MGT CH5

amount of _________

explicit control

As director, you will need to determine where to focus your efforts. Who is the primary stakeholder in this situation?

Fresh Start program participants

Which of the following statements are consistent with the findings of Slater and Dixon-Fowler? Check all that apply.

People with MBAs are more likely to lead a sustainable organization than people without MBAs. CEO education is positively related to an organization's sustainability.

Before beginning the audit, your team is briefed on the situation. After the National Highway Traffic Safety Administration (NHTSA) recommended a probe into the failure of air bags deploying in crashes involving two automobile models, the board conducted an internal audit. During the internal audit, they uncovered intra-company memos which indicate that top-level executives had knowledge of a faulty ignition switch in over 800,000 of its small cars as far back as 2005. The faulty part could cause the engine to shut off during driving which then disabled airbags, power steering, and power breaks—an obvious danger to drivers. The board will push for immediate recalls of the affected vehicles, but are looking for your team to provide additional insight on steps the car manufacturer needs to take to remedy the problem, lessen customer backlash, and change the current unethical culture. As leader of the audit team, what do you tell your employees to do first?

Request a copy of the company's code of ethics.

Nike, now a triple bottom line company, had previously come under fire for the low wages that factory workers in Indonesia were paid. These low wages had an impact on which part of the triple bottom line?

Social Performance

Which of the following scenarios represents an ethical dilemma?

Source PX outsourcing production to a third world country where no rules against child labor exist

Companies should view whistleblowers as

assets to be valued

Domain of _________ (Legal standard)

codified law

Despite broad regulatory reforms after the Enron scandal over a decade ago, corporate boards still are not providing the oversight necessary to prevent ethical lapses, according to an article in the Harvard Business Review. Which of the following are likely areas of concern for corporations?

- Corporations place too much emphasis on pleasing shareholders and not enough on meeting the needs of other stakeholders such as customers, employees, and members of the public. - Executives' pay exceeds their value to the organization, as indicated by historical measures.

A CEO wants to make the argument that his company should put policies and structures in place to ensure adherence to the highest possible standard of ethics. Which of the following statements could he correctly use to make his argument?

- Employees prefer to work for highly ethical organizations .- Research has shown a correlation between organizations' commitment to ethics and profitability. -Most consumers would prefer to buy products made by a company that demonstrates ethical behavior.

Which of the following traits are not associated with servant leadership?

A manager keeps information to oneself in benefit of self-interest.

Claire has been described by her subordinates as being a servant leader. Which of the following traits would best describe Claier's approach to leadership?

Claire encourages the growth of others, while expecting nothing in return

Doug, as a new project manager, has been described by his subordinates as not being a servant leader. Which of the following items is an example of Doug not being a servant leader?

Doug tells his employees that he needs to know everything that is going on in the department, especially if someone is not buying in to the project goals

Joe tells you, "I'm concerned that if a Theo Chocolate manager is doing something unethical, I'm not going to hear about it." He asks, "What can I do to encourage employees to speak up if they see something wrong?" What advice would you give him? Check all that apply.

Establish a hotline so that employees can confidentially report wrongdoing. Make sure that there is no retaliation against whistle-blowers. View whistle-blowing as beneficial to the company because it allows ethical lapses to be addressed.

B Lab certification is mandatory for companies that wish to incorporate as benefit organizations.

False

Which of the following statements is true of B Lab certification for benefit corporations?

It helps companies avoid unintentional greenwashing.

After reviewing AMC's code of ethics your team discovers it hasn't been updated in 15 years. The current document does not address email protocol, whistle-blowing procedures, or social media use among other things. You decide that your team must create a new code of ethics for American Motors as well as suggest a new decision making model for the corporation Which approach do you suggest AMC use to guide its decision making?

Make sure that decisions are made to optimize benefits for the greatest number of people.

A toll-free confidential ethics hotline allows employees to report questionable behavior, as well as seek guidance concerning ethical dilemmas.

