罗宾斯管理学第五章练习题及答案

Chapter 5 – Social Responsibility and Managerial Ethics True/False Questions A MANAGER’S DILEMMA 1. Digital Mafia Entertainment is a company that focuses on the legal approach to environmental issues. False (moderate) 2. Darien Dash, the founder of Digital Mafia Entertainment, can be described as having an external locus of control. False (moderate) 3. Digital Mafia Entertainment’s focus on social responsibility is best described as social responsiveness. True (moderate) 4. The stage of moral development that best describes Darien Dash, the founder of Digital Mafia Entertainment, is conventional. False (moderate) WHAT IS SOCIAL RESPONSIBILITY? 5. The classical view of organizational social responsibility is that management’s only social respo nsibility is to maximize profits. True (moderate) 6. The most outspoken advocate of the classical view of organizational social responsibility is Milton Friedman. True (easy) 7. In the socioeconomic view of organizational social responsibility, maximizing profits is a company's second priority. True (moderate) 8. A recent survey found that most business owners would continue socially responsible practices even if they found these practices cutting into profits. True (moderate) 9. Socially responsible businesses tend to have less secure long-run profits. False (difficult) 10. One argument against businesses championing social responsibility issues is that businesses already have too much power. True (difficult) 11. A business has fulfilled its social obligation when it meets economic, legal, and ethical obligations. False (moderate) 12. The difference between an organization's social obligation and social responsiveness is the legal aspect. False (moderate) SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE 13. Research has found that corporations' social responsibility is unrelated to future financial performance, False (moderate) VALUES-BASED MANAGEMENT 14. Values-based management is an approach to managing in which managers establish, promote, and practice an organization's shared values. True (easy) 15. Though the outcomes are not perfectly measured, the majority of research studies show a positive relationship between corporate social involvement and economic performance. True (easy) 16. A company's shared values act as guideposts for managerial decisions and actions. True (moderate) 17. Shared corporate values impact many issues, but not the marketing function. False (moderate) 18. Values-based management is based on the close link between an organization's decisions and activities and its impact on the natural environment. False (moderate) 19. Affluent societies account for more than 95% of the world's energy and resource consumption. False (moderate) THE ―GREENING‖ OF MANAGEMENT 20. The market approach to going green is when organizations respond to multiple demands of stakeholders. False (moderate) 21. The activist approach to going green is when an organization looks for ways to respect and preserve the earth and its natural resources. True (moderate) 22. A shareholder is any constituency in the external environment that is affected by an organization's decisions and policies. False (easy) 23. A union is an example of an organizational stakeholder. True (difficult) 24. At stage 3 of an organization's expansion of social responsibility, the manager will promote the stockholders' interest by seeking to minimize costs and maximize profits. False (moderate) MANAGERIAL ETHICS 25. Ethics refers to the rules and principles that define right and wrong conduct. True (moderate) 26. In the rights view of ethics, decision-makers seek to impose and enforce rules fairly and impartially. False (moderate) 27. The integrative social contracts theory proposes that decisions should be made on the basis of empirical and normative factors. True (difficult) 28. Studies have shown that most business people continue to hold utilitarian attitudes toward ethical behavior. True (moderate) 29. In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or society in general. False (moderate) 30. People proceed through the six stages of moral development in lockstep fashion. True (moderate) Multiple Choice A MANAGER’S DILEMMA 31. Which of the following approaches to environmental issues is best represented by Digital Mafia Entertainment? a.legal b.market (moderate) c.stakeholder d.activist 32. At which stage of moral development is Darien Dash, the founder of Digital Mafia Entertainment? a.preconventional b.conventional c.preprincipled d.principled (moderate) 33. Which of the following best represents Digital Mafia Entertainment’s focus on social responsibility? a.social obligation b.social responsiveness (moderate) c.preconventional d.legal e.internal 34. Which of the following best describes Darien Dash’s locus of control? a.internal (moderate) b.external c.transparent d.vertical e.horizontal WHAT IS SOCIAL RESPONSIBILITY? 35. Which of the following is associated with the classical view of social responsibility? a. economist Robert Reich b. concern for social welfare c. stockholder financial return (moderate) d. voluntary activities e. ethical behaviors 36. According to Milton Friedman, which of the following is not a potential result of spending an organization's resources on "social good"? a. redistribution of assets b. reduced profits and dividends c. losses by employees d. lower prices of goods (moderate) e. lower sales 37. The socioeconomic view of corporate responsibility suggests that ______________. a. stockholders are the only responsibility. b. corporations are independent entities. c. maximizing profits is the first priority while social responsibility is the second priority. d. corporations are responsible to the state and its citizens. (moderate) e. organizations have an ethical but no legal responsibility to anyone except stockholders. 