Management Leading and Collaborating in A Competitive World 10th Edition Bateman Test Bank 1

Management Leading and Collaborating in
a Competitive World 10th Edition Bateman

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Chapter05
Ethics and Corporate Responsibility
True / False Questions
1. Ethics is the system of rules that governs the ordering of values.
True False
2. According to public opinion polls, only about a third of employees trust their
own CEO.
True False
3. Most people have unconscious biases that give others the benefit of the doubt
while simultaneously giving themselves little credit.
True False
4. Astroturfing is considered a difficult but ethical practice.
True False
5. An ethical issue is a situation, problem, or opportunity in which an individual is

obligated to choose among several actions that must be evaluated as legal or
illegal on the basis of law.
True False
6. Business ethics comprises the moral principles and standards that guide
behavior in the world of business.
True False
7. Moral philosophy refers to the principles, rules, and values people use in
deciding what is right or wrong.
True False
8. The principles underlying utilitarianism prohibit murder and oppression in all

societies.
True False
9. Two basic ethical ideals underpin the Caux Principles: fairness and equality.
True False
10. The ethical system known as egoism is similar to Adam Smith's concept of the
invisible hand in business.
True False
11. Utilitarianism defines acceptable behaviors as those that maximize benefits

for the individual.
True False
12. Utilitarianism is an ethical system stating that the greatest good for the
greatest number should be the overriding concern of decision makers.
True False
13. The ethical system known as relativism may be responsible for higher rates of
bribery and keeping double books in other countries than in the United
States.
True False
14. According to virtue ethics, moral individuals can transcend society's rules by
applying personal virtues.
True False
15. People in the preconventional stage of Kohlberg's model of cognitive moral

development conform to the expectations of ethical behavior held by groups or
institutions such as society, family, or peers.
True False
16. Concerns about urban sprawl, CEO pay, and artistic control make it clear that
many issues in business ethics remain unsolved.
True False
17. The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior
managers to personally sign off on financial results.
True False
18. The ethical climate of an organization refers to the processes by which
decisions are evaluated and made on the basis of right and wrong.
True False
19. Excessive emphasis on long-term revenues over shorter-term considerations

is one of the factors that is conducive to unethical behavior.
True False
20. You can be an ethical leader if you have a strong moral character, regardless
of what issues actually get most of your attention.
True False
21. A compliance-based ethics program often fails to create a moral commitment

to ethical conduct.
True False
22. With an integrity-based ethics program, people govern themselves through a

set of guiding principles that they embrace.
True False
23. Moral awareness means knowing what actions are morally defensible.
True False
24. A good process for ethical decision making begins with considering the legal
requirements.
True False
25. Being a whistleblower is typically a painless process.
True False
26. Economic responsibility forms the base of the pyramid of global corporate
social responsibility and performance.
True False
27. Charitable contributions are considered part of a firm's ethical responsibilities

in the pyramid of global corporate social responsibility and performance.
True False
28. A transcendent education involves balancing self-interest with responsibility

to others.
True False
29. "The social responsibility of business is to increase profits," is a well known

quote from Milton Friedman, a Nobel Prize-winning economist.
True False
30. Profit maximization and corporate social responsibility necessarily lead to
opposing corporate policies.
True False
31. In general, the accumulated evidence indicates that social responsibility is

associated with better financial performance.
True False
32. GE management sees environmental rules strictly as a burden and a cost to

the company.
True False
33. The goal of ecocentric management is the creation of sustainable economic

development and improvement of quality of life worldwide for all
organizational stakeholders.
True False
34. Sustainable growth refers to growth in profitability that sustains the wealth of
shareholders.
True False
35. Sustainability in business is considered compatible with the natural
ecosystems that generate and preserve life.
True False
36. Life cycle analysis (LCA) quantifies the total use of resources and the releases
into the air, water, and land.
True False
37. Greenwashing refers to misleading marketing claims about the

environmentally friendly nature of a product.
True False
Multiple Choice Questions
38. A system of rules that governs the ordering of values is referred to as
A. Life cycle analysis.
B. Ethics.
C. Corporate legitimacy.
D. Justice.
E. The legal system.

39. Which of the following statements about unethical corporate behavior is most
true?
A. When corporations behave unethically, only the top executives suffer.
B. When corporations behave unethically, only the shareholders suffer.
C. When corporations behave unethically, rank-and-file employees and

investors often suffer more than top executives.
D. When corporations behave badly, top executive or rank-and-file employees

are shielded from the fallout.
E. There is no evidence that corporations today ever behave unethically.
40. Honesty, caring, loyalty, fairness, and integrity are all examples of
A. Ethics.
B. Citizenship.
C. Values.
D. Emotions.
E. Excellence.
41. A situation, problem, or opportunity in which an individual must choose among
several actions that must be evaluated as morally right or wrong is called a(n)
A. Responsibility issue.
B. Ethical issue.
C. Moral business issue.
D. Legal issue.
E. Moral rights issue.
42. Beth faces a decision to either do as her coworkers do by filling out inaccurate
time records or tell her manager what has been happening. This is an example
of
A. A moral rights debate.
B. An ethical issue.
C. The Caux Principles.
D. An avoidance situation.
E. Greenwashing.
43. The moral principles and standards that guide behavior in the world of
business are called
A. Corporate principles.
B. Business philosophy.
C. Organizational development.
D. Business ethics.
E. Organizational politics.
44. Principles, rules, and values that people use in deciding what is right and
wrong are called
A. Business ethics.
B. Corporate social responsibility.
C. Moral philosophy.
D. Business philosophy.
E. Caux Principles.
45. Tyler believes in justice and opportunity for all, and he uses these principles to
make decisions about right and wrong in his daily life. These principles are
part of his
A. Moral philosophy.
B. Business ethics
C. Ying.
D. Ecocentric philosophy.
E. Personality.
46. __________ is the ethical system stating that all people should uphold certain
values that society needs in order to function.
A. Moral philosophy
B. Egoism
C. Universalism
D. The Caux Principle
E. Utilitarianism
47. Which ethical system would most support the premise that people should hold
some values as always appropriate?
A. Egoism.
B. Deontology.
C. Relativism.
D. Universalism.
E. Utilitarianism.
48. Ashleigh works as a receptionist for a law firm. Some of the lawyers have
asked her to tell callers that they are in court when in fact they are playing
golf. She wanted to quit the job because she hated to lie to people. Ashleigh is
following the ethical system referred to as
A. Egoism.
B. Deontology.
C. Relativism.
D. Universalism.
E. Utilitarianism.
49. The Caux Principles are based on two ethical ideals:
A. Fairness and equality.
B. Self-fulfillment and sharing.
C. Kyosei and respect.
D. Kyosei and human dignity.
E. Self fulfillment and happiness.
50. ___________ considers acceptable behavior to be that which maximizes

benefits for the individual.
A. Egoism
B. Deontology
C. Relativism
D. Universalism
E. Utilitarianism
51. The ethical system known as utilitarianism is centered around the idea that
A. Some values must always be upheld, regardless of the consequences.
B. Societal rules or customs should be used to order values.
C. Society will be enhanced if we all take care of ourselves and don't harm
others.
D. Individuals might choose between conflicting values by tallying the final

results of the various acts.
E. The greatest good for the greatest number should be the overriding concern
of decision makers.
52. ________ is a philosophy that bases ethical behavior on the opinions and
behaviors of relevant other people.
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism
53. __________ acknowledges the existence of different ethical viewpoints and
uses norms as guidelines.
A. Virtue ethics
B. Relativism
C. Universalism
D. Utilitarianism
E. Egoism
54. Bina thought it was OK to download music for free from the Internet since all
of her friends did it. Bina is using which ethical system for her decisions?
A. Egoism.
B. Virtue ethics.
C. Relativism.
D. Universalism.
E. Utilitarianism.
55. __________ is a perspective that goes beyond the conventional rules of society
by suggesting that what is moral must also come from what a mature person
with good "moral character" would deem right.
A. Business ethics
B. Virtue ethics
C. Relativism
D. Utilitarianism
E. Egoism
56. The work of __________ classifies people into categories based on their level
of moral judgment.
A. Kravitz
B. Frederick
C. Immelman
D. Kohlberg
E. Taylor
57. Which of the following is one of Kohlberg's stages of cognitive moral
development?
A. Unconventional.
B. Emotional.
C. Relative.
D. Principled.
E. Developed.
58. The first stage of Kohlberg's model of cognitive moral development is known
as
A. Emotional.
B. Conventional.
C. Primary.
D. Preconventional.
E. Normative.
59. At what level of moral development would Kohlberg describe Shannon, if he
determines his work behaviors solely on whether he thinks he can do them
without receiving punishment from his boss?
A. Emotional.
B. Conventional.
C. Principled.
D. Preconventional.
E. Normative.
60. Cassandra's behavior is typically guided by what she thinks would be

