MGMT 405 - SB 4

What managerial attitude best exemplifies the moral rights rule?

"Do unto others as you would have them do unto you."

Why is it important to a community for a company to follow the laws and act ethically?

Because if a company fails due to illegal or unethical practices, it hurts the community

When companies make ethical and socially responsible decisions on behalf of their employees, what is the result?

Companies make decisions that protect, enhance and promote the welfare and well-being of their stakeholders.

What are the advantages of social responsibility? (Choose all that apply.)

It can improve a company's reputation. The more organizations act in socially responsible ways, the better the quality of life will be for the country as a whole. If all organizations adopt a caring approach, a climate of caring will pervade the wider society.

What would be an accurate statement regarding ethics and legality?

Just being legal does not make an action ethical.

How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business? (Choose all that apply.)

There would be more non-productive activity. Efficiency and effectiveness would decrease. Additional bargaining will be needed to conclude contracts.

Defensive

When managers are granted large stock options and bonuses even as company performance declines rapidly

Accommodative

When managers at older and more reputable companies, with much to lose, dissuade employees from acting unethically even when it would ensure their competitive advantage

Proactive

When managers seek ways to reduce operating costs to prevent layoffs to enable them to keep promises they make to employees

Managers using the utilitarian rule must first consider the types and levels of ______ various stakeholder groups.

benefits and harm to

Which of the following best describes the managers' primary concern as a stakeholder group?

deciding on a company's goals and how to use its recources

A company within a community contributes to its local ______.

economy

Managers using the moral rights rule consider the ______.

effects of an action on individuals' rights

The quandary people find themselves in when they have to decide if they should act in a way that might help another person or group even though doing so might go against their own self-interest defines a(n) ______ dilemma.

ethical

The utilitarian rule states that ______ _________ are those that produce the greatest for the greatest number of people.

ethical decisions

To strengthen a company's organizational culture, managers make good decisions when faced with ethical dilemmas by instilling in their employees ______.

ethical values

True or false: Ethical scandals concerning executive pay occur only in for-profit companies.

false

True or false: Making a decision concerning which stakeholder group's rights and expectations should be emphasized does not create an ethical dilemma for managers.

false

True or false: Societal ethics are standardized from country to country in nations throughout the world.

false

Unethical behavior can ruin business commerce, which in turn can lower a society's standard of living, because _______.

fewer goods and services are produced

What three company resources are managers responsible for in order to increase performance and, as a result, the company's stock price?

financial, capital, and human

When people's self-interests are at stake, their _____ ethics influence how they perceive their responsibilities and how they behave towards others.

individual

How much time would it take for managers to negotiate contracts in a society where stakeholders routinely cheat each other in comparison to negotiating contracts in an ethical society?

it would take more time

The _____ rule states that an ethical decision is a decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way.

justice

To enforce their views of right or wrong behavior, different groups in society lobby for ______.

laws

The stakeholder group responsible for choosing the strategic goals that the company should pursue in order to benefit all of the company's stakeholders is the ______.

managers

Who is it that provides their human capital—their skills, expertise, and experience—to the company and, therefore, has a claim or stake in the company?

managers

The ______ rights rule states that an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it.

moral

The ______ rule involves comparing the effects of potential actions to the rights of various stakeholder groups, then choosing the action that best protects all the groups' rights.

moral rights

Some non-profit organizations pay their top executives ______ per year, despite arguments that the compensation is excessive because it is a non-profit organization.

more than $1 million

Managers who will break the law to satisfy their own self-interest demonstrate the ______ approach. Managers who obey the law, but do nothing more than that to act in a socially responsible manner, exhibit the ______ approach.

obstructionist; defensive

The four main determinants of differences in ethics among people, employees, companies, and countries are organizational ethics: (Check all that apply.)

occupational ethics societal ethics individual ethics

Companies and their managers are guided by ______ ethics, which are the guiding practices and beliefs that managers use as the lens through which they view their responsibilities toward their stakeholders.

organizational

Societal ethics, occupational ethics, individual ethics, and _____ ethics are the four main determinants of difference in ethics among people, employees, companies, and countries.

organizational

Company founders are very influential in shaping the ______, as these are the guiding principles and beliefs that will shape the company's core and serve as a lens through which managers view their responsibility towards their stakeholders. (Choose all that apply.)

