chapter 4

1) Corporate social responsibility is best defined as the

Multiple Choice

• degree to which employees adhere to the organization's written statement of its values and rules for ethical behavior.
• managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization.
• ability to understand cultural differences, which helps businesspeople interpret behavior accordingly and act socially.
• set of customs, processes, laws, policies, and institutions that affect the way a company is directed or controlled.

Item2Item 2

In the context of the Davis model of corporate social responsibility, it is important for businesses to act in socially responsible ways because businesses

Multiple Choice

• have a significant impact on societal issues such as environmental pollution and minority employment.
• form a central core from which communities derive their social values.
• can then focus solely on the degree of economic profit to be earned and thus gain social power.
• have a social obligation to create goods and services for the masses.

Item3Item 3

Ethics refers to the

Multiple Choice

• ability to analyze information and reach good decisions.
• principles by which people distinguish what is morally right.
• belief that one is the primary cause of what happens to one's self.
• characteristics of individuals that shape their identities.

4Item 4

Which of the following is the primary effect of teaching supervisors about the importance of ethics?

Multiple Choice

• It improves productivity in an organization.
• It helps supervisors in eliminating quality control processes.
• It helps supervisors enhance their human relations skills.
• It promotes social responsibility in an organization.

5Item 5

Shelley is an accountant at an aerospace company that is going through a financial crisis. To make it seem like the company is still profitable, she manipulates the company's financial data. However, this manipulation is against the standards of accounting. In this scenario, Shelley is guilty of

Multiple Choice

• unethical behavior.
• bribery.
• social loafing.
• nepotism.

6Item 6

Ethical behavior is part of a range of behaviors that ensure

Multiple Choice

• the preservation of informal culture in a company.
• optimum returns on the investments of a company.
• an organization's long-term health and success.
• the financial growth of a few employees in an organization.

Item7Item 7

Which of the following is a benefit that is most closely associated with ethical behavior?

Multiple Choice

• the right to undermine a trade embargo
• the reduction of public pressure for government regulation
• the improvement of group cohesiveness in a diverse group
• the rightful acceptance of gifts that fall outside federal government regulations

8Item 8

Identify a true statement about ethical business practices.

Multiple Choice

• When an organization behaves ethically, the government decreases the taxes enforced on its profits.
• Behaving ethically results in short-term gains but costs an organization long-term sustainability and profitability.
• Investors tend to be more interested in companies that have a good track record of ethical behavior.
• To establish an ethical work culture, an organization must sacrifice short-term profits and focus exclusively on establishing socially and environmentally responsible practices.

9Item 9

Phillip, the CEO of Texonet Inc., thinks it is beneficial for the company to print a booklet that contains the values and rules for right behavior in the company and distribute it to the employees. He thinks it will help employees to distinguish between right and wrong behavior. In this scenario, Phillip is thinking of printing the company's

Multiple Choice

• mission statement.
• ethical agenda.
• vision statement.
• code of ethics.

10Item 10

Which of the following statements is true of how cultural diversity affects the ethical behavior of employees?

Multiple Choice

• Ethical behavior is easy to practice in a company with cultural diversity.
• Ethical values vary from culture to culture.
• Ethical behavior is easy to practice in countries with high corruption levels.
• Ethical values are a vague concept in a diverse cultural environment.

11Item 11

Steve, a very hardworking supervisor, sometimes talks with his friends on the office phone and takes office supplies home for personal use. Steve's behavior is

Multiple Choice

• unsustainable.
• unethical.
• biased.
• nepotistic.

12Item 12

Joe, the supervisor of the information technology team of BHJ Corp., does not like Frank, one of his employees. He often passes the blame for mistakes on to Frank and tasks him with responsibilities that he does not have the skill or knowledge to handle. In the context of the ethical behavior of supervisors, which dimension of ethical behavior does Joe violate in this scenario?

Multiple Choice

• loyalty
• accountability
• fairness
• openness

13Item 13

If the CEO of a company hires his or her cousin, who lacks the required qualification, to head a division of the company, then it would be most appropriate to say that he or she is guilty of

Multiple Choice

• nepotism.
• whistle-blowing.
• felony.
• free riding.

14Item 14

Which of the following is a way by which a supervisor can ensure his or her subordinates accept the ethical decisions made by him or her?

Multiple Choice

• asking subordinates to make their own decisions
• giving subordinates the right to offer their perspectives in making decisions
• holding subordinates responsible for poor decisions
• creating norms that restrict subordinates from conceptual thinking in decision making

15Item 15

Which of the following is the first step a supervisor should take when he or she suspects that an employee is behaving unethically?

Multiple Choice

• confront the employee with the evidence
• follow the organization's disciplinary procedure
• gather and record evidence
• look for and correct the conditions that led to the problem

16Item 16

A whistle-blower is best defined as a person who

Multiple Choice

• hires his or her own relatives.
• exposes a violation of ethics or law.
• bullies his or her subordinates.
• gives in easily to peer pressure.

17Item 17

Which of the following acts forbids employers from retaliating against an employee who reports possible accounting, auditing, or reporting misdeeds that deceive investors?

Multiple Choice

• the Sarbanes-Oxley Act
• the Gramm-Leach-Bliley Act
• the USA Patriot Act
• the Federal Information Security Management Act

18Item 18

Zahra, a supervisor at Artworx Inc., observes two of her employees, Robert and Simone, fighting with each other over parking space. She knows that the feud has been going on for many months. Later, she is approached by Robert, who alleges that Simone has been falsifying records. As a supervisor, how should Zahra react to Robert's allegations against Simone?

Multiple Choice

• Zahra should confront Simone with Robert's allegations and ask her to prove her innocence.
• Zahra should fire Robert for attempting to damage Simone's reputation over personal issues.
• Zahra should initiate disciplinary action against Simone for falsifying records.
• Zahra should firmly discourage Robert from making allegations motivated by personal disagreements.

Item19Item 19

Sustainability is best defined as

Multiple Choice

• the ability of an organization to meet its present needs without compromising the ability of future generations to meet their needs.
• the degree to which employees adhere to an organization's written statement of its values and rules for ethical behavior.
• the ability to understand cultural differences that helps businesspeople interpret behavior and act ethically.
• the ability of an organization to protect employees who make complaints pertaining to occupational health and environmental laws.

Item20Item 20

Stonfren Corp. manufactures leather and leather accessories. The CEO of Stonfren Corp. decides to reduce the amount of materials consumed during leather production and move the company toward more environmentally friendly practices. She decides to employ Patrick, an engineer who is very experienced in leather production processes. In the context of organizations putting in efforts to achieve sustainability, this is an example of

Multiple Choice

• setting sustainability goals.
• hiring people with sustainability skills.
• rewarding contributions to sustainability.
• tracking the progress toward sustainability.