Principles of Management Chapter 5 Test Bank and Solutions 2025/ 2026 Complete Guide on Organizational Planning and Management Concepts

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Chapter 5 ETHICS, CORPORATE RESPONSIBILITY, AND SUSTAINABILITY


TRUE-FALSE QUESTIONS

Title: ANSWER: T REFERENCE: Ethics and Business Ethics Defined LEARNING OUTCOME: 1
1. Our choices and decision-making processes and our moral principles and values that govern our
behaviors regarding what is right and wrong are also part of ethics.
a. True
b. False

Title: ANSWER: F REFERENCE: Dimensions of Ethics: The Individual Level LEARNING OUTCOME: 2
2. The Ethics & Compliance Initiative found more than half of global workers reported pressure to
compromise their standards.
a. True
b. False

Title: ANSWER: T REFERENCE: Dimensions of Ethics: The Individual Level LEARNING OUTCOME: 2
3. Identifying and separating terminal from instrumental values in any given situation can assist individuals,
groups, and work units in distinguishing between the “ends (goals) from the means (methods to reach the
goals)” and vice versa in making decisions, thereby helping us choose more ethical options—or at least less
unethical ones—in situations.
a. True
b. False

Title: ANSWER: F REFERENCE: Ethical Principles and Responsible Decision-Making LEARNING OUTCOME: 3
4. According to universalism is a principle, an action is morally right if the net benefits over costs are
greatest for all affected compared with the net benefits of all other possible choices.
a. True
b. False

Title: ANSWER: F REFERENCE: Ethical Principles and Responsible Decision-Making LEARNING OUTCOME: 3
5. Unfortunately, rights principle is grounded in legal but not moral rights.
a. True
b. False

Title: ANSWER: T REFERENCE: Ethical Principles and Responsible Decision-Making LEARNING OUTCOME: 3
6. Limitations when using justice principle involve the question of who decides who is right and wrong and
who has been harmed in complex situations.
a. True
b. False

Title: ANSWER: T REFERENCE: Ethical Principles and Responsible Decision-Making LEARNING OUTCOME: 3
7. Ethical relativism holds that people set their own moral standards for judging their actions.
a. True
b. False

Title: ANSWER: F REFERENCE: Leadership: Ethics at the Organizational Level LEARNING OUTCOME: 4
8. Ethical relativism is defined as the ability to influence followers to achieve common goals through shared

, Principles of Management


purposes.
a. True
b. False

Title: ANSWER: T REFERENCE: Leadership: Ethics at the Organizational Level LEARNING OUTCOME: 4
9. For ethical leaders, authenticity and integrity, in addition to their values, are also important components
of character and behavior that must also be translated into attitude and action toward followers, external
stakeholders, and broader communities.
a. True
b. False

Title: ANSWER: T REFERENCE: Leadership: Ethics at the Organizational Level LEARNING OUTCOME: 4
10. Being honest is not simply telling the truth and avoiding deceitful behaviors; it requires leaders to be as
open as possible and to describe reality fully, accurately, and in sufficient detail.
a. True
b. False

Title: ANSWER: F REFERENCE: Leadership: Ethics at the Organizational Level LEARNING OUTCOME: 4
11. Ethical blindness refers to when leaders are not able to see inconsistencies among values they say they
follow.
a. True
b. False

Title: ANSWER: F REFERENCE: Ethics, Corporate Culture, and Compliance LEARNING OUTCOME: 5
12. Ethics is related to influencing behaviors to act in accordance to the law or face consequences—
referred to as a “stick” approach.
a. True
b. False

Title: ANSWER: T REFERENCE: Corporate Social Responsibility (CSR) LEARNING OUTCOME: 6
13. A meta-analysis of 52 studies with a sample size of over 33 thousand observations suggested that
corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility, is
likely to pay off.
a. True
b. False

Title: ANSWER: T REFERENCE: Corporate Social Responsibility (CSR) LEARNING OUTCOME: 6
14. The ethical dimension of stakeholder theory is based on the view that profit maximization is
constrained by justice, that regard for individual rights should be extended to all constituencies who have a
stake in a business, and that organizations are not only “economic” in nature but can also act in socially
responsible ways.
a. True
b. False

Title: ANSWER: F REFERENCE: Emerging Trends in Ethics, CSR, and Compliance LEARNING OUTCOME: 8
15. The culture of compliance refers to when people trust online reviews of their companies more than
what companies communicate.
a. True
b. False
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