Ethics and Diversity True/False Quiz
Ethics and Diversity True/False Quiz
Student: ___________________________________________________________________________
1. An ethical dilemma does not arise when a person has to decide between two different courses of action,
knowing that whichever course he or she chooses will result in harm to one person or group even while it
may benefit another.
True False
2. "Moral scruples" are thoughts and feelings that tell a person what is right and wrong.
True False
3. Laws and ethics are fixed principles.
True False
4. Laws change and even disappear as ethical beliefs change.
True False
5. Stakeholders supply a company with its productive resources.
True False
6. Customers are stakeholders of an organization, but managers are not.
True False
7. The SEC's goal is to turn many actions that were previously classified as only unethical into illegal
behavior in the near future.
True False
8. Suppliers have no rights to expect anything except their bills being paid from an organization they are
doing business with.
True False
9. Customers are often regarded as the most important stakeholder group.
True False
10. The local communities in which an organization operates are generally not considered to be true
stakeholders of the organization.
True False
11. All stakeholders benefit in the long run from companies making the right choices.
True False
12. Under the utilitarian rule, an ethical decision is a decision that best maintains and protects the fundamental
or inalienable rights and privileges of the people affected by it.
True False
13. Typically, in a capitalist society, the interests of employees are placed above the interests of shareholders.
True False
14. Under the moral rights rule, an ethical decision is the one that distributes benefits and harms among people
and groups in a fair, equitable, and impartial way.
True False
15. From a moral rights perspective, managers should compare alternative courses of action on the basis of
how each will affect the rights of each stakeholder group.
True False
16. Under the moral rights rule, decisions that protect the rights of some stakeholders often hurt the rights of
others.
True False
17. Under the justice rule, managers should determine fair rules and procedures from distributing outcomes to
stakeholders.
True False
18. "An ethical decision is one that a typical person in a society would think is acceptable" is a statement that
reflects the justice rule.
True False
19. The "practical rule" ensures that managers are taking into account the interests of all stakeholders.
True False
20. The pursuit of self-interest is the most important foundation upon which a society can operate.
True False
21. A society's ethics are derived solely from the written values and norms of the society that address how
people should interact with one another.
True False
22. The standards that govern how members of a profession should make decisions are called organizational
ethics.
True False
23. An organization's code of ethics is shaped by the ethics of the top managers of the organization.
True False
24. The ethics officers are also known as ethics ombudsman.
True False
25. The term "diversity" refers to differences in gender and age, but not to those in sexual orientation.
True False
26. Effectively managing diversity can increase worker satisfaction but does not increase organizational
effectiveness.
True False
27. According to the federal Glass Ceiling Commission Report, African-Americans have a hardest time being
promoted.
True False
28. The "invisible barrier" within an organization that prevents women from being promoted to top
management positions is called the glass ceiling.
True False
29. The EEO law that first prohibited discrimination against persons with disabilities was Title VII of the Civil
Rights Act.
True False
30. The Family Medical and Leave Act requires employers to provide 12 weeks of paid leave for medical and
family reasons.
True False
31. Research suggests that women are better than men in motivating others, communicating, and listening.
True False
32. The increasing racial and ethnic diversity of the workforce and the population as a whole underscores the
importance of effectively managing diversity.
True False
33. Federal guidelines suggest that employers make reasonable accommodations for employees' religious
practices.
True False
34. The ADA protects employees with AIDS from being discriminated against in the workplace.
True False
35. Federal law prohibits discrimination based on sexual orientation.
True False
36. Managers can promote the effective management of diversity through the performance of interpersonal and
decisional roles, but not through informational roles.
True False
37. Individuals performing a disseminator's roles support diversity initiatives in the wider community and
speak to diverse groups to interest them in career opportunities.
True False
38. Resource allocators work with organizations both suppliers and labor unions to support and encourage the
effective management of diversity.
True False
39. A slight bias toward a particular group can lead to very large differences between groups over time.
True False
40. Diversity within the organization can be a source of competitive advantage to the organization.
True False
41. Effective management of diversity is inversely proportional to profitability of the organization.
True False
42. Sexual harassment that creates a hostile work environment is more subtle than quid pro quo sexual
harassment.
