Management ch 4

An obligation toward society assumed by business is called corporate _____________ responsibility.

social

What term describes a company's need to obey local, state, federal, and relevant international laws?

Legal responsibilities

What is the process of analyzing all inputs and outputs through the entire life of a product to determine the total environmental impact?

Life-cycle analysis

The Sarbanes-___________ Act was passed 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.

Oxley

Which subjects are commonly addressed in ethics codes? (Choose every correct answer.)

Political activity Employee conduct Community and environment Suppliers and contractors Technology

Which type of environmental impact are some organizations striving for today?

Positive

Which criteria would indicate an ethical action when evaluating your ethical duties? (Choose every correct answer.)

You would be proud to see the action widely reported in newspapers. It doesn't harm the "least among us." You would be willing to see others take the same action when you might be the victim.

A philosophy that bases ethical behavior on the opinions of relevant other people is called ___________.

relativism

In any organization, your most precious asset is your

reputation

Which statement is most consistent with the virtue ethics perspective?

What is considered to be moral must also come from what a mature person with good moral character would say is right.

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) ______ society.

risk

Which ethical system defines acceptable behavior as that which maximizes benefits for the individual?

Egoism

In a 2019 survey conducted by Edelman, the percentage of Americans who trust business had dropped to _____.

56%

For a company's ethics code to be effective, who should be involved in writing it?

All those who will be affected by it

Which factors are essential to becoming an ethical leader? (Choose every correct answer.)

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

Which of the following are ethical issues that managers encounter with the use of technology in the workplace? (Choose every correct answer.)

Disclosure of confidential information Loss of productivity Computer users introducing computer viruses

There are many ethical challenges facing U.S. managers today. Identify from the list below some of the ethical dilemmas managers are currently facing. (Choose every correct answer.)

Commercialism in schools Executive compensation Branding Sweatshops

What type of analysis is used by companies to identify actions that will maximize profits while satisfying the demand for corporate social responsibility?

Cost benefit analysis

What are characteristics of ecocentric management? (Choose every correct answer.)

Creation of sustainable economic development Improvement of quality of life worldwide for all organizational stakeholders

Which factors are fundamental sources of risk in modern society? (Choose every correct answer.)

Excessive production of hazards Ecologically unsustainable consumption of natural resources

Businesses view environmental issues as no-win situations; either you help the environment and hurt your business or you help your business and hurt the environment.

False

True or false: Sustainable analysis is the process of analyzing all inputs and outputs through the entire life of a product to determine the total environmental impact.

False

Which examples illustrate how organizations are reacting to the environmental concerns that are both environmentally positive and profitable? (Choose every correct answer.)

Google developing renewable sources of energy Coca-Cola pledging to cut its carbon footprint by 25% Industries that partner with each other so that waste materials created by one can be used by another.

Which are parts of the process for ethical decision making? (Choose every correct answer.)

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 statement best defines the ethical system known as utilitarianism?

It is an ethical system in which the goal is to create the greatest good for the greatest number.

What is the role of courage in taking action on ethical decisions?

It takes courage to act consistently with your ethical decisions.

What are some of the factors that may encourage unethical behavior? (Choose every correct answer.)

Lack of written code of ethics Lack of clear procedures Focus on a "quick fix"

Which element is NOT part of the process for making ethical decisions?

Moral control reason: Making ethical decisions takes three things: moral awareness, moral judgment, and moral character.

Which qualities are required for behaving ethically? (Choose every correct answer.)

Moral judgment Moral character Moral awareness

Which ethical system defines ethical behavior according to how others behave?

Relativism

What is a common first step when drafting an ethics code for a business?

Research other companies' ethics codes

The _____ is an act 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

Which model of corporate responsibility holds that managers act as agents for shareholders and, as such, are obligated to maximize the present value of the firm?

Shareholder

What is the relationship between corporate environmental performance and profitability?

Some research has shown a positive relationship with improved profitability and corporate environmental performance.

Which criteria should be used when evaluating your ethical duties? (Choose every correct answer.)

The action would build a sense of community among those involved. The action doesn't harm the "least among us." You would be proud to see the action reported in newspapers.

Which is the best description of corporate social responsibility (CSR)?

The obligation toward society assumed by business.

How do companies today reconcile profit maximization with corporate social responsibility?

They complete cost-benefit analysis to identify ways to maximize profits while satisfying the demand for corporate social responsibility.

Which factors make an ethics code effective? (Choose every correct answer.)

Those affected by it are involved in writing the statement. It focuses on real-life situations that employees can relate to. It is concise and easy to understand.

Why are companies incorporating environmental values into their competitive strategies and design of their products? (Choose every correct answer.)

To comply with guidelines To create a competitive advantage To satisfy consumer demand To react to a competitor's actions

What did Milton Friedman view as the social responsibility of business?

To increase profits

When running a business, what is the economic responsibility of the organization?

To produce goods and services for society at a price so the business survives and meets investor obligations.

True or false: By demonstrating ethical leadership, managers can boost employee retention.

True

True or false: Some research has shown a positive relationship between corporate environmental performance and profitability.

True

The Quality Products corporation makes it clear to its managers that controlling bottom-line costs takes priority over every other consideration. What may this policy be tacitly encouraging?

Unethical behavior

What is the ethical system that states that all people should uphold certain values that society needs to function?

Universalism

A company is losing market share and realizes it must increase efficiency and cut costs in order to survive and succeed. It decides to shut down several underperforming facilities in the United States and open factories overseas where costs are much lower. This decision will allow the company to compete more effectively in the global market and result in more job opportunities and profits down the road. This is an example of which ethical system?

Utilitarianism

___________ ethics suggests that what is moral must come from what a mature person with good moral character would deem right. (Enter only one word in the blank.)

Virtue

Jeremy is facing a situation in which he must choose among several actions that he will need to evaluate as morally right or wrong. Jeremy's situation is an example of ______.

an ethical issue

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

apply ethics

The practice of businesses paying bloggers to write positive comments about the business is called ______.

astroturfing

If your company were following the principles of ecocentric management, your primary goal would be to ______.

create sustainable economic development

The _________ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

economic

The processes an organization uses to evaluate and make decisions on the basis of right and wrong are collectively called the ______.

ethical climate

The term that refers to the way decisions are evaluated and made in an organization on the basis of right and wrong is ______.

ethical climate

A(n) _____ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.

ethical issue

The system of moral principles that guides behavior is called ______.

ethics

An ethics code, an ethics officer, ethics training, and an ethics communication system are all part of a ______.

ethics program

Most Americans believe CEO pay is

excessive

Corporate ethics programs commonly include ______.

formal ethics codes that detail the company's expectations

Egoism is an ethical system that defines acceptable behavior as that which maximizes benefits for the ______.

individual

In order to create a culture that encourages ethical behavior a manager needs to ______.

lead others to behave ethically

If you are running a company, and you fail to follow the worker pay and safety standards, you are not meeting your ______ responsibilities.

legal

What is the final step of ethical decision making?

propose a convincing moral solution

When making an ethical decision, your first two steps in defining the complete moral problem are to understand all the moral standards and to ______.

recognize all moral impacts

Organizations see ethics as an important issue for all of the following reasons EXCEPT that: unethical organizations always lose money when compared to ethical organizations. ethical temptations occur in every organization. scandals have affected company executives, independent auditors, politicians, regulators, shareholders, and employees. scandals cause the public to become cynical.

unethical organizations always lose money when compared to ethical organizations.

The ethical system that states that everyone should uphold certain values, such as honesty and rules against oppression, is called _________.

universalism