles and governing its response to social values is called a
code of ethics.TrueFalse
Principle-based statements define fundamental values and contain
general language about company responsibilities, quality of
products, and treatment of employees.TrueFalse
Policy-based statements generally outline the procedure to be
used in specific ethical situations.TrueFalse
One of the newest positions in organizations is the chief
operating officer, a response to widespread financial wrongdoing in
recent years.TrueFalse
A chief ethics officer is a company executive who oversees all
aspects of ethics and legal compliance.TrueFalse
Ethics training programs are not an important supplement as long
as a well-written code of ethics exists.TrueFalse
The disclosure by an employee of illegal, immoral, or
illegitimate practices by the organization is called
whistle-blowing.TrueFalse
Managers are often concerned good citizenship will hurt
performance.TrueFalse
Managers who are essentially ethical individuals make up the
first pillar of an ethical organization.TrueFalse
Which of the following refers to the code of moral principles
and values that govern behaviors with respect to what is right and
wrong?A.Social responsibilityB.Free domainC.EthicsD.Codified
lawE.Discretionary responsibility
Individualism is most closely related to:A.social
responsibility.B.free choice.C.economic responsibility.D.codified
law.E.togetherness.
An organization's decision to produce a new product is in
the:A.domain of codified law.B.domain of free choice.C.domain of
ethics.D.domain of compensatory justice.E.domain of social
responsibility.
A new drug has not been approved by the FDA to sell in the U.S.
because further testing is needed. The company has a chance to sell
its product in another country immediately to start recovering the
costs of R & D and production three years ahead of time. This
example places the decision in which of the categories from the
text?A.The ethical domainB.The domain of free choiceC.The legal
domainD.The obstructive categoryE.The protective domain
The assumption that "If it's not illegal, it must be ethical,"
ignores which of the following?A.Domain of codified lawB.Domain of
ethicsC.Domain of free choiceD.Discretionary responsibilityE.Domain
of symbolism
The decision by ABC International to downsize and reduce its
labor force is in the:A.domain of codified law.B.domain of free
choice.C.domain of ethics.D.social responsibility.E.none of
these.
A recent poll found that _____ percent of people surveyed say
corporate Americas moral compass is pointing in the wrong
direction.A.10B.29C.52D.76E.98
A situation that arises when all alternative choices or
behaviors have been deemed undesirable because of the potentially
negative ethical consequences, making it difficult to distinguish
right from wrong, is considered:A.a moral agent.B.a social
responsibility.C.an ethical dilemma.D.an ethical
standard.E.discretionary responsibility.
Which of the following is a(n) is the individual who must make
an ethical choice in an organization?A.The symbolic leaderB.An
obstructive managerC.The defensive individualD.The moral agentE.An
authoritarian manager
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. Chinodas 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.
Sharon is a manager at Softest Tissue Corporation. She is faced
with an interesting problem. One of her employees has been cheating
the company out of expense money. Sharon must decide whether or not
to fire this employee. In this role, Sharon is acting as:A.a moral
agent.B.an ethical theorist.C.a symbolic leader.D.an authoritarian
leader.E.an obstructive manager.
A normative approach to ethical decision making:A.reduces
ethical dilemmas to easy-to-understand formulas.B.uses various
approaches to describe guiding values for decisions.C.states that
everyone must use their employer's value system at work.D.dictates
only one way to choose to resolve dilemmas.E.none of these.
Which approach is the ethical concept that moral behaviors
produce the greatest good for the greatest
number?A.DefensiveB.JusticeC.UtilitarianD.IndividualismE.Moral-rights
Robbie's Robots decided to continue operations at one plant
while shutting down another. The decision was justified on the
basis of what was best for the total corporation. This is an
example of the:A.utilitarian approach.B.individualism
approach.C.moral-justice approach.D.justice approach.E.illegal
approach.