True False
43. One manager tells a lewd joke to another manager. This is an example of quid pro quo sexual harassment.
True False
44. An ethical dilemma is a situation in which a person has to decide if he/she should act in a way that:
A. Moral scruples
B. Ethical dilemmas
C. Ethics
D. Norms
E. Emotions
46. Which of the following statement is true?
A. ethics and laws can be fixed or flexible principles depending on the situation.
B. ethics are fixed but laws are flexible principles.
C. neither laws nor ethics are fixed principles.
D. ethics are flexible but laws are fixed principles.
E. both ethics and laws are fixed principles.
48. Which of the following is usually NOT considered to be a stakeholder of an organization?
A. Community
B. Society
C. Customers
D. Government
E. Distributors
49. Stockholders are interested in the way a company operates because they:
A. stockholders.
B. customers.
C. managers.
D. working-level employees.
E. consultants.
51. Issues concerning this group of stackholder, one of which is product quality specifications, are governed by
the terms of the legal contracts.
A. Customers
B. Managers
C. Employees
D. Supplies and distributors
E. Stockholders
52. _____ are often regarded as the most critical stakeholder group.
A. Stockholders
B. Managers
C. Employees
D. Customers
E. Suppliers
53. Which of the following is NOT an ethical rule to analyze the effect of business decisions on stakeholders?
A. Justice
B. Moral Rights
C. Utilitarian
D. Practical
E. Existentialism
54. The utilitarian rule states that an ethical decision:
A. Justice
B. Moral Rights
C. Utilitarian
D. Practical
E. Existentialism
56. The Moral Rights model of ethics:
A. Justice
B. Moral Rights
C. Utilitarian
D. Practical
E. Existential
58. Under the practical rule, an ethical decision is one that a manager has no hesitation or reluctance about
communicating to people outside the company because:
A. the manager will not be held responsible for the consequences of the decision.
B. a typical person in the society would consider the decision acceptable.
C. a typical person in the society wouldn't care about the decision.
D. a typical person in the society wouldn't know about the decision.
E. the manager is not the decision maker.
59. The practical rule states that an ethical decision:
A. trust.
B. reputation.
C. ethics.
D. moral scruple.
E. effectiveness.
63. Which of the following can be defined as the esteem or high repute that individuals or organizations gain
when they behave ethically?
A. Trust
B. Reputation
C. Ethics
D. Moral scruple
E. Effectiveness
64. Which of the following emanates from unwritten attitudes, values, and norms that influence how people
interact with each other?
A. Societal ethics
B. Occupational ethics
C. Individual ethics
D. Organizational ethics
E. Fundamental ethics
65. Which of the following results due to differences in personalities, values, and attitudes?
A. Societal ethics
B. Occupational ethics
C. Individual ethics
D. Organizational ethics
E. Fundamental ethics
66. Which of the following is LEAST likely to be a source of individual ethics?
A. Family
B. Friends
C. Personlality
D. Experience
E. Bosses
67. Which of the following refers to the invisible barriers that prevent minorities and women from being
promoted to top corporate positions?
A. Affirmative action
B. Flight ceiling
C. Glass cliff
D. Glass ceiling
E. Gerschenkron effect
68. Title VII of the Civil Rights Act became a law in the:
A. 1963
B. 1964
C. 1967
D. 1978
E. 1990
69. Which of the following includes paternity leaves?
A. Decision-maker
B. Liaison
C. Leader
D. Figurehead
E. Negotiator
72. A manager who is effectively managing diversity in the disseminator role would:
A. convey that the effective management of diversity is a valued goal and objective.
B. serve as a role model for treating others fairly.
C. help diverse individuals to coordinate their efforts.
D. support diversity initiatives in the wider community.
E. take quick action to correct inequalities and curtail discriminatory behavior.
74. Justin, a Human Resources Manager for XYZ Company, commits 20% of this year's budget to develop
a new program for bringing minority interns into the company. Which of the following roles is Justin
performing?
A. Resource allocator
B. Entrepreneur
C. Monitor
D. Negotiator
E. Disturbance handler
75. A top manager giving a speech to employees about the importance of diversity is acting as a:
A. figurehead.
B. leader.
C. liaison.
D. entrepreneur.
E. negotiator.
76. Taking quick action to correct inequalities and curtailing discriminatory behavior would come under which
of the following roles?
A. Leader
B. Disturbance handler
C. Negotiator
D. Liaison
E. Spokesperson
77. Terry is an HR manager in an FMCG company. He works with his suppliers as well has the labor unions to
support and encourage the effective management of diversity. What role is Terry performing?
A. Leader
B. Disturbance handler
C. Negotiator
D. Liaison
E. Spokesperson
78. When a manager asks a subordinate for sexual favors in return for a promotion, what type of sexual
harassment has occurred?
