Society Test Review

Society Test Review Review
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1. Egoism states that all people should uphold certain values, such as honesty, that society needs to function.
True False
 
1. (p. 165) Egoism states that all people should uphold certain values, such as honesty, that society needs to function.
FALSE

2. Two basic ethical ideals underpin the Caux Principles: honesty and integrity.
True False

 
2. (p. 165) Two basic ethical ideals underpin the Caux Principles: honesty and integrity.
FALSE

Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei means living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition.
3. Egoism is a preferred ethical stance from a societal perspective, compared to utilitarianism.
True False
 
3. (p. 165) Egoism is a preferred ethical stance from a societal perspective, compared to utilitarianism.
FALSE

4. Virtue ethics goes beyond the conventional rules of society.
True False
 
TRUE

Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right.
5. People in the conventional stage of Kohlberg's model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family or peers.
True False
 
5. TRUE

(p. 167) People in the conventional stage of Kohlberg's model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family or peers.

6. It is easy to be a whistleblower since there are few consequences for it.
True False
 
FALSE

Most whistleblowers suffer consequences such as being ostracized, treated rudely, or given undesirable assignments.
7. The economic responsibility of a business includes satisfying its obligations to investors.
True False

 
TRUE
8. Sustainability is not compatible with the natural ecosystems that generate and preserve life.
True False
 
FALSE
9. Life-cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water and land.
True False
 
TRUE
10. Honesty, caring, loyalty, fairness and integrity are all examples of
A. ethics.
B. citizenship.
C. values.
D. self focus.
E. excellence.
 
C. values.

11. A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called a(n)
A. responsibility issue.
B. ethical issue.
C. moral business issue.
D. personal issue.
E. moral rights issue.
 
B. ethical issue.
12. Han believes in fairness and kyosei and uses these principles to make decisions of right and wrong in his daily life. These principles are part of his
A. moral philosophy.
B. business ethics.
C. ying.
D. ecocentric philosophy.
E. personality.
 
A. moral philosophy.

Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.

13. ___________ considers acceptable behavior as that which maximizes benefits for the individual.
A. Egoism
B. Deontology
C. Relativism
D. Universalism
E. Utilitarianism
 
A. Egoism
14. The __________ principle encourages employees to consider first if they would like to see their actions displayed on the front page of the newspaper. If yes, then it is likely an appropriate course of action.
A. Kohlberg
B. sunshine
C. newspaper
D. action
E. ethics
 
B. sunshine
15. An ethics program that is designed by lawyers to detect, prevent and punish legal violations is called a(n) _________ ethics program.
A. integrity-based
B. compliance-based
C. competency-based
D. legally-based
E. responsibility-based
 
B. compliance-based
16. Compliance-based ethics programs are typically designed by
A. lawyers
B. employees
C. top executives
D. stockholders/owners
E. focus groups of customers
 
A. lawyers
17. Compliance-based ethics programs ensure
A. resistance to social responsibility.
B. moral mediocrity.
C. discretionary social responsibility.
D. proactive social responsibility.
E. a moral commitment to ethical conduct.
 
B. moral mediocrity.

Compliance-based ethics programs should reduce illegal behavior and help a company stay out of court. But they do not create a moral commitment to ethical conduct; they merely ensure moral mediocrity.
18. Ethical programs tend to be better integrated into operations, thinking and behavior when
A. every employee has signed the code of ethics.
B. top management has a personal commitment to responsible ethical behavior.
C. employees have seen top managers punished for their wrongdoings.
D. managers use punishment to motivate employees to "be good."
E. compliance-based programs are used.
 
B. top management has a personal commitment to responsible ethical behavior.

When top management has a personal commitment to responsible ethical behavior, programs tend to be better integrated into operations, thinking, and behavior. Ethics should be a thoroughly integrated aspect of the way the company and its people do business.
19. Going beyond legal compliance with ADA standards and training people to understand that individuals with disabilities also have valued abilities is an example of
A. compliance-based programs.
B. integrity-based programs.
C. minimal requirements programs.
D. poor employee training.
E. an ethical dilemma.
 
B. integrity-based programs.

Integrity-based ethics programs would go further by training people to understand and perhaps change attitudes toward people with disabilities and sending clear signals that people with disabilities also have valued abilities. This effort goes far beyond taking action to stay out of trouble with the law.

