Chapter 4--The Ethical and Social

Environment Key
1. Ethi
Ethics
cs are
are cult
cultur
ural
al belie
beliefs
fs about
about wh
whet
ether
her beh
behav
avio
ior,
r,
actions, or decisions are right or wrong.

FALSE

2. After
ter Japa
Japan
n won th the
e Wor
orlld Cu
Cup
p on
one e of its pla
players
yers
apologized profusely for appearing to criticize the coach.

Aerican athletes in any sports criticize fellow players,

coaches, and anagers. !his is an e"aple of how

ethical behavior is siilar across cultures.

FALSE

#. $e
$ega
gall and
and et
ethi
hica
call guid
guidel
elin
ines
es sugge
suggest
st that
that hiri
hiring
ng an
and
d
%ring decisions should be based solely on an individual&s

ability to perfor the 'ob.

TRUE

(. )ecrecy and con%dentiality are a'or considerations in

the relationship of the eployee to the %r.

TRUE

*. !he
!he pr
pri
iar
ary
y ag
agen
ents
ts of inter
nteres
estt for
for an or
orga
gani
niza
zati
tion
on
besides eployees include custoers, copetitors,

stoc+holders, suppliers, dealers, and unions.

TRUE

. -f copetitors fro dierent countries are giving bribes

to get contracts in developing countries, it is

acceptable under /.). law that a /.). copany can do the

sae if it can show copetitive reasoning.

FALSE
 

0. A code of ethics will ensu

nsure ethic
hical behavior by
eployees.

FALSE

. What distinguishes ethical fro unethical behavior is

often sub'ective and sub'ect to dierences of opinion.

TRUE

. All ethical dileas can be avoided.

FALSE

13. 4rocedural 'ustice refers to people&s perceptions of the

fairness with which rewards and other valued

outcoes are distributed within the organization.

FALSE
11. -nforational 'ustice relates to the degree of fairness
people see in how they are treated by others in their

organization.

FALSE

12. 5e
12. 5errnard
nard 6a
6ado
do defr
defraud
audeded cl
clie
ient
nts
s ou
outt of i
ill
llio
ions
ns of 
dollars. !his was a failure of ethical leadership.

TRUE

1#. !he e"is

1#. iste
tenc
nce
e of law
aws
s and regegul
ulat
atio
ions
ns a+es
a+es it
necessary for copanies that strive to be responsible to
their

sta+eholde
sta derrs to conce
ncentr
ntrate %rst and foreost on
governent.

FALSE

1(. !he )arbanes78"ley Act re9uires C-8s to personally

vouch for the truthfulness and fairness of their %rs&
 

%nancial disclosures.

FALSE

1*. -nforation technology and privacy continues to be an

ethical issue.

TRUE
1. 8rganizations theselves do not have ethics.

TRUE

10. !he -nternet is also seen as having the potential to

play an iportant role in natural resource conservation,

as any
any e7co
e7coe
errce bu
busi
sines
nesse
ses
s an
andd tr
trans
ansact
actio
ions
ns ar
are
e
reducing both energy costs and pollution.

TRUE
1.. !he high
1 highest
est deg
degrree of soci
social
al resp
espon
onsi
sibi
bili
lity
ty that
that an
organization can e"hibit is referred to as the proactive

stance.

TRUE

1. 8rganizations that ta+e an obstructionist approach to

social responsibility eet their basic legal obligations

but nothing ore.

FALSE

23. 8ur
23. 8ur gove
goverrnen
nentt us
uses
es th
the
e ta
ta"
" co
code
des
s to indi
indirrectl
ectly
y
in:uence our behavior.

TRUE

21. !he ;ood and <rug Adinistration&s focus on

consuer7related
consuer7related concerns are a for of direct regulation.

TRUE
 

22. 8ne way the governe

nent regu
gullates or tries to
in:uence businesses is by using political action
coittees.

FALSE

2#. Awarding funds or gifts to ind

ndiividu
dua
als is called
philanthropic giving.

FALSE

2(. !he e"tent to which an organization and its ebers

follow basic ethical standards of behavior
b ehavior is called

legal copliance.

FALSE

2*. 5lowing your own

own horn is the di
dis
scl
clo
osure by an
eployee of the illegal or unethical conduct on the part of 
others within the organization.

FALSE

2. A co
2. corp
rpor
orat
ate
e soci
social
al au
audi
ditt is a fo
forra
all an
and
d thor
thorou
ough
gh
analysis of the eectiveness of a %r&s social

perforance.

TRUE

20. )oeone&s ethical standards are developed as a child

in response to his or her

A. parents& and other adults& behavior.

behavior.

5. peers.

C. religious beliefs.

<. 5oth parents& and other adults& behavior and peers

E. All of these are correct

 

2. =we+u Adoboli was arrested after losing >2.# billion of 
/5) global e9uities. Adoboli&s actions were

A. legal and ethical.

5. oral.

C. legal but unethical.

. ille!al and "nethical.

E. illegal but ethical.

2. Woen in )audi Arabia have been arrested for driving.

 !heir actions are

A. legal and ethical.

5. oral.

C. legal but unethical.

<. illegal and unethical.

E. ille!al #"t ethical.

#3. Congressan Anthony Weiner resigned after sending

na+ed pictures of hiself to adult woen who were

not his wife. ?is actions were

A. legal and ethical.

5. 'usti%ed.

