Business And Society Ethics And Stakeholder Management 1st Canadian Edition by Len Karakowsky -Test Bank

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Business And Society Ethics And Stakeholder Management 1st Canadian Edition by Len Karakowsky -Test Bank

Chapter 6—Business Ethics Fundamentals

 

TRUE/FALSE

 

  1. Even large, successful firms such as IBM, Nortel and AT&T have been found guilty of unethical behavior.

 

ANS:  T

 

  1. In recent surveys, a majority of the public rated the honesty and ethical standards of business executives as “high” or “very high.”

 

ANS:  F

 

  1. Fortunately, there is a scientific way to determine that business ethics has actually deteriorated in our society.

 

ANS:  F

 

  1. The media’s reporting of ethical problems in business has not increased in the past three decades.

 

ANS:  F

 

  1. Observers believe that problems with business ethics occur because businesses are changing while society remains the same.

 

ANS:  F

 

  1. Normative business ethics seeks to describe the morality of a people, a culture, or a society.

 

ANS:  F

 

  1. Canadian business has remained unscathed by recent business scandals reported in North America.

 

ANS:  F

 

  1. Individual managers’ established norms are the only standards that should be considered in making ethical business decisions.

 

ANS:  F

 

  1. The law can be viewed as a set of minimal standards of conduct and behavior.

 

ANS:  T

 

  1. The conventional approach to business ethics requires that we compare an act or decision with prevailing norms of acceptability.

 

ANS:  T

 

  1. In determining business ethics, the question “What ought to be?” is directly asking what the already-existing norms of the company are.

 

ANS:  F

 

  1. The ethical question “What ought to be?” represents goals toward which a company works.

 

ANS:  T

 

  1. Pragmatic businesspeople like to dwell on the motivation for being ethical because it gives them deep insights into human nature.

 

ANS:  F

 

  1. Immoral management implies active opposition to what is right.

 

ANS:  T

 

  1. Purposefully breaking the law is an example of immoral management.

 

ANS:  T

 

  1. Moral management conforms to standards of ethical behavior.

 

ANS:  T

 

  1. Since moral management is not willing to break laws, profitability is not a goal of corporations that practice moral management.

 

ANS:  F

 

  1. The two types of moral management are intentional and unintentional.

 

ANS:  F

 

  1. Some amoral managers believe that business activity resides outside the sphere to which moral judgments apply.

 

ANS:  T

 

  1. Amoral management may imply a lack of ethical perception and moral awareness.

 

ANS:  T

 

MULTIPLE CHOICE

 

  1. A comparison of the public’s perception of business executive’s ethics with those of other professionals reveals which one of the following?
a. Business executives rank about in the middle of the pack of those considered.
b. Business executives ranked higher than groups such as pharmacists, clergy, and dentists.
c. Business executives ranked lower than senators, members of Congress, and state office holders.
d. Business executives ethics have increased as a result of TV shows such as 60 Minutes and 20/20.

 

 

ANS:  A

 

  1. In recent Gallup Polls, what has been the highest percentage of respondents who consider business as ethical?
a. 45%
b. 22%
c. 63%
d. 12%

 

 

ANS:  B

 

  1. Which of the following does not describe business ethics?
a. making decisions with the only criterion being which alternative brings the largest profit
b. the rightness and wrongness of the behaviors, decisions, or actions of people who work in business organizations
c. performing an act or behavior that is in agreement with prevailing norms or standards of society
d. making decisions in accordance with “what ought to be”

 

 

ANS:  A

 

  1. What refers to describing, characterizing and studying the morality of people, a culture, or a society?
a. social ethics
b. business ethics
c. public ethics
d. descriptive ethics

 

 

ANS:  D

 

  1. In a major Gallup poll of business executives’ ethics, business executives were found to be
a. ranked at the very top, along with members of the clergy.
b. ranked somewhere in the middle.
c. ranked at the bottom, along with car and insurance salespeople.
d. More ethical than university teachers.