38. In support of the socioeconomic view of corporate social responsibility, ______________ percent of business owners said they would continue socially responsible practices even if it lowered profits. a. 25 b. 45 c. 58 d. 68 (easy) e. 74 39. ______________ is defined as a business firm’s obligation, beyond that required by law and econ omics, to pursue long-term goals that are good for society. a.Social obligation b.Social responsibility (moderate) c.Social screening d.Value-based management e.Social autonomy 40. The belief that long-run profits are the normal result of strong community relations and business image is known as which argument for social responsibility? a. public image b. balance of responsibility and power c. long-run profits (moderate) d. stockholder interests e. possession of resources 41. The belief that business should be responsible because such actions are right for their own sake is known as which argument for social responsibility? a. public expectation b. ethical obligation (moderate) c. public image d. discouragement of further government regulation e. balance of responsibility and power 42. The belief that businesses that help solve difficult social problems create a desirable community and attract and keep skilled employees is known as which argument for social responsibility? a. ethical obligation b. public image c. better environment (moderate) d. possession of resources e. superiority of prevention over cures 43. Which argument for social responsibility puts forth the belief that by becoming socially responsible businesses can expect to have less government regulation? a. discouragement of further government regulation (moderate) b. stockholder interests c. public expectations d. public image e. possession of resources 44. Which argument for social responsibility puts forth the belief that an imbalance between the large amount of power held by firms and their responsibility is harmful to the public good? a. public expectation b. ethical obligation c. public image d. discouragement of further government regulation e. balance of responsibility and pow er (easy) 45. The belief that a socially responsible company will be viewed as less risky, and therefore have higher stock value, is known as which argument for social responsibility? a. long-run profits b. balance of responsibility and power c. stockholder interests (easy) d. possession of resources e. superiority of prevention over cures 46. The belief that businesses have the financial, technical, and managerial resources to support needed public projects is known as which argument? a. public expectations b. ethical obligations c. public image d. better environment e. possession of resources (moderate) 47. The belief that social problems should be addressed before they reduce a firm's goal of producing goods and services is known as which argument for social responsibility? a. public expectations b. long-run profits c. stockholder interests d. possession of resources e. superiority of prevention over cure (moderate) 48. The belief that businesses are being socially respons ible when they attend only to economic interests is known as which argument against a firm's being socially responsible? a. dilution of purpose b. violation of profit maximization (easy) c. costs d. too much power e. lack of accountability 49. The belief that the pursuit of social goals restricts economic productivity, its primary purpose, and, therefore, may cause society to suffer, is known as which argument against a firm's being socially responsible? a. violation of profit maximization b. costs c. too much power d. dilution of purpose (moderate) e. lack of accountability 50. The belief that the costs of social activity are passed on as higher prices to consumers is known as which argument against a firm's being socially responsible? a. violation of profit maximization b. dilution of purpose c. costs (moderate) d. lack of skills e. lack of accountability 51. The belief that firms' pursuing social goals would give them too much power is known as what argument in opposition to a firm's being socially responsible? a. costs b. lack of skills c. lack of broad public support d. too much power (moderate) e. dilution of purpose 52. The belief that business leaders are poorly qualified to address social issues is known as what argument against a firm's being socially responsible? a. dilution of purpose b. too much power c. lack of accountability d. lack of skills (moderate) e. lack of broad public support 53. The belief that business leaders should not direct social policy because there is no direct line of social accountability to the public is known as what argument against a firm's being socially responsible? a. dilution of purpose b. costs c. too much power d. lack of broad public support e. lack of accountability (moderate) 54. Which of the following terms refers to when a firm meets its economic and legal responsibilities? a. social responsibility b. social obligation (moderate) c. social responsiveness d. social duty e. social standard 55. The aspect that differentiates social responsibility from other similar concepts is that it ______________. a. adds an ethical imperative. (easy) b. adds a legal imperative. c. adds a moral imperative. d. considers social norms. e. refers to adapting to changing societal conditions. 56. When a company does not discriminate in the hiring of minorities, it is meeting its ______________. a. social obligations. (difficult) b. social responsibilities. c. moral obligations. d. ethical obligations. e. fairness obligations. 57. When a firm advertises that it only uses recycled paper products, it is ______________. a. meeting its social obligation. b. meeting social responsibilities. c. being socially responsive. (difficult) d. paying attention to the bottom lin e. e. attempting to defraud consumers. 58. Social responsiveness, when compared to social responsibility is seen as ______________. a. more philosophical. b. more intangible. c. action oriente d. (moderate) d. unchanging to social norms. e. meeting its minimum requirements. SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE 59. One should be cautious in the interpretation, but a summary of more than a dozen studies analyzing the relationship between organizational social responsibility and economic performance provides what conclusion? a.Being socially responsible causes good economic performance. b.Good economic performance allows firms to be socially responsible. c.There is a positive relationship betw een corporate social involvement and economic performance. (difficult) d.Corporate social involvement tends to devalue stock price in the long run. e.Corporate social involvement tends to result in increased net income but lower stock prices. 