Management 12th Edition Daft Test Bank 1

MANAGEMENT 12TH EDITION DAFT TEST
BANK
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12th-edition-daft-1285861981-9781285861982/
1. Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or
groups.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 140
LEARNING OBJECTIVES: MGMT.DAFT.12.05-01 - 05-01
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - LA - DISC: Ethical Responsibilities
KEYWORDS: Bloom's: Knowledge
OTHER: F
2. Free choice lies between the domains of codified law and ethics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 141
OTHER: F
3. If something is ethical, it must not be illegal.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 141
OTHER: F
4. Although public confidence in business managers is at an all-time low, politics, sports, and non-profit organizations
have not been affected.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 142
OTHER: F
5. Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models
for others.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 142
OTHER: F
6. An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially
harmful ethical consequences.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 143
OTHER: F
7. The moral agent is an individual who must make an ethical choice in an organization.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 144
OTHER: F
8. 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.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 3
REFERENCES: 144
OTHER: F
9. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 144
OTHER: F
10. The virtue ethics approach to ethical decision making says that moral behavior stems from personal virtues.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 3
REFERENCES: 144
OTHER: F
11. Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-
making.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
12. 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.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
13. Monitoring the Internet to maintain the company's ethical climate and workplace productivity could be considered part
of an individualistic approach.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
14. 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.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 145
OTHER: F
15. The ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people is
objective dualism.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
16. Individualism is popular in the highly organized society of today because it supports immediate self-gain.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 3
REFERENCES: 145
OTHER: F
17. 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.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
18. Compensatory justice argues that an employees compensation should be based on individual performance.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 146
OTHER: F
19. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
20. Level 3 of the Personal Moral Development model is Conventional.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 148
OTHER: F
21. The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and
fulfills duties and obligations of the social system.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
22. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to
avoid detrimental personal consequences.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
23. Individuals are concerned with external rewards and punishments at the principled level.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 148
OTHER: F
24. An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social
systems, and upholds law.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
25.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
26. Principled level of moral development is also referred to as the postconventional level.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 148
OTHER: F
27. The majority of managers operate at the preconventional level of personal moral development.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 149
OTHER: F
28. Approximately 20% of American adults, according to your text, never reach the postconventional level of moral
development.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 3
REFERENCES: 149
OTHER: F
29. 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.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 150
OTHER: F
30. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 150
OTHER: F
31. Important stakeholders in corporations include the government and the community.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 150
OTHER: F
32. A stakeholder is any group within or outside the organization that has a stake in the organization's performance.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 150
OTHER: F
33. All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 3
REFERENCES: 150
OTHER: F
34. Special interest groups include trade associations, political action committees and consumerists.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 152
OTHER: F
35. 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.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 153
OTHER: F
36. Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be used
to evaluate corporate social performance.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 154
OTHER: F
37.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 154
OTHER: F
38. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 154
OTHER: F
39. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation's
direct economic interests.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 154
OTHER: F
40. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 1
REFERENCES: 156
OTHER: F
41. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 156
OTHER: F
42. A formal statement of the organization's values regarding moral principles and governing its response to social values
is called a code of ethics.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 158
OTHER: F
43. Principle-based statements define fundamental values and contain general language about company responsibilities,
quality of products, and treatment of employees.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 158
OTHER: F
44. Policy-based statements generally outline the procedure to be used in specific ethical situations.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 158
OTHER: F
45. One of the newest positions in organizations is the chief operating officer, a response to widespread financial
wrongdoing in recent years.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 160
OTHER: F
46. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 2
REFERENCES: 160
OTHER: F
47. Ethics training programs are not an important supplement as long as a well-written code of ethics exists.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: 2
REFERENCES: 160
OTHER: F
48. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle-
blowing.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 160
OTHER: F
49. Managers are often concerned good citizenship will hurt performance.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 160
OTHER: F
50. Managers who are essentially ethical individuals make up the first pillar of an ethical organization.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: 1
REFERENCES: 163
OTHER: F
51. 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 responsibility
b. Free domain
c. Ethics
d. Codified law
e. Discretionary responsibility
ANSWER: c
POINTS: 1
DIFFICULTY: 1
REFERENCES: 140
OTHER: F
52. Individualism is most closely related to:

social responsibility.
free choice.
economic responsibility.
codified law.
togetherness.
a.
b.
c.
d.
e.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 141
OTHER: F
53. 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.
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 141
OTHER: A
54. 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 domain
b. The domain of free choice
c. The legal domain
d. The obstructive category
e. The protective domain
ANSWER: a
POINTS: 1
DIFFICULTY: 3
REFERENCES: 141
OTHER: A
55. The assumption that "If it's not illegal, it must be ethical," ignores which of the following?
a. Domain of codified law
b. Domain of ethics
c. Domain of free choice
d. Discretionary responsibility
e. Domain of symbolism
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 141
OTHER: F
56. 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.
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 141
OTHER: A
57. A recent poll found that _____ percent of people surveyed say corporate America’s moral compass is pointing in the
wrong direction.
a. 10 b. 29
c. 52 d. 76
e. 98
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 142
OTHER: F
58. 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.
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 143
OTHER: F
59. Which of the following is a(n) is the individual who must make an ethical choice in an organization?
a. The symbolic leader
b. An obstructive manager
c. The defensive individual
d. The moral agent
e. An authoritarian manager
ANSWER: d
POINTS: 1
DIFFICULTY: 1
REFERENCES: 144
OTHER: F
60. 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. Chinoda’s 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.
ANSWER: c
POINTS: 1
DIFFICULTY: 3
REFERENCES: 144
OTHER: A
61. 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.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 144
OTHER: A
62.
a.
b.
c.
d.
e.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
63.
a.
b.
c.
d.
e.
ANSWER: a
POINTS: 1
DIFFICULTY: 1
REFERENCES: 145
OTHER: F
64. 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.
ANSWER: a
POINTS: 1
DIFFICULTY: 3
REFERENCES: 145
OTHER: A
65. 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:
c. moral-justice approach.
e. soft-line managerial approach.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: A
66. 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 approach
b. Utilitarian approach
c. Individualism approach
d. Moral-justice approach
e. Discretionary responsibility
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
67. The decision by Paula Reid, the manager who statted the U.S. Secret Service prostitution scandal in Catagena, was
based largely on the _____ approach
a. justice
b. moral-rights
c. obstructive
d. individualism
e. practical
ANSWER: e
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: A
68. 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 approach
b. individualism approach
c. moral-justice approach
d. justice approach
e. social responsibility
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: A
69. Which of the following is NOT a normative ethics approach?