acceptable to her parents. She appears to be at which stage of cognitive moral
development according to Kohlberg?
A. Emotional.
B. Conventional.
C. Principled.
D. Preconventional.
E. Utilitarian.
61. People in the _________ stage of Kohlberg's model of cognitive moral
development see beyond authority, laws, and norms and follow their self-
chosen ethical principles.
A. emotional
B. conventional
C. principled
D. preconventional
E. advanced
62. Despite many high-profile scandals, most business leaders believe
A. They don't understand business ethics.
B. They uphold ethical standards in business practices.
C. They don't have to worry about ethics if they hire employees with strong
moral backgrounds.
D. Ethical standards in business practices are strictly voluntary.
E. They need to worry about the firm's stock price, not ethics.
63. Which of the following statements about the Sarbanes-Oxley Act is true?
A. It was passed in 1992.
B. It requires strict adherence to accounting rules.
C. It was written in response to a series of public protests.
D. It is intended to maintain truth in advertising.
E. It requires whistleblowers to be fired.
64. Which of the following is described as a current ethical issue in the text?
A. CEO pay.
B. Sweatshops.
C. Urban sprawl.
D. Commercialism in schools.
E. All of these are described as current ethical issues.
65. The __________ of an organization refers to the processes by which decisions

are evaluated and made on the basis of right and wrong.
A. corporate culture
B. ethical climate
C. ethics code
D. legal responsibility
E. moral obligation
66. Which of the following is a danger sign that organizations may be allowing or
even encouraging unethical behavior?
A. Thinking only about shareholder demands.
B. Failure to establish a written code of ethics.
C. A desire for "quick fix" solutions.
D. Lack of clear procedures for handling ethical problems.
E. All of these are danger signs for an organization's ethical climate.
67. One who is both a moral person and a moral manager influencing others'
ethical behavior is referred to as a(n)
A. Ethical leader.
B. Ethics chairperson.
C. VP of ethics.
D. Transitional leader.
E. Transformational leader.
68. The ________ ethical framework encourages employees to consider whether
they would like to see their decisions displayed on the front page of the
newspaper. If they would not mind, then it is likely an appropriate course of
action.
A. Kohlberg
B. sunshine
C. newspaper
D. journalist
E. publicity
69. Johnson & Johnson's ethics code has been widely recognized because
A. The code focuses only on employee behavior.
B. It does not mention stockholders.
C. It is effective; J&J consistently receives high rankings for community and

social responsibility.
D. Employees see little relation between it and the realities at the firm.
E. The statement uses humor to make light of the potential issues.

70. Which of the following is advised by the text for constructing an ethics code?
A. Cover as many potential issues as possible to provide maximum clarity.
B. Make it "catchy"; better something "clever" than something "important."
C. Involve only the legal department and top executives in writing the
statement.
D. Explain away potential conflicts between reality and the language used in
the code with humor.
E. Focus on relatable, real-life situations.
71. An ethics program that is designed by lawyers to detect, prevent, and punish
legal violations is called a(n) _________ ethics program.
A. integrity-based
B. compliance-based
C. competency-based
D. legally-based
E. responsibility-based
72. Corporate ethics programs commonly include which of the following?
A. Formal ethics code.
B. Ethics committees.
C. Ethics communication systems.
D. Ethics ombudspersons.
E. All of these are generally included in corporate ethics programs.
73. Compliance-based ethics programs are typically designed by
A. Lawyers.
B. Employees.
C. Top executives.
D. Stockholders/owners.
E. Focus groups of customers.
74. Compliance-based ethics programs are most effective at ensuring
A. Resistance to social responsibility.
B. Moral mediocrity.
C. Discretionary social responsibility.
D. Proactive social responsibility.
E. A moral commitment to ethical conduct.

75. Integrity-based ethics programs use
A. Stated ethicsl rules and policies.
B. Corporate social responsiveness.
C. A set of guiding principles.
D. Monitoring and punishment.
E. Discretionary social responsibility.
76. Going beyond legal compliance with ADA standards and training people to
understand that individuals with disabilities also have valued abilities is an
example of
A. Compliance-based programs.
B. Integrity-based programs.
C. Minimum requirements programs.
D. A strong code of ethics.
E. An ethical dilemma.
77. Ethical programs tend to be better integrated into operations, thinking, and
behavior when
A. Every employee has signed the code of ethics.
B. Top management has a personal commitment to responsible ethical

behavior.
C. Employees have seen top managers punished for their wrongdoings.
D. Managers use punishment to motivate employees to "be good."
E. Compliance-based programs are used.
78. Jamila is considering a layoff of several of employees in her division. She has
realized that there are ramifications for her employees as well as the
shareholders. This is known as
A. Moral certainty.
B. Moral actionability.
C. Moral awareness.
D. Moral judgment.
E. Moral character.
79. Having the strength and persistence to act in accordance with your ethics
despite the challenges is referred to as
A. Moral awareness.
B. Moral judgment.
C. Moral certainty.
D. Moral action.
E. Moral character.
80. John Rawls maintained that only a person ignorant of his own identity can
make a truly ethical decision. This thought process is based on
A. Ethical shielding.
B. The veil of understanding.
C. The veil of ignorance.
D. Ethical certainty.
E. Ethical ignorance.
81. The process for ethical decision making begins with
A. Defining the complete moral problem.
B. Developing an ethical framework.
C. Determining the legal requirements.
D. Understanding all moral standards and recognizing all moral impacts.
E. Proposing a moral solution.

82. Recognizing the moral impacts of the decision alternatives includes
considering which of the following?
A. Which parties will benefit.
B. Which rights people can exercise.
C. Who will suffer harms.
D. If a solution will deny the exercise of some rights.
E. All of these are included as moral impacts of decision alternatives.
83. Behaving ethically requires not just moral awareness and moral judgment, but
also the _________ to take actions consistent with your ethical decisions.
A. ability
B. enthusiasm
C. desire
D. courage
E. instruction
84. Which of the following business costs of ethical failures are considered Level
1 costs that, while less damaging, are likely to get the most attention from
executives?
A. Government fines and penalties.
B. Cost of remedial education.
C. Cost of corrective action.
D. Loss of reputation.
E. Employee turnover.
85. Which of the following is a Level 2 cost of ethical failure?
B. Legal and investigative costs.
C. Customer defections.
E. Employee cynicism.
86. Telling others, inside or outside the organization, about wrongdoing is called
A. Ethical shadowing.
B. Whistleblowing.
C. Egoism.
D. Ethical interference.
E. Moral consequences.
87. Corporate social responsibility is the
A. Taking of an active role in training employees to be ethical.
B. Obligation toward society assumed by business.
C. Following of laws that govern the industry in which a company operates.
D. Encouragement of recycling efforts within the organization.
E. Maximization of shareholder wealth.
88. McDonald's changed the packaging of its sandwiches to minimize waste.

Additionally, it uses recycled paper to bag its products. McDonald's states that
these actions make the earth a "nicer place to eat." Here McDonald's is
participating in
A. Deregulation.
C. Maximizing customer actualization.
D. Corporate social responsibility.
E. Corporate wealth enhancement.

89. The _________ responsibilities of business are to produce goods and services
that society wants at prices that perpetuate the business and satisfy its
obligations to investors.
A. economic
B. legal
C. financial
D. philanthropic
E. ethical
90. Within the pyramid of global corporate social responsibility and performance,
obeying local, state, federal, and relevant international laws is known as
________ responsibility.
A. economic
B. legal
C. professional
D. philanthropic
E. ethical
91. Which of the following levels of corporate social responsibility of business
includes meeting societal expectations that are not written as law?
A. Economic.
B. Legal.
C. Social.
D. Philanthropic.
E. Ethical.
92. Pork producer Smithfield Foods took on which of the following responsibilities
of business by discontinuing the practice of confining sows in gestation crates
during pregnancy, conforming to external expectations though it was not
legally required to do so?
A. Preconventional.
B. Economic.
C. Ethical.
D. Legal.
E. Philanthropic.
93. Which level of the pyramid of global corporate social responsibility and
performance represents a company's efforts to be a good global corporate
citizen, such as supporting community programs?
A. Economic responsibility.
B. Legal responsibility.
C. Ethical responsibility.
D. Philanthropic responsibility.
E. Charitable responsibility.
94. Which of the following levels of the pyramid of global corporate social
responsibility and performance represents a company's requirement to be
profitable?
B. None; this is not part of the pyramid.
E. Financial responsibility.
95. The order of the levels in the pyramid of global corporate social responsibility
and performance is (from bottom to top)
A. Economic, legal, philanthropic, and ethical.
B. Ethical, economic, legal, and philanthropic.
C. Economic, legal, ethical, and philanthropic.
D. Legal, economic, ethical, and philanthropic.
E. Philanthropic, economic, legal, and ethical.
96. Home Depot supports Habitat for Humanity, a nonprofit that builds affordable
housing for those struggling with poverty, housing, or homelessness.
Donations to such an organization are an example of
C. Conventional responsibility.
D. Ethical responsibility.
E. Philanthropic responsibility.
97. The attempt to provide an education that teaches students to leave a legacy
that extends beyond the bottom line is called a(n) _________ education.
A. ethical
B. socially responsible
C. transcendent
D. committed
E. management
98. Which of the following is a goal of a transcendent education?
A. Persuasion.
B. Independence.
C. Empathy.
D. Candidness.
E. All of these are goals of a transcendent education.
99. Which of the five goals of a transcendent education involves viewing success
not merely as personal gain, but as a common victory?
A. Empathy.
B. Generativity.
C. Mutuality.
D. Civil aspiration.
E. Intolerance of ineffective humanity.

