Chapter 1
The field of ethics is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior.
True or False
TRUE
Not every stakeholder is relevant in every business situation.
True or False
TRUE
Human resources management (HRM) coordinates the recruitment, training, and development of personnel for all aspects of an organization.
True or False
TRUE
Another term for corporate social responsibility (CSR) is corporate citizenship.
TRUE
The inside members of a company's board of directors hold managerial positions within the company.
True or False
True
The field of ________ is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior.
Ethics
Unethical corporate behavior does not have any impact on a company's stakeholders.
True or False
FALSE
***Unethical corporate behavior impacts different stakeholders in different ways.
Research and development (R&D) professionals carry the responsibility for the future growth of an organization.
True or False
TRUE
Friedman's view of the corporate world supports the rights of individuals to make money with their investments.
True or False
TRUE
One of the responsibilities of the audit committee of a company is to monitor the company's choice of accounting policies and procedures.
True or False
TRUE
A strict family upbringing will most likely influence the moral standards of an individual.
True or False
TRUE
A stakeholder is defined as someone with a share or interest in a business enterprise.
True or False
TRUE
Given that research and development (R&D) teams do not interact directly with customers, the potential for ethical dilemmas is nonexistent.
True or False
False
Research and development (R&D) teams incorporate customer feedback from market research, and employees in each area of an organization can face ethical challenges and dilemmas which can be unique to their departmental responsibilities. For the R&D team, the real ethical dilemmas come when decisions are made about product quality.
The instrumental approach to corporate social responsibility (CSR) states that the only obligation of a corporation is to maximize profits for its shareholders.
True or False
TRUE
A feature of the outside members of an organization's board of directors is they may comprise the company's creditors, suppliers, or consultants.
True or False
True
A simple truth is differentiating between right and wrong or good and bad.
True or False
TRUE
Unpaid invoices impact the interests of suppliers when a company declares bankruptcy as a result of unethical behavior.
True or False
TRUE
Human resources management and information systems are line functions, supporting each of the key functional areas.
True or False
TRUE
The most famous advocate of the instrumental approach model to corporate social responsibility is the Nobel Prize-winning economist ________ .
Milton Friedman
Catherine, a board member of Clayton Inc., is also part of an operating committee that is responsible for overseeing the accounting policies of the company. This committee is known as the
Audit Committee
Amanda and Ross have been chosen to go to Ethiopia for their university's International Student Exchange Program. They read about the beliefs, attitudes, practices, norms, traditions, cuisine, and music of Ethiopia to better adapt to the place. Amanda and Ross are reading about the ________ aspect of Ethiopia.
cultural
Unethical corporate behavior could impact a community negatively if it were to lead to an economic decline.
True or False
TRUE
In the context of the value chain of an organization, general administration is a support activity.
True or false
TRUE
The social contract approach to corporate management is the perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers.
True or False
False
*** The social contract approach to corporate management is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.
The compensation committee of an organization is staffed by members of the board of directors plus independent or outside directors.
True or False
True