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Schermerhorn & Bachrach Management, 14th edition Test Bank
Chapter 03: Ethics and Social Responsibility
True/False
1. Values are broad beliefs about what is appropriate behavior.
Answer: True
Learning Objective: 3.1
Difficulty: Easy
AACSB: Ethical understanding and reasoning
Bloom’s Taxonomy: Knowledge
2. Terminal values are preferences regarding the means to desired ends.
Answer: False
Difficulty: Easy
3. Among the terminal values held important by managers are honesty, ambition,
imagination, and self-discipline.
Answer: False
Difficulty: Easy
4. The utilitarian view considers ethical behavior to be that which delivers the greatest good
to the greatest number of people.
Answer: True
Difficulty: Easy
Copyright ©2021 John Wiley & Sons, Inc. 3-1

5. Cultural view is based on the belief that ethical decisions treat people impartially and
fairly, according to legal rules and standards.
Answer: False
Difficulty: Easy
6. Procedural justice involves the degree to which policies and rules are fairly applied to all
individuals.
Answer: True
Difficulty: Easy
7. Distributive justice is the degree to which others are treated with dignity and respect.
Answer: False
Difficulty: Easy
8. Commutative justice involves the degree to which outcomes are allocated fairly among
people and without respect to individual characteristics based on ethnicity, race, gender,
age, or other particularistic criteria.
Answer: False
Difficulty: Easy
9. Ethical behavior is determined by its cultural context.

Answer: True
Difficulty: Easy
10. Cultural relativism suggests ethical standards apply universally across all cultures.
Answer: False
Difficulty: Easy
11. Ethical imperialism is an attempt to impose one’s ethical standards on other cultures.
Answer: True
Difficulty: Easy
12. Cultural relativism is a form of ethical imperialism.
Answer: False
Difficulty: Easy
13. An ethical dilemma is a situation that offers potential benefit or gain and that may also be
considered unethical.
Answer: True
Difficulty: Easy

14. Questions such as “Is it legal?,” “Is it right?,” “Whom does it affect?,” “Who benefits?,”
and “Who gets hurt?” are referred to as spotlight questions.
Answer: False
Difficulty: Moderate
Bloom’s Taxonomy: Comprehension
15. Asking and answering spotlight questions when having to make an uncomfortable
decision is a powerful way to double-check and test whether a decision is consistent with
an individual’s personal ethical standards.
Answer: True
Difficulty: Easy
16. In Kohlberg’s preconventional level of moral development, moral thinking is largely

limited to issues of punishment, obedience, and personal interest.
Answer: True
Difficulty: Easy
17. In Kohlberg’s conventional level of moral development, the individual is strongly

principle-centered.
Answer: False
Difficulty: Easy
18. The ethics culture in an organization sets high standards and may even push people to
behave more ethically than they otherwise would.

Answer: True
19. A common statement by a rationalizer is “It’s in everyone’s best interests.” This response
involves the mistaken belief that because someone can be found to benefit from the
behavior, the behavior is also in the individual’s or the organization’s best interests.
Answer: True
Difficulty: Easy
20. Government laws and regulations can describe and encourage ethical behavior, but they
can’t guarantee ethical conduct.
Answer: True
Difficulty: Easy
21. An amoral manager chooses to behave unethically.
Answer: False
Difficulty: Easy
22. According to Archie Carroll, managers who are engaged in unethical practices remain
mostly uninformed or undisciplined in considering the ethical aspects of their behavior.
Answer: True
Difficulty: Easy


23. Strong work group identities that encourage loyalty and self-censorship are barriers to
whistle blowing.
Answer: True
Difficulty: Easy
24. Corporate social responsibility means taking personal responsibility to always respect and
protect the interests of society at large.
Answer: False
Difficulty: Easy
25. The triple bottom line evaluates organizational performance on economic, social, and
environmental criteria.
Answer: True
Difficulty: Easy
26. The three P’s of organizational performance are patience, politeness, and planning.
Answer: False
Difficulty: Easy

27. Competitors, labor unions, public-interest groups, and legal institutions are all
shareholders of an organization.
Answer: False
28. Demand legitimacy indicates the extent to which a stakeholder’s concerns need
immediate attention.
Answer: False
Difficulty: Easy
29. According to the classical view of CSR, the principal obligation of management should
be to owners and shareholders.
Answer: True
Difficulty: Easy
30. Corporate governance involves making sure day-to-day performance is achieved ethically
and in socially responsible ways.
Answer: False
Difficulty: Easy
Multiple Choice

31. Ethics is defined as the _____ code of principles that sets standards of good or bad, or
right or wrong, in one’s conduct.
A. social
B. legal
C. moral
D. cultural
E. religious
Answer: C
Difficulty: Easy
32. Which of the following is a terminal value?

