Chapter 5
Ethics and
Social Responsibility
True/False Questions
1.Timberland’s focus on philanthropy costs the company more than $2 million in sales each year.
Answer: TrueLevel: 2Page: 155Type: F
2.Enron, in mid-2000 was America’s 7th largest corporation.
Answer: TrueLevel: 2Page: 156Type: F
3.Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or groups.
Answer: True Level: 1 Page: 156 Type: F
4.Free choice lies between the domains of codified law and ethics.
Answer: False Level: 2 Page: 157 Type: F
5.If something is not illegal, it must be ethical.
Answer: False Level: 1 Page: 157 Type: F
6.An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.
Answer: True Level: 2 Page: 157 Type: F
7.An individual who must make an ethical choice in an organization is called the moral agent.
Answer: True Level: 1 Page: 157 Type: F
8.Most ethical dilemmas involve a conflict between the needs of the part and the whole.
Answer: TrueLevel: 2Page: 159Type: F
9.Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-making.
Answer: False Level: 2 Page: 159 Type: F
10.Objective dualism is the ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people.
Answer: False Level: 2 Page: 159 Type: F
11.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.
Answer: TrueLevel: 2Page: 159Type: F
12.Monitoring the Internet to maintain the company’s ethical climate and workplace productivity could be considered part of an individualistic approach.
Answer: FalseLevel:2Page: 159Type: F
13.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.
Answer: False Level: 1 Page: 159 Type: F
14.In the individualism approach, the right of free speech must be considered.
Answer: False Level: 2 Page: 160 Type: F
15.Individualism is popular in the highly organized society of today because it supports immediate self-gain.
Answer: False Level: 3 Page: 160 Type: F
16.Rights that should be considered in the moral rights approach include the right of free consent, the right to privacy, and the right of freedom of conscience.
Answer: True Level: 2 Page: 160 Type: F
17.Procedural justice requires that different treatment of people not be based on arbitrary characteristics.
Answer: FalseLevel: 1Page: 160Type: F
18.The justice approach is closest to the thinking underlying the domain of free choice.
Answer: FalseLevel: 2Page: 161Type: F
19.Most of the laws guiding human resource management are based on the individualism approach.
Answer: FalseLevel: 3Page: 161Type: F
20.Individuals, at the preconvention level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.
Answer: True Level: 2 Page: 161 Type: F
21.At the principled level, individuals are concerned with external rewards and punishments.
Answer: FalseLevel: 1Page: 161Type: F
22.The concept that individuals should be compensated for the cost of their injuries by the party responsible, and also that individuals should not be held responsible for matters over which they have no control, is considered procedural justice.
Answer: TrueLevel:1Page: 161Type: F
23.An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law.
Answer: FalseLevel:2Page: 161Type: F
24.Principled level of moral development is also referred to as the postconventional level.
Answer: True Level: 1 Page: 161 Type: F
25.The majority of managers operate at the preconventional level of personal moral development.
Answer: FalseLevel:2Page: 162Type: F
26.According to your text, approximately 20% of American adults ever reach the postconventional level of moral development.
Answer: TrueLevel: 3Page: 162Type: F
27.The great majority of managers operate at level two, the conventional level.
Answer: TrueLevel: 2Page: 162Type: F
28.Women's sense of integrity seems to be entwined with an ethic of care; hence, they may be ideally suited for the servant leadership needed in today's organizations.
Answer: True Level: 2 Page: 163-164 Type: F
29.The only aspect of an organization that influences ethics is culture.
Answer: False Level: 2 Page: 165 Type: F
30.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.
Answer: True Level: 1 Page: 166 Type: F
31.A stakeholder is any group within or outside the organization that has a stake in the organization's performance.
Answer: True Level: 1 Page: 166 Type: F
32.All stockholders of an organization are its stakeholders but not all stakeholders are its stockholders.
Answer: True Level: 3 Page: 167 Type: F
33.Special interest groups include trade associations, political action committees and consumerists.
Answer: TrueLevel: 1Page: 167Type: F
34.Important stakeholders in corporations include the government and the community.