Caleb is a manager at Computer-Care Company. He is expected to
consider the effort of each decision alternative on all parties and
select the one that optimizes the satisfaction for the greatest
number of people. This is an example of the:A.utilitarian
approach.B.individualism approach.C.moral-justice
approach.D.justice approach.E.soft-line managerial approach.
Which ethical approach are companies citing to justify their
policing of employee's personal habits on and off the job, such as
alcohol and tobacco consumption?A.Justice approachB.Utilitarian
approachC.Individualism approachD.Moral-justice
approachE.Discretionary responsibility
The decision by Paula Reid, the manager who statted the U.S.
Secret Service prostitution scandal in Catagena, was based largely
on the _____
approachA.justiceB.moral-rightsC.obstructiveD.individualismE.practical
When everyone is pursuing self-direction, the greater good is
ultimately served because people learn to accommodate each other in
their own long-term interest is an example of
the_____.A.utilitarian approachB.individualism
approachC.moral-justice approachD.justice approachE.social
responsibility
Which of the following is NOT a normative ethics
approach?A.Utilitarian approachB.Individualism approachC.Social
responsibility approachD.Moral-rights approachE.All of these are
normative approaches as described in the text.
The golden rule "do unto others as they would do unto you"
is:A.an example of the utilitarian approach to ethical
behavior.B.representative of the moral-justice approach to moral
decision making.C.an example of the values that guide the
individualism approach to ethical behavior.D.silly and
outdated.E.an example of the justice approach to ethical
behavior.
Human beings have fundamental rights and liberties that cannot
be taken away by another individual's decision. This ethical
decision making approach is known as the:A.utilitarian
approach.B.individualism approach.C.moral-rights approach.D.dualism
approach.E.none of these.
The _____ refers to the ethical concept that moral decisions are
those that best maintain the rights of those people affected by
them.A.individualism approachB.justice approachC.utilitarian
approachD.moral-rights approachE.discretionary responsibility
approach
Which of the following is NOT one of the moral rights that could
be considered during decision-making?A.The right to free
consent.B.The right to invade privacy.C.The right to free
speech.D.The right of freedom of conscience.E.The right to life and
safety.
_____ to ethical decision-making is consistent with due process,
free consent, privacy, freedom of conscience and free
speech.A.Moral-rights approachB.Individualism approachC.Utilitarian
approachD.Justice approachE.Dual-economic approach
Sexual harassment is unethical because it violates an important
part of which approach to ethical behavior?A.The utilitarian
approachB.The individualism approachC.The justice approachD.The
moral-rights approachE.The defensive approach
The ethical decision approach that requires persons to be guided
by standards of equity, fairness and impartiality is
the:A.moral-rights approach.B.individualism approach.C.utilitarian
approach.D.justice approach.E.discretionary responsibility.
The moral rights approach that deals with performing
experimental treatment on unconscience trauma patient is
the:A.right of free consent.B.right to privacy.C.right of freedom
of conscience.D.right of free speech.E.right of due process.
Which of the following is not a concern to managers under the
justice approach?A.Compensatory justiceB.Distributive
justiceC.Procedural justiceD.Obstructive justiceE.All of these
_____ refers to the concept that different treatment of people
should not be based on arbitrary characteristics.A.Procedural
justiceB.Compensatory justiceC.Distributive justiceD.Organizational
justiceE.Moral-justice
Disk Replacement Services has just completed a procedure manual
to handle employee grievances. One of the main criteria is to make
it clear to employees that rules will be administered fairly and
consistently. Disk Replacement operates on:A.the procedural justice
approach.B.the utilitarian approach.C.the individual approach.D.the
defensive approach.E.the free-choice approach.
Which of these refers to procedural justice?A.The concept that
different treatment of people should not be based on arbitrary
characteristics.B.The concept that rules should be clearly stated
and consistently and impartially enforced.C.The concept that
individuals should be compensated for the cost of their injuries by
the party responsible.D.The concept that people should be treated
differently.E.None of these.
The concept that the party responsible should compensate
individuals for the cost of their injuries is referred to
as:A.distributive justice.B.injury justice.C.procedural
justice.D.organizational justice.E.compensatory justice.