60. Overall, does the evidence suggest that socially responsible behaviors by organizations lower a firm's economic performance? a. Yes b. No (easy) c. There is not enough evidence at this time to know for sure. d. It depends on the activity with which the organization is involved. e. It depends on the industry. 61. Applying social criteria to investment decisions is a term used to describe _____________. a.Social obligation b.Social responsibility c.Social screening (moderate) d.Value-based management e.Social autonomy VALUES-BASED MANAGEMENT 62. ______________ is an approach to managing in which managers establish, promote, and practice what an organization stands for and believes in. a. Cause-related marketing b. Values-based management (moderate) c. Ethical marketing d. Belief management e. Value management 63. A corporation's ____________ act(s) as guideposts for managerial decisions and actions. a. shared values (moderate) b. team spirit c. marketing efforts d. industry standards e. stakeholders 64. Which of the following is not a purpose of shared corporate values? a.They serve as a guidepost for managerial decisions and actions. b.They impact employee behavior. c.They communicate organizational expectations. (moderate) d.They influence marketing efforts. e.They decrease competition between organizations. 65. Which of the following is true regarding shared corporate values? a.Individuals adapt easily to shared corporate values. b.Top management dictates shared corporate values. c.It is not easy to establish shared corporate values. (moderate) d.Most corporations will be unable to successfully establish shared corporate values. e.Shared corporate values negatively impact team spirit. 66. A survey of Fortune 1000 companies found that ______________ percent believed they needed to become more socially responsible to remain competitive. a.50 b.70 c.85 d.90 e.95 (moderate) 67. Which of the following is not suggested by your text for creating a good corporate values statement? a.Make the statement long enough to include all aspects of corporate values. (difficult) b.Involve everyone in the company. c.Allow customizing of the values by individual departments or units. d.Leave out religious referenc e. e.Challenge it. THE ―GREENING‖ OF MANAGEMENT 68. The recognition of the close link between an organization's decisions and activities and its impact on the natural environment is referred to as ______________. a.corporate social responsibility. b.social responsiveness. c.shared corporate values. d.greening of management. (moderate) e.stakeholder self-interest. 69. Natural resource depletion, global warming, pollution, and toxic wastes are examples of ______________. a.social problems. b.global environmental problems. (easy) c.social responsiveness. d.competitive strategies. e.shared corporate values. 70. Affluent societies account for ______________ of the world's energy and resource consumption. a. over 75% (easy) b. half c. 20% d. less than 40% e. over 90% 71. Which of the following is not an approach organizations can take with respect to environmental issues? a. legal b. market c. stakeholder d. responsibility (moderate) e. activist 72. The ______________ approach to environmental issues is when an organization obeys rules and regulations but exhibits little environmental sensitivity. a. legal (moderate) b. market c. stakeholder d. responsibility e. activist 73. Which of the following approaches toward environmental issues is a good illustration of social obligation? a.legal approach (moderate) b.market approach c.stakeholder approach d.activist approach 74. The ______________ approach to environmental issues is when organizations respond to environmental preferences of their customers. a. legal b. market (moderate) c. stakeholder d. responsibility e. activist 75. Which of the following approaches toward environmental issues exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility? a.legal approach b.market approach c.stakeholder approach d.activist approach (moderate) 76. The ______________ approach to environmental issues is when an organization chooses to respond to multiple demands made by groups in the organization's external environment. a. legal b. market c. stakeholder (moderate) d. responsibility e. activist 77. Stakeholders, according to the progressive point of view, would include which of the following? a.only owners b.only stockholders c.only customers d.only suppliers e.any individual or group that is impacted by the organization's decisions and policies (easy) 78. According to the model of the expansion of an organization's social responsibility, stage two adds an interest in ______________. a.stockholders. b.human resource concerns. (difficult) c.safe products. d.fair prices. e.high-quality products. 79. According to the model of the expansion of an organization's social responsibility, stage three is noted by an added interest in ______________. a.stockholders. b.human resource concerns. c.owners. d.saf e products. (moderate) e.profit maximization. 80. According to the model of the expansion of an organization's social responsibility, stage four is noted by an added interest in ______________. a.stockholders. b.human resource concerns. c.good supplier relations. d.fair prices. e.society as a whole. (moderate) MANAGERIAL ETHICS 81. Which of the following is a basic definition of ethics? a. moral guidelines for behavior b. rules for acknowledging the spirit of the law c. rules or principles that define right and wrong conduct (moderate) d. principles for legal and moral development e. There is no way to define ethics. 