Answer: TrueLevel:1Page: 167Type: F
35.When Earth Day was first celebrated in 1980, environmentalists were considered by most business leaders to be an extremist fringe group.
Answer: FalseLevel:2Page: 169Type: F
36.Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility can evaluate corporate social performance.
Answer: True Level: 2 Page: 171 Type: F
37.Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.
Answer: FalseLevel: 1Page: 172Type: F
38.A formal statement of the organization's values regarding moral principles and governing its response to social values is called a code of ethics.
Answer: True Level: 1 Page: 176 Type: F
Multiple Choice Questions
1.______refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong.
a.Social responsibility
b.Free domain
c.Ethics
d.Codified law
e.Discretionary responsibility
Answer: c Level: 1 Page: 156 Type: F
2.Ethics deals with values that are a part of corporate culture and shapes decisions concerning social responsibility with respect to the environment.
a.internal/external
b.external/external
c.internal/internal
d.external/internal
e.none of the above
Answer: a Level: 2 Page: 156 Type: F
3.The decision to produce a new product by Osh Kosh 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.
Answer: b Level: 2 Page: 157 Type: A
4.The decision by the CSX 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 the above.
Answer: b Level: 2 Page: 157 Type: A
5.In the domain of ethical behavior, obedience is to
a.enforceable norms and standards.
b.oneself.
c.laws prescribed by the legal system.
d.unenforceable norms and standards.
e.the organization.
Answer: d Level: 2 Page: 157 Type: F
6.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 domain
b.The domain of free choice
c.The legal domain
d.The obstructive category
e.The protective domain
Answer: a Level: 3 Page: 157 Type: A
7.A(n) ______is the individual who must make an ethical choice in an organization
a.the symbolic leader
b.an obstructive manager
c.the defensive individual
d.the moral agent
e.an authoritarian manager
Answer: dLevel: 1Page: 157Type: F
8.Carol 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. Carol must decide whether or not to fire this employee. In this role, Carol is acting as
a.a moral agent.
b.an ethical theorist.
c.a symbolic leader.
d.an authoritarian leader.
e.an obstructive manager.
Answer: a Level: 2 Page: 157 Type: A
9.The assumption that "If it's not illegal, it must be ethical," ignores which of the following?
a.Domain of codified law
b.Domain of ethics
c.Domain of free choice
d.Discretionary responsibility
e.Domain of symbolism
Answer: b Level: 2 Page: 157 Type: F
10.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.
Answer: c Level: 2 Page: 157 Type: F
11.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 the above.
Answer: b Level: 2 Page: 159 Type: F
12.The approach is the ethical concept that moral behaviors produce the greatest good for the greatest number.
a.defensive
b.justice
c.utilitarian
d.individualism
e.moral-rights
Answer: cLevel: 1Page: 159Type: F
13.Ritchie’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.
Answer: a Level: 3 Page: 159 Type: A
14.Grant 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.
Answer: a Level: 2 Page: 159 Type: A
15.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 approach
b.Utilitarian approach
c.Individualism approach
d.Moral-justice approach
e.Discretionary responsibility
Answer: b Level: 2 Page: 159 Type: F
16.The ethic was the basis for the state of Oregon's decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures.
a.justice
b.moral-rights
c.obstructive
d.individualism
e.utilitarian
Answer: eLevel: 2Page: 159Type: F
17.An example of ______is 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.
a.utilitarian approach
b.individualism approach
c.moral-justice approach
d.justice approach
e.social responsibility
Answer: b Level: 2 Page: 159-160 Type: F
18.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.
Answer: c Level: 2 Page: 160 Type: F
19.______is NOT a normative ethics approach?
a.Utilitarian approach
b.Individualism approach
c.Social responsibility approach
d.Moral-rights approach
e.All of the above are normative approaches as described in the text.
Answer: c Level: 2 Page: 159-160 Type: F
20.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 the above.
Answer: c Level: 2 Page: 160 Type: F
21.Which of these refers to the ethical concept that moral decisions are those that best
maintain the rights of those people affected by them?
a.Individualism approach
b.Justice approach
c.Utilitarian approach
d.Moral-rights approach
e.Discretionary responsibility approach
Answer: d Level: 1 Page: 160 Type: F
22.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
Answer: b Level: 2 Page: 160 Type: F
23.The concept that different treatment of people should not be based on arbitrary characteristics is referred to as
a.procedural justice.
b.compensatory justice.
c.distributive justice.
d.organizational justice.
e.moral-justice.
