JMU COB 300 MANAGEMENT CHAPTER
#4 EXAM QUESTIONS AND ANSWERS
Overt integrity test - Answer-a written test that estimates job applicants' honesty by
directly asking them what they think or feel about theft or about punishment of unethical
behaviors
Personality-based integrity test - Answer-a written test that indirectly estimates job
applicants' honesty by measuring psychological traits, such as dependability and
conscientiousness
Whistle-blowing - Answer-reporting others' ethics violations to management or legal
authorities
Social responsibility - Answer-a business's obligation to pursue policies, make
decisions, and take actions that benefit society
Shareholder model - Answer-a view of social responsibility that holds that an
organization's overriding goal should be profit maximization for the benefit of
shareholders
Stakeholder model - Answer-a theory of corporate responsibility that holds that
management's most important responsibility, long-term survival, is achieved by
satisfying the interests of multiple corporate stakeholders
Stakeholders - Answer-persons or groups with a stake, or legitimate interest, in a
company's actions
Primary stakeholder - Answer-any group on which an organization relies for its long-
term survival
Secondary stakeholder - Answer-any group that can influence or be influenced by a
company and can affect public perceptions about the company's socially responsible
behavior
Economic responsibility - Answer-a company's social responsibility to make a profit by
producing a valued product or service
Legal responsibility - Answer-a company's social responsibility to obey society's laws
and regulations
Ethics - Answer-the set of moral principles or values that defines right and wrong for a
person or group
#4 EXAM QUESTIONS AND ANSWERS
Overt integrity test - Answer-a written test that estimates job applicants' honesty by
directly asking them what they think or feel about theft or about punishment of unethical
behaviors
Personality-based integrity test - Answer-a written test that indirectly estimates job
applicants' honesty by measuring psychological traits, such as dependability and
conscientiousness
Whistle-blowing - Answer-reporting others' ethics violations to management or legal
authorities
Social responsibility - Answer-a business's obligation to pursue policies, make
decisions, and take actions that benefit society
Shareholder model - Answer-a view of social responsibility that holds that an
organization's overriding goal should be profit maximization for the benefit of
shareholders
Stakeholder model - Answer-a theory of corporate responsibility that holds that
management's most important responsibility, long-term survival, is achieved by
satisfying the interests of multiple corporate stakeholders
Stakeholders - Answer-persons or groups with a stake, or legitimate interest, in a
company's actions
Primary stakeholder - Answer-any group on which an organization relies for its long-
term survival
Secondary stakeholder - Answer-any group that can influence or be influenced by a
company and can affect public perceptions about the company's socially responsible
behavior
Economic responsibility - Answer-a company's social responsibility to make a profit by
producing a valued product or service
Legal responsibility - Answer-a company's social responsibility to obey society's laws
and regulations
Ethics - Answer-the set of moral principles or values that defines right and wrong for a
person or group