100.As one of the goals of a transcendent education, speaking out against
unethical actions is called
A. Empathy.
B. Generativity.
C. Mutuality.
101.Opponents of corporate social responsibility would suggest that
A. Organizations ought to be profit-seeking and that when they concentrate

on this motive, they will benefit society.
B. Organizations' only responsibilities are clearly defined by the laws and

regulations imposed upon them.
C. Organizations' responsibilities are to attempt to satisfy all relevant

stakeholders' interests.
D. An organization's responsibility is to satisfy select stakeholders that

express their specific needs.
E. An organization's only goal should be to provide employment with safe

working conditions.
102.Who wrote that "the social responsibility of business is to increase profits?"
A. Adam Smith.
B. Milton Friedman.
C. Robert Giacalone.
D. Thomas Jefferson.
E. Frederick Taylor.
103.Who argued that sympathy, defined as a proper regard for others, is the basis
of a civilized society?
A. Adam Smith.
B. Milton Friedman.
C. Benjamin Franklin.
104.Under a business initiative called Ecomagination, GE is looking for business

opportunities through
A. Lean manufacturing.
B. Environmental scanning.
C. Macroeconomic theory.
D. Integrity-based programs.
E. Solving environmental problems.

105.Some of the world's worst environmental problems are in
A. Japan.
B. The United States.
C. Latin America.
D. Europe.
E. China.
106.__________ has as its goal the creation of sustainable economic development

and improvement of quality of life worldwide for all organizational
stakeholders.
A. Corporate social responsibility
B. Life cycle analysis
C. Ecocentric management
D. Take-make-waste
E. Ecomagination
107.Economic growth and development that meets present needs without
harming the needs of future generations is known as
A. Ecocentric management.
B. Risk management.
C. Sustainable growth.
D. Sustainable management.
E. Ecocentric growth.
108.__________ is a process of analyzing all inputs and outputs, through the entire
"cradle-to-grave" life of a product, to determine the total environmental
impact of the production and use of a product.
A. Ecocentric management
C. Sustainable growth
D. Sustainable management
E. The green movement

Scenario A
Your organization faces an ethical dilemma. A problem with your accounting

process has resulted in higher profits being reported than were actually
earned. You are attending a meeting where senior management is deciding
how to handle the situation. The people at the table have varying views of
what action to take and why.
Ethan wants to report the error immediately because he believes he could
possibly go to jail if it isn't reported right away.
Tripp wants to report the error because it is the honest thing to do, and
therefore necessary. After hearing his colleagues' opinions, Carlos says he
wants to report the error as well because he wants to go along with the more
experienced managers in the group.
109.Tripp is using which ethical system for his decision making?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
110.Ethan is using which ethical system for his decision making?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
111.Carlos is using which ethical system for his decision making?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
Scenario B
Suppose you face a question regarding how to handle a defective piece of

equipment that your company sold. Telling the customer would cost you a
substantial amount of money; but if the equipment fails, it could lead to
serious injury of the customer. You are going to choose between three options
presented by colleagues:
Option 1: Keep quiet about the defect.

Option 2: Review company policy, industry practices, and advice from
colleagues.
Option 3: Disclose the defect and suggest alternatives to eliminate the risk of
injury.
112.Option 1 employs which ethical approach?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
Scenario C
Two managers from different departments at Clarion Bank are discussing the
troubling behavior of a bank employee. Adrian's reaction is simply to say, "As
far as I'm concerned, if he doesn't get busted for it, it didn't happen. If he does
get caught, I'll wash my hands of him." Her associate, Clarke, has a very
different idea: "I believe that every individual should take personal
responsibility for his behavior. I want everyone that works here to understand
how to do the right thing."
115.Each of these managers may be responsible for creating a different ________
in their own departments.
A. organizational atmosphere
B. ethical climate
C. moral perspective
D. organizational dynamic
E. corporate culture
116.Adrian would most likely prefer which type of ethics program for the
company?
A. Associate-based.
B. Compliance-based.
C. Integrity-based.
D. Systems-based.
E. Consensus-based.
117.Clarke seems to prefer which type of program for the company?
A. Associate-based.
C. Integrity-based.
D. Systems-based.
E. Consensus-based.
Scenario D
Senior management at Valley Development are attending a corporate retreat,

and the first item for discussion is corporate social responsibility (CSR). The
group has discussed this before and then shot it down because it generally
costs Valley's shareholders in the form of reduced distributions. But the new
VP, Gita Halle, is about to explain why she believes CSR will actually benefit
the shareholders and Valley management alike. Her team begins the
presentation with a discussion of CSR, both its current definition and
reconciliation of past views. Jeremiah then discusses the importance of being
a good global corporate citizen by supporting the local school system. Ellen
takes the floor to make the case for doing what is expected by global
stakeholders even though there are no laws requiring those actions. Finally
Gita wraps the discussion up with why Valley should take legal and economic
responsibility for the firm's performance.
118.Jeremiah's presentation most likely focused on the __________ responsibility

of the firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
119.Ellen's presentation most likely focused on the __________ responsibility of
the firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
120.Gita's presentation centered on taking which of the following actions?
A. Production of goods and services that society wants at prices that

perpetuate the business and satisfy its obligations to investors.
B. Obeying all laws that affect Valley's operations.
C. Doing the right thing regardless of what the law says.
D. Supporting Jeremiah's proposal.
E. Supporting Ellen's proposal.
Essay Questions
121.Discuss the ethical systems (universalism, egoism, utilitarianism, virtue
ethics and relativism). Provide an example of each.
122.Describe Kohlberg's model of cognitive moral development. Give an example

for each of the stages.
123.There are many examples of "danger signs" within an organization that create
a climate which encourages unethical behavior. Describe five of them.
124.Describe compliance-based ethics programs and integrity-based ethics

programs. Explain the differences between them and the expected outcomes
of each type of program.
125.Making ethical decisions takes moral awareness, moral judgment, and moral
character. Define each term and explain how you would use it in business.
126.Explain the process for ethical decision making.
127.Explain the pyramid of global corporate social responsibility and performance,

being sure to define each level of responsibility.
128.Build a case for the convergence of profit maximization and corporate social
responsibility.
129.Explain the risk society within which we live.
130.Discuss ecocentric management. How can it be beneficial to organizations?

Chapter 05 Ethics and Corporate Responsibility Answer Key
True / False Questions
1. Ethics is the system of rules that governs the ordering of values.
TRUE
Ethics is the system of rules that governs the ordering of values. It is

believed that managers, their organizations, and their communities thrive
over the long term when the managers apply ethical standards that direct
them to act with integrity.
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Level of Difficulty: 1 Easy
Topic: Management Connection
2. According to public opinion polls, only about a third of employees trust their
own CEO.
TRUE
According to a survey by Edelman, people are often suspicious of their own

company's management; only 31 percent said they trust their own CEO.
AACSB: Ethics
Blooms: Understand
Level of Difficulty: 2 Medium
3. Most people have unconscious biases that give others the benefit of the
doubt while simultaneously giving themselves little credit.
FALSE
Most people have unconscious biases that favor themselves and their own
group. Managers often hire people who are like them, think they are
immune to conflicts of interest, take more credit than they deserve, and
blame others when they deserve some blame themselves.
AACSB: Ethics
Blooms: Understand
4. Astroturfing is considered a difficult but ethical practice.
FALSE
In a practice known as Astroturfing, because the "grassroots" interest it

builds is fake, businesses pay bloggers to write positive comments about
them. This is considered a deceptive practice.
AACSB: Ethics
Blooms: Understand
5. An ethical issue is a situation, problem, or opportunity in which an individual

is obligated to choose among several actions that must be evaluated as
legal or illegal on the basis of law.
FALSE
An ethical issue is a situation, problem, or opportunity in which an individual

