Chapter 5 - qna PDF

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CHAPTER 5 1) According to the classical view of social responsibility, management’s only social responsibility is to maximize profits. TRUE

2) The most outspoken advocate of the classical view of organizational social responsibility is Milton F. TRUE 3) According to socioeconomic view, managers’ social responsibilities go beyond making profits to include protecting and improving society’s welfare. TRUE 4) When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive. FALSE 5) One argument against businesses championing social responsibility issues is that businesses already have too much power. TRUE 6) Possession of resources is an argument for social responsibility. TRUE 7) The legal approach to going green is also known as the dark green approach. FALSE

16) When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results. TRUE 17) The Global Compact is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. TRUE 18) The Organization for Economic Co-Operation and Development developed a global code of ethics. FALSE 19) Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists. FALSE 20) Under the Sarbanes-Oxley Act, whistle-blowers in the United States who report suspected corporate violations of laws now have broad protection from reprisals and retaliation. TRUE 21) Social obligation is the obligation of a business to meet its ________.

8) An organization is said to adopt the market approach to going green when it responds to the environmental demands made by its stakeholders. FALSE

A) B) C) D)

9) The activist approach to going green is when an organization looks for ways to protect the earth’s natural resources. TRUE

22) The ________ view of social responsibility holds that management’s only social responsibility is to maximize profits.

10) In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general. FALSE

A) B) C) D)

11) At the conventional level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others. TRUE

23) The most outspoken advocate of the classical view of social responsibility is economist and Nobel laureate __.

12) At the principled level of moral development, an individual values the rights of others and upholds absolute values and rights regardless of the majority’s opinion. TRUE

A) B) C) D)

13) The term “values” refers to the principles and beliefs that define what is right and wrong behavior. FALSE

24) Under the concept of social obligation, the organization does what is required by the ________.

14) People with an internal locus of control believe that what happens to them is due to luck or chance. FALSE

A) B) C) D)

15) An organization’s structural design, its goals, performance appraisal systems, and reward allocation procedures influence the ethical choices of employees. TRUE

social and technological responsibilities economic and social responsibilities technological and economic responsibilities economic and legal responsibilities

socioeconomic classical contemporary sociolegal

George Stigler Arthur F. Burns Homer Jones Milton Friedman

society stakeholders environment law

25) The ________ view is that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare.

CHAPTER 5 A) sociotechnical B) socioeconomic C) sociolegal D) sociopolitical

26) When a firm advertises that it only uses recycled paper products it is ________. A) B) C) D)

meeting its social obligation meeting its social screening requirements being socially responsive adopting green management

27) A U.S. business that provides on-site childcare facilities for employees is ________. A) B) C) D)

being socially responsive fulfilling its social obligations adopting social screening practicing green management

28) ________ is defined as a business firm’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A) B) C) D)

Social obligation Social responsibility Social screening Values-based management

29) The aspect that differentiates social responsibility from other similar concepts is that it adds a(n) ________. A) B) C) D)

ethical imperative legal imperative political imperative technical imperative　

30) In the United States a company that meets federal pollution control standards and does not discriminate in hiring, promotion, and pay is generally meeting its ____. A) B) C) D)

social screening requirements green management requirements social obligation social responsibility

31) Which of the following examples reflects a socially responsible action by an organization? A) Ford Motor Company became the first automaker to endorse a federal ban on sending text messages while driving. B) Apple has eliminated lead-lined glass monitors from its product line and pioneered reducedsized packaging that leverages recyclable materials.

C) Fed Ex provided the Federal Emergency Management Agency (FEMA) with a radio antenna to set up communications in the immediate aftermath of Hurricane Katrina. D) UPS has a company-wide policy that urges employees to volunteer during natural disasters and other crises. 32) According to the ________ argument on social responsibility, businesses should be socially responsible because responsible actions are the right thing to do. A) B) C) D)

public expectation ethical obligation public image long-run profit

33) The belief that business involvement can help solve difficult social problems is the ________ argument on social responsibility. A) B) C) D)

public expectation public image better environment possession of resources

34) Which of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct? A) B) C) D)

superiority of prevention over cures possession of resources accountability skills

35) Which of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests? A) B) C) D)

costs violation of profit maximization superiority of prevention over cures too much power

36) Which of the following arguments on social responsibility states that pursuing social goals hurts a business’s economic productivity? A) B) C) D)

image dilution of purpose costs lack of skills

37) Which of the following arguments on social responsibility states that there is no direct line of responsibility for social actions? A) dilution of purpose B) stockholder interest

