MGMT 301 Chapter 4

Managers are more aware of the impact their decision will have on others when addressing an issue of high _____.

• ethical intensity

• ethical pluralism

• ethical subjectivism

• ethical congruence

Which of the following is a company's social responsibility to make a profit by producing a valued product or service?

• Economic responsibility

• Legal responsibility

• Ethical responsibility

• Discretionary responsibility

When Pink Cheques, previously a small-time production house, grew in size, the first thing its chief executive officer (CEO) did was to establish a set of guidelines that detailed all the principles, standards, and procedures to be followed in the company's line of business. The CEO set specific standards on topics ranging from treatment of coworkers to protecting the environment to maintenance of financial records. This scenario illustrates that the CEO developed a _____.

• code of ethics

• performance appraisal document

• database of employee records

• cognitive map

When businesses enhance their reputations by being socially responsible, they hope to maximize _____.

• utilitarian benefits

• customers' willingness to pay

• the opportunity cost of a choice

• All of these

Emerald Inc., a popular skincare company, apologized to its customers when a large number of its products tested positive for banned substances. It failed to take any further action despite the expectations of its customers. This is an example of a(n) _____.

• accommodative strategy

• comprehensive strategy

• defensive strategy

• proactive strategy

Which of the following is a company's social responsibility to make a profit by producing a valued product or service?

• Ethical responsibility

• Discretionary responsibility

• Economic responsibility

• Legal responsibility

The only social responsibility that businesses have is to maximize profits according to the _____.

• economic model

• stakeholder model

• accounting model

• shareholder model

In the context of ethical intensity, unlike temporal immediacy, probability of effect _____.

• is agreement on whether behavior is bad or good

• is how much an act affects the average person

• is the total harm or benefit derived from an ethical decision

• is the chance that something will happen that results in harm to others

Managers can use overt integrity tests to _____.

• select and hire ethical employees

• assess the ethical intensity of an issue

• differentiate between the ethics of primary and secondary stakeholders

• reinforce the ethical principle of individual rights

Secondary stakeholders are important to a company because _____.

• they are critical to the company's long-term survival

• they can affect public perceptions about socially responsible behavior

• they are involved in day-to-day transactions with the company

• they have the direct power to control management decisions