Strategic Management & Business Policy, 13e (Wheelen/Hunger)
Chapter 3 Ethics and Social Responsibility Responsibility in Strategic Strategic Management Management 1) The theory of vital responsibility proposes that a private corporaon corporaon has responsibilies to society that extend beyond making a prot. Answer: A!"# $i%: & 'age (ef: * Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning *) riedman referred to the social responsibility of bsiness as a /fndamentally sbversive doctrine./ Answer: T(0# $i%: * 'age (ef: * Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning &) Archie ,arroll contends that the primary goal of bsiness is prot maximiaon. Answer: A!"# $i%: * 'age (ef: * Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning 2) Archie ,arroll proposes that managers in companies have only a discreonary responsibility. Answer: A!"# $i%: * 'age (ef: & Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning 3) According to ,arroll4 legal responsibilies are dened by governments in laws that management is expected to obey. Answer: T(0# $i%: 1 'age (ef: & Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers 5) The di%erence di%erence between ethical and discreonary discreonary responsibilies is that few people expect an organiaon organiaon to flll ethical responsibilies. Answer: A!"# $i%: * 'age (ef: & Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning ) $iscreonary responsibilies are volntary obligaons a corporaon assmes. Answer: T(0# 1
$i%: 1 'age (ef: & Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning 6) -eing known as a socially responsible rm may provide a company with social capital4 the goodwill of key stakeholders4 that can be sed for compeve advantage. Answer: T(0# $i%: 1 'age (ef: 2 Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning 7) A stdy concerning social responsibility indicates that socially8responsible rms are more likely to be welcomed into another contry. Answer: T(0# $i%: 1 'age (ef: 3 Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning 19) The broader concept of sstainability is closely aligned with riedmans view of social responsibility. Answer: A!"# $i%: 1 'age (ef: 3 Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers AA,"-: #thical (easoning 11) ,orporaon stakeholders are all constencies that are a%ected by the achievement of the rms ob;ecves. Answer: T(0# $i%: 1 'age (ef: 3 Topic: "ocial (esponsibilies (esponsibili es of "trategic $ecision +akers +akers 1*) cient bargaining to directly a%ect corporate acvies. 2
Answer: T(0# $i%: 1 'age (ef: Topic: "ocial (esponsibilies of "trategic $ecision +akers
3
13) A company may have some stakeholders of which it is only marginally aware. Answer: T(0# $i%: * 'age (ef: 6 Topic: "ocial (esponsibilies of "trategic $ecision +akers 15) There is no trth to the comment that /bsiness ethics/ is an oxymoron. Answer: T(0# $i%: & 'age (ef: 7 Topic: #thical $ecision +aking AA,"-: #thical (easoning 1) ,ltral norms and vales can gide ethical behavior. Answer: T(0# $i%: * 'age (ef: 7 Topic: #thical $ecision +aking AA,"-: #thical (easoning 16) /!et the byer beware/ is a tradional saying in free market capitalism. Answer: T(0# $i%: 1 'age (ef: 69 Topic: #thical $ecision +aking 17) (elaonship8based contries tend to be more transparent and have a lower degree of corrpon than do rle8based contries. Answer: A!"# $i%: & 'age (ef: 61 Topic: #thical $ecision +aking AA,"-: #thical (easoning *9) ,ltral relavism is re=ected in the statement4 /?hen in (ome4 do as the (omans do./ Answer: A!"# $i%: & 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: Analyc "kills *1) @ohlbergs preconvenonal level is characteried by a persons adherence to an internal moral code. Answer: A!"# $i%: 1 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning **) +oral relavism cold enable a person to ;sfy almost any sort of decision or acon4 so long as it is not declared illegal. Answer: T(0# 4
$i%: & 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking *&) According to @ohlbergs levels of moral development4 the convenonal level is characteried by consideraons of societys laws and norms. Answer: T(0# $i%: 1 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning *2) @ohlberg places 69 percent of 0.". adlts in the principled level of development. Answer: A!"# $i%: * 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning *3) A code of ethics denotes how employees shold behave on the ;ob. Answer: T(0# $i%: 1 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning *5) (esearch indicates that when faced with a eson of ethics4 managers tend to ignore codes of ethics and try to solve their dilemma on their own. Answer: T(0# $i%: * 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning *) !aw refers to formal codes that permit or forbid certain behaviors and may or may not enforce ethics or morality. Answer: T(0# $i%: * 'age (ef: 62 Topic: #thical $ecision +aking AA,"-: #thical (easoning *6) The ;sce approach to ethics proposes that acons and plans shold be ;dged by their conseences. Answer: A!"# $i%: & 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning
5
*7) A problem with the litarian approach to ethics is the di>clty in recogniing all the benets and the costs of any parclar decision. Answer: A!"# $i%: * 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking &9) The Bolden (le is the essence of one of
6
&1) The concept that proposes private corporaons have responsibilies to society that extend beyond making a prot is known as A) =exible responsibility. -) social responsibility. ,) social =exibility. $) managerial responsibility. #) 'rot maximiaon Answer: $i%: 1 'age (ef: * Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning &*) ?hich one of the following is !" one of the argments against social responsibility as sed by economist +ilton riedmanC A) "pending money for social responsibility is spending the stockholders money for a general social interest. -) -sinesses can actally do very liDle in terms of social responsibility. ,) "pending money on social responsibility is acng from moves other than economic and may4 in the long8rn4 case harm to the very society the rm is trying to help. $) There is one and only one social responsibility of bsiness 88 to se its resorces and engage in acvies designed to increase its prots so long as it stays within the rles of the game. #) Throgh taking on the brden of social costs4 the organiaon becomes less e>cient4 casing price increases or postponement of growth. Answer: $i%: * 'age (ef: * Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning &&) ?ho said that the social responsibility of bsiness is a /fndamentally sub#ersi#e doctrine/ and that the one social responsibility of bsiness is /to se its resorces and engage in acvies designed to increase its prots so long as it stays with the rles of the game.../C A) Adam "mith -) #dward reeman ,) Archie ,arroll $) ?illiam ,. Eorris #) +ilton riedman Answer: # $i%: 1 'age (ef: * Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning &2) #conomist Milton $riedman has arged that a bsinesss only responsibility is to A) maximie prots and stay within the rles of the game. 7
-) sstain its market share. ,) promote the welfare of society. $) sasfy its employees. #) sasfy its cstomers. Answer: A $i%: 1 'age (ef: * Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning &3) According to ,arroll4 the responsibility that management of a bsiness organiaon has to prodce goods and services of vale to society so that the rm may repay its creditors and stockholders is called A) legal responsibilies. -) ethical responsibilies. ,) nancial responsibilies. $) economic responsibilies. #) discreonary responsibilies. Answer: $ $i%: * 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers &5) According to ,arroll4 the responsibilies dened by government in laws for management to obey are A) legal responsibilies. -) ethical responsibilies. ,) nancial responsibilies. $) economic responsibilies. #) discreonary responsibilies. Answer: A $i%: 1 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers &) According to ,arroll4 the responsibility that management of a bsiness organiaon assmes which are prely #oluntary obliga%ons are A) legal responsibilies. -) ethical responsibilies. ,) nancial responsibilies. $) economic responsibilies. #) discreonary responsibilies. Answer: # $i%: * 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning
8
&6) The term /social responsibilityF4 according to ,arroll4 can be viewed as a combinaon of an A) organiaons ethical and discreonary responsibilies. -) organiaons legal and ethical responsibilies. ,) organiaons economic and ethical responsibilies. $) organiaons nancial and economic responsibilies. #) organiaons legal and discreonary responsibilies. Answer: A $i%: * 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning &7) ,arrolls for responsibilies listed in order of priority are A) legal4 economic4 ethical4 and discreonary. -) legal4 ethical4 discreonary4 and economic. ,) economic4 legal4 ethical4 and discreonary. $) economic4 ethical4 discreonary4 and legal. #) ethical4 economic4 legal4 and discreonary. Answer: , $i%: * 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning 29) Society generally expects rms to work with employees and the company to plan for layo%s. This is an example of which of ,arrolls responsibiliesC A) economic -) legal ,) ;sce $) ethical #) discreonary Answer: $ $i%: & 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: (e=ecve Thinking 21) 'roviding day&care centers to employees is an example of which of ,arrolls responsibiliesC A) economic -) legal ,) ;sce $) ethical #) discreonary Answer: # $i%: * 'age (ef: & Topic: "ocial (esponsibilies of "trategic $ecision +akers 9