must choose among several actions that must be evaluated as morally right
or wrong.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
6. Business ethics comprises the moral principles and standards that guide
TRUE
Business ethics comprises the moral principles and standards that guide
AACSB: Ethics
Blooms: Remember
Topic: Ethics
7. Moral philosophy refers to the principles, rules, and values people use in
TRUE
Moral philosophy refers to the principles, rules, and values people use in
AACSB: Ethics
Blooms: Remember
Topic: Ethics
8. The principles underlying utilitarianism prohibit murder and oppression in
all societies.
FALSE
Universalism states that all people should uphold certain values, such as
honesty, that society needs to function. Universal values are principles so
fundamental to human existence that they are important in all societies, for
example rules against murder, deceit, torture, and oppression.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
9. Two basic ethical ideals underpin the Caux Principles: fairness and
equality.
FALSE
Two basic ethical ideals underpin the Caux Principles: kyosei and human
dignity. Kyosei means living and working together for the common good,
allowing cooperation and mutual prosperity to coexist with healthy and fair
competition.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
10. The ethical system known as egoism is similar to Adam Smith's concept of
the invisible hand in business.
TRUE
According to egoism, acceptable behavior is that which maximizes benefits

for the individual. This notion is similar to Adam Smith's concept of the
invisible hand in business. Smith argued that if every organization follows
its own economic self-interest, the total wealth of society will be
maximized.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
11. Utilitarianism defines acceptable behaviors as those that maximize benefits

for the individual.
FALSE

for the individual.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
12. Utilitarianism is an ethical system stating that the greatest good for the
greatest number should be the overriding concern of decision makers.
TRUE
Utilitarianism directly seeks the greatest good for the greatest number of
people.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
13. The ethical system known as relativism may be responsible for higher rates
of bribery and keeping double books in other countries than in the United
States.
TRUE
Relativism defines ethical behavior based on the opinions and behaviors of

relevant other people. Relativism acknowledges the existence of different
ethical viewpoints. For example, norms, or standards of expected and
acceptable behavior, vary from one culture to another.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
14. According to virtue ethics, moral individuals can transcend society's rules by
applying personal virtues.
TRUE
Virtue ethics is a perspective that goes beyond the conventional rules of

society by suggesting that what is moral must also come from what a
mature person with good "moral character" would deem right. Society's
rules provide a moral minimum, and then moral individuals can transcend
rules by applying their personal virtues such as faith, honesty, and integrity.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
15. People in the preconventional stage of Kohlberg's model of cognitive moral
development conform to the expectations of ethical behavior held by groups
or institutions such as society, family, or peers.
FALSE
People in the preconventional stage make decisions based on concrete

rewards and punishments and immediate self-interest. People in the
conventional stage conform to the expectations of ethical behavior held by
groups or institutions such as society, family, or peers.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
16. Concerns about urban sprawl, CEO pay, and artistic control make it clear
that many issues in business ethics remain unsolved.
TRUE
Table 5.2 shows some other important examples of ethical dilemmas in

business, including the ones in the question.
Refer To: Table 5.2
AACSB: Ethics
Blooms: Understand
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Topic: Ethics
17. The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior
managers to personally sign off on financial results.
TRUE
Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain

investor confidence. The law requires companies to have more independent
board directors, to adhere strictly to accounting rules, and to have senior
managers personally sign off on financial results.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
18. The ethical climate of an organization refers to the processes by which

TRUE
The ethical climate of an organization refers to the processes by which

AACSB: Ethics
Blooms: Remember
Topic: Ethics
19. Excessive emphasis on long-term revenues over shorter-term
considerations is one of the factors that is conducive to unethical behavior.
FALSE
Many factors create a climate conducive to unethical behavior, including

excessive emphasis on short-term revenues over longer-term
considerations.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
20. You can be an ethical leader if you have a strong moral character,
regardless of what issues actually get most of your attention.
FALSE
When you are both personally moral and a moral manager, you will truly be
an ethical leader. You can have strong personal character, but if you pay
more attention to other things, and ethics is "managed" by "benign neglect,"
you won't have a reputation as an ethical leader.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
21. A compliance-based ethics program often fails to create a moral
commitment to ethical conduct.
TRUE
Compliance-based ethics programs should reduce illegal behavior and help

a company stay out of court. But they do not create a moral commitment to
ethical conduct; they merely ensure moral mediocrity.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
22. With an integrity-based ethics program, people govern themselves through

a set of guiding principles that they embrace.
TRUE
Integrity-based ethics programs are concerned with the law but also with
instilling in people a personal responsibility for ethical behavior. With such a
program, companies and people govern themselves through a set of guiding
principles that they embrace.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
23. Moral awareness means knowing what actions are morally defensible.
FALSE
Making ethical decisions takes moral awareness (realizing the issue has
ethical implications), moral judgment (knowing what actions are morally
defensible), and moral character (the strength and persistence to act in
accordance with your ethics despite the challenges).
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-03 Outline a process for making ethical decisions.
Topic: Ethics
24. A good process for ethical decision making begins with considering the
legal requirements.
FALSE
According to Figure 5.1, the process for decision making begins with
understanding all moral standards and recognizing all moral impacts.
Refer To: Figure 5.1
AACSB: Ethics
Blooms: Remember
Topic: Ethics
25. Being a whistleblower is typically a painless process.
FALSE
The road for whistleblowers is rocky. When whistleblowers go public, they

are often seen as acting against the company's interests. Many, perhaps
most, whistleblowers suffer consequences such as being ostracized, treated
rudely, or given undesirable assignments.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
26. Economic responsibility forms the base of the pyramid of global corporate
social responsibility and performance.
TRUE
According to Figure 5.3, the pyramid is made up of four levels, the bottom
one being economic responsibility.
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Topic: Corporate Social Responsibility
27. Charitable contributions are considered part of a firm's ethical
responsibilities in the pyramid of global corporate social responsibility and
performance.
FALSE
In the pyramid, philanthropic responsibilities are additional behaviors and

activities that society finds desirable and that the values of the business
support. Examples include supporting community projects and making
charitable contributions.
AACSB: Ethics
Blooms: Understand
28. A transcendent education involves balancing self-interest with
responsibility to others.
TRUE
A transcendent education has five higher goals that balance self-interest

with responsibility to others: empathy, generativity, mutuality, civil
aspiration, and intolerance of ineffective humanity.
AACSB: Ethics
Blooms: Remember
29. "The social responsibility of business is to increase profits," is a well known

quote from Milton Friedman, a Nobel Prize-winning economist.
TRUE
The Nobel Prize-winning economist Milton Friedman's now-famous dictum

was "The social responsibility of business is to increase profits." Friedman
contended that organizations may help improve the quality of life as long as
such actions are directed at increasing profits.
AACSB: Ethics
Blooms: Remember
30. Profit maximization and corporate social responsibility necessarily lead to
opposing corporate policies.
FALSE
Profit maximization and corporate social responsibility used to be regarded

as antagonistic, leading to opposing policies. But the two views can
converge.
AACSB: Ethics
Blooms: Understand
31. In general, the accumulated evidence indicates that social responsibility is

associated with better financial performance.
TRUE
On net, the accumulated evidence indicates that social responsibility is

associated with better financial performance. Socially responsible actions
can have long-term benefits.
AACSB: Ethics
Blooms: Understand
32. GE management sees environmental rules strictly as a burden and a cost to
the company.
FALSE
General Electric CEO Jeff Immelt used to view environmental rules as a

burden and a cost. Now he sees environmentally friendly technologies as
one of the global economy's most significant business opportunities. Under
a business initiative called Ecomagination, GE is looking for business
opportunities from solving environmental problems.
AACSB: Ethics
Blooms: Understand
Learning Objective: 05-05 Discuss reasons for businesses' growing interest in the natural environment.
Topic: The Natural Environment and Sustainability
33. The goal of ecocentric management is the creation of sustainable economic
TRUE
Ecocentric management has as its goal the creation of sustainable

economic development and improvement of quality of life worldwide for all
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind and Appendix B.
34. Sustainable growth refers to growth in profitability that sustains the wealth
of shareholders.
FALSE
Sustainable growth is economic growth and development that meet the

organization's present needs without harming the ability of future
generations to meet their needs.
AACSB: Ethics
Blooms: Remember
35. Sustainability in business is considered compatible with the natural
ecosystems that generate and preserve life.
TRUE

generations to meet their needs. Sustainability is fully compatible with the
natural ecosystems that generate and preserve life.
AACSB: Ethics
Blooms: Understand
36. Life cycle analysis (LCA) quantifies the total use of resources and the
releases into the air, water, and land.
TRUE
Life cycle analysis (LCA) is a process of analyzing all inputs and outputs,
through the entire "cradle-to-grave" life of a product, to determine the total
environmental impact of the production and use of a product. LCA
quantifies the total use of resources and the releases into the air, water,
and land.
AACSB: Ethics
Blooms: Understand
37. Greenwashing refers to misleading marketing claims about the

environmentally friendly nature of a product.
TRUE
Companies can emphasize green attributes in their marketing but need to

