Chapter 3: The Manager's Changing Work Environment

Postconventional

Follow internal values and standards

Conventional

Generally adhere to the expectations of others

Which of these organizations are considered special-interest groups? Choose all that apply. Multiple select question. People for the Ethical Treatment of Animals Mothers Against Drunk Driving The Securities and Exchange Commission GEICO Auto Insurance

People for the Ethical Treatment of Animals Mothers Against Drunk Driving

True or false: Local communities can be affected greatly by the entrance or exit of large businesses.

True

Crowdfunding is defined as ______.

raising money by collecting many small amounts from many people

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

technological

An employee who reports organizational misconduct to the public is known as a(n) _____.

whistle-blower

Which of the following are examples of demographic forces that can affect an industry? (Check all that apply.) Multiple select question. A rise in church attendance An increase in interest rates A decrease in global sales A decrease in marriage rates A decline in population size

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

What statement regarding ethical climates is TRUE?

An ethical climate significantly affects the frequency of ethical behavior.

What are two requirements established by the Sarbanes-Oxley Act of 2002? Multiple select question. An organization must offer shares of stock to all employees after one year of full-time employment. 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. Legal action can be taken against any employee who violates human rights issues.

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.

Which of the following economic forces within a company's general environment affect the company's performance? (Select all that apply.) Multiple select question. The profits of the company Bank interest rates The unemployment rate Product prices

Bank interest rates The unemployment rate

What are the three levels of personal moral development proposed by Kohlberg? Multiple select question. Preconversational Controversial Conventional Preconventional Postconventional

Conventional Preconventional Postconventional

_____ forces are influences on an organization arising from changes in the characteristics of the population, such as age, gender, or ethnic origin.

Demographic

Which of these are forces within an organization's general environment? Multiple select questions. Demographic Physical Political-Legal Economic International Technological Sociocultural

Demographic Political-Legal Economic International Technological Sociocultural

_____ forces consist of conditions such as unemployment, inflation, interest rates, and economic growth that may affect an organization's performance.

Economic

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

False

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

International

Which approach to deciding ethical dilemmas asserts that an ethical decision should be guided by respect for impartial standards of fairness and equity?

Justice approach

Select four groups that make up the task environment. Multiple select question. Board of directors Local communities Owners Strategic allies Distributors Government regulators

Local communities Strategic allies Distributors Government regulators

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

Making profits

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

Millennials

Preconventional

Obey managers to avoid consequences

The principal types of ownership are Multiple select question. Partnership Stakeholders Employee owners Private investors Stockholders Sole proprietorship

Partnership Employee owners Private investors Stockholders Sole proprietorship

A company's triple bottom line represents which three aspects? Multiple select question. Production People Politics Planet Profit Privacy

People Planet Profit

The passage of the US Patient Protection and Affordable Care Act during the Obama administration and its impact on employers is an example of which force?

Political-legal

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

Special-interest

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

Stakeholders

_____ 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.

Whistle-blowers

Ethical behavior is defined as behavior that is:

accepted as "right" as opposed to "wrong" according to prevailing ethical standards

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

allies

Unethical acts intended to create an unfair advantage or help an employee attain benefits they would not otherwise be entitled to receive are known as workplace _____.

cheating

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

The people or organizations that vie with your company for customers or resources are known as _____.

competitors

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

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 _____ the most important resource of a company.

employees

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

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

Organizations can promote _____ by creating a strong ethical climate, screening prospective employees, and instituting ethics codes and training programs.

ethics

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

external stakeholders

Banks, savings and loans, and credit unions are all examples of _______ institutions and are stakeholders within the task environment.

financial

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

financial records

An organization's macroenvironment is also known as its _____ environment.

general

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

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

governance

Federal agencies that establish ground rules under which organizations operate are called _______.

government regulators

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

Sociocultural forces are defined as

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

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

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

insider trading

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

internal

A social audit

is a systematic assessment of a company's performance in implementing socially responsible programs.

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

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

A distributor is sometimes referred to as a(n)

middle man

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

Customers are the element of an organization's task environment who

pay to use the organization's goods or services.

Target donates millions of dollars each year in education-related grants for arts and cultural experiences, field trips, and reading programs, as well as grants to promote public safety. This is an example of _______.

philanthropy

Changes in the way politics shape laws and laws shape the opportunities for and threats to organizations are called ______ forces.

political-legal

Suppliers are people or organizations that

provide raw materials, services, equipment, labor, or energy to other organizations.

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

respect for human rights

What are two functions of the board of directors for a company? Multiple select question. set overall strategic goals for the firm evaluate manufacturing processes make staffing decisions for hourly employees approve salaries of top management

set overall strategic goals for the firm approve salaries of top management

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

social

A social audit is a systematic assessment of a company's performance in implementing _______.

socially responsible programs

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

Government regulators are considered as part of a firm's _____.

stakeholders

If you purchase shares of stock in a company, you are a(n) _____ in that company.

stockholder

The board of directors for a for-profit organization would be elected by the ______.

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

A company or person that provides raw materials, services, equipment, labor, or energy to another organization is called a(n) _____.

supplier

The eleven 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? Multiple select question. internal task service general

task general

An employee organization that represents hourly workers as opposed to salaried employees is called a(n) ______.

union

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

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.

technological

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

Natural capital is defined as the:

value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on.

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

value systems

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

Place the following obligations of a corporation (as identified by Archie B. 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. Instructions

1. Being a good Global corporate citizen 2. Being ethical in its practices 3. Obeying the law 4. Making a profit

Which of the following aspects of a company's performance are measured by the company's triple bottom line? (Select all that apply.) Multiple select question. Financial Ethical Technological Social Environmental

Financial Social Environmental

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.

supervision

Which of the following are true of an ethical dilemma in an organization? (Select all that apply.) Multiple select question. It often involves choosing between economic performance and social performance. It always involves the choice to pursue a course of action that is against the law but that is also beneficial to you. It forces you to decide whether to pursue a course of action that may be good for you or the company but that is unethical and possibly illegal.

It often involves choosing between economic performance and social performance. It forces you to decide whether to pursue a course of action that may be good for you or the company but that is unethical and possibly illegal.

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

climate

A formal set of standards guiding an organization's actions is called a _____.

code of ethics

Four restaurants that are all seeking to attract the same customers would be categorized as _____.

competitors

Those who pay to use an organization's services or to buy their goods are called ______.

customers

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

decreased

International forces are defined as changes in the ___________ that may affect an organization.

economic, political, legal, and technological global system

In modern organizations, _____ are the most important resource.

employees

An organization's internal stakeholders consist of

employees, owners, and the board of directors.

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

Millennials in the workforce: (select all that apply) Multiple select question. want work/life balance expect more from the organizations they work for expect more from the organizations they do business with want personal success more than they want a happy life are concerned about a corporation's ethics, motives, and methods are more concerned with profit than social responsibility

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

Someone who reports organizational misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers is known as a(n) _________.

whistleblower