20. John Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision. This thought process is based on the
A. veil of ethics.
B. veil of understanding.
C. veil of ignorance.
D. ethical certainty.
E. ethical ignorance.
 
C. veil of ignorance.

The philosopher John Rawls created a thought experiment based on the "veil of ignorance." A decision maker can tactically apply the veil of ignorance to help minimize personal bias.
21. The process for ethical decision making begins with
A. defining the complete moral problem.
B. determining the legal requirements.
C. understanding all moral standards and recognizing all moral impacts.
D. proposing a moral solution.
E. evaluating your suggested solution's success.
 
C. understanding all moral standards and recognizing all moral impacts.
22. Level 1 business costs of ethical failures include
A. government fines and penalties.
B. cost of remedial education.
C. cost of corrective action.
D. loss of reputation.
E. employee turnover.
 
A. government fines and penalties.
23. Which of the following is a Level 2 cost of ethical failure?
A. Government fines and penalties
B. Remedial education
C. Customer defections
D. Loss of reputation
E. Employee cynicism
 
B. Remedial education
24. Telling others, inside or outside the organization, of wrongdoing is called
A. ethical shadowing.
B. whistleblowing.
C. egoism.
D. ethical interference.
E. moral consequences.
 
B. whistleblowing.
25. Corporate social responsibility is the
A. taking of an active role in training employees to be ethical.
B. obligation toward society assumed by business.
C. following of the laws that govern the industry in which a company operates.
D. encouragement of recycling efforts within the organization's buildings.
E. maximization of shareholder wealth.
 
B. obligation toward society assumed by business.
26. Computer Geeks believes in and engages in meeting societal expectations whether or not written as law. The business serves as a drop-off location for recycling old computers and other electronic devices to do its part in keeping poisonous materials out of the landfills. Computer Geeks can be described as operating at which level of the pyramid of corporate social responsibility?
A. Preconventional
B. Economic
C. Ethical
D. Legal
E. Philanthropic
 
C. Ethical

Ethical responsibilities include meeting other societal expectations, not written as law such as serving as a drop-off point for recycling computers.

27. The order of the levels in the pyramid of global corporate social responsibility and performance are (from bottom to top)
A. economic, legal, philanthropic, ethical
B. ethical, economic, legal, philanthropic
C. economic, legal, ethical, philanthropic
D. legal, economic, ethical, philanthropic
E. philanthropic, economic, legal, ethical
 
C. economic, legal, ethical, philanthropic
28. Speaking out against unethical actions is called
A. empathy.
B. generativity.
C. mutuality.
D. civil aspiration.
E. intolerance of ineffective humanity.
 
E. intolerance of ineffective humanity.
29. Who wrote "The social responsibility of business is to increase profits?"
A. Adam Smith
B. Milton Friedman
C. Benjamin Franklin
D. Thomas Jefferson
E. Frederick Taylor
 
B. Milton Friedman
30. Under a business initiative called Ecomagination, GE is looking for business opportunities from
A. lean manufacturing.
B. environmental scanning.
C. reconciliation.
D. integrity-based programs.
E. solving environmental problems.
 
E. solving environmental problems.

Under a business initiative called Ecomagination, GE is looking for business opportunities from solving environmental problems. Ecomagination solutions already include wind turbines, materials for solar energy cells, and energy-efficient home appliances.
Scenario A. Your organization faces an ethical question. There has been a problem with your accounting process that has resulted in lower profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why.
John wants to report the error immediately because he believes that it is the right thing to do and that will keep them all out of jail.
Bruce wants to report the error because it is the honest thing to do.
After hearing his colleagues' opinions, Carlos says he wants to report the error as well because he believes the group is right.

31. Bruce is using which ethical system for his decision making?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
 
A. Universalism

Universalism states that all people should uphold certain values, such as honesty, that society needs to function.

Scenario A. Your organization faces an ethical question. There has been a problem with your accounting process that has resulted in lower profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why.
John wants to report the error immediately because he believes that it is the right thing to do and that will keep them all out of jail.
Bruce wants to report the error because it is the honest thing to do.
After hearing his colleagues' opinions, Carlos says he wants to report the error as well because he believes the group is right.