C. le!al #"t "nethical.

<. illegal and unethical.

E. illegal but ethical.

#1. /nder /.). law, it is illegal for a /.). %r operating in a

foreign country to pay bribes to get what it needs.

@ati
@ative
ves
s of soe
soe of thos
those
e sa
sae
e cou
count
ntri
ries
es co
cons
nsid
ider
er th
the
e
payent of bribes to be perfectly acceptable. Which of the
 

following in:uences ay account for this dierence

A. C"lt"ral di$erences

5. Econoic in:uences

C. Beligious in:uences

<. Educational systes

E. All of these choices

#2. !he
#2. !he @a@ati
tion
onal
al ;ootba
ootball
ll $eagu
$eaguee 4lay
4layer
ers
s As
Asso
soci
ciat
atio
ion
n
agreed to a salary cap. !his is an e"aple of how the

A. culture aects eployees.

5. e
epl
ploy
oyee
ees
s an
and
d orga
organi
niza
zati
tion
on tr
trea
eatt othe
otherr ec
econ
ono
oic
ic
agents.

C. organization treats the eployees.

. employees treat the or!ani%ation.

E. code of ethics aects eployees.

##. Which of the following is @8! an e"aple ple of a

situation in which a anager is li+ely to be called on to

a+e an ethical decision regarding the relationship of the

%r to the eployee

A. ?iring and %ring

&. C"stomer relations

C. Wor+ing conditions

<. arnishent of wages

E. <rin+ing or drug proble

#(. !h
#(. !he
e trea
treat
ten
entt of e
epl
ploy
oyee
ees
s by the
the orga
organi
niza
zati
tion
on
includes which area of ethical concern

A. Con:icts of interest
 

&. 'a!es

C. ;inancial disclosure

<. Advertising

E. E"pense accounts

#*. !h
#*. !hee @at
@ation ;ootb
ootbal
alll $ea
eagu
gue
e e"ec
ecut
utiv
ives
es sh
sho
orted
rted
unrestricted free agency re9uireents fro si" seasons to

four, which gave individual players greater obility and

negotiating power.
power. !his is an e"aple of how the

A. culture aects eployees.

5. e
epl
ploy
oyee
ees
s an
and
d orga
organi
niza
zati
tion
on tr
trea
eatt othe
otherr ec
econ
ono
oic
ic
agents.

C. or!ani%ation treats the employees.

<. eployees treat the organization.

E. code of ethics aects eployees.

#. !he
#. !he st
stat
ate
e of Wisco
iscons
nsin
in to
too+
o+ easu
easurres to li
lii
itt th
the
e
power of state eployee unions. !his is an e"aple of 

the

A. relationship of the eployee to the environent.

5. relationship of the eployee to the %r.

C. relationship of the %r to the eployee.

. rela
lattion
ionship of the (rm to other economic
a!ents.

E. relationship of the %r to its copetitors.

#0. All of the following issues ste fro how eployees

treat the organization EDCE4!

A. con:icts of interest.
 

&. )a!es and )or*in! conditions.

C. secrecy and con%dentiality.

<. eployee honesty.

E. isappropriation of organizational resour

resources.
ces.

#. Adver
#. dvertitisi
sing
ng for
for Aber
Abercr
cro
obibie
e an
andd ;it
itch
ch uses
uses ov
over
ertt
se"uality to sell clothes. Ads for Abercrobie, the

pre7te
pre7teen
en siz
sizes,
es, are
are onl
nly
y oder
oderat
atel
ely
y les
ess
s se
se"u
"ual
al an
and
d
products include swi wear with padding in the chest.
6any

people ob'ect to this advertising. !his is an e"aple of the

relationship of the

A. eployee to the %r.

5. %r to the eployee.

C. (rm to the environment.

<. %r to copetitors.

E. eployee to the environent.

#. Which of the following is an iportant factor in how

the organization treats econoic agents

A. Copetitors

5. /nions

C. Custoers

<. 8wnersstoc+holders

E. All of these choices

(3. !h
(3. !hee pr
pri
iar
ary
y econ
econo
oic
ic ag
agen
ents
ts of inter
nteres
estt for an
organization include

A. custoers.
 

5. copetitors.

C. supplies.

<. dealers.

E. All of these choices

(1. According to the concept of anagerial ethics, which

of the following is @8! considered
c onsidered an econoic

agent

A. Copetitors

5. )uppliers

C. /nions

. Re!"latory a!encies

E. 8wnersstoc+holders

(2. !he /niversity of 6ichigan rented the stadiu to a

couple, both graduates, for their wedding on the %fty

yard line. !he couple said it was a drea coe TRUE. !his
is an e"aple of 

A. the treatent of the organization by the individual

5. organization culture.

C. the treatment of other a!ents #y the

or!ani%ation.

<. the organizational environent.

E. the treatent of eployees by the organization.

(#. -agine that you are a anufacturer of athletic shoes.

Within the organizational conte"t, which of the

following ethical behaviors can occur

 

A. overnent oFcials insp

nspect ep
eployee wor+ing
conditions.

5. Begulatory agents onitor the copany&s adherence to

A<A regulations.

C. Co
Cop
pet
etit
itor
or pr
pro
oot
otes
es a low7c
low7cos
ost,
t, we
well
ll7
7ade
ade go
gol%
l%ng
ng
shoe.

<. Each eployee follows his or her own personal code of 
ethics.