CHAPTER 5 C) too much power D) lack of accountability

38) The process of applying social and environmental criteria to an investment decision is known as ________. A) B) C) D)

green management value-based management community investing social screening

39) Managers who consider the impact of their organization on the natural environment are said to be practicing ________. A) B) C) D)

value-based management ethics-based management conventional management green management

40) In which of the following approaches of going green does organization exhibit least environmentalsensitivity? A) B) C) D)

light green approach deep green approach market approach stakeholder approach

41) In the ________ approach of going green, organizations respond to the environmental preferences of customers. A) B) C) D)

legal market stakeholder activist

and is also a good illustration of the social responsibility of the organization? A) B) C) D)

legal approach market approach stakeholder approach activist approach

45) Many companies around the globe voluntarily report their efforts in promoting environmental sustainability using the guidelines developed by the ________. A) B) C) D)

United Nations Environmental Protection Agency Global Reporting Initiative Organization for Economic Co-operation and Development

46) Which of the following ISO standards is related to quality management? A) B) C) D)

ISO 9000 ISO 14000 ISO 8000 ISO 15000

47) Which of the following ISO standards is related to environmental management? A) B) C) D)

ISO 7000 ISO 14000 ISO 16000 ISO 8000

48) One way to evaluate a company’s green actions is to use the ________ list of the most sustainable corporations in the world.

42) In the ________ approach of going green, an organization works to meet the environmental demandsof its employees, suppliers, or community.

A) B) C) D)

A) B) C) D)

49) To be named on the Global 100 list, which is announced each year at the ________, a company has to display a superior ability to effectively manage environmental and social factors.

deep green light green market stakeholder

43) There are four approaches that organizations can take in order to go green. Which of the following is NOT a part of those approaches? A) B) C) D)

legal approach market approach stakeholder approach operations approach

44) Which of the following approaches of going green reflects the highest degree of environmental sensitivity

A) B) C) D)

Global 100 Global 90 Global 80 Global 70

Global Reporting Council World Economic Forum United Nations Economic and Social Council World Social Forum

50) ________ defined as the principles and beliefs that define right and wrong decisions and behavior. A) B) C) D)

Whistle-blowing is Entrepreneuring is Ethics is Values are

CHAPTER 5 51) At the ________ level of moral development, a person’s choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors.

A) B) C) D)

preconventional conventional principled elevated

52) At the ________ level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others. A) B) C) D)

principled conventional conscientious preconventional

53) At the ________ level of moral development, individuals define moral values apart from the authority of the groups to which they belong or society in general. A) B) C) D)

conventional established principled preconventional

54) In which of the stages of moral development do individuals stick to rules to avoid physical punishment and follow rules only when doing so is in their immediate interest? A) B) C) D)

conventional stage principled stage elevated stage preconventional stage

55) In which of the following stages of moral development do individuals live up to what is expected by people close to them and maintain conventional order by fulfilling obligations to which they have agreed? A) B) C) D)

conscientious stage conventional stage principled stage preconventional stage

56) In which of the following stages of moral development do individuals value rights of others and upholding absolute values and rights regardless of the majority’s opinion? A) B) C) D)

preconventional stage conventional stage principled stage established stage

57) ________ represent basic convictions about what is right and wrong.

A) B) C) D)

Dogmas Values Cultures Beliefs

58) John Doe is employed with the IT department in Abel and Associates that provides financial consultancy services to several wealthy investors. He is approached by a shady investor who offers attractive incentives for stealing some sensitive information regarding the investment patterns of one of the clients of the company. Which of the following statements best reflects John’s thoughts if he is at the preconventional level of moral development? A) If I do go through with the act, I will be letting down my manager and coworkers badly. B) My job is to protect the information that this company deals in and I should not violate my duties. C) I am liable to be criminally prosecuted for my involvement in stealing the information. D) Going through with this act would be highly unfair not just to the client, but also to my employers. 59) John Doe is employed with the IT department in Abel and Associates, that provides financial consultancy services to several wealthy investors. He is approached by a shady investor who offers attractive incentives for stealing some sensitive information regarding the investment patterns of one of the clients of the company. Which of the following statements best reflects John’s thoughts if he is at the principled level of moral development? A) My job is to protect the information that this company deals in and I should not be violating my duties. B) By stealing from another person, I will be in violation of the moral standards I’ve come to expect of myself. C) If my involvement is detected, my friends and family would be humiliated by my actions. D) If I am convicted for this crime, I will surely be imprisoned and will probably never be employed anywhere else. 60) ________ measures the strength of a person’s convictions. A) B) C) D)

Moral development Locus of control Ego strength Social desirability

61) ________ is the degree to which people believe they control their own fate. A) Ego strength B) Locus of control

CHAPTER 5 C) Social responsibility D) Social obligation

62) What can be said about a manager who believes that she worked hard and met the productivity goals of her organization despite unfavorable conditions? A) B) C) D)

She has an external locus of control. She has a high ego strength. She has a low ego strength. She has an internal locus of control.

