competitive

Question 1

A problem with the utilitarian approach to ethics is the difficulty in recognizing all the benefits
and the costs of any particular decision.

Answer 1

FALSE

Question 2

The Golden Rule is the essence of one of Immanuel Kant’s approaches to resolving ethical
dilemmas

Answer 2

TRUE

Question 3

The theory of vital responsibility proposes that a private corporation has responsibilities to
society that extend beyond making a profit.

Answer 3

FALSE

Question 4

Friedman referred to the social responsibility of business as a “fundamentally subversive
doctrine.”

Answer 4

TRUE

Question 5

Archie Carroll contends that the primary goal of business is profit maximization.

Answer 5

FALSE

Question 6

Archie Carroll proposes that managers in companies have only a discretionary responsibility.

Answer 6

FALSE

Question 7

According to Carroll, legal responsibilities are defined by governments in laws that management
is expected to obey

Answer 7

TRUE

Question 8

The difference between ethical and discretionary responsibilities is that few people expect an
organization to fulfill ethical responsibilities.

Answer 8

FALSE

Question 9

Discretionary responsibilities are voluntary obligations a corporation assumes.

Answer 9

TRUE

Question 10

Being known as a socially responsible firm may provide a company with social capital, the
goodwill of key stakeholders, that can be used for competitive advantage.

Answer 10

TRUE

Question 11

According to organizational learning theory, an organization uses knowledge to improve the fit
between itself and its environment.

Answer 11

TRUE

Question 12

A study concerning social responsibility indicates that socially-responsible firms are more likely
to be welcomed into another country.

Answer 12

TRUE

Question 13

The broader concept of sustainability is closely aligned with Friedman’s view of social
responsibility.

Answer 13

FALSE

Question 14

Corporation stakeholders are all constituencies that are affected by the achievement of the firm’s
objectives.

Answer 14

TRUE

Question 15

In any one strategic decision, the interests of one stakeholder group can conflict with another.

Answer 15

TRUE

Question 16

The first step in stakeholder analysis is identifying those who have only an indirect stake in the
corporation.

Answer 16

FALSE

Question 17

Primary stakeholders have a direct connection with the corporation and have sufficient
bargaining to directly affect corporate activities.

Answer 17

TRUE

Question 18

Strategic flexibility is the ability to shift from one dominant strategy to another.

Answer 18

TRUE

Question 19

A company may have some stakeholders of which it is only marginally aware.

Answer 19

TRUE

Question 20

There is no truth to the comment that “business ethics” is an oxymoron.

Answer 20

TRUE

Question 21

Cultural norms and values can guide ethical behavior.

Answer 21

TRUE

Question 22

“Let the buyer beware” is a traditional saying in free market capitalism.

Answer 22

TRUE

Question 23

A strategic decision is rare, consequential, and directive.

Answer 23

TRUE

Question 24

Relationship-based countries tend to be more transparent and have a lower degree of corruption
than do rule-based countries.

Answer 24

FALSE

Question 25

Cultural relativism is reflected in the statement, “When in Rome, do as the Romans do.”

Answer 25

FALSE

Question 26

Kohlberg’s preconventional level is characterized by a person’s adherence to an internal moral
code.

Answer 26

FALSE

Question 27

A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and
support one another.

Answer 27

TRUE

Question 28

Moral relativism could enable a person to justify almost any sort of decision or action, so long as
it is not declared illegal.

Answer 28

TRUE

Question 29

According to Kohlberg’s levels of moral development, the conventional level is characterized by
considerations of society’s laws and norms.

Answer 29

TRUE

Question 30

Kohlberg places 80 percent of U.S. adults in the principled level of development.

Answer 30

FALSE

Question 31

A code of ethics denotes how employees should behave on the job.

Answer 31

TRUE

Question 32

Research indicates that when faced with a question of ethics, managers tend to ignore codes of
ethics and try to solve their dilemma on their own.

Answer 32

TRUE

Question 33

Law refers to formal codes that permit or forbid certain behaviors and may or may not enforce
ethics or morality.

Answer 33

TRUE

Question 34

A problem with the utilitarian approach to ethics is the difficulty in recognizing all the benefits
and the costs of any particular decision.

Answer 34

FALSE

Question 35

The Golden Rule is the essence of one of Immanuel Kant’s approaches to resolving ethical
dilemmas.

Answer 35

TRUE