A. Honesty
B. Ambition
C. Imagination
D. Self-discipline
E. Happiness
Answer: E
Difficulty: Easy
33. Which of the following is an instrumental value?

A. Honesty
B. Self-respect
C. Freedom
D. Family security
E. Happiness
Answer: A
Difficulty: Easy

34. The _____ view of ethical understanding and reasoning abilities considers ethical
behavior to be that which delivers the greatest good to the greatest number of people.
A. individualism
B. religious
C. justice
D. utilitarian
E. moral rights
Answer: D
Difficulty: Easy
35. Samantha Eagles, the CEO of Gama Tech., shuts down offshore operations of the
company during a period of economic recession. This resulted in over 20% cut in the
workforce but was instrumental in keeping the company profitable and in saving the jobs
of the remaining workers. Which ethical viewpoint would Susan most likely use to justify
her decision?
A. Individualism
B. Religious
C. Justice
D. Utilitarian
E. Moral rights
Answer: D
AACSB: Application of knowledge
Bloom’s Taxonomy: Application
36. The individualism view of ethical behavior is based on the belief that one’s primary
commitment is to the long-term advancement of self-interests. Lying and cheating for
immediate gain are not tolerated by this ethical view point because lying and cheating
A. are inherently harmful to a person’s psyche.
B. do not help a person over time.
C. are against the law.
D. are contrary to all religious beliefs.
E. cause an unfair distribution of resources.
Answer: B

37. In business practice, the _____ view of ethical understanding and reasoning abilities may
result in greed and a tendency to “push the law to its outer limits.”
A. individualism
B. religious
C. justice
D. utilitarian
E. moral rights
Answer: A
38. According to the individualism view of ethical behavior, society will be best off if:
A. individuals make decisions based on the greater common good.
B. everyone works toward the betterment of society.
C. everybody lives by the letter of the law.
D. everyone acts in a way that maximizes his or her own happiness.
E. everyone follows a universal moral code of behavior.
Answer: D
39. In the _____ view, ethical behavior respects and protects fundamental rights.
A. individualism
B. justice
C. moral rights
D. utilitarian
E. humanitarian rights
Answer: C

Difficulty: Easy
40. In the _____ view, ethical behavior treats people impartially and fairly.
A. individualism
B. justice
C. moral rights
D. utilitarian
E. humanitarian
Answer: B
Difficulty: Easy
41. _____ justice involves the degree to which policies and rules are fairly applied to all
individuals.
A. Procedural
B. Economic
C. Distributive
D. Commutative
E. Interactional
Answer: A
Difficulty: Easy
42. Which of the following addresses the fair allocation of outcomes, without any communal
or gender biases?
A. Procedural justice
B. Fundamental justice
C. Distributive justice
D. Commutative justice
E. Interactional justice
Answer: C


Difficulty: Easy
43. Interactional justice involves the:

A. degree to which policies and rules are fairly applied to all individuals.
B. degree to which outcomes are allocated fairly among people and without respect to
individual characteristics.
C. degree to which people treat one another with dignity and respect.
D. fairness of exchanges or transactions.
E. honesty and integrity of business dealings.
Answer: C
Difficulty: Easy
44. Suave ZN, a franchisee outlet for Eco Motors, an electric car company, sells Chris
Johnson, an older model car. Suave ZN sells the older model without informing Chris of
the newer, better models released by Eco Motors in the same price band. According to
which justice dimension would Suave ZN conduct be considered unethical?
A. Procedural
B. Economic
C. Distributive
D. Commutative
E. Interactional
Answer: D
45. What is the assumption made in the individualism view of ethical behavior?
A. It does not promote honesty or integrity in people.
B. People are self-regulating in the quest for long-term advantage for the self.
C. The outcome of an ethical decision does not affect the majority of the society.
D. Every person works in coordination with another to fulfil each other’s goals.