AA,"-: Analyc "kills
2*) riedmans posion on social responsibility A) proposes that a lack of social responsibility reslts in increased government reglaons. -) appears to be losing tracon with bsiness execves. ,) sggests that a lack of social responsibility redces a rms e>ciency. $) explains why rms are sing their socially responsibility acons for compeve advantage. #) mirrors ,arrolls posion. Answer: $i%: & 'age (ef: 2 Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning 2&) As societal vales evolve4 it is likely that the GGGGGGGGG responsibilies of today may become the GGGGGGGGG responsibilies to tomorrow. A) economicH ethical. -) legalH ethical. ,) discreonaryH ethical. $) discreonaryH economic. #) legalH discreonary. Answer: , $i%: & 'age (ef: 2 Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: (e=ecve Thinking 22) -eing socially responsibility A) provides a company with a more posive overall reptaon. -) has opened doors in local commnies. ,) has enhanced the companys reptaon with consmers. $) has reslted in cost savings to rms. #) all of the above. Answer: # $i%: & 'age (ef: 2 Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning 23) ?hich of the following is !" one of the examples provided as an organi'a%onal benet received rom being socially responsible C A) They can aDract otstanding employees who prefer working for a responsible rm. -) They are more likely to be welcomed into a foreign contry. ,) They are more likely to aDract capital infsions from investors who view reptable companies as desirable long8term investment. $) They are garanteed to maximie resorce prodcvity and redce the average payback period of investment. 10
#) Their environmental concerns may enable them to charge premim prices and gain brand loyalty. Answer: $ $i%: & 'age (ef: 3 Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning 25) According to a recent Harris *oll what percentage o +,S, adults belie#e that 0.". corporaons owe something to their workers and the commnies in which they operate and that they shold somemes sacrice some prot for making things beDer for their workers and commniesC A) 73I -) 3I ,) 39I $) 3 I #) *3I Answer: A $i%: * 'age (ef: 3 Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning 2)
-) monitor what all the stakeholders want. ,) idenfy the stakeholders with an indirect stake in the corporaon. $) esmate the e%ect on each stakeholder grop from any parclar strategic decision. #) idenfy the in=ence of each stakeholder grop. Answer: A $i%: 1 'age (ef: Topic: "ocial (esponsibilies of "trategic $ecision +akers 39) All of the following are considered primary stakeholders #K,#'T A) cstomers. -) governments. ,) employees. $) shareholders. #) creditors. Answer: $i%: * 'age (ef: Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: Analyc "kills 31) All of the following are considered secondary stakeholders #K,#'T A) governments. -) competors. ,) sppliers. $) trade associaons. #) acvists. Answer: , $i%: * 'age (ef: Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: Analyc "kills 3*) ?hich of the following statements is tre concerning secondary sta-eholdersC A) "econdary stakeholders are those who have only an indirect stake in the corporaon4 bt who are a%ected by corporate acvies. -) "econdary stakeholders sally inclde non8governmental organiaons Llike Breenpeace) and trade associaons. ,) -ecase the corporaons relaonship with each of these stakeholders is sally not covered by any wriDen or verbal agreement4 there is room for misnderstanding. $) Aside from competors4 secondary stakeholders are not sally monitored by the corporaon in any systemac fashion. #) all of the above Answer: # $i%: * 'age (ef: Topic: "ocial (esponsibilies of "trategic $ecision +akers
12
