chapter 4 management

someone who is both a moral person and a moral manager that influences others to behave ethically is called a

ethical leader

the percentage of americans who trust business had dropped to

53

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

the concept of sustainable growth can be applied in

as a framework for organizations to use in communicating to all stakeholders, as a planning and strategy guide, as a tool for evaluating and improving the ability to compete

how should organizations identify social issues in which they should invest resources

as part of environmental scanning and the strategic planning process

which type of risk includes concerns such as climate change, ozone depletion, acid rain, and nuclear hazards

industrial pollution

which of the following is considered a level 1 cost and is thus less damaging?

government fines and penalties

which of the following are subjects commonly addressed in ethics codes

employee conduct, community and environment, shareholders, customers, suppliers, and contractors, political activity, and technology

_____ analysis focuses on the extraction of raw materials, product packaging, transportation, and disposal

LCA

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

Life cycle analysis (LCA)

____ are cultural standards of acceptable and expected behavior

Norms

The shareholder model of social responsibility holds that managers are agents for the investors/owners of the organization and are duty bound to maximize business value

TRUE

a company is losing market shares and realizes it must increase efficiency and cut cