Chapter 4: Managing Ethics and Social Responsibility

Question 1

the code of moral principles and values that govern the behaviors of right or wrong; set standards as to what is good or bad in conduct and decision making.

Answer 1

ethics

Question 2

T or F: An ethical issue is present in a situation when the actions of a person or organization may harm or benefit others.

Answer 2

True

Question 3

What are the three domains of human action?

Answer 3

1. Domain of Codified Law
2. Domain of Ethics
3. Domain of Free Choice

Question 4

The Domain of Codified Law covers _______ ________ and has (high/middle/low) explicit control.

Answer 4

legal standards; high

Question 5

The Domain of Ethics covers _______ _______ and has (high/middle/low) explicit control.

Answer 5

social standards; middle

Question 6

Which domain of human actions has no specific laws, but has standards of conducts based on shared principles/values?

Answer 6

Domain of Ethics

Question 7

The Domain of Free Choice covers ________ ________ and has (high/middle/low) explicit control.

Answer 7

personal standards; low

Question 8

An organization’s choice of which of two well qualified suppliers to use is in the domain of:

Answer 8

free choice

Question 9

More than ____% of people agree that corporate America’s moral compass is “pointing in the wrong direction”.

Answer 9

75%

Question 10

Managers and organizations engage in unethical behavior for any number of reasons including an overemphasis on pleasing _________.

Answer 10

shareholders

Question 11

What are the 4 types of Ethical Manager Behavior?

Answer 11

1. Displays honesty and integrity
2. Communicates/enforces ethical standards through behavior
3. Fair in decisions and distributions of rewards
4. Shows kindness, compassion, and concern for the needs and feelings of others

Question 12

T or F: The question of whether it is ethical and socially responsible for managers to earn huge sums of money compared to other employees is of growing concern.

Answer 12

True

Question 13

Research has generally found a positive relationship between ethical and socially responsible ________ and a firm’s ________ performance.

Answer 13

behavior; financial

Question 14

People prefer to work for companies that demonstrate a high level of ______ and _______ ___________.

Answer 14

ethics; social responsibility

Question 15

arises in a situation concerning right or wrong when values are in conflict. (right and wrong can’t be clearly distinguished)

Answer 15

ethical dilemma

Question 16

The individual who must make an ethical choice in an organization

Answer 16

moral agent

Question 17

What are the 5 frameworks for ethical decision making?

Answer 17

1. Utilitarian approach
2. Individualism approach
3. Moral rights approach
4. Justice approach
5. Practical approach

Question 18

What framework for ethical decision making does this describe?
contends that acts are moral when they promote the individual’s best long-term interests.

Answer 18

Individualism approach

Question 19

What framework for ethical decision making does this describe?
holds that moral behavior produces the greatest good for the greatest number

Answer 19

Utilitarian approach

Question 20

What framework for ethical decision making does this describe?
sidesteps debates about what’s right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Answer 20

Practical approach

Question 21

What framework for ethical decision making does this describe?
asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.

Answer 21

Moral rights approach

Question 22

What framework for ethical decision making does this describe?
holds that moral decisions must be based on standards of equity, fairness, and impartiality.

Answer 22

Justice approach

Question 23

What are the 3 types of justice in the justice approach?

Answer 23

1. Procedural justice
2. Distributive justice
3. Compensatory justice

Question 24

What type of justice does this describe?
argues that individuals should be compensated for the cost of their injuries by the party responsible.

Answer 24

compensatory justice

Question 25

What type of justice does this describe? requires that different treatment of people not be based on arbitrary characteristics. (ex: short vs. tall; blonde vs. brown haired)

Answer 25

distributive justice

Question 26

What type of justice does this describe? requires that rules be administered fairly.

Answer 26

procedural justice

Question 27

A decision to monitor employees’ nonwork activities violates the right to privacy. The right of free speech would support whistle-blowers who call attention to illegal or inappropriate actions within a company. These are examples of the ___________ approach.

Answer 27

moral rights

Question 28

Lying and cheating for immediate self-interest just causes business associates to lie and cheat in return. Thus, proponents say, _______ ultimately leads to behavior toward others that fits standards of behavior that people want toward themselves.

Answer 28

individualism approach

Question 29

Men and women should not receive different salaries if they have the same qualifications and are performing the same job. This is an example of ________ justice.

Answer 29

distributive

Question 30

When a manager makes decisions on how to allocate annual raises he/she should utilize ___________ justice to ensure fairness.

Answer 30

procedural

Question 31

What are Kohlberg's Levels of Moral Development?

Answer 31

1. Pre-conventional 2. Conventional 3. Post-conventional

Question 32

What are the 2 stages of the Pre-conventional level of moral development?

Answer 32

1. Obedience and Punishment 2. Individualism and Exchange (when children take actions to meet their needs)

Question 33

T or F: Children are usually in the post-conventional level of moral development.

Answer 33

False; PRE-conventional

Question 34

What are the 2 stages of the Conventional level of moral development?

Answer 34

1. Interpersonal Relationships (people worry about how others perceive them) 2. Maintaining Social Order (people take actions that benefit society)

Question 35

First, a manager wants to be liked by her employees, so she lets them leave early. But, later she asks the group to work the same hours as the CEO for the good of the group. This exemplifies which level of moral development?

Answer 35

Conventional

Question 36

What are the 2 stages of the Post-conventional level of moral development?

Answer 36

1. Social Contracts and Individual Rights (understanding that everyone's values differ; they believe it’s good to have laws, but since individuals differ, the laws must differ too) 2. Universal Principles (people follow what they know is right, regardless of the rules)

Question 37

In what level of moral development do people act in their own self-interest, and have obedience for their own sake?

Answer 37

Preconventional

Question 38

Preconventional Level: 1. Leader style? 2. Employee behavior?

Answer 38

1. autocratic/coercive 2. task accomplishment

Question 39

In what level of moral development do people learn to conform to the expectations of good behavior as defined by others, fulfills duties and obligations of social system, and upholds laws?

Answer 39

Conventional

Question 40

T or F: Most managers operate at the post-conventional level.

Answer 40

False; CONVENTIONAL level

Question 41

Conventional: 1. Leader Style? 2. Employee behavior?

Answer 41

1. Guiding/encouraging, team oriented 2. work-group collaboration

Question 42

In what level of moral development are people guided by an internal set of values based on universal principles, people are aware that people hold different values and seek creative solutions to ethical dilemmas, and balances concern for individuals with concern for common good?

Answer 42

Pre-conventional

Question 43

Post-conventional: 1. Leader style? 2. Employee behavior?

Answer 43

1. Transforming, or servant leadership 2. Empowered employees/ full participation

Question 44

When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked his life to save men who were being picked off by sharks. The Navy pilot was operating from the __________ level of moral development.

Answer 44

post-conventional

Question 45

management’s obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization.

Answer 45

corporate social responsibility (CSR)

Question 46

Can be difficult to understand and apply CSR because managers must confront the question:

Answer 46

“Responsibility to whom?”

Question 47

any group or person within or outside the organization that has some type of investment or interest in the organization’s performance and is affected by the organization’s actions.

Answer 47

stakeholders

Question 48

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.

Answer 48

stakeholder mapping

Question 49

following organizational policies and practices that both enhance the economic and social conditions of the communities in which the company operates

Answer 49

conscious capitalism

Question 50

the ability to generate wealth without compromising environmental responsibility and social stewardship.

Answer 50

sustainability

Question 51

measuring an organization’s social performance, environmental performance, and its financial performance.

Answer 51

triple-bottom line

Question 52

What are the Three P's of the Triple Bottom Line?

Answer 52

1. People (social) 2. Planet (environmental) 3. Profit (financial)

Question 53

honest and trustworthy, fair in dealings with employees and customers, and ethical in both personal and professional lives.

Answer 53

ethical leadership

Question 54

What are the 7 Steps in Building an Ethical Organization?

Answer 54

1. Ethical Leadership 2. Code of Ethics 3. Ethics Committee 4. Chief Ethics Officer 5. Ethics Hotline 6. Ethics Training 7. Support for Whistle-Blowers

Question 55

formal statement of a company’s values concerning ethics and social issues; communicates to employees what the company stands for

Answer 55

code of ethics

Question 56

What type of statements are designed to affect corporate culture?

Answer 56

Principle-based statements

Question 57

What type of statements generally outline the procedures to be used in specific ethical situations?

Answer 57

Policy-based statements

Question 58

group of executives (and sometimes lower-level employees as well) appointed to oversee company ethics

Answer 58

ethics committee

Question 59

company executive who oversees all aspects of ethics and legal compliance

Answer 59

chief ethics officer

Question 60

employee disclosure of illegal, unethical, or illegitimate practices on the employer’s part

Answer 60

whistle-blowing

Question 61

because __________ is easily misinterpreted to support immediate self-gain, it is not popular in the highly organized and group-oriented society of today.

Answer 61

individualism approach

Question 62

Which framework for ethical decision making does this describe? A decision would be considered ethical if it is one that would be considered acceptable by the professional community, one that the manager would not hesitate to publicize on the evening news, and one that a person would typically feel comfortable explaining to family and friends.

Answer 62

practical approach

Question 63

T or F: CSR can be a difficult concept to grasp because different people have different beliefs as to which actions improve society’s welfare.

Answer 63

True

Question 64

A for-profit organization that has a stated purpose of creating a positive impact on society; is required to consider the impact of decisions on all stakeholders; and voluntarily holds itself to high standards of accountability and transparency.

Answer 64

benefit corporation

Question 65

Efforts to portray a company as being more environmentally minded that it actually is.

Answer 65

greenwashing