Chapter 5 MGT 200

What are the two basic contrasting principles that guide managerial responsibility?

As agents for the shareholders, managers have an obligation to maximize profit. Managers should be motivated by principled moral reasoning.

Which are factors in becoming an ethical leader? (Check all that apply.)

Being seen by others as a moral person Influencing others to behave ethically

What term describes a cooperative economic system that works to minimize the environmental impact of business?

Circular economy

Select the requirements that are part of the Sarbanes-Oxley Act (Check all that apply.)

Companies must adhere strictly to accounting rules. Senior managers must personally sign off on financial results. Companies must have more independent board directors.

Which of the following is a key reason for businesses' growing interest in protecting the natural environment?.

Companies see ecological sustainability as a major driver of innovation.

The Sarbanes-Oxley Act of 2002 was a response to which of the following?

Corporate scandals

Which are the most basic sources of risk in our society? (Check all that apply.)

Ecologically unsustainable consumption of natural resources Excessive production of hazards

What term describes the processes in an organization where decisions are evaluated and made on the basis of right and wrong?

Ethical climate

Which of the following is not a reason organizations see ethics as an important issue?

Ethical organizations always lose money when compared to unethical organizations.

What term describes the system of rules that establishes moral values and guides behavior?

Ethics

Which of the following are elements of the process for ethical decision making? (Check all that apply.)

Having awareness to realize the issue has ethical implications Using judgment to recognize what actions are morally defensible Having moral character to act in accordance with your ethics

Which statements about whistleblowing are true? (Select all that apply.)

It involves telling others inside or outside an organization of wrongdoing. It requires courage on the part of the whistleblower.

Which are common perceptions of how business leaders get ahead by using illegal means? (Check all that apply.)

Kickbacks Insider trading

What are benefits of the partnerships created in a circular economy? (Check all that apply.)

More efficient use of energy Less use of resources Reduction in waste

Which statements are true about ethical biases? (Check all that apply.)

Most people have unconscious biases that favor themselves and their own group. Managers often hire people who are like them and think they are immune to conflicts of interest.

Which statement is true about the reconciliation of profit maximization with corporate social responsibility?

Profit maximization and corporate social responsibility can successfully converge.

Which are danger signs that suggest that an organization may be allowing or encouraging unethical behavior? (Check all that apply.)

Responding to the demands of shareholders at the expense of other constituencies Failure to establish a written code of ethics Excessive emphasis on short-term revenues over longer-term considerations

Which piece of legislation was passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence?

Sarbanes-Oxley Act

What are the possible results of lying for a reason of negotiation?

Short-term gain and economically positive

Which of the following is not an ethical system that supports moral philosophy?

Social theory

What is the relationship between corporate social performance and financial success? (Check all that apply.)

Socially responsible actions can have long-term benefits and offer business opportunities and improve profitability. Evidence indicates that social responsibility is on average associated with better financial performance. Socially responsible organizations are not necessarily more or less successful in financial terms.

______ means contributing to the long-term welfare of others.

Stewardship

What term describes economic development that meets present needs without harming the needs of future generations?

Sustainable growth

Choose the answer that best describes the relationship between sustainable growth and natural ecosystems.

Sustainable growth meets the organization's needs without harming the environment; therefore, it is fully compatible with natural ecosystems.

Which statements best describe the aim of ethics? (Check all that apply.)

The aim of ethics is to identify the rules that govern people's behavior. The aim of ethics is to identify the 'goods' that are worth seeking.

Which of the following is a danger sign of unethical behavior?

The manager drops prices to increase sales revenue, even though it will negatively impact the company in the long term.

What are the effects on employees of a weak ethical climates? (Check all that apply.)

Unethical behavior Job dissatisfaction

Companies, managers, and their communities all benefit over the long term when managers act with integrity and Blank______.

apply ethics

One of the biggest impacts of the Sarbanes-Oxley Act was the requirement for Blank______.

companies to provide reports about the effectiveness of their financial reporting process

Stewardship is the act of Blank______.

contributing to the long-term welfare of others

The aim of business Blank______ is to identify the rules that should govern people's behavior.

ethics

An ethical leader is best defined as someone who Blank______.

is personally moral and a moral manager

When corporations behave badly, which stakeholder group tends to suffer the most?

low-ranking employees

Ethical decision making requires Blank______. (Check all that apply.)

moral character moral awareness moral judgment

If you were asked to describe the principles, rules, and values that you use when deciding what is right or wrong, you would be talking about your Blank______.

moral philosophy

About half of all employees in large companies have Blank______.

observed misconduct in the workplace

In addition to philosophical reasons, companies are becoming environmentally conscious in order to Blank______. (Check all that apply.)

react to a competitor's action create a competitive advantage comply with legal requirements satisfy consumer demand

We live in a society where the creation and distribution of wealth generates byproducts that can cause injury, loss, or danger to people and the environment. This is known as a(n) Blank______ society.

risk

According to Milton Friedman, a business should attempt to increase its profits while conforming to Blank______. (Check all that apply.)

society's law ethical customs

When an employee courageously tells others who are inside or outside of an organization of wrongdoing, it is called Blank______.

whistleblowing