A. A Sarbannes-Oxley violation
B. The glass ceiling has been broken
C. Quid pro quo harassment
D. A hostile work environment
E. A non-accommodative environment
82. A female subordinate is offended by posters in her supervisor's office that are degrading to women. She
avoids going into the office, even when she has a work-related question. Her supervisor has exhibited:
90. Describe the questions that a manager should ask under the practical rule to decide if a business decision is
acceptable on ethical grounds.
91. Describe the four models of ethics and discuss their managerial implications.
94. Describe the major provisions of Title VII of the Civil Rights Act, the Equal Pay Act, and the Americans
with Disabilities Act.
96. Does the ADA cover AIDS? Why are employers sometimes reluctant to hire these individuals? What should
employers do about this?
97. List at least three of the managerial roles that could be exercised to effectively manage diversity.
98. It has been said that managing diversity makes good business sense. Do you agree or disagree with this
statement? Defend your argument with either pros or cons.
99. There are two basic types of sexual harassment that can occur in the workplace. Distinguish between these
two types and give two specific examples of each that could occur in a business setting.
100.There are a number of actions that managers can take to reduce and eliminate sexual harassment on the
job. Discuss two of the four common steps that managers can take in an attempt to deal with this type of
problem on the job.
ch3 Key
1. An ethical dilemma does not arise when a person has to decide between two different courses of action,
(p. 81) knowing that whichever course he or she chooses will result in harm to one person or group even while
it may benefit another.
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #1
Learning Objective: 03-1
Topic: Ethical Dilemmas
2. "Moral scruples" are thoughts and feelings that tell a person what is right and wrong.
(p. 81)
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #2
Learning Objective: 03-1
Topic: Ethical Dilemmas
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #3
Learning Objective: 03-1
Topic: Ethics and the Law
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #4
Learning Objective: 03-1
Topic: Changes in Ethics over Time
TRUE
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #5
Learning Objective: 03-1
Topic: Stakeholders and Ethics
6. Customers are stakeholders of an organization, but managers are not.
(p. 84
(Figure
3.1)) FALSE
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #6
Learning Objective: 03-1
Topic: Stakeholders and Ethics
7. The SEC's goal is to turn many actions that were previously classified as only unethical into illegal
(p. 85) behavior in the near future.
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #7
Learning Objective: 03-1
Topic: Managers
8. Suppliers have no rights to expect anything except their bills being paid from an organization they are
(p. 87) doing business with.
FALSE
AACSB: Analytic
Blooms Taxonomy: Comprehension
Difficulty: Easy
Jones - Chapter 03 #8
Learning Objective: 03-1
Topic: Suppliers and Distributors
TRUE
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #9
Learning Objective: 03-1
Topic: Customers
10. The local communities in which an organization operates are generally not considered to be true
(p. 88) stakeholders of the organization.
FALSE
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #10
Learning Objective: 03-1
Topic: Community, Society, and Nation
11. All stakeholders benefit in the long run from companies making the right choices.
(p. 89)
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #11
Learning Objective: 03-1
Topic: Rules for Ethical Decision Making
12. Under the utilitarian rule, an ethical decision is a decision that best maintains and protects the
(p. 90) fundamental or inalienable rights and privileges of the people affected by it.
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #12
Learning Objective: 03-1
Topic: Utilitarian Rule
13. Typically, in a capitalist society, the interests of employees are placed above the interests of
(p. 90) shareholders.
FALSE
AACSB: Analytic
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #13
Learning Objective: 03-1
Topic: Utilitarian Rule
14. Under the moral rights rule, an ethical decision is the one that distributes benefits and harms among
(p. 90) people and groups in a fair, equitable, and impartial way.
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #14
Learning Objective: 03-1
Topic: Moral Rights Rule
15. From a moral rights perspective, managers should compare alternative courses of action on the basis of
(p. 90) how each will affect the rights of each stakeholder group.
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #15
Learning Objective: 03-1
Topic: Moral Rights Rule
16. Under the moral rights rule, decisions that protect the rights of some stakeholders often hurt the rights of
(p. 90) others.
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #16
Learning Objective: 03-1
Topic: Moral Rights Rule
17. Under the justice rule, managers should determine fair rules and procedures from distributing outcomes
(p. 91) to stakeholders.
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #17
Learning Objective: 03-1
Topic: Justice Rule
18. "An ethical decision is one that a typical person in a society would think is acceptable" is a statement
(p. 91) that reflects the justice rule.