3&) ?hich of the following companies was cited by the text as an e.ample o a company which does its best to consider its responsibilies to its primary and secondary stakeholders when making strategic decisionsC A) +c$onalds -) Johnson M Johnson ,) +aytag $) +icrosoN #) #nron Answer: $i%: * 'age (ef: 6 Topic: "ocial (esponsibilies of "trategic $ecision +akers 32) The #thics (esorce ,enter fond that the percentage o employees ho had engaged in one or more unethical and/or illegal ac%ons dring the past year was A) less than 1I. -) *1I. ,) 26I. $) 5I. #) over 76I. Answer: , $i%: 1 'age (ef: 7 Topic: #thical $ecision +aking AA,"-: #thical (easoning 33) According to a srvey by the Ethics Resource Center 4 which was not cited as one of the most common 0ues%onable beha#iors that employees engage inC A) cOng corners on ality -) covering p incidents ,) absing or lying abot sick days $) srng the web on company me #) lying to or deceiving cstomers Answer: $ $i%: * 'age (ef: 7 Topic: #thical $ecision +aking AA,"-: #thical (easoning 35) As opposed to rule&based countries 4 relaonship8based contries tend to A) be more transparent and have a higher degree of corrpon. -) be more transparent and have a lower degree of corrpon. ,) be less transparent and have a lower degree of corrpon. $) be less transparent and have a higher degree of corrpon. #) have the same transparency and same degree of corrpon. Answer: $ $i%: & 'age (ef: 3 Topic: #thical $ecision +aking 13
AA,"-: #thical (easoning 3) Pf the six vales measred by the Allpot8Qernon8!indey "tdy of Qales test4 both 0.". and -rish execves consistently score highest on GGGGGGGG vales and lowest on GGGGGGGG vales. A) religios and theorecalH economic and social -) religios and economicH polical and social ,) economic and policalH social and religios $) social and religiosH aesthec and polical #) religiosH economic Answer: , $i%: * 'age (ef: 69 Topic: #thical $ecision +aking 36) Rule&based go#ernance A) is generally fond in developing naons. -) relies on pblicly veriable informaon. ,) relies on implicit agreement. $) is inherently nontransparent. #) reires an investment in me and money to bild relaonships. Answer: $i%: * 'age (ef: 61 Topic: #thical $ecision +aking AA,"-: #thical (easoning 37) ?hich of the following is one of the most common reasons given by srveyed execves for bending the rles to aDain their ob;ecvesC A) organiaonal performance reired it -) rles were ambigos or ot of date ,) everyone does it $) pressre from others #) all of the above Answer: # $i%: * 'age (ef: 61 Topic: #thical $ecision +aking AA,"-: #thical (easoning 59) Qice 'resident "herron ?atkins sed the GGGGGGGG analogy to explain why execves at #nron engaged in nethical and illegal acons. A) borrowing earnings -) Eapoleon complex ,) +oral relavism $) rogs in boiling water #) all of the above Answer: $ 14
$i%: & 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking 51) "ome people claim that morality is relave to some personal4 social4 or cltral standard and that there is no method for deciding whether one decision is beDer than another. This is called A) ethical relavity. -) moral philosophy. ,) comparave ethics. $) cltral imperialism. #) moral relavism. Answer: # $i%: & 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: Analyc "kills 5*) All of the following reasons provide raonale for nethical behavior #K,#'T A) the impact of cltral norms and vales. -) di%erences in vales between bsiness people and key stakeholders. ,) ambigos rles. $) agreement among stakeholders and bsiness people abot what is ethical. #) di>clty of one grop to nderstand anothers acons. Answer: $ $i%: & 'age (ef: 7869 Topic: #thical $ecision +aking AA,"-: #thical (easoning 5&) All of the following are one of the for types of moral relavism #K,#'T A) naive relavism. -) principled relavism. ,) role relavism. $) social grop relavism. #) cltral relavism. Answer: $i%: 1 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: #thical (easoning 52) (ole relavism is based on the belief that A) morality is relave to a parclar cltre. -) all moral decisions are deeply personal and each person shold be allowed to interpret sitaons and act on his own moral vales ,) social roles carry with them certain obligaons. $) morality is simply a maDer of following the norms of an individals peer grop. 15
#) a decision is legimate if it is common pracce. Answer: , $i%: 1 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: #thical (easoning 53) /?hen in (ome4 do as the (omans do/ re=ects which type of moral relavismC A) naive relavism -) role relavism ,) principled relavism $) cltral relavism #) social grop relavism Answer: $ $i%: & 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: Analyc "kills 55) -lindly following orders re=ects which type of moral relavismC A) naive relavism -) role relavism ,) principled relavism $) cltral relavism #) social grop relavism Answer: $i%: & 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: Analyc "kills 5) According to @ohlberg4 the rst level of moral development4 characteried by concern for self4 is called A) principled. -) convenonal. ,) essenal. $) pre8convenonal. #) fndamental. Answer: $ $i%: 1 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning 56) According to @ohlberg4 the second level of moral development4 characteried by consideraons of societys laws and norms4 is called A) principled. -) convenonal. ,) essenal. 16