32. Carlos is using which ethical system for his decision making?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
 
D. Relativism

Relativism defines ethical behavior based on the opinions and behaviors of relevant other people.

Scenario C. Two managers at RW Oil, Inc. are discussing the latest e-mail they have received from headquarters. Jimmy Joe's reaction is simply to say: "All this thing needs to say, as far as I'm concerned is if you don't get busted for it, you're innocent. If you do get caught, you pay the price." His friend, Eddie, has a very different idea. His response is: "I believe, however, that every individual should take personal responsibility for their behavior. I would like for our organization to integrate that idea into everything we do here at work." The email they are reading concerns how decisions are evaluated on the basis of right and wrong at their company.

33. Jimmy Joe seems to prefer which type of ethics program for the company?
A. Associate-based
B. Compliance-based
C. Integrity-based
D. Systems-based
E. Consensus-based
 
B. Compliance-based

Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations. These types of programs merely ensure moral mediocrity as Jimmy Joe is exhibiting.

Scenario D. Eagle Manufacturing, Inc. is in the middle of its first day of the senior management retreat. The topic on the agenda is corporate social responsibility (CSR). Most of the group has seen this brought up before and then shot down because it generally costs Eagle's shareholders in the form of a lower stock price. But the new VP of Ethics, Gloria Wright, is about to explain why she believes CSR will actually benefit the shareholders and Eagle management alike. Her team begins the presentation with a discussion of CSR—its current definition and reconciliation of past views. Jeremiah then discusses the importance of being a good global corporate citizen by supporting the local school system. Ellen takes the floor to make the case for doing what is expected by global stakeholders even though there are no laws requiring those actions. Finally Gloria wraps the discussion up with why Eagle should take legal and economic responsibility for the firm's performance. To Gloria's team's credit, senior management does appear to buy into the pyramid of global corporate social responsibility and performance that her team just presented.

34. Ellen's presentation most likely focused on the __________ responsibility of the firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
 
C. ethical

Ethical responsibilities include meeting other societal expectations, not written as law.

Scenario D. Eagle Manufacturing, Inc. is in the middle of its first day of the senior management retreat. The topic on the agenda is corporate social responsibility (CSR). Most of the group has seen this brought up before and then shot down because it generally costs Eagle's shareholders in the form of a lower stock price. But the new VP of Ethics, Gloria Wright, is about to explain why she believes CSR will actually benefit the shareholders and Eagle management alike. Her team begins the presentation with a discussion of CSR—its current definition and reconciliation of past views. Jeremiah then discusses the importance of being a good global corporate citizen by supporting the local school system. Ellen takes the floor to make the case for doing what is expected by global stakeholders even though there are no laws requiring those actions. Finally Gloria wraps the discussion up with why Eagle should take legal and economic responsibility for the firm's performance. To Gloria's team's credit, senior management does appear to buy into the pyramid of global corporate social responsibility and performance that her team just presented.

35. Gloria's presentation most likely centered on the decision to take which of the following actions?
A. Production of goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
B. Obeying all laws that affect Eagle's operations
C. Doing the right thing regardless of what the law says
D. Supporting Jeremiah's proposal
E. Supporting Ellen's proposal
 
A. Production of goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors

Economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

36. According to public opinion polls, only 31 percent of employees said they trust their own CEO.
True False

 
TRUE

According to a survey by Edelman, people are often suspicious of their own company's management; only 31 percent said they trust their own CEO.
37. Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.
True False

 
TRUE
68. The assessment of how decisions are evaluated in the company refers to the organization's
A. organizational climate.
B. ethical climate.
C. ethical perspective.
D. organizational dynamics.
E. corporate culture.
 
B. ethical climate.

The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
39. Utilitarianism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
True False

 
TRUE
61. The goals of a transcendent education include which of the following?
A. Empathy
B. Generativity
C. Mutuality
D. Intolerance of ineffective humanity
E. All of the above are goals of a transcendent education.
 