82. Which of the following is NOT mentioned in the text as one of the four perspectives on business ethics? a.utilitarian view b.principled view (difficult) c.rights view d.theory of justice view e.integrative social contracts theory 83. The utilitarian view of ethics is based on which of the following? a. decisions based on their outcomes or consequences (moderate) b. respect and protection of individual liberties and freedoms c. the imposition and enforcement of fair and impartial rules d. the existing ethical norms in industries and corporations e. the process used to determine the distribution of resources 84. Which of the following encourages efficiency and productivity and is consistent with the goal of profit maximization? a.utilitarian view (moderate) b.principled view c.rights view d.theory of justice view e.integrative social contracts theory 85. The rights view of ethics is based on which of the following? a. decisions based on their outcomes or consequences b. the imposition and enforcement of fair and impartial rules c. respect and protection of individual liberties and freedoms (moderate) d. the process used to determine the distribution of resources e. the existing ethical norms in industries and corporations 86. The theory of justice view of ethics is based on which of the following? a. the process used to determine the distribution of resources b. the existing ethical norms in industries and corporations c. decisions based on their outcomes or consequences d. the imposition and enforcement of fair and impartial rules (difficult) e. respect and protection of individual liberties and freedoms 87. The integrative social contracts theory of ethics is based on which of the following? a. the process used to determine the distribution of resources b. decisions based on their outcomes or consequences c. the imposition and enforcement of fair and impartial rules d. the existing ethical norms in industries and corporations (difficult) e. respect and protection of individual liberties and freedoms 88. Studies have shown that most business people tend to hold which attitude toward ethical behavior? a. the utilitarian view (moderate) b. the rights view c. the theory of justice view d. the integrative social contract theory view e. No single view is dominant among business people. 89. In the ____________ level of moral development, individuals respond to notions of right or wrong when there are personal consequences involved. a. preconventional (easy) b. conventional c. principled d. arrival e. ethical 90. Reasoning at the ______________ level of moral development indicates that moral values reside in maintaining the conventional order and the expectations of others. a. preconventional b. conventional (easy) c. principled d. arrival e. ethical 91. At the ______________ level of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or society in general. a. preconventional b. conventional c. principled (easy) d. arrival e. ethical 92. A personality measure of a person's convictions is ______________. a.moral development. b.ego strength. (moderate) c.locus of control. d.social desirability. e.self-image. 93. ______________ is a personality attribute that measures the degree to which people believe they control their own fate. a.Ego strength b.Locus of control (easy) c.Social responsibility d.Social obligation e.Social autonomy 94.. A manager who believes that "she worked hard and met the productivity goals despite bad weather," is displaying what individual characteristic? a.strong self-image b.high moral development c.low impression management d.internal locus of control (moderate) e.low social desirability 95. Research continues to show that the strongest single influence on an individual's own ethical or unethical behavior is ______________. a.peer pressure. b.rules. c.behavior of superiors. (moderate) d. a code of ethics. e.religion. 96. Which of the following organizational structural characteristics would most likely result in managerial ethical behavior? a.few job descriptions b.formal rules (moderate) c.mixed messages from authority figures d.performance appraisal systems focused on outcomes e.bonuses based on achievement of quotas 97. Which of the following is true concerning the impact of organizational culture on ethical behavior? a.Low conflict tolerance leads to ethical behavior. b. A strong culture will support high ethical standards. (moderate) c.Conflict tolerance is related to unethical behavior. d. A culture that is high in control tends to encourage unethical behavior. e.None of the above is true. 98. Issue intensity, as an issue that affects ethical behavior, is described as which of the following? a.The characteristics of the ethical issue itself. (difficult) b.The level of control and influence one has over the event. c.The cultural strength of the organization. d.The organizational structur e. e.None of the above 99. Which of the following is not one of the six characteristics that are relevant in determining issue intensity? a.How great a harm (or benefit) is done to victims (or beneficiaries) of the ethical act in question? b.What is the probability that your act will be discovered? (moderate) c.How much consensus is there that the act is evil (or good)? d.What is the length of time between the act in question and its expected consequences? e.How large is the concentrated effect of the ethical act on the people involved? 100. The 1977 Foreign Corrupt Practices Act a.makes it illegal for U.S. firms to make any cash payment for deferential treatment in a foreign transaction. b.makes it illegal for U.S. firms to make any payment over 5% of total cost toward administrative overhead in foreign transactions. c.makes it illegal for U.S. firms to knowingly corrupt a foreign official. (difficult) d.makes it illegal for U.S. firms to make any payment to foreign clerical or ministerial employees in exchange for service. e.was repealed in 1992. 101. Which of the following is not a way for management to reduce unethical behavior? a.Select individuals with high ethical standards. b.Establish codes of conduct. c.Provide ethics training. d.Monitor employee telephone calls. (moderate) e.Lead by example. 