E. No individual can take advantage of the freedom allowed in this approach.
Answer: B
46. Which of the following is a drawback of the moral rights view of ethical behavior?
A. It relies on the assessment of future outcomes that are often difficult to predict and are
tough to measure accurately.
B. It presumes that individuals are self-regulating; however, not everyone has the same
capacity or desire to control their behaviors.
C. It is possible for a few individuals to take advantage of the freedom allowed by this
perspective and disrupt the degree of trust that exists within a business community.
D. It does not ensure that the outcomes associated with protecting individual rights are
beneficial to the majority of society.
E. It places an emphasis on fairness and equity, both of which cannot be ensured
simultaneously.
Answer: D
47. An expatriate of Country A argues that the practice of giving corporate gifts is acceptable
in another country as long as it is consistent with local laws and customs. In this scenario,
the Country A expatriate is guided by _____.
A. ethnocentrism
B. moral relativism
C. ethical imperialism
D. cultural relativism
E. moral absolutism
Answer: D

48. _____ is an attempt to impose one’s ethical standards on other cultures.

A. Polycentrism
B. Moral relativism
C. Ethical imperialism
D. Cultural relativism
E. Moral absolutism
Answer: C
Difficulty: Easy
49. According to Thomas Donaldson, the core values or “hyper-norms” that should transcend
cultural boundaries focus on human dignity, basic rights, and _____.
A. cultural tolerance
B. social responsibility
C. acceptance
D. good citizenship
E. stewardship
Answer: D
Difficulty: Easy
50. Managers with strong _____, ones that provide personal rules or strategies for value-
based decision making, will act more consistently and confidently than those without.
A. religious affiliations
B. ethical frameworks
C. ethnocentric backgrounds
D. social-centered behavior
E. self-centered behavior
Answer: B
Difficulty: Easy

51. Which of the following is a spotlight question when dealing with ethical dilemmas?
A. What sort of trouble will I get into because of my decision?
B. Are there any legal consequences to my decision?
C. Who will be affected by my decision?
D. How will I feel if my family finds out about my decision?
E. How will my career be affected by my decision?
Answer: D
52. When faced with an ethical dilemma, spotlight questions are used to test possible
decisions for:
A. the risk of public disclosure.
B. potential harm to self.
C. the risk to job security.
D. potential harm to others.
E. possible legal implications.
Answer: A
Difficulty: Easy
53. In Kohlberg’s preconventional level of moral development, decisions:

A. are made according to internal principles.
B. are likely to be based on following social norms.
C. made follow rules to help society run smoothly.
D. are likely to be directed toward achieving personal gain.
E. are consistent with universal principles.
Answer: D

54. At the postconventional level of moral development, an individual is strongly _____.

A. social-centered
B. peer-pressure oriented
C. self-centered
D. principle-centered
E. punishment-driven
Answer: D
Difficulty: Easy
55. The Sarbanes-Oxley Act of 2002 makes it easier for corporate executives to be tried and
sentenced to jail for _____.
A. sexual harassment
B. nepotism
C. financial misconduct
D. biodata fraud
E. misuse of organizational facilities
Answer: C
Difficulty: Easy
56. After doing something that might be considered unethical, a rationalizer says: “It’s not
really illegal.” This expresses a mistaken belief that:
A. one’s behavior is acceptable, especially in ambiguous situations.
B. because someone can be found to benefit from the behavior, it is also in the
individual’s or the organization’s best interests.
C. The behavior is justified and cannot be held wrong at any time.
D. the organization’s (on behalf of whom the individual acts) best interests stand above
all others.
E. as long as people have acted in good faith, their behavior is ethical.
Answer: A


57. When rationalizers tell themselves that “no one will ever know about it,” they believe
that:
A. a questionable behavior is acceptable, especially in ambiguous situations.
individual’s or the organization’s best interests.
C. a questionable behavior is really “safe” and will never be found out or made public.
D. the organization’s (on behalf of whom the individual acts questionably) best interests
stand above all others.
E. as long as people have acted in good faith their behavior is ethical.
Answer: C
58. When rationalizers proceed with a questionable action because of a mistaken belief that
“the organization will stand behind me,” they believe that:
A. a questionable behavior is acceptable, especially in ambiguous situations.
organization’s best interests.
C. a questionable behavior is really “safe” and will never be found out or made public.
D. the organization values loyalty over ethical decision-making.
E. as long as people have acted in good faith their behavior is ethical.
Answer: D
59. Fredrick works for Vision, a billboard advertising agency, which hires billboards from
owners on behalf of clients. Fredrick routinely accepts pay-offs from billboard owners in
exchange for referring their billboards to clients. This behavior could result in his
dismissal from Vision, if found out. Which statement is Fredrick most probably utilizing
to rationalize his actions?
A. “It’s not really illegal.”

