Ch. 3 - Smart Book

1. The most ethical decision is that which best upholds impartial standards of fairness and equity.

Justice Approach

6. Company policy requires managers to penalize employees earning less than a "Satisfactory" rating on their annual performance review by denying them their annual 2 percent salary raise. A manager applies the penalty to each employee with less than a "Satisfactory," even if she knows that for some employees, the raise would really help their financial situation.

Justice Approach

The moral-rights approach to solving ethical dilemmas is guided by _____.

The moral-rights approach to solving ethical dilemmas is guided by _____.

2. The most ethical decision is that which yields the greatest good for the greatest number of people.

Utilitarian Approach

5. A manufacturing company decides to continue using a chemical that is leaching into the local water supply and potentially causing health problems in those who drink it because the local population is only about 2,000 people, and the company is producing low-cost, lightweight, collapsible tents for 50,000 homeless children.

Utilitarian Approach

What are three examples of demographic forces that can affect an industry?

a rise in church attendance a decrease in marriage rates a decline in population size

When companies link up with one another in order to realize certain advantages, they are known as strategic _____.

allies

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.

clawback

The purpose of a code of ethics is to

clearly state top management's expectations for all employees

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

Recent trends show that the percentage of the labor force represented by unions has _____.

decreased

A person or an organization that helps another organization sell its goods and services to customers is called a(n)

distributor

Forward-thinking organizations tend to consider ______ as the most important resource a company has.

employees

In modern organizations, _____ are the most important resource.

employees

An organization's internal stakeholders consist of

employees, owners, and the board of directors.

A company's triple bottom line measures which aspects of its performance? (select all that apply)

environmental financial social

Behavior that is accepted as proper according to a society's prevailing values is known as _______ behavior.

ethical

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

ethics

Millennials in the workforce: (select all that apply)

expect more from the organizations they do business with want work/life balance are concerned about a corporation's ethics, motives, and methods expect more from the organizations they work for

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

false

The Sarbanes-Oxley Reform Act was established to monitor ______ of public institutions.

financial records

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 macroenvironment is also known as the _______ environment.

general

Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected.

governance

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.

individual

One flaw in the _____ approach to ethical decision making is that one person's short-term self-gain may not in fact be good for everyone in the long term.

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 _____.

insider trading

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

internal

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

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

making profits

A distributor is sometimes referred to as a(n)

middleman

Which generation seems more concerned with finding work/life balance than other generations?

millenials

The _____ approach to ethical decision making is guided by respect for the fundamental rights of human beings.

moral-rights

The ______ of an organization consist of all those who can claim it as their legal property.

owners

A company's triple bottom line represents which three aspects?

people, planet, profit

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

social

A(n) _____ force represents the influences and trends originating in the human relationships of a society that may affect industries.

sociocultural

If you run a one-person operation with no other investors or employees, your company is a(n):

sole proprietorship

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

special interest

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?

stockholders

Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone are known as _______.

strategic allies

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 + general

New developments in methods for transforming resources into goods or services are called _______ forces.

technological

What are two examples of economic forces within a company's general environment?

the unemployment rate bank interest rates

According to Fordham professor Hurley, there is not a crisis of ethics in business today but a crisis of _____.

trust

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.

utilitarian

Values and _____ are the underpinnings for organizational ethics and ethical behavior.

value systems

_____ are the relatively permanent and deeply held underlying beliefs that help determine a person's behavior.

values

_____ sometimes risk their jobs by coming forward about organizational misconduct and thus need to be protected.

whistleblowers

What are two requirements established by the Sarbanes-Oxley Act of 2002?

An organization must put procedures and guidelines in place for audit committees. A company's CEO and CFO must certify the accuracy of the company's financial reports.

3. The most ethical decision is that which will result in your own best long-term interests.

Individual Approach

7. A bank's retirement fund manager decides to increase the bank's 401K match from 5 percent to 8 percent, meaning the bank will now match employees' contributions up to 8 percent of their salary. This is a smart long-term decision for the manager because he earns a yearly bonus based on the percentage of their salary that his employees contribute to the retirement fund.

Individual Approach

What are four of the groups that make up part of the task environment?

Local communities Distributors Strategic allies Government regulators

4. The most ethical decision is that which is most respectful of the fundamental rights of all human beings.

Moral-Rights Approach

8. A company's chief Human Resources officer decides that even though it will save the company approximately $1 million dollars, cutting employees' medical insurance is not the right decision because of how it would ultimately affect employees' health.

Moral-Rights Approach

Which of these are forces within an organization's general environment? (select all that apply)

Sociocultural Demographic Economic International Technological Political-Legal