Answer: c Level: 1 Page: 160 Type: F
24.Individualism is most closely related to
a.social responsibility.
b.free choice.
c.economic responsibility.
d.codified law.
e.togetherness.
Answer: b Level: 2 Page: 160 Type: F
25.Which approach to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech?
a.Moral-rights approach
b.Individualism approach
c.Utilitarian approach
d.Justice approach
e.Dual-economic approach
Answer: a Level: 2 Page: 160 Type: F
26.Sexual harassment is unethical because it violates an important part of which approach to ethical behavior?
a.The utilitarian approach
b.The individualism approach
c.The justice approach
d.The moral-rights approach
e.The defensive approach
Answer: d Level: 3 Page: 160 Type: F
27.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
Answer: d Level: 1 Page: 160 Type: F
28.The moral rights approach that deals with individuals refraining from carrying out any order that violates their moral or religious norms is the
- right of free consent.
- right to privacy.
- right of freedom of conscience.
- right of free speech.
- right of due process.
Answer: cLevel:2Page: 160Type: F
29.Sexual harassment is unethical because it violates the
- right of free consent.
- right to privacy.
- right of freedom of conscience.
- right of free speech.
- right of due process.
Answer: cLevel:2Page: 160Type: F
30.All of these are of concern to managers, under the justice approach, EXCEPT
a.compensatory justice.
b.distributive justice.
c.procedural justice.
d.obstructive justice.
e.all of the above.
Answer: dLevel: 1Page: 160-161Type: F
31.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.
Answer: a Level: 2 Page: 161 Type: A
32.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 the above
Answer: b Level: 1 Page: 161 Type: F
33.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.
Answer: e Level: 1 Page: 161 Type: F
34.The thinking underlying the domain of is the closest to the justice approach.
a.social responsibility
b.free choice
c.law
d.discretionary responsibility
e.ethics
Answer: c Level: 2 Page: 161 Type: F
35.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.
Answer: d Level: 3 Page: 161 Type: F
36.Which of these is true about the ethical decisions made by individuals working in organizations?
a.They are based only on the individual's integrity.
b.They are influenced by a combination of personal values and company culture.
c.They utilize only that individual's personal needs and family influences.
d.They are made by evaluating the organization's best interest.
e.They are dictated by law.
Answer: b Level: 2 Page: 161 Type: F
37.In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action?
a.Preconventional
b.Conventional
c.Principled
d.Discretionary
e.None of the above
Answer: a Level: 2 Page: 161 Type: F
38.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.Preconventional
b.Conventional
c.Discretionary
d.Principled
e.Traditional
Answer: b Level: 2 Page: 161 Type: F
39.The preconventional stage of moral development is best illustrated by which of these?
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 the above
Answer: d Level: 3 Page: 161 Type: A
40.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 the above
Answer: b Level: 2 Page: 161 Type: A
41.The ______leadership style matches with the preconventional level of personal moral development.
a.autocratic
b.team oriented
c.servant leadership
d.guiding/encouraging
e.transforming
Answer: aLevel: 3Page: 161Type: F
42. leadership style matches with the conventional level of personal moral development.
a.Autocratic
b.Coercive
c.Transforming
d.Team oriented
e.Servant
Answer: d Level: 3 Page: 161 Type: F
43.Which of the following employee behaviors matches with the preconventional level of personal moral development?
a.Work group collaboration
b.Task accomplishment
c.Empowered employees
d.Full participation
e.Transforming
Answer: b Level: 3 Page: 161 Type: F
44.Which of these employee behaviors matches with the conventional level of personal moral development?
a.Task accomplishment
b.Empowered employees
c.Work group collaboration
d.Full participation
e.Act in own interest
Answer: cLevel: 3Page: 161Type: F
45.Which of the following is NOT included in the model of personal moral development described in your text?
a.Preconventional level
b.Conventional level