B. “It’s in everyone’s best interests.”

C. “No one will ever know about it.”
D. “The organization will stand behind me.”
E. “I cannot be held responsible.”
Answer: C
60. According to Archie Carroll, an _____ manager is defined as a manager who chooses to
behave unethically.
A. amoral
B. apathetic
C. immoral
D. individualist
E. ethnocentric
Answer: C
Difficulty: Easy
61. According to Archie Carroll, an _____ manager disregards the ethics of an act or a
decision, but does so unintentionally or unknowingly.
A. amoral
B. apathetic
C. immoral
D. individualist
E. ethnocentric
Answer: A
Difficulty: Easy

62. In Kohlberg’s terms, which of the following types of manager is at the postconventional
level of moral development?
A. Unethical
B. Amoral
C. Ethnocentric
D. Moral
E. Immoral
Answer: D
63. Archie Carroll suggests that most managers act _____.

A. ethically
B. amorally
C. immorally
D. morally
E. unscrupulously
Answer: B
Difficulty: Easy
64. Which of the following is one way to instill ethical behavior in an organization?
A. Promoting rationalizations for unethical behavior
B. Promoting a strict legal code
C. Conducting ethics training
D. Conducting behavioral training
E. Conducting physical training
Answer: C
Difficulty: Easy

65. A _____ is a formal statement of an organization’s values and ethical principles that set
expectations for behavior.
A. code of ethics
B. mission statement
C. code of conduct
D. legal code
E. value statement
Answer: A
Difficulty: Easy
66. Which of the following is a primary reason why almost half the workers in the United
States fail to blow the whistle to report wrongdoings they observe at work?
A. A flexible and lenient chain of command
B. Weak work group identities that discourage loyalty and self-censorship
C. Presence of ethical leadership
D. The belief that no corrective action would be taken
E. The lack of any commitment to the organization
Answer: D
67. Which of the following is true of a whistleblower?

A. A whistleblower is the first to act unethically in an organization.
B. Whistleblowers unintentionally disregard the ethics of an act or a decision.
C. Whistleblowers are members of management who specifically look out for unethical
behavior among employees.
D. A whistleblower exposes the misdeeds of others in organizations.
E. Whistleblowers are members of law enforcement specifically trained to deal with
financial misconduct.
Answer: D

68. _____ describes the obligation of an organization to act in ways that serve both its own
interests and the interests of society at large.
A. Sustainability
B. Corporate accountability
C. Environmental stewardship
D. Corporate social responsibility
E. Corporate citizenship
Answer: D
Difficulty: Easy
69. Stewardship in management means taking personal responsibility to always respect and
protect the interests of _____ at large.
A. society
B. shareholders
C. management
D. the environment
E. the organization
Answer: A
Difficulty: Easy
70. The _____ evaluates organizational performance on economic, social, and environmental
criteria.
A. social denominator
B. corporate critical line
C. stewardship audit
D. global value audit
E. triple bottom line
Answer: E
Difficulty: Easy


71. The 3 P’s of organizational performance are:

A. planning, process, and profit.
B. procurement, process, and profit.
C. procurement, processing, and planet.
D. place, people, and policy.
E. profit, people, and planet.
Answer: E
Difficulty: Easy
72. The triple bottom line for assessing organizational performance evaluates how well
organizations are doing on:
A. economic, social, and environmental performance criteria.
B. industrial, market, and customer satisfaction criteria.
C. ecological, environmental, and financial criteria.
D. humanitarian, sociological, and research criteria.
E. geological, anthropological, and lean performance criteria.
Answer: A
73. Stakeholder power:

A. indicates the extent to which stakeholders need immediate attention.
B. refers to the managers’ ability to maximize profits.
C. refers to the shareholders’ ability to influence managers.
D. refers to the capacity of the stakeholder to positively or negatively affect the
operations of the organization.
E. indicates the validity and legitimacy of a stakeholder’s interests in the organization.
Answer: D

Difficulty: Easy
74. Demand legitimacy:

A. indicates the extent to which stakeholders need immediate attention.
C. refers to the shareholders’ ability to influence managers.
D. refers to the capacity of the stakeholder to positively or negatively affect the
operations of the organization.
E. indicates the validity and legitimacy of a stakeholder’s interest in the organization.
Answer: E
Difficulty: Easy
75. Issue urgency:

A. indicates the extent to which the stakeholder’s concerns need immediate attention.
C. refers to the shareholders’ ability to maximize profits.
D. refer to the capacity of the stakeholder to positively or negatively affect the stakes of
the organization.
E. indicates the validity and legitimacy of a stakeholder’s interest in the organization.
Answer: A
Difficulty: Easy
76. According to the classical view of CSR, the principal obligation of management should
be to _____.
A. suppliers
B. owners
C. consumers
D. future generations
E. the state or local government

Answer: B
Difficulty: Easy
77. According to proponents of the classical view of CSR, what drives businesses to make
things like healthier foods and energy-efficient products?
A. The government
B. Profitability
C. Owners and shareholders
D. A sense of indebtedness to society
E. Pressure from civil society
Answer: B
78. The classical view of CSR is that businesses should focus on _____.
A. the environment
B. owners and shareholders
C. profits
D. labor unions
E. future generations
Answer: C
Difficulty: Easy
79. The _____ view of CSR is that business should focus on broader welfare of the
community and not just profits.
A. shared value
B. classical
C. post-modern
D. socioeconomic
E. ethnocentric

Answer: D
Difficulty: Easy
80. Which of the following statements is in agreement with the socioeconomic view of
corporate social responsibility?
A. Financial improvement can be achieved by being socially responsible.
B. The primary responsibility of business is to maximize business profits.
C. By acting responsibly, businesses avoid government regulation.
D. Businesses must be concerned with the broader social concerns and not just with
corporate profits.
E. Society is served best when businesses are allowed to maximize their profits.
Answer: D
81. The _____ view of CSR approaches business decisions with the understanding that
economic and social progress are interconnected.
A. shared value
B. classical
C. post-modern
D. socioeconomic
E. ethnocentric
Answer: A
Difficulty: Easy
82. A company following the virtuous circle of CSR will most likely:
A. become an add-on initiative—funding activities like philanthropy, environmental
preservation, and community projects.
B. pursue a narrow stakeholder perspective focused on maximizing short-term profits.

C. pursue its own interests in competitive settings and make products that are profitable.
D. put society and the environment ahead of shareholders and stakeholders.
E. integrate socially responsible behavior into everyday business goals and activities for
an improved financial performance.
Answer: E
83. Which of the following is most likely to result in a virtuous circle?

A. Unicorn Educational Services makes anonymous donations to charities every year.
B. Holding Hands, a not-for-profit organization, provides free food and shelter to
orphans.
C. Medix Technology funds frequent AIDS awareness programs held by a not-for-profit
organization in the surrounding neighborhood.
D. Bubble Plastics incorporates environmentally friendly manufacturing techniques that
also result in cost savings.
E. Fryt Inc. uses environmentally hazardous chemicals to reduce the cost of
manufacturing its products and to maximize its profits.
Answer: D
84. A(n) _____ strategy tries to avoid and resist pressures for social responsibility.
A. minimalist
B. obstructionist
C. defensive
D. accommodative
E. proactive
Answer: B
Difficulty: Easy

85. In the _____ strategy of corporate social responsibility, social demands lying outside the
organization’s perceived self-interests are resisted.
A. minimalist
B. obstructionist
C. defensive
D. accommodative
E. proactive
Answer: B
86. Strathum Tech Inc., a manufacturer of refrigerators, used ozone depleting CFCs in its
products. It downplayed the significance of ozone depletion for years, claiming that CFCs
do not cause any significant harm to the ozone layer. Which of the following strategies of
corporate social responsibility did the company employ?
A. Minimalist
B. Obstructionist
C. Defensive
D. Accommodative
E. Proactive
Answer: B
87. Which strategy of corporate social responsibility meets only economic responsibilities?
A. Resistive
B. Obstructionist
C. Defensive
D. Accommodative
E. Proactive
Answer: B

