A+ 29/30 CORRECT


Which of the following is true about a compliance-based culture and/or a value-based culture?

Values-based organizations include a compliance structure.

Value-based organizations do not have codes of conduct.

A values-based culture is one that reinforces a particular set of rules rather than a particular set of values.

A compliance-based culture recognizes that where a rule does not apply, the firm must rely on the personal integrity of its workforce when decisions need to be made.

Jim resides in the vicinity of a steel manufacturing firm. Any changes in the pollution control or waste treatment policy of the firm indirectly affects Jim. In this sense, Jim is a(n) _____.


employee of the firm



Which of the following is involved in environmental problems according to the market-based approach to resolving environmental challenges?

Allocation and distribution of limited resources

Inability of businesses to produce and sell limited resources

Lack of knowledge of producing renewable resources

Lack of use of appropriate substitutes for limited resources

Which of the following versions of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment?

Social web


Social entrepreneurship


The legal doctrine of strict liability is ethically controversial because:

it assumes informed consent of the buyer and therefore it is assumed to be ethically legitimate.

it allows consumers to assume that products are safe for use.

it holds a business accountable for paying damages whether or not it was at fault.

it holds that consumer demand depends upon what producers sell.

The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by:

utilizing a small percentage of profit on social causes

doing charitable work to build a good reputation within the community

pursuing social ends as the very core of an organization’s mission

emphasizing the importance of achieving the desired economic goals

Which of the following tools requires a group of participant to gather in order discuss their experiences, feelings, or thoughts on the organization’s social initiative?


focus group

data grouping


While approaching an ethical issue in marketing, the rights-based tradition would:

ask to what degree the participants are respected as free and autonomous agents rather than treated simply as means to the end of making a sale.

want to know the degree to which the transaction provided actual as opposed to merely apparent benefits for each participant.

attempt to find out about other values that are affected by the exchange

calculate the benefits and costs of each exchange 

Which of the following is true about value-based cultures?

They emphasize obedience to the rules as the primary responsibility of ethics.

These cultures are perceived to be more flexible and far-sighted corporate environments.

They reflect the traditional approach of classifying corporate culture.

They are only as strong and as precise as the rules with which workers are expected to comply.

The _____ model of CSR holds that, like individuals, business is free to contribute to social causes as a matter of philanthropy, and business has no strict obligation to contribute to social causes; but it can be a good thing when they do so.


social web



Enlightened self-interest, an important justification offered for corporate social responsibility, presumes that:

profits are independent of ethics

good ethics can also be good business

measurement of bottom-line impact of ethical decision making is unimportant

bottom-line impact of ethical decision making can be measured and compared

The Triple Bottom Line approach involves measuring business success of sustainable businesses and sustainable economic development in terms of:

economic, legal, and environmental sustainability

economic, legal, and competitive sustainability

economic, ethical, and environmental sustainability

legal, competitive, and environmental sustainability 

A(n) _____ provides concrete guidance for internal decision making creating a built-in risk management system.

Income statement


Code of conduct

Organization vision

The practice of attending to the “image” of a firm is referred to as:



crisis management

reputation management

In the ethical decision-making process, identify the steps that might arise in reverse order, depending on the circumstances.

Determining the facts; identifying the impact of the decision on stakeholders

Determining the facts; identifying the ethical issues

Identifying the impact of the decision on stakeholders; considering the available alternatives

Identifying the ethical issues; considering the impact of the decision on stakeholders

The first step in constructing a personal code or mission for a firm is to:

identify clear steps as to how the cultural shift will occur

believe that the culture is actually possible and achievable

articulate a clear vision regarding the firm’s direction

ask oneself what one stands for or what the firm stands for

When a firm engages in socially responsible activities with a prime focus on reputation:

profits have to be sacrificed for social causes

the measure of positive reputation gained is impossible to calculate

social responsibility tends to become a form of social marketing

it always loses employee loyalty

Which of the following is a criticism of the Sarbanes-Oxley Act?

It does not require lawyers to report concerns of wrongdoing if not addressed.

It excludes requirements for certification of documents by officers.

It does not require codes of ethics for senior financial officers.

It imposes extraordinary financial costs on the firms.

When would a values-based culture rely on the personal integrity of its workforce for making decisions?

In situations where rules are applicable to make decisions

When legal bodies are empowered to monitor compliance

In situations where the rules of the organization do not apply

In situations where a set of principles should be enforced

Telling organizations that their ethical responsibilities end with obedience to the law:

eliminates ambiguity while making personal ethics-related decisions

is just inviting more legal regulation

is enough to maintain an ethical business environment

reduces the frequency of corporate scandals

Which of the following is emphasized by a compliance-based culture?

Reliance on personal integrity of employees for decision making

Obedience to rules as the primary responsibility of ethics

Reinforcement of a set of values rather than a set of rules

Use of values as the principle for decision making

The failure of personal ethics among companies like Enron and WorldCom led to the creation of the:

Clinger–Cohen Act

Brooks Act

Gramm-Leach-Bliley Act

Sarbanes–Oxley Act

Which of the following is true about technology and its usage?

It allows users to be much more careful with their communications.

It tends to cause facelessness that is a challenge that has to be met.

It ensures that the lines between people’s personal lives and professional lives are not blurred.

It prohibits access to any information that was once easily accessible.

Which of the following statements is true of the Sarbanes-Oxley Act?

It was passed by Congress because corporate boards failed to police themselves.

It fails to provide oversight in terms of direct lines of accountability and responsibility.

It is enforced by the Financial Accounting Standards Board.

It is also known as the Financial Services Modernization Act of 2002.

In the ethical decision-making process, identify the step that involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders.

Comparing and weighing the alternatives

Identifying the ethical issues

Making the decision

Monitoring and learning from the outcomes

Which of the following is true about the economic model of CSR?

It holds that social goals should be at the heart of a firm’s mission.

It contends that the goal of business managers should be to pursue profit within the law.

It holds that a business should prioritize environmental sustainability.

It has its roots in the Kantian tradition of ethics.

Which of the following is an advantage of monitoring?

Monitoring tends to promote effective performance since it reduces employees’ stress and pressure.

Monitoring increases the level of worker autonomy and respect, as well as workers’ right to control their environment.

Monitoring allows to ensure effective performance by preventing the loss of productivity to inappropriate technology use.

Monitoring tends to create a friendly workplace without any suspicions.

If the basis for finding an invasion of privacy is often the employee’s legitimate and reasonable expectation of privacy, then a situation where there is no real expectation of privacy occurs when the:

employee has actual notice

work requires transference of sensitive data

employer is covered under the ECPA

employee belongs to a minority group

Consequences, justifications, principles, rights, or duties are all methods to:

identify the ethical issues involved

compare and weigh alternatives

identify the stakeholders that may be impacted by the decisions

find out about the various available alternatives

A firm that balances its social goals against economic goals and does justice to both is said to follow the:

integrative model of corporate social responsibility

economic model of corporate social responsibility

stakeholder model of corporate social responsibility

social web model of corporate social responsibility