102. A _____________ is a formal statement of an organization’s primary values and the ethical rules it expects its employees to follow. a.mission statement b.statement of purpose c.code of ethics (moderate) d.vision statement 103. Nearly ______________ percent of Fortune 500 companies have a code of ethics. a. 65 b. 75 c. 85 d. 95 (easy) e. 105 104. A survey of various codes of ethics found that their content tended to fall into all of the following categories EXCEPT: a.be a dependable and organizational citizen. b.do not do anything unlawful or improper that will harm the organization. c.consider profit maximization to be the primary focus of the company. (moderate) d.be good to customers. 105. It is estimated that ______________ percent of companies provide some ethics training. a. over 40 (easy) b. over 50 c. 75 d. roughly 80 e. 90 Scenarios WHAT IS SOCIAL RESPONSIBILITY? What Wood You Do? (Scenario) Imagine that you are the head of a company that manufactures secondary wood products for the construction industry. Recently, there have been many reports of a plywood subflooring product that has been failing in a number of commercial locations resulting in several complaints about ruined floor coverings and, in one instance, partial collapse of a third floor, which injured three people. Your head of research and development has asked to stop selling the product and wants to run tests on the product to determine the problem. However, third-quarter earnings reports are due out in two weeks, and public knowledge of problems with a lucrative product may delay the financing of the company's expansion plans and lower stock price. Your dilemma: Do you delay or refuse the product research, thereby enhancing the expansion plans but risking other damage and public safety, or, do you immediately stop sales of the product and run the necessary tests, thereby risking the expansion plans? 106. If you (as head of the company) made your decision based on what was best for the stockholders, you would be operating with the ______________ view of social responsibility. a. neoclassical b. classical (moderate) c. conservative d. socioeconomic e. contemporary 107. Friedman would argue that if you decided to make any decision other than what is in the best interest of the stockholders, which of the following is likely to occur? a. increased financial return to stockholders b. increased profits and dividends c. increased employee wages and benefits d. increased consumer prices (moderate) e. increased sales 108. If you decided to stop sales and investigate the product, because you felt you had an obligation to society as well as stockholders, you would be operating under which view of social responsibility? a. neoclassical b. classical c. socioeconomic (moderate) d. conservative e. contemporary 109. Which view of social responsibility suggests that your decision should be based first on what will enable your wood products company long-term survival, and, only secondly, profit maximization? a. neoclassical b. classical c. socioeconomic (moderate) d. conservative e. contemporary 110. According to recent statistics, you know that ______________ percent of business owners said they would continue socially responsible practices even if they found out that these activities were cutting into profits. a. 34 b. 46 c. 58 d. 68 (moderate) e. 79 An Academic Question (Scenario) As a university student, you wonder about some of the practices in the university and just how some of its practices should be evaluated in reference to social issues. 111. If your university were paying minimum wage, when necessary, and applying the minimum standard to laws, such as affirmative action, it would be said to have fulfilled its ______________. a.social obligation. (moderate) b.social responsibility. c.social responsiveness. d.social expectation. e.social need. 112. If your university provides job-share programs, builds a day care facility, and only uses recycled paper, it could be said to be ______________. a.fulfilling its social obligation. b.socially aware. c.socially responsive. (moderate) d.socially image conscious. e.socially needy. 113. Which of the following is not a reason why it makes sense for your university to continue to be socially responsive? a.positive consumer image b.lower cost (easy) c.more dedicated work force d.more motivated work force e.less interference from regulators 114. If your state legislature criticized your university for incurring the cost of being socially responsive, it might point to a series of studies that indicate the relationship between corporate social involvement and economic performance as ______________. a.very negative. b.negative. c.neutral. d.positiv e. (moderate) e.very positive. 115. Your university has tried to promote the establishment of shared values so that all members will understand what it believes in. The university has established ______________ management. a.values-based (easy) b.image c.socially respectable d.MBO e.team THE ―GREENING‖ OF MANAGEMENT Welcome to the Real World (Scenario) As a recent M.B.A. graduate from a prestigious business school, Malcolm thought he had his work-life views straight. The way he saw it, if a business had to lay people off in order to increase profits in the short run, then that was "just business." Unfortunately, Malcolm, now in his first career position, had just been given the responsibility of laying off 20 percent of his plant. In the year he had worked there, he had learned to like his fellow employees, played on the company softball team, and made many friends. He did not like what he had to do and now questioned his previous convictions. 116. From a progressive point of view, now Malcolm felt responsible beyond just stockholders but also to any individual or group impacted by the organization's decisions and policies, a group known as ______________. a.constituents. b.stakeholders. (moderate) c.employees. d.the public. e.recipients. 