Management320 – Chapter 3

T/F: Ethical standards do not vary among countries or cultures.
False
Karl is on the board of directors of a financial institution. He is an example of an _____________ stakeholder.
Internal
Which of the following in NOT one of the six forces within the general environment of businesses?
Government regulator
Rank the following obligations of a corporation as identified by Archie B. Carroll, with the most fundamental obligation listed first, and the highest level of corporate citizenship listed last.
1. Economic responsibility
2. Legal responsibility
3. Ethical responsibility
4. Philanthropic responsibility
Match Kohlberg’s level of personal moral development with its description:

Preconventional

Conventional

Postconventional

-Follow rules and obey authority to avoid unpleasant consequences.

-Generally adhere to the expectations of others

-Guided by their own internal values and standards

In the ____________ approach to solving ethical dilemmas, there is the assumption that you will act ethically in the short run to avoid others harming you in the long run.
Individual
Which broad term identifies all the different groups of people whose interests area affected by an organization’s activities, including but not limited to stockholders, employees and customers?
Stakeholders
In which of the following situations would the moral-rights approach to an ethical dilemma come into use?
Jeremy’s boss has been secretly monitoring his use of social media when he should be working.
People or groups in the organization’s external environment that are affected by it are referred to as external ____________________.
Stakeholders
Veronica owns a janitorial service company that cleans and maintains office buildings. She purchases mops, paper products, cleaners, and other items she regularly uses in her business from companies that sell their products to janitorial businesses. In the task environment, these companies would be known as ________________.
Suppliers
Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as __________________.
Climate change
_______________ behavior is that which is accepted as being “right” as opposed to being “wrong.”
Ethical
Some research shows that ethical behavior and high social responsibility pay off for companies in which of the following ways?
-Decrease in employee fraud
-Increase in number of job applicants
-Higher profits due to increased sales and revenue
-Higher employee retention
A company’s triple bottom line measures three aspects of its performance: financial, social and ______________.
Environmental
Standards of “right” and “wrong” that influence behavior are referred to as ___________.
Ethics
According to Archie B. Carroll, the most fundamental responsibility of an organization focuses on ____________ while the most important responsibility revolves around _______________.
Profit; social responsibility
The act of making charitable donations to benefit humankind is referred to as ___________________.
Philanthropy
Which of the following are the groups that make up the task environment?
Local communities, government regulators and strategic allies.
The ________________ of an organization consist of all those who can claim it as their legal property.
Owners
Those who pay to use an organizations’s services or to buy their goods are called ________________.
Customers
Jeremiah wanted to get his business loan before the end of the year because he had heard on the news that interest rates were predicted to go up in January. Which part of the general environment is Jeremiah concerned with?
Economic forces
Look in the phone book in any city in the U.S. and you will see listings for multiple restaurants, all of which are seeking to attract the same customers. In the task environment, these restaurants would be categorized as ______________________.
Competitors
Which of the following are considered special-interests groups?
-National Rifle Association
-Humane Society of the United States
-Mothers Against Drunk Driving
The ________________ approach to solving ethical dilemmas involves ethical behavior being guided by what will result in the greatest good for the greatest number of people.
Utilitarian
An example of a new technological force being used in transforming resources into a good or service is _____________.
Biotechnology
Which approach to deciding ethical dilemmas asserts that an ethical decision should be guided by respect for impartial standards of fairness and equity?
Justice approach
Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone or known as strategic _________________.
Allies
Kendra has a large package that she needs to mail to her brother but she can’t afford the cost of the postage. She realized that she could easily take the package to work and put it in the pile of boxes her company ships out everyday. She was sure no one would even notice, but she also knew it wasn’t the right thing to do. Kendra is facing a(n) _____________ dilemma.
Ethical
A person or an organization that helps another organization sell its goods and services is called a(n) ____________.
Distributor
Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization are called __________________ forces
Political-legal
Which of the following is an accurate statement regarding labor unions?
In recent years, labor unions have declined in numbers
A(n) __________________________ represents employees’ perceptions about the extent to which work environments support ethical behavior.
Ethical climate
More women are in the U.S. workforce today than ever before. As a result, there is a growing need for childcare in the United States. This is an example of a ________________ force.