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Comprehension
Difficulty: Easy
Jones - Chapter 03 #18
Learning Objective: 03-1
Topic: Practical Rule
19. The "practical rule" ensures that managers are taking into account the interests of all stakeholders.
(p. 91)
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #19
Learning Objective: 03-1
Topic: Practical Rule
20. The pursuit of self-interest is the most important foundation upon which a society can operate.
(p. 91)
FALSE
AACSB: Analytic
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #20
Learning Objective: 03-1
Topic: Why Should Managers Behave Ethically?
21. A society's ethics are derived solely from the written values and norms of the society that address how
(p. 93-94) people should interact with one another.
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #21
Learning Objective: 03-1
Topic: Societal Ethics
22. The standards that govern how members of a profession should make decisions are called organizational
(p. 94) ethics.
FALSE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #22
Learning Objective: 03-1
Topic: Professional Ethics
23. An organization's code of ethics is shaped by the ethics of the top managers of the organization.
(p. 95)
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Comprehension
Difficulty: Easy
Jones - Chapter 03 #23
Learning Objective: 03-2
Topic: Ethical Organizational Cultures
TRUE
AACSB: Ethical Understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #24
Learning Objective: 03-2
Topic: Ethical Organizational Cultures
25. The term "diversity" refers to differences in gender and age, but not to those in sexual orientation.
(p. 98)
FALSE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #25
Learning Objective: 03-3
Topic: The Increasing Diversity of the Workforce and the Environment
26. Effectively managing diversity can increase worker satisfaction but does not increase organizational
(p. 99) effectiveness.
FALSE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Comprehension
Difficulty: Easy
Jones - Chapter 03 #26
Learning Objective: 03-3
Topic: The Increasing Diversity of the Workforce and the Environment
27. According to the federal Glass Ceiling Commission Report, African-Americans have a hardest time
(p. 99) being promoted.
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #27
Learning Objective: 03-3
Topic: The Increasing Diversity of the Workforce and the Environment
28. The "invisible barrier" within an organization that prevents women from being promoted to top
(p. 99) management positions is called the glass ceiling.
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #28
Learning Objective: 03-3
Topic: The Increasing Diversity of the Workforce and the Environment
29. The EEO law that first prohibited discrimination against persons with disabilities was Title VII of the
(p. 100 Civil Rights Act.
(Table
3.1))
FALSE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #29
Learning Objective: 03-3
Topic: Gender
30. The Family Medical and Leave Act requires employers to provide 12 weeks of paid leave for medical
(p. 100 and family reasons.
(Table
3.1))
FALSE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #30
Learning Objective: 03-3
Topic: Gender
31. Research suggests that women are better than men in motivating others, communicating, and listening.
(p. 100)
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #31
Learning Objective: 03-3
Topic: Gender
32. The increasing racial and ethnic diversity of the workforce and the population as a whole underscores
(p. 101) the importance of effectively managing diversity.
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #32
Learning Objective: 03-3
Topic: Race and Ethnicity
33. Federal guidelines suggest that employers make reasonable accommodations for employees' religious
(p. 102) practices.
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #33
Learning Objective: 03-3
Topic: Religion
34. The ADA protects employees with AIDS from being discriminated against in the workplace.
(p. 103)
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #34
Learning Objective: 03-3
Topic: Capabilities/Disabilities
FALSE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #35
Learning Objective: 03-3
Topic: Sexual Orientation
36. Managers can promote the effective management of diversity through the performance of interpersonal
(p. 107 and decisional roles, but not through informational roles.
(Table
3.2))
FALSE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #36
Learning Objective: 03-4
Topic: Critical Managerial Roles
37. Individuals performing a disseminator's roles support diversity initiatives in the wider community and
(p. 107 speak to diverse groups to interest them in career opportunities.
(Table
3.2))
FALSE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #37
Learning Objective: 03-5
Topic: Critical Managerial Roles
38. Resource allocators work with organizations both suppliers and labor unions to support and encourage
(p. 107 the effective management of diversity.
(Table
3.2))
FALSE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Knowledge
Difficulty: Moderate
Jones - Chapter 03 #38
Learning Objective: 03-5
Topic: Critical Managerial Roles
39. A slight bias toward a particular group can lead to very large differences between groups over time.
(p. 108)
TRUE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Comprehension
Difficulty: Easy
Jones - Chapter 03 #39
Learning Objective: 03-5
Topic: Critical Managerial Roles
40. Diversity within the organization can be a source of competitive advantage to the organization.
(p. 108)
TRUE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Comprehension
Difficulty: Easy
Jones - Chapter 03 #40
Learning Objective: 03-5
Topic: Effectively Managing Diversity Makes Good Business Sense
FALSE
AACSB: Multicultural/Diversity understanding
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #41
Learning Objective: 03-5
Topic: Effectively Managing Diversity Makes Good Business Sense
42. Sexual harassment that creates a hostile work environment is more subtle than quid pro quo sexual
(p. 111) harassment.