117. Now that Malcolm is interested in human resource concerns, interested in improving working conditions and increasing job security, he would represent stage ______________ of the model of an organization's social responsibility. a.one b.two (moderate) c.three d.four e.five 118. If Malcolm kept changing and soon felt that he could meet his responsibilities only indirectly by meeting the needs of other constituents, he would represent stage ______________ of the model of an organization's social responsibility. a. one b. two c. three (moderate) d. four e. five 119. When Malcolm felt that the only way to promote stockholder interest was to minimize cost and maximize profit, he was representing stage ______________ of the model of an organization's social responsibility. a. one (moderate) b. two c. three d. four e. five 120. If at some point Malcolm felt that he, as a manager, viewed the business as a public property and he was responsible for advancing the public good, this would represent stage ______________ of the model of an organization's social responsibility. a. one b. two c. three d. four (moderate) e. five Essay Questions WHAT IS SOCIAL RESPONSIBILITY? 121. In a short essay, compare and contrast the classical view and the socioeconomic view of social responsibility. Answer a.The Classical View –the view that management’s onl y social responsibility is to maximize profits. The most outspoken advocate of this approach is Milton Friedman. He argues that managers’ primary responsibility is to operate the business in the best interests of the stockholders. Friedman contends that stockholders have a single concern: financial return. He also argues that anytime managers decide on their own to spend their organization’s resources for the ―social good,‖ they are adding to the costs of doing business. These costs have to be passed on to consumers either through higher prices or absorbed by stockholders through a smaller profit returned as dividends. b.The Socioeconomic View –the view that management’s social responsibility goes beyond making profits to include protecting and improvin g society’s welfare. This position is based on the belief that society’s expectations of business have changed. Corporations are not independent entities responsible only to stockholders. They also have a responsibility to the larger society that endorses their creation through various laws and regulations and supports them by purchasing their products and services. In addition, proponents of the socioeconomic view believe that business organizations are not just merely economic institutions. Society accepts and even encourages businesses to become involved in social, political, and legal issues. (moderate) 122. In short essay, discuss social responsibility and compare and contrast social obligation and social responsiveness. Answer a.Social responsibility adds an ethical imperative to do those things that make society better and not to do those that could make it worse. A social responsible organization goes beyond what it must do by law or chooses to do only because it makes economic sense to do what it can to help improve society because that’s the right, or ethical, thing to do. Social responsibility requires business to determine what is right or wrong and to make ethical decisions and engage in ethical business activities. A social responsible organization does what is right because it feels it has a responsibility to act that way. b.Social obligation is the obligation of a business to meet its economic and legal responsibilities. The organization does the minimum required by law. Following an approach of social obligation, a firm pursues social goals only to the extent that they contribute to its economic goals. This approach is based on the classical view of social responsibility; that is, the business feels its only social duty is to its stockholders. In contrast to social obligation, however, both social responsibility and social responsiveness go beyond merely meeting basic economic and legal standards. c.Social responsiveness refers to the capacity of a firm to adapt to changing societal conditions. The idea of social responsiveness stresses that managers make practical decisions about the societal actions in which they engage. A socially responsive organization acts the way it does because of its desire to satisfy some popular social need. Social responsiveness is guided by social norms. The value of social norms is that they can provide managers with a meaningful guide for decision making. (moderate) 123. In a short essay, list and discuss five arguments in favor of business social responsibility and five arguments against it. Answer Arguments in favor of business social responsibility include: a.Public expectations – public opinion now supports businesses pursuing economic and social goals b.Long-run profits – socially responsible companies tend to have more secure long-run profits c.Ethical obligation – businesses should be socially responsible because responsible actions are the right thing to do d.Public image – businesses can create a favorable public image by pursuing social goals e.Better environment – business involvement can help solve difficult social problems f.Discouragement of further governmental regulation – by becoming social responsible, businesses can expect less government regulation g.Balance of responsibility and power – businesses have a lot of power and an equally large amount of responsibility is needed to balance against that power h.Stockholder interests –social responsibility will improve a business’s stock price in the long run i.Possession of resources – businesses have the resources to support public and charitable projects that need assistance j.Superiority of prevention over cures – businesses should address social problems before they become serious and costly to correct Arguments against business social responsibility include: socially responsible only when it pursues its economic interests b.Dilution of purpose –pursuing social goals dilutes business’s primary purpose—economic productivity c.Costs – many social responsibility actions do not cover their costs and someone must pay those costs d.Too much power –businesses have a lot of power already and if they pursue social goals, they will have even more e.Lack of skills – business leaders lack the necessary skills to address social issues f.Lack of accountability – there are no direct lines of accountability for social actions (difficult) VALUES-BASED MANAGEMENT 124. In a short essay, define values-based management and discuss the purposes of shared values. Answer ―Value s –based management‖ is an