question

Which of the following statements about ethics is true?

answer

Ethics is the set of moral principles or values that defines right and wrong for a person or group.

question

The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.

answer

U.S. Sentencing Commission Guidelines.

question

Which of the following organizations are covered by the U.S. Sentencing Commission Guidelines?

answer

All of these.

question

If a catalog retailer promised customers it would not sell their information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy. Its sentence would be determined by ____.

answer

The U.S. Sentencing Commission Guidelines.

question

The U.S. Sentencing Commission Guidelines impose smaller fines on companies that ____.

answer

Have already established a specific type of compliance program.

question

According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense (i.e., the seriousness of the problem)?

answer

Examining the loss incurred by the victims.

question

What does it mean when the text says that the U.S. Sentencing Guidelines use a "carrot and stick" approach?

answer

The Guidelines offer lower fines to companies that take proactive steps.

question

To create a compliance program that is acceptable under the U.S. Sentencing Guidelines, a company should ____.

answer

Do all of these.

question

When addressing issues of high ____ , managers are more aware of the impact their decisions have on others, they are more likely to view the decision as an ethical decision, and they are more likely to worry about doing the right thing.

answer

Ethical intensity.

question

What term describes the degree of concern people have about an ethical issue?

answer

Ethical intensity.

question

Ethical intensity depends on all of the following EXCEPT ____.

answer

Social commitment.

question

Ethical intensity depends in part upon ____.

answer

Temporal immediacy.

question

According to a GAO report, the Department of Defense alone maintains an inventory of at least $100 billion in spare parts, clothing, medical supplies, and fuel. Even though the Department of Defense doesn't classify pilferage as a major problem, its annual inventory shrinkage alone runs $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to ____.

answer

Magnitude of influence.

question

IAG (Individualized Apparel Group) formally closed its H. Freeman factory in Philadelphia in May. Jim Brubaker, IAG's division president of clothing, informed the workers of this closing in April. Due to ____, this decision produced strong ethical intensity.

answer

Temporal immediacy.

question

Due to ____ , the intentional pollution of a metropolitan water supply would have greater ethical intensity than insider trading in which a few participants netted less than $10,000.

answer

All of these.

question

____ is strong when decisions have large, certain, immediate consequences and when we are physically or psychologically close to those affected by the decision.

answer

Ethical intensity.

question

Shell Oil Company's plan to sink Brent Spar, an abandoned offshore oil-storage buoy, had a massive effect on employee motivation and recruitment. The number of qualified people applying for jobs at Shell plummeted, and many employees looked for positions in other companies. The plan caused much greater harm than Shell's managers had ever imagined it would. In other words, the plan had a much greater ____ than predicted.

answer

Magnitude of consequences.

question

The three stages of moral development identified by Kohlberg are ____.

answer

Pre-conventional level, conventional level, and post-conventional level.

question

Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler, or something similar in his lunch box and takes it home with him. Doug sees nothing wrong with his behavior since he feels inadequately paid. In terms of Kohlberg's stages of moral development, Doug is operating at which level?

answer

Pre-conventional.

question

According to Kohlberg's model of moral development, people at the ____ make decisions that are based on selfish reasons.

answer

Pre-conventional level.

question

According to Kohlberg's model of moral development, people at the ____ make decisions that conform to societal expectations.

answer

Conventional level.

question

According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas.

answer

Post-conventional level.

question

To encourage more ethical decision making in an organization, managers should ____.

answer

Do all of these.

question

A(n) ____ is a written test that estimates employee honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviors.

answer

Overt integrity test.

question

Managers can use integrity tests to _____.

answer

Select and hire ethical employees.

question

____ integrity tests indirectly estimate employee honesty by measuring psychological traits.

answer

Personality-based.

question

When the Chicago-based Club Aluminum Company was facing bankruptcy, one of the changes its new CEO made was to create a(n) ____ for all employees to follow in their business and professional lives. It read, "Of the things we think, say, and do: (1) Is it the truth? (2) Is it fair to all concerned? (3) Will it build goodwill and better friendships? (4) Will it be beneficial to all concerned?"

answer

Code of ethics.

question

The Code of Ethics for members of the Society of American Foresters instructs them to protect and serve society by inspiring, guiding, and governing members in the conduct of their professional lives. In addition, the society's code of ethics should ____.

