chapter 3 The Managers Changing Working Environment and Ethical Responsibilities: Doing the Right Thing

True or false: Ethical standards do not vary among countries or cultures.

False

Changes in the economic, political, legal, and technological global system that may affect an organization

International forces

People who are outside an organization but are still affected by the organization are called the ______.

external stakeholders

Regulatory agencies that establish ground rules under which organizations may operate

government regulators

Labor unions represent...

hourly workers

A company's triple bottom line represents which aspects?

profit, people, planet

What is the triple bottom line?

representing people, planet, profit

Influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization ex. automotive, tourism, weddings

sociocultural forces

Which are aspects of the professionalism/work ethic core competency that are most relevant to ethics? (Choose every correct answer.) 1. Ethical behavior 2. Concern for society 3. Demonstrated integrity 4. Computational thinking

1, 2, 3

Place the following obligations of a corporation (as identified by Carroll) in order, starting with the highest-level responsibility at the top of the list and placing the most fundamental obligation at the bottom of the list

1. being a good global corporate citizen 2. being ethical in its practices 3. obeying the law 5. making a profit

Which are elements of corporate governance that are tied to ethics? (Choose every correct answer.) 1. Multiple select question. 2. Accurate reporting 3. State legislation 4. Long-term plans 5. Work environment

2, 4, 5

Which of these employees is involved in an ethical dilemma? Multiple choice question. A.) Jonah is deciding if he should add two hours to his time sheet for travel to a client meeting because his company does not reimburse for travel time. B.) Mia accepted the job as an administrative assistant at her company a year ago but is now thinking about looking for another job. C.)Sun-Jun is concerned that new government regulations will cost his company more in production costs. D.)Kimberly is choosing whether to import necessary parts to save money or to continue using a domestic supplier.

A

New developments in methods for transforming resources into goods or services

Technological forces

One of four approaches to solving ethical dilemmas; ethical behavior is guided by respect for impartial standards of fairness and equity

justice approach

Behavior that is accepted as "right" as opposed to "wrong" according to those standards

ethical behavior

A term that refers to employees' perceptions about the extent to which work environments support ethical behavior

ethical climate

a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal

ethical dilemma

An organization's standards of right and wrong that influence employee behavior are referred to as _______.

ethics

Standards of right and wrong that influence behavior. Can vary among countries and cultures

ethics

People or groups in the organization's external environment that are affected by it

external stakeholders

General environment can also be called...

macroenvironment

According to Archie B. Carroll, the responsibilities of an organization can be arranged as a pyramid, with _____ at the base and _____ at the top.

making a profit; corporate citizenship

True or false: Unlike generations before them, Millennials have little concern for the environment and are more interested in profit over planet. True false question.

false

examples of ________________ _________________: banks, savings and loans, and credit unions

financial institutions

Vondra believes that if her company created a problem for the local farm community by rationing water supplies, then her company needs to give those farmers grant money so they can get back on their feet. Vondra is advocating _____ corporate social responsibility.

for

The rise in the average temperature near the Earth's surface due to an increase in greenhouse gases in the atmosphere is called _____ and is one aspect of climate change.

global warming

One of four approaches to solving ethical dilemmas; ethical behavior is guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest

individual approach

As the CEO of a pharmaceutical company, Simone learned that the government was about to block the import of one of the company's biggest-selling drugs. She decides to sell her shares of stock before the information is made public. Since she used confidential information to make her decision, she is guilty of _____. Multiple choice question.

insider trading

People who buy or sell stock illegally based on confidential company information are engaging in _____.

insider trading

The illegal trading of a company's stock by people using confidential company information

insider trading

The people inside of an organization who have an important stake in how it performs are the organization's _____ stakeholders.

internal

Managers operate in two organizational environments, which are:

internal and external stakeholders

One of four approaches to solving ethical dilemmas; ethical behavior is guided by respect for the fundamental rights of human beings (such as the ones on the Bill of Rights: life, liberty, privacy, health, and safety)

moral-rights approach

the _____________ of an organization consists of all those who can claim it as their ____________ property. ex. Walmart stockholders

owners; legal

The act of contributing money in order to benefit society is referred to as _______.

philanthropy

professional associations represent...

salaried workers

checking applicants' resumes and references, using personality and integrity testing, and using AI tech to streamline employee screening are all examples that fall under _____________ prospective employees

screening

general environment consists of six forces: economic t_____________ socio______________ demographic political-__________ international

technological; cultural; legal

general environment

the set of broad, uncontrollable forces in the external environment that impact the organization

Difference between a country's imports' and exports' monetary value hint:trade surplus and trade deficit

trade balance

Is money provided by investors to start-up firms and small businesses with high risk but perceived long-term growth potential, in return for an ownership stake

venture capital

example of trampoline parks and how everyone has to sign a waiver and read the list of rules that are eventually broken. what is this an example of?

violation of health and safety regulations

another type of ethical misconduct; a major contributing factor to accidents and injuries across the board is the overconfidence that can accompany to this ethical misconduct

violations of health and safety regulations

Unethical behaviors that result in employees receiving benefits or advantages to which they are otherwise not entitled

workplace cheating

can you control forces in the task environment? general environment?

yes; no

Rescinding the tax breaks when firms don't deliver promised jobs

clawbacks

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

When managers use financial performance as the best definition of an ethical choice, they are taking a(n) ______ approach to organizational decisions.

