MGT CH 3

(T/F) Political-legal forces are changes in the economic, political, legal, and technological global system that may affect an organization.

FALSE

(T/F) Standard environment is another name for general environment.

FALSE

(T/F) The National Rifle Association is an example of a government regulator.

FALSE

What sits at the top of the CSR pyramid?

Philanthropic responsibility

External dimensions of diversity include

an element of choice;

Not all firms have a

board of directors.

The birthrate is up for all racial and ethnic groups, but the increase for __________ is the largest.

hispanics

Technological forces are

new developments in methods for transforming resources into goods or services.

At the center of the diversity wheel is

personality

personality is at the center of the wheel because

personality is defined as the stable physical and mental characteristics responsible for a person's identity.

first level of personal moral development

preconventional level

Ethical behavior in the justice approach is guided by

respect for impartial standards of fairness and equity.

Friedman represents the view that,

"The social responsibility of business is to make profits." That is, unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth—the real social justification for the firm's existence.

Friedman represents the view that

"the social responsibility of business is to make profits."

ways that an organization can promote ethics:

(1) create a strong ethical climate (2) screen prospective employees (3) institute an ethics code and training program (4) reward ethical behavior and protect whistleblowers

macroenvironment includes six forces:

(1) economic, (2) technological, (3) sociocultural, (4) demographic, (5) political-legal, (6) international.

"diversity wheel" consists of four layers of diversity:

(1) personality, (2) internal dimensions, (3) external dimensions, (4) organizational dimensions

To help distinguish the important ways in which people differ, Lee Gardenswartz and Anita Rowe have identified a "diversity wheel" consisting of four layers of diversity:

(1) personality, (2) internal dimensions, (3) external dimensions, (4) organizational dimensions

Carroll suggests the responsibilities of an organization in the global economy should take the following priorities:

1. Be a good global corporate citizen, as defined by the host country's expectations. (Top of pyramid, philanthropic responsibility) 2. Be ethical in its practices, taking host-country and global standards into consideration. (Ethical responsibility) 3. Obey the law of host countries as well as international law. (Legal responsibility) 4. Make a profit consistent with expectations for international business. (Pyramid base, economic responsibility)

The argument in favor of corporate social responsibility includes the following.

1. Businesses have an ethical obligation to contribute to society's welfare. 2. Businesses create problems, and should help solve those problems. 3. Businesses have resources to solve problems that other entities do not have. 4. Socially responsible behavior can create a favorable public image which in turn makes the business more profitable.

Resistance to diversity may be expressed in the following ways:

1. Ethnocentrism, 2. Fear of reverse discrimination, 3. Resistance to diversity program priorities 4. Unsupportive social atmosphere, 5. Lack of support for family demands 6. Lack of support for career-building steps

Milton Friedman would have agreed with which of the following statements about social responsibility? A. A company will produce higher quality goods and services when it practices social responsibility. B. A company will increase its sales when it practices social responsibility. C. A company will be able to create better jobs when it practices social responsibility. D. A company will become distracted from its task to maximize profits when it practices social responsibility. E. A company will provide improved value when it practices social responsibility.

A company will become distracted from its task to maximize profits when it practices social responsibility.

"He who dies rich dies thus disgraced,"

Andrew Carnegie

(T/F) "Ethnocentrism" is a strong self-identification with one's race or ethnicity, often to the exclusion of other personal characteristics.

FALSE

(T/F) Corporate social responsibility (CSR) is the notion that corporations are expected to create a positive and interactive environment for employees.

FALSE

(T/F) Ethical behavior is defined as a behavior that creates the greatest good for the greatest number of people.

FALSE

(T/F) Ethical responsibility sits at the top of Carroll's corporate social responsibility pyramid.

FALSE

(T/F) Factors such as unemployment conditions and interest rates would be considered part of demographic forces in an organization's general environment.

FALSE

(T/F) In an organization's environment, internal stakeholders include the suppliers of an organization.

FALSE

(T/F) On Gardenswartz and Rowe's "diversity wheel", biographical dimensions of diversity consist of the personal characteristics that people acquire, discard, or modify throughout their lives.

FALSE

(T/F) Only those with an ownership interest in a company are known as stakeholders.

FALSE

(T/F) The Americans with Disabilities Act requires organizations to make all requested accommodations for an individual's disabilities.

FALSE

(T/F) The approach to ethical behavior that is guided by respect for fairness and equity is the integrity approach.

FALSE

(T/F) The economic integration of the European Union can best be considered part of economic forces.