E. All of the above are goals of a transcendent education.

A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, intolerance of ineffective humanity
41. The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
True False

 
TRUE
42. Excessive emphasis on long-term revenues over shorter-term considerations is one of the factors that is conducive to unethical behavior.
True False

 
TRUE

Many factors create a climate conducive to unethical behavior including excessive emphasis on short-term revenues over longer-term considerations.
43. An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically.
True False

 
TRUE
44. A compliance-based ethics program creates a moral commitment to ethical conduct.
True False

 
FALSE

A compliance-based ethics program does not create a moral commitment to ethical conduct; it merely ensures moral mediocrity.
45. An integrity-based ethics program instills in people a personal responsibility for ethical behavior.
True False

 
TRUE
67. Bruce is using which ethical system for his decision making?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics

 
A. Universalism

Universalism states that all people should uphold certain values, such as honesty, that society needs to function.
47. GE management sees environmentally friendly technologies as one of the global economy's most significant business opportunities.
True False

 
TRUE

Under a business initiative called Ecomagination, GE is looking for business opportunities from solving environmental problems.
66. __________ is a process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product, to determine the total environmental impact of the production and use of a product.
A. Ecocentric management
B. LCA
C. Sustainable growth
D. Sustainable management
E. The green movement

 
B. LCA
49. The Caux Principles are based on two ethical ideals:
A. good and bad.
B. right and wrong.
C. kyosei and human respect.
D. kyosei and human dignity.
E. self fulfillment and happiness.

 
D. kyosei and human dignity.
50. Utilitarianism states that
A. Some values must always be upheld, regardless of the consequences.
B. Societal rules or customs should be used to order values.
C. Society will be enhanced if we all take care of ourselves and don't harm others.
D. Individuals might choose between conflicting values by tallying the final results of the various acts.
E. The greatest good for the greatest number should be the overriding concern of decision makers.

 
E. The greatest good for the greatest number should be the overriding concern of decision makers.
51. Tarissa typically makes a decision about what she will or won't do based on what her friends think she should do. Tarissa is using which ethical system for her decisions?
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism
 
C. Relativism

Relativism defines ethical behavior based on the opinions and behaviors of relevant other people such as Tarissa's friends.

52. Knowing what actions are morally defensible is referred to as
A. moral awareness.
B. moral judgment.
C. moral character.
D. moral certainty.
E. moral knowledge.
 
B. moral judgment.
63. Some of the world's worst environmental problems are in
A. Japan.
B. the United States.
C. Latin America.
D. Europe.
E. China.

 
E. China.

Some of the world's worst environmental problems are in China, because of its rapid industrialization and its huge population and size.
64. __________ has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
A. Corporate social responsibility
B. LCA
C. Ecocentric management
D. Take-make-waste
E. Ecomagination
 
C. Ecocentric management
62. Who wrote "The social responsibility of business is to increase profits?"
A. Adam Smith
B. Milton Friedman
C. Benjamin Franklin
D. Thomas Jefferson
E. Frederick Taylor

 
B. Milton Friedman
56. McDonalds has changed the packaging of their sandwiches so that less waste is produced. They additionally use recycled paper to bag their products. McDonalds states that they are doing these types of things in order to make the earth a "nicer place to eat." From this information, we can conclude that McDonalds believes in
A. deregulation.
B. corporate social responsiveness.
C. maximizing customer actualization.
D. corporate social responsibility.
E. corporate wealth enhancement.

 
D. corporate social responsibility.

Corporate social responsibility is the obligation toward society assumed by business. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good.
57. To obey local, state, federal and relevant international laws defines ________ responsibility.
A. economic
B. legal
C. department social
D. philanthropic
E. ethical

 
B. legal
65. Economic growth and development that meets present needs without harming the needs of future generations is known as
A. ecocentric management.
B. ergonomic management.
C. sustainable growth.
D. sustainable management.
E. risk.

 
C. sustainable growth.

59. Which of the following is the "lowest" level of the pyramid of global corporate social responsibility and performance?
A. Economic responsibility
B. Legal responsibility
C. Ethical responsibility
D. Philanthropic responsibility
E. Financial responsibility

 
A. Economic responsibility


60. Office Depot gives a portion of their sales on school supplies to the customer's designated school. This donation to a community organization is an example of
A. economic responsibility
B. legal responsibility
C. conventional responsibility
D. ethical responsibility
E. philanthropic responsibility

 
E. philanthropic responsibility

Philanthropic responsibilities are additional behaviors and activities that society finds desirable and that the values of the business support. Examples include supporting community projects and making charitable contributions.
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