approach to managing in which manager establish, promote, and practice an organization’s shared values. An organization’s values reflect what it stands for and what it believes in. The values that organizational members share serve at least three main purposes. The first purpose of shared values is that they act as guideposts for managerial decisions and actions. Another purpose of shared values is the impact they have on shaping employee behavior and communicating what the organization expects of its members. Shared corporate values also influence marketing efforts. Finally, shared values are a way to build team spirit in organizations. When employees embrace the stated corporate values, they develop a deeper personal commitment to their work and feel obligated to take responsibility for their actions. Because the shared values influence the way work is done, employees become more enthusiastic about working together as a team to support values they believe in. (easy) THE ―GREENING‖ OF MANAGEMENT 125. In a short essay, explain the four approaches that organizations can take with respect to environmental issues. Answer The first approach simply is doing what is required legally: the legal approach. Under this approach, organizations exhibit little environmental sensitivity. They obey laws, rules, and regulations willingly and without legal challenge, and they may even try to use the law to their own advantage, but that’s the extent of their being green. This approach is a good illustration of social obligation: These organizations simply are following their legal obligations of pollution prevention and environmental protection. As an organization becomes more aware of and sensitive to environmental issues, it may adopt the market approach. In this approach, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally friendly products will be what the organization provides. Under the next approach, the stakeholder approach, the organization chooses to respond to multiple demands made by stakeholders. Under the stakeholder approach, the green organization will work to meet the environmental demands of groups such as employees, suppliers, or the community. Both the market approach and the stakeholder approach are good illustrations of social responsiveness. Finally, if an organization pursues an activist approach, it looks for ways to respect and preserve the earth and its natural resources. The activist approach exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility. (moderate) 126. In a short essay, describe the four-stage model of an organization’s expanding social responsibility. Answer A Stage 1 manager will promote stockholders’ interests by seeking to minimize costs and maximize profits. Although all laws and regulations will be followed, Stage managers do not feel obligated to satisfy other societal needs. This is consistent with Frie dman’s classical view of social responsibility. At Stage 2, managers will accept their responsibility to employees and focus on human resource concerns. Because they’ll want to recruit, keep, and motivate good employees, Stage 2 managers will improve wor king conditions, expand employee rights, increase job security, and the like. At Stage 3, managers expand their responsibilities to other stakeholders in the specific environment—that is, customers and suppliers. Social responsibility goals of Stage 3 managers include fair prices, high-quality products and services, safe products, good supplier relations, and similar actions. Their philosophy is that they can meet their responsibilities to stockholders only by meeting the needs of their other constituents. Finally, Stage 4 characterizes the extreme socioeconomic definition of social responsibility. At this stage, managers feel a responsibility to society as a whole. Their business is seen as a public entity, and they feel a responsibility for advancing the public good. The acceptance of such responsibility means that managers actively promote social justice, preserve the environment, and support social and cultural activities. They take these stances even if such actions negatively affect profits. (moderate) MANAGERIAL ETHICS 127. In a short essay, discuss the four views of ethics. Include a discussion of the benefits and drawbacks related to each of the four views. Answer a.The utilitarian view of ethics says that ethical decisions are made solely on the basic of their outcomes or consequences. Utilitarian theory uses a quantitative method for making ethical decisions by looking at how to provide the greatest good for the greatest number. Utilitarianism encourages efficiency and productivity and is consistent with the goal of profit maximization. However, it can result in biased allocations of resources, especially when some of those affected by the decision lack representation or a voice in the decision. Utilitarianism can also result in the rights of some stakeholders being ignored. b.The rights view of ethics is concerned with respecting and protecting individual liberties and privileges such as the rights to privacy, freedom of conscience, free speech, life and safety, and due process. This would include, for example, protecting the free speech rights of employees who report legal violations by their employers. The positive side of the rights perspective is that it protects individuals’ basic rights, but it has a negative side for organizations. It can present obstacles to high productivity and efficiency by creating a work climate that is more concerned with protecting individuals’ rights than with getting the job done. c.The next view is the theory of justice view of ethics. Under this approach, managers are to impose and enforce rules fairly and impartially and do so by following all legal rules and regulations. A manager would be using the theory of justice perspective by deciding to provide the same rate of pay to individuals who are similar in their levels of skills, performance, or responsibility and not basing that decision on arbitrary differences such as gender, personality, race, or personal favorites. Using standards of justice also has pluses and minuses. It protects the interests of those