TRUE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #42
Learning Objective: 03-6
Topic: Forms of Sexual Harassment
43. One manager tells a lewd joke to another manager. This is an example of quid pro quo sexual
(p. 111) harassment.
FALSE
AACSB: Ethical/Legal Responsibilities
Blooms Taxonomy: Application
Difficulty: Moderate
Jones - Chapter 03 #43
Learning Objective: 03-6
Topic: Forms of Sexual Harassment
44. An ethical dilemma is a situation in which a person has to decide if he/she should act in a way that:
(p. 80-81)
An ethical dilemma, the quandary people find themselves in when they have to decide if they should act
in a way that might help another person or group, and is the "right" thing to do, even though doing so
might go against their own self-interest.
45. _____ are thoughts and feelings that tell people what is right or wrong.
(p. 81)
A. Moral scruples
B. Ethical dilemmas
C. Ethics
D. Norms
E. Emotions
Moral scruples are thoughts and feelings that tell a person what is right or wrong.
Ethical beliefs alter and change as time passes, and as they do so, laws change to reflect the changing
ethical beliefs of a society.
A. ethics and laws can be fixed or flexible principles depending on the situation.
B. ethics are fixed but laws are flexible principles.
C. neither laws nor ethics are fixed principles.
D. ethics are flexible but laws are fixed principles.
E. both ethics and laws are fixed principles.
Ethical beliefs alter and change as time passes, and as they do so, laws change to reflect the changing
ethical beliefs of a society.
A. Community
B. Society
C. Customers
D. Government
E. Distributors
49. Stockholders are interested in the way a company operates because they:
(p. 84)
Stockholders are interested in the way a company operates because they want to maximize the return on
their investment.
A. stockholders.
B. customers.
C. managers.
D. working-level employees.
E. consultants.
Managers are the stakeholder group that bears the responsibility to decide which goals an organization
should pursue to most benefit stakeholders and how to make the most efficient use of resources to
achieve those goals.
51. Issues concerning this group of stackholder, one of which is product quality specifications, are governed
(p. 87) by the terms of the legal contracts.
A. Customers
B. Managers
C. Employees
D. Supplies and distributors
E. Stockholders
Important issues concerning how and when payments are to be made or product quality specifications
are governed by the terms of the legal contracts a company signs with its suppliers and distributors.
52. _____ are often regarded as the most critical stakeholder group.
(p. 88)
A. Stockholders
B. Managers
C. Employees
D. Customers
E. Suppliers
Customers are often regarded as the most critical stakeholder group since if a company cannot attract
them to buy its products, it cannot stay in business.
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #52
Learning Objective: 03-1
Topic: Customers
53. Which of the following is NOT an ethical rule to analyze the effect of business decisions on
(p. 89) stakeholders?
A. Justice
B. Moral Rights
C. Utilitarian
D. Practical
E. Existentialism
To help themselves and employees make ethical decisions and behave in ways that benefit their
stakeholders, managers can use four ethical rules or principles to analyze the effects of their business
decisions on stakeholders: the utilitarian, moral rights, justice, and practical rules.
The utilitarian rule is that an ethical decision is a decision that produces the greatest good for the
greatest number of people.
55. According to which of the following rule, an ethical decision is the one that best maintains people's
(p. 90) fundamental privileges?
A. Justice
B. Moral Rights
C. Utilitarian
D. Practical
E. Existentialism
Under the moral rights rule, an ethical decision is a decision that best maintains and protects the
fundamental or inalienable rights and privileges of the people affected by it.
Under the moral rights rule, an ethical decision is a decision that best maintains and protects the
fundamental or inalienable rights and privileges of the people affected by it.
57. According to which of the following rules, an ethical decision is one that distributes rewards and harm
(p. 90) in a fair way?
A. Justice
B. Moral Rights
C. Utilitarian
D. Practical
E. Existential
The justice rule is that an ethical decision is a decision that distributes benefits and harms among people
and groups in a fair, equitable, or impartial way.
58. Under the practical rule, an ethical decision is one that a manager has no hesitation or reluctance about
(p. 91) communicating to people outside the company because:
A. the manager will not be held responsible for the consequences of the decision.
B. a typical person in the society would consider the decision acceptable.
C. a typical person in the society wouldn't care about the decision.
D. a typical person in the society wouldn't know about the decision.
E. the manager is not the decision maker.
The practical rule is that an ethical decision is one that a manager has no hesitation or reluctance about
communicating to people outside the company because the typical person in a society would think it is
acceptable.