True

Tasha works on the sales floor at a major electronic retailer. She faces _____________, because she knows that the customer she is working with only needs a basic laptop but the company makes more money when she sells more expensive computers. Plus, she earns a higher commission on the pricier devices

an ethical dilemma

the _____________ of an organization leads the full-time staff of the ethics office and oversees all aspects of ethics and legal compliance.

chief ethics officer

Your organization is planning to open several new stores in a community you have never served before. You and your team are mapping the organization's stakeholders, thinking about the nature and strength of their interest in this expansion. Which of the following stakeholders are primarily concerned with job satisfaction and pay at the new stores?

employees

To be effective, codes of ethics must be supported and ___________ by senior management.

enforced

Greenwashing occurs when a company tries to portray itself as more _________than it actually is.

environmentally minded

Suppose Professor Quinn did tell students that he would be writing his own test questions, and then he used questions from a standardized test bank. His actions would indicate that there was a flaw in the _______________ for the university.

ethical leadership

A certain firm believes in providing its employees the best facilities. It decides to serve imported and expensive Colombian coffee and a variety of continental cuisines in its cafeteria. In this scenario, the firm's decisions and beliefs pertain to the domain of:

free choice.

Your organization is planning to open several new stores in a community you have never served before. You and your team are mapping the organization's stakeholders, thinking about the nature and strength of their interest in this expansion. Which of the following stakeholders are primarily concerned with profitability?

investors

The United States, and indeed almost all nations, holds that businesses have the right to make money if there's a market for their products and services. It would not be right for the government to take the ability to earn a profit away from me or my company.

justice approach

As one of the top managers at DropLabs, Henry ensures that all his employees are given the right to speak freely with their managers and higher-ups to voice their concerns. He also ensures that employees are not monitored on days they are not at work. Henry believes that employees are most productive when they are allowed to choose the projects they want to work on, provided they have the skill set and the experience to perform the job. In the context of the various ethical decision-making approaches, Henry's beliefs and actions are consistent with those asserted by the:

moral-rights approach.

Most professors and publishers will tell you that there is nothing unethical about using prepublished test banks. But suppose that the University of Central Florida decided to tell their professors explicitly that using prepublished test banks is unethical at UCF and that any professor who uses such test banks will be fired for doing so. This information would be found in the university's code of ethics, more specifically in a

policy-based statement .

When nearly all Americans in a recent survey said that they believe executives base decisions primarily on what will advance their careers, the survey respondents were indicating ____________ ethics in business management.

serious concerns about

In the context of ethics, research has shown that people will work harder and more effectively under _____, in which leaders put others' interests and needs above their own.

servant leadership

Customers, creditors, suppliers, and regulatory authorities are all examples of an organization's ______________ if they have an interest in that organization.

stakeholders

Organizations with a high corporate environmental performance rating are likely to have high _____________

sustainability

The corporate environmental performance measure used in this research assesses an organization's _______________

sustainability

When managers use environmental and social impacts as criteria in all their decision making, ______________ is an important part of their philosophy.

sustainability

Joe wants consumers and farmers, as well as "the entire planet," to be "healthy and well." Debra also talks about "doing good while doing well." Joe and Debra use ____________ to measure Theo Chocolate's success.

the triple bottom line

When a company like FedEx Kinko's measures its performance in terms of impact on people, impact on the planet, and profitability, it is using _______________ to evaluate social, environmental, and financial performance.

the triple bottom line

As a manager, I have to think about the interests of a large number of stakeholders. While a few individuals may be concerned about Facebook's privacy policies, far more people benefit from those same policies because they don't have to see a bunch of ads that aren't relevant to them.

utilitarian approach

Some people view Edward Snowden, who in 2013 revealed ethically questionable surveillance programs by the U.S. government, as a heroic _____________ , while others view him as a traitor to national security.

whistle-blower

Which of the following statements does not describe a low level of moral development?

A person takes responsibility and holds others accountable.