The thinking underlying the domain of ____ is the closest to the
justice approach.A.social responsibilityB.free
choiceC.lawD.discretionary responsibilityE.ethics
Most of the laws guiding human resource management are based on
the:A.utilitarian approach.B.moral-rights approach.C.individualism
approach.D.justice approach.E.collectivism approach.
____ is NOT included in the model of personal moral development
described in your text.A.Preconventional levelB.Conventional
levelC.Principled levelD.Postconventional levelE.All of these are
included in the model
In what stage of personal moral development is a person mostly
concerned with external rewards and personal consequences of an
action?A.PreconventionalB.ConventionalC.PrincipledD.DiscretionaryE.None
of these
The _____ leadership style matches with the preconventional
level of personal moral development.A.autocraticB.team
orientedC.servant leadershipD.guiding/encouragingE.transforming
_____ matches with the preconventional level of personal moral
development.A.Work group collaborationB.Task
accomplishmentC.Empowered employeesD.Full
participationE.Transforming
Which of these employee behaviors matches with the conventional
level of personal moral development?A.Task
accomplishmentB.Empowered employeesC.Work group collaborationD.Full
participationE.Act in own interest
Which of the following stages is the stage of personal moral
development in which an individual develops an internal set of
standards and
values?A.PreconventionalB.ConventionalC.PrincipledD.DiscretionaryE.Social
People making decisions based on an internal set of beliefs that
has more meaning to them than the expectations of others:A.are in
the preconventional level of moral development.B.are in the
conventional level of moral development.C.are in the principled
level of moral development.D.do not care what people think of
them.E.none of these.
Which of these employee behaviors matches with the
postconventional level of personal moral development?A.Empowered
employees, full participationB.Task accomplishmentC.Act in own
interestD.Work group collaborationE.Autocratic
Regarding the levels of personal moral development, the majority
of managers operate at the _____
level.A.preconventionalB.autocraticC.postconventionalD.conventionalE.transformative
The great majority of managers operate at the:A.preconventional
level.B.principled level.C.conventional level.D.postconventional
level.E.autocratic level.
When the USS Indianapolis sank after being torpedoed, one Navy
pilot disobeyed orders and risked is life to save men who were
being picked off by land sharks. The Navy pilot was operating from
the _____ level of moral
development.A.preconventionalB.conventionalC.postconventionalD.lowestE.conservative
_____ matches with the postconventional level of personal moral
development.A.Team
orientedB.AutocraticC.Guiding/encouragingD.CoerciveE.Servant
leadership
Only about _____ percent of American adults reach the
level-three stage of moral
development.A.twoB.fourC.elevenD.fifteenE.twenty
Which of these best illustrates the preconventional stage of
moral development?A.Everybody else is doing it, so it must be
okay.B.What would my boss think if I did this?C.I know this is not
right, and I will not do it, even if everyone else is.D.What am I
going to get from making this decision?E.All of these.
The conventional stage of moral development is best described by
which of the following statements?A.I won't do that because the
boss will be upset with me.B.Everybody else is doing it, so it must
be okay.C.I know this is not right, and I will not do it, even if
everyone else is.D.What am I going to get from making this
decision?E.All of these.
Most people have learned to conform to expectations of good
behavior expected by colleagues, family, friends, and society. They
are in what stage of moral
development?A.PreconventionalB.ConventionalC.DiscretionaryD.PrincipledE.Traditional
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.
Primary stakeholders of an organization
include:A.employees.B.customers.C.investors and
shareholders.D.suppliers.E.all of these.
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.
