Chapter 5--Managing Ethics and Social Responsibility

Chapter 5--Managing Ethics and Social ResponsibilityStudent: ___________________________________________________________________________1.Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or groups.TrueFalse2. Free choice lies between the domains of codified law and ethics.TrueFalse3.If something is ethical, it must not be illegal.TrueFalse4.Although public confidence in business managers is at an all-time low, politics, sports, and non-profit organizations have not been affected.TrueFalse5.Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models for others.TrueFalse6.An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.TrueFalse7.The moral agent is an individual who must make an ethical choice in an organization.TrueFalse8.The virtue ethics approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.TrueFalse9.Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.TrueFalse10.The virtue ethics approach to ethical decision making says that moral behavior stems from personal virtues.TrueFalse11.Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-making.TrueFalse12.The basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco consumption on the job is called the utilitarian ethic.TrueFalse13.Monitoring the Internet to maintain the company's ethical climate and workplace productivity could be considered part of an individualistic approach.TrueFalse14.The ethical concept that acts are moral when they promote the individual's best long term interests, which ultimately leads to the greater good, is known as the moral rights approach.TrueFalse15.The ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people is objective dualism.TrueFalse16.Individualism is popular in the highly organized society of today because it supports immediate self-gain.TrueFalse17.The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be considered in the moral rights approach.TrueFalse18.Compensatory justice argues that an employees compensation should be based on individual performance.TrueFalse19.Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.TrueFalse20.Level 3 of the Personal Moral Development model is Conventional.TrueFalse21.The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and fulfills duties and obligations of the social system.TrueFalse22.Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.TrueFalse

Individuals are concerned with external rewards and punishments at the principled level.TrueFalse

An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law.TrueFalse

The great majority of managers operate at level two, the conventional level.TrueFalse

Principled level of moral development is also referred to as the postconventional level.TrueFalse

The majority of managers operate at the preconventional level of personal moral development.TrueFalse

Approximately 20% of American adults, according to your text, never reach the postconventional level of moral development.TrueFalse

Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.TrueFalse

Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.TrueFalse

Important stakeholders in corporations include the government and the community.TrueFalse

A stakeholder is any group within or outside the organization that has a stake in the organization's performance.TrueFalse

All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.TrueFalse

Special interest groups include trade associations, political action committees and consumerists.TrueFalse

Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.TrueFalse

Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be used to evaluate corporate social performance.TrueFalse

Economic responsibility, carried to the extreme, is called the profit-maximizing view.TrueFalse

Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.TrueFalse

Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests.TrueFalse

Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.TrueFalse

Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.TrueFalse

A formal statement of the organization's values regarding moral principles and governing its response to social values is called a code of ethics.TrueFalse

Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.TrueFalse

Policy-based statements generally outline the procedure to be used in specific ethical situations.TrueFalse

One of the newest positions in organizations is the chief operating officer, a response to widespread financial wrongdoing in recent years.TrueFalse

A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.TrueFalse

Ethics training programs are not an important supplement as long as a well-written code of ethics exists.TrueFalse

The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle-blowing.TrueFalse

Managers are often concerned good citizenship will hurt performance.TrueFalse

Managers who are essentially ethical individuals make up the first pillar of an ethical organization.TrueFalse

Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong?A.Social responsibilityB.Free domainC.EthicsD.Codified lawE.Discretionary responsibility

Individualism is most closely related to:A.social responsibility.B.free choice.C.economic responsibility.D.codified law.E.togetherness.

An organization's decision to produce a new product is in the:A.domain of codified law.B.domain of free choice.C.domain of ethics.D.domain of compensatory justice.E.domain of social responsibility.

A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text?A.The ethical domainB.The domain of free choiceC.The legal domainD.The obstructive categoryE.The protective domain

The assumption that "If it's not illegal, it must be ethical," ignores which of the following?A.Domain of codified lawB.Domain of ethicsC.Domain of free choiceD.Discretionary responsibilityE.Domain of symbolism

The decision by ABC International to downsize and reduce its labor force is in the:A.domain of codified law.B.domain of free choice.C.domain of ethics.D.social responsibility.E.none of these.