avoid misleading claims ("greenwashing") and public backlash.
AACSB: Ethics
Blooms: Understand
Multiple Choice Questions
38. A system of rules that governs the ordering of values is referred to as
A. Life cycle analysis.
B. Ethics.
C. Corporate legitimacy.
D. Justice.
E. The legal system.
Ethics is the system of rules that governs the ordering of values. The
premise is that managers, their organizations, and their communities thrive
over the long term when the managers apply ethical standards that direct
them to act with integrity.
AACSB: Ethics
Blooms: Remember
39. Which of the following statements about unethical corporate behavior is
most true?
A. When corporations behave unethically, only the top executives suffer.
B. When corporations behave unethically, only the shareholders suffer.
C. When corporations behave unethically, rank-and-file employees and

investors often suffer more than top executives.
D. When corporations behave badly, top executive or rank-and-file

employees are shielded from the fallout.
E. There is no evidence that corporations today ever behave unethically.
When corporations behave badly, it's often not the top executives but the
rank-and-file employees who suffer most.
AACSB: Ethics
Blooms: Understand
40. Honesty, caring, loyalty, fairness, and integrity are all examples of
A. Ethics.
B. Citizenship.
C. Values.
D. Emotions.
E. Excellence.
Values are principles of conduct such as caring, being honest, keeping

promises, pursuing excellence, showing loyalty, being fair, acting with
integrity, respecting others, and being a responsible citizen. Ethical
decisions are guided by the underlying values of the individual.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
41. A situation, problem, or opportunity in which an individual must choose
among several actions that must be evaluated as morally right or wrong is
called a(n)
A. Responsibility issue.
B. Ethical issue.
C. Moral business issue.
D. Legal issue.
E. Moral rights issue.

or wrong.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
42. Beth faces a decision to either do as her coworkers do by filling out
inaccurate time records or tell her manager what has been happening. This
is an example of
A. A moral rights debate.
B. An ethical issue.
C. The Caux Principles.
D. An avoidance situation.
E. Greenwashing.

or wrong.
AACSB: Ethics
Blooms: Apply
Level of Difficulty: 3 Hard
Topic: Ethics
43. The moral principles and standards that guide behavior in the world of
business are called
A. Corporate principles.
B. Business philosophy.
C. Organizational development.
D. Business ethics.
E. Organizational politics.
Business ethics comprises the moral principles and standards that guide
AACSB: Ethics
Blooms: Remember
Topic: Ethics
44. Principles, rules, and values that people use in deciding what is right and
wrong are called
A. Business ethics.
B. Corporate social responsibility.
C. Moral philosophy.
D. Business philosophy.
E. Caux Principles.
Moral philosophy refers to the principles, rules, and values that people use
in deciding what is right or wrong.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
45. Tyler believes in justice and opportunity for all, and he uses these principles
to make decisions about right and wrong in his daily life. These principles
are part of his
A. Moral philosophy.
B. Business ethics
C. Ying.
D. Ecocentric philosophy.
E. Personality.
Moral philosophy refers to the principles, rules, and values that people use
in deciding what is right or wrong.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
46. __________ is the ethical system stating that all people should uphold
certain values that society needs in order to function.
A. Moral philosophy
B. Egoism
C. Universalism
D. The Caux Principle
E. Utilitarianism
fundamental to human existence that they are important in all societies,
such as rules against murder, deceit, torture, and oppression.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
47. Which ethical system would most support the premise that people should
hold some values as always appropriate?
A. Egoism.
B. Deontology.
C. Relativism.
D. Universalism.
E. Utilitarianism.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
48. Ashleigh works as a receptionist for a law firm. Some of the lawyers have
asked her to tell callers that they are in court when in fact they are playing
golf. She wanted to quit the job because she hated to lie to people. Ashleigh
is following the ethical system referred to as
A. Egoism.
B. Deontology.
C. Relativism.
D. Universalism.
E. Utilitarianism.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
49. The Caux Principles are based on two ethical ideals:
A. Fairness and equality.
B. Self-fulfillment and sharing.
C. Kyosei and respect.
D. Kyosei and human dignity.
E. Self fulfillment and happiness.
Two basic ethical ideals underpin the Caux Principles: kyosei and human
dignity. Kyosei means living and working together for the common good,
allowing cooperation and mutual prosperity to coexist with healthy and fair
competition. Human dignity concerns the value of each person as an end,
not a means to the fulfillment of others' purposes.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
50. ___________ considers acceptable behavior to be that which maximizes
benefits for the individual.
A. Egoism
B. Deontology
C. Relativism
D. Universalism
E. Utilitarianism

for the individual. If everyone follows this system, according to its
proponents, the well-being of society as a whole should increase.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
51. The ethical system known as utilitarianism is centered around the idea that
A. Some values must always be upheld, regardless of the consequences.
B. Societal rules or customs should be used to order values.
C. Society will be enhanced if we all take care of ourselves and don't harm
others.
D. Individuals might choose between conflicting values by tallying the final

results of the various acts.
E. The greatest good for the greatest number should be the overriding
concern of decision makers.
Utilitarianism directly seeks the greatest good for the greatest number of
people.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
52. ________ is a philosophy that bases ethical behavior on the opinions and
behaviors of relevant other people.
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism

ethical viewpoints, often based on norms.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
53. __________ acknowledges the existence of different ethical viewpoints and
uses norms as guidelines.
A. Virtue ethics
B. Relativism
C. Universalism
D. Utilitarianism
E. Egoism

ethical viewpoints, often based on norms.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
54. Bina thought it was OK to download music for free from the Internet since
all of her friends did it. Bina is using which ethical system for her
decisions?
A. Egoism.
B. Virtue ethics.
C. Relativism.
D. Universalism.
E. Utilitarianism.

relevant other people, such as Bina's friends. Relativism acknowledges the
existence of different ethical viewpoints, often based on norms.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
55. __________ is a perspective that goes beyond the conventional rules of
mature person with good "moral character" would deem right.
A. Business ethics
B. Virtue ethics
C. Relativism
D. Utilitarianism
E. Egoism
Virtue ethics is a perspective that goes beyond the conventional rules of

mature person with good "moral character" would deem right. Society's
rules provide a moral minimum, and then moral individuals can transcend
rules by applying their personal virtues such as faith, honesty, and integrity.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
56. The work of __________ classifies people into categories based on their level
of moral judgment.
A. Kravitz
B. Frederick
C. Immelman
D. Kohlberg
E. Taylor
Kohlberg's model of cognitive moral development classifies people into

categories based on their level of moral judgment.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
57. Which of the following is one of Kohlberg's stages of cognitive moral
development?
A. Unconventional.
B. Emotional.
C. Relative.
D. Principled.
E. Developed.

categories based on their level of moral judgment. The stages are
preconventional, conventional, and principled.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
58. The first stage of Kohlberg's model of cognitive moral development is
known as
A. Emotional.
B. Conventional.
C. Primary.
D. Preconventional.
E. Normative.

categories based on their level of moral judgment. The stages are
preconventional, conventional, and principled.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
59. At what level of moral development would Kohlberg describe Shannon, if he
determines his work behaviors solely on whether he thinks he can do them
without receiving punishment from his boss?
A. Emotional.
B. Conventional.
C. Principled.
D. Preconventional.
E. Normative.
People in the preconventional stage of Kohlberg's model of cognitive moral

development make decisions based on concrete rewards and punishments
and immediate self-interest.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
60. Cassandra's behavior is typically guided by what she thinks would be
acceptable to her parents. She appears to be at which stage of cognitive
moral development according to Kohlberg?
A. Emotional.
B. Conventional.
C. Principled.
D. Preconventional.
E. Utilitarian.
People in the conventional stage conform to the expectations of ethical

behavior held by groups or institutions such as society, family, or peers.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
61. People in the _________ stage of Kohlberg's model of cognitive moral
development see beyond authority, laws, and norms and follow their self-
chosen ethical principles.
A. emotional
B. conventional
C. principled
D. preconventional
E. advanced
People in the principled stage of Kohlberg's model see beyond authority,

laws, and norms and follow their self-chosen ethical principles.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
62. Despite many high-profile scandals, most business leaders believe
A. They don't understand business ethics.
B. They uphold ethical standards in business practices.
C. They don't have to worry about ethics if they hire employees with strong
moral backgrounds.
D. Ethical standards in business practices are strictly voluntary.
E. They need to worry about the firm's stock price, not ethics.
Most business leaders believe they uphold ethical standards in business

practices. But many managers and their organizations must deal frequently
with ethical dilemmas, and the issues are becoming increasingly complex.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
63. Which of the following statements about the Sarbanes-Oxley Act is true?
A. It was passed in 1992.
B. It requires strict adherence to accounting rules.
C. It was written in response to a series of public protests.
D. It is intended to maintain truth in advertising.
E. It requires whistleblowers to be fired.
Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain

investor confidence. The law requires companies to have more independent
board directors, to adhere strictly to accounting rules, and to have senior
managers personally sign off on financial results.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
64. Which of the following is described as a current ethical issue in the text?
A. CEO pay.
B. Sweatshops.
C. Urban sprawl.
D. Commercialism in schools.
E. All of these are described as current ethical issues.
Table 5.2 lists several ethical issues in business, including all of the choices
in the question.
Refer To: Table 5.2
AACSB: Ethics
Blooms: Understand
Topic: Ethics
65. The __________ of an organization refers to the processes by which
A. corporate culture
B. ethical climate
C. ethics code
D. legal responsibility
E. moral obligation