FALSE

(T/F) The mass media is part of an organization's general environment.

FALSE

(T/F) The two parts of the external environment are the task environment and the socio-political environment.

FALSE

(T/F) Using cash from newer investors to pay off older ones is known as a Kohlberg scheme.

FALSE

"diversity wheel" was identified by

Lee Gardenswartz and Anita Rowe

Which of the following statements about a code of ethics is most true? A. A code of ethics is rarely a written document but instead an informal understanding between people who work for a particular organization. B. Most codes of ethics offer guidance on how to treat stakeholders. C. The purpose of a code of ethics is to keep top management out of jail. D. Codes of ethics prohibit bribes unless it is the accepted way of doing business in a foreign country. E. Workforce diversity is never covered in a code of ethics; instead it is covered in a separate diversity code.

Most codes of ethics offer guidance on how to treat stakeholders.

Examples of special interest groups

Mothers Against Drunk Driving, the National Organization for Women, and the National Rifle Association.

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following? A. Open a personal line of credit B. Hire an ethics officer C. Set procedures and guidelines for the board of directors D. Hire a diversity officer E. Personally certify financial reports

Personally certify financial reports

Ethical behavior is behavior that is

accepted as "right" as opposed to "wrong" according to those standards.

examples of demographic forces

age, gender, or ethnic origin.

The rise in popularity of the Internet has

allowed manufacturers of personal computers, for example, to cut out the "middleman"—the distributor—and to sell to customers directly.

example of technological forces

biotechnology may well turn health and medicine upside down in the coming decades.

most codes of ethics prohibit

bribes

International forces are

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

Political-legal forces are

changes in the way politics shape laws and laws shape the opportunities for and threats to an organization. I

Companies try to screen out dishonest, irresponsible employees by

checking applicants' résumés and references. Some also use personality tests and integrity testing to identify potentially dishonest people.

the purpose of a code of ethics is to

clearly state top management's expectations for all employees.

SarbOx prohibits

companies from taking personal loans or lines of credit, and makes them reimburse the organization for bonuses and stock options when required by restatement of corporate profits.

The task environment consists of

competitors, customers, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media.

Corporate social responsibility (CSR) is the notion that

corporations are expected to go above and beyond following the law and making a profit to be a good corporate citizen and benefit interests of society.

External stakeholders include

customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

The Americans with Disabilities Act prohibits .

discrimination against the disabled

A __________ is a person or organization that helps another organization sell its goods and services to customers. A. financier B. supplier C. strategic ally D. distributor E. special interest group

distributor

example of an international force

economic integration of the European Union is creating threats and opportunities for American companies.

Which of the following forms the base of Carroll's global corporate social responsibility pyramid? A. Philanthropic responsibility B. Economic responsibility C. Ethical responsibility D. Moral responsibility E. Legal responsibility

economic responsibility

what is at the bottom go Carroll's global corporate social responsibility pyramid?

economic responsibility

International forces are changes in the

economic, political, legal, and technological global system that may affect an organization.

The general environment forces are

economic, technological, sociocultural, demographic, political-legal, and international.

The general environment, or macroenvironment, includes six forces:

economic, technological, sociocultural, demographic, political-legal, and international.

External dimension examples

educational background, marital status, parental status, religion, income, geographic location, work experience, recreational habits, appearance, personal habits.

external dimensions examples

educational background, marital status, parental status, religion, income, geographic location, work experience, recreational habits, appearance, personal habits.

External dimensions of diversity include an

element of choice;

An ethical climate represents

employees' perceptions about the extent to which work environments support ethical behavior.

Internal stakeholders include

employees, owners, and the Board of Directors.

examples of who represent the internal stakeholders of an organization.

employees, owners, and the board of directors

The internal stakeholders consist of

employees, owners, and the board of directors, if any.

The internal stakeholders consist of :

employees, owners, and the board of directors, if any.

Government regulators such as OSHA are regulatory agencies that

establish ground rules under which organizations may operate

Standards of right and wrong that influence behavior are known as A. ethics. B. morals. C. a value system. D. ethical behavior. E. values.

ethics

Which of the following is one of the four layers of the "diversity wheel"? A. Gender B. External dimensions C. Lifestyle D. Management status E. Physical ability

external dimensions

The FAA is a stakeholder in an airline's

external environment, more particularly its task environment.

Labor unions employee organizations are among the 11 groups that are

external stakeholders in the task environment.

