SmartBook Chapter 3

Select all the statements that accurately represent Hurley's views on the most important crisis in business today.

In business today, there is a crisis of trust. What is important is that organizations deliver every day on what they promise. Customers may think certain organizations are ethical, but that does not mean they should trust them.

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

Which of the following are true of an ethical dilemma in an organization? (Select all that apply.)

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.

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

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

Millennials

Economist Paul Samuelson's view on corporate social responsibility was that

Organizations must be concerned with both social welfare and corporate profits.

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.

Which of these organizations are considered special-interest groups? Choose all that apply.

People for the Ethical Treatment of Animals Mothers Against Drunk Driving

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

The act of contributing money in order to benefit society is referred to as _____.

Philanthropy

A company's triple bottom line represents which three aspects?

Profit Planet People

Suppliers are people or organizations that

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

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

Social

Which of the following aspects of a company's performance are measured by the company's triple bottom line? (Select all that apply.)

Social Environmental Financial

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

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

Special-interest

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

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

Stakeholders

Select four groups that make up the task environment.

Strategic Allies Local Communities Government Regulators Distributors

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?

Task General

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

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

Technological

Which of these are forces within an organization's general environment?

Technological Sociocultural Political-Legal Demographic Economic International

According to Fordham professor Hurley, there is not a crisis of ethics in business today but a crisis of _____.

Trust

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

Union

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

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

The purpose of a code of ethics is to

clearly state top management's expectations for all employees

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.

What are actions your book suggests that individuals can take to become more ethical consumers?

provide your own bags at the grocery store purchase fair trade items don't purchase items that aren't ethically made or sourced don't buy knockoff items

In Samuelson's view, CEOs should support corporate social responsibility because it.

provides a favorable public image promotes sales increases employees' attachment to the firm

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

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

Allies

What statement regarding ethical climates is TRUE?

An ethical climate significantly affects the frequency of ethical behavior.

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

Climate

Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as _______.

Climate change

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

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

Competitors

Running a company and protecting the interests of owners and other stakeholders is known as _____.

Corporate governance

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

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

A person or an organization that helps another organization sell its goods and services to customers is called a(n)

Distributor

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

Economic

An organization's internal stakeholders consist of

Employees, owners, and the board of directors.

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

An organization's standards of right and wrong that influence employee behavior are referred to as _______.

Ethics; Reason: Morals, in contrast to ethics, generally refer to an individual's internal standards of right and wrong.

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

External stakeholders

Purchasing _____ items increases the chances that your money will help provide a decent wage for the people who made them.

Fair trade

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

False: Reason: There is significant variance between ethics among countries and cultures.

True or false: Unlike generations before them, Millennials have little concern for the environment and are more interested in profit over planet.

False; Reason: Millennials are more concerned about a company's effect on society than profits.

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

Which of the following economic forces within a company's general environment affect the company's performance? (Select all that apply.)

Bank interest rates The unemployment rate