The practical rule is that an ethical decision is one that a manager has no hesitation or reluctance about
communicating to people outside the company because the typical person in a society would think it is
acceptable.
60. Under the practical rule, answering "yes" to all of the following questions would make the decision
(p. 91) ethical EXCEPT:
A business decision is probably acceptable on ethical grounds if a manager can answer yes to each of
these questions:
61. One managerial implication of the justice model is that managers should base their decisions on:
(p. 91)
The ethical dilemma for managers is to determine the fair rules and procedures for distributing
outcomes to stakeholders.
A. trust.
B. reputation.
C. ethics.
D. moral scruple.
E. effectiveness.
Trust is the willingness of one person or group to have faith or confidence in the goodwill of another
person, even though this puts them at risk.
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #62
Learning Objective: 03-1
Topic: Why Should Managers Behave Ethically?
63. Which of the following can be defined as the esteem or high repute that individuals or organizations
(p. 93) gain when they behave ethically?
A. Trust
B. Reputation
C. Ethics
D. Moral scruple
E. Effectiveness
Reputation, the esteem or high repute that people or organizations gain when they behave ethically, is
an important asset.
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #63
Learning Objective: 03-1
Topic: Why Should Managers Behave Ethically?
64. Which of the following emanates from unwritten attitudes, values, and norms that influence how people
(p. 93-94) interact with each other?
A. Societal ethics
B. Occupational ethics
C. Individual ethics
D. Organizational ethics
E. Fundamental ethics
Societal ethics emanate from a society's laws, customs, and practices, and from the unwritten attitudes,
values, and norms that influence how people interact with each other.
A. Societal ethics
B. Occupational ethics
C. Individual ethics
D. Organizational ethics
E. Fundamental ethics
Many decisions or behaviors that one person finds unethical may be acceptable to another person
because of differences in their personalities, values, and attitudes.
A. Family
B. Friends
C. Personlality
D. Experience
E. Bosses
Sources of individual ethics include the influence of one's family, peers, and upbringing in general, and
an individual's personality and experience.
67. Which of the following refers to the invisible barriers that prevent minorities and women from being
(p. 99) promoted to top corporate positions?
A. Affirmative action
B. Flight ceiling
C. Glass cliff
D. Glass ceiling
E. Gerschenkron effect
The term glass ceiling alludes to the invisible barriers that prevent minorities and women from being
promoted to top corporate positions.
AACSB: Analytic
Blooms Taxonomy: Knowledge
Difficulty: Easy
Jones - Chapter 03 #67
Learning Objective: 03-3
Topic: The Increasing Diversity of the Workforce and the Environment
68. Title VII of the Civil Rights Act became a law in the:
(p. 100)
A. 1963
B. 1964
C. 1967
D. 1978
E. 1990
Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment decisions on the basis
of race, religion, sex, color, or national origin; covers a wide range of employment decisions, including
hiring, firing, pay, promotion, and working conditions (Table 3.1)
Family and Medical Leave Act of 1993 requires that employers provide 12 weeks of unpaid leave for
medical and family reasons, including paternity and illness of a family member.
While no federal law prohibits discrimination based on sexual orientation, 20 states have such laws, and
a 1998 executive order prohibits sexual orientation discrimination in civilian federal offices.
A. Decision-maker
B. Liaison
C. Leader
D. Figurehead
E. Negotiator
72. A manager who is effectively managing diversity in the disseminator role would:
(p. 107)
Individuals performing a disseminator's role inform employees about diversity policies and initiatives
and the intolerance of discrimination (Table 3.2).
73. A manager who is effectively managing diversity in the liaison role would:
(p. 107)
A. convey that the effective management of diversity is a valued goal and objective.
B. serve as a role model for treating others fairly.
C. help diverse individuals to coordinate their efforts.
D. support diversity initiatives in the wider community.
E. take quick action to correct inequalities and curtail discriminatory behavior.
An individual performing a liaison's role would enable diverse individuals to coordinate their efforts and
cooperate with one another (Table 3.2).
A. Resource allocator
B. Entrepreneur
C. Monitor
D. Negotiator
E. Disturbance handler
Justin is commiting resources to develop new ways to effectively manage diversity and eliminate biases
and discrimination (Table 3.2).