What type of a stakeholder would a nature conservation group be
for a paper manufacturing
company?A.SupplierB.CompetitorC.EmployeeD.Special interest
groupE.None of these
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.sustainabilityB.conservationC.ethicsD.preservationE.human
concerns
_____ is economic development that generates wealth and meets
the needs of their current generation while focusing on future
generations.A.Ethical managementB.Activist
strategyC.SustainabilityD.Market strategyE.Future management
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.PreservationB.ConservationC.EnvironmentalismD.ProtectionismE.Sustainability
The profit-maximizing view of economic responsibility is
advocated by _____.A.Milton FriedmanB.Arthur AndersonC.Donald
TrumpD.Warren BuffettE.Steve Jobs
According to the book's model for judging corporate social
performance, social responsibility is divided into what into four
sections?A.Ethical, legal, technical, and rationalB.Mandatory,
technical, discretionary, and economicC.Legal, mandatory, economic,
and ethicalD.Discretionary, legal, economic, and ethicalE.None of
these
With respect to appropriate corporate behavior, what society
deems _____ as important.A.ethical responsibilityB.discretionary
responsibilityC.economic responsibilityD.legal
responsibilityE.moral responsibility
_____ is considered a decision that enables an individual or
company to benefit at society's expense.A.A legal behaviorB.An
unethical behaviorC.An economic responsibilityD.A discretionary
responsibilityE.A responsible behavior
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.EthicalB.EconomicC.LegalD.DiscretionaryE.Stakeholder
_____ is the responsibility that goes beyond societal
expectations to contribute to the community welfare.A.Ethical
responsibilityB.Discretionary responsibilityC.Economic
responsibilityD.Legal responsibilityE.Technical responsibility
_____ 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
leadershipB.FollowershipC.Corporate espionageD.Command-and-control
approachE.Concern for production leadership
A code of _____ is a formal statement of the company's values
concerning ethics and social
issues.A.integrityB.trustC.citizenshipD.ethicsE.honesty
Statements that define fundamental values and reference
organizational responsibilities, products and employees are often
called
_____.A.principle-basedB.policy-basedC.ethically-basedD.codifiedE.codes
of organizational integrity
_____ includes behavior that is not always written down and may
actually not serve an organization's bottom-line.A.Legal
responsibilityB.Economic responsibilityC.Ethical
responsibilityD.Discretionary responsibilityE.None of these
Of the following, which may whistle-blowers suffer?A.Job
lossB.Ostracism by coworkersC.Transfer to lower-level
positionD.Hostile work environmentE.All of the above
MANAGER'S SHOPTALK in Chapter 5 addresses how todays companies
are trying to teach sustainablility to new managers by placing them
with which of the following types of organizations?A.small,
entrepreneurial start-upsB.Nonprofits in developing
countiresC.Government agencies in developed countriesD.Tech firms
that are developing cutting edge productsE.Logistics companies that
supply products worldwide
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.
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.
Which of these is the disclosure by an employee of an illegal
activity?A.TattlingB.Whistle-blowingC.Organizational
communicationD.The filing of a disclosure statementE.Snooping
_____ is not part of the structures and systems pillar of an
ethical organization.A.Corporate cultureB.Code of ethicsC.Ethics
committeeD.Whistle-blowing mechanismsE.Rewarding ethical
behavior
Examples of unethical behavior toward _____ include a hostile
work environment and violations of health and safety
rules.A.customersB.financiersC.societyD.suppliersE.employees
The relationship between social responsibility and financial
performance has been shown to be
_____.A.non-existentB.positiveC.negativeD.not importantE.a
reflection of top leadership
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.
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.
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.
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.
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.
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.
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.