answer

Include standards and procedures specific to the forestry industry.

question

Which of the following is an objective of ethics training?

answer

Achieve all of these.

question

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

answer

Official approval of the company's ethics code by government regulators.

question

The last step in the basic model of ethical decision making is to ____.

answer

Act.

question

After identifying the problem in the basic model of ethical decision making, the next step is to ____.

answer

Identify the constituents.

question

In May 2005, U.S. Attorney Michael J. Sullivan announced that the United States had settled civil claims arising out of a suit that alleged Oracle Corporation had violated the False Claims Act in connection with billing the federal government for software training services. The U.S. government learned about the overcharging from a former Oracle vice president. The vice president acted as a(n)

answer

Whistleblower.

question

Former Wal-Mart vice chairman Tom Coughlin allegedly engineered to defraud the company for personal gain. Operations vice president Jared Bowen asserted that information he provided to Wal-Mart spawned the investigation that led to the discovery of Coughlin's activities. Bowen is suing Wal-Mart because they fired him. His lawsuit is an example of ____.

answer

One of the problems of being a whistle blower.

question

The basic model of ethical decision making ____.

answer

Is not accurately described by any of these.

question

Back in 1995, Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver, became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like room to a "soft room" protected by drywall that you could punch a hole through. Graf eventually had to take his concerns to the media before the plutonium was stored once again in a safe location. Graf was a(n) ____.

answer

Whistleblower.

question

Why is it often difficult for an employee to assume the role of whistleblower?

answer

Because the employees is often the one punished.

question

Which of the following statements about whistleblowing is true?

answer

All of these statements about whistleblowing are true.

question

Historically, ____ responsibility means making a profit by producing a product valued by society. It has been the most basic social responsibility of a business.

answer

Economic.

question

What is social responsibility?

answer

A business' obligation to pursue policies, make decisions, and take actions that benefit society.

question

Kowalski's Markets expanded in 2002 by purchasing four existing stores. One of the stores was located in Minneapolis' Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had a(n) ____ to provide a neighborhood grocery store to that community.

answer

Social responsibility.

question

In an article about BP Amoco, its CEO said that the company's commitment to ____ is all about trying to align its policies, values, and behavior with those of the societies in which it operates because, ultimately, superior performance means being in touch.

answer

Social responsibility.

question

Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all international manufacturers of rubber chemicals. They have all been indicted as participants in a price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. They would be most likely to use the ____ model to justify their actions.

answer

Shareholder.

question

The ____ model holds that as long as a company is operating legally its only social responsibility is to maximize profits.

answer

Shareholder.

question

According to Milton Friedman, which of the following is a position opposing the stakeholder model of corporate social responsibility?

answer

The time, money, and attention diverted to social causes undermine market efficiency.

question

Various persons or groups with a legitimate interest in a company's actions are called ____.

answer

Stakeholders.

question

Which of the following is NOT an example of a stakeholder group that an organization must satisfy to assure long-term survival?

answer

The media.

question

In recent years Kowalski's Markets expanded by purchasing four existing stores. One of the stores was located in Minneapolis' Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had an obligation to provide a neighborhood grocery store to that community. Which of the following is an example of a primary stakeholder group for Kowalski's markets?

answer

Customers in the Camden neighborhood.

question

The two general categories of stakeholders are ____ stakeholders and ____ stakeholders.

answer

Primary; secondary.

question

____ stakeholders are groups, such as shareholders, employees, customers, suppliers, governments, and local communities, on which the organization depends for long-term survival.

answer

Primary.

question

When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, the Indian government immediately ordered Coke to stop production in its Indian bottling plant until further analysis could be done. The Indian government served as a(n) ____.

answer

Primary stakeholder.

question

According to the ____ model, management's most important responsibility is long-term survival (not just maximizing profits). Long-term survival, according to this model, is achieved by satisfying the interests of multiple corporate stakeholders.

answer

Stakeholder.

question

Which of the following is an example of a stakeholder group that an organization must satisfy to assure long-term survival?

answer

All of these.

question

According to the stakeholder model, which primary stakeholder group is theoretically most important to the company?

answer

All primary stakeholders are of equal importance.

question

Secondary stakeholders are important to a company because ____.

