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Questions and Answers
AIDS prevention groups saw GSK's use of WTO regulation as acting at which level of social responsibility?
AIDS prevention groups saw GSK's use of WTO regulation as acting at which level of social responsibility?
Economic
By providing anti-AIDS drugs at a fraction of their usual costs in Africa, GSK was acting at which level of social responsibility?
By providing anti-AIDS drugs at a fraction of their usual costs in Africa, GSK was acting at which level of social responsibility?
Discretionary
What kind of strategy did Coca-Cola use to respond to its social responsibility problems regarding water contamination in India?
What kind of strategy did Coca-Cola use to respond to its social responsibility problems regarding water contamination in India?
Reactive strategy
To respond to an ethical question about their advertisement, the broker used a(n) ____ strategy.
To respond to an ethical question about their advertisement, the broker used a(n) ____ strategy.
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Bayer AG implemented a(n) ____ strategy after being indicted for price-fixing.
Bayer AG implemented a(n) ____ strategy after being indicted for price-fixing.
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The social responsiveness strategy that could be considered essentially a public relations approach is the ____ strategy.
The social responsiveness strategy that could be considered essentially a public relations approach is the ____ strategy.
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A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems.
A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems.
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A company implementing a(n) ____ strategy would demonstrate the greatest willingness to meet or exceed society's expectations.
A company implementing a(n) ____ strategy would demonstrate the greatest willingness to meet or exceed society's expectations.
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Which of the following statements about ethics is true?
Which of the following statements about ethics is true?
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The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.
The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.
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Which of the following organizations are covered by the U.S. Sentencing Commission Guidelines?
Which of the following organizations are covered by the U.S. Sentencing Commission Guidelines?
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If a catalog retailer promised customers it would not sell their information and it did, the retailer would be guilty of invasion of privacy. Its sentence would be determined by ____.
If a catalog retailer promised customers it would not sell their information and it did, the retailer would be guilty of invasion of privacy. Its sentence would be determined by ____.
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The U.S. Sentencing Commission Guidelines impose smaller fines on companies that ____.
The U.S. Sentencing Commission Guidelines impose smaller fines on companies that ____.
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According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense?
According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense?
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What does it mean when the text says that the U.S. Sentencing Guidelines use a 'carrot and stick' approach?
What does it mean when the text says that the U.S. Sentencing Guidelines use a 'carrot and stick' approach?
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To create a compliance program that is acceptable under the U.S. Sentencing Guidelines, a company should ____.
To create a compliance program that is acceptable under the U.S. Sentencing Guidelines, a company should ____.
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When addressing issues of high ____, managers are more aware of the impact their decisions have on others.
When addressing issues of high ____, managers are more aware of the impact their decisions have on others.
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What term describes the degree of concern people have about an ethical issue?
What term describes the degree of concern people have about an ethical issue?
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Ethical intensity depends on all of the following EXCEPT ____.
Ethical intensity depends on all of the following EXCEPT ____.
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Ethical intensity depends in part upon ____.
Ethical intensity depends in part upon ____.
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What greater ethical intensity is associated with intentional theft and sale of defense secrets compared to pilferage?
What greater ethical intensity is associated with intentional theft and sale of defense secrets compared to pilferage?
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What produced strong ethical intensity regarding the closure of IAG's H. Freeman factory?
What produced strong ethical intensity regarding the closure of IAG's H. Freeman factory?
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Due to ____, the intentional pollution of a metropolitan water supply would have greater ethical intensity than insider trading.
Due to ____, the intentional pollution of a metropolitan water supply would have greater ethical intensity than insider trading.
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What does ethical intensity signify?
What does ethical intensity signify?
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What caused a much greater magnitude of consequences than predicted for Shell Oil Company's plan?
What caused a much greater magnitude of consequences than predicted for Shell Oil Company's plan?
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What are the three stages of moral development identified by Kohlberg?
What are the three stages of moral development identified by Kohlberg?
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At which level of Kohlberg's stages of moral development is Doug operating?
At which level of Kohlberg's stages of moral development is Doug operating?
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According to Kohlberg's model, people at the ____ make decisions based on selfish reasons.
According to Kohlberg's model, people at the ____ make decisions based on selfish reasons.
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According to Kohlberg's model, people at the ____ make decisions that conform to societal expectations.
According to Kohlberg's model, people at the ____ make decisions that conform to societal expectations.
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According to Kohlberg's model, people at the ____ use internalized ethical principles.
