BUS 3010 SB CH 4

What managerial attitude best exemplifies the moral rights rule?

"Do unto others as you would have them do unto you."

Which of the following is the ethical dilemma faced by managers using the moral rights rule?

A decision that upholds the rights of one group may harm the rights of another group.

Which of the following can result from unethical decision making?

Customers leaving for more reputable companies Skilled managers leaving the company Shareholders selling their shares

What three company resources are managers responsible for in order to increase performance and, as a result, the company's stock price?

Financial, capital, and human

What must society do first in order to punish undesired behavior?

Pass laws

Which ethical rule suggests communicating the decision to people outside the company?

Practical

The ______ is the government's top business watchdog, and its goal is to outlaw many actions that were previously classified as merely unethical.

SEC

The issue of fair compensation for top managers is problematic in ______.

both for-profit and nonprofit companies

As time passes, _____ change; as they change, _____ change to reflect the beliefs of society.

ethics laws

To behave in ways that benefit their stakeholders, managers can use ______ ethical rules or principles to analyze the effects of their decisions.

four

Thoughts and feelings that tell a person what is right or wrong are referred to as ______

moral scruples

Ethical ombudspeople have authority to look into ethical problems ______

organization-wide

The goal of the SEC is to ______.

outlaw many actions that were previously classified as merely unethical

Moral scruples are thoughts and feelings that tell a person ______.

what is right or wrong

Which of the following are important elements for managers to consider when using the moral rights rule?

"Will the decision make someone's environment less safe?" "Will the decision cost someone his/her life?" "Will the decision impede someone's freedom of speech?" "Will the decision take away someone's property?"

How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business?

Efficiency and effectiveness would decrease. There would be more non-productive activity. Additional bargaining will be needed to conclude contracts.

Which of the following statements reflects the relationship between beliefs about the ethics of slave-owning and laws about slave-owning?

Ethical beliefs about whether it is right or wrong to own slaves changed first; then the laws about owning slaves changed.

Individuals face moral dilemmas because which of the following can be relative?

Ethics Values

True or false: Societal ethics are standardized from country to country in nations throughout the world.

False

Which of the following did the Securities and Exchange Commission do to prevent future scan?

It increased the power of outside directors to scrutinize a CEO. It reworked the rules governing a company's relationship with its auditor. It developed regulations concerning stock options.

How much time would it take for managers to negotiate contracts in a society where stakeholders routinely cheat each other in comparison to negotiating contracts in an ethical society?

It would take more time.

Which stakeholder group's behavior needs to be scrutinized because of the opportunities available to them to do harm to other stakeholder groups?

Managers

Which of the following seeks to reduce the chance that a bank will put its depositors' money at risk?

The Volcker Rule

What partially contributes to why some corrupt managers get away with serving their own self-interests at the expense of their company's employees and stockholders?

The laws and regulations are not strong enough.

What is the rule in which ethical decisions are made in order to spread the greatest good for the greatest number of people?

The utilitarian rule

Ethics ombudspeople have which of the following responsibilities in an organization?

They monitor the ethical practices and procedures in an organization. The can counsel employees facing ethical dilemmas. They have organization-wide authority to investigate ethical lapses.

True or false. Stockholders buy shares of companies and thereby become owners.

True

True or false: A specific behavior that is deemed illegal is not necessarily unethical.

True

True or false: One principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.

True

True or false: There are many kinds of behavior where people disagree as to whether or not it is ethical.

True

A regulation that seeks to minimize the chance that a bank will put depositors' money at risk is the

Volcker Rule

Defensive

When managers are granted large stock options and bonuses even as company performance declines rapidly

Accommodative

When managers at older and more reputable companies, with much to lose, dissuade employees from acting unethically even when it would ensure their competitive advantage

Obstructionist

When managers knowingly seek to hide evidence from the public, such as that asbestos and/or tobacco causes lung cancer

Proactive

When managers seek ways to reduce operating costs to prevent layoffs to enable them to keep promises they make to employees

When managers behave unethically, it increases the chances that employees will ______.

act unethically

As ethical beliefs ______ over time, some people may begin to question whether existing laws that make specific behaviors illegal are still appropriate.

change

Consider a situation in which people are faced with two opposing decisions: one could possibly go against people's self-interest, but may help a person or group; or one could possibly hurt someone, while helping oneself. This is called an ethical .

dilemma

The ethics of a company and its managers are important to stakeholders because stakeholders can ______.

directly benefit or be harmed by the company's actions

Suppliers expect fair and prompt payment for the purchase of their materials, and ______ expect to receive products from manufacturers at the agreed-upon quality and price.

distributors

A company within a community contributes to its local ______.

economy

Managers using the moral rights rule consider the ______.

effects of an action on individuals' rights

When the law does not specify how companies should behave, their managers must decide the right or ______ way to behave toward the people and groups affected by their actions.

ethical

The utilitarian rule states that _______ ______ are those that produce the greatest good for the greatest number of people.

ethical decision

Managers frequently have to make decisions as to how much emphasis to put on the competing interests of the various stakeholder groups. This can frequently cause ______.

ethical dilemmas for managers

People are guided by , their inner moral principles, values, and beliefs, which they use to analyze or interpret situations and then make decisions about right and wrong ways to behave.

ethics

People are guided by _______, their inner moral principles, values, and beliefs, which they use to analyze or interpret situations and then make decisions about right and wrong ways to behave.

ethics

Customers are frequently regarded as the most critical stakeholder group for the company's success because ______.