88. A(n) _____ strategy does the minimum legal requirements to display social
responsibility.
A. leadership
B. obstructionist
C. defensive
D. accommodative
E. proactive
Answer: C
89. Piggybank is a chit fund company that offers small loans to individuals. Legal guidelines
regarding small loans require the terms and conditions of payback be accessible to
customers. The company complies with this rule by putting up a poster with terms and
conditions in a back room of their office. Only customers explicitly wishing to see the
terms and conditions are taken to the back room. What strategy of corporate social
responsibility does the company follow?
A. Leadership
B. Obstructionist
C. Defensive
D. Accommodative
E. Proactive
Answer: C
90. A(n) _____ strategy accepts social responsibility and tries to satisfy society’s basic
ethical expectations.
A. resistive
B. obstructionist
C. defensive
D. accommodative

E. proactive
Answer: D
Difficulty: Easy
91. Which strategy of corporate social responsibility meets economic, legal, and ethical
responsibilities but not discretionary responsibilities?
A. Resistive
B. Obstructionist
C. Diversification
D. Accommodative
E. Proactive
Answer: D
92. A(n) _____ strategy actively pursues social responsibility by taking discretionary actions
to make things better in the future.
A. resistive
B. obstructionist
C. defensive
D. accommodative
E. proactive
Answer: E
Difficulty: Easy
93. Which corporate social responsibility strategy meets economic, legal, ethical, and
discretionary responsibilities?
A. Resistive
B. Obstructionist

C. Defensive
D. Accommodative
E. Proactive
Answer: E
94. Shine Clean, a laundry detergent manufacturer, employs unskilled locals and trains them.
It manufactures its detergent using organic products. It uses biodegradable packaging that
is sourced locally, and disposes its wastes using environmentally friendly methods. It
follows the advice of its research team and takes discretionary actions in the hopes of
making things better in the future. Shine Clean is pursuing the _____ strategy of CSR.
A. resistive
B. obstructionist
C. defensive
D. accommodative
E. proactive
Answer: E
95. Which of the following CSR strategies addresses the greatest number of responsibilities?
A. Resistive
B. Obstructionist
C. Defensive
D. Accommodative
E. Proactive
Answer: E

96. Businesses are required by law to have boards of directors that are elected by _____ to
represent their interests.
A. customers
B. government officials
C. shareholders
D. union leaders
E. all employees
Answer: C
Difficulty: Easy
97. _____ is the active oversight of top management by a board of directors.

A. Ethical administration
B. Executive leadership
C. Corporate governance
D. Final authority
E. Command leadership
Answer: C
Difficulty: Easy
98. _____ is making sure day-to-day performance is achieved ethically and in socially
responsible manner.
A. Corporate governance
B. Social leadership
C. Ethics self-governance
D. Stockholder control
E. Command leadership
Answer: C
Difficulty: Easy

99. Which of the following is an example of an ethical dilemma?

A. Martha, who had filed in her personal details that she was an American, is hired as a
receptionist despite some of her co-workers apprehension about her racial identity.
B. Wanda, an employee at a real estate firm, files a sexual harassment case against her
manger despite his repeated apologies.
C. Steward, an engineer, gives his office laptop to his daughter as a birthday gift.
D. Vince, a government employee, knows that he should not accept bribes, but is
tempted to take the money to save a sick kid.
E. Clara fires half of her employees so as to decrease the cost of inputs of her company.
Answer: D
100. Bertrand Louise, an important stakeholder at Carmichaels & Sons. Inc., requests for a
detailed report of the profit statement of the company when rumors reach him that their
balance sheet for the past year was fabricated. Bertrand’s request is immediately granted
as some of the higher officials had the same suspicion as that of Bertrand. Which of the
following best explains the quick actions taken in this case?
A. Issue urgency
B. Corporate social responsibility
C. Demand legitimacy
D. Self-centered behavior
E. Organizational setting
Answer: C
Difficulty: Hard
101. Glendelwalt is a finance corporation that believes in working for the betterment of the
present as well as the future generations. They promote the principle of stewardship and
sustainability. Which of the following actions should it implement so as to promote their
ideals?
A. Hire more workers
B. Remodel and renovate their building
C. Start a ‘save water and energy’ program
D. Increase the salary of the workers

E. Improve their customer service.
Answer: C
102. Castle & Co. focuses on using recycled paper as packing material. Though the firm incurs
a higher cost of inputs due to this strategy, it continues to use the recycled papers. Thus it
contributes to the betterment of the larger community. When a social responsibility audit
is taken, on what side will the company’s performance rate?
A. Compliance
B. Negative
C. Underrated
D. Conviction
E. Moderate
Answer: D
103. Karlanium Inc. is a bottle manufacturing company. It is required by law to process its
waste byproduct before depositing it in the dumping grounds. Its social responsibility is
limited to fulfilling this legal requirement. To which of the following categories does
Karlanium belong?
A. Resistive
B. Obstructionist
C. Defensive
D. Accommodative
E. Proactive
Answer: B

