Business Ethics Managing Corporate Citizenship And Sustainability In The Age Of Globalization 3rd Edition by Andrew Crane -Test Bank

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Type: fill-in-blank

Title: Chapter 05 – Question 01

01) Crane and Matten define business ethics management as follows: ‘Business ethics management is the ________ attempt to formally or informally manage ethical issues or problems through specific policies, practices, and programmes.’

Feedback: ‘Business ethics management is the direct attempt to formally or informally manage ethical issues or problems through specific policies, practices, and programmes.’ This covers a large range of different elements.

Page reference: 185

  1. Direct

 

Type: multiple choice question

Title: Chapter 05 – Question 02

02) Risk analysis and management is one of the key components of business ethics management. According to Sison (2000), this is because the language of risk assessment has encouraged firms to spell out the risks that firms run by ignoring ethics, in terms of…?

  1. Potential reputational damage.

Feedback: Sison suggests that the language of risk assessment has promoted the measuring of risks of unethical behaviour in terms of fines, damages and sanctions that courts can impose.

Page reference: 186

*b. Possible monetary impact.

Feedback:  Sison suggests that the language of risk assessment has promoted the measuring of risks of unethical behaviour in terms of fines, damages and sanctions that courts can impose.

Page reference: 186

  1. Likelihood of punitive governmental regulations.

Feedback:  Sison suggests that the language of risk assessment has promoted the measuring of risks of unethical behaviour in terms of fines, damages and sanctions that courts can impose.

Page reference: 186

  1. The firm’s ability to attract and retain the best staff.

Feedback:  Sison suggests that the language of risk assessment has promoted the measuring of risks of unethical behaviour in terms of fines, damages and sanctions that courts can impose.

Page reference: 186

 

Type: multiple choice question

Title: Chapter 05 – Question 03

03) Crane and Matten identify four main types of ethical codes. Read the following carefully and choose which of the following is not one of these four main types.

  1. Professional codes of ethics (e.g., marketing).

Feedback: This is one of the four main types of ethical codes.

Page reference: 191-192

  1. Industry codes of ethics (e.g., financial services industry).

Feedback:  This is one of the four main types of ethical codes.

Page reference: 191-192

  1. Organizational codes of ethics (code for a single organization).

Feedback:  This is one of the four main types of ethical codes.

Page reference: 191-192

*d. Accreditation codes of ethics (e.g. use of the Fairtrade mark).

Feedback: This is not one of the four main types of ethical codes. Certain programmes, coalitions or other sub-groupings of organizations establish codes of ethics for those participating in specific programmes. One example of this is the CAUX Roundtable Principles for Business. Another is the example given in the question, in which conforming to a particular code is a prerequisite for using a particular label or mark of accreditation. The general term for these kinds of codes is “Programme or group codes of ethics”.

Page reference: 191-192

 

Type: multiple response question

Title: Chapter 05 – Question 04

04) Donaldson (1996) proposes principles for organizations working internationally and needing to address cultural differences when developing their ethical codes. What are these principles? Please select all that apply.

Feedback: According to Donaldson, the key question for businesses operating internationally is, ‘when is different just different and when is different wrong?’ Donaldson’s three-principle solution proposes a middle ground between relativism and absolutism.

Page reference: 200

  1. Respect for key principles of the major religious traditions.

*b. Respect for local traditions.

*c. The belief that context matters when deciding what is right and wrong.

*d. Respect for core human values, which determine an absolute threshold.

 

Type: matching question

Title: Chapter 05 – Question 05

05) Stakeholder relationships can take a wide variety of forms. Match the kind of stakeholder relationship with the correct description.

Feedback: Crane and Matten identify nine kinds of stakeholder relations: the four in this question are therefore illustrative. Nevertheless, they provide a good idea of the range of stakeholder relationships, with a focus on stakeholder collaboration (i.e. going beyond the well-known relationships based on opposition and conflict).

Page reference: 205-206

  1. One-way support = Relationship based on philanthropy, sponsorship or other forms of resource contribution from one party to the other.
  2. Joint venture or alliance = Relationship based on formal partnership involving significant mutual commitment to achieve specific goals.
  3. Project dialogue = Relationship based on discussion between partners regarding specific project or proposal, such as stakeholder dialogue accompanying major regeneration or construction projects.
  4. Strategy dialogue = Relationship based on discussion between partners over longer-term issues and the development of overall strategy for organizations, industries or regulatory regimes.

 

Type: matching question

Title: Chapter 05 – Question 06

06) Match the following statements with respect to company reporting on ethical performance: ‘Approaches prefaced … tend to…’.