if a company cannot attract customers to buy its products, it cannot stay in business

You may realize you are facing an ethical dilemma if you find yourself hesitating or debating ______.

if you are doing the right thing

The four main determinants of differences in ethics among people, employees, companies, and countries are organizational ethics:

individual ethics societal ethics occupational ethics

A manager facing the ethical dilemma of how to be fair and not show favor to one stakeholder group over another is being challenged in the application of the ________ rule.

justice

Managers use the ________ rule when they evaluate how equally alternative courses of action distribute the benefits and harms to the people and groups affected; they work to ensure a fair, equitable, or impartial solution.

justice

The ______ rule states that an ethical decision is a decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way.

justice

The __________ rule states that an ethical decision is a decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way.

justice

To enforce their views of right or wrong behavior, different groups in society lobby for ______.

laws

People in many states are lobbying for ______ of marijuana used for medical purposes. While this would not make the drug legal, it removes the threat of prosecution. (Check all that apply.)

legalization decriminalization

Due to their expertise, skill, and experience in accomplishing positive results for their companies, ___________________ expect to be compensated for their credentials.

managers

The stakeholder group responsible for directing the use of their company's financial and human resources to increase performance are the ______.

managers

At the expense of other stakeholder groups, corrupt managers attempt to ______ their own personal gains.

maximize

Consideration of people's rights to freedom, life, safety, property, privacy, and free speech are important to managers using the _______ rights rule to make ethical decisions.

moral

Consideration of people's rights to freedom, life, safety, property, privacy, and free speech are important to managers using the ________ rights rule to make ethical decisions.

moral

The ______ rights rule states that an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it.

moral

Consideration of people's rights to freedom, life, safety, property, privacy, and free speech are important to managers using the ______ rule to make ethical decisions.

moral rights

The ______ rule involves comparing the effects of potential actions to the rights of various stakeholder groups, then choosing the action that best protects all the groups' rights.

moral rights

The ______ rule states that ethical decisions are ones that maintain and protect people's fundamental rights and privileges.

moral rights

To help make ethical decisions and realize the effects of their business decisions on stakeholders, managers can use the ______ rules

moral rights practical utilitarian justice

A woman has fallen in the street and cars are coming towards her. A person runs from the sidewalk and helps the woman up, pulls her to the sidewalk, and stays with her. The helper has good ______

moral scruples

A woman has fallen in the street and cars are coming towards her. A person runs from the sidewalk and helps the woman up, pulls her to the sidewalk, and stays with her. The helper has good ______.

moral scruples

Managers who will break the law to satisfy their own self-interest demonstrate the ______ approach. Managers who obey the law, but do nothing more than that to act in a socially responsible manner, exhibit the ______ approach

obstructionist; defensive

The ______ rule is that an ethical decision is one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think it is acceptable.

practical

To help make ethical decisions and realize the effects of their business decisions on stakeholders, managers can use the ______ rules.

practical utilitarian moral rights justice

Unethical behavior generally results in a(n) _______ in efficiency, effectiveness, company performance, and national standards of living, well-being, and prosperity.

reduction

If a supplier acts unethically, organizations are less likely to purchase from that supplier as a result of its ______ being damaged.

reputation

Stakeholders must earn a good ______ within their organizations, as their livelihoods depend on their ethical behavior and the esteem they build from colleagues and managers.

reputation

Moral scruples are thoughts and feelings that tell a person what is ______.

right or wrong

Short-term unethical behavior by managers results in ______.

serious long-term consequences

Managers have a claim on an organization because they bring to it their:

skills. experience. expertise.

When _______ ethics are in play, members of a society treat each other with fairness, equity, and justice.

societal

When_______ ethics are in play, members of a society treat each other with fairness, equity, and justice.

societal

Once a law is passed, decisions about an individual's behavior with respect to that law are a reflection of _______.

societal beliefs as stated in the law

Another way to describe the practices that develop from a culture's laws, customs, and unwritten values and norms of behavior are ______.

societal ethics

When issues of fairness, justice, and equality are governing forces ensuring the rights of every individual, ______ are the standards being practiced.

societal ethics

A company's employees, customers, stockholders, suppliers, and distributors are considered the company's ______.

stakeholders

Stakeholders that provide an organization with inputs such as raw materials, components, contract labor, and clients are referred to as ______. This group expects to be paid fairly and promptly for their inputs.

suppliers

When large numbers of individuals illegally download copyrighted material because they are acting in their own self-interest, it may cause the creators of the material to stop creating since they cannot earn a living. This, in turn, may result in a decrease in new music, movies or books, depriving society of these benefits. This is an example of ______.

the "tragedy of the commons"

It is important to punish unethical behavior ___.

to keep others from engaging in their own unbridled self-interest.

Organizations and stakeholders tend to cooperate and share information more freely, thus making it easier to price goods and services correctly, when they respect and ______ one another.

trust

People are more willing to enter into a somewhat risky venture when they _______ the person or group with whom they are entering the relationship.

trust

Loss of reputation, shareholders selling their shares, skilled employees leaving the company, and customer leaving for other companies are all result of ______ decision making.

unethical

Managers using the ______ rule first consider the types and levels of benefits and harm to various stakeholder groups. They should choose the course of action that provides the most benefits, or conversely does the least harm, to stakeholders.

utilitarian

The ______ rule states that ethical decisions are those that produce the greatest good for the greatest number of people.

utilitarian