stakeholders who may be underrepresented or lack power, but it can encourage a sense of entitlement that might make employees reduce risk taking, innovation, and productivity. d.The final ethics perspective, the integrative social contracts theory, proposes that ethical decisions should be based on empirical and normative factors. This view of ethics is based on the integration of two ―contracts‖: the general social contract that allows businesses to operate and defines the acceptable ground rules, and a more specific contract among members of a community that addresses acceptable ways of behaving. This view of business differs from the other three in that it suggests that managers need to look at existing ethical norms in industries and companies in order to determine what constitutes right and wrong decisions and actions. (difficult) 128. In a short essay, explain the three levels of moral development and discuss the conclusions that can be drawn from research on the levels and stages of moral development. Answer a.The first level is labeled preconventional. At this level, a person’s choice between right and wrong is based on personal consequences involved, such as physical punishment, reward, or exchange of favors. Ethical reasoning at the conventional level indicates that moral values reside in maintaining expected standards and living up to the expectations of others. At the principled level, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or society in general. b.Several conclusions can be drawn from research on the levels and stages of moral development. First, people proceed through the six stages sequentially. They move up the moral ladder, stage by stage. Second, t here is no guarantee of continued moral development. An individual’s moral development can stop at any stage. Third, the majority of adults are at Stage 4. They are limited to obeying the rules and will be inclined to behave ethically. For instance, a manager at stage 3 is likely to make decisions that will receive peer approval; a manager at stage 4 will try to be a ―good corporate citizen‖ by making decisions that respect the organization’s rules and procedures; and a stage 5 manager is likely to challenge organizational practices that he or she believes to be wrong. (moderate) 129. In a short essay, list and discuss the two personality variables that have been found to influence an individual’s actions according to his or her beliefs about what is ri ght or wrong. Answer The two personality variables are ego strength and locus of control. Ego strength is a personality measure of the strength of a person’s convictions. People who score high on ego strength are likely to resist impulses to act unethically and instead follow their convictions. That is, individuals high in ego strength are more likely to do what they think is right. It is expected that managers with high ego strength would be more consistent in their moral judgments and moral actions than managers with low ego strength. Local of control is a personality attribute that measures the degree to which people believe they control their own fate. People with an internal locus of control believe that they control their own destinies; those with an external local believe that what happens to them is due to luck or chance. Externals are less likely to take personal responsibility for the consequences of their behavior and are more likely to rely on external forces. Internals, on the other hand, are more likely to take responsibility for consequences and rely on their own internal standards of right and wrong to guide their behavior. Managers with an internal locus of control are likely to be more consistent in their moral judgments and moral actions than will those with an external locus of control. (easy) 130. In a short essay, list five steps that managers can take if they’re serious about reducing unethical behaviors in their organizations. Briefly discuss the importance of each step in reducing unethical behaviors. Answer a.Hire individuals with high ethical standards –given that individuals are at different stages of moral development and possess different personal value systems and personalities, an organization’s employee selection process should be used to eliminate ethically questionable applicants. b.Establish codes of ethics and decision rules –ambiguity about what is and is not ethical can be a problem for employees. A code of ethics, a formal statement of an organization’s pri mary values and the ethical rules it expects it employees to follow, is a popular choice for reducing that ambiguity. c.Lead by example from top management –doing business ethically requires a commitment from top managers. Top managers are role models in terms of both words and actions, though what they do is far more important than what they say. d.Delineate job goals and performance appraisal mechanisms –employees should have realistic and tangible goals. Explicit goals can create ethical problems if they make unrealistic demands on employees. Whether an individual achieves his or her job goals is usually a key issue in performance appraisal. e.Provide ethics training – more and more organizations are setting up seminars, workshops, and similar ethics training programs to encourage ethical behavior. Ethics training sessions can provide a number of benefits. They reinforce the organization’s standards of conduct. They’re a reminder that top mangers want employees to consider ethical issues in making decisions. And, they clarify what practices are and are not acceptable. f.Conduct social audits –an important element of unethical behavior is fear of being caught. Independent social audits, which evaluate decisions and management practices in terms of the o rganization’s code of ethics, increase the likelihood of detection. g.Provide support to individuals facing ethical dilemmas –an organization might designate ethical counselors. When employees face an ethics dilemma, they could go to these advisers for guidance. The ethical counselor’s role would be a sounding board—a channel to let employees openly verbalize their ethical problem, the problem’s cause, and their own options. (difficult)