Q&A Hero

Q: Discuss the idea that ethics may change over time. Give an example of an ethical value that may be changing in the culture in which you presently live. Explain.

Q: Discuss the relationship between ethics and laws.

Q: Define ethical dilemma, moral scruples, and ethics. Provide an example of an ethical dilemma.

Q: 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

Q: 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

Q: 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.

Q: _____ 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

Q: Demonstrating its social responsibility helps a company build a good _____. A. infrastructure B. production unit C. selection process D. reputation E. organizational hierarchy

Q: David is trying to provide a visible means of support to develop an ethical culture in his company. He can do so by creating: A. an ethics ombudsperson position. B. ethical beliefs that remain rigidly constant. C. strict leadership rules for the top management. D. a plan for minimum compensation benefits. E. a strong HR team.

Q: 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 organizations 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.

Q: _____ can provide guidance when organization members are uncertain about whether an action is ethical. A. Stockholders B. Ethics philosophers C. Ethics ombudspeople D. Suppliers E. Consumers

Q: A manager responsible for communicating and teaching ethical standards to all employees and monitoring their conformity to those standards is called a(n) _____. A. director B. stockholder C. ethics interpreter D. ethics ombudsperson E. supplier

Q: 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. consumer E. ethics ombudsperson

Q: 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

Q: _____ companies 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

Q: 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

Q: The approach to social responsibility most likely to be taken by a typical large U.S. company is the _____ approach. A. accommodative B. proactive C. defensive D. obstructionist E. offensive

Q: The president at Protector's Insurance takes pride in the fact that his organization strives to behave legally and ethically. The company advocates an approach that tries to balance the interests of different stakeholders in relation to the claims of other stakeholders. What approach to social responsibility is the organization implementing? A. Accommodative B. Proactive C. Defensive D. Obstructionist E. Offensive

Q: 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

Q: 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

Q: A company that expects its managers to behave ethically to the degree that they stay within the law is acting with a(n) _____ approach. A. accommodative B. proactive C. defensive D. obstructionist E. offensive

Q: 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

Q: Which of the following approaches is characterized with the highest degree of social responsibility? A. Accommodative B. Proactive C. Defensive D. Obstructionist E. Offensive

Q: Managers who sell their stock in advance of other stockholders because they know that their companys performance is about to fall demonstrate the _____ approach to social responsibility. A. accommodative B. proactive C. defensive D. obstructionist E. reactive

Q: 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

Q: 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? Author: I took this change from the questions section above and corrected it. However, I think the sentence was better before the change. A. Accommodative B. Proactive C. Defensive D. Obstructionist E. Obligatory

Q: Which of the following approaches to how to be socially responsible is characterized by low levels of socially responsible behavior? Author: I took this change from the questions section above and corrected it. However, I think the sentence was better before the change. A. Accommodative B. Proactive C. Defensive D. Obstructionist E. Obligatory

Q: 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 companys top managers consistently endorse the ethical principles in its corporate credo. C. Top managers play the least important role in determining a companys ethics. D. The individual ethics of a companys founders and top managers are especially important in shaping the organizations 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.

Q: Which of the following stakeholder group's individual ethics are important in shaping the organizational code of ethics? A. Entrepreneurs B. Customers C. Community D. Founders E. Stockholders

Q: The guiding practices and beliefs through which a particular firm and its managers view their responsibilities to stakeholders are called _____. A. societal ethics B. occupational ethics C. individual ethics D. organizational ethics E. governmental ethics

Q: 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 are called _____. A. societal ethics B. occupational ethics C. individual ethics D. organizational ethics E. governmental ethics

Q: When faced with an ethical dilemma as a manager, Sam tries to reflect back on his upbringing to decide between right and wrong. Sam is reflecting on _____. A. societal ethics B. occupational ethics C. individual ethics D. organizational ethics E. religious ethics

Q: After a lengthy investigation, Larry lost his license to practice law on charges of accepting bribes. In all likelihood, Larry probably violated his _____. A. environmental ethics B. occupational ethics C. individual ethics D. organizational ethics E. governmental ethics

Q: Bob gave a talk to his employees about standards that govern how members of their profession should conduct themselves. He was talking about _____. A. societal ethics B. occupational ethics C. individual ethics D. organizational ethics E. governmental ethics

Q: 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 are called: A. societal ethics. B. occupational ethics. C. individual ethics. D. organizational ethics. E. governmental ethics.

Q: 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.