75. A top manager giving a speech to employees about the importance of diversity is acting as a:
(p. 107)
A. figurehead.
B. leader.
C. liaison.
D. entrepreneur.
E. negotiator.
An individual performing a figurehead's role would convey that the effective management of diversity is
a valued goal and objective (Table 3.2).
76. Taking quick action to correct inequalities and curtailing discriminatory behavior would come under
(p. 107) which of the following roles?
A. Leader
B. Disturbance handler
C. Negotiator
D. Liaison
E. Spokesperson
An individual performing a disturbance handler's role would take quick action to correct inequalities
and curtail discriminatory behavior (Table 3.2).
A. Leader
B. Disturbance handler
C. Negotiator
D. Liaison
E. Spokesperson
An individual performing a negotiator's role would Work with organizations (e.g., suppliers) and groups
(e.g., labor unions) to support and encourage the effective management of diversity (Table 3.2).
78. When a manager asks a subordinate for sexual favors in return for a promotion, what type of sexual
(p. 111) harassment has occurred?
Quid pro quo sexual harassment occurs when a harasser asks or forces an employee to perform sexual
favors to keep a job, receive a promotion, receive a raise, obtain some other work-related opportunity,
or avoid receiving negative consequences such as demotion or dismissal.
Quid pro quo sexual harassment occurs when a harasser asks or forces an employee to perform sexual
favors to keep a job, receive a promotion, receive a raise, obtain some other work-related opportunity,
or avoid receiving negative consequences such as demotion or dismissal.
80. If a female manager tells a male subordinate that he is in line for a pay raise but that he will get that pay
(p. 111) raise only if he becomes sexually involved with her, this manager is exhibiting:
This example fits the definition of quid pro quo harassment because the manager is threatening negative
consequences if the subordinate refuses her advances.
AACSB: Application
Blooms Taxonomy: Application
Difficulty: Hard
Jones - Chapter 03 #80
Learning Objective: 03-6
Topic: Forms of Sexual Harassment
81. When managers are faced with a work environment that they find personally offensive because of their
(p. 111) gender, which of the following has occurred?
A. A Sarbannes-Oxley violation
B. The glass ceiling has been broken
C. Quid pro quo harassment
D. A hostile work environment
E. A non-accommodative environment
Hostile work environment sexual harassment occurs when organizational members are faced with an
intimidating, hostile, or offensive work environment because of their sex.
82. A female subordinate is offended by posters in her supervisor's office that are degrading to women. She
(p. 111) avoids going into the office, even when she has a work-related question. Her supervisor has exhibited:
Hostile work environment sexual harassment occurs when organizational members are faced with an
intimidating, hostile, or offensive work environment because of their sex.
83. A male manager stands smiling as a worker from another unit makes a remark to his female subordinate
(p. 111) about her appearance which she considers to be sexually demeaning. This male manager has exhibited:
Hostile work environment sexual harassment occurs when organizational members are faced with an
intimidating, hostile, or offensive work environment because of their sex.
Hostile work environment sexual harassment occurs when organizational members are faced with an
intimidating, hostile, or offensive work environment because of their sex.
85. Which of the following is NOT one of the recommended steps to eliminate sexual harassment?
(p. 111-
112)
A. Develop and clearly communicate a sexual harassment policy
B. Establish and use a complaint procedure
C. Take corrective action against sexual harassers
D. Fire all sexual harassers regardless of the nature or size of the offense
E. Train members about sexual harassment
Steps managers can take to eradicate sexual harassment include developing and clearly communicating
a sexual harassment policy endorsed by top management, using a fair complaint procedure to
investigate charges of sexual harassment, taking corrective actions as soon as possible, and provide
sexual harassment education and training to all organizational members, including managers.
Ensuring that alleged harassers are fairly treated is a part of using a fair complaint procedure to
investigate charges of sexual harassment.
A society passes laws based on which group within that society can summon the most support for its
ethical interests and beliefs. Neither law nor ethics is a fixed principle - they change over time and
vary between societies. Laws change and even disappear with changing ethical beliefs. Business must
operate within societies, and must obey laws or risk the consequences.
88. Who are "stakeholders"? List at least four examples of different types of stakeholders.
(p. 83)
Stakeholders are people and groups that supply a company with its productive resources and so have a
claim on and stake in the company. Stakeholders include employees, customers, suppliers, shareholders,
suppliers, and the local community.
