Wk 6: Ch. 4 Ethics and Social Responsibility

What must society do first in order to punish undesired behavior? Set up ethical guidelines. Pass laws. Enhance lobbying guidelines. Eliminate bureaucracies.

Pass laws

Select all that apply. How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business? There would be more product produced and released to the marketplace. Efficiency and effectiveness would increase. There would be more non-productive activity. Efficiency and effectiveness would decrease. Additional bargaining will be needed to conclude contracts.

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

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. Ture. False.

True

Non-discriminatory hiring, promotion, and reward systems are a means of acting ethically toward ______. suppliers. employees. distributors. stockholders.

employees

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. legal. religious. values.

ethical.

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. creditors. stakeholders. top management.

stockholders

Why is it important for a company to be involved in global trade? Because employees will be happy. Because the company needs synergy with its community. Because the company affects the prosperity of a society, a nation, and the global economy. Because the community wants to order products from other countries.

Because the company affects the prosperity of a society, a nation, and the global economy.

When companies make ethical and socially responsible decisions on behalf of their employees, what is the result? Companies make decisions to standardize their practices nationally and globally. Companies take care of their own, but risk causing damage to society as a whole. Companies make decisions that protect, enhance and promote the welfare and well-being of their stakeholders. Companies risk sacrificing quality and timeliness of goods and services production.

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

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

Ethical scandals concerning executive pay occur only in for-profit companies. True. False.

False

Societal ethics are standardized from country to country in nations throughout the world. True. False.

False

What three company resources are managers responsible for to increase performance and, as a result, the company's stock price? Environmental, organizational, and communal. Internal, external, and manufacturing. Financial, capital, and human. Employees skills, training, and upward mobility.

Financial, capital, and human

Select all that apply. What are the advantages of social responsibility? If all organizations adopt a caring approach, a climate of caring will pervade the wider society. The more organizations act in socially responsible ways, the better the quality of life will be for the country as a whole. It can improve a company's reputation. Government will no longer have to pass laws to regulate business.

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

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 no time at all. It would take the same amount of time. It would take less time. It would take more time.

It would take more time.

What would be an accurate statement regarding ethics and legality? Just being legal does not make an action ethical. An ethical belief remains static over time. Laws do not sanction rights or abilities. Laws remain static over time.

Just being legal does not make an action ethical.

Drag and drop the descriptive examples against the corresponding types of social responsibility approach. Obstructionist Defensive Proactive Accommodative

Obstructionist: When managers knowingly seek to hide evidence from the public, such as that asbestos and/or tobacco causes lung cancer. Defensive: When managers are granted large stock options and bonuses even as company performance declines rapidly. Proactive: When managers seek ways to reduce operating costs to prevent layoffs to enable them to keep promises they make to employees. 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

What is the outcome when ethical values and norms become a part of an organization's culture? Organizational members are encouraged to take self-interested risks. Organizational members will always behave ethically. Organizational members resist self-interested action. Managers tend to pursue self-interested actions.

Organizational members resist self-interested action.

A specific behavior that is deemed illegal is not necessarily unethical. True. False.

True

Stockholders buy shares of companies and thereby become owners. True. False.

True

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. suppliers. distributors. government regulators. employees.

distributors

Customers are frequently regarded as the most critical stakeholder group for the company's success because ______. employees are frequently customers as well, doubling the importance of the customer stakeholder group. if a company cannot attract customers to buy its products, it cannot stay in business. customers are the most demanding stakeholder group. it needs a large customer base to maintain its reputation.

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

The stakeholder group responsible for choosing the strategic goals that the company should pursue to benefit all of the company's stakeholders is the ______. managers. government regulators. board of directors. stockholders.

managers

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 $10 million. more than $1 million. less than $20,000. less than $50,000.

more than $1 million

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

If a medical professional were to prescribe a medication because of the benefits he or she would receive from the pharmaceutical company, this would defy the profession's ______. ethical mandate. occupational ethics. organizational ethics. practical ethics.

occupational ethics

Select all that apply. The four main determinants of differences in ethics among people, employees, companies, and countries are organizational ethics: occupational ethics. societal ethics. individual ethics. religious ethics.

occupational ethics. societal ethics. individual ethics.

Select all that apply. 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. ethical credo. organizational reputation. organization's code of ethics. organizational ethics.

organization's code of ethics. organizational 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

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 ______. organizational culture. social responsibility. management structure. code of ethics.

social responsibility.

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

Which of the following is not an advantage of increased social responsibility? Faster promotions for employees. Improved organizational reputation. Improved quality of life for stakeholders. Increased business and rising profit.

Faster promotions for employees

Which stakeholders have a claim on and a stake in a company because of the productive resources they provide? Educators. Stockholders. Politicians. Executives. Managers.

Stockholders. Executives. Managers.

A company within a community contributes to its local ______. customs. culture. economy. population.

economy.

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

individual

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

laws.

When managers resist the temptation to act in their own self-interest, they reinforce ethical ______. organizational norms. part of the mission. rules. standard operating procedures

organizational norms.

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. knowledge and power. feelings about health and safety issues. concerns about work.

personal standards and values

The ______ rule states that ethical decisions are those that produce the greatest good for the greatest number of people. practical. utilitarian. moral rights. justice.

utilitarian

What is the rule in which ethical decisions are made in order to spread the greatest good for the greatest number of people? The ethical rights rule. The equal shares rule. The moral rights rule. The utilitarian rule.

The utilitarian rule

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. defensive; obstructionist. proactive; defensive. accommodative; defensive.

accommodative; proactive

Managers and employees must work to increase _____ in order to create loyal customers and attract new ones. efficiency and effectiveness. unionization and cohesiveness. neutral word of mouth. frequent marketing campaigns.

efficiency and effectiveness

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

organizational

When issues of fairness, justice, and equality are governing forces ensuring the rights of every individual, ______ are the standards being practiced. ethical beliefs. organizational ethics. ethical credos. societal ethics.

societal ethics