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Department
Global Management Studies
Course
GMS 200
Professor
Masoomeh Moharrer
Semester
Winter

Description
Chapter 3: Ethical Behaviour and Social Responsibility 1 Multiple Choice Questions CHAPTER INTRODUCTION 117. __________ was the root cause of bankruptcies and business failures such as Enron, Arthur Andersen, WorldCom and Bre-X. A. A failure of ethics. B. Autocratic leadership. C. Poor customer service. D. B and C. E. A, B, and C. A GT Ap 118. Performance goals must always be achieved through __________. A. Any means possible. B. Exploitation of environmental resources. C. Ethically and socially responsible actions. D. Governmental subsidies. E. Marginalizing human resources. C GT Ap WHAT IS ETHICAL BEHAVIOUR? (STUDY QUESTION 1) 119. Which of the following statements does NOT provide an accurate description of ethics? A. Ethics is the code of moral principles that sets standards of “good” versus “bad” or “right” versus “wrong.” B. Ethics provide principles to guide the behaviour of individuals. C. Ethics provide principles to guide the behaviour of groups. D. Ethics is a set of principles that guide the organization’s analysis of its external environment and the formulation of actions to respond to that environment. E. Ethics provides principles that help people in making moral choices among alternative courses of action. D GT Fa 2 Schermerhorn & Wright: Management 120. __________ reflect(s) the code of moral principles that sets standards as to what is “good” versus “bad” or “right” versus “wrong” in people’s conduct, and thereby guides their moral choices and behaviour. A. Group norms. B. Legal behaviour. C. Ethics. D. Civil law. E. Humanistic behaviour. C KT Fa 121. According to the textbook, ethical behaviour is __________. A. The same as legal behaviour in the context of business. B. Interpreted outside the legal frame of reference. C. What is accepted as “good” or “right’ as opposed to “bad” or “wrong” in the context of the governing moral code. D. All of the above. E. None of the above. C KT Fa Laws, Values, and Ethical Behaviour 122 Which statement accurately describes the relationship between law and ethics? A. Even though an action is legal, it may not be ethical. B. An action that is not illegal is without question an ethical action. C. Living up to the “letter of the law” is a sufficient guarantee that a person’s actions are truly ethical. D. A and C. E. B and C. A GT Ap 123. Most ethical problems in the workplace arise when people are asked to do or are about to do something that __________. A. Is illegal. B. Goes against work group standards. C. Violates their personal beliefs. D. Violates the organization’s policies. E. Violates social norms. C GT Fa 124. The underlying beliefs and attitudes that help determine behaviour are referred to as __________. A. Values. B. Ethics. C. Morals. D. Personal standards. E. Social norms. A KT Fa Chapter 3: Ethical Behaviour and Social Responsibility 3 125. To the extent that __________ vary among people, we can expect different interpretations of what behaviour is ethical or unethical in a given situation. A. Laws. B. Values. C. Needs. D. Perceptions. E. Motives. B GT Fa 126. __________ are preferences regarding desired ends. A. Ethical values. B. Utilitarian values. C. Instrumental values. D. Social values. E. Terminal values. E KT Fa 127. Self-respect, freedom, happiness, inner harmony, and family security are examples of __________ that managers consider to be important. A. Moral values. B. Socialistic values. C. Terminal values. D. Instrumental values. E. Bureaucratic values. C GT Ap 128. __________ are preferences regarding the means for accomplishing desired ends. A. Ethical values. B. Utilitarian values. C. Terminal values. D. Instrumental values. E. Social values. D KT Fa 129. Courage, imagination, ambition, self-discipline, and honesty are examples of __________ that managers consider to be important. A. Instrumental values. B. Moral values. C. Socialistic values. D. Terminal values. E. Bureaucratic values. A GT Ap 4 Schermerhorn & Wright: Management Alternative Views of Ethics 130. The utilitarian view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. A KT Fa 131. The main emphasis of the utilitarian view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. E KT Fa 132. Using results-oriented performance criteria to judge what is best for most people in a business organization is an application of which view of ethical behaviour? A. The utilitarian view. B. The individualism view. C. The collectivism view. D. The moral-rights view. E. The justice view. A GT Ap 133. The individualism view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. D KT Fa 134. The main emphasis of the individualism view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. A KT Fa Chapter 3: Ethical Behaviour and Social Responsibility 5 135. The individualism view is supposed to promote __________ but in business practice it may result in __________. A. Personal enrichment … organizational enrichment. B. Honesty and integrity … pushing the law to its outer limits. C. Narcissism … procedural justice. D. Running roughshod over other people to achieve personal objectives … honesty and integrity. E. Pushing the law to its outer limits … interactional justice. B GT Ap 136. The moral-rights view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. B KT