AACSB: Ethics
Blooms: Remember
Topic: Ethics
66. Which of the following is a danger sign that organizations may be allowing
or even encouraging unethical behavior?
A. Thinking only about shareholder demands.
B. Failure to establish a written code of ethics.
C. A desire for "quick fix" solutions.
D. Lack of clear procedures for handling ethical problems.
E. All of these are danger signs for an organization's ethical climate.
Many factors create a climate conducive to unethical behavior, including all

of the answers in this question.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
67. One who is both a moral person and a moral manager influencing others'
ethical behavior is referred to as a(n)
A. Ethical leader.
B. Ethics chairperson.
C. VP of ethics.
D. Transitional leader.
E. Transformational leader.
When you are both personally moral and a moral manager, you will truly be
an ethical leader. You can have strong personal character, but if you pay
more attention to other things, and ethics is "managed" by "benign neglect,"
you won't have a reputation as an ethical leader.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
68. The ________ ethical framework encourages employees to consider whether
they would like to see their decisions displayed on the front page of the
newspaper. If they would not mind, then it is likely an appropriate course of
action.
A. Kohlberg
B. sunshine
C. newspaper
D. journalist
E. publicity
One ethics suggestion is to imagine how you would feel if you saw your
decision and its consequences on the front page of the newspaper. This
"light of day" or "sunshine" ethical framework can be powerful.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
69. Johnson & Johnson's ethics code has been widely recognized because
A. The code focuses only on employee behavior.
B. It does not mention stockholders.
C. It is effective; J&J consistently receives high rankings for community and

social responsibility.
D. Employees see little relation between it and the realities at the firm.
E. The statement uses humor to make light of the potential issues.
Johnson & Johnson has one of the most famous ethics codes; it is featured
in Table 5.4. J&J consistently receives high rankings for community and
social responsibility in Fortune's annual survey of corporate reputations.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
70. Which of the following is advised by the text for constructing an ethics
code?
A. Cover as many potential issues as possible to provide maximum clarity.
B. Make it "catchy"; better something "clever" than something "important."
C. Involve only the legal department and top executives in writing the
statement.
D. Explain away potential conflicts between reality and the language used in
the code with humor.
E. Focus on relatable, real-life situations.
Effective ethics codes involve those who have to live with the code in
writing it; focus on real-life situations that employees can relate to; keep it
short, simple, and easy to understand and remember; write about values
and shared beliefs that people can really believe in; and set the tone at the
top, having executives talk about and live up to the statement.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
71. An ethics program that is designed by lawyers to detect, prevent, and
punish legal violations is called a(n) _________ ethics program.
A. integrity-based
B. compliance-based
C. competency-based
D. legally-based
E. responsibility-based
Compliance-based ethics programs are designed by corporate counsel to

prevent, detect, and punish legal violations. Compliance-based programs
increase surveillance and controls on people and impose punishments on
wrongdoers.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
72. Corporate ethics programs commonly include which of the following?
A. Formal ethics code.
B. Ethics committees.
C. Ethics communication systems.
D. Ethics ombudspersons.
E. All of these are generally included in corporate ethics programs.
Corporate ethics programs commonly include formal ethics codes that

articulate the company's expectations; ethics committees that develop
policies, evaluate actions, and investigate violations; ethics communication
systems that give employees a means of reporting problems or getting
guidance; ethics officers or ombudspersons who investigate allegations and
provide education; ethics training programs; and disciplinary processes for
addressing unethical behavior.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
73. Compliance-based ethics programs are typically designed by
A. Lawyers.
B. Employees.
C. Top executives.
D. Stockholders/owners.
E. Focus groups of customers.

prevent, detect, and punish legal violations.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
74. Compliance-based ethics programs are most effective at ensuring
A. Resistance to social responsibility.
B. Moral mediocrity.
C. Discretionary social responsibility.
D. Proactive social responsibility.
E. A moral commitment to ethical conduct.
Compliance-based ethics programs should reduce illegal behavior and help

a company stay out of court. But they do not create a moral commitment to
ethical conduct; they merely ensure moral mediocrity.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
75. Integrity-based ethics programs use
A. Stated ethicsl rules and policies.
C. A set of guiding principles.
D. Monitoring and punishment.
E. Discretionary social responsibility.
With integrity-based ethics programs, companies and people govern

themselves through a set of guiding principles that they embrace.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
76. Going beyond legal compliance with ADA standards and training people to
understand that individuals with disabilities also have valued abilities is an
example of
A. Compliance-based programs.
B. Integrity-based programs.
C. Minimum requirements programs.
D. A strong code of ethics.
E. An ethical dilemma.
Integrity-based ethics programs would go further by training people to

understand and perhaps change attitudes toward people with disabilities
and sending clear signals that people with disabilities also have valued
abilities. This effort goes far beyond taking action to stay out of trouble with
the law.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
77. Ethical programs tend to be better integrated into operations, thinking, and
behavior when
A. Every employee has signed the code of ethics.
B. Top management has a personal commitment to responsible ethical

behavior.
C. Employees have seen top managers punished for their wrongdoings.
D. Managers use punishment to motivate employees to "be good."
E. Compliance-based programs are used.
When top management has a personal commitment to responsible ethical

behavior, programs tend to be better integrated into operations, thinking,
and behavior. Ethics should be a thoroughly integrated aspect of the way
the company and its people do business.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
78. Jamila is considering a layoff of several of employees in her division. She
has realized that there are ramifications for her employees as well as the
shareholders. This is known as
A. Moral certainty.
B. Moral actionability.
C. Moral awareness.
D. Moral judgment.
E. Moral character.
Moral awareness begins with considering whether a decision has

ramifications that disadvantage employees, the environment, or other
stakeholders.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
79. Having the strength and persistence to act in accordance with your ethics
despite the challenges is referred to as
A. Moral awareness.
B. Moral judgment.
C. Moral certainty.
D. Moral action.
E. Moral character.
Moral character is having the strength and persistence to act in accordance

with your ethics despite the challenges.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
80. John Rawls maintained that only a person ignorant of his own identity can
make a truly ethical decision. This thought process is based on
A. Ethical shielding.
B. The veil of understanding.
C. The veil of ignorance.
D. Ethical certainty.
E. Ethical ignorance.
The philosopher John Rawls created a thought experiment based on the

"veil of ignorance." A decision maker can tactically apply the veil of
ignorance to help minimize personal bias.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
81. The process for ethical decision making begins with
A. Defining the complete moral problem.
B. Developing an ethical framework.
C. Determining the legal requirements.
D. Understanding all moral standards and recognizing all moral impacts.
E. Proposing a moral solution.
To resolve ethical problems, you can use the process illustrated in Figure
5.1, beginning with understanding the various moral standards
(universalism, relativism, etc.) and recognizing the impacts of your
alternatives.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
82. Recognizing the moral impacts of the decision alternatives includes
considering which of the following?
A. Which parties will benefit.
B. Which rights people can exercise.
C. Who will suffer harms.
D. If a solution will deny the exercise of some rights.
E. All of these are included as moral impacts of decision alternatives.
To resolve ethical problems, you can use the process illustrated in Figure
5.1, beginning with understanding the various moral standards
(universalism, relativism, etc.) and recognizing the impacts of your
alternatives.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
83. Behaving ethically requires not just moral awareness and moral judgment,
but also the _________ to take actions consistent with your ethical
decisions.
A. ability
B. enthusiasm
C. desire
D. courage
E. instruction
Behaving ethically requires not just moral awareness and moral judgment
but also moral character, including the courage to take actions consistent
with your ethical decisions.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
84. Which of the following business costs of ethical failures are considered
Level 1 costs that, while less damaging, are likely to get the most attention
from executives?
B. Cost of remedial education.
C. Cost of corrective action.
E. Employee turnover.
According to Figure 5.2, government fines and penalties are considered