utilitarian

One of four approaches to solving ethical dilemmas; ethical behavior is guided by what will result in the greatest good for the greatest number of people drawback: result in damage to workforce morale and the loss of employees with experience and skills

utilitarian approach

what are the four approaches to resolving ethical dilemmas? 1. The _U___________ approach 2. The _I_______________ approach 3. The M__________-R_________ approach 4. The J________ approach

utilitarian, individual, moral-rights, justice

The pattern of values within an organization

value system

Abstract ideals that guide one's thinking and behavior across all situations; the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior

values

Which groups are parts of the task environment? (Choose every correct answer.) A.) Owners B.) Government regulators C.) Distributors D.) Board of directors E.) Local communities F.) Strategic allies

B, C, E, F

The notion that corporations are expected to go above and beyond following the law and making a profit, to take actions that will benefit the interests of society as well as of the organization

Corporate social responsibility (CSR)

Influences on an organization arising from changes in the characteristics of a population, such as age gender, or ethnic origin

Demographic forces

According to free-market economist Friedman, what is the only social responsibility of a business?

Making profits

who cares about the triple bottom line?

Millenials and Gen Zers

which group is projected to make up almost 60% of the workforce by 2029?

Millennials and Gen Zers

Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

Political-legal forces

Often shortened to SarbOx or SOX, established requirements for proper financial record keeping for public companies and penalties for noncompliance

Sarbanes-Oxley Act of 2002

A manager's duty to take actions that will benefit the interests of society as well as of the organization

Social responsibility

An employee who reports organizational misconduct (safety violations, corruption, overcharging customers) to the public

Whistle-blower

What statement regarding ethical climates is TRUE? Multiple choice question. a. An ethical climate significantly affects the frequency of ethical behavior. b. Ethical climates are unaffected by an organization's policies, procedures, and practices. c. The ethical climate of an organization is unrelated to employees' ethical behavior. d. Managers have little or no effect on the ethical climate in an organization.

a

what is a social audit

a systemic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals

Which of these are forces within an organization's general environment? (Choose every correct answer.) a. International b. Economic c. Technological d. Political-Legal e. Sociocultural f. Demographic g. Physical

a, b, c, d, e, f

type of ethical misconduct; behaviors that serve to threaten or intimidate others or that contribute to a hostile work environment

abusive behavior

bullying, gossiping, backstabbing are examples of?

abusive supervision

type of abusive workplace behavior; occurs when supervisors repeatedly display verbal and nonverbal hostility toward their subordinates

abusive supervision

Group of people elected to oversee the firm's activities and ensure that management acts in the shareholders' best interests

board of directors

An organization's ethical _____ represents employees' perceptions about the extent to which the work environment supports ethical behavior.

climate

Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as _______.

climate change

A formal, written set of ethical standards that guide an organization's actions

code of ethics

People or organizations that compete for customers or resources

competitors

type of ethical misconduct; occurs when the potential for personal benefit-or benefit to family or friends- makes it difficult for one to make the best decision for the organization one is representing; they often involve the issue of whether an employee of one organization can accept gifts from another organization.

conflicts of interest

Running a company and protecting the interests of owners and other stakeholders is known as _____.

corporate governance

Today, it is stressed even more that companies go beyond just making a profit and take into consideration the environment and philanthropic initiatives. This is known as practicing ______.

corporate social responsibility

bribery is an example of which ethical misconduct?

corruption

type of ethical misconduct; occurs when someone uses the power with which they have been entrusted by the organization to achieve personal benefit

corruption

Raising money for a project or venture by obtaining many small amounts of money from many people ("the crowd")

crowdfunding

Those who pay to use an organization's goods or services

customers

type of ethical misconduct; involves making employment decisions on the basis of employees' protected class status- including their sex, national origin, race, religion, age, or sexual orientation-

discrimination

People or organizations that help another organization sell its goods and services to customers ex. ticketmaster

distributor

General economic conditions and trends—unemployment, inflation, interest rates, economic growth—that may affect an organization's performance ex. Great Recession, Covid-19

economic forces

what do internal stakeholders consist of?

employees, owners, and the boards of directors, if any

A(n) _____ 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 that is unethical or even illegal.

ethical

Spending time in nature, fostering positive emotions, and reducing one's carbon footprint are strategies to foster a more ______ attitude.

ethical

type of ethical misconduct; includes basing employment decisions on a subordinate's willingness to engage in sexual conduct with a superior and any behavior of a sexual nature that becomes pervasive enough to create a hostile work environment

sexual harassment

A manager's responsibility to take actions that benefit both society and the business is known as _____ responsibility.

social

A company's triple bottom line measures which aspects of its performance?

social, environmental, and financial

five principal types of ownership: 1. __________________ proprietorship 2. partnership 3. _____________ investors 4. employee _____________ 5. stockholders

sole; private; owners

Groups whose members try to influence specific issues, some of which may affect your organization ex. People for the Ethical Treatment of Animals

special-interest groupd

A company's decision to move its operations out of the country will affect its employees, owners, suppliers, distributors, and everyone else who has an interest in the business. All of these groups together make up the company's _____.

stakeholders

Which broad term identifies anyone impacted by a business, including but not limited to stockholders, employees, and customers?

stakeholders

the people whose interests are affected by an organization's activities

stakeholders

The relationship of two organizations who join forces to achieve advantages neither can perform as well alone

strategic allies

People or organizations that provide supplies—that is, raw materials, services, equipment, labor, or energy—to other organizations

suppliers

The ten groups that present a company with its daily tasks to handle represent the company's _____ environment.

task

A company's external environment consists of which two environments?

task and general

external stakeholders consists of two environments:

task and general

Eleven groups that present the organization with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

task environment