E. All of these choices

((. Which of the following is @8! a way in which the

organizational conte"t contributes to the use of unethical

practices

A. A anager becoes aware of an unethical practice, but

allows it to continue.

5. /nethical activity is encouraged as long as it is in the

best interests of the %r.

C. Bewards are provided to those who succeed at the cost

of others.

<. An eployee is prooted for %nding a way around a

legal regulation designed to protect the environent.

E. A mana!er decides to hire a relative to a position

for )hich the relative is +"ali(ed.

(*. Which of the following is part of the organizational

conte"t in which ethicalunethical behaviors occur

A. 8rganizational practices

5. !he regulatory environent

C. !he copetitive environent

<. 4ersonal ethical standards

 

E. All of these choices

(. Which of the following is the 68)! coon approach

to the anageent of ethics

A. !op anageent support

5. A ult
ultipage boo+ of or
orga
gan
nizational
nal polici
cie
es and
procedures

C. An unwritten code of ethics

. A )ritten code of ethics and top mana!ement

s"pport

E. governent regulation

(0. Which of the following is the 68)! iportant action

that top anagers can ta+e to proote ethical

behavior

A. $obby for legislation dealing with ethics

&. Adhere to ethical standards themselves

C. 4unish those who are unethical

<. Establish organizational policies

E. Establish a fair perforance

pe rforance appraisal syste

(. !he success of any culture to proote ethical behavior

in a society depends on

A. a national culture that values ethical behavior.

behavior.

5. top oFcials fostering an appropriate culture.

C. a legal environent that prohibits unethical practices.

<. an econ cono

oiic env
environe
nent conduci
ucive to ethical
cal
practices.

E. all of these choices.

 

(. 5e
(. 5errnard
nard 6a
6ado
do defr
defraud
auded
ed cl
clie
ient
nts
s ou
outt of i
ill
llio
ions
ns of 
dollars. !he probability that the eployees of 6ado&s

have high ethical behavior is inial due to

A. a national culture that values ethical behavior.

behavior.

&. its top mana!ement fosterin! an inappropriate

c"lt"re.

C. a legal environent that prohibits unethical practices.

<. an econ cono

oiic env
environe
nent conduci
ucive to ethical
cal
practices.

E. its low7pressure
low7pressure copetitive environent.

*3. Which of the following represents a a'or shortcoing

associated with the ipleentation of codes of 

ethics and ethics training progras

A. The
They oft
ften
en fail
fail to helelp
p pe
peop
ople
le dea
deal )ith
)ith the
the
conse+"ences of their actions.

5. /sually, they are not very coprehensive in coverage.

C. /sually, they are too coplicated.

<. !hey often fail to give speci%c guidance about what is

ethical.

E. !hey are often giv

given onl
nly
y lip service by iddl
dle
e
anageent.

*1. An
*1. Anyy eor
eortt to en
enha
hanc
nce
e an or
orga
gani
niz
zati
ation&s
on&s et
ethi
hica
call
behavior ust begin with

A. the appointent of an obudsan.

5. a review of the internal environent.

C. the developent of a foralized code of ethics.

 

<. a odi%cation of the ethical codes of eployees who

interact with sta+eholder
s ta+eholders.
s.

E. the s"pport of top mana!ement.

*2. !raditio
raditional
nally,
ly, e"per
e"perts
ts hav
have
e sug
suggest
gested
ed a thr
three7s
ee7step
tep
odel for applying ethical 'udgents to situations that

ay arise during the course of business activities. !he %rst

step is to

A. !ather the relevant fact"al information.

5. appoint an obudsan.

C. locate a ediator.

<. deterine what is lac+ing in the organization culture.

E. deterine the ost appropriate oral values.

*#.. Joshu
*# Joshua
a is awar
aware
e th
that
at his
his peer
peers
s ta
ta+
+e oF
oFce
ce susuppl
pplie
iess
hoe for personal use. !o deterine if behavior is ethical

 Joshua should deterine

A. whether the act optiizes what is best for everyone.

5. whet
hether
her the beh
behavior respects
cts the rights of the
individuals involved.

C. whether the behavior is consistent with what he sees as

being fair.

<. wh
whet
ethe
herr the behabehavi
vior
or is co
cons
nsis
iste
tent
nt wit
ith
h peop
people
le&s
&s
responsibilities to each other.

E. All of these choices

*(. !he nor of GGGG eans deterining whether the act

is consistent with what ost people
p eople would see as fair
fair..

A. caring

&. ,"stice
 

C. rights

<. virtue

E. utility

**.. GGGG
** GGGG 'u
'ust
stic
ice
e ref
efer
ers
s to pe
peop
ople
le&s
&s pe
perrcept
ceptio
ions
ns of the
the
fairness with which rewards and other valued outcoes
are

distributed within the organization.

A. 8rganizational

&. istri#"tive

C. 4rocedural

<. -nterpersonal

E. -nforational
*. GGGG 'ustice relates to the degree
deg ree of fairness people see
in how they are treated by others in their

organization.

A. 8rganizational

5. <istributive

C. 4rocedural

. nterpersonal

E. -nforational

*0. !he )arbanes78"ley Act re9uires the GGGG to vouch for

the truthfulness and fairness of the %rs& %nancial

disclosures.

A. CE8

5. C;8

C. C88
 

<. CE8 and C;8

E. CE/ CF/ and C

*. !arget selected (2 schools to receive new libraries.

 !his is an e"aple of which area
area of social

responsibility
A. 0eneral social )elfare

5. !he natural environent

C. 8rganizational sta+eholders

<. !he e"ternal political7legal environent

E. !he e"ternal cultural environent

*. !he Coca7Cola ;oundation awarded grants to

co
coununit
itie
ies
s fo
forr wate
waterr co
cons
nser
erva
vati
tion
on an
and
d co
coun
unit
ity
y
recycling.

 !his is an e"aple of which area

area of social responsibility
responsibility

A. eneral social welfare

&. The nat"ral environment

C. 8rganizational sta+eholders

<. !he tas+ environent

E. !he internal cultural environent

3. 5oards of directors are responsible for which area of 

eerging ethical issues

A. Ethical leaders

5. Ethics issues in inforation technology

C. Ethics issues in privacy

. Corporate !overnance

E. @one of these choices

 

1. 6any builders are using %ber7ceent siding to build

houses. !his siding is best painted with a soy7based,

environentally friendly paint. 6ost paint is not

bio
biodeg
degrada
adablble
e bec
becaus
use
e it is ade with petroleu
solvents. A

builder who decided to build a subdivision with *33 hoes

and paint each with the soy7based paint would be an

e"aple of which general area of social

soc ial responsibility

A. eneral social welfare

&. The nat"ral environment

C. $egal copliance

<. !he tas+ environent

E. !he internal cultural environent

2. When -56 a+es large contributions to the perforing

arts, this is an e"aple of which general area of 

social responsibility

A. 0eneral social )elfare

5. !he natural environent

C. $egal copliance

<. !he tas+ environent

E. !he internal cultural environent

#. !he inclusion of a biologist in decisions that aect the

local counity is an e"aple of which area of 

social responsibility

A. eneral social welfare

&. The nat"ral environment

 

C. $egal copliance

<. !he tas+ environent

E. !he internal cultural environent

(.. Judi
( Judith
th Cruz
Cruz,, the
the e"
e"ec
ecut
utiv
ive
e dire
direct
ctor
or of the
the !reas
easur
ure
e
Coast ;ood 5an+, had a logistics proble. )he contacted
Wal76art to as+ for anageent advice. 6ebers fro
Wal76art&s distribution tea arrived at the food ban+,

helping it iprove its warehousing, sorting, and routing, to

allow ore food deliveries per wee+. !he food ban+

went fro serving (2,333 eals per wee+ to ore than

133,333 eals. !he partnership negates the arguent

against social responsibility that says

A. based on their legal status, organizations are

technically prohibited fro such activities.

5. such activity detracts fro the basic ission society

has given business.

C. soci
social
al respo
espons
nsib
ibil
ilit
ity
y prog
progra
ras
s have
have th
the
e po
pote
tent
ntia
iall to
create substantial con:icts of interest.

. #"siness e1ec"tives lac* the e1pertise to ma*e

decisions a#o"t social pro!rams.

E. there is too uch potential for the abuse of the power

that corporations have already without adding to it.

*. Which of the following stateents is @8! one of the

arguents oered in favor of social responsibility

A. 5usiness should %" the probles it creates.

5. 5usinesses have resources needed to solve soe social

probles.
 

C. &"
&"si
sine
ness
ss e1
e1ec
ec"t
"tiv
ives
es ar
are
e "n
"ni+
i+"e
"ely
ly +"
+"al
ali(
i(ed
ed to
ma*e decisions s"ch as these.

<. 5usiness is a partner in society with the governent

and the general population.

E. Corporations have any of the sae obligations and

privileges as private citizens.

. Which of the following stateents is @8! one of the

arguents oered in favor of social responsibility

A. Corporations are citizens.

5. Corporations have aple resources.

C. Corporations lac* e1pertise.

<. Corpor
Corporati
ations
ons creat
create
e pr
probl
obles
es and sho
should
uld help
help sol
solve
ve
the.
E. All of these choices

0. Which of the following is @8! one of the arguents

oered by those who oppose corporations habitually

engaging in social responsibility progras

A. &ase
&asedd on ththei
eir
r le
le!a
!all st
stat
at"s
"s// or
or!a
!ani
ni%a
%ati
tion
ons
s ar
are
e
technically prohi#ited fro such activities.

5. )uch activity detracts fro the basic ission society

has given business.

C. )o
)oci
cial
al respon
esponsi
sibi
bili
lity
ty pr
progr
ogra
ass ha
haveve th
the
e po
pote
tent
ntia
iall to
create substantial con:icts of interest.

<. 5usi
usiness e"ecututiives lac+ the e"pe
perrtise to a+e
decisions about social progras.

E. !here is too uch potential for the abuse of the power

that corporations have already without adding to it.
 

. !he
. !he -nte
-nterrnet
net an
and
d e7co
e7co
er
erce
ce aec
aects
ts th
the
e na
natu
tura
rall
environent by

A. red"cin! ener!y costs and poll"tion.

5. sending electronic pulses into the air.

air.

C. increasing pac+age delivery and increasing pollution.

<. depleting ozone.

E. decreasing charitable contributions.

. Copanie nies that ta+e aHnI GGGG stanc nce

e to social
responsibility cross the ethical or legal line that separates

acceptable fro unacceptable practices, and often deny or

cover up their actions.

A. accoodative
5. reactive

C. participative

<. defensive

E. o#str"ctionist

03. @ew or+ passed a law re9uiring no so+ing in bars

and restaurants. 8wners who pressure bartenders and

waiters to sell to people who are so+ing in order to +eep

pro%ts high are ta+ing aHnIGGGG stance toward social

responsibility.

A. reactive

&. o#str"ctionist

C. proactive

<. accoodative

E. participative
 

01. All
01. All of the
the fo
foll
llow
owin
ing
g are
are ba
basi
sic
c ap
appr
proac
oache
hes
s to so
soci
cial
al
responsibility EDCE4!

A. accoodative stance.

5. defensive stance.

C. reactive stance.
<. proactive stance.

E. obstructionist stance.

02. When irl )couts sell coo+ies at )hop Bite, they are
given a place to stand. When they sell at Wal
Wal76art
76art the

copany eventually donates to their troop. !arget does

not allow any irl )cout to sell coo+ies in front of stores.

 !arget is an e"aple of the GGGG stance.

 !arget
A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

0#. 6anagers who agree with 6ilton ;riedan&s econoic

arguents against social responsibility will ost
li+ely ta+e an approach to social responsibility +nown as
aHnI GGGG stance.

A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive
 

0(. enzye is a pharaceutical copany that

anufactures Cerdase, a drug that treats a genetic illness
called

aucher&s disease, which is a life7threatening illness that

aects 23,333 people worldwide. A year&s supply of 

the drug costs >233,333. iven what you +now about the
various approaches to social responsibility, you ight

assue that enzye ta+es aHnI GGGG stance.

A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

0*. Auto anufacturers are re9uired to attain a certain

average fuel7eFciency level for all the cars they sell.

 !hey try to attain the andated levels, but they also try to
get deadline e"tensions. !he auto a+ers& appr
approach
oach to

social responsibility is aHnI GGGG stance.

A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

0. When irl )couts sell coo+ies at )hop Bite, they are
given a place to stand. When they sell at Wal
Wal76art
76art the

copany eventually donates to their troop. !arget does

not allow any irl )cout to sell coo+ies in front of stores.
 

Wal76art is an e"aple of the GGGG stance.

A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

00. ;or %rs that do @8! want to ta+e a proactive stance

with respect to social responsibility, the ne"t ost

responsible position in the eyes of proponents of social

responsibility would be aHnI GGGG stance.

A. reactive

5. obstructionist

C. proactive

. accommodative

E. defensive

0. Co
0. Co
pani
panieses that
that eet
eet thei
heir ec
econ
ono
oic
ic and
and legal
egal
responsibilities but do not go beyond the are e"hibiting
aHnI

 GGGG approach to social responsibility

responsibility..
A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

0. When irl )couts sell coo+ies at )hop Bite, they are
given a place to stand. When they sell at Wal
Wal76art
76art the
 

copany eventually donates to their troop. !arget does

not allow any irl )cout to sell coo+ies in front of stores.

)hop Bite is an e"aple of the GGGG stance.

A. reactive

5. obstructionist
C. proactive

. accommodative

E. defensive

3. !he )ieens ;oundation uses oney to support and

proote the iportance of ath, science, and

technology education. -t is ta+ing aHnI GGGG approach to

social responsibility.
A. obstructionist

5. defensive

C. accoodative

. proactive

E. reactive

1. !he %r using aHnI GGGG approach to social

responsibility eets its obligations and is also willing to
respond to appropriate societal re9uests.

A. reactive

5. obstructionist

C. proactive

. accommodative

E. defensive
 

2. $&8r
2. $&8real
eal has a found
foundat
atio
ion
n respon
esponsi
sibl
ble
e for corp
corpor
orat
ate
e
philanthropy. !his is aHnI GGGG stance.

A. defensive

5. accoodative

C. proactive
<. reactive

E. participative

#. A %r is ta+ing aHnI GGGG stance when it actively loo+s

for ways to bene%t society as well as eeting its

obligations and responding to re9uests.

A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

(. 4oliticians caught in e"traarital aairs usually deny

wrong doing until there is physical evidence to

contradict the politician&s clais. !his is an e"aple of the

 GGGG approach to responsibility
responsibility..
A. defensive

5. accoodative

C. proactive

<. reactive

E. participative

*. @5<, a %nancial institution head9uartered in <etroit,

atches its eployees& contributions to universities
un iversities
 

and colleges. !his is an e"aple of the GGGG approach to

social responsibility.

A. reactive

5. obstructionist

C. proactive
<. accoodative

E. defensive

. Judi
. Judith
th Cruz
Cruz,, the
the e"
e"ec
ecut
utiv
ive
e dire
direct
ctor
or of the
the !reas
easur
ure
e
Coast ;ood 5an+, had a logistics proble. )he contacted

Wal76art to as+ for anageent advice. 6ebers fro

Wal76art&s distribution tea arrived at the food ban+,

helping it iprove its warehousing, sorting, and routing, to

allow ore food deliveries per wee+. !he food ban+

went fro serving (2,333 eals per wee+ to ore than

133,333 eals. !his is an e"aple of the GGGG approach

to social responsibility.

A. reactive

5. obstructionist

C. proactive

<. accoodative

E. defensive

0. !he
0. !he a+
a+er of Wri
rigl
gley
ey chew
chewin
ing
g gu
gu fund
funded
ed a >1
>13
3
illion ad capaign aied at getting African Aericans

to use doctors for regular healthcare aintenance instead

of only when they are sic+. W
Wrigley
rigley is ta+ing aHnI

 GGGG approach to social responsibility

responsibility..

A. proactive
 

5. oensive

C. defensive

<. participative

E. accoodative

. 5usiness in:uence on governent relies on all EDCE4!

which of the following

A. $obbying

5. )ocial pressure

C. Cultural in:uence

. Re!"lation

E. 4ersonal contacts

. Which of the following is a basic area of governent

regulation of business

A. Consuer protection

5. )afety and health of eployees

C. )afety and health of consuers

<. Environental protection

E. All of these choices

3. !he Environental 4rotection Agency is the agency

charged with enforceent of any of the

environ
environen
enta
tall la
laws
ws in th
the
e /n
/nit
ited
ed )t
)tat
ates
es.. !h
!his
is agen
agency
cy
represents a for of 

A. indirect regulation.

&. direct re!"lation.

C. legislative andate.

<. governent coercion.

 

E. legislative intervention.

1. !he ;ood and <rug Adinistration H;<AI is an e"aple

of which of the following areas of governent

regulation

A. Cons"mer protection
5. )afety and health of eployees

C. )afety and health of consuers

<. Environental protection

E. -nvestor related issues

2. When the )EC

) EC brought charges against 5ernard 6ado 
and his C;8, it was
w as e"ercising
e"ercising its power of 

A. political favors.

5. legislative intervention.

C. indirect regulation.

<. lobbying.

E. direct re!"lation.

#. $aws
#. $aws ththat
at de
deal
al wi
with
th ho
how
w agri
agrich
che
eic
ical
al co
cop
pan
anie
ies
s
dispose of hazardous wastes are e"aples of 

A. consuer protection regulation.

5. fair labor practice.

C. environmental protection re!"lation.

<. safety and health regulation.

E. legislative intervention.

(. !he GGGG is not a governent regulatory agency.

A. )ecurities and E"change Coission

 

5. ;ederal Aviation Adinistration

C. ;ederal Counications Coission

. American Civil Li#erties Union

E. Environental 4rotection Agency

*. All
*. All of the
the fo
foll
llow
owin
ing
g are
are co
co
on
on ap
appr
proa
oach
ches
es th
that
at
businesses use to in:uence governent EDCE4!
EDCE4!

A. personal contacts.

&. re#ates.

C. lobbyists.

<. donations to 4ACs.

E. favors.

. !he @ationa nall 8rganization of Woen wor+s to

in:uence legislators to support @8W&s positions. @8W is a

A. political action coittee.

5. governent sta+eholder.

C. public regulator.

. lo##yist.

E. ultinational corporation.
0. Which of the following is @8! one of the eans by
which businesses typically attept to in:uence

governent

A. ;avors

5. $obbying

C. irect contri#"tions to election campai!ns

<. 4olitical action coittees

 

E. 4ersonal contacts

. !he purpose of a p

political
olitical action coittee H4
H4ACI
ACI is to

A. lobby on behalf of trade associations.

&. circ"mvent la)s re!ardin! donations #y

#"sinesses to election capaigns.
C. prov
provid
ide
e opp
oppor
ortu
tuni
nitties
ies fo
forr pe
pers
rson
onal
al cont
ontacts
acts wit
with
legislators.

<. ensure that businesses do not attept to bribe oFcials.

E. prevent businesses fro getting e"cessive ta" brea+s.

. Which of the following sta

stateents about legal
copliance is TRUE

A. $egal copliance also guarantees ethical copliance.

5. <espite the nae, legal departents are not usually
involved with legal copliance issues.

C. !op anageent usually retains anageent of legal

copliance issues.

<. $egal copliance is usually handled by a coittee of 

anagers fro various functional areas.

E. 2ana!in! le!al compliance is "s"ally dele!ated

to the appropriate mana!ers.
133. Which of the following is @8! an e"aple of a foral
approach to social responsibility

A. $egal copliance

5. Ethical copliance

C. Eval"ative compliance

<. 4hilanthropic giving

E. Ethics coittee
 

131. @ews Corporation is alleged to have tapped phones

and bribed police in the /= to get leads on stories. -t

failed GGGG.

A. le!al compliance.

5. ethical copliance.
C. evaluative copliance.

<. philanthropic giving.

E. rational copliance.

132. GGGG is the e"tent to which an organization and its

ebers follow basic ethical and legal standards of 

behavior.

A. $egal copliance

&. Ethical compliance

C. Evaluative copliance

<. 4hilanthropic giving

E. Bational copliance

13#. Wh
13#. Whic
ich
h of ththe
e foll
follow
owin
ing
g repr
epres
esen
ents
ts an atte
attep
ptt to
anage social responsibility by eans of what the te"t

calls ethical copliance

A. Be9uiring top %nancial anagers to ensure copliance

with securities and ban+ing regulations

&. Creatin! a committee to )rite a code of ethics or

revi
revie)
e) prop
propos
osa
als  concernin! selection and
promotion

C. <o
<ona
nati
ting
ng oney
oney to fu
fund
nd publ
public
ic br
broa
oadc
dcast
astin
ing
g or th
the
e
perforing arts
 

<. Consul
nsultting the legal depdepartent regarding the
re9uireents of a particular statute

E. 6a+i
6a+ing
ng hua
huan n res
esou
ourrce ana
anage
gers
rs res
espo
pons
nsib
ible
le for
for
coplying with EE8C standards

13(.
13 (. Whic
Whapproach
inforal ich
h of the
theto fo
foll
llow
owin
socialing
g is @8
@8!! an e"ap
responsibility "aple
le of an

A. Whistle7blowing procedures
p rocedures

&. Ethical compliance

C. $eadership practices

<. !he organization culture

E. !reatent of whistleblowers

13*. John =opchins+i, a forer 4%zer sales representative,

earned ore than >*1.* illion as a result of his

lawsuit against the world&s biggest drug a+er and the

record penalty the copany ust pay the /.).

governent for its assive ar+eting transgressions. ?e

engaged in

A. )histle-#lo)in!.

5. ethical copliance.

C. leadership practices.

<. corporate culture odi%cation.

E. ethical copliance.

13. John =opchins+i, a forer 4%zer sales representative,

earned ore than >*1.* illion as a result of his

lawsuit against the world&s biggest drug a+er and the

record penalty the copany ust pay the /.).
 

govern
governent
ent for
for its
its a
assssiv
ive
e a
ar+r+et
etin
ing
g trans
transgr
gress
essio
ions
ns..
=opchins+i used whistle7blowing, aHnI GGGG, to bring

attention to the proble.

A. foral organizational diension

5. defensive stance toward social responsibility

C. protective stance toward social responsibility

<. reactive approach to social responsibility

E. informal or!ani%ational dimension

130. Judi
130. Judith
th Cruz,
Cruz, the e"ecut
e"ecutive
ive dir
direct
ector
or of the !reasu
reasure
re
Coast ;ood 5an+, had a logistics proble. )he

cont
contac
acte
ted
d Wal
al76
76ar
artt to as
as+
+ fo
forr anag
anage
een
entt ad
advi
vice
ce..
6ebers fro Wal76art&s
Wal76art&s distribution tea arrived at the
food ban+, helping it iprove its warehousing, sorting, and
routing, to allow ore food deliveries per wee+.

 !he food ban+ went fro serving (2,333 eals per wee+
to ore than 133,333 eals. Cruz says the advice

provided by Wal76art would have cost 133s of thousands

of dollars if contracted with a anageent

consulting %r. !his is an e"aple of 

A. philanthropic !ivin!.

5. legal copliance.

C. organization culture.

<. ethical copliance.

E. social copliance.

13. )ie
13. )ieen
enss is pr
pri
iar
aril
ily
y an enengi
gine
neer
eriing cop
copan
any
y.
Eployees in the /.). volunteer to run )ieens )cience
 

<ay in schools and hospitals to get children e"cited about

science. !he passion for science is part of the

inforal organization diension

A. leadership.

&. c"lt"re.
C. ethical copliance.

<. whistle7blowing.

E. social copliance.

13. Whic
13. Which h of the
the fo
foll
llow
owin
ing
g acti
action
ons
s is @8
@8!! pa
part
rt of an
organization&s attepts to evaluate social perforance

A. Corporate social audits

&. 'histle-#lo)in! #y employees

C. Be9uiring eployees to sign agreeents to abide by its

code of ethics

<. Beviewing its responses to 9uestionable conduct

E. E"aining the ipact that the corporate culture has on

the %r&s social perforance

113. As applied to social responsibility, what function of 

anageent do things such as social audits

represent

A. Controllin!

5. 8rganizing

C. $eading

<. <irecting

E. 4lanning
 

111. GGGG is a thorough, foral analysis of the

eectiveness of a %r&s response to social responsibility.

A. An ethics review

5. A legal copliance assessent

C. A corporate conduct review

. A corporate social a"dit

E. Whistle7blowing

112. !he real story of )a Childers depicted in the ovie

6achi
6a chine
ne un
un 4reac
4reacheherr sh
show
owss a i
iss
ssio
iona
nary
ry an
and
d sold
soldie
ierr
willing to use violence to protect )udanese orphans. ?is
use of violence is aHnI GGGGGGGGGGGGGGGGGGGG dilea.

ethics

11#. GGGGGGGGGGGGGGGGGGGG is an individual&s personal beliefs

about whether a behavior, action, or decision is

right or wrong.

Ethics

11(. AHnI
11(. AHnI GGGG
GGGGGG
GGGGG
GGGGG
GGGG
GGGG
GGGG
GGGG
GGG
G occur
occurs s wh
when
en a de
deci
cisi
sion
on
potentially bene%ts the individual to the possible

detrient of the organization.

con3ict of interest

11*. Actions of peer anagers and top anagers, as well

as the organization&s GGGGGGGGGGGGGGGGGGGG, all

contribute to the ethical conte"t of the organization.

c"lt"re

11. GGGGGG
11. GGGGGGGGG
GGGGGGG
GGGGGGG
GGGGGG
GGGG
G 'us
'ustic
tice
e re
refer
fers
s to the percei
perceived
ved
fairness of inforation used to arrive at decisions.

nformational
 

110. GGGGGGGGGGGGGGGGGGGG have becoe alost

coonplace in today&s world. Banging fro business to

sports to politics to the entertainent industry, they have

roc+ed
roc+ed sta+eholder con%dence and called into 9uestion

the oral integrity of our society.

Ethical scandals

11. !he GGGGGGGGGGGGGGGGGGGG Act re9uires CE8s and C;8s

to personally vouch for the truthfulness and

fairness of their %rs& %nancial disclosures.

Sar#anes-1ley

11. When 5ernard 6ado was on house arrest he started

ailing his assets to other people. ?e deonstrated

aHnI GGGGGGGGGGGGGGGGGGGG stance.

o#str"ctive

123. Colleges, courts, and creditors are all

 GGGGGGGGGGGGGGGGGGGG to organizations.

sta*eholders

121. !he !iny $ittle !7)hirt Copany printed *33 shirts at

cost for the ?elene Cody *= run. !he shirt copany

used aHnI GGGGGGGGGGGGGGGGGGGG stance.

accommodative

122. ;irs that adopt aHnI GGGGGGGGGGGGGGGGGGGG approach

ta+e to heart the arguents in favor of social

respo
espons
nsib
ibil
iliity.
ty. !h
!hey
ey vi
view
ew the
these
selv
lves
es as citi
citize
zens
ns in a
society and see+ opportunities to contribute.

proactive
 

12#. !he E9ual Eployee 8pportunity Coission is one

agency involved in oversight of public copanies.

 !his is a for of GGGGGGGGGGGGGGGGGGGG regulation.

regulation.

direct

12(. !a"es on corporations are a for of  

 GGGGGGGGGGGGGGGGGGGG regulation.

indirect

12*. GGGGGGGGGGGGGGGGGGGG, or the use of persons or groups

to forally represent an organization or group of 

organizations before political bodies, is an eective way to

in:uence the governent.

Lo##yin!

12. 4olitical leaders and corporate e"ecutives who eet

socially and in:uence each other are networ+ing

through GGGGGGGGGGGGGGGGGGGG.

personal contacts

120. 8Fcial
120. 8Fcial approach
approaches
es to soc
social
ial respon
responsib
sibili
ility
ty inc
includ
lude
e
legal copliance, ethical copliance, and

 GGGGGGGGGGGGGGGGGGGG.

philanthropic !ivin!

12. GG
12. GGGG
GGGG
GGGG
GGGG
GGGG
GGGG
GGGGG
GGGGG
GGG
G copl
coplia
iance
nce is th
the
e e"
e"te
tent
nt to
which a %r lives up to the basic statutory

re9uireents governing its operations.

Le!al

12. GGGGGGGGGGGGG
GGGGGGGGGGGGGGGGGGG
GGGGGGG
G copliance
copliance is the establishe
establishent
nt
of foral coittees to evaluate alleged ethical

isconduct by an eployee.
 

Ethical

1#3. Abbo
1#3. Abbott
tt $a
$abo
bora
rato
tori
ries
es co
co
it itte
ted
d or
ore ththan
an >
>.*
.*
illion to partner with 4artners -n ?ealth to address

alnutrition in ?aiti. !his is an e"aple of  

 GGGGGGGGGGGGGGGGGGGG.
philanthropic !ivin!

1#1. AHnI
1#1. AHnI GGGGGG
GGGGGGGGGG
GGGGGGG
GGGGGG
GGGGGG
GGGG
G is a foral
foral and thoro
thorough
ugh
analysis of the eectiveness of a %r&s social

perforance

corporate social a"dit

1#2. )herron Wat+ins ade repeated attepts to bring

9uestionable accounting practices to the attention of 

Enron&s top anageent. )he was aHnI

 GGGGGGGGGGGGGGGGGGGG.

)histle#lo)er

1##. GGGGGG
1##. GGGGGGGGG
GGGGGG
GGGGGG
GGGGGGG
GGGGG,
G, or
organi
ganizat
zatio
ion
n cult
cultur
ure,
e, and how
the organization responds to whistleblowers all

help shape and de%ne

hel e%ne people&s pe perrcepti
ptions of the
organization&s stance on social responsibility.

Leadership
1#(. 6atch the following. ou ay use a response once,
ore than once, or not at all.

1. overnent establishes laws and rules that

<irect regulation 

dictate what businesses can and cannot do.

2. -n:uence tactics to gain support that are legal.

4ersonal contacts 5

#. ;oral representation
representation of a copany or group of 
 

copanies before political bodies.

$obbying 6

(. !a" incentives to spend oney a 4olitical action

coittee 7

certain way.
*. 4oliticians and e"ecutives in the sae social circles

in:uence each other.

;avors 8

. An organization created to solicit and distribute oney

to political candidates. -ndirect

regulation 4

1#*. 6atch the following. ou ay use a response once,

ore than once, or not at all.

1. 6oral standards about what is right 8rganization

constituent 8

and wrong.

2. Creditors.
Ethics 

#. 8Fcial approach to social responsibility.

Whistle7blowing 4

(. <isclosure of illegal conduct.

Ethical copliance 6

1#. 6atch the following. ou ay use a response once,

ore than once, or not at all.

1. ;ir does as little as possible in the area of 

8bstructionist stance 
 

social responsibility.

2. ;ir
;ir eets statutory re9uireents placed on it

but does no ore.

Accoodative stance 6

#. ;ir goes beyond legal re9uireents if doing so is seen

to be in the interests of the organization.
<efensive stance 8

(. ?ighest degree of social responsiveness.

4roactive stance 4