CHAPTER 5 True/False Questions

1. Legislators created a form of business called corporations to encourage people to engage in business activities.

2. The economic model of corporate social responsibility holds that businesses should integrate social goals and economic goals

3. The philanthropic model holds that business has a strict obligation to contribute to social causes.

4. Socially responsible activities are never done for building the reputation of a firm within the philanthropy model.

5. The social web model views business as a citizen of the society and, like all members of a society, business must conform to the normal ethical duties and obligations that we all face.

6. Stakeholder theory recognizes the fact that every business decision affects a wide variety of people, benefiting some and imposing costs on others

7. Stakeholder theory directly contradicts the social web model.

8. Stakeholder theory states that a firm should be managed for the sole benefit of stockholders.

9. The sustainability version of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

10. "Enlightened self-interest" presumes that good ethics is also good business

CHAPTER 2 Multiple Choice

11. The first step in making decisions that are ethically responsible is to
a. determine the facts.
b. consider the available alternatives.
c. monitor and learn from the outcomes.
d. identify and consider the impact of the decision on stakeholders.

12. Which of the following is the second step of the ethical decision-making process?
a. Considering available alternatives
b. Making the decision
c. Identifying the ethical issues involved
d. Considering the impact of the on stakeholders

13. Kathy, your best friend and class mate, tells you facts related to an ethical issue and asks you to help her with a challenging ethical predicament. Which of the following would be your first step in the decision making process?
a. Identifying the ethical issue she faces
b. Considering the available alternatives
c. Determining the facts of the situation
d. Making the decision

14. Which of the following terms refers to shortsightedness about values?
a. Inattentional blindness
b. Change blindness
c. Normative myopia
d. Descriptive ignorance

15. The inability to recognize ethical issues is known as _____.
a. inattentional blindness
b. normative myopia
c. change blindness
d. descriptive ignorance

16. Which of the following statements reflects the concept of normative myopia?
a. "I was so involved in our debate that I missed the red light."
b. "I never expected Draco to steal from me; he has been my friend for so long."
c. "Brad met with an accident because he was drunk while driving. I hope he has learnt his lesson."
d. "I may have exaggerated the features of the product to get this sale. You knew how important this deal was for me."

17. If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as _____.
a. inattentional blindness
b. descriptive ignorance
c. change blindness
d. normative myopia

18. The Arthur Andersen auditors did not notice how low Enron had fallen in terms of its unethical decisions over a period of time. According to Bazerman and Chugh, this omission is an example of ____.
a. inattentional blindness
b. descriptive ignorance
c. change blindness
d. normative myopia

19. Which of the following is true of change blindness?
a. It occurs when decision makers fail to notice gradual variations over time.
b. It refers to the shortsightedness about values.
c. It distinguishes good people who make ethically responsible decisions from good people who do not.
d. It results from focusing failures.

20. Jim resides in the vicinity of a steel manufacturing firm. Any changes in the pollution control or waste treatment policy of the firm indirectly affects Jim. In this sense, Jim is a(n) _____.
a. shareholder
b. employee of the firm
c. observer
d. stakeholder

CHAPTER 3 True/False Questions

21. A philosophical and reasoned ethics must provide justifications for why a human being should act and decide in a particular prescribed way.

22. Principle-based ethics direct us to consider the moral character of individuals and how various character traits can contribute to, or obstruct a happy and meaningful human life.

23. Utilitarianism has been called a consequentialist approach to ethics and social policy

24. Utilitarianism is a social philosophy that opposes policies that aim to benefit only a small social, economic, or political minority

25. The "administrative" version of utilitarianism considers competitive markets to be the most efficient means of maximizing happiness.

26. Utilitarians would not object to child labor as a matter of principle

27. A principle-based framework defines a set of rules that enforces us to act or decide in certain ways.

28. According to a principle-based ethical framework, social contract functions to organize and ease relations between individuals

29. The concept of a human or moral right is central to the utilitarian ethical tradition.

30. Employees have a right to a minimum wage, equal opportunity, and to bargain collectively as part of a union. These rights are examples of contractual agreements with employers.

CHAPTER 4 - Multiple Choice

31. Corporate culture
a. is fashioned by a shared pattern of beliefs, expectations, and meanings that influence and guide the thinking and behaviors of the members of that organization.
b. shapes the people who are members of the organization, but it is not shaped by the people who comprise that organization.
c. is not influenced by unspoken standards and expectations.
d. is generally easy to modify.

32. Which of the following situations could result in the business culture becoming a determining factor in ethical decision making?
a. Lack of competition
b. Law providing incomplete s
c. Lack of strong leadership
d. Stagnant or decreasing profits

33. Which of the following statements is true of ethical cultures?
a. Workplace ethical cultures have no impact on decision making.
b. Subordinates are expected not to act unless directed by superior authorities.
c. Decisions are expected to be taken based on laws and not on ethical values.
d. Employees are expected to act in responsible ways, even if the law does not require it.

34. According to the _____ ethics tradition, people act out of habit than out of deliberations.
a. Kantian
b. virtue
c. utilitarian
d. principle-based

35. Which of the following is a traditional approach to corporate culture?
a. Values-based
b. Integrity-based
c. Customer-based
d. Compliance-based

36. Which of the following is emphasized by a compliance-based culture?
a. Reliance on personal integrity of employees for decision making
b. Use of values as the principle for decision making
c. Obedience to rules as the primary responsibility of ethics
d. Reinforcement of a set of values rather than a set of rules

37. Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes?
a. Customer-based culture
b. Integrity-based culture
c. Values-based culture
d. Compliance-based culture

38. Which of the following is true about an integrity-based culture?
a. It reinforces a particular set of rules.
b. It reinforces a particular set of values.
c. It empowers legal bodies to monitor compliance.
d. It emphasizes rules as the primary responsibility of ethics.

39. When would a values-based culture rely on the personal integrity of its workforce for making decisions?
a. In situations where the rules of the organization do not apply
b. When legal bodies are empowered to monitor compliance
c. In situations where rules are applicable to make decisions
d. In situations where a set of principles should be enforced

40. Which of the following is true about a compliance-based culture and/or a value-based culture?
a. A compliance-based culture recognizes that where a rule does not apply the firm must rely on the personal integrity of its workforce when decisions need to be made.
b. A values-based culture is one that reinforces a particular set of rules rather than a particular set of values.
c. Values-based organizations include a compliance structure.
d. Value-based organizations do not have codes of conduct.