Exam 5: Managing Responsibly and Ethically

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In a short essay outline the two individual characteristics that play a role in determining whether a person behaves ethically.

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Which of the following describes the stage of moral development for most adults?

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The ________ approach to environmental issues is when organizations respond to environmental preferences of their customers.

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Refer to the scenario below to answer the following questions. Two Opposing Views of Social Responsibility (Scenario) The board of directors of Acme Generating Corporation is meeting to consider the construction of a new electricity generation facility somewhere along the Muspetan River basin. The city of Muspetan has a high Air Pollution Index and the increasing amount of garbage is adding to the city's woes. Director Appleton would like the facility to be a coal-burning plant located in a remote area because the cost involved is moderate. Director Witworth wants a nuclear plant because this will not add to the city's already serious pollution problem, while taking care of its electricity requirements. Director Jossleman wants a plant that uses combustible fuels collected from the city's garbage. He wants the plant to be located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines. -Director Appleton is following which of the social responsibility views?

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Which of the following statements about social responsiveness is true?

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Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists.

(True/False)
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The classical view of social responsibility holds that management's only social responsibility is to maximize __________.

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A company's shared values have little effect on managerial decisions and actions.

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Refer to the scenario below to answer the following questions. Social Responsibility and Issue Intensity (Scenario) Rick is president of a company that manufactures secondary wood products for the construction industry. Recently, there have been many reports of a plywood sub-flooring product that has been failing in a number of commercial locations, resulting in several complaints about ruined floor coverings and, in one instance, the partial collapse of a floor, which injured three people. The manager of research and development has asked marketing to stop selling the product while he runs some tests to determine the source of the problem. However, third-quarter earnings reports are due out in two weeks and public knowledge of problems concerning this lucrative product are likely to delay the financing of the company's expansion plans and cause stock prices to tumble. Rick has a dilemma. Should he continue to sell the product and delay research efforts in order to maintain the expansion plans, but risk causing more damage and injury? Or should he immediately stop sales of the product and run the necessary tests, thereby placing the expansion plans at risk and causing potential losses for the company's shareholders? -To help resolve this dilemma, Rick asked three other top managers for advice. All three agreed that it would be clearly wrong to continue selling the product without first correcting the problem. This involves which determinant of issue intensity?

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The ________ approach toward environmental issues is a good illustration of social obligation.

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In defining ethical behaviour, what managers say is far more important than what they do.

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Refer to the scenario below to answer the following questions. An Ethical Dilemma (Scenario) Max Proffit, director of research and development for NexGen Products Company, has learned that a new material has been developed in his department that will help reduce production costs without any accompanying loss in quality. He has discussed the potential savings with his two assistants, Angel Lee and Moe Gaines, as well as the vice-president of product development, Rush Onward. Angel has stated her opposition to the use of the new material because its durability and fire-resistant properties have not been fully tested nor certified by the company's third-party testing laboratory. Moe argues that the initial tests that their R&D department has run indicated minimal problems with both durability and fire resistance. Rush stated that he has been in several meetings lately where the need to increase earnings-per-share has been repeatedly emphasized by the company president. Rush has told Max that a decision has to be made within the week about the use of the new material in NexGen's products. -If Max approves the use of the new material because of perceived pressure for the need to help increase earnings-per-share, despite the fact that the material has not yet been certified, he probably __________.

(Multiple Choice)
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Refer to the scenario below to answer the following questions. Social Responsibility and Issue Intensity (Scenario) Rick is president of a company that manufactures secondary wood products for the construction industry. Recently, there have been many reports of a plywood sub-flooring product that has been failing in a number of commercial locations, resulting in several complaints about ruined floor coverings and, in one instance, the partial collapse of a floor, which injured three people. The manager of research and development has asked marketing to stop selling the product while he runs some tests to determine the source of the problem. However, third-quarter earnings reports are due out in two weeks and public knowledge of problems concerning this lucrative product are likely to delay the financing of the company's expansion plans and cause stock prices to tumble. Rick has a dilemma. Should he continue to sell the product and delay research efforts in order to maintain the expansion plans, but risk causing more damage and injury? Or should he immediately stop sales of the product and run the necessary tests, thereby placing the expansion plans at risk and causing potential losses for the company's shareholders? -The other three managers expressed concern that many more people could eventually be injured if the company did not quickly correct the problem. This relates to which determinant of issue intensity?

(Multiple Choice)
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Because shared values influence the way work is done, employees can become more enthusiastic about working together to support the values they believe in. This illustrates which purpose of shared organizational values?

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Though the outcomes are not perfectly measured, the majority of research studies show a positive relationship between corporate social involvement and economic performance.

(True/False)
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Highly moral individuals are unlikely to become corrupted in organizations that permit unethical practices.

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Values-based management is an approach to managing by establishing and upholding an organization's shared values.

(True/False)
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According to the model of the evolution of an organization's social responsibility, stage 2 adds responsibility to ________.

(Multiple Choice)
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