A(n) _______ would outline the procedures Larry should use in
this and other ethical situations.a.principle-based statementb.code
of ethicsc.corporate credod.policy-based statemente.ethics
committee
_____ 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.________________________________________
When values and standards are written into the legal system, it
is referred to as
_____.________________________________________
A(n) _____ arises in a situation when each alternative choice or
behavior is undesirable because of potentially harmful ethical
consequences.________________________________________
The _____ is an individual responsible for making an ethical
choice.________________________________________
The ethical concept that moral behaviors produce the greatest
good for the greatest number is referred to as _____
approach.________________________________________
The _____ approach contends that acts are moral when they
promote the individual's best long-term
interests.________________________________________
The _____ approach assets that human beings have fundamental
rights and liberties that cannot be taken away by an individual's
decision.________________________________________
The _____ approach holds that moral decisions must be based on
standards of equity, fairness, and
impartiality.________________________________________
_____ justice requires that different treatment of people not be
based on arbitrary
characteristics.________________________________________
_____ justice requires that rules should be clearly stated and
consistently and impartially
enforced.________________________________________
_____ justice argues that individuals should be compensated for
the cost of their injuries by the party
responsible.________________________________________
The _____ approach to ethical decision making says that moral
behavior stems from personal
virtues.________________________________________
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.________________________________________
A decision to monitor employees nonwork activities violates the
right to _____.________________________________________
At the _____ level of personal moral development, individuals
are most concerned with external rewards and
punishments.________________________________________
People learn to conform to the expectations of good behavior
that are set by peers and society at the _____
level.________________________________________
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.________________________________________
Most managers operate at the _____
level.________________________________________
Management's obligation to make choices that will contribute to
the well being of both the organization and society is known as
_____.________________________________________
A(n) _____ is any group within or outside the organization that
has a stake in the organization's
performance.________________________________________
Organizations that are _____ responsible consider the effects of
their actions on all stakeholder groups and may invest in a number
of philanthropic causes that benefit
stakeholders.________________________________________
_____ 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.________________________________________
The _____ approach to economic responsibility means that
economic gain is the only social responsibility and can lead
companies into trouble.________________________________________
When a company does just what is necessary to satisfy legal
requirements, it falls under the _____ approach in shades of
green.________________________________________
_____ responsibility is purely voluntary and guided by a
company's desire to make social contributions not mandated by
economics, law, or
ethics.________________________________________
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.________________________________________
_____ generally outline the procedures to be used in specific
ethical situations, such as marketing practice, conflicts of
interest, and observance of
laws.________________________________________
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)
_____.________________________________________
_____ programs help employees deal with ethical questions and
translate the values stated in a code of ethics into everyday
behavior.________________________________________
Employee disclosure of illegal organization activities is known
as _____..________________________________________
The relationship between social responsibility and financial
performance has been shown to be
_____.________________________________________
List three of the six moral rights that should be considered
during decision making.
List the four criteria for ethical decision-making described in
the book.
List three examples of primary stakeholders.
List the four responsibilities of corporate social
performance.
Define ethics and explain how the domain of ethics relates to
law and free choice.
List the four approaches that are used to describe values for
guiding ethical decision making. Briefly describe each.
Briefly explain the justice approach to ethics and then explain
the three types of justice.
List and define the stages of moral development.
What is social responsibility? Why is it considered a difficult
concept to grasp?
Explain the concept of a stakeholder and list five common
stakeholders.
List and define the criteria of corporate social
responsibility.
Explain the differences between principle-based statements and
policy-based statement in an organization's code of ethics.
