COB 300 A MANAGEMENT CH 4 EXAM
QUESTIONS AND ANSWERS
Practical Steps to Ethical Decision Making - Answer-- Selecting and hiring ethical
employees
- Use of overt integrity tests or personality-based integrity tests
- Establishing a specific code of ethics
- Training employees to make ethical decisions
- creating an ethical climate
Social Responsibility of Organizations: Shareholder Model - Answer-Organization's
overriding goal should be profit maximization for the benefit of shareholders
Social Responsibility of Organizations: Stakeholder Model - Answer-Management's
most important responsibility, long-term survival, is achieved by satisfying the interests
of multiple corporate stakeholders
Corporate Social Responsibility - Answer-- Economic responsibility - To make a profit by
producing a valued product or service
- Legal responsibility - To obey society's laws and regulations
- Ethical responsibility - To abide by accepted principles of right and wrong when
conducting business
- Discretionary responsibilities - Social roles that a company fulfils beyond its economic,
legal, and ethical responsibilities
Reactive Strategy - Answer-Company does less than society expects
Defensive Strategy - Answer-Company admits responsibility for a problem but does the
least required to meet societal expectations
Accommodative strategy - Answer-Company accepts responsibility for a problem and
does all that society expects to solve that problem
Proactive strategy - Answer-Company anticipates a problem before it occurs and does
more than society expects
Ethical Decision Tree - Answer-Is the action legal?
if yes....
Does it maximize shareholder value?
if yes....
Is it ethical?
if no.....
Would it be ethical not to take action?
QUESTIONS AND ANSWERS
Practical Steps to Ethical Decision Making - Answer-- Selecting and hiring ethical
employees
- Use of overt integrity tests or personality-based integrity tests
- Establishing a specific code of ethics
- Training employees to make ethical decisions
- creating an ethical climate
Social Responsibility of Organizations: Shareholder Model - Answer-Organization's
overriding goal should be profit maximization for the benefit of shareholders
Social Responsibility of Organizations: Stakeholder Model - Answer-Management's
most important responsibility, long-term survival, is achieved by satisfying the interests
of multiple corporate stakeholders
Corporate Social Responsibility - Answer-- Economic responsibility - To make a profit by
producing a valued product or service
- Legal responsibility - To obey society's laws and regulations
- Ethical responsibility - To abide by accepted principles of right and wrong when
conducting business
- Discretionary responsibilities - Social roles that a company fulfils beyond its economic,
legal, and ethical responsibilities
Reactive Strategy - Answer-Company does less than society expects
Defensive Strategy - Answer-Company admits responsibility for a problem but does the
least required to meet societal expectations
Accommodative strategy - Answer-Company accepts responsibility for a problem and
does all that society expects to solve that problem
Proactive strategy - Answer-Company anticipates a problem before it occurs and does
more than society expects
Ethical Decision Tree - Answer-Is the action legal?
if yes....
Does it maximize shareholder value?
if yes....
Is it ethical?
if no.....
Would it be ethical not to take action?
