Test Bank – Understanding Management, 13th
Edition by Richard L. Daft
1. Ethics is the code of moral principles and values that governs the behaviors of a person or
group with respect to what is right or wrong.
a. True
b. False - answer-True
2. On the continuum of amounts of explicit control associated with the domains of human
action, free choice lies between the domains of codified law and ethics.
a. True
b. False - answer-False
3. If an act is not illegal, it must be ethical.
a. True
b. False - answer-False
4. The moral agent is the individual who must make an ethical choice in an organization.
a. True
b. False - answer-True
5. The utilitarian approach to ethical decision making sidesteps debates about what is right,
good, or just and bases decisions on prevailing standards of the profession and the larger
society, taking the interests of all stakeholders into account.
a. True
1
,b. False - answer-False
6. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
a. True
b. False - answer-False
7. The ethical concept that acts are moral when they promote the individual's best long-term
interests and assumes that will ultimately lead to the greater good is known as the moral rights
approach.
a. True
b. False - answer-False
8. Procedural justice holds that rules should be clearly stated and consistently and impartially
enforced.
a. True
b. False - answer-True
9. Individuals at the preconventional level of moral reasoning are concerned with external
rewards and punishments and obey authority to avoid detrimental personal consequences.
a. True
b. False - answer-True
10. Research suggests that the majority of managers operate at the preconventional level of
moral reasoning.
a. True
b. False - answer-False
2
, 11. Only about 20 percent of U.S. adults reach the postconventional stage of moral
development.
a. True
b. False - answer-True
12. Corporate social responsibility is management's obligation to make choices and take actions
that will contribute to the welfare and interests of society, not just the organization.
a. True
b. False - answer-True
13. Corporate social responsibility covers a narrow range of issues, many of which are
unambiguous with respect to right or wrong.
a. True
b. False - answer-False
14. Important stakeholders in corporations include the government and the community.
a. True
b. False - answer-True
15. Sustainability refers to the ability to generate wealth without compromising environmental
responsibility and social stewardship, thus meeting the current and future needs of
stakeholders while preserving the environment and society so that future generations can meet
their needs as well.
a. True
b. False - answer-True
3
Edition by Richard L. Daft
1. Ethics is the code of moral principles and values that governs the behaviors of a person or
group with respect to what is right or wrong.
a. True
b. False - answer-True
2. On the continuum of amounts of explicit control associated with the domains of human
action, free choice lies between the domains of codified law and ethics.
a. True
b. False - answer-False
3. If an act is not illegal, it must be ethical.
a. True
b. False - answer-False
4. The moral agent is the individual who must make an ethical choice in an organization.
a. True
b. False - answer-True
5. The utilitarian approach to ethical decision making sidesteps debates about what is right,
good, or just and bases decisions on prevailing standards of the profession and the larger
society, taking the interests of all stakeholders into account.
a. True
1
,b. False - answer-False
6. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
a. True
b. False - answer-False
7. The ethical concept that acts are moral when they promote the individual's best long-term
interests and assumes that will ultimately lead to the greater good is known as the moral rights
approach.
a. True
b. False - answer-False
8. Procedural justice holds that rules should be clearly stated and consistently and impartially
enforced.
a. True
b. False - answer-True
9. Individuals at the preconventional level of moral reasoning are concerned with external
rewards and punishments and obey authority to avoid detrimental personal consequences.
a. True
b. False - answer-True
10. Research suggests that the majority of managers operate at the preconventional level of
moral reasoning.
a. True
b. False - answer-False
2
, 11. Only about 20 percent of U.S. adults reach the postconventional stage of moral
development.
a. True
b. False - answer-True
12. Corporate social responsibility is management's obligation to make choices and take actions
that will contribute to the welfare and interests of society, not just the organization.
a. True
b. False - answer-True
13. Corporate social responsibility covers a narrow range of issues, many of which are
unambiguous with respect to right or wrong.
a. True
b. False - answer-False
14. Important stakeholders in corporations include the government and the community.
a. True
b. False - answer-True
15. Sustainability refers to the ability to generate wealth without compromising environmental
responsibility and social stewardship, thus meeting the current and future needs of
stakeholders while preserving the environment and society so that future generations can meet
their needs as well.
a. True
b. False - answer-True
3