a. Utilitarian approach
b. Individualism approach
c. Social responsibility approach
d. Moral-rights approach
e. All of these are normative approaches as described in the text.
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
70. 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.
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: A
71. 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:
c. moral-rights approach.
d. dualism approach.
e. none of these.
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
72. The _____ refers to the ethical concept that moral decisions are those that best maintain the rights of those people
affected by them.
a. individualism approach
b. justice approach
c. utilitarian approach
d. moral-rights approach
e. discretionary responsibility approach
ANSWER: d
POINTS: 1
DIFFICULTY: 1
REFERENCES: 145
OTHER: F
73. 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.
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
74. _____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free
speech.
a. Moral-rights approach
b. Individualism approach
c. Utilitarian approach
d. Justice approach
e. Dual-economic approach
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
75. Sexual harassment is unethical because it violates an important part of which approach to ethical behavior?
a. The utilitarian approach
b. The individualism approach
c. The justice approach
d. The moral-rights approach
e. The defensive approach
ANSWER: d
POINTS: 1
DIFFICULTY: 3
REFERENCES: 145
OTHER: F
76. The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is
the:
a. moral-rights approach.
c. utilitarian approach.
e. discretionary responsibility.
ANSWER: d
POINTS: 1
DIFFICULTY: 1
REFERENCES: 145
OTHER: F
77. 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.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
78. Which of the following is not a concern to managers under the justice approach?
a. Compensatory justice
b. Distributive justice
c. Procedural justice
d. Obstructive justice
e. All of these
ANSWER: d
POINTS: 1
DIFFICULTY: 1
REFERENCES: 147
OTHER: F
79. _____ refers to the concept that different treatment of people should not be based on arbitrary characteristics.
a. Procedural justice
b. Compensatory justice
c. Distributive justice
d. Organizational justice
e. Moral-justice
ANSWER: c
POINTS: 1
DIFFICULTY: 1
REFERENCES: 147
OTHER: F
80. 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.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 147
OTHER: A
81.
a.
b.
c.
d.
e.
ANSWER: b
POINTS: 1
DIFFICULTY: 1
REFERENCES: 147
OTHER: F
82. 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.
ANSWER: e
POINTS: 1
DIFFICULTY: 1
REFERENCES: 147
OTHER: F
83. The thinking underlying the domain of ____ is the closest to the justice approach.
a. social responsibility
b. free choice
c. law
d. discretionary responsibility
e. ethics
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 147
OTHER: F
84. Most of the laws guiding human resource management are based on the:
b. moral-rights approach.
c. individualism approach.
e. collectivism approach.
ANSWER: d
POINTS: 1
DIFFICULTY: 3
REFERENCES: 147
OTHER: F
85. ____ is NOT included in the model of personal moral development described in your text.
a. Preconventional level
b. Conventional level
c. Principled level
d. Postconventional level
e. All of these are included in the model
ANSWER: e
POINTS: 1
DIFFICULTY: 2
REFERENCES: 147
OTHER: F
86. In what stage of personal moral development is a person mostly concerned with external rewards and personal
consequences of an action?
a. Preconventional
b. Conventional
c. Principled
d. Discretionary
e. None of these
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
87. The _____ leadership style matches with the preconventional level of personal moral development.
a. autocratic
b. team oriented
c. servant leadership
d. guiding/encouraging
e. transforming
ANSWER: a
POINTS: 1
DIFFICULTY: 3
REFERENCES: 148
OTHER: F
88. _____ matches with the preconventional level of personal moral development.
a. Work group collaboration
b. Task accomplishment
c. Empowered employees
d. Full participation
e. Transforming
ANSWER: b
POINTS: 1
DIFFICULTY: 3
REFERENCES: 148
OTHER: F
89. Which of these employee behaviors matches with the conventional level of personal moral development?
a. Task accomplishment
b. Empowered employees
c. Work group collaboration
d. Full participation
e. Act in own interest
ANSWER: c
POINTS: 1
DIFFICULTY: 3
REFERENCES: 148
OTHER: F
90. 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. Preconventional
b. Conventional
c. Principled
d. Discretionary
e. Social
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
91. 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.
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
92. Which of these employee behaviors matches with the postconventional level of personal moral development?
a. Empowered employees, full participation
b. Task accomplishment
c. Act in own interest
d. Work group collaboration
e. Autocratic
ANSWER: a
POINTS: 1
DIFFICULTY: 3
REFERENCES: 148
OTHER: F
93. Regarding the levels of personal moral development, the majority of managers operate at the _____ level.
a. preconventional
b. autocratic
c. postconventional
d. conventional
e. transformative
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
94. The great majority of managers operate at the:

a. preconventional level.
b. principled level.
c. conventional level.
d. postconventional level.
e. autocratic level.
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
95. 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. preconventional b. conventional
c. postconventional d. lowest
e. conservative
ANSWER: c
POINTS: 1
DIFFICULTY: 3
REFERENCES: 148
OTHER: A
96. _____ matches with the postconventional level of personal moral development.
a. Team oriented
b. Autocratic
c. Guiding/encouraging
d. Coercive
e. Servant leadership
ANSWER: e
POINTS: 1
DIFFICULTY: 3
REFERENCES: 148-149
OTHER: F
97. Only about _____ percent of American adults reach the level-three stage of moral development.
a. two
b. four
c. eleven
d. fifteen
e. twenty
ANSWER: e
POINTS: 1
DIFFICULTY: 3
REFERENCES: 149
OTHER: F
98. 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.
ANSWER: d
POINTS: 1
DIFFICULTY: 3
REFERENCES: 149
OTHER: F
99. 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.
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 149
OTHER: A
100. 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. Preconventional
b. Conventional
c. Discretionary
d. Principled
e. Traditional
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 149
OTHER: F
101. 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.
ANSWER: c
POINTS: 1
DIFFICULTY: 1
REFERENCES: 150
OTHER: F
102. Primary stakeholders of an organization include:

a. employees.
b. customers.
c. investors and shareholders.
d. suppliers.
e. all of these.
ANSWER: e
POINTS: 1
DIFFICULTY: 1
REFERENCES: 150
OTHER: F
103. 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.
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 152
OTHER: F
104. What type of a stakeholder would a nature conservation group be for a paper manufacturing company?
a. Supplier
b. Competitor
c. Employee
d. Special interest group
e. None of these
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 152
OTHER: F
105. 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. sustainability
b. conservation
c. ethics
d. preservation
e. human concerns
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 153
OTHER: F
106. _____ is economic development that generates wealth and meets the needs of their current generation while focusing
on future generations.
a. Ethical management
b. Activist strategy
c. Sustainability
d. Market strategy
e. Future management
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 153
OTHER: F
107. 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. Preservation
b. Conservation
c. Environmentalism
d. Protectionism
e. Sustainability
ANSWER: e
POINTS: 1
DIFFICULTY: 2
REFERENCES: 153
OTHER: F
108.
a. b.
c. d.
e.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 154
OTHER: F
109. 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 rational
b. Mandatory, technical, discretionary, and economic
c. Legal, mandatory, economic, and ethical
d. Discretionary, legal, economic, and ethical
e. None of these
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 155
OTHER: F
110. With respect to appropriate corporate behavior, what society deems _____ as important.
a. ethical responsibility
b. discretionary responsibility
c. economic responsibility
d. legal responsibility
e. moral responsibility
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 155
OTHER: F
111. _____ is considered a decision that enables an individual or company to benefit at society's expense.
a. A legal behavior
b. An unethical behavior
c. An economic responsibility
d. A discretionary responsibility
e. A responsible behavior
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 156
OTHER: F
112. 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. Ethical
b. Economic
c. Legal
d. Discretionary
e. Stakeholder
ANSWER: d
POINTS: 1
DIFFICULTY: 1
REFERENCES: 156
OTHER: F
113. _____ is the responsibility that goes beyond societal expectations to contribute to the community welfare.
a. Ethical responsibility
b. Discretionary responsibility
c. Economic responsibility
d. Legal responsibility
e. Technical responsibility
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 156
OTHER: F
114.
a.
b.
c.
d.
e.
ANSWER: a
POINTS: 1
DIFFICULTY: 1
REFERENCES: 156
OTHER: F
115. A code of _____ is a formal statement of the company's values concerning ethics and social issues.
a. integrity
b. trust
c. citizenship
d. ethics
e. honesty
ANSWER: d
POINTS: 1
DIFFICULTY: 1
REFERENCES: 156
OTHER: F
116. Statements that define fundamental values and reference organizational responsibilities, products and employees are
often called _____.
a. principle-based
b. policy-based
c. ethically-based
d. codified
e. codes of organizational integrity
ANSWER: a
POINTS: 1
DIFFICULTY: 1
REFERENCES: 156
OTHER: F
117. _____ includes behavior that is not always written down and may actually not serve an organization's bottom-line.
a. Legal responsibility
b. Economic responsibility
c. Ethical responsibility
d. Discretionary responsibility
e. None of these
ANSWER: c
POINTS: 1
DIFFICULTY: 2
REFERENCES: 156-157
OTHER: F
118. Of the following, which may whistle-blowers suffer?

a. Job loss b. Ostracism by coworkers
c. Transfer to lower-level position d. Hostile work environment
e. All of the above
ANSWER: e
POINTS: 1
DIFFICULTY: 2
REFERENCES: 157
OTHER: F
119.
a.
b.
c.
d.
e.
ANSWER: a
POINTS: 1
DIFFICULTY: 1
REFERENCES: 158
OTHER: F
120. 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.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 159-160
OTHER: F
121. 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.
ANSWER: b
POINTS: 1
DIFFICULTY: 1
REFERENCES: 160
OTHER: F
122. Which of these is the disclosure by an employee of an illegal activity?

a. Tattling
b. Whistle-blowing
c. Organizational communication
d. The filing of a disclosure statement
e. Snooping
ANSWER: b
POINTS: 1
DIFFICULTY: 1
REFERENCES: 160
OTHER: F
123. _____ is not part of the structures and systems pillar of an ethical organization.
a. Corporate culture
b. Code of ethics
c. Ethics committee
d. Whistle-blowing mechanisms
e. Rewarding ethical behavior
ANSWER: e
POINTS: 1
DIFFICULTY: 2
REFERENCES: 160
OTHER: F
124. Examples of unethical behavior toward _____ include a hostile work environment and violations of health and safety
rules.
a. customers b. financiers
c. society d. suppliers
e. employees
ANSWER: e
POINTS: 1
DIFFICULTY: 1
REFERENCES: 160
OTHER: F
125. The relationship between social responsibility and financial performance has been shown to be _____.
a. non-existent
b. positive
c. negative
d. not important
e. a reflection of top leadership
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 161
OTHER: F
126. 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.
ANSWER: a
POINTS: 1
DIFFICULTY: 2
REFERENCES: 161
OTHER: A
127.
a.
b.
c.
d.
e.
ANSWER: b
POINTS: 1
DIFFICULTY: 1
REFERENCES: 161
OTHER: F
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.
128. The decision to recruit, hire, train and promote both men and women equally is based on the ethical approach of
_____.
c. moral rights approach.
d. all of these provide the basis.
e. none of these.
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145-146
OTHER: A
129. 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.
ANSWER: b
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: A
130. A(n) _______ would outline the procedures Larry should use in this and other ethical situations.
a. principle-based statement
b. code of ethics
c. corporate credo
d. policy-based statement
e. ethics committee
ANSWER: d
POINTS: 1
DIFFICULTY: 2
REFERENCES: 158
OTHER: A
131. _____ 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.
ANSWER: Ethics
POINTS: 1
DIFFICULTY: 1
REFERENCES: 140
OTHER: F
132. When values and standards are written into the legal system, it is referred to as _____.
ANSWER: codified law
POINTS: 1
DIFFICULTY: 2
REFERENCES: 140
OTHER: F
133. A(n) _____ arises in a situation when each alternative choice or behavior is undesirable because of potentially
harmful ethical consequences.
ANSWER: ethical dilemma
POINTS: 1
DIFFICULTY: 2
REFERENCES: 143
OTHER: F
134. The _____ is an individual responsible for making an ethical choice.

ANSWER: moral agent
POINTS: 1
DIFFICULTY: 2
REFERENCES: 144
OTHER: F
135. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as _____
approach.
ANSWER: utilitarian
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
136. The _____ approach contends that acts are moral when they promote the individual's best long-term interests.
ANSWER: individualism
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
137. The _____ approach assets that human beings have fundamental rights and liberties that cannot be taken away by an
individual's decision.
ANSWER: moral-rights
moral rights
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145
OTHER: F
138. The _____ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.
ANSWER: justice
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
139. _____ justice requires that different treatment of people not be based on arbitrary characteristics.
ANSWER: Distributive
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
140. _____ justice requires that rules should be clearly stated and consistently and impartially enforced.
ANSWER: Procedural
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
141. _____ justice argues that individuals should be compensated for the cost of their injuries by the party responsible.
ANSWER: Compensatory
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
142. The _____ approach to ethical decision making says that moral behavior stems from personal virtues.
ANSWER: virtue ethics
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
143. 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.
ANSWER: practical
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
144. A decision to monitor employees’ nonwork activities violates the right to _____.
ANSWER: privacy
POINTS: 1
DIFFICULTY: 1
REFERENCES: 146
OTHER: F
145. At the _____ level of personal moral development, individuals are most concerned with external rewards and
punishments.
ANSWER: preconventional
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
146. People learn to conform to the expectations of good behavior that are set by peers and society at the _____ level.
ANSWER: conventional
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
147. 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.
ANSWER: postconventional principled
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
148. Most managers operate at the _____ level.

ANSWER: conventional
second
POINTS: 1
DIFFICULTY: 2
REFERENCES: 150
OTHER: F
149. Management's obligation to make choices that will contribute to the well being of both the organization and society
is known as _____.
ANSWER: social responsibility
POINTS: 1
DIFFICULTY: 2
REFERENCES: 150
OTHER: F
150. A(n) _____ is any group within or outside the organization that has a stake in the organization's performance.
ANSWER: stakeholder
POINTS: 1
DIFFICULTY: 2
REFERENCES: 150
OTHER: F
151. 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.
ANSWER: socially
POINTS: 1
DIFFICULTY: 2
REFERENCES: 150
OTHER: F
152. _____ 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.
ANSWER: social sustainability
POINTS: 1
DIFFICULTY: 2
REFERENCES: 153
OTHER: F
153. The _____ approach to economic responsibility means that economic gain is the only social responsibility and can
lead companies into trouble.
ANSWER: profit-maximizing
POINTS: 1
DIFFICULTY: 2
REFERENCES: 154
OTHER: F
154. When a company does just what is necessary to satisfy legal requirements, it falls under the _____ approach in
shades of green.
ANSWER: legal
POINTS: 1
DIFFICULTY: 2
REFERENCES: 155
OTHER: F
155. _____ responsibility is purely voluntary and guided by a company's desire to make social contributions not mandated
by economics, law, or ethics.
ANSWER: Discretionary
POINTS: 1
DIFFICULTY: 2
REFERENCES: 156
OTHER: F
156. 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.
ANSWER: code of ethics
POINTS: 1
DIFFICULTY: 2
REFERENCES: 158
OTHER: F
157. _____ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts
of interest, and observance of laws.
ANSWER: Policy-based statements
POINTS: 1
DIFFICULTY: 2
REFERENCES: 158
OTHER: F
158. 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) _____.
ANSWER: ethics committee
POINTS: 1
DIFFICULTY: 2
REFERENCES: 159
OTHER: F
159. _____ programs help employees deal with ethical questions and translate the values stated in a code of ethics into
everyday behavior.
ANSWER: Ethics training
POINTS: 1
DIFFICULTY: 2
REFERENCES: 160
OTHER: F
160. Employee disclosure of illegal organization activities is known as _____..

ANSWER: whistle-blowing
POINTS: 1
DIFFICULTY: 2
REFERENCES: 160
OTHER: F
161. The relationship between social responsibility and financial performance has been shown to be _____.
ANSWER: positive
POINTS: 1
DIFFICULTY: 2
REFERENCES: 161
OTHER: F
162. List three of the six moral rights that should be considered during decision making.
ANSWER: Students 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.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145-146
OTHER: F
163. List the four criteria for ethical decision-making described in the book.
ANSWER: Utilitarianism, individualism, moral-rights, and justice.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146-147
OTHER: F
164. List three examples of primary stakeholders.

ANSWER: Investors, shareholders, employees, customers, and suppliers are all examples of primary
stakeholders.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 154
OTHER: F
165. List the four responsibilities of corporate social performance.

ANSWER: economic responsibility, legal responsibility, ethical responsibility, and discretionary
responsibility
POINTS: 1
DIFFICULTY: 2
REFERENCES: 155
OTHER: F
166. Define ethics and explain how the domain of ethics relates to law and free choice.
ANSWER: Ethics 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.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 141-142
OTHER: F
167. List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.
ANSWER: 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.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 145-146
OTHER: F
168. Briefly explain the justice approach to ethics and then explain the three types of justice.
ANSWER: 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.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 146
OTHER: F
169. List and define the stages of moral development.

ANSWER: 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.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 148
OTHER: F
170. What is social responsibility? Why is it considered a difficult concept to grasp?

ANSWER: 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.
POINTS: 1
DIFFICULTY: 2
REFERENCES: 150
OTHER: F
171. Explain the concept of a stakeholder and list five common stakeholders.
ANSWER: 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.
POINTS: 1
DIFFICULTY: 1
REFERENCES: 152
OTHER: F
172. List and define the criteria of corporate social responsibility.