AACSB: Analytic
Blooms Taxonomy: Comprehension
Difficulty: Moderate
Jones - Chapter 03 #88
Learning Objective: 03-1
Topic: Stakeholders and Ethics
89. Why are managers a critically important group of stakeholders?
(p. 85)
Managers are a vital stakeholder group because they are responsible for using a company's financial
capital and human resources to increase its performance and thus its stock price. Managers are the
stakeholder group that bears the responsibility to decide which goals an organization should pursue to
most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
90. Describe the questions that a manager should ask under the practical rule to decide if a business
(p. 91) decision is acceptable on ethical grounds.
1. Does my decision fall within the accepted values or standards that typically apply in business activity
today?
2. Am I willing to see the decision communicated to all people and groups affected by it?
3. Would the people with whom I have a significant personal relationship approve of the decision?
91. Describe the four models of ethics and discuss their managerial implications.
(p. 90-91)
The models are the utilitarian, the moral rights, the justice, and the practical models. The utilitarian
model proposes that decisions should favor the greatest good for the greatest number of people. Under
this model, a manager should contrast alternative courses of action, comparing the benefits and costs
they bring for various stakeholder groups.
The moral rights model proposes that decisions should protect the basic rights and privileges of people
affected by the decision. In this model, the manager would compare alternatives based on their effects
on stakeholders' rights.
The justice model focuses on decisions that distribute outcomes fairly. Under this philosophy, managers
should compare courses of action based on the fairness of distribution of outcomes.
The practical model suggests that an ethical decision is one that a manager has no hesitation or
reluctance about communicating to people outside the company, because the typical person in society
would think it is acceptable.
1. Relentless pursuit of self-interest can lead to a "tragedy of the commons" if everyone behaves that
way.
2. Without ethical behavior, trust cannot exist; without trust, efficiency and effectiveness of inter-
business relationships will be reduced.
1. Societal ethics are standards of how members of a society should treat one another in matters
involving issues such as fairness, justice, and individual rights. They derive from a society's laws,
customs, practices, norms and values.
2. Occupational ethics govern how members of a profession, trade, or craft should conduct themselves
when performing work-related activities. They derive from professional training and socialization.
3. Individual ethics are personal standards and values that determine how they should act when self-
interest is a stake. They derive from family, peers, upbringing and experience.
94. Describe the major provisions of Title VII of the Civil Rights Act, the Equal Pay Act, and the
(p. 100) Americans with Disabilities Act.
Title VII prohibits discrimination in employment decisions on the basis of race, religion, sex, color, or
national origin. Decisions include hiring, firing, pay, promotion, and working conditions.
The Equal Pay Act requires men and women to be paid equally if they are performing equal work.
The Americans with Disabilities Act prohibits discrimination against disabled individuals in
employment decisions and requires employers to make accommodations for disabled workers to enable
them to perform their jobs.
A key issue for managers when it comes to religious diversity is recognizing different religions and their
beliefs, with particular attention being paid to when religious holidays fall. Critical meetings should not
be scheduled during a holy day for members of a certain faith. Managers should be flexible in allowing
people to have time off for religious observances.
Allowing employees to leave work early on certain days instead of taking a lunch break or posting
holidays for different religions on the company calendar can go a long way toward making individuals
of diverse religions feel respected and valued as well as enable them to practice their faith.
96. Does the ADA cover AIDS? Why are employers sometimes reluctant to hire these individuals? What
(p. 102- should employers do about this?
103)
The ADA does prohibit discrimination against those who test positive for HIV or AIDS. Sometimes,
managers themselves or other subordinates may be reluctant to work with persons who test positive,
out of fear, prejudice, or ignorance. Employers have an obligation to educate all employees, including
managers, about the nature of these conditions, to treat these employees fairly, and to accommodate
their conditions.
AIDS awareness training can help people overcome their fears and also provide managers with a tool
to prevent illegal discrimination against HIV-infected employees. Such training focuses on educating
employees about HIV and AIDS, dispelling myths, communicating relevant organizational policies, and
emphasizing the rights of HIV-positive employees to privacy and an environment that allows them to be
productive.
98. It has been said that managing diversity makes good business sense. Do you agree or disagree with this
(p. 108- statement? Defend your argument with either pros or cons.
110)
The two types are "quid pro quo" and "hostile work environment".
In quid pro quo, a harasser asks or forces an employee to perform sexual favors to keep a job, get a
promotion, raise, or opportunity, or avoid receiving negative consequences. Student examples may vary.
In hostile work environment, workers are faced with an intimidating, hostile, or offensive work
environment because of their sex. Student examples may vary.
100. There are a number of actions that managers can take to reduce and eliminate sexual harassment on the
(p. 111- job. Discuss two of the four common steps that managers can take in an attempt to deal with this type of
112)
problem on the job.