A recent poll found that _____ percent of people surveyed say corporate Americas moral compass is pointing in the wrong direction.A.10B.29C.52D.76E.98

A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered:A.a moral agent.B.a social responsibility.C.an ethical dilemma.D.an ethical standard.E.discretionary responsibility.

Which of the following is a(n) is the individual who must make an ethical choice in an organization?A.The symbolic leaderB.An obstructive managerC.The defensive individualD.The moral agentE.An authoritarian manager

Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a $71,000 pay increase just months before she laid off 42 employees. Chinodas decision lies in the:A.domain of codified law.B.domain of free choice.C.domain of ethics.D.domain of social responsibility.E.none of these.

Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Sharon must decide whether or not to fire this employee. In this role, Sharon is acting as:A.a moral agent.B.an ethical theorist.C.a symbolic leader.D.an authoritarian leader.E.an obstructive manager.

A normative approach to ethical decision making:A.reduces ethical dilemmas to easy-to-understand formulas.B.uses various approaches to describe guiding values for decisions.C.states that everyone must use their employer's value system at work.D.dictates only one way to choose to resolve dilemmas.E.none of these.

Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number?A.DefensiveB.JusticeC.UtilitarianD.IndividualismE.Moral-rights

Robbie's Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the:A.utilitarian approach.B.individualism approach.C.moral-justice approach.D.justice approach.E.illegal approach.

Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the:A.utilitarian approach.B.individualism approach.C.moral-justice approach.D.justice approach.E.soft-line managerial approach.

Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job, such as alcohol and tobacco consumption?A.Justice approachB.Utilitarian approachC.Individualism approachD.Moral-justice approachE.Discretionary responsibility

The decision by Paula Reid, the manager who statted the U.S. Secret Service prostitution scandal in Catagena, was based largely on the _____ approachA.justiceB.moral-rightsC.obstructiveD.individualismE.practical

When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of the_____.A.utilitarian approachB.individualism approachC.moral-justice approachD.justice approachE.social responsibility

Which of the following is NOT a normative ethics approach?A.Utilitarian approachB.Individualism approachC.Social responsibility approachD.Moral-rights approachE.All of these are normative approaches as described in the text.

The golden rule "do unto others as they would do unto you" is:A.an example of the utilitarian approach to ethical behavior.B.representative of the moral-justice approach to moral decision making.C.an example of the values that guide the individualism approach to ethical behavior.D.silly and outdated.E.an example of the justice approach to ethical behavior.

Human beings have fundamental rights and liberties that cannot be taken away by another individual's decision. This ethical decision making approach is known as the:A.utilitarian approach.B.individualism approach.C.moral-rights approach.D.dualism approach.E.none of these.

The _____ refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them.A.individualism approachB.justice approachC.utilitarian approachD.moral-rights approachE.discretionary responsibility approach

Which of the following is NOT one of the moral rights that could be considered during decision-making?A.The right to free consent.B.The right to invade privacy.C.The right to free speech.D.The right of freedom of conscience.E.The right to life and safety.

_____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech.A.Moral-rights approachB.Individualism approachC.Utilitarian approachD.Justice approachE.Dual-economic approach

Sexual harassment is unethical because it violates an important part of which approach to ethical behavior?A.The utilitarian approachB.The individualism approachC.The justice approachD.The moral-rights approachE.The defensive approach

The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the:A.moral-rights approach.B.individualism approach.C.utilitarian approach.D.justice approach.E.discretionary responsibility.

The moral rights approach that deals with performing experimental treatment on unconscience trauma patient is the:A.right of free consent.B.right to privacy.C.right of freedom of conscience.D.right of free speech.E.right of due process.

Which of the following is not a concern to managers under the justice approach?A.Compensatory justiceB.Distributive justiceC.Procedural justiceD.Obstructive justiceE.All of these

_____ refers to the concept that different treatment of people should not be based on arbitrary characteristics.A.Procedural justiceB.Compensatory justiceC.Distributive justiceD.Organizational justiceE.Moral-justice

Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on:A.the procedural justice approach.B.the utilitarian approach.C.the individual approach.D.the defensive approach.E.the free-choice approach.