63) Which of the following organizations is best suited to promote ethical behavior in its employees? A) An organization that has a reward and punishment system that depends on specific goal outcomes. B) An organization that has formal rules and regulations in place. C) An organization that wants its employees to achieve their goals at any cost. D) An organization that has a performance appraisal system that focuses exclusively on outcomes. 64) Which of the following is true concerning the impact of organizational culture on ethical behavior? A) An organization with low conflict tolerance encourages ethical behavior. B) An organization with strong culture encourages high ethical standards. C) An organizational culture that is high in conflict tolerance encourages unethical behavior. D) An organizational culture that is high in control encourages unethical behavior. 65) A student who never considers breaking into an instructor’s office to steal an accounting exam didn’t think twice about asking a friend who took the same course from the same instructor last semester what questions were on the exam. What does this example illustrate? A) This example illustrates the concept of issue intensity. B) The student involved has an internal locus of control. C) The student involved has a strong ego strength. D) This example illustrates the concept of value-based management. 66) Which of the following is NOT one of the six determinants that are relevant in deciding issue intensity? A) B) C) D)

consensus of wrong discovery of the act probability of harm immediacy of consequences

67) The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________. A) make any cash payment for deferential treatment in a foreign transaction B) make any payment over 5 percent of total cost toward administrative overhead in foreign transactions C) knowingly corrupt a foreign official D) knowingly pay a foreign clerical or ministerial employee in exchange for service 68) ________ is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. A) B) C) D)

The Global Reporting Initiative The Global Compact The Global Convention The Global Ethics

69) Freedom of association and the effective recognition of the right to collective bargaining are the Global Compact principles in the area of ________. A) B) C) D)

anti-corruption human rights labor standards the environment

70) The idea that businesses should eliminate discrimination in respect to employment and occupation is a Global Compact principle in the area of ________. A) B) C) D)

anticorruption human rights environment labor standards

71) The centerpiece of the ___ efforts is the AntiBribery Convention that was the first global instrument to combat corruption in cross-border business deals. A) Organization for Economic Co-operation and Development’s B) Institute of Global Ethics’ C) Ethics and Compliance Officer Association’s D) United Nations’ 72) A ________ is a formal statement of an organization’s primary values and the ethical rules it expects its employees to follow. A) B) C) D)

mission statement code of purpose code of ethics vision statement

CHAPTER 5 73) The primary debate about ethics training programs is whether ________.

A) ethics can be taught B) ethics causes misconduct C) the programs cover misconduct outside the workplace D) the programs give unethical individuals more ammunition 74) Which of the following is NOT a way for management to reduce unethical behavior? A) B) C) D)

select individuals with high ethical standards establish codes of conduct provide ethics training monitor employee telephone calls

The board of directors of Acme Generating Corporation is meeting to consider the construction of a new electricity generation facility somewhere along the Muspetan River basin. The city of Muspetan has a high Air Pollution Index and the increasing amount of garbage is adding to the city’s woes. Director Appleton would like the facility to be a coal-burning plant located in a remote area because the cost involved is moderate. Director Witworth wants a nuclear plant because this will not add to the city’s already serious pollution problem, while taking care of its electricity requirements. Director Jossleman wants a plant that uses combustible fuels collected from the city’s garbage. He wants the plant to be located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines.

75) Employees who raise ethical concerns or issues in an organization are known as ________.

79) Director Appleton is following which of the social responsibility views?

A) B) C) D)

A) B) C) D)

employee-volunteers whistle-blowers entrepreneurs philanthropist

76) The ________ Act offers some legal protection to whistle-blowers. It has a provision wherein any manager who retaliates against an employee for reporting violations faces a stiff penalty of a 10-year jail sentence. A) B) C) D)

Sarbanes-Oxley Glass-Steagall Taft-Hartley Landrum-Griffin

77) A _____...