$) preconvenonal. #) fndamental. Answer: $i%: 1 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning 57) According to @ohlberg4 the third level of moral development4 characteried by a persons adherence to an internal moral code4 is called A) principled. -) convenonal. ,) essenal. $) preconvenonal. #) fndamental. Answer: A $i%: 1 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning 9) According to @ohlberg4 in what stage of moral development do the ma;ority of people in the 0.". occpyC A) principled stage -) convenonal stage ,) essenal stage $) preconvenonal stage #) fndamental stage Answer: $i%: * 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning 1) A code of ethics was important for two reasons. The rst reason is that it claries company expectaons of employee condct in varios sitaons4 and the second reason is A) to redce the brden on the ;dicial system. -) that it makes clear that the company expects its people to recognie the ethical dimensions in decision and acons. ,) to promote a high level of societal norms. $) that it encorages individals to strive for good cienship and corporaons to contribte posively to society. #) that it minimies the possibility of mandatory reglaons. Answer: $i%: * 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning 17
*) +anagers who want to improve ethical behavior shold take acons sch as A) commnicate the code of ethics in training programs. -) emphasie the code of ethics in performance appraisal systems. ,) follow a code of ethical behavior themselves. $) commnicate the code of ethics in policies and procedres. #) all of the above Answer: # $i%: & 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning &) "pecic changes reported by ,#Ps in a srvey by the -siness (ondtable
5) ?hich company cancelled contracts with *& factories that did not meet its child8labor standards for sppliersC A) !evi "trass -) Bap
69) The approach to ethical behavior which proposes that hman beings have certain fndamental rights that shold be respected in all decisions4 ths avoiding interfering with the rights of others is called A) individal rights approach. -) mercanlism approach. ,) litarian approach. $) ;sce approach. #) moral imperialism approach. Answer: A $i%: 1 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning 61) According to the litarian approach4 the ability to a%ect the company is known as A) power. -) legimacy. ,) rgency. $) stability. #) lity. Answer: A $i%: 1 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning 6*) According to the litarian approach4 legal or moral claim on company resorces can stand for A) power. -) legimacy. ,) rgency. $) lity. #) stability. Answer: $i%: 1 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning 6&) The approach to ethical behavior which proposes that decision makers be eitable4 fair4 and imparal in the distribon of costs and benets to individals and grops is called A) individal rights approach. -) mercanlism approach. ,) litarian approach. $) ;sce approach. #) moral imperialism approach. Answer: $ 20
$i%: * 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning 62) A problem with the litarian approach is A) that it assmes all contries sbscribe to the same denion of /fndamental rights./ -) that it imposes a set of mandatory vales and behaviors on all enes in society. ,) that it encorages selsh behavior. $) that it imposes ones morality pon others and ;dges them by standards they may or may not accept. #) that it is di>clt to recognie all the benets and costs of any parclar decision. Answer: # $i%: & 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking 63) ?hich approach to ethical behavior can encorage selsh behavior when a person denes a personal need or want as a /right/C A) litarian -) individal rights ,) ;sce approach $) categorical imperave #) moral relavism Answer: $i%: & 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking 65) 'eople who are similar on relevant dimensions sch as ;ob seniority shold be treated in the same way4 is an example of A) compensatory ;sce. -) retribve ;sce. ,) relevant ;sce. $) distribve ;sce. #) pnive ;sce. Answer: $ $i%: * 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: Analyc "kills 6) The principle which proposes that pnishment shold be determined on a proporonal basis to the /crime/ is called A) compensatory ;sce. -) retribve ;sce. ,) relevant ;sce. 21