ANSWER: 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.
POINTS: 1
DIFFICULTY: 3
REFERENCES: 155
OTHER: F
173. Explain the differences between principle-based statements and policy-based statement in an organization's code of
ethics.
ANSWER: 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.
POINTS: 1
DIFFICULTY: 3
REFERENCES: 158-159
OTHER: F
174.
The manager of a new research and development firm wants to ensure that all business performed follows ethical
practices. Compose a brief company policy statement that explains the concept of "ethical behavior" in a way that all
employees understand expectations. Be sure to make clear the relationship between ethics, law, and free choice.
ANSWER:
Student-generated policy statement. Ethics is a code of moral principles and values that
governs behaviors and decision-making, determining good and bad, right and wrong; it
includes characteristics like honesty, integrity, kindness, and equity. Questionable accounting
practices and greed (evidenced, for example, by disproportionate executive compensation)
are not ethical behaviors. Ethical issues are not governed by law; the fact that some behavior
is not against the law (illegal) does not make it ethical (right). But one also does not have
complete freedom of choice when deciding ethical issues, because the behavior or decision
made by an individual or organization will impact others. Companies that seek to be ethical
and socially responsible usually require their employees to do the same, which results in a
good reputation and a good financial performance.
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MGMT_DAFT_05_01 - 05_01
STATE STANDARDS: United States - OH - DISC: Ethical Responsibilities
KEYWORDS: BLOOM’S: Synthesis, Evaluation
175.
Many companies routinely use Facebook and other social media outlets as part of their management practice. In
a climate where so much information is so readily available to him, why is it important for a manager to be
ethical when using social media for business purposes? Write a short essay that answers the above question and
argues whether or not social media can be used ethically to monitor employee behavior and to gather
competitive intelligence.
ANSWER: A manager is often called upon to be a moral agent. That is, he is the one who must make the
decision when an ethical dilemma arises in his company, so he must be of good, moral
character himself. Most managers will encounter a dilemma where there is no clearly right or
wrong solution, or all choices have potentially negative consequences. The manager’s choice
must engender trust and confidence from employees, customers, and the business
environment. Students will include an argument on whether or not it is ethical to use social
media to monitor employee behavior and gather competitive intelligence (a relatively recent
managerial practice).
POINTS: 1
KEYWORDS: BLOOM’S: Evaluation
176. An increasing number of corporations are implementing "green" or environmentally friendly practices, such as
sustainable development. Choose some type of business, then write a short essay in which you explain how the concept of
sustainability could be used in that business, how success is measured in the organization, and what you perceive to be the
value of sustainable development.
ANSWER:
Sustainability is economic development that generates wealth and meets present needs while
preserving society and the environment for the future. Environmental and social concerns
drive decision-making. Success is measured in terms of a triple bottom line: social
performance, environmental performance, and financial performance. This is sometimes
called the three Ps: People, Planet, and Profit. Student will include a valuation of the
philosophy of sustainability.
POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - OH - DISC: Strategy
KEYWORDS: BLOOM’S: Evaluation
177.
The Supreme Court has granted corporations some of the same rights as people, so it is only fair that corporations have
some of the same responsibilities as people. In a short essay, explain corporate social responsibility and the four criteria
used to evaluate it. Arrange the four criteria in order from the one you deem to be most important to the one you deem to
be least important in assessing corporate social responsibility, and explain your rationale for ranking them in that order.
ANSWER: Obligation of organizational managers to make choices and take actions that contribute to the
welfare of society, not just the organization. Moral (must be ethical, that is, fair, impartial,
honest, etc.), legal (must not knowingly break the law, such as when committing fraud,
deliberately misleading consumers, or selling defective goods), economic (must produce
goods and services and maximize profits), and discretionary (voluntary social contributions
not required or expected, which may be highest criterion of social responsibility) criteria are
used to evaluate an organization's social responsibility. Student will arrange criteria in order
from what he deems to be most important to what he deems to be least important.
POINTS: 1
178.
Managers and first-line supervisors are important role models for ethical behavior. Write a short essay that describes how
the manager helps to create ethical organizations. Additionally, put yourself in the manager's shoes and compose a
company credo that reflects your values.
ANSWER:
Managers help create ethical and socially responsible organizations by being ethical
leaders—honest, trustworthy, fair, and moral in personal and professional lives. They can
implement or support code of ethics (formal statement of organization values, expectations,
and behaviors that will not be tolerated), ethical structures (such as ethics office, ethics
committee, ethics hotline), and whistle-blower protection. Top management must support and
enforce codes, rewards for compliance, and discipline for violation; many organizations are
using global service programs to train managers to be ethical leaders and have a service
mindset.
POINTS: 1

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MANAGEMENT 12TH EDITION DAFT TEST

Test Bank: https://testbankpack.com/p/test-bank-for-management-12th-edition-

Solution Manual: https://testbankpack.com/p/solution-manual-for-management-

3. If something is ethical, it must not be illegal.

20. Level 3 of the Personal Moral Development model is Conventional.

52. Individualism is most closely related to:

53. An organization's decision to produce a new product is in the:

69. Which of the following is NOT a normative ethics approach?

94. The great majority of managers operate at the:

102. Primary stakeholders of an organization include:

118. Of the following, which may whistle-blowers suffer?

120. An example of an ethical structure is:

122. Which of these is the disclosure by an employee of an illegal activity?

Scenario - Larry Campbell

134. The _____ is an individual responsible for making an ethical choice.

148. Most managers operate at the _____ level.

160. Employee disclosure of illegal organization activities is known as _____..

164. List three examples of primary stakeholders.

165. List the four responsibilities of corporate social performance.

169. List and define the stages of moral development.

170. What is social responsibility? Why is it considered a difficult concept to grasp?

172. List and define the criteria of corporate social responsibility.

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