Level 1 costs of ethical failures.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
85. Which of the following is a Level 2 cost of ethical failure?
B. Legal and investigative costs.
C. Customer defections.
E. Employee cynicism.
According to Figure 5.2, legal and investigative costs are considered Level 2
costs of ethical failures.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
86. Telling others, inside or outside the organization, about wrongdoing is
called
A. Ethical shadowing.
B. Whistleblowing.
C. Egoism.
D. Ethical interference.
E. Moral consequences.
Courage is necessary when you decide that the only ethical course of action
is whistleblowing, which is telling others, inside or outside the organization,
about wrongdoing.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
87. Corporate social responsibility is the
A. Taking of an active role in training employees to be ethical.
B. Obligation toward society assumed by business.
C. Following of laws that govern the industry in which a company operates.
D. Encouragement of recycling efforts within the organization.
E. Maximization of shareholder wealth.
Corporate social responsibility is the obligation toward society assumed by

business. It consists broadly of policies and practices that reflect business
responsibility for some of the wider societal good.
AACSB: Ethics
Blooms: Remember
88. McDonald's changed the packaging of its sandwiches to minimize waste.
Additionally, it uses recycled paper to bag its products. McDonald's states
that these actions make the earth a "nicer place to eat." Here McDonald's is
participating in
A. Deregulation.
C. Maximizing customer actualization.
D. Corporate social responsibility.
E. Corporate wealth enhancement.
Corporate social responsibility is the obligation toward society assumed by

business. It consists broadly of policies and practices that reflect business
responsibility for some of the wider societal good.
AACSB: Ethics
Blooms: Apply
89. The _________ responsibilities of business are to produce goods and
services that society wants at prices that perpetuate the business and
satisfy its obligations to investors.
A. economic
B. legal
C. financial
D. philanthropic
E. ethical
Social responsibilities can be categorized as shown in Figure 5.3. The

economic responsibilities of business are to produce goods and services
AACSB: Ethics
Blooms: Remember
90. Within the pyramid of global corporate social responsibility and
performance, obeying local, state, federal, and relevant international laws is
known as ________ responsibility.
A. economic
B. legal
C. professional
D. philanthropic
E. ethical
Social responsibilities can be categorized as shown in Figure 5.3. Legal

responsibilities are to obey local, state, federal, and relevant international
laws.
AACSB: Ethics
Blooms: Remember
91. Which of the following levels of corporate social responsibility of business
includes meeting societal expectations that are not written as law?
A. Economic.
B. Legal.
C. Social.
D. Philanthropic.
E. Ethical.
Social responsibilities can be categorized as shown in Figure 5.3. Ethical

responsibilities include meeting other societal expectations, not written as
law.
AACSB: Ethics
Blooms: Remember
92. Pork producer Smithfield Foods took on which of the following
responsibilities of business by discontinuing the practice of confining sows
in gestation crates during pregnancy, conforming to external expectations
though it was not legally required to do so?
A. Preconventional.
B. Economic.
C. Ethical.
D. Legal.
E. Philanthropic.
Social responsibilities can be categorized as shown in Figure 5.3. Ethical

responsibilities include meeting other societal expectations, not written as
law.
AACSB: Ethics
Blooms: Understand
93. Which level of the pyramid of global corporate social responsibility and
performance represents a company's efforts to be a good global corporate
citizen, such as supporting community programs?
E. Charitable responsibility.
Philanthropic responsibilities are behaviors and activities beyond legal and

ethical ones that society finds desirable and that the values of the business
support. Examples include supporting community projects and making
charitable contributions.
AACSB: Ethics
Blooms: Understand
94. Which of the following levels of the pyramid of global corporate social
responsibility and performance represents a company's requirement to be
profitable?
B. None; this is not part of the pyramid.
E. Financial responsibility.
The economic responsibilities of business are to produce goods and

services that society wants at prices that perpetuate the business and
satisfy its obligations to investors.
AACSB: Ethics
Blooms: Understand
95. The order of the levels in the pyramid of global corporate social
responsibility and performance is (from bottom to top)
A. Economic, legal, philanthropic, and ethical.
B. Ethical, economic, legal, and philanthropic.
C. Economic, legal, ethical, and philanthropic.
D. Legal, economic, ethical, and philanthropic.
E. Philanthropic, economic, legal, and ethical.
Social responsibilities can be categorized as shown in Figure 5.3. The order

of the levels is economic, legal, ethical, and philanthropic.
AACSB: Ethics
Blooms: Understand
96. Home Depot supports Habitat for Humanity, a nonprofit that builds
affordable housing for those struggling with poverty, housing, or
homelessness. Donations to such an organization are an example of
C. Conventional responsibility.
D. Ethical responsibility.
E. Philanthropic responsibility.
Philanthropic responsibilities are additional behaviors and activities that

society finds desirable and that the values of the business support.
Examples include supporting community projects and making charitable
contributions.
AACSB: Ethics
Blooms: Apply
97. The attempt to provide an education that teaches students to leave a legacy
that extends beyond the bottom line is called a(n) _________ education.
A. ethical
B. socially responsible
C. transcendent
D. committed
E. management
Robert Giacalone, ethics teacher at Temple University, believes that a 21st-

century education must help students think beyond self-interest and
profitability. A real education, he says, teaches students to leave a legacy
that extends beyond the bottom line: a transcendent education.
AACSB: Ethics
Blooms: Remember
98. Which of the following is a goal of a transcendent education?
A. Persuasion.
B. Independence.
C. Empathy.
D. Candidness.
E. All of these are goals of a transcendent education.

aspiration, and intolerance of ineffective humanity.
AACSB: Ethics
Blooms: Remember
99. Which of the five goals of a transcendent education involves viewing
success not merely as personal gain, but as a common victory?
A. Empathy.
B. Generativity.
C. Mutuality.

aspiration, and intolerance of ineffective humanity. Mutuality means viewing
success not merely as personal gain, but as a common victory.
AACSB: Ethics
Blooms: Remember
100. As one of the goals of a transcendent education, speaking out against
unethical actions is called
A. Empathy.
B. Generativity.
C. Mutuality.

aspiration, and intolerance of ineffective humanity. Intolerance of
ineffective humanity means speaking out against unethical actions.
AACSB: Ethics
Blooms: Remember
101. Opponents of corporate social responsibility would suggest that
A. Organizations ought to be profit-seeking and that when they concentrate

on this motive, they will benefit society.
B. Organizations' only responsibilities are clearly defined by the laws and

regulations imposed upon them.
C. Organizations' responsibilities are to attempt to satisfy all relevant

stakeholders' interests.
D. An organization's responsibility is to satisfy select stakeholders that

express their specific needs.
E. An organization's only goal should be to provide employment with safe

working conditions.
University of Chicago economist Milton Friedman said, "The social

responsibility of business is to increase profits." He contended that
organizations may help improve the quality of life as long as such actions
are directed at increasing profits. He believed that it was unethical for
unelected business leaders to decide what was best for society and
unethical for them to spend shareholders' money on projects unconnected
to key business interests.
AACSB: Ethics
Blooms: Understand
102. Who wrote that "the social responsibility of business is to increase profits?"
A. Adam Smith.
B. Milton Friedman.
C. Robert Giacalone.
University of Chicago economist Milton Friedman said, "The social

responsibility of business is to increase profits." He contended that
organizations may help improve the quality of life as long as such actions
are directed at increasing profits.
AACSB: Ethics
Blooms: Remember
103. Who argued that sympathy, defined as a proper regard for others, is the
basis of a civilized society?
A. Adam Smith.
B. Milton Friedman.
C. Benjamin Franklin.
Adam Smith wrote A Theory of Moral Sentiments, in which he argued that

"sympathy," defined as a proper regard for others, is the basis of a civilized
society.
AACSB: Ethics
Blooms: Remember
104. Under a business initiative called Ecomagination, GE is looking for business
opportunities through
A. Lean manufacturing.
B. Environmental scanning.
C. Macroeconomic theory.
D. Integrity-based programs.
E. Solving environmental problems.
Under a business initiative called Ecomagination, GE is looking for business

opportunities from solving environmental problems. Ecomagination
solutions already include wind turbines, materials for solar energy cells, and
energy-efficient home appliances.
AACSB: Ethics
Blooms: Remember
Topic: The Natural Environment
105. Some of the world's worst environmental problems are in
A. Japan.
B. The United States.
C. Latin America.
D. Europe.
E. China.
Some of the world's worst environmental problems are in China because of

its rapid industrialization and its huge population and size. About one-third
of China's rural population, hundreds of millions of people, drink
unhealthful, unclean water.
AACSB: Ethics
Blooms: Understand
106. __________ has as its goal the creation of sustainable economic
A. Corporate social responsibility
C. Ecocentric management
D. Take-make-waste
E. Ecomagination
Ecocentric management has as its goal the creation of sustainable

economic development and improvement of quality of life worldwide for all
AACSB: Ethics
Blooms: Remember
107. Economic growth and development that meets present needs without
harming the needs of future generations is known as
A. Ecocentric management.
B. Risk management.
C. Sustainable growth.
D. Sustainable management.
E. Ecocentric growth.