$) distribve ;sce. #) pnive ;sce. Answer: $i%: 1 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning 66) The principle which arges that wrongs shold be compensated in proporon to the o%ense s%ered is called A) compensatory ;sce. -) retribve ;sce. ,) relevant ;sce. $) distribve ;sce. #) pnive ;sce. Answer: A $i%: 1 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning 67) rmave acon sch as reverse discriminaon are examples of con=icts between A) compensatory and pnive ;sce. -) retribve and distribve ;sce. ,) distribve and compensatory ;sce. $) retribve and compensatory ;sce. #) pnive and retribve ;sce. Answer: , $i%: & 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking 79) According to ,avanagh4 sing the GGGGGGGG criterion4 to determine if padding an expense accont is ethical or not one wold ask if it opmies the sasfacons of all stakeholders. A) morality -) lity ,) rights $) ;sce #) relavism Answer: $i%: * 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: (e=ecve Thinking 71) 0sing the Bolden (le and never treang another hman being simply as a means bt always as an end are the categorical imperaves of A) Archie ,arroll. 22
-) !. @ohlberg. ,) Joseph -adaracco. $)
7*) #xplain the di%erence between +ilton riedmans and Archie ,arrolls approaches to the responsibilies of bsiness. Answer: -oth +ilton riedman and Archie ,arroll arge their posions based on the impact of socially responsible acons on a rms prots. riedman says that socially responsible acons hrt a rms e>ciency. ,arroll proposes that a lack of social responsibility reslts in increased government reglaons4 which redce a rms e>ciency. riedman arges that prot maximiaon is the rms primary responsibility. ,arroll arges that rms have economic4 legal4 ethical4 and discreonary responsibilies. $i%: * 'age (ef: *82 Topic: "ocial (esponsibilies of "trategic $ecision +akers AA,"-: #thical (easoning 7&) ?hat is stakeholder analysisC !ist the three8step process. Answer: "takeholder analysis is the idencaon and evalaon of corporate stakeholders. The rst step of the process is to idenfy the primary stakeholders Lthose who have a direct connecon with the corporaon and who have s>cient bargaining power to directly a%ect corporate acvies). The second step is to idenfy the secondary stakeholders Lthose who have only an indirect stake in the corporaon4 bt who are also a%ected by corporate acvies). The third step is to esmate the e%ect on each stakeholder grop from any parclar strategic decision. $i%: 1 'age (ef: 58 Topic: "ocial (esponsibilies of "trategic $ecision +akers
23
72) $iscss some reasons for nethical behavior by bsiness people. Answer: There are a nmber of reasons proposed for the nethical behavior by bsiness people. clt for one grop of people to nderstand anothers acons. $i%: * 'age (ef: 69861 Topic: #thical $ecision +aking AA,"-: #thical (easoning 73) ?hat is moral relavismC Answer: +oral relavism claims that morality is relave to some personal4 social4 or cltral standard and that there is no method for deciding whether one decision is beDer than another. +oral relavism cold enable a person to ;sfy almost any sort of decision or acon4 so long as it is not declared illegal. $i%: & 'age (ef: 6* Topic: #thical $ecision +aking AA,"-: #thical (easoning 75) $iscss @ohlbergs levels of moral development. Answer: @ohlberg proposes that a person progresses throgh three levels of moral development. The rst level is preconvenonal. This level is characteried by a concern for self. The second level is the convenonal which is characteried by consideraon of societys laws and norms. The principled level is the third. This level is characteried by a persons adherence to an internal moral code. The individal at this level looks beyond norms or laws to nd niversal vales or principles. $i%: & 'age (ef: 6& Topic: #thical $ecision +aking AA,"-: #thical (easoning 7) $iscss the three basic approaches to ethical behavior. Answer: The three basic approaches to ethical behavior are the litarian approach4 the individal rights approach4 and the ;sce approach. The litarian approach proposes that acons and plans shold be ;dged by their conseences. 'eople shold therefore behave in sch a way that will prodce the greatest benet to society and prodce the least harm or the lowest cost. The individal rights approach proposes that hman beings have certain fndamental rights that shold be respected in all decisions. The ;sce approach proposes that decision makers be eitable4 fair4 and imparal in the distribon of costs and benets to individals and grops. 24
$i%: & 'age (ef: 63 Topic: #thical $ecision +aking AA,"-: #thical (easoning
25