A popular clothing company decides to source cotton only from farmers who employ environment-friendly farming methods, avoiding the use of chemical pesticides. The company announces this decision through the press and social media. Which of the following is the most likely result of the clothing company's actions?

An increase in sales and customer numbers

The way Professor Quinn chose to handle this situation illustrates the difficulty of dealing with ethics violations. Listed as follows are several ways that corporations try to encourage ethical behavior in their employees. Which of these techniques do you see used in this scenario? Check all that apply.

Establishing a code of ethics Referring ethical dilemmas to an ethics committee

Starbucks elected to pay higher prices to coffee growers who meet a list of quality standards that impact social, environmental, and economic standards. Which part of the triple bottom line does this impact?

Financial Performance

Amy wants to go to a concert with a few of her friends. She asks her mom for permission, who says, "If you save up enough money for the ticket, you can go." A few days before the concert, Amy's mom listens to the band's CD and is shocked by the lyrics. She tells Amy, "This is nothing but vile profanity, and you are not going to that concert!" Amy decides to go to the concert anyway and tells her mom that she will be studying at a friend's house that night. Did Amy do the right thing? Which of the following responses best represents reasoning from the postconventional level?

I think that Amy made the right choice. She and her mom made a deal and, unless there was some risk of actual physical danger, that deal should be honored.

Which of the following statements does not describe a high level of moral development?

Individuals behave in such a way as to obtain money, power, or privileges

Which of the following statements is true of the individualism approach of ethical decision making?

It is easily misinterpreted to support immediate self-gain.

Which of the following statements are consistent with the findings of Slater and Dixon-Fowler? Check all that apply.

People with MBAs are more likely to lead a sustainable organization than people without MBAs. Sustainability is positively related to CEO education.

In the context of ethics, which of the following sets of parameters constitutes the triple bottom line that is used to measure an organization's sustainability performance?

People, planet, and profit

In handling the ethics problem in his class, Professor Quinn acted as an ethical leader by supporting and enforcing the ethical statement in his syllabus. But Professor Quinn also made some mistakes in helping his students to act ethically. Which of the following actions helped to reduce the likelihood that Professor Quinn's students would act ethically in the future?

Providing ethics training only to students who admitted to cheating Punishing the entire class when an ethical violation occurred

In the context of ethics, which of the following is a characteristic of managers who are "givers"?

They encourage others to think for themselves.

Which of the following statements is true of individuals at the postconventional level of ethical maturity?

They will disobey rules or laws that violate their internal set of values.

A CEO says, "Our company needs to be profitable so we can continue to employ people and deliver a return on investment to our shareholders. Our company also needs to obey the law, and it needs to treat all its stakeholders fairly." This CEO is describing __________ policy.

a corporate social responsibility

If you sue your company because you should have been paid overtime and were not, and the court awards you back pay, this is an example of _________.

compensatory justice

At the end of each day, Panera Bread restaurants donate leftover bread and baked goods to food banks and local charities. The company is practicing _______________ by helping to advance the social conditions of the communities in which it operates.

conscious capitalism

Victor's reaction to this scenario is: "I think it's okay if she does. Most of the people I know would probably do the same thing if they were in her situation." Which of Kohlberg's levels of development does this response represent?

conventional

The ____________ has rapidly become part of the culture in the United States and elsewhere, as people increasingly consider the impact that an organization has on the environment when deciding whether to buy its products and services.

green movement

Just look at how other social media websites are run. My decisions are completely in line with those of my counterparts at those companies. Facebook is adhering to the industry standard.

practical approach

Jessica is a recent graduate. She begins her first job at a publishing house as a trainee editor. Jessica's manager is a highly authoritative person who closely monitors her performance. Jessica believes that if she obeys her manager's instructions, she can avoid harmful personal consequences. In the context of ethics, Jessica is at the _____ of moral development.

preconventional level

Your friend, Patrick, just told you that he is copying essays he finds on the internet and turning them in to the professor as his own work. You are confronting __________ because Patrick is committing plagiarism but school regulations do not require you to report him.

an ethical issue

Which of the following stakeholders are primarily concerned with the new stores' location and prices of goods in the stores?

