Exam 4: Ethics and Social Responsibility

Employees are stakeholders of a company.

Trust refers to the esteem or high repute that people or organizations gain when they behave ethically.

_____ can provide guidance when organization members are uncertain about whether an action is ethical.

_____ companies are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics testing; and the reduction of crime, illiteracy, and poverty.

Stockholders play a crucial role in determining a company's ethics.

Decisions that managers take to protect the rights of some stakeholders often hurt the rights of others.

A company's stance on social responsibility is the way its managers and employees view their obligation to make decisions that promote the well-being of stakeholders and society as a whole.

Customers are stakeholders of an organization, but managers are not.

Robert and his HR team have adapted several existing company policies. He is unsure if all these policies can be implemented on ethical grounds. His team can approach a(n) _____ to resolve the matter.

An organization's code of ethics is shaped by the ethics of the top managers of the organization.

_____ have a claim on an organization because they bring to it their skills, expertise, and experience.

After a lengthy investigation, Larry lost his license to practice law on charges of accepting bribes. In all likelihood, Larry probably violated his _____.

Absolute rules exist to determine how individuals should behave in every situation.

Stockholders seek to maximize the return on their investment and therefore show interest in the ethical practices of a company.

The president at Protector's Insurance takes pride in the fact that his organization strives to behave legally and ethically. The company advocates an approach that tries to balance the interests of different stakeholders in relation to the claims of other stakeholders. What approach to social responsibility is the organization implementing?

The stakeholder group with the most responsibility for deciding the goals of the organization is:

Jim is comfortable with his decision and would have no problem with people reading about it on the front page of a morning paper. This indicates that he is following the practical rule.

According to the moral rights rule, managers should choose the course of action that best protects and upholds their personal rights.

Managers are a vital stakeholder group because they are responsible for using a company's resources to increase its performance and thus its stock price.

Ethical beliefs lead to the development of laws and regulations.