Chapter 4 - JANNIS187 Flashcards
11) Eleanor has witnessed her manager harassing a coworker on multiple occasions. Eleanor knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job. This example illustrates a(n)
A) justice rule.
B) ethical dilemma.
C) moral dilemma.
D) utilitarian rule.
E) moral rights rule.
B
12) ________ are the moral principles and beliefs about what is the right or appropriate way to behave.
A) Societal norms
B) Laws and regulations
C) Ethics
D) Values and norms
E) Individual values
C
13) Brenda, the CEO of a manufacturing company, knew that her company followed the Environmental Protection Agency’s (EPA) regulations for purifying waste water; however, new research found that those regulations where not strict enough and the drinking water would be affected. Brenda relied on her ________ and told the plant manager to go beyond the EPA’s required level to assure that the company waste did not affect the community.
A) moral scruples
B) occupational ethics
C) practical rules
D) environmental principles
E) social justice views
A
14) The essential problem when solving moral dilemmas is
A) ethics and laws are fixed principles.
B) ethical beliefs remain constant as time passes.
C) there are no absolute or indisputable rules or principles to decide whether an action is ethical.
D) everyone agrees on what is ethical or unethical.
E) ethics evolve over time, but laws related to ethical beliefs remain constant.
C
15) Smoking marijuana is illegal in many states; therefore, smoking marijuana is
A) unethical.
B) ethical.
C) possibly unethical or ethical, depending on the circumstances.
D) always ethical when used for medical purposes, whether it is legal or not.
E) always unethical when used for medical purposes, whether it is legal or not.
C
16) Jonathon is a(n) ________, meaning he is both an employee of the company and a customer of its products.
A) stockholder
B) shareholder
C) stakeholder
D) owner
E) community member
C
17) One thing that it is important to remember about stockholders is they
A) are usually regarded as the most critical stakeholder group.
B) are least interested in the company’s profits.
C) bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
D) are responsible for using a company’s financial, capital, and human resources to increase its performance and thus its stock price.
E) play an important role, but are not the company’s only stakeholder group.
E
18) ________ watch the company and its managers closely to ensure that management is working diligently to increase the company’s profitability.
A) Community members
B) Suppliers
C) Stockholders
D) Customers
E) Distributors
C
19) ________ have/has the right to expect a good return or reward by investing their human capital to improve a company’s performance.
A) Customers
B) Distributors
C) Suppliers
D) The Community
E) Managers
E
20) ________ are the stakeholder group with the most responsibility for deciding the goals of the organization.
A) Stockholders
B) Customers
C) Managers
D) Operational-level employees
E) Consultants
C
21) ________ are frequently in the position of having to juggle the interests of different stakeholders, including themselves.
A) Stockholders
B) Customers
C) Contractors
D) Managers
E) Suppliers
D
22) A company can act ethically toward employees and meet their expectations by
A) improving their products over time and providing guarantees to customers about the integrity of their products.
B) selling customers quality products at a fair price and providing good after-sales service.
C) maximizing the stockholders’ return on investments.
D) creating an occupational structure that fairly and equitably rewards organization members for their contributions.
E) implementing a high-power distance culture and discouraging decentralized decision making.
D
23) The board and top managers of a nonprofit organization have considerable latitude to decide how they will spend the organization’s resources because
A) they are a private foundation.
B) the organization does not have shareholders.
C) they are typically small organizations.
D) they receive contributions and government grants.
E) all monies earned are pumped back into the business.
B
24) Tax reform legislation signed into law by President Trump in late 2017 included a new 21% excise tax on ________ for salaries over $1 million.
A) nonprofit employers
B) public company CEOs
C) small business employees
D) government employees
E) companies with overseas branches
A
25) The town in which a large dog food company has its headquarters is referred to as
A) a community.
B) the company’s constituency.
C) stockholders.
D) the company’s labor force.
E) the company’s social conscience.
A
26) The ________ stakeholder group is often considered to be the most critical.