The moral-rights approach is

focused on respecting the fundamental rights of human beings.

examples of internal dimensions

gender, age, ethnicity, race, sexual orientation, physical abilities.

Technological forces are part of the __________ environment of organizations. A. internal B. mechanical C. controllable D. task E. general

general

Economic forces consist of the

general economic conditions and trends that may affect an organization's performance.

Technological forces are part of an organization's

general environment, external stakeholders.

Last summer a representative of OSHA, the agency responsible for enforcing health and safety regulations, visited one of Armando's construction sites and his company, Build Your Dream, Inc. was fined for several violations. To this company, OSHA represents a _____, part of an organizations'_____. A. special interest group; task environment B. government regulator; general environment C. political-legal force; general environment D. special-interest groups; external environment E. government regulators; task environment

government regulators; task environment

most codes of ethics offer

guidance on how to treat customers, suppliers, competitors, and other stakeholders.

A distributor is a person or an organization that

helps another organization sell its goods and services to customers.

Managers who sometimes side with employees over clients may A. radically harm the bottom line. B. increase training costs. C. enhance diversity. D. improve employee retention. E. alienate other customers.

improve employee retention

Which of the following dimensions is an example of a secondary dimension on the diversity wheel? A. Income B. Race C. Sexual orientation D. Physical abilities E. Age

income

Sociocultural forces are

influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization.

Demographic forces are

influences on an organization arising from changes in the characteristics of a population,

A stakeholder is a broad term for the people whose

interests are affected by an organization's activities. It can be applied to both internal and external groups.

An organization's board of directors is part of its ______ environment. A. internal B. uncontrollable C. external D. task E. general

internal

The economic integration of the European Union is part of the

international forces.

The justice approach

is guided by impartial standards of fairness and equity.

The individual approach

is guided by what will result in the individual's best long-term interests.

Riley is a manager at a local recreation center. She is developing a new online system for registration for classes. Some of the programs are so popular that they fill up quickly and parents have complained that with a slow Internet connection they have no chance to get in. In an effort to be fair to all prospective participants, Riley is using what approach to ethical behavior? A. Utilitarian B. Individual C. Moral-rights D. Justice E. Environmental

justice

______ are in an organization's external task environment. A. Employees B. International forces C. Owners D. Lenders E. Demographic forces

lenders

The general environment is also called the

macroenvironment

Organizational dimensions include

management status, union affiliation, work location, seniority, work content, and division or department.

At the preconventional level

managers would be autocratic or coercive, and expect employees to be obedient for obedience's sake.

Beyond the task environment is the general environment, or

microenvironment

The general environment of an organization is also known as its A. forcefield. B. macroenvironment. C. global sphere of influence. D. task environment. E. control climate.

microenvironment

Issues like privacy, health and safety, and due process being described as basic rights is typically tied to which of the following approaches to deciding ethical dilemmas? A. Utilitarian B. Justice C. Individual D. Liberty E. Moral rights

moral rights

Suppliers are

one of the external stakeholders in the task environment.

Ethnocentrism is the belief that

one's native country, culture, language, abilities, or behavior is superior to that of another culture.

The Americans with Disabilities Act prohibits . requires

organizations to reasonably accommodate an individual's disabilities

One tactic special-interest groups may use is to

organize picketing and boycotts

______ is defined as the stable physical and mental characteristics responsible for a person's identity. A. Philosophy B. Personality C. Psychometrics D. Philanthropy E. Psychology

personality

Only about a fifth of American managers reach which stage of personal moral development? A. Internalized B. Postconventional C. Expectational D. Enlightened E. Cooperative

postconventional

third level of personal moral development

postconventional

Tanya is a new manager, and she is always threatening her employees with a variety of punishments in order to get them to follow the rules. The level of personal moral development at which Tanya is operating is the ______ level according to Kohlberg. A. conventional B. unconventional C. preconventional D. postconventional E. reconventional

preconventional

Kohlberg has proposed three levels of personal moral development—

preconventional, conventional, and postconventional.

Americans with Disabilities Act,

prohibits discrimination against the disabled and requires organizations only to reasonably accommodate an individual's disabilities.

The Americans with Disabilities Act requires employers to A. hire all qualified disabled persons who apply. B. reasonably accommodate an individual's disability. C. hire quotas of qualified disabled persons. D. actively solicit job applications from disabled persons. E. hire disabled persons to qualify for tax breaks.

reasonably accommodate an individual's disability.

Values are the

relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior

The justice approach is guided by

respect for impartial standards of fairness and equity.