Feedback: There is a large range of different ways of reporting on a firm’s ethical performance. Crane and Matten identify four general distinctions in reporting companies’ own assessments of ethical performance.

Page reference: 211-212

  1. ‘ethical’ = focus on internal management systems, or individual-level aspects of the business.
  2. ‘environmental’ = focus on exclusively on the organization’s impact on the natural environment.
  3. ‘social’ = have a broader remit, covering a range of issues in addition to (or sometimes separate from) the environment, such as employee conditions or community relations.
  4. ‘sustainability’ = are concerned with the triple bottom line of social, economic, and environmental considerations.

 

Type: multiple choice question

Title: Chapter 05 – Question 07

07) Which of the following is not one of the issues that Zadek et al (1997) have proposed as the key principles of good social accounting?

  1. Continuous improvement.

Feedback: Zadek et al (1997) propose eight key principles of quality in good social accounting. This is one of the principles they propose.

Page reference: 216

  1. External verification.

Feedback:  Zadek et al (1997) propose eight key principles of quality in good social accounting.  This is one of the principles they propose.

Page reference: 216

*c. Protecting the integrity of confidential data.

Feedback:  Zadek et al (1997) propose eight key principles of quality in good social accounting. This is not one of those principles. Following Owen and O’Dwyer (2008), this is actually a disincentive for social accounting – see p215.

Page reference: 216

  1. Management policies and systems.

Feedback:  Zadek et al (1997) propose eight key principles of quality in good social accounting.  This is one of the principles they propose.

Page reference: 216

 

Type: multiple choice question

Title: Chapter 05 – Question 08

08) Which of the following is a scheme to tackle the specific aspect of reporting assurance in social accounting?

  1. ISO 26000

Feedback: This is not one of the various standards on social accounting, but rather an international standard on social responsibility. For more detail on ISO 26000, see Ethics in Action 3.2 in Crane and Matten’s book (p124-125).

Page reference: 217

  1. SA 8000

Feedback: This is a social accountability standard that covers a range of issues in the workplace around key labour rights.

Page reference: 217

*c. AA 1000S

Feedback: The AA 1000S Assurance Standard is the first attempt to provide a coherent a robust basis for assuring a public report and its underlying processes, systems and competencies against a concrete definition and principles of accountability and stakeholder engagement.

Page reference: 217

  1. ISO 14001

Feedback:  This is not one of the various standards on social accounting, but rather an international environmental quality standard. For more on ISO 14001, see p420 of Crane and Matten’s book.

Page reference: 217

 

Type: matching question

Title: Chapter 05 – Question 09

09) Treviño et al (1999) identify four main ways of approaching the formal organization of business ethics management. Match the label with the correct description.

Feedback: In the US, compliance approaches appear to dominate, while in Europe and Asia, the drivers of ethics management have tended to be external and values-based approaches. Research by Treviño et al (1999) indicates that a values orientation is the most significant single orientation for encouraging ethical behaviour, and that a protection orientation is a harmful approach. Remember that these four approaches are not mutually inconsistent: most organizations are likely to combine two or more approaches.

Page reference: 219-220

  1. Compliance orientation = Main emphasis is on preventing, detecting, and punishing violations of the law.
  2. Values orientation = Approach is based on defining organizational values and encouraging employee commitment to certain ethical aspirations.
  3. External orientation = The focus is on satisfying stakeholders such as customers, the community and shareholders.
  4. Protection orientation = Primary orientation is (or is perceived to be) towards shielding top management from blame for ethical problems or legal violations.

 

Type: true-false

Title: Chapter 05 – Question 10

10) Crane and Matten identify two very different models of informal ethics management. Is the following statement true or false? ‘In the culture change approach, the leader’s role is one of participation and empowerment in order to foster moral imagination and autonomy on the part of employees. On the other hand, in the cultural learning approach, the leader’s role is to articulate and personify the values and standards to which the organization aspires, and to then inspire and motivate employees to follow their lead.’

  1. True

Feedback: The statement is false, because the approaches are exactly the other way around. That is, the culture change approach emphasizes the leader’s role in personifying the desired values and standards, while the cultural learning approach is more interested in the leader’s role in fostering moral imagination and autonomy on the part of employees.

Page reference: 223-224

*b. False

Feedback: The statement is false, because the approaches are exactly the other way around. That is, the culture change approach emphasizes the leader’s role in personifying the desired values and standards, while the cultural learning approach is more interested in the leader’s role in fostering moral imagination and autonomy on the part of employees.

Page reference: 223-224

 

 

 

 

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