 

 

ANS:  B

 

  1. Which of the following is not one of the three models of management ethics?
a. immoral management
b. moral management
c. amoral management
d. ethical management

 

 

ANS:  D

 

  1. Which of the following was not presented in the text as a key element in making an ethical judgment?
a. comparing present ethical standards with past ethical standards
b. comparing the act or behavior that has been committed with prevailing norms of acceptability
c. recognizing that someone is making value judgments as to what really occurred and what prevailing norms of acceptability really are
d. identifying the behavior or act that has been committed

 

 

ANS:  A

 

  1. Which model of management ethics holds that management’s motives are deemed greedy or selfish?
a. immoral management
b. amoral management
c. moral management
d. ethical management

 

 

ANS:  D

 

  1. Which of the following statements concerning “ethics versus law” is not correct?
a. Ethical behavior resides above behavior required by the law.
b. In many respects, law and ethics overlap.
c. The law embodies notions of ethics.
d. None of the above

 

 

ANS:  D

 

  1. At which level of moral development does the individual learn the importance of conforming to the norms of society?
a. the conventional level
b. the preconventional level
c. the postconventional level
d. the subconventional level

 

 

ANS:  A

 

  1. Which of the following is not an example of a question of “what ought to be”?
a. how should we treat minority employees
b. how should we treat aging employees
c. how safe should we make this product
d. how safe are other companies making this product

 

 

ANS:  D

 

  1. If Company A knowingly commits a wrongful act that is detrimental to Company B, Company A has exhibited which type of management ethics?
a. Moral
b. Immoral
c. Amoral
d. Antimoral

 

 

ANS:  B

 

  1. There are five principal repositories of values influencing businesspeople. Which of the following is not one of the five?
a. Religious
b. Cultural
c. Legal
d. all of the above

 

 

ANS:  D

 

  1. The central question guiding moral management decisions is
a. “Can we make money with this action, decision, or behavior?”
b. “What is our motivation for this action, decision, or behavior?”
c. “Is this action, decision, or behavior fair to us and all stakeholders involved?”
d. “What are our ethical norms?”

 

 

ANS:  C

 

  1. A manager who does not stop to consider that his or her actions have an ethical dimension could be classified as which type of manager?
a. Moral
b. Immoral
c. intentionally amoral
d. unintentionally amoral

 

 

ANS:  D

 

  1. Which of the elements of moral judgment refers to the ability to perceive that a web of competing economic relationships is, at the same time, a web of moral or ethical relationships?
a. moral imagination
b. moral identification and ordering
c. moral evaluation
d. tolerance of moral disagreement and ambiguity

 

 

ANS:  A

 

  1. “Can we make money with this action, decision, or behavior?” is the key question for decision making in which type of management?
a. Moral
b. Immoral
c. Amoral
d. anti-moral

 

 

ANS:  C

 

  1. Which of the following could be most strongly argued as an example of an immoral management decision?
a. Nestlé’s decision to market infant formula in Third World countries
b. ignoring plant machinery defects because repairs might delay production.
c. department policy requiring applicants to be at least 5’10” and 180 lbs.
d. advertising liquor, beer, and cigarettes

 

 

ANS:  B

 

  1. An individuals concepts of the relative worth, utility, or importance of certain ideas is referring to
a. Ethics.
b. Values.
c. responsible actions.
d. Maturity.

 

 

ANS:  B

 

  1. A manager does not discriminate on the basis of race because it is against company policy. This manager’s decision illustrates which of Kohlberg’s levels of moral development?
a. preconventional level
b. distributive justice level
c. conventional level
d. postconventional level

 

 

ANS:  C

 

  1. A manager does not discriminate on the basis of race because she believes in the equality of human value throughout the world. This manager’s view illustrates which of Kohlberg’s levels of moral development?
a. preconventional level
b. reward-seeking level
c. conventional level
d. postconventional level

 

 

ANS:  D

 

  1. In an organization’s web of values the ________ value refers to a broad synthesis of societal norms and values emanating from everyday living.
a. religious values
b. philosophical values
c. cultural values
d. legal values

 

 

ANS:  C

 

  1. Included as focuses of Kohlberg’s universal-ethical-principle-orientation level (Stage 6) are all the following principles except
a. social norms.
b. justice.
c. human rights.
d. social welfare.