Fa 137. The main emphasis of the moral-rights view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. C KT Fa 138. In contemporary organizations, __________ concerns the protection of employees with respect to their rights to privacy, due process, free speech, free consent, health and safety, and freedomof conscience. A. The utilitarian view. B. The individualism view. C. The collectivism view. D. The moral-rights view. E. The justice view. D GT Ap 139. The justice view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. C KT Fa 6 Schermerhorn & Wright: Management 140. The main emphasis of the justice view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. D KT Fa 141. Suppose that a professor’s main concern in grading term papers is to evaluate all papers and assign grades fairly and objectivelyin light of the requirements and grading scale contained in the course syllabus. From an ethics perspective, this is an example of the professor adopting which of the following views? A. The utilitarian view. B. The individualism view. C. The collectivism view. D. The moral-rights view. E. The justice view. E GT Ap 142. The degree to which policies and rules are fairly administered in an organization is known as __________. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. D KT Fa 143. Not taking sexual harassment allegations against top management as seriously as allegations against lower-level supervisors is an example of violating the principle of __________. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. D GT Ap 144. The degree to which outcomes are allocated without regard to ethnicity, race, gender, age, or other individual differences criteria is the concept of __________. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. A KT Fa Chapter 3: Ethical Behaviour and Social Responsibility 7 145. If a woman and a man have equivalent qualifications and experience and are given the same consideration for promotion, __________ is being applied. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. A GT Ap 146. The degree to which other people are treated with dignity and respect deals with the issue of __________. A. Utilitarianism. B. Individualism. C. Procedural justice. D. Distributive justice. E. Interactional justice. E KT Fa 147. Michele, a bank officer, takes the time to fully explain to an applicant why he is being turned down for a loan and does her best to answer all the applicant’s questions without being demeaning toward him in any way. Michele is reflecting the ethical concern of __________ in her behaviour. A. Moral rights. B. Distributive justice. C. Interactional justice. D. Utilitarianism. E. Individualism. C GT Ap Cultural Issues in Ethical Behaviour 148. A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of __________. A. Cultural activism. B. Cultural relativism. C. Ethical imperialism. D. Cultural socialism. E. Ethical realism. B KT Fa 149. An executive who assumes that ethical standards should apply absolutely across cultures and national boundaries is operating under which cultural perspective? A. Cultural activism. B. Cultural relativism. C. Ethical universalism. D. Cultural socialism. E. Ethical realism. C KT Fa 8 Schermerhorn & Wright: Management 150. Critics charge that __________ is a form of __________, or the attempt to externally impose one’s ethical standards on others. A. Cultural relativism … cultural universalism. B. Universalism … ethical imperialism. C. Cultural relativism … ethical imperialism. D. Ethical imperialism … cultural relativism. E. Ethical imperialism … Romanesque law B KT Fa 151. Core values or “hyper-norms” that transcend cultural boundaries focus on __________. A. Human dignity. B. Basic rights. C. Good citizenship. D. All of the above. E. None of the above. D GT Fa 152. Creating a corporate culture that values employees, customers, and suppliers is a core value that __________. A. Respects basic rights. B. Promotes good citizenship. C. Enhances social concerns. D. Respects human dignity. E. Respects stakeholder interests. D MN Fa 153. Which of the following does NOT accurately describe of the universal values of respect for human dignity or respect for basic rights? A. Keeping a safe workplace. B. Producing safe goods and services. C. Supporting social institutions, including economic and educational systems. D. Protecting the rights of employees and customers. E. Avoiding anything that threatens people’s education and living standards. C MN Fa ETHICS IN THE WORKPLACE (STUDY QUESTION 2) Ethical Dilemmas at Work 154. An ethical dilemma __________. A. Is rare among managers. B. Is resolved in most organizations by a formal code of ethics. C. Always involves pressures to commit illegal acts. D. Can usually be resolved without much personal stress. E. Occurs when someone must choose between a course of action offering personal or organizational benefit or both, but for which there is no clear right or wrong decision. E KT Fa Chapter 3: Ethical Behaviour and Social Responsibility 9 155. When some action must be taken but there is not a clear “right” or “wrong” approach, a person is faced with a(n) __________. A. Moral pinch. B. Ethical dilemma. C. Managerial decision. D. Situation to avoid. E. Lawsuit. B KT Fa 156. Suppose that a manager denies a candidate a promotion or job appointment because of the candidate’s race, religion, gender, age, or other criteria that are not relevant to the job. This manager may get caught in an ethical dilemma involving __________. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. A GT Ap 157. If a manager makes a co-worker feel uncomfortable because of inappropriate comments or actions regarding sexuality, the manager may get caught in an ethical dilemma involving __________. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. B GT Ap 158. Ethical dilemmas in the form of __________ may occur where a manager takes a bribe or kickback or extraordinary gift in return for making a decision favorable to the gift giver. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. C GT Ap 159. Ethical dilemmas in the form of __________ may occur where a manager has privileged information regarding the activities of a customer and shares that information with another party. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. D GT Ap 10 Schermerhorn & Wright: Management 160. Managers who use official stationery or company e-mail accounts to communicate personal opinions or requests to community organizations are engaging in acts that may be considered to constitute an ethical dilemma regarding __________. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. E GT Ap 161. A survey of Harvard Business Review subscribers revealed that many ethical dilemmas involve conflicts with __________. A. Superiors. B. Subordinates. C. Customers. D. All of the above. E. None of the above. D GT Fa 162. The results of a Harvard Business Review survey indicated that the ethical issues most frequently encountered by the magazine’s subscribers involved all but which one of the following? A. Dishonesty in advertising. B. Dishonesty in communication with top management. C. Dishonesty in communication with subordinates. D. Dishonesty in communication with clients. E. Dishonesty in communication with government agencies. C GT Fa 163. The text reports that managers sometimes pressure their subordinates to engage in various unethical activities. Which of the following in NOT one of these unethical activities? A. Overlooking the boss’s wrongdoings. B. Signing false documents. C. Supporting incorrect viewpoints. D. Doing business with the boss’s friends. E. Doing personal favors for the boss. E GT Fa Rationalizations for Unethical Behaviour 164. The text identifies four rationalizations that are commonly used to justify unethical conduct. Which of the following is NOT one of the four rationalizations? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. E GT Fa Chapter 3: Ethical Behaviour and Social Responsibility 11 165. In submitting her expense report for a recent business trip, Shirley sought reimbursement for some personal entertainment expenses. Knowing that the company policy precluded such reimbursement, she reported higher amounts for taxi fares and tips than she actually spent. Which of the following rationalizations most likely applies to Shirley’s actions? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. Alternative A and B. E. Alternative B and C. C GT Ap 166. The text identifies different ways of dealing with the four rationalizations that are commonly used to justify unethical behaviour. Which one of the following courses of action is NOT a recommended way for dealing with at least one of the four rationalizations? A. When in doubt about a decision to be made or an action to be taken, don’t do it. B. If other people and other companies are doing it, you are justified in doing it too. C. Look beyond the short-term results to address longer-term implications. D. Make sure everyone knows that wrongdoing will be punished whenever it is discovered. E. Organizational loyalty should not stand above the law and social morality. B GT Ap 167. Which of the following rationalizations for unethical behaviour reflects the mistaken belief that one’s behaviour is acceptable, especially in ambiguous situations? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. A GT Fa 168. Which of the following rationalizations for unethical behaviour reflects the mistaken belief that because someone can be found to benefit from the behaviour, the behaviour is also in the organization’s best interests? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. B GT Fa 169. Which of the following rationalizations for unethical behaviour reflects the mistaken belief that a questionable behaviour is really “safe” and will never be discovered or made public? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. C GT Fa 12 Schermerhorn & Wright: Management 170. Which of the following rationalizations for unethical behaviour reflects the mistaken belief that the organization’s best interests stand above all others? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. D GT Fa Factors Influencing Ethical Behaviour 171. Factors influencing ethical managerial behaviour include which of the following? A. The employing organization. B. The person. C. The external environment. D. All of the above. E. None of the above. D GT Fa 172. Person factors that help determine managerial ethics include all of the following EXCEPT: A. Religious values. B. Personal financial needs. C. Family influences. D. Behaviour of peers. E. Personal standards. D GT Fa 173. __________ are personal rules or strategies for ethical decision making. A. Ethical frameworks. B. Distributive justice. C. Ethical dilemmas. D. Ethical anchors. E. Procedural justice. A GT Fa 174. The virtues of honesty, fairness, integrity, and self-respect provide __________ that help people make correct decisions even when circumstances are ambiguous and situational pressures are difficult. A. Procedural justice. B. Ethical frameworks. C. Distributive justice. D. Ethical dilemmas. E. Ethical anchors. E GT Fa Chapter 3: Ethical Behaviour and Social Responsibility 13 175. In a commencement address, Ivan Boesky said, “Greed is healthy. You can be greedy and still feel good about yourself.” This is an example of the __________ factor influencing ethical behaviour. A. Social. B. Organization. C. Person. D. Corporate. E. Environment. C GT Ap 176. The behaviour of supervisors and the expectations of peers are __________ factors that influence ethical behaviour. A. Social. B. Organization. C. Person. D. Corporate. E. Environment. B GT Fa 177. Anita Roddick's 11-point charter on ethical conduct at the Body Shop International is an example of the influence of __________ on ethical behaviour. A. Religious values. B. Government regulation. C. Personal standards and needs. D. Formal policies of the employing organization. E. Behaviour of peers and supervisors. D GT Ap 178. Environmental factors that affect the ethical standards of an organization and its employees include __________. A. Social norms and values. B. Competition within an industry. C. Governmental laws and regulations. D. All of the above. E. None of the above. D GT Fa 179. Which of the following statements about the Sarbanes-Oxley Act of 2002 is/are true? A. The Sarbanes-Oxley Act created the Public Company Accounting Oversight Board and set a new audit-reporting standard. B. The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen. C. The Sarbanes-Oxley Act makes it easier for corporate executives to be tried and sentenced to jail for financial misconduct. D. A and B. E. A and C. E GT Fa 14 Schermerhorn & Wright: Management 180. Former American Airlines president Robert Crandall contacted Howard Putnam, then president of now-defunct Braniff Airlines, to discuss raising airfares on their competing money-losing routes. The U.S. Justice Department alleged this was an illegal attempt to monopolize airline routes. The action by the Department of Justice is an example of the __________ factor influencing managers’ ethical behaviour. A. Person. B. Organization. C. Environment. D. A and B. E. B and C. C GT Ap MAINTAINING HIGH ETHICAL STANDARDS (STUDY QUESTION 3) 181. According to the text, all of the following are ways of maintaining high ethical standards in management EXCEPT: A. Media coverage of unethical acts. B. Ethics training. C. Whistleblower protection. D. Top management support. E. Codes of ethical conduct. A GT Fa 182. Ethics training, whistleblower protection, strong ethical cultures, formal codes of ethics, and top management support are ways of __________. A. Rationalizing unethical behaviour. B. Maintaining high ethical standards. C. Implementing ethical imperialism. D. A and B. E. B and C. B GT Fa Ethics Training 183. Ethics training refers to __________. A. Structured programs to help participants understand the ethical aspects of decision making, and how to incorporate ethical standards into their daily lives. B. Teaching corporate outlines for formal corporate codes of ethics. C. Training on the laws under which “white collar” criminals are prosecuted. D. Learning about corporate guidelines for supplier conduct. E. Exposure to governmental regulations for defense contractors in the United States. A GT Fa Chapter 3: Ethical Behaviour and Social Responsibility 15 184. Ethics training should be designed to __________. A. Help people deal with ethical issues while under pressure. B. Help people incorporate ethical standards into their daily work behaviour. C. Help people to have the moral courage to do what is right. D. A and B. E. A and C. D GT Fa 185. Which of the following is NOT a step that managers can follow for making ethical decisions? A. Recognize the ethical dilemma. B. Identify your options. C. Model what others are doing. D. Double-check your decisions by asking follow-up questions. E. Take action. C MN Fa 186. According to the text, an important way for double-checking the ethics of a decision is to ask which one of the following questions? A. How would I feel about this decision if it made a lot of money for the company? B. How would I feel if I receiveda large bonus a result of making this decision? C. How would I feel if this decision harmed someone? D. How would I feel if a competitor lost business as a result of this decision? E. How would I feel if my family found out about my decision? E MN Fa 187. According to the text, an important way to test whether a decision is consistent with one’s personal ethical standards is by asking which of the following questions? A. How would I feel about this if my decision were printed in the local newspaper? B. How would I feel if this decision harmed someone? C. How would I feel if my employer lost a lot of money as a result of this decision? D. All of these questions are important ways of testing the ethics of a decision. E. None of these questions is an important way of testing the ethics of a decision. A MN Fa Whistleblower Protection 188. Someone who exposes the misdeeds of others in an organization in an attempt to preserve ethical standards and protect against wasteful, harmful,
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