Customers

Dell computers provided computer recycling in Europe because it was required by law by the European Union. Dell did not offer this same practice in the United States. Which part of the triple bottom line did this impact?

enviormental performance

The corporate environmental performance rating is a measure of sustainability. Select the best definition for a sustainable organization.

An organization that meets the needs of current and future generations by protecting the environment.

Which of the following statements are consistent with the findings of Slater and Dixon-Fowler? Check all that apply.

An organization's CEP rating is positively related to whether or not the organization's CEO has an MBA. People with MBAs are more likely to lead a sustainable organization than people without MBAs.

Suppose you have been appointed Director of a local community outreach program. Fresh Start Rescue Mission is a shelter for men, women, and children and offers homeless assistance, job training, meals, and addiction programs in Chicago, Illinois. Founded in part with a government grant, Fresh Start relies on individual and corporate donations to provide shelter and services to its' residents. The Board of Directors consists of eight local business leaders. Their role is to determine the mission and purpose of Fresh Start, conduct strategic planning for the organization, and monitor Fresh Start's programs and services among other responsibilities. Fresh Start also depends on a large network of community volunteers to help prepare and serve meals. Recently there has been some disagreement among the stakeholders of the organization. At their last meeting, the board recommended that Fresh Start terminate any faith-based programs at the rescue mission. As the director, you argued that the majority of your volunteers at the mission were from local churches and you were concerned they may no longer volunteer if they could not conduct their faith-based programs. A month after the cancellation of these programs, your volunteer base had dropped and monetary donations from local churches had dropped, as well. Fresh Start program participants were split in opinion on whether the programs had been helpful for them. As director, how would you respond to the conflict among the different stakeholders of Fresh Start?

Build trust-based relationships with stakeholders, so if problems arise in the future they trust your decision Conduct stakeholder mapping to identify and prioritize the key stakeholders related to this issue

Which of the following statements is true of codes of ethics of an organization's values?

Codes of ethics state the values or behaviors expected and those that will not be tolerated.

If a person has a high need for success or approval, which of the following actions would be taken?

Conforming to the expectations of good behavior as defined by others

A(n) __________is a for-profit organization that has a stated purpose that includes creating a material positive impact on society; is required to consider the impact of all decisions not only on shareholders but on employees, the community, and the environment; and voluntarily holds itself to high standards of accountability and transparency

benefit corporation

An organization's investors and shareholders, employees, customers, and suppliers are considered its ___________, in contrast to human rights activists, environmental organizations, and the communities where it does business.

primary stakeholders

It has now been one year into your team's audit into AMC's unethical actions. Your team is convinced that the CEO and other top-level executives and engineers knew the repercussions of their decisions and failed to act. The NHTSA has determined that 124 deaths have been linked to AMC's faulty ignition switch and are now launching a full investigation. Your team must now provide American Motor Corporation's board of directors recommendations on their next steps. Which of the following would you recommend

Your team recommends that American Motor Corporation takes full responsibility for the deaths of the 124 victims. The board of directors should terminate the current CEO as well as any other top-level executives who had responsibility in this matter. In addition, the board should hire a chief ethics officer who will oversee all aspects of the company's ethical and legal compliance. Finally, AMC should write a new code of ethics which addresses the company's new ethical standards as well as whistle-blowing procedures.

Someone who says, "Concepts like what's 'good' or what's 'right' are too abstract for me. I just look at how others in my position behave and make sure I could explain my actions to my kids," is using the ___________ approach to ethics.

practical

An energy company is seeking to build a pipeline across multiple Canadian provinces and U.S. states. Though _________, managers identify the people interested in the company's activities and prioritize them by their impact on and interest in the pipeline project.

stakeholder mapping