Which of these refers to procedural justice?A.The concept that different treatment of people should not be based on arbitrary characteristics.B.The concept that rules should be clearly stated and consistently and impartially enforced.C.The concept that individuals should be compensated for the cost of their injuries by the party responsible.D.The concept that people should be treated differently.E.None of these.

The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as:A.distributive justice.B.injury justice.C.procedural justice.D.organizational justice.E.compensatory justice.

The thinking underlying the domain of ____ is the closest to the justice approach.A.social responsibilityB.free choiceC.lawD.discretionary responsibilityE.ethics

Most of the laws guiding human resource management are based on the:A.utilitarian approach.B.moral-rights approach.C.individualism approach.D.justice approach.E.collectivism approach.

____ is NOT included in the model of personal moral development described in your text.A.Preconventional levelB.Conventional levelC.Principled levelD.Postconventional levelE.All of these are included in the model

In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action?A.PreconventionalB.ConventionalC.PrincipledD.DiscretionaryE.None of these

The _____ leadership style matches with the preconventional level of personal moral development.A.autocraticB.team orientedC.servant leadershipD.guiding/encouragingE.transforming

_____ matches with the preconventional level of personal moral development.A.Work group collaborationB.Task accomplishmentC.Empowered employeesD.Full participationE.Transforming

Which of these employee behaviors matches with the conventional level of personal moral development?A.Task accomplishmentB.Empowered employeesC.Work group collaborationD.Full participationE.Act in own interest

Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values?A.PreconventionalB.ConventionalC.PrincipledD.DiscretionaryE.Social

People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others:A.are in the preconventional level of moral development.B.are in the conventional level of moral development.C.are in the principled level of moral development.D.do not care what people think of them.E.none of these.

Which of these employee behaviors matches with the postconventional level of personal moral development?A.Empowered employees, full participationB.Task accomplishmentC.Act in own interestD.Work group collaborationE.Autocratic

Regarding the levels of personal moral development, the majority of managers operate at the _____ level.A.preconventionalB.autocraticC.postconventionalD.conventionalE.transformative

The great majority of managers operate at the:A.preconventional level.B.principled level.C.conventional level.D.postconventional level.E.autocratic level.

When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked is life to save men who were being picked off by land sharks. The Navy pilot was operating from the _____ level of moral development.A.preconventionalB.conventionalC.postconventionalD.lowestE.conservative

_____ matches with the postconventional level of personal moral development.A.Team orientedB.AutocraticC.Guiding/encouragingD.CoerciveE.Servant leadership

Only about _____ percent of American adults reach the level-three stage of moral development.A.twoB.fourC.elevenD.fifteenE.twenty

Which of these best illustrates the preconventional stage of moral development?A.Everybody else is doing it, so it must be okay.B.What would my boss think if I did this?C.I know this is not right, and I will not do it, even if everyone else is.D.What am I going to get from making this decision?E.All of these.

The conventional stage of moral development is best described by which of the following statements?A.I won't do that because the boss will be upset with me.B.Everybody else is doing it, so it must be okay.C.I know this is not right, and I will not do it, even if everyone else is.D.What am I going to get from making this decision?E.All of these.

Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development?A.PreconventionalB.ConventionalC.DiscretionaryD.PrincipledE.Traditional

Any group within or outside the organization that has a stake in the organization's performance is called:A.a supplier.B.an international customer.C.a stakeholder.D.OPEC.E.a trade association.

Primary stakeholders of an organization include:A.employees.B.customers.C.investors and shareholders.D.suppliers.E.all of these.

All of the following are examples of special interest groups except:A.professional associations.B.trade associations.C.political action committees.D.courts.E.consumerists.