Text Entry
104. Ethical behavior is “good” or “right” in the context of a(n) _____ moral code.
Answer: governing
Difficulty: Easy
105. ____ values are preferences about desired end states.
Answer: Terminal
Difficulty: Easy
106. In the ____ view, ethical behavior advances long-term self-interests.
Answer: individualism
Difficulty: Easy
107. ______ justice is concerned that policies and rules are fairly applied.
Answer: Procedural
Difficulty: Easy
108. Commutative justice is the degree to which an exchange or a transaction is ____

to all parties.
Answer: fair
Difficulty: Easy

109. Cultural ____ suggests there is no one right way to behave; ethical behavior is
determined by its cultural context.
Answer: relativism
Difficulty: Easy
110. Moral absolutism suggests ethical standards apply _____ across all cultures.
Answer: universally
Difficulty: Easy
111. An ethical dilemma is a situation that offers potential benefit or gain and that may
also be considered ____.
Answer: unethical
Difficulty: Easy
112. An ethical ____ is a personal rule or strategy for making ethical decisions.
Answer: framework
Difficulty: Easy
113. Ethics ___ indicates the degree to which an issue or a situation is recognized to
pose important ethical challenges.
Answer: intensity


Difficulty: Easy
114. An immoral manager chooses to behave ______.
Answer: unethically
Difficulty: Easy
115. A(n) ____ manager fails to consider the ethics of her or his behavior.
Answer: amoral
Difficulty: Easy
116. Ethics ____ seeks to help people understand the ethical aspects of decision
making and to incorporate high ethical standards into their daily behavior.
Answer: training
Difficulty: Easy
117. A code of ethics is a(n) ____ statement of values and ethical standards.
Answer: formal
Difficulty: Easy
118. A(n) ____ exposes the misdeeds of others in organizations.
Answer: whistleblower, whistle blower


Difficulty: Easy
119. ______ are the persons, groups, and other organizations that are directly affected
by the behavior of the organization and that hold a stake in its performance.
Answer: Stakeholders
Difficulty: Easy
120. ____ means acting in ways that support a high quality of life for present and
future generations.
Answer: Sustainability
Difficulty: Easy
121. The classical view of CSR is that business should focus on ____.
Answer: profits
Difficulty: Easy
122. The ____ circle occurs when socially responsible behavior improves financial
performance, which leads to more responsible behavior in the future.
Answer: virtuous
Difficulty: Easy
123. Corporate ____ is the oversight of top management by a board of directors.

Answer: governance
Difficulty: Easy

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Schermerhorn & Bachrach Management, 14th edition Test Bank

Chapter 03: Ethics and Social Responsibility

1. Values are broad beliefs about what is appropriate behavior.

2. Terminal values are preferences regarding the means to desired ends.

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9. Ethical behavior is determined by its cultural context.

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12. Cultural relativism is a form of ethical imperialism.

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16. In Kohlberg’s preconventional level of moral development, moral thinking is largely

17. In Kohlberg’s conventional level of moral development, the individual is strongly

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21. An amoral manager chooses to behave unethically.

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AACSB: Ethical understanding and reasoning

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32. Which of the following is a terminal value?

33. Which of the following is an instrumental value?

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Learning Objective: 3.1

43. Interactional justice involves the:

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E. No individual can take advantage of the freedom allowed in this approach.

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48. _____ is an attempt to impose one’s ethical standards on other cultures.

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53. In Kohlberg’s preconventional level of moral development, decisions:

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54. At the postconventional level of moral development, an individual is strongly _____.

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AACSB: Ethical understanding and reasoning

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B. “It’s in everyone’s best interests.”

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63. Archie Carroll suggests that most managers act _____.

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67. Which of the following is true of a whistleblower?

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AACSB: Ethical understanding and reasoning

71. The 3 P’s of organizational performance are:

73. Stakeholder power:

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74. Demand legitimacy:

75. Issue urgency:

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83. Which of the following is most likely to result in a virtuous circle?

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Bloom’s Taxonomy: Knowledge

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97. _____ is the active oversight of top management by a board of directors.

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99. Which of the following is an example of an ethical dilemma?

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