According to Kohlberg's model, people at the ____ use internalized ethical principles.
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To encourage more ethical decision making in an organization, managers should ____.
To encourage more ethical decision making in an organization, managers should ____.
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What is a written test that estimates employee honesty?
What is a written test that estimates employee honesty?
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Managers can use integrity tests to _____.
Managers can use integrity tests to _____.
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What type of integrity test indirectly estimates employee honesty?
What type of integrity test indirectly estimates employee honesty?
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What is a code of ethics?
What is a code of ethics?
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What should the Code of Ethics for members of the Society of American Foresters include?
What should the Code of Ethics for members of the Society of American Foresters include?
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Which of the following is an objective of ethics training?
Which of the following is an objective of ethics training?
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Which of the following are important factors in the creation of an ethical business climate EXCEPT ____.
Which of the following are important factors in the creation of an ethical business climate EXCEPT ____.
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What is the last step in the basic model of ethical decision making?
What is the last step in the basic model of ethical decision making?
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After identifying the problem in the basic model of ethical decision making, what is the next step?
After identifying the problem in the basic model of ethical decision making, what is the next step?
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What role did the former Oracle vice president play in reporting unethical behavior?
What role did the former Oracle vice president play in reporting unethical behavior?
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What problem is exemplified by operations vice president Jared Bowen's situation with Wal-Mart?
What problem is exemplified by operations vice president Jared Bowen's situation with Wal-Mart?
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The basic model of ethical decision making ____.
The basic model of ethical decision making ____.
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What did Mark Graf become alarmed about in relation to safety standards?
What did Mark Graf become alarmed about in relation to safety standards?
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Why is it often difficult for an employee to assume the role of whistleblower?
Why is it often difficult for an employee to assume the role of whistleblower?
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Which of the following statements about whistleblowing is true?
Which of the following statements about whistleblowing is true?
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Historically, what does economic responsibility mean?
Historically, what does economic responsibility mean?
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What is social responsibility?
What is social responsibility?
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What decision did Kowalski's Markets make regarding a property in a lower-class community?
What decision did Kowalski's Markets make regarding a property in a lower-class community?
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What did BP Amoco's CEO indicate about the company's commitment?
What did BP Amoco's CEO indicate about the company's commitment?
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What model would the indicted rubber chemical manufacturers likely use to justify their actions?
What model would the indicted rubber chemical manufacturers likely use to justify their actions?
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What does the shareholder model hold regarding social responsibility?
What does the shareholder model hold regarding social responsibility?
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According to Milton Friedman, what undermines market efficiency?
According to Milton Friedman, what undermines market efficiency?
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What are various persons or groups with a legitimate interest in a company's actions called?
What are various persons or groups with a legitimate interest in a company's actions called?
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Which of the following is NOT a stakeholder group that an organization must satisfy?
Which of the following is NOT a stakeholder group that an organization must satisfy?
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In the context of Kowalski's Markets expansion, who is an example of a primary stakeholder group?
In the context of Kowalski's Markets expansion, who is an example of a primary stakeholder group?
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The two general categories of stakeholders are ____ stakeholders and ____ stakeholders.
The two general categories of stakeholders are ____ stakeholders and ____ stakeholders.
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What are primary stakeholders?
What are primary stakeholders?
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When Coca-Cola was ordered to stop production due to pesticide concerns, the Indian government served as a(n)
When Coca-Cola was ordered to stop production due to pesticide concerns, the Indian government served as a(n)
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According to the stakeholder model, what is management’s most important responsibility?
According to the stakeholder model, what is management’s most important responsibility?
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Which of the following is an example of a stakeholder group that an organization must satisfy?
Which of the following is an example of a stakeholder group that an organization must satisfy?
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According to the stakeholder model, which primary stakeholder group is theoretically most important?
According to the stakeholder model, which primary stakeholder group is theoretically most important?
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Why are secondary stakeholders important to a company?
Why are secondary stakeholders important to a company?
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What are secondary stakeholders?
What are secondary stakeholders?
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Under the stakeholder model, who would not engage regularly with the company but can still affect perceptions?
Under the stakeholder model, who would not engage regularly with the company but can still affect perceptions?
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Which of the following is a secondary stakeholder group?
Which of the following is a secondary stakeholder group?
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What role were the Coca-Cola products bottled in India playing before government intervention?
What role were the Coca-Cola products bottled in India playing before government intervention?
