1. According to the Corporate Social Responsibilities (CSR) pyramid, the economic responsibility is considered to be of primary importance to organizations.
2. According to the Corporate Social Responsibilities (CSR) pyramid, the ethical responsibility is a societal expectation that is not necessarily codified into law.
3. In the legal perspective, social responsibility is primarily a means to avoid economic harm that can be imposed by multiple stakeholders.
4. In this example of a conflict of interest, ________ conducted a series of off-the-books partnerships that were used to hide the organization’s debt and inflate its stock price. The partnerships were managed by the company’s executives who stood to profit the most from the transactions.
a) Merrill Lynch
b) Enron
c) Citicorp
d) Adelphia
5. Referring to the Corporate Social Responsibility (CSR) pyramid, how do legal responsibilities differ from ethical responsibilities? Provide specific examples to support your distinction. Enter your answer in the box.
6. The idea that consumers have the right to safety, right to be heard, right to choose, and right to be informed came from ____________ in ________.
a) Theodore Roosevelt; 1930.
b) The Food and Drug Act; 1906.
c) John F. Kennedy; 1962.
d) George W. Bush; 2004.
7. In this example of lack of product safety, _________ waited nine years to alert its customers that their birth control product causes severe pelvic inflammatory disease that may lead to miscarriages or severe child birth defects.
a) Johnson & Johnson
b) Merck
c) A.H. Robbins
d) Adelphia
8. In a classic example of failing to protect its employees, ___________ knew asbestos caused cancer as early as 1930. However, the company lied to its employees and used several tactics to cover-up the product’s effects.
a) Johnson & Johnson
b) A.H. Robbins
c) Manville Corporation
d) McWane, Inc.
9. In this classic example of a company treating its employees responsibly, ____________ was the first company to offer company-paid vacations, stock ownership plans, employee suggestion program, and the guaranteed employment plan. This company has not laid off employees in the United States since 1948.
a) McWane, Inc.
b) Lincoln Electric
c) Scott Paper Company
d) Manville Corporation
10. Despite a terrible disaster, __________ demonstrated its ability to act swiftly and compassionately for multiple shareholder groups affected by the chemical leak. The CEO even flew to the site one day after the incident to lend support.
a) Merck
b) Exxon
c) Union Carbide
d) Manville Corporation
11. Why did the US Sentencing Commission begin to focus on the ethical culture of the organization in 2004?
a) Researchers had just recently introduced the idea of an “ethical culture” in 2002.
b) More and more consultants were discussing “ethical culture” in their programs.
c) Prior to the change, organizations used formal programs as “window dressing”.
d) None of the above
12. Weak organizational cultures are: ____
a) desirable if an organization has many subcultures.
b) desirable if an organization wants diversity of thought and action.
c) desirable if an organization wants behavioral consistency.
d) undesirable in all situations.
13. The “moral person” component of ethical leadership:___
a) Tells employees how the leader expects them to behave.
b) Tells employees how the leader is likely to behave.
c) Shows that ethics and values are an important part of the leader’s message.
d) Demonstrates a reputation for ethical leadership among employees.
14. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a weak “moral person” and a strong “moral manager.”
a) Unethical leader
b) Ethical leader
c) Ethically neutral leader
d) Hypocritical leader
15. Which of the following is false?___
a) The ethics officer is typically a middle-level manager.
b) The ethics officer typically reports directly to the CEO.
c) The ethics officer can be hired from inside or outside of the firm.
d) The ethics officer can also be called the “director of ethics” or “director of internal audit.”
16. ___________ understand and follow the rules and policies of the organization. They also have good ethical compasses.
a) Grenades
b) Loose cannons
c) Good cannons
d) Good soldiers
17. ___________ may have good ethical compasses, but they don’t know their corporation’s policies. Without guidance, ethics may not even be a consideration.
a) Loose ammo
b) Loose cannons
c) Misguided cannons
d) Grenades
18. ___________ have their own agenda and lack any company or professional loyalty.
a) Deserters
b) Misguided cannons
c) Grenades
d) Toxic ammo
19. When designing a policy manual:___
a) It is important to use legalese to demonstrate the formality of the document.
b) Important policies should be communicated in short brochures.
c) Policies should be alphabetized to communicate that all policies are important.
d) Include policies from all departments so the manual is standardized.
20. When communicating a code of conduct:___
a) Focus on values that should guide decision making.
b) Provide the same code of conduct to all departments regardless of its length.
c) Refrain from changing the code of conduct regularly.
d) Fewer employees will read the code if it is short.
21. The __________ approach to formal corporate ethics initiatives is proactive and inspirational.
a) Rules
b) Compliance
c) Principles
d) Values
22. The _________ approach to formal corporate ethics initiatives focuses on required behavior or obeying the letter of the law.
a) Rules
b) Compliance
c) Principles
d) Values
23. Civil society refers to:
a) Countries with a certain type of governance structure.
b) Groups interested in business ethics (such as the media, not-for-profit organizations, academic institutions, and religious and political groups).
c) Government agencies in foreign countries.
d) Countries that share the same culture, customs, and norms.
24. ____________ reflects acceptance of inequality and respect for social status or class boundaries.
a) Individualism
b) Collectivism
c) High power distance
d) Low power distance
25. Reebok Corporation has made human rights a hallmark of its corporate strategy, culture, and identity. Briefly describe at least two of the ways in which the company addresses international human rights issues. Enter your answer in the box.
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