Management ch 3
What are the three levels of personal moral development proposed by Kohlberg? Conventional Controversial Postconventional Preconventional Preconversational
Conventional Postconventional Preconventional
Which of the following aspects of a company's performance are measured by the company's triple bottom line? (Select all that apply.) Environmental Financial Technological Social Ethical
Environmental Financial Social
Select four groups that make up the task environment. Government regulators Distributors Strategic allies Local communities Owners Board of directors
Government regulators Distributors Strategic allies Local communities
____ sometimes risk their jobs by coming forward about organizational misconduct and thus need to be protected. Insider traders Arbitrators Whistle-blowers Clawbacks
Whistle-blowers
Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected. regulation governance supervision administration
governance
Local communities are important organizational stakeholders. In fact, if a community gives a company tax breaks in return for the promise of new jobs and the firm fails to deliver those jobs, the community may be able to institute a _____ and rescind the tax breaks. takeback proprietorship clawback union
clawback
The purpose of a code of ethics is to benchmark the organization against its ethical competitors test employees for integrity and honesty prevent the organization from experiencing clawbacks clearly state top management's expectations for all employees
clearly state top management's expectations for all employees
An organization's ethical _____ represents employees' perceptions about the extent to which the work environment supports ethical behavior. culture climate mix attitude
climate
A formal set of standards guiding an organization's actions is called a _____. benchmark vision statement code of ethics mission statement
code of ethics
The people or organizations that vie with your company for customers or resources are known as _____. suppliers stakeholders competitors regulators
competitors
Recent trends show that the percentage of the labor force represented by unions has _____. increased decreased remained constant
decreased
A person or an organization that helps another organization sell its goods and services to customers is called a(n) supplier. distributor. internal stakeholder. vendor.
distributor
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 corporate citizenship; ethical practices ethical practices; obeying the law corporate citizenship; profit
making a profit; corporate citizenship
Economist Paul Samuelson's view on corporate social responsibility was that organizations must be concerned with both social welfare and corporate profits. if a company is making a profit, it is, by default, being socially responsible. an organization's only social responsibility is to make a profit for shareholders.
organizations must be concerned with both social welfare and corporate profits.
in Samuelson's view, CEOs should support corporate social responsibility because it: enhances opportunities for offshoring promotes sales provides a favorable public image increases employees' attachment to the firm
promotes sales provides a favorable public image increases employees' attachment to the firm
Crowdfunding is defined as ______. placing all funds within one investment source placing all funds within many investment sources raising money by collecting many small amounts from many people raising money by obtaining one large sum from a wealthy source
raising money by collecting many small amounts from many people
The moral-rights approach to solving ethical dilemmas is guided by _____. individual long-term interests respect for human rights the greatest good for the greatest number of people respect for impartial standards of fairness
respect for human rights
Government regulators are considered as part of a firm's _____. stockholders partners strategic allies stakeholders
stakeholders
The board of directors for a for-profit organization would be elected by the ______. employees chief operating officer (COO) chief executive officer (CEO) stockholders
stockholders
Abusive _____ represents subordinates' perceptions of the extent to which their supervisors engage in the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact. misuse supervision theft cheating
supervision
Bio-Med Laboratories recently announced it had produced a new medication that would mitigate arthritis symptoms. This new medication is an example of a(n) _____ force. sociocultural technological demographic economic
technological
Which of the following economic forces within a company's general environment affect the company's performance? (Select all that apply.) Bank interest rates The profits of the company Product prices The unemployment rate
Bank interest rates The unemployment rate
What are two requirements established by the Sarbanes-Oxley Act of 2002? Legal action can be taken against any employee who violates human rights issues. A company's CEO and CFO must certify the accuracy of the company's financial reports. An organization must put procedures and guidelines in place for audit committees. An organization must offer shares of stock to all employees after one year of full-time employment.
A company's CEO and CFO must certify the accuracy of the company's financial reports. An organization must put procedures and guidelines in place for audit committees.
Select the five most common unethical workplace behaviors. Procedural injustice Abusive behavior Violating corporate Internet policies Misusing company time Employee theft Workplace cheating Interpersonal differences
Abusive behavior Violating corporate Internet policies Misusing company time Employee theft Workplace cheating
Which statement regarding ethical climates is TRUE? Managers have little or no effect on the ethical climate in an organization. An ethical climate significantly affects the frequency of ethical behavior. Ethical climates are unaffected by an organization's policies, procedures, and practices. The ethical climate of an organization is unrelated to employees' ethical behavior.
An ethical climate significantly affects the frequency of ethical behavior
A company's triple bottom line represents which three aspects? Production Planet People Profit Privacy Politics
Planet People Profit
The principal types of ownership are Stockholders Sole proprietorship Private investors Stakeholders Employee owners Partnership
Stockholders Sole proprietorship Private investors Employee owners Partnership
Which of these are forces within an organization's general environment? Physical Sociocultural Political-Legal Technological Demographic International Economic
Sociocultural Political-Legal Technological Demographic International Economic
When companies link up with one another in order to realize certain advantages, they are known as strategic _____. unions allies franchisees proprietors
allies
In modern organizations, _____ are the most important resource. employees customers machines computers
employees
Millennials in the workforce: (Select all that apply) expect more from the organizations they work for. are concerned about a corporation's ethics, motives, and methods. want personal success more than they want a happy life. want work/life balance. are more concerned with profit than social responsibility. expect more from the organizations they do business with.
expect more from the organizations they work for. are concerned about a corporation's ethics, motives, and methods. want work/life balance. expect more from the organizations they do business with.
True or False: Milton Friedman would have been highly supportive of today's notion of corporate social responsibility.
false
An organization's macroenvironment is also known as its _____ environment. fixed general internal external
general
A company's external environment consists of which two environments? internal service general task
general task
In the __________ approach to solving ethical dilemmas, there is the assumption that people will act ethically in the short run to avoid others harming them in the long run. utilitarian justice moral-rights individual
individual
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 _____. whistle blowing fair trade benchmarking insider trading
insider trading
One consideration of the _____ approach to ethical decisions is whether an organization's policies - such as those governing promotions or sexual harassment - are administered impartially and fairly regardless of employee gender, age, ethnicity, religion, disability, or sexual orientation justice utilitarian individual moral-rights
justice
Managers often use a(n) _____ approach when making organizational decisions - using financial performance such as profit as the best definition of what constitutes an ethical choice for the company. moral-rights individual utilitarian justice
utilitarian
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. justice utilitarian individual moral-rights
utilitarian
The popular television show Shark Tank shows the shark investors gaining ownership stake in businesses in exchange for providing the businesses with money. This money is a form of _____. venture capital cost of goods sold crowdfunding insider trading
venture capital