AACSB: Ethics
Blooms: Remember
108. __________ is a process of analyzing all inputs and outputs, through the
entire "cradle-to-grave" life of a product, to determine the total
environmental impact of the production and use of a product.
A. Ecocentric management
C. Sustainable growth
D. Sustainable management
E. The green movement

AACSB: Ethics
Blooms: Remember
Scenario A
Your organization faces an ethical dilemma. A problem with your accounting

process has resulted in higher profits being reported than were actually
earned. You are attending a meeting where senior management is deciding
how to handle the situation. The people at the table have varying views of
what action to take and why.
Ethan wants to report the error immediately because he believes he could
possibly go to jail if it isn't reported right away.
Tripp wants to report the error because it is the honest thing to do, and
therefore necessary. After hearing his colleagues' opinions, Carlos says he
wants to report the error as well because he wants to go along with the
more experienced managers in the group.
109. Tripp is using which ethical system for his decision making?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
honesty, that society needs to function.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
110. Ethan is using which ethical system for his decision making?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
Egoism is an ethical system defining acceptable behavior as that which

maximizes benefits for the individual, in this case Ethan keeping himself out
of jail.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
111. Carlos is using which ethical system for his decision making?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.

relevant other people.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario B
Suppose you face a question regarding how to handle a defective piece of

equipment that your company sold. Telling the customer would cost you a
substantial amount of money; but if the equipment fails, it could lead to
serious injury of the customer. You are going to choose between three
options presented by colleagues:
Option 1: Keep quiet about the defect.

Option 2: Review company policy, industry practices, and advice from
colleagues.
Option 3: Disclose the defect and suggest alternatives to eliminate the risk
of injury.
112. Option 1 employs which ethical approach?
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
Egoism is an ethical system defining acceptable behavior as that which

maximizes benefits for the individual, in this case keeping a substantial
amount of money.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.

relevant other people.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
A. Universalism.
B. Egoism.
C. Utilitarianism.
D. Relativism.
E. Virtue ethics.
Virtue ethics, applied by people in the principled stage of moral

development, would likely lead to full disclosure about the product and
risks, and perhaps suggestions for alternatives that would reduce the risk.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario C
Two managers from different departments at Clarion Bank are discussing

the troubling behavior of a bank employee. Adrian's reaction is simply to
say, "As far as I'm concerned, if he doesn't get busted for it, it didn't
happen. If he does get caught, I'll wash my hands of him." Her associate,
Clarke, has a very different idea: "I believe that every individual should take
personal responsibility for his behavior. I want everyone that works here to
understand how to do the right thing."
115. Each of these managers may be responsible for creating a different
________ in their own departments.
A. organizational atmosphere
B. ethical climate
C. moral perspective
D. organizational dynamic
E. corporate culture

AACSB: Ethics
Blooms: Understand
Topic: Ethics
116. Adrian would most likely prefer which type of ethics program for the
company?
A. Associate-based.
C. Integrity-based.
D. Systems-based.
E. Consensus-based.

prevent, detect, and punish legal violations. These types of programs merely
ensure moral mediocrity as Adrian is exhibiting.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
117. Clarke seems to prefer which type of program for the company?
A. Associate-based.
C. Integrity-based.
D. Systems-based.
E. Consensus-based.
Integrity-based ethics programs go beyond the mere avoidance of illegality;

they are concerned with the law but also with instilling in people a personal
responsibility for ethical behavior such as Clarke is exhibiting.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario D
Senior management at Valley Development are attending a corporate

retreat, and the first item for discussion is corporate social responsibility
(CSR). The group has discussed this before and then shot it down because
it generally costs Valley's shareholders in the form of reduced distributions.
But the new VP, Gita Halle, is about to explain why she believes CSR will
actually benefit the shareholders and Valley management alike. Her team
begins the presentation with a discussion of CSR, both its current definition
and reconciliation of past views. Jeremiah then discusses the importance of
being a good global corporate citizen by supporting the local school system.
Ellen takes the floor to make the case for doing what is expected by global
stakeholders even though there are no laws requiring those actions. Finally
Gita wraps the discussion up with why Valley should take legal and
economic responsibility for the firm's performance.
118. Jeremiah's presentation most likely focused on the __________ responsibility
of the firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
Philanthropic responsibilities are additional behaviors and activities that

society finds desirable and that the values of the business support.
AACSB: Ethics
Blooms: Apply
119. Ellen's presentation most likely focused on the __________ responsibility of
the firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
Ethical responsibilities include meeting other societal expectations, not

written as law.
AACSB: Ethics
Blooms: Apply
120. Gita's presentation centered on taking which of the following actions?
A. Production of goods and services that society wants at prices that

perpetuate the business and satisfy its obligations to investors.
B. Obeying all laws that affect Valley's operations.
C. Doing the right thing regardless of what the law says.
D. Supporting Jeremiah's proposal.
E. Supporting Ellen's proposal.
Economic responsibilities of business are to produce goods and services

AACSB: Ethics
Blooms: Apply
Essay Questions
121. Discuss the ethical systems (universalism, egoism, utilitarianism, virtue
ethics and relativism). Provide an example of each.
Answers will vary.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
122. Describe Kohlberg's model of cognitive moral development. Give an

example for each of the stages.
Answers will vary.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
123. There are many examples of "danger signs" within an organization that
create a climate which encourages unethical behavior. Describe five of
them.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
124. Describe compliance-based ethics programs and integrity-based ethics

programs. Explain the differences between them and the expected
outcomes of each type of program.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
125. Making ethical decisions takes moral awareness, moral judgment, and
moral character. Define each term and explain how you would use it in
business.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
126. Explain the process for ethical decision making.
Answers will vary.
Feedback: Refer To: Figure 5.1
AACSB: Ethics
Blooms: Understand
Topic: Ethics
127. Explain the pyramid of global corporate social responsibility and
performance, being sure to define each level of responsibility.
Answers will vary.
Feedback: Refer To: Figure 5.3
AACSB: Ethics
Blooms: Understand
128. Build a case for the convergence of profit maximization and corporate social
responsibility.
Answers will vary.
AACSB: Ethics
Blooms: Apply
129. Explain the risk society within which we live.
Answers will vary.
AACSB: Ethics
Blooms: Understand
130. Discuss ecocentric management. How can it be beneficial to organizations?
Answers will vary.
AACSB: Ethics
Blooms: Understand

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Management Leading and Collaborating in

a Competitive World 10th Edition Bateman

Test Bank: https://testbankpack.com/p/test-bank-for-

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

Ethics and Corporate Responsibility

True / False Questions

1. Ethics is the system of rules that governs the ordering of values.

4. Astroturfing is considered a difficult but ethical practice.

5. An ethical issue is a situation, problem, or opportunity in which an individual is

8. The principles underlying utilitarianism prohibit murder and oppression in all

11. Utilitarianism defines acceptable behaviors as those that maximize benefits

15. People in the preconventional stage of Kohlberg's model of cognitive moral

19. Excessive emphasis on long-term revenues over shorter-term considerations

21. A compliance-based ethics program often fails to create a moral commitment

22. With an integrity-based ethics program, people govern themselves through a

25. Being a whistleblower is typically a painless process.

27. Charitable contributions are considered part of a firm's ethical responsibilities

28. A transcendent education involves balancing self-interest with responsibility

29. "The social responsibility of business is to increase profits," is a well known

31. In general, the accumulated evidence indicates that social responsibility is

32. GE management sees environmental rules strictly as a burden and a cost to

33. The goal of ecocentric management is the creation of sustainable economic

37. Greenwashing refers to misleading marketing claims about the

Multiple Choice Questions

38. A system of rules that governs the ordering of values is referred to as

A. Life cycle analysis.

E. The legal system.

A. When corporations behave unethically, only the top executives suffer.

B. When corporations behave unethically, only the shareholders suffer.

C. When corporations behave unethically, rank-and-file employees and

D. When corporations behave badly, top executive or rank-and-file employees

E. There is no evidence that corporations today ever behave unethically.

C. Moral business issue.

E. Moral rights issue.

A. A moral rights debate.

C. The Caux Principles.

B. Corporate social responsibility.

D. The Caux Principle

A. Fairness and equality.

B. Self-fulfillment and sharing.

C. Kyosei and respect.

D. Kyosei and human dignity.

E. Self fulfillment and happiness.

50. ___________ considers acceptable behavior to be that which maximizes

A. Some values must always be upheld, regardless of the consequences.

B. Societal rules or customs should be used to order values.

D. Individuals might choose between conflicting values by tallying the final

60. Cassandra's behavior is typically guided by what she thinks would be

62. Despite many high-profile scandals, most business leaders believe

A. They don't understand business ethics.

B. They uphold ethical standards in business practices.

D. Ethical standards in business practices are strictly voluntary.

A. It was passed in 1992.

B. It requires strict adherence to accounting rules.

C. It was written in response to a series of public protests.

D. It is intended to maintain truth in advertising.

E. It requires whistleblowers to be fired.

E. All of these are described as current ethical issues.

65. The __________ of an organization refers to the processes by which decisions

A. Thinking only about shareholder demands.

B. Failure to establish a written code of ethics.

C. A desire for "quick fix" solutions.

D. Lack of clear procedures for handling ethical problems.