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Which of the following is an example of a secondary stakeholder group for Video Arts?
Which of the following is an example of a secondary stakeholder group for Video Arts?
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What does the example of Shell's Brent Spar illustrate about secondary stakeholders?
What does the example of Shell's Brent Spar illustrate about secondary stakeholders?
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What is the responsibility of the U.S. Postal Service concerning ethical advertising?
What is the responsibility of the U.S. Postal Service concerning ethical advertising?
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What responsibility did the rubber chemical manufacturers ignore?
What responsibility did the rubber chemical manufacturers ignore?
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____ are the expectations that a company will voluntarily serve a social role beyond its economic responsibilities.
____ are the expectations that a company will voluntarily serve a social role beyond its economic responsibilities.
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When are companies not considered unethical?
When are companies not considered unethical?
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What illegal action can companies that buy ramin wood in Malaysia be accused of?
What illegal action can companies that buy ramin wood in Malaysia be accused of?
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Which of the following statements about social responsibility is true?
Which of the following statements about social responsibility is true?
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What does Lever's Fair & Lovely emphasize regarding its responsibility?
What does Lever's Fair & Lovely emphasize regarding its responsibility?
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Study Notes
Ethics and Responsibility
- Ethics are defined as a set of moral principles guiding what is considered right and wrong.
- The U.S. Sentencing Commission Guidelines hold companies accountable for illegal actions committed by employees, regardless of management's awareness.
- All organizations fall under the U.S. Sentencing Commission Guidelines for ethical accountability and consequences.
- Violation of privacy, like selling customer information after a promise not to, incurs consequences defined by these Guidelines.
Compliance and Ethical Intensity
- Companies that implement compliance programs benefit from reduced fines under the U.S. Sentencing Guidelines.
- Determining the seriousness of an ethical breach can involve assessing the loss experienced by victims.
- The concept of "ethical intensity" refers to the level of concern and awareness surrounding ethical issues by decision-makers.
Influences on Ethical Decisions
- Ethical intensity grows when decisions have immediate, significant consequences or when individuals are psychologically close to those affected.
- Factors such as temporal immediacy and magnitude of influence affect ethical intensity.
- Situations causing immediate ethical implications, like environmental pollution, rate higher in ethical intensity than isolated incidents like minor insider trading.
Kohlberg's Stages of Moral Development
- Kohlberg outlines three stages of moral development: pre-conventional, conventional, and post-conventional.
- Individuals at the pre-conventional level make decisions based on self-interest, while those at the conventional level conform to societal norms.
- Post-conventional individuals apply their internalized ethical principles when making decisions.
Promoting Ethical Decision Making
- Organizations should adopt various strategies, including establishing comprehensive codes of ethics and conducting ethics training to foster a more ethical workplace.
- Integrity tests, both overt and personality-based, can help in selecting ethical employees.
Stakeholders and Responsibilities
- Primary stakeholders are essential for an organization’s survival, including employees, customers, and suppliers, while secondary stakeholders can influence public opinion.
- Economic responsibility focuses on profit-making, while ethical and discretionary responsibilities encourage businesses to address societal needs.
Whistleblowing
- Whistleblowers often face challenges and repercussions for reporting unethical behavior, despite their actions being crucial for accountability.
- Public accountability mechanisms may protect whistleblowers, but fear of personal consequences often deters such actions.
Corporate Social Responsibility (CSR)
- CSR encompasses a business’s obligations to make decisions benefiting society beyond legal compliance.
- The shareholder model prioritizes profit maximization while the stakeholder model advocates for balancing multiple stakeholder interests for long-term success.
- Discretionary responsibilities reflect a company’s voluntary actions to serve societal roles beyond its economic, legal, and ethical obligations.
Reactive and Proactive Strategies
- Companies may adopt reactive strategies in response to crises or criticisms rather than implementing proactive measures that align with ethical responsibilities.
- Approaches to handling ethical issues vary, with some companies employing defensive strategies to mitigate public relations damage.
These notes cover essential concepts and principles related to ethics, responsible decision-making, stakeholder dynamics, and corporate behavior, crucial for understanding the framework of ethical practices in management.
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Description
This quiz explores the fundamental concepts of ethics and compliance in organizations, emphasizing the role of the U.S. Sentencing Commission Guidelines. It examines the importance of ethical accountability, ethical intensity, and the influences on decision-making related to ethical issues. Test your understanding of how ethical breaches and compliance programs impact organizations.