Chapter 6
Social ________ is when a firm engages in social actions because of its duty to meet certain
economic and legal responsibilities.
screening
responsibility
entrepreneurship
responsiveness
obligation
Social obligation is when a firm engages in social actions because of its obligation to meet certain
economic and legal responsibilities.
Heineken's "Enjoy Heineken Responsibly" campaign is a global initiative to inform and educate
consumers about the safe and responsible consumption of alcohol. This is an example of social
________.
responsibility
screening
obligation
responsiveness
entrepreneurship
Social responsiveness is when a firm engages in social actions in response to some popular social need,
such as drunk drinking or underage drinking.
According to the "four shades of green" approach to addressing the environment, a company that
responds to customers' demands in terms of environmentally friendly products has adopted the
________ approach.
legal
market
activist
enlightened
stakeholder
As an organization becomes more sensitive to environmental issues, it may adopt the market approach
and respond to the environmental preferences of customers.
Which of the following organizations developed guidelines for promoting environmental
sustainability and disseminates the sustainability reports of green companies worldwide?
The GRI developed a comprehensive Sustainability Reporting Framework and promotes the use of
sustainability reporting as a way for companies to become more sustainable.
OSHA
International Organization for Standardization
World Economic Forum
Environmental Protection Agency
Global Reporting Initiative
At which stage of moral development is morality defined as obeying rules and avoiding negative
personal consequences?
Stage 4
Stage 3
Stage 5
Stage 1
Stage 2
At the earliest stage of moral development, a person's choice between right or wrong is based on
personal consequences from outside sources, such as physical punishment, reward, or exchange of
favors.
The degree to which people, themselves, believe they can control their own fates or destinies as
well as accept responsibility for any consequences is referred to as ________.
internal locus of control
external ego strength
values
external locus of control
internal ego strength
Locus of control is the degree to which people believe they control their own fate. People with an internal
locus of control believe they control their own destinies and are likely to take responsibility for
consequences because their internal standards guide their behavior.
A formal statement of an organization's values and the ethical rules it expects employees to
follow is referred to as a ________.
mission statement
policy manual
social audit
code of ethics
vision statement
A code of ethics is a formal statement of an organization's primary values and the ethical rules it expects
employees to follow.
Which of the following is a true statement regarding companies' codes of ethics?
code of ethics should be broadly written and subject to interpretation by employees, depending on the
situation.
When an employee does something unethical, managers should punish the individual privately.
An effective code of ethics will automatically improve an organization's ethical climate.
Once a well-written code of ethics is in place, further action is not needed by the company.
Doing business ethically requires a commitment from managers at all levels, but especially the top level.
Top managers are the ones who uphold the shared values and set the cultural tone, and they are role
models in terms of both words and actions.
A whistle-blower is an individual who raises ethical concerns or issues to others.
social activist
ombudsman
whistle-blower
monitor
social entrepreneur
Social ________ is characterized by an individual or organization who seeks out opportunities to
improve society by using practical, innovative, and sustainable approaches.
responsibility
screening
responsiveness
obligation
entrepreneurship
A social entrepreneur is an individual or organization who seeks out opportunities to improve society by
using practical, innovative, and sustainable approaches.
Barnes Plating pays employees minimum wage and offers only those employee benefits that it is
legally mandated to provide. This is an example of social ________.
Obligation
In response to the growing popularity of social media among at-risk youth, a software gaming
company uses a variety of social media outlets to discourage gang and youth violence. This is an
example of social ________.
Responsiveness
The ________ view of social responsibility holds that a firm's first and only obligation is to
maximize profits for its shareholders.
Classical
Johnson Brothers Manufacturing believes that, although making a profit is important, it also has
an obligation to its customers, employees, suppliers, and society as a whole. This demonstrates
the ________ view of social responsibility.
socioeconomic
Social ________ is defined as a business's intention, beyond its legal and economic obligations,
to do the "right thing" and act in ways that are good for society.
Responsibility
Most research focusing on social responsibility and a firm's economic performance shows
________ relationship exists.
A small positive
Which of the following is LEAST likely to be a valid reason for a company to be socially
responsible?
Pursuing social goals dilutes the business's primary purpose of economic productivity.
HD Consulting is very involved in the local community. The firm sponsors a fundraiser to help the
local humane shelter, and top managers donate a considerable amount of time as corporate
mentors, helping new entrepreneurs get started so they can provide jobs in the community. As a
result, HD has low employee turnover, loyal customers, and increasing revenue. This is an
example of how social ________ can benefit a company in the long run.
responsibility
A company makes eco-friendly dog toys, mats, and beds; uses recycled paper and soy-based ink
in its packaging; and encourages customers to return used products for recycling. According to
the "four shades of green" approach to addressing the environment, which approach is the
company using?
Activist
An organization that wants to comply with ________ requirements must develop a total
management system for meeting environmental challenges.
ISO 14000
Brite Plating doesn't dump contaminated water from its electroplating process into the storm
sewers because it is legally required to refrain from doing this. According to the "four shades of
green" approach to addressing the environment, which approach is the firm using?
legal
To meet the growing demands of its customers, a local fast food restaurant changes its packaging
so that it uses less non-biodegradable materials. According to the "four shades of green"
approach to addressing the environment, which approach is the restaurant using?
Market
An employee comes to work on time every day only because he knows that his pay will be docked
if he is caught coming in late. However, when he knows his boss will be gone that day, he's
frequently late. What stage of moral development does this represent?
Stage 1
Which of the following statements best describes moral development at the pre-conventional
stage?
The individual views right vs. wrong in terms of the consequences of the action.
You choose not to get drunk at a party because you know your friends will think less of you and
that would make you feel badly about yourself. What stage of moral development does this
represent?
Stage 3
Tyrone has a plaque on the wall of his office that reads, "I am the master of my destiny." Which of
the following does this plaque best illustrate?
Locus of control
In which level of moral development do individuals define moral values apart from the authority of
the groups to which they belong or society in general?
Principled
Two personality variables have been found to influence an individual's actions according to his or
her beliefs about what is right or wrong: locus of control and ________.
ego strength
Basic convictions about what is right and what is wrong are referred to as ________.
Values
According to research, which of the following is the single most important influence on an
employee's decision to act ethically or unethically?
The behavior of managers
Which of the following is the best description of a code of ethics?
A formal statement of an organization's primary values and the ethical rules it expects its employees to
follow.
Cisco created an interactive program that presents employees with different scenarios about
sales practices, procurement issues, and other common dilemmas. Similar to America's Got
Talent,
the scenarios are evaluated by "judges" and employees are asked to vote, making judgment calls
on each situation. Each episode ends with the Cisco compliance officer providing the answer and
an explanation. This is an example of ________.
ethics training
One of the best ways to encourage ethical and honest behavior in an organization is to conduct
________.
pre-employment integrity tests
Jeff Mendelsohn is the founder of New Leaf Paper, a company that works closely with paper mills
to use recycled waste paper and environmentally friendly bleach to create high-quality stock that
is used to print magazines. This is an example of social ________.
entrepreneurship
Heather discovered that her boss was falsifying reports to the EPA about the release of harmful
chemicals into the community's water supply. She confronted her boss, who told her to mind her
own business. She then contacted the EPA and reported what she had learned. Heather would be
described as a(n) ________.
whistleblower