Exam 4: Ethics and Social Responsibility

Concentration of effect is how much an act affects the average person.

In order to ensure that a company's ethics code will encourage ethical decision making and behavior, companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company. The second is to develop practical ethical standards and procedures specific to the company's line of business.

If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company but does so, then the catalog's sentence would be determined by _____.

The shareholder model holds that management's most important responsibility is the firm's long-term survival (not just maximizing profits). According to the shareholder model, long-term survival is achieved by satisfying the interests of multiple corporate stakeholders (not just shareholders).

Probability of effect is the chance that something will happen and then result in harm to others.

Under the U.S. Sentencing Commission Guidelines, a culpability score is a way of assigning blame to a company.

Who among the following are the secondary stakeholders of an organization?

A person who reports others' ethics violations to management or legal authorities is termed a(n) _____.

Ethical intensity depends on all of the following EXCEPT ____.

The three stages of moral development identified by Kohlberg are ____.

Heyworth Industries formally closed one of its factories in May. The workers were informed of this only one month earlier, in April. Which of the following factors most probably caused a high ethical intensity?

All adults reach the postconventional stage of morality.

Elliot's Kitchen, a small diner chain in Indianapolis, expanded by purchasing four existing stores. One of the stores was located in a lower- class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had a_____ to provide a neighborhood diner to that community.

According to Kohlberg's model of moral development, people at the _____ make decisions that are based on selfish reasons.

According to the _____ model, management's most important responsibility is long-term survival.

Under the U.S. Sentencing Commission Guidelines, companies without compliance programs can pay fines many times larger than companies with established compliance programs.

The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.

Red Spark Enterprises, a multinational electronics manufacturer, recently grabbed the attention of millions worldwide after it was involved in a major money-laundering scam. This scam had adversely affected the careers of more than two hundred employees of Red Spark without them being involved in the scam. In other words, the plan had a:

Stakeholders are people or groups with an interest in a company's actions.

The two general categories of stakeholders are _____ stakeholders.