Business Ethics and Corporate Social Responsibility MCQs

These flashcards cover key concepts and definitions related to business ethics and corporate social responsibility, based on chapter 4 practice MCQs.

What is corporate culture best defined as?

A shared pattern of values and beliefs.

What does a low power distance culture seek according to Hofstede?

Seeks equality in decision-making.

What does a values-based culture emphasize?

Ethical principles and shared values.

What is a benefit of a strong ethical culture?

Increased stakeholder trust.

What does 'tone at the top' refer to?

Top-down leadership in enforcing ethical culture.

What is one criticism of Hofstede’s model?

It generalizes based on stereotypes.

What does the Sarbanes-Oxley Act require companies to adopt?

Mission statements and codes of conduct.

What is a key feature of whistle-blowing?

Reporting wrongdoing internally or externally.

What distinguishes ethical leaders from effective leaders?

Their ethical means of achieving goals.

Which of the following is NOT one of Hofstede’s dimensions?

Compliance vs. Values.

What is a compliance-based culture most concerned with?

Following legal rules.

What does the Foreign Corrupt Practices Act primarily target?

International bribery.

Which U.S. agency created the Federal Sentencing Guidelines?

U.S. Sentencing Commission.

What should a mission statement be described as?

Inspiring and value-driven.

What is a clear sign of a toxic corporate culture?

Absence of shared values.

What is the most basic ethical responsibility of a business according to CSR theory?

Do no harm.

According to the economic model of CSR, what is the primary responsibility of managers?

Maximize shareholder value.

Which CSR model integrates social goals into a business’s mission?

Integrative model.

In the stakeholder model, who should managers consider when making decisions?

All parties affected by business decisions.

What level of ethical responsibility do philanthropic actions by businesses fall under?

Doing good.

What kind of companies is the integrative model of CSR associated with?

Benefit corporations.

What is tort law designed to do?

Prevent or address civil harm.

What is the belief that businesses benefit from ethics in the long run called?

Enlightened self-interest.

Which CSR model focuses solely on legal and economic duties?

Economic.

What is a challenge in applying enlightened self-interest?

It ignores environmental impact.

What type of CSR practice involves improving a company's image?

Social marketing.

Whose views align closely with economic CSR?

Milton Friedman.

What is the main risk of not managing corporate reputation ethically?

Barriers to business success.

What does stakeholder theory require?

Balancing ethical duties to all parties.

Which ethical perspective promotes treating employees well for innovation?

Instrumental.

What does sustainability in CSR refer to?

Balancing financial, environmental, and social goals.

What is the primary purpose of due process in the workplace?

Prevent arbitrary use of power.

What does employment at will allow an employer to do?

Fire employees at any time, for any reason.

What is the standard for fair reason in firing an employee called?

Just cause.

Downsizing without stakeholder consideration may result in which of the following?

Higher morale (EXCEPT this).

Which value refers to the inherent worth of health and safety?

Intrinsic value.

What does OSHA focus on?

Safety and health regulations.

What is a major flaw in the free-market approach to workplace safety?

Workers rarely have perfect information.

What does cost-benefit analysis weigh?

Dollars against safety benefits.

What do sweatshops often lack?

Basic health and safety protections.

According to Kantian ethics, all employees deserve to be treated with what?

Respect and dignity.

When is child labor considered exploitative?

It harms or replaces education.

What is discrimination that is subtle or hidden called?

Covert discrimination.

What can diversity in the workplace lead to?

Innovation and strong performance.

What is the aim of affirmative action?

Remedy past inequalities.