Q: The esteem or high repute that individuals or organizations gain when they behave ethically is called _____. A. trust B. reputation C. social responsibility D. moral standing E. emotional value

Q: A person's confidence and faith in another person's goodwill is called: A. trust B. reputation C. responsibility D. moral standing E. emotional value

Q: The idea that the pursuit of self-interest with no consideration for societal interests leads to disaster is called the _____. A. "tragedy of the commons" B. "market for lemons" C. "halo effect" D. "race to the bottom" E. "prisoner's dilemma"

Q: Web sites like Napster 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. "race to the bottom" B. "tragedy of the commons" C. "prisoner's dilemma" D. "war of attrition" E. "market for lemons"

Q: Which of the following statements is true of the practical rule of ethical decision making? A. This rule emphasizes distributing benefits and harms in an equitable way. B. This rule states that it is acceptable for a company to choose an unethical action if the action provides the greatest good for the greatest number of people. C. This rule requires managers to determine the fair or unfair rules and procedures for distributing outcomes to stakeholders. D. This rule states that an ethical decision is one that a manager will be hesitant or reluctant to communicate to people outside the company because the typical person in a society would think it is unacceptable. E. This rule ensures that managers will take into account the interests of all the stakeholders.

Q: 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. arbitrary factors E. the competitor's decision making strategies

Q: If Samantha was employing the moral rights rule in her decision making, she would: A. seek to protect the 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.

Q: The practical rule states that an ethical decision is one 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 a fair way. D. can be communicated with no reluctance. E. is relevant to the financial effectiveness of the organization.

Q: 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 is unaware of the harmful implications of the decision. E. he/she could blame the top management of the firm.

Q: 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

Q: 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

Q: 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

Q: 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.

Q: Which of the following statements is true of ethical decision making? A. Customers are often regarded as the least important stakeholder group. B. Communities, societies, and nations are independent of the effects of the decisions made by companies. C. The failure of a company can have catastrophic effects on a community since a general decline in business activity can affect a whole nation. D. The results of ethical behavior are loss of reputation and resources, and skilled managers and employees leaving the company. E. When making business decisions, managers must exclusively consider the claims of stockholders.

Q: 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

Q: 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

Q: _____ are frequently in the position of having to juggle the interests of different stakeholders, including themselves. A. Stockholders B. Customers C. Contractors D. Managers E. Suppliers

Q: The stakeholder group with the most responsibility for deciding the goals of the organization is: A. stockholders. B. customers. C. managers. D. operational-level employees. E. consultants.

Q: _____ have a claim on an organization because they bring to it their skills, expertise, and experience. A. Customers B. Entrepreneurs C. Suppliers D. Local communities E. Managers

Q: _____ have the right to expect a good return or reward by investing their human capital to improve a companys performance. A. Customers B. Entrepreneurs C. Suppliers D. Distributors E. Managers

Q: _____ watch the company and its managers closely to ensure that management is working diligently to increase the company's profitability. A. Entrepreneurs B. Suppliers C. Stockholders D. Angel investors E. Distributors

Q: 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 companys 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.

Q: 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.

Q: _____ are thoughts and feelings that tell people what is right or wrong. A. Moral scruples B. Ethical dilemmas C. Aesthetics D. Norms E. Reiterations

Q: The moral principles and beliefs about what is the right or appropriate way to behave are known as _____. A. aesthetics B. laws and regulations C. ethics D. terminal values E. instrumental values

Q: Dianna has noticed that there has been an error in her weekly pay stub and the company has unknowingly paid her too much. This example illustrates a(n) _____. A. moral scruple B. ethical dilemma C. empiricism D. norm E. logical positivism

Q: An accommodative approach acknowledges the need to support social responsibility. A. True B. False

Q: An obstructionist approach displays the highest level of social responsibility. A. True B. False

Q: A company's stance on social responsibility is the way its managers and employees view their obligation to make decisions that promote the well-being of stakeholders and society as a whole. A. True B. False

Q: When making appointment decisions, it is wise for the board of directors to avoid scrutinizing the reputations and ethical records for top managers. A. True B. False

Q: Employees are much more likely to act ethically when a credo does not exist or is avoided. A. True B. False

Q: Stockholders play a crucial role in determining a companys ethics. A. True B. False

Q: If a companys top managers consistently endorse the ethical principles in its corporate credo, they can prevent employees from going astray. A. True B. False

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

Q: The way a company's managers view their duty to make decisions that enhance the well-being of stakeholders is called organizational ethics. A. True B. False

Q: An organization's code of ethics is shaped by the ethics of the top managers of the organization. A. True B. False

Q: 30. The standards that govern how members of a profession should conduct themselves are called organizational ethics. A. True B. False

Q: Trust refers to the esteem or high repute that people or organizations gain when they behave ethically. A. True B. False

Q: Web sites like Napster that allow free downloading of songs and movies illustrate the "tragedy of the commons" because pursuit of self-interest only destroys societal interest. A. True B. False

Q: When one person starts to profit by behaving unethically, it encourages other people to act in the same way. A. True B. False

Q: Applying the practical rule to analyze a business decision ensures that managers are taking into account the interests of all stakeholders. A. True B. False

Q: 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. A. True B. False

Q: "An ethical decision is one that a typical person in a society would think is acceptable" is a statement that reflects the practical rule. A. True B. False

Q: Under the justice rule, managers should determine fair rules and procedures for distributing outcomes to stakeholders. A. True B. False