organizational ethics organization's code of ethics

What must society do first in order to punish undesired behavior?

pass laws

Individual ethics are ______ that determine how people view their responsibilities to other people and groups and how they should act in situations when their own self-interests are at stake.

personal standards and values

The ______ rule is that an ethical decision is one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think it is acceptable.

practical

Which ethical rule suggests communicating the decision to people outside the company?

practical

Unethical behavior generally results in a(n) _______ in efficiency, effectiveness, company performance, and national standards of living, well-being, and prosperity.

reduction

A company's ethics impacts its view of how it must protect, promote, and care for the welfare and well-being of all stakeholders and society as a whole. This obligation to make decisions that will offer such protections is referred to as the company's ______.

social responsibility

When _____ ethics are in play, members of a society treat each other with fairness, equity, and justice.

societal

A company's employees, customers, stockholders, suppliers, and distributors are considered the company's ______.

stakeholders

Employees, customers, suppliers, and distributors, and the community are all considered _______ because they are all affected by the way a company and its managers behave.

stakeholders

Owners of shares in a company are called ______.

stockholders

Stakeholders that provide an organization with inputs such as raw materials, components, contract labor, and clients are referred to as ______. This group expects to be paid fairly and promptly for their inputs.

suppliers

It is important to punish unethical behavior ___.

to keep others from engaging in their own unbridled self-interest.

True or false. Stockholders buy shares of companies and thereby become owners.

true

People are more willing to enter into a somewhat risky venture when they the person or group with whom they are entering the relationship.

trust

The ______ rule states that ethical decisions are those that produce the greatest good for the greatest number of people.

utilitarian

What is the outcome when ethical values and norms become a part of an organization's culture?

Organizational members resist self-interested action.

What is it called when a person has faith in the goodwill of another person, even if this puts them at risk?

Trust

Obstructionist

When managers knowingly seek to hide evidence from the public, such as that asbestos and/or tobacco causes lung cancer

Companies that want to be socially responsible, but tend to wait to have the need pointed out to them, have adopted the ______ approach. Those who seek out ways to help stakeholders before a problem is pointed out to them have adopted the ______ approach.

accommodative; proactive

Consider a situation in which people are faced with two opposing decisions: one could possibly go against people's self-interest, but may help a person or group; or one could possibly hurt someone, while helping oneself. This is called an ethical

dilemma

While managers may want to treat all stakeholders equally, in reality, they need to prioritize the treatment of the various stakeholder groups which may create an ethical ______ for managers.

dilemma

Suppliers expect fair and prompt payment for the purchase of their materials, and ______ expect to receive products from manufacturers at the agreed-upon quality and price.

distributors

Managers and employees must work to increase _____ in order to create loyal customers and attract new ones.

efficiency and effectiveness

Which stakeholders have a claim on and a stake in a company because of the productive resources they provide? (Check all that apply.)

executives stockholder managers

Managers have a claim on an organization because they bring to it their: (Choose all that apply.)

experience skills expertise

Customers are frequently regarded as the most critical stakeholder group for the company's success because ______.

if a company cannot attract customers to buy its products, it cannot stay in business

If unethical behavior is discovered by those in authority and goes unpunished, likely consequences of this may be:

increased cynicism and decreased morale among employees others in the organization feel they can act in the same manner

When standards are in place to guide people within the same profession, trade, or craft on how to conduct themselves while working on profession-related activities, this is referred to as _____ ethics

occupational

For members of a particular trade or craft, their profession's ______ ethics are the standards that govern how members should conduct themselves when performing work-related activities.

occupational (or work)

A company can act ethically toward employees and meet their expectations by creating an occupational structure ______.

that fairly and equitably rewards employees

What is the rule that describes ethical decisions in which a choice must be made to distribute or deny benefits among people and groups in a fair, equitable, or impartial way?

the justice rule

True or false: A specific behavior that is deemed illegal is not necessarily unethical.

true

True or false: Acting in a socially responsible manner can help a company by improving its reputation.

true

True or false: One principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.

true

Managers using the ______ rule first consider the types and levels of benefits and harm to various stakeholder groups. They should choose the course of action that provides the most benefits, or conversely does the least harm, to stakeholders.

utilitarian