TRUE/FALSE
1. The domain of codified law pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom.
2. Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or groups.
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3. Free choice lies between the domains of codified law and ethics.
4. If something is ethical, it must not be illegal.
5. An ethical dilemma arises in a situation when each alternative choice or behavior have potentially negative consequences. Right and wrong cannot be clearly distinguished.
6. The moral agent is an individual who must make an ethical choice in an organization.
7. Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-making.
8. 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.
9. Monitoring the Internet to maintain the company’s ethical climate and workplace productivity could be considered part of an individualistic approach.
10. 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.
11. The ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people is objective dualism.
12. In the individualism approach, the right of free speech must be considered.
13. Individualism is popular in the highly organized society of today because it supports immediate self-gain.
14. The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be considered in the moral rights approach.
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15. Procedural justice requires that different treatment of people not be based on arbitrary characteristics.
16. The justice approach is closest to the thinking underlying the domain of free choice.
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17. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.
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18. Level 3 of the Personal Moral Development model is Conventional.
19. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.
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20. Individuals are concerned with external rewards and punishments at the principled level.
21. An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law.
22. Principled level of moral development is also referred to as the postconventional level.
23. The majority of managers operate at the preconventional level of personal moral development.
24. Approximately 20% of American adults, according to your text, ever reach the postconventional level of moral development.
25. The great majority of managers operate at level two, the conventional level.
26. Spotlight on Ethics in Chapter 4 recommends that when challenging your boss on ethical issues you do not demand a resolution on the spot.
27. The NEW MANAGER SELF-TEST in Chapter 4 suggests that orienting new people, even though it is not required, often reflects a person’s level of moral development.
28. 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.
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29. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.
30. Important stakeholders in corporations include the government and the community.
31. A stakeholder is any group within or outside the organization that has a stake in the organization’s performance.
32. All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.
33. Special interest groups include trade associations, political action committees and consumerists.
34. Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.
35. Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be used to evaluate corporate social performance.
36. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.
37. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests.
38. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.
39. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.
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40. A formal statement of the organization’s values regarding moral principles and governing its response to social values is called a code of ethics.
41.Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.
42. Policy-based statements generally outline the procedure to be used in specific ethical situations.
43. One of the newest positions in organizations is the chief operating officer, a response to widespread financial wrongdoing in recent years.
44. A group of executives appointed to oversee company ethics is an ethics committee.
45. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.
46. Ethics training programs are not an important supplement as long as a well-written code of ethics exists.
47. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle-blowing.
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48. Managers are often concerned good citizenship will hurt performance.
49. Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models for others.
50. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
51. The virtue ethics approach to ethical decision making sidesteps debates about what is 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.
52. The virtue ethics approach to ethical decision making says that moral behavior stems from personal virtues.
53. Economic responsibility, carried to the extreme, is called the profit-maximizing view.
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54. Although public confidence in business managers is at an all-time low, politics, sports, and non-profit organizations have not been affected.
COMPLETION
1. __________ is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.
2. When values and standards are written into the legal system, it is referred to as ______.
3. A(n) ________ arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.
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4. The ________ is an individual responsible for making an ethical choice.
5. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as ________ approach.
6. The _________ approach contends that acts are moral when they promote the individual’s best long-term interests.
7. The _________ approach asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.
ANS:
moral-rights
moral rights
8. The ________ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.
9. __________ justice requires that different treatment of people not be based on arbitrary characteristics.
10. ________ justice requires that rules should be clearly stated and consistently and impartially enforced.
ANS: Procedural
11. ________ justice argues that individuals should be compensated for the cost of their injuries by the party responsible.
12. At the _________ level of personal moral development, individuals are most concerned with external rewards and punishments.
13. People learn to conform to the expectations of good behavior that are set by peers and society at the _________ level.
14. Individuals at the __________ level are guided by an internal set of values and standards and will even disobey rules or laws that violate these principles.
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15. Most managers operate at the _________ level.
16. Management’s obligation to make choices that will contribute to the well being of both the organization and society is known as __________.
17. A(n) _________ is any group within or outside the organization that has a stake in the organization’s performance.
18. __________ refers to interacting with the community in which a company does business in a way that makes money for the company but also improves the long-term well-being of the community.
19. ___________ responsibility is purely voluntary and guided by a company’s desire to make social contributions not mandated by economics, law, or ethics.
20. A(n) __________ is a formal statement of the company’s values concerning ethics and social issues; it communicates to employees what the company stands for.
21. __________ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws.
22. A group of executives assigned to oversee the organization’s ethics by ruling on questionable issues and disciplining violators is referred to as a(n) _________.
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23. __________ programs help employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior.
24. Employee disclosure of illegal organization activities is known as ________.
25. The relationship between social responsibility and financial performance has been shown to be __________.
26. The ________ approach to ethical decision making sidesteps debates about what is 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.
27. The ________ approach to ethical decision making says that moral behavior stems from personal virtues.
28. The ________ approach to economic responsibility means that economic gain is the only social responsibility and can lead companies into trouble.
ANS: profit-maximizing
SHORT ANSWER
1. List the four criteria for ethical decision-making described in the book.
2. List three of the six moral rights that should be considered during decision making.
3. List three examples of primary stakeholders.
4. List the four responsibilities of corporate social performance.
ESSAY
1. Define ethics and explain how the domain of ethics relates to law and free choice.
2. List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.
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3. Briefly explain the justice approach to ethics and then explain the three types of justice.
4. List and define the stages of moral development.
5. What is social responsibility? Why is it considered a difficult concept to g
6. Explain the concept of a stakeholder and list five common stakeholders.
7. List and define the criteria of corporate social responsibility.
8. Explain the differences between principle-based statements and policy-based statements in an organization’s code of ethics.