answer

They can affect public perceptions and opinions.

question

____ stakeholders are any groups that can influence or be influenced by the company and can affect public perceptions about its socially responsible behavior.

answer

Secondary.

question

Under the stakeholder model, ____ would be an example of a stakeholder group that does not engage in regular transactions with the company and is not critical to its long-term survival but can still affect public perceptions and opinions about the company's socially responsible behavior.

answer

The media.

question

Which of the following is a secondary stakeholder group?

answer

The media.

question

When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, they were acting in the role of ____.

answer

Secondary stakeholders.

question

Video Arts Inc., a Chicago-based business training company, is currently marketing The Grapevine, a 30-minute training video designed to teach companies how to deal with and prevent damaging gossip. Which of the following is an example of a secondary stakeholder group for Video Arts?

answer

Business magazines that run ads for the training video.

question

Shell's efforts to sink Brent Spar, an abandoned offshore oil-storage buoy, were derailed by Greenpeace in Germany, which mounted a well-orchestrated public relations blitz that caused Shell's gasoline sales to plunge by 50 percent at some German stations. This is an example of how ____ stakeholders can influence organizational strategy.

answer

Secondary.

question

A consumer advocacy group is critical of ads by the U.S. Postal Service (USPS) that claim its Priority Mail is a low-cost, two-day service while failing to disclose that first-class letters generally reach their destination just as quickly and for a tenth the cost. The consumer advocacy group wants the USPS to take ____ responsibility for its actions and do what is right.

answer

Ethical.

question

Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all international manufacturers of rubber chemicals. They have all been indicted as participants in a price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. These companies ignored their ____ responsibility to society.

answer

Legal.

question

____ are the expectations that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities.

answer

Discretionary responsibilities.

question

Companies are not considered unethical if they do not perform their ____ responsibilities.

answer

Discretionary.

question

In 2001, ramin wood was listed in Indonesia as an endangered species. (Ramin is used to make pool cues and picture frames.) Thus, the exporting of the wood must be regulated by the government. In spite of attempts to control the sale of ramin wood, the wood is still being carried across Indonesia's national borders and sold in Malaysia where government officials pretend the wood was legally acquired. Companies that buy the illegally-gotten wood in Malaysia are ignoring their ____ responsibility to society.

answer

Legal.

question

Which of the following statements about social responsibility is true?

answer

Economic and legal responsibilities play a larger role in a company's social responsibility.

question

Lever's most successful product in India is Fair & Lovely, a skin whitening agent that is sold to dark-skinned women in India to help them find a better husband and a better job. Lever is emphasizing its ____ responsibility to make a profit and ignoring its ____ responsibility to help women realize that their appearances are superficial.

answer

Economic; discretionary.

question

For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. But that wasn't enough for AIDS prevention groups, which were outraged by GSK's decision to use the World Trade Organization's (WTO's) patent protection rules to take action against governments importing lower-cost versions.AIDS prevention groups saw GSK's use of WTO regulation as acting at which level of social responsibility?

answer

Economic.

question

For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. By providing the drugs at a fraction of their usual costs, GSK was acting at which level of social responsibility?

answer

Discretionary.

question

When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, Coke responded by saying that all of India's water was contaminated and that it was not doing anything wrong by using the local water supply. What kind of a strategy did Coke use to respond to its social responsibility problems?

answer

Reactive strategy.

question

A U.S. metals broker advertises "95 percent of orders shipped from stock" even though the company has no warehouses and no inventory. When questioned about the truth of the ad, the broker responded, "We do ship 95 percent of our orders from stock, but it is from suppliers' stocks, not ours." To respond to this ethical question, the broker used a(n) ____ strategy.

answer

Reactive.

question

Bayer AG was indicted as a participant in an international price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. Bayer AG paid its fine but did not admit culpability. Instead, the company announced that paying the fine was less costly than litigation. Bayer AG implemented a(n) ____ strategy.

answer

Reactive.

question

The social responsiveness strategy that could be considered essentially a public relations approach is the ____ strategy.

answer

Defensive.

question

A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems.

answer

Accomodative.

question

A company implementing a(n) ____ strategy would demonstrate the greatest willingness on the part of the company to meet or exceed society's expectations.

answer

Proactive.

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