Ethical behavior in the moral-rights approach is guided by

respect for the fundamental rights of human beings, such as those expressed in the U.S. Constitution's Bill of Rights.

The utilitarian approach

seeks to maximize the greatest good for the greatest number of people.

Milton Friedman represents the view against

social responsibility

After the disastrous oil spill in the gulf, many consumers decided to avoid BP products, many even joining a popular "Boycott BP" Facebook page. Stuart runs an independent BP gas station in Louisiana and his business suffered from this consumer response. In this instance, boycotters would be considered a _____, part of the gas station's ______ environment. A. special-interest group; task B. local community; task C. demographic force; general D. sociocultural force; task E. local community; general

special-interest group; task

Governments are part of the ______ environment of organizations. A. alliance B. task C. sociopolitical D. general E. internal

task

Mass media is part of the

task en`vironment.

Governments are part of an organization's

task environment, and external stakeholders.

You may be able to control some forces in the __________, but you can't control those in the __________.

task environment, general environment

Economic forces consist of

the general economic conditions and trends that may affect an organization's performance.

stockholders are just one of

the internal stakeholders (owners) those who have a financial interest in the organization.

Which of the following is an example of an internal stakeholder of an organization? A. A local news station B. The distributor for one of the finished products C. A new union D. The suppliers of raw materials for one of the products E. The non-management workforce

the non-management workforce

Stakeholders are

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

External dimensions of diversity consist of

the personal characteristics that people acquire, discard, or modify throughout their lives:

external dimensions consist of

the personal characteristics that people acquire, discard, or modify throughout their lives:

External dimensions are referred to as

the secondary dimensions of diversity

Personality is defined as

the stable physical and mental characteristics responsible for a person's identity.

Ethics are

the standards of right and wrong that influence behavior.

The external environment consists of

the task environment and the general environment.

the members of the task environment are all important to the organization because

they are the source of some input the organization needs.

It is important for managers to foster ethical climates because

they significantly affect the frequency of ethical behavior.

Internal dimensions of diversity are

those human differences that exert a powerful, sustained effect throughout every stage of our lives

According to Archie B. Carroll, corporate social responsibility rests at the

top of a pyramid of a corporation's obligations

Special-interest groups are groups whose members

try to influence specific issues, some of which may affect your organization.

examples of economic forces

unemployment, inflation, interest rates, economic growth

general economic conditions and trends

unemployment, inflation, interest rates, economic growth

denying people the right to life, liberty, privacy, health and safety, and due process is

unethical.

Which of the following dimensions is an example of an organizational dimension on the diversity wheel? A. Income B. Work experience C. Union affiliation D. Educational background E. Physical abilities

union affiliation

A Ponzi scheme is

using cash from newer investors to pay off older ones.

The four approaches to deciding ethical dilemmas are

utilitarian, individual, moral-rights, and justice.

Fairness in hiring practices is an example of an organization's A. cost-benefit analysis. B. morality. C. competitive advantage. D. long-term interests. E. values.

values

Ethical behavior in the utilitarian approach is guided by

what will result in the greatest good for the greatest number of people.

EXTERNAL DIMENSIONS

We have a greater ability to influence or control them than we do internal dimensions.

SarbOx requires

a company's chief executive officer and chief financial officer to personally certify the organization's financial reports,

A code of ethics consists of

a formal written set of ethical standards guiding an organization's actions.

Carnegie became well known as

a supporter of free libraries.

The task environment consists of

11 groups that present the organization with daily tasks to handle

(T/F) According to Milton Friedman, the social justification of a business's existence is in its benefit to stockholders, creation of jobs and expansion of the economy.

TRUE

(T/F) Andrew Carnegie, steel magnate and supporter of free libraries, is an example of a philanthropist.

TRUE

(T/F) As a manager, you cannot control the forces in the general environment.

TRUE

(T/F) Declining literacy is a problem in the American workforce.

TRUE

(T/F) Distributors have been hurt by the rise in popularity of the Internet.

TRUE

(T/F) External stakeholders include labor unions.

TRUE

(T/F) Individuals have some ability to control their external dimensions of diversity.

TRUE

(T/F) Some firms do not have a Board of Directors.

TRUE

(T/F) To a commercial airline, the Federal Aviation Agency is an example of a stakeholder.

TRUE

example of a sociocultural force

The interest in health and fitness, for instance, led to a decline in sales of cigarettes, whiskey, red meat, and eggs.