What type of a stakeholder would a nature conservation group be for a paper manufacturing company?A.SupplierB.CompetitorC.EmployeeD.Special interest groupE.None of these

With a philosophy of _____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals.A.sustainabilityB.conservationC.ethicsD.preservationE.human concerns

_____ is economic development that generates wealth and meets the needs of their current generation while focusing on future generations.A.Ethical managementB.Activist strategyC.SustainabilityD.Market strategyE.Future management

Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources?A.PreservationB.ConservationC.EnvironmentalismD.ProtectionismE.Sustainability

The profit-maximizing view of economic responsibility is advocated by _____.A.Milton FriedmanB.Arthur AndersonC.Donald TrumpD.Warren BuffettE.Steve Jobs

According to the book's model for judging corporate social performance, social responsibility is divided into what into four sections?A.Ethical, legal, technical, and rationalB.Mandatory, technical, discretionary, and economicC.Legal, mandatory, economic, and ethicalD.Discretionary, legal, economic, and ethicalE.None of these

With respect to appropriate corporate behavior, what society deems _____ as important.A.ethical responsibilityB.discretionary responsibilityC.economic responsibilityD.legal responsibilityE.moral responsibility

_____ is considered a decision that enables an individual or company to benefit at society's expense.A.A legal behaviorB.An unethical behaviorC.An economic responsibilityD.A discretionary responsibilityE.A responsible behavior

Which of the following responsibilities is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics?A.EthicalB.EconomicC.LegalD.DiscretionaryE.Stakeholder

_____ is the responsibility that goes beyond societal expectations to contribute to the community welfare.A.Ethical responsibilityB.Discretionary responsibilityC.Economic responsibilityD.Legal responsibilityE.Technical responsibility

_____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.A.Ethical leadershipB.FollowershipC.Corporate espionageD.Command-and-control approachE.Concern for production leadership

A code of _____ is a formal statement of the company's values concerning ethics and social issues.A.integrityB.trustC.citizenshipD.ethicsE.honesty

Statements that define fundamental values and reference organizational responsibilities, products and employees are often called _____.A.principle-basedB.policy-basedC.ethically-basedD.codifiedE.codes of organizational integrity

_____ includes behavior that is not always written down and may actually not serve an organization's bottom-line.A.Legal responsibilityB.Economic responsibilityC.Ethical responsibilityD.Discretionary responsibilityE.None of these

Of the following, which may whistle-blowers suffer?A.Job lossB.Ostracism by coworkersC.Transfer to lower-level positionD.Hostile work environmentE.All of the above

MANAGER'S SHOPTALK in Chapter 5 addresses how todays companies are trying to teach sustainablility to new managers by placing them with which of the following types of organizations?A.small, entrepreneurial start-upsB.Nonprofits in developing countiresC.Government agencies in developed countriesD.Tech firms that are developing cutting edge productsE.Logistics companies that supply products worldwide

An example of an ethical structure is:A.chief ethics officer.B.a formal statement of company values.C.an equal opportunity policy.D.whistle-blowing.E.corporate speech.

When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as:A.a whistle-blower.B.a chief ethics officer.C.vice-president of human resource management.D.a yes-man.E.a political play.

Which of these is the disclosure by an employee of an illegal activity?A.TattlingB.Whistle-blowingC.Organizational communicationD.The filing of a disclosure statementE.Snooping

_____ is not part of the structures and systems pillar of an ethical organization.A.Corporate cultureB.Code of ethicsC.Ethics committeeD.Whistle-blowing mechanismsE.Rewarding ethical behavior

Examples of unethical behavior toward _____ include a hostile work environment and violations of health and safety rules.A.customersB.financiersC.societyD.suppliersE.employees

The relationship between social responsibility and financial performance has been shown to be _____.A.non-existentB.positiveC.negativeD.not importantE.a reflection of top leadership

Which of these is true about the policy a bank adopts toward its investing of depositor's money?A.It is an expression of its philosophy of social responsibility.B.It is important only to the community.C.It has no ethical implications.D.It would represent its personal state of moral development.E.All of these.

The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as:A.organizational responsibility.B.social responsibility.C.discretionary responsibility.D.economic responsibility.E.none of these.

Scenario - Larry Campbell

The pressure was on again. Larry Campbell, the Vice President at ToolTime Hardware, Inc., was receiving requests from men and women inside the firm and outside the firm, asking him to review the company's promotion policies. Of the 52 middle and high level executives, only three were women. The pressure was to review the policies that had led to this perceived imbalance and, if appropriate, take the steps necessary for correction.