Chapter 5--Managing Ethics and Social Responsibility
Key1.TRUE2.FALSE3.FALSE4.FALSE5.TRUE6.TRUE7.TRUE8.FALSE9.FALSE10.TRUE11.FALSE12.TRUE13.FALSE14.FALSE15.FALSE16.FALSE17.TRUE18.FALSE19.TRUE20.FALSE21.FALSE22.TRUEFALSEFALSETRUETRUEFALSETRUETRUEFALSETRUETRUEFALSETRUETRUETRUETRUEFALSETRUEFALSEFALSETRUETRUETRUEFALSETRUEFALSETRUETRUETRUECBBABBDCDCABCAABEBCCCDBADDADCABECDEAABCCCADCCEEDBBCEDDACEADDBDBADACEBABBEEBABdbdEthicscodified
lawethical dilemmamoral
agentutilitarianindividualismmoral-rightsormoral
rightsjusticeDistributiveProceduralCompensatoryvirtue
ethicspracticalprivacypreconventionalconventionalpostconventional
principledconventionalorsecondsocial
responsibilitystakeholdersociallysocial
sustainabilityprofit-maximizinglegalDiscretionarycode of
ethicsPolicy-based statementsethics committeeEthics
trainingwhistle-blowingpositiveStudents can list any three of the
following: the right of free consent, the right to privacy, the
right of freedom of conscience, the right of free speech, the right
to due process, and the right to life and safety.Utilitarianism,
individualism, moral-rights, and justice.Investors, shareholders,
employees, customers, and suppliers are all examples of primary
stakeholders.economic responsibility, legal responsibility, ethical
responsibility, and discretionary responsibilityEthics is the code
of moral principles and values that govern the behaviors of a
person or a group with respect to what is right or wrong. In
Codified Law, the values and standards are written into the legal
system and enforceable in the courts. In free choice, the law has
no say and the individual or group has complete freedom. The domain
of ethics is found between Codified Law and free choice. While
written laws do not bind ethics, still there are standards of
conduct based upon shared principles and values.Utilitarian
approach is the ethical concept that moral behaviors produce the
greatest good for the greatest number.
Individualism approach is the ethical concept that acts are
moral when they promote the individual's best long-term interests.
This will eventually lead to the greatest good.
Moral-rights approach is the ethical concept that moral
decisions are those that best maintain the rights of those people
affected by them.
Justice approach is the ethical concept that moral decisions
must be based on standards of equity, fairness, and
impartiality.The justice approach is the ethical concept that moral
decisions must be based on standards of equity, fairness, and
impartiality. Distributive justice requires that different
treatment of people be based only on substantive differences and
not be based on arbitrary characteristics. Procedural justice
requires that all rules be administered fairly. Rules should be
clearly stated and consistently enforced. Compensatory justice
requires that individuals should be compensated for the cost of
their injuries by the party responsible and that individuals not be
held responsible for matters over which they have no
control.According to the model in the book, there are three stages
of moral development. During the preconventional stage (level 1),
individuals are mostly concerned with external rewards and
punishments. They obey authority in order to avoid punishment.
Individuals conforming to the expectations of others characterize
the second level, the conventional stage. Fulfilling social and
interpersonal obligations is important. At the
postconventional/principled stage (level 3), an individual's
behavior is directed by an internal set of values and beliefs.
These values are more important than the expectations of
others.Social responsibility is management's obligation to make
choices and take actions that will contribute to the welfare and
interests of society as well as the organization.
It can be a difficult concept to grasp because different people
have different beliefs as to what will improve society's well being
and it covers a range of ambiguous issues with respect to right or
wrong.A stakeholder is any individual or group of people, inside
the organization or outside the organization, that has a stake or
direct interest in that organization's performance. Stakeholders
inside the organization include the employees, the managers, and
the stockholders. Stakeholders outside the organization include
customers, suppliers, regulatory agencies, and creditors.There are
four criteria of corporate social responsibility. The first
criterion of social responsibility is economic responsibility. The
organization's basic responsibilities are to produce the goods and
provide the services that society wants, while at the same time
maximizing profits and wealth for owners and stockholders. The
second criterion is legal responsibilities. Through its laws, each
society has defined what it considers to be appropriate corporate
behavior. According to this criterion, businesses are expected to
fulfill their economic goals within the law. Ethical
responsibilities make up the third criterion. These include
behaviors not necessarily codified into law, nor do they
necessarily serve the organization's direct economic interests.
Discretionary responsibilities, the fourth criterion, are entirely
voluntary and are guided by the organization's desire to make a
social contribution not mandated by economics, law, and/or
ethics.Principle-based statement are designed to affect corporate
culture; they define fundamental values and contain general
language about company responsibilities, quality of products, and
treatment of employees. General statements of principle are often
called corporate credos. Policy-based statements generally outline
the procedures to be used in specific ethical situations. These
situations include marketing practices, conflicts of interest,
observance of laws, proprietary information, political gifts, and
equal opportunities.