Demographic
An investment fraud that involves the payment of returns to older investors by using money invested by newer investors is known as _______________.
A Ponzi scheme
Garrison Company is in the process of evaluating its operating procedures, code of conduct, and other factors to determine its effect on society. The company is conducting a(n) _________________________.
Social audit
_______________________ responsibility refers to a manager’s duty to take actions that will benefit the interests of society as well as of the organization.
Social
As the CEO of the healthcare agency, Rachel learned that the government was about to block the import of one of the company’s major supplies. She decided to sell her shares of stock before this information went public. Since she used confidential information to make her decision, Rachel is guilty of _____________.
Insider trading
Corporate _______________ is the system of overseeing a company so that the interests of its owners and other stakeholders are protected.
Governance
Employees are considered ________________ stakeholders because they are part of the group who have an important stake in how the company performs.
Internal
Indicate which item is NOT a requirement of the Sarbanes-Oxley Act of 2002.
Organization must offer shares of stock to all employees as year-end bonuses.
Janet has repeatedly observed safety violations in the factory where she works. She has reported these to her supervisor, who has taken no action to remedy the situation. She calls the Occupational Safety and Health Administration (OSHA) to report these violations. This is an example of _________________.
Whistle-blowing
Within Hillary’s company, innovation, risk-taking and creativity are held in high regard. These would likely be considered part of the organization’s _________________.
Value System
Changes in the global economic, political, legal and technological systems that may affect an organization are types of ____________ forces.
International
Which of the following is the BEST example of a socioculture force?
Organic fruits and vegetables are perceived as healthier because they don’t contain pesticides or other chemicals.
In most for-profit or nonprofit organizations, the ___________ hires the chief executives of the organization.
Board of directors
Spartan Consulting Group is very involved in the local community. Each year they sponsor a fund-raiser to help underprivileged children get a better education. They also donate their time to helping other local companies get started so that they can provide jobs in the community. As a result, employees consistently work harder and more efficient, customers are loyal, and revenue is increasing steadily. This is an example of how ethical behavior and high _____________ responsibility pay off.
Social
Kendra believes that if her company created a problem for the local farm community by rationing water supplies, then her company needs to help those farmers out with grant money so they can get back on their feet. Kendra is _________ social responsibility.
For
The value of natural resources such as topsoil, air, water, and genetic diversity, upon which humans depend, is known as ____________ capital.
Natural
Agencies that establish ground rules under which organizations may operate are called __________________.
Government regulators
A formal set of standards guiding an organization’s actions is called a _______________.
Code of ethics
Banks, savings and loans, and credit unions are all examples of ________________ institutions, one group of stakeholders within the task environment.
Financial
T/F: Local communities can be affected greatly by the entrance or exit of large businesses in their communities.
True
The system of governing a company in such a way that the interests of its owners and other stakeholders are protected is known as _________________.
Corporate governance
When Jamie started the company, she received a handbook which included the standards for guiding the organizational actions. For instance, these standards said that bribes were never to be initiated or accepted between the company and outside vendors. This section of the handbook represents the ________________.
Code of ethics
The triple bottom line represents ______, also known as the ____.
People, planet, and profit; 3 Ps
The board of directors, employees, and owners are the organization’s ___.
Internal Stakeholders
T/F: The macroenvironment, which includes sociocultural, demographic, political-legal and international forces, cannot easily be controlled by organizations.
True
T/F: To save money, Paul, the owner of a struggling restaurant produce supplier, has been considering reducing the amount of produce in some cases delivered to busy restaurants, knowing the customers will probably never notice. This decision is an example of an ethical dilemma.
True
T/F: The board of directors are elected by the employees.
False
T/F: When individuals or groups are in the process of purchasing a company, this action is known as being a stakeholder.
False
Dawn, a young single mother, found a wallet with a large amount of money inside. In the past she has always tried to return the cash to the owner, knowing it is the right thing to do. However, with tough times, she has decided to keep the cash. She told a friend, “I don’t normally do this, but we really need the money. So I really have to do it this one time.” The most likely explanation for Dawn’s behavior is _____.
Motivated blindness
Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a financial advising organization has decided to use cash from newer investors to pay off older ones. The actions of management are an example of ____.
a Ponzi scheme
An organization’s external stakeholders include ____.
Customers, competitors, suppliers, distributors, strategic allies, employee associations, local communities, financial institutions, government regulators, special-interest groups, and the mass media
T/F: Tom, the CEO of a large landscaping company, has been studying an article in a business publication that instructs managers how to increase profits through boosting worker efficiency. This is the aim of corporate social responsibility, which states that it is the responsibility of corporations to be profitable even if the other goals in the community are not met.
False
T/F: The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance.
True
T/F:Internal stakeholders include the owners, board of directors, customers, suppliers, distributors, and the community.
False
The notion that corporations are expected to go above and beyond following the law and making a profit to help society known is ____.
Corporate social responsibility
T/F: A social audit is a systematic assessment of employee happiness within a company.
False
An ethical dilemma is a situation ____.
In which you have to decide whether to pursue a course of action that may benefit you or your organization but is unethical or even illegal.
Ethics are _____.
Standards of right and wrong that influence behavior
T/F: A distributor is a person or an organization that helps another company sell its goods and services to customers. Distributors are considered external stakeholders.
True
T/F: Tom and Susan, a young couple, are in need of assistance after Tom lost his job as a manager. Receiving unemployment payments and food stamps from the government are examples of philanthropy.
False
Paul and Anna Jones are wealthy entrepreneurs who are very interested in helping children who have been abused. Their goal is to donate a percentage of their company profits to helping these children. The Jones’s actions are an example of _____.
Philanthropy
While setting up their corporation, Ming and Jie implement a system of governing their organization so that the interests of corporate owners and other stakeholders are protected. This is an example of a _____.
Corporate governance
The intern at the design department admitted to taking things like tape and scissors from her office but said she felt that since she didn’t get paid much, she thought of it as a job perk. This rationalization is a reflection of her __________, her standards of right and wrong that influence her behavior.
Ethics
Many employees in the video admit to taking small items like pens from the office. Employees are ________________ of the organization that employs them; they are affected by the organization’s activities.
Internal stakeholders
According to the video, 38 percent of managers have fired someone for stealing from the office. When an employee is considering whether to take a pen or some tape from the office so she doesn’t have to drive all the way to the supply store to buy it, she is facing a(n) _______________, a situation in which she is deciding whether to pursue a course of action that may benefit her but that is unethical or even illegal.
Ethical dilemma
According to the video, $50 billion worth of things get stolen every year. A company that is losing a great deal of money through supply theft may consider taking steps to promote ethics in the organization. Which of the following is NOT one of the ways to promote high ethical standards?
Install cameras in every office
The interviewer in the video explains that people rationalize taking supplies by saying things like, “I put in long hours,” “I work overtime I don’t put in for,” and “they owe me.” That would indicate that employees who steal may have a sense that their employer is taking advantage of them and that fairness is an issue. An employee who decides whether or not to take supplies by considering impartial standards of fairness and equity is likely making ethical decisions using the _________ approach.
Justice
If a person discovers a coworker is stealing food from the refrigerator or a hole puncher from the supply closet and tells his boss, he would be considered a(n) _______________.
Whistle-blower
In the video, Rod Kurtz, the senior editor from Inc. magazine, says that stealing office supplies says something about your character as an employee. A person’s character is a reflection of his/her ________________, the relatively deeply held underlying beliefs and attitudes that help determine his/her behavior.
Values
The theft of intellectual property or trade secrets is of greater concern to companies than the theft of office supplies because the impact is potentially much more significant. Such theft could have far-reaching consequences not only to those inside the company but to _______________, people or groups outside the organization that are affected by it.
External stakeholders
The video indicates that one in five workers aged 18-24 does not feel it is wrong to take home office supplies. To counteract this belief, an organization could institute a(n) __________, a formal written set of ethical standards guiding an organization’s actions.
Code of ethics
Rather than installing cameras to safeguard against unethical behavior, organizations can create a strong ____________ to promote high ethical standards.
Ethical climate
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Sarah
Danielle
Wilson
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