 

 

ANS:  A

 

  1. Which of the following was not discussed in the text as an internal source of a manager’s values?
a. the individual’s personality
b. respect for the authority structure of the firm
c. conformity pressures
d. the “results” mentality

 

 

ANS:  A

 

  1. The real challenge for ________ is to integrate the concern for others into organizational goals, purposes, and legitimacy.
a. moral identification and ordering
b. moral evaluation
c. tolerance of moral disagreement and ambiguity
d. a sense of moral obligation

 

 

ANS:  B

 

  1. Which of the following is not true of the role that law plays in affecting values?
a. Law represents a minimum ethic of behavior.
b. Law represents the codification of what the society considers right and wrong.
c. Law addresses only the grossest violations of society’s sense of right and wrong.
d. Law encompasses all the ethical standards of behavior.

 

 

ANS:  D

 

  1. Which of the following is not one of the elements in making moral judgments?
a. moral imagination
b. moral introspection
c. moral obligation
d. moral evaluation

 

 

ANS:  B

 

  1. Which of the following is least likely to be a case in which moral disagreement or ambiguity would be an issue?
a. determining how safe to make a product
b. deciding whether to pay a bribe to get a major sale
c. making a strategic decision based on instincts
d. firing an employee who has admitted to excessive stealing

 

 

ANS:  D

 

  1. Which of the following is a characteristic or a moral manager?
a. is insensitive to the hidden dimensions where people are likely to get hurt
b. ranks moral factors in decision making just as economic factors are ranked
c. cites ethical disagreement and ambiguity as reasons for forgetting ethics altogether
d. sees ethical decisions as isolated and independent of managerial decisions and managerial competence

 

 

ANS:  B

 

Chapter 7—Personal and Organizational Ethics

 

TRUE/FALSE

 

  1. The issue of accepting a bribe to be induced to make a particular decision about a supplier is an example of a personal-level ethical challenge.

 

ANS:  F

 

  1. The question of whether I should overlook a subordinate’s wrongdoing illustrates an organizational-level ethical issue.

 

ANS:  T

 

  1. There are basically four major approaches to ethics or ethical decision making.

 

ANS:  F

 

  1. Utilitarianism, as an ethical principle, simply argues that we should take that course of action that is useful to us.

 

ANS:  F

 

  1. One problem with utilitarianism is that it forces us to think about the general welfare.

 

ANS:  F

 

  1. The rights principle expresses morality from the point of view of the individual, whereas the utilitarian principle expresses morality in terms of the group or society as a whole.

 

ANS:  T

 

  1. A basic idea behind the principle of rights is that rights cannot be overridden by utility.

 

ANS:  T

 

  1. According to John Rawls, the major way to think of the principle of justice is to focus on what the law says is just.

 

ANS:  F

 

  1. The Golden Rule of ethics argues that “he who has the gold, rules.”

 

ANS:  F

 

  1. The intuition ethic argues that “if it feels good, do it.”

 

ANS:  F

 

  1. The market ethic holds that if an action in the market furthers financial self-interest, then it is ethical.

 

ANS:  T

 

  1. The professional ethic holds that you should do only that which can be explained before a committee of your peers.

 

ANS:  T

 

  1. “The greatest good for the greatest number” is the hedonistic ethic.

 

ANS:  F

 

  1. Research has shown that personal financial need is the factor that most influences the unethical behavior of managers.