The decision to recruit, hire, train and promote both men and women equally is based on the ethical approach of _____.a.utilitarian approach.b.individualism approach.c.moral rights approach.d.all of these provide the basis.e.none of these.

Scenario - Larry Campbell

The pressure was on again. Larry Campbell, the Vice President at ToolTime Hardware, Inc., was receiving requests from men and women inside the firm and outside the firm, asking him to review the company's promotion policies. Of the 52 middle and high level executives, only three were women. The pressure was to review the policies that had led to this perceived imbalance and, if appropriate, take the steps necessary for correction.

Using the justice approach for ethical decision-making, the logic of promoting qualified men and women would be supported by:a.equal rights justice.b.distributive justice.c.procedural justice.d.compensatory justice.e.all of these.

Scenario - Larry Campbell

The pressure was on again. Larry Campbell, the Vice President at ToolTime Hardware, Inc., was receiving requests from men and women inside the firm and outside the firm, asking him to review the company's promotion policies. Of the 52 middle and high level executives, only three were women. The pressure was to review the policies that had led to this perceived imbalance and, if appropriate, take the steps necessary for correction.

A(n) _______ would outline the procedures Larry should use in this and other ethical situations.a.principle-based statementb.code of ethicsc.corporate credod.policy-based statemente.ethics committee

_____ is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.________________________________________

When values and standards are written into the legal system, it is referred to as _____.________________________________________

A(n) _____ arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.________________________________________

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

The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as _____ approach.________________________________________

The _____ approach contends that acts are moral when they promote the individual's best long-term interests.________________________________________

The _____ approach assets that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision.________________________________________

The _____ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.________________________________________

_____ justice requires that different treatment of people not be based on arbitrary characteristics.________________________________________

_____ justice requires that rules should be clearly stated and consistently and impartially enforced.________________________________________

_____ justice argues that individuals should be compensated for the cost of their injuries by the party responsible.________________________________________

The _____ approach to ethical decision making says that moral behavior stems from personal virtues.________________________________________

The _____ approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.________________________________________

A decision to monitor employees nonwork activities violates the right to _____.________________________________________

At the _____ level of personal moral development, individuals are most concerned with external rewards and punishments.________________________________________

People learn to conform to the expectations of good behavior that are set by peers and society at the _____ level.________________________________________

Individuals at the _____ level are guided by an internal set of values and standards and will even disobey rules or laws that violate these principles.________________________________________

Most managers operate at the _____ level.________________________________________

Management's obligation to make choices that will contribute to the well being of both the organization and society is known as _____.________________________________________

A(n) _____ is any group within or outside the organization that has a stake in the organization's performance.________________________________________

Organizations that are _____ responsible consider the effects of their actions on all stakeholder groups and may invest in a number of philanthropic causes that benefit stakeholders.________________________________________

_____ refers to interacting with the community in which a company does business in a way that makes money for the company but also improves the long-term well-being of the community.________________________________________

The _____ approach to economic responsibility means that economic gain is the only social responsibility and can lead companies into trouble.________________________________________

When a company does just what is necessary to satisfy legal requirements, it falls under the _____ approach in shades of green.________________________________________

_____ responsibility is purely voluntary and guided by a company's desire to make social contributions not mandated by economics, law, or ethics.________________________________________

A(n) _____ is a formal statement of the company's values concerning ethics and social issues; it communicates to employees what the company stands for.________________________________________

_____ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws.________________________________________

A group of executives assigned to oversee the organization's ethics by ruling on questionable issues and disciplining violators is referred to as a(n) _____.________________________________________

_____ programs help employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior.________________________________________

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

The relationship between social responsibility and financial performance has been shown to be _____.________________________________________

List three of the six moral rights that should be considered during decision making.

List the four criteria for ethical decision-making described in the book.

List three examples of primary stakeholders.

List the four responsibilities of corporate social performance.

Define ethics and explain how the domain of ethics relates to law and free choice.

List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.

Briefly explain the justice approach to ethics and then explain the three types of justice.

List and define the stages of moral development.

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

Explain the concept of a stakeholder and list five common stakeholders.

List and define the criteria of corporate social responsibility.

Explain the differences between principle-based statements and policy-based statement in an organization's code of ethics.