A) managers
B) employees
C) customers
D) stockholders
E) suppliers
C
27) Stefan is confronted with a serious ethical dilemma. He responds with a solution that creates the greatest good for the greatest number of people. Which ethical rule best describes his response?
A) justice
B) moral rights
C) utilitarian
D) practical
E) moral scruples
C
28) The utilitarian rule states that an ethical decision is one that
A) best protects the rights of people affected.
B) produces the greatest good for the greatest number of people.
C) distributes benefits and harms in an impartial manner.
D) can be communicated with no reluctance.
E) increases the financial effectiveness of the organization.
B
29) Under the ________ rule, an ethical decision is one that best maintains people’s fundamental privileges.
A) justice
B) moral rights
C) utilitarian
D) practical
E) moral scruples
B
30) “Do unto others as you would have them do unto you,” is an example of the ________ principle.
A) utilitarian
B) moral rights
C) justice
D) practical
E) fundamental
B
31) The ________ rule states that an ethical decision is one in which rewards and harms are distributed in a fair and impartial way.
A) justice
B) moral rights
C) utilitarian
D) practical
E) moral scruples
A
32) When Bob calculates the yearly bonuses for his employees, he pays particular attention to the individual employee scores to ensure that they are based on performance and not favoritism. Which ethical rule is Bob following?
A) practical
B) moral scruples
C) utilitarian
D) justice
E) moral rights
D
33) Under the practical rule, for a business decision to be ethical, a manager would NOT be reluctant to communicate the decision to people outside the company when
A) the decision, although unethical, would increase shareholders’ wealth.
B) a typical person would consider the decision acceptable.
C) a typical person wouldn’t care about the decision.
D) a typical person would be unaware of the harmful implications of the decision.
E) he or she could blame the top management of the firm.
B
34) The practical rule states that an ethical decision is one that
A) best protects the rights of people affected.
B) produces the greatest good for the greatest number of people.
C) distributes benefits and harms in a fair way.
D) can be communicated with no reluctance.
E) is relevant to the financial effectiveness of the organization.
D
35) Shia makes some changes in the production process to ensure employees can perform tasks without endangering their health and safety. Shia is employing the moral rights rule to
A) seek to protect the rights and privileges of people affected.
B) maximize the greatest good for the greatest number of people.
C) distribute benefits in fair ways but ignore harm.
D) hesitate to communicate to people outside the company for fear of them criticizing her decision.
E) randomly distribute harms and benefits.
A
36) One managerial implication of the justice model is that to be ethical, managers should base their decisions on
A) the effects the decision can have on stakeholders’ rights.
B) what provides maximum profits to the company.
C) whatever promotes a fair distribution of outcomes.
D) the personal situation of employees.
E) the greatest good for the greatest number of people.
C
37) An ethical dilemma for managers is that decisions that will protect the rights of some stakeholders often will hurt the rights of others. This most closely relates to the ________ rule of ethical decision making.
A) practical
B) moral scruples
C) utilitarian
D) justice
E) moral rights
E
38) The practical rule of ethical decision making
A) emphasizes distributing benefits and harms in an equitable way.
B) states that it is acceptable for a company to choose an unethical action if the action provides the greatest good for the greatest number of people.
C) requires managers to determine the fair or unfair rules and procedures for distributing outcomes to stakeholders.
D) states that an ethical decision is one that a manager will be hesitant or reluctant to communicate to people outside the company because the typical person in a society would think it is unacceptable.
E) ensures that managers will take into account the interests of all the stakeholders.
E
39) When Frida was determining if her decision was ethical, she asked herself, “Would the people with whom I have a significant personal relationship, such as family members, friends, or even managers in other organizations, approve of the decision?” Frida was demonstrating which rule of ethical decision making?
A) practical
B) moral scruples
C) utilitarian
D) justice
E) moral rights
A
40) A website offered free streaming and downloading of movies, games, and music. It was eventually shut down by the courts. Websites like these demonstrate that the pursuit of self-interest can lead to a(n) ________, a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way.
A) moral dilemma
B) “tragedy of the commons”
C) ethical dilemma
D) credo
E) war of attrition
B