 

ANS:  F

 

  1. Action-oriented ethical principles focus on doing. Virtue ethics emphasizes being.

 

ANS:  T

 

  1. One important characteristic of ethical decision making is that most decisions have extended consequences.

 

ANS:  T

 

  1. The ethics screen consists of a variety of standards against which a proposed course of action may be compared.

 

ANS:  T

 

  1. The most important purpose of an ethics code is to convey to the outside world that the company is ethical.

 

ANS:  F

 

  1. In the text, Enron was offered as an example of a company that exerted great care in promulgating and implementing an ethics code.

 

ANS:  F

 

  1. It has been demonstrated that firms that have had ethics codes for at least five years are, on average, more ethical than those firms with no codes.

 

ANS:  F

 

MULTIPLE CHOICE

 

  1. The question “Should I notify my bank that it credited someone else’s $500 to my checking account?” is an example of a/an
a. personal-level decision.
b. organizational-level decision.
c. association-level decision.
d. societal-level decision.

 

 

ANS:  A

 

  1. Which ethical challenge do we face in day-to-day activities in our personal lives that are generally outside the work environment?
a. personal level
b. organizational level
c. industry level
d. global level

 

 

ANS:  D

 

  1. A survey of corporate ethics found all of the following, except one, to be current ethical issues at the organizational level. Which does not belong?
a. employee conflicts of interest
b. inappropriate gifts to corporate personnel
c. sexual harassment
d. employee lying

 

 

ANS:  D

 

  1. The distribution of benefits and burdens refers to
a. distributive justice.
b. compensatory justice.
c. procedural justice.
d. political justice.

 

 

ANS:  A

 

  1. Which of the following ethical principles argues that we should take the decision that yields the greatest good for the greatest number?
a. maximization
b. compensatory justice
c. the categorical imperative
d. utilitarianism

 

 

ANS:  D

 

  1. Which of the following principles expresses morality from the point of view of the individual?
a. utilitarianism
b. rights
c. justice
d. means-ends

 

 

ANS:  B

 

  1. Which of the following ethical principles has subparts that address distribution, compensation, and procedure?
a. utilitarianism
b. Golden Rule
c. justice
d. rights

 

 

ANS:  C

 

  1. An approach to ethical leadership and decision making based on the moral principle of serving others first refers to
a. virtue ethics.
b. servant leadership.
c. principle of justice.
d. moral judgment.

 

 

ANS:  B

 

  1. Virtue ethics focuses on
a. the development of virtuous mission statements to guide organization actions.
b. the ten commandments.
c. the individual becomes imbued with virtues (e.g., honesty, truthfulness).
d. institutionalizing Kohlberg’s conventional level of ethics.

 

 

ANS:  C

 

  1. “Do unto others as you would have them do unto you”
a. reconciling ethical conflicts
b. virtue ethics
c. golden rule
d. principle of caring

 

 

ANS:  C

 

  1. Virtue is embodied in what each individual finds meaningful. There are no universal or absolute moral principles refers to
a. the organization ethic.
b. the revelation ethic.
c. the disclosure rule.
d. the hedonistic ethic.

 

 

ANS:  D

 

  1. The “test of making something public” is essentially the same as the
a. intuition ethic.
b. revelation ethic.
c. disclosure rule.
d. none of the above.

 

 

ANS:  C

 

  1. Which of the following factors affect the morality of managers and employees?
a. society’s moral climate
b. business’s moral climate
c. industry’s moral climate
d. government’s moral climate

 

 

ANS:  D

 

  1. The “test of the purified idea” holds that an idea or course of action is “purified” if it
a. has withstood the test of time.
b. has been approved by someone in authority.
c. is being done by most people at a particular point in time.
d. complies with the three major ethical principles.

 

 

ANS:  B

 

  1. Which of the following ethics tests can only capture the “grossest of unethical behaviors?”
a. Golden Rule
b. intuition ethic
c. test of the purified idea
d. gag test

 

 

ANS:  D

 

  1. Which of the following is not one of the ethical tests approach?
a. Test of common sense
b. Test of making something public
c. Test of Ventilation
d. Test of Cover-up-ability

 

 

ANS:  D

 

  1. Research has demonstrated that managers see the following factor as most significant in influencing unethical behavior:
a. society’s moral climate.
b. personal financial need.
c. behavior of superiors.
d. none of the above.

 

 

ANS:  C

 

  1. Which of the following refers to managers simply are not ethical themselves, and this influence wears off on others?
a. amoral decision making
b. unethical acts, behaviors, or practices
c. acceptance of legality
d. absence of ethical leadership

 

 

ANS:  B

 

  1. When presented with the proposition that “managers today feel under sure to compromise personal standards to achieve company goals,” according to the text, which of the following levels of management agreed most with the proposition?
a. lower management
b. middle management
c. top management
d. board of directors

 

 

ANS:  A

 

  1. Which one of the following is not in the process of ethical decision making?
a. principle approach
b. managerial approach
c. ethical tests approach
d. conventional approach

 

 

ANS:  B

 

  1. Regarding the relationship between top-level and lower-level managers,
a. top-level managers seem to be very sensitive to the ethical issues that lower-level managers face.
b. both groups seem to feel about the same degree of pressure to compromise personal standards for the company.
c. top-level managers seem to be insensitive to how far lower-level managers might go to please them.
d. top-level managers perceive that lower-level managers are really not interested in ethical issues within the firm.

 

 

ANS:  C

 

  1. If managers who themselves fail to factor ethical considerations into their actions, decisions, and behaviors they are creating which questionable organizational atmosphere?
a. acceptance of legality as a standard of behavior
b. absence of ethical leadership
c. objectives and evaluation systems
d. amoral decision making

 

 

ANS:  D

 

  1. Which of the following does not seem to take place in organizations?
a. amoral decision making
b. acceptance of legality as a standard of behavior
c. “bottom line” mentality
d. evaluation systems that are sensitive and responsive to ethical behavior

 

 

ANS:  D

 

  1. The moral tone of the organization is usually set by
a. the top-management group.
b. public affairs managers.
c. the company’s legal counsel.
d. first-line supervisors.

 

 

ANS:  A

 

  1. In order to improve an organization’s ethical climate or culture the organizations ethics training, discipline of violators, and codes of conduct should be dealt with in
a. top management leadership.
b. moral management.
c. senior management.
d. bottom level management.

 

 

ANS:  B

 

  1. Mark Pastin found that high-ethics firms
a. are good communicators of the company’s code of ethics.
b. are at ease interacting with diverse stakeholder groups and are obsessed with fairness.
c. decide in advance on what level of profits to achieve and then gear their ethical decisions toward that end.
d. most often employ the rights principle of ethics.

 

 

ANS:  B

 

  1. Candor, confidentiality, and fidelity were presented in the text as key ethical principles with respect to
a. investment decisions.
b. setting realistic objectives.
c. effective communication.
d. none of the above.

 

 

ANS:  C

 

  1. All of the following, except one, were mentioned in the text as a component of an organization’s ethical climate or culture. Which was not mentioned?
a. whistle-blowing mechanisms (“hotlines”)
b. ethics audits
c. codes of conduct
d. the status of legal counsel

 

 

ANS:  D

 

  1. A survey of corporate officers revealed a number of results business organizations received as a result of their codes of ethics. All but one of the following was cited. Which was not cited?
a. legal protection for the company
b. helped attract superior employees
c. increased company loyalty and pride
d. improved loss prevention

 

 

ANS:  B

 

  1. Which of the following was not discussed in the text as an action a company might take to improve its ethical climate?
a. setting realistic objectives
b. providing whistle-blowing mechanisms
c. training managers in business ethics
d. providing managers with their own laminated, wallet-sized copies of the process of ethical decision making (ethics screen)

 

 

ANS:  D