Chapter 5--Managing Ethics and Social Responsibility Key1.TRUE2.FALSE3.FALSE4.FALSE5.TRUE6.TRUE7.TRUE8.FALSE9.FALSE10.TRUE11.FALSE12.TRUE13.FALSE14.FALSE15.FALSE16.FALSE17.TRUE18.FALSE19.TRUE20.FALSE21.FALSE22.TRUEFALSEFALSETRUETRUEFALSETRUETRUEFALSETRUETRUEFALSETRUETRUETRUETRUEFALSETRUEFALSEFALSETRUETRUETRUEFALSETRUEFALSETRUETRUETRUECBBABBDCDCABCAABEBCCCDBADDADCABECDEAABCCCADCCEEDBBCEDDACEADDBDBADACEBABBEEBABdbdEthicscodified lawethical dilemmamoral agentutilitarianindividualismmoral-rightsormoral rightsjusticeDistributiveProceduralCompensatoryvirtue ethicspracticalprivacypreconventionalconventionalpostconventional principledconventionalorsecondsocial responsibilitystakeholdersociallysocial sustainabilityprofit-maximizinglegalDiscretionarycode of ethicsPolicy-based statementsethics committeeEthics trainingwhistle-blowingpositiveStudents can list any three of the following: the right of free consent, the right to privacy, the right of freedom of conscience, the right of free speech, the right to due process, and the right to life and safety.Utilitarianism, individualism, moral-rights, and justice.Investors, shareholders, employees, customers, and suppliers are all examples of primary stakeholders.economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibilityEthics is the code of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong. In Codified Law, the values and standards are written into the legal system and enforceable in the courts. In free choice, the law has no say and the individual or group has complete freedom. The domain of ethics is found between Codified Law and free choice. While written laws do not bind ethics, still there are standards of conduct based upon shared principles and values.Utilitarian approach is the ethical concept that moral behaviors produce the greatest good for the greatest number.

Individualism approach is the ethical concept that acts are moral when they promote the individual's best long-term interests. This will eventually lead to the greatest good.

Moral-rights approach is the ethical concept that moral decisions are those that best maintain the rights of those people affected by them.

Justice approach is the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality.The justice approach is the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality. Distributive justice requires that different treatment of people be based only on substantive differences and not be based on arbitrary characteristics. Procedural justice requires that all rules be administered fairly. Rules should be clearly stated and consistently enforced. Compensatory justice requires that individuals should be compensated for the cost of their injuries by the party responsible and that individuals not be held responsible for matters over which they have no control.According to the model in the book, there are three stages of moral development. During the preconventional stage (level 1), individuals are mostly concerned with external rewards and punishments. They obey authority in order to avoid punishment. Individuals conforming to the expectations of others characterize the second level, the conventional stage. Fulfilling social and interpersonal obligations is important. At the postconventional/principled stage (level 3), an individual's behavior is directed by an internal set of values and beliefs. These values are more important than the expectations of others.Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.

It can be a difficult concept to grasp because different people have different beliefs as to what will improve society's well being and it covers a range of ambiguous issues with respect to right or wrong.A stakeholder is any individual or group of people, inside the organization or outside the organization, that has a stake or direct interest in that organization's performance. Stakeholders inside the organization include the employees, the managers, and the stockholders. Stakeholders outside the organization include customers, suppliers, regulatory agencies, and creditors.There are four criteria of corporate social responsibility. The first criterion of social responsibility is economic responsibility. The organization's basic responsibilities are to produce the goods and provide the services that society wants, while at the same time maximizing profits and wealth for owners and stockholders. The second criterion is legal responsibilities. Through its laws, each society has defined what it considers to be appropriate corporate behavior. According to this criterion, businesses are expected to fulfill their economic goals within the law. Ethical responsibilities make up the third criterion. These include behaviors not necessarily codified into law, nor do they necessarily serve the organization's direct economic interests. Discretionary responsibilities, the fourth criterion, are entirely voluntary and are guided by the organization's desire to make a social contribution not mandated by economics, law, and/or ethics.Principle-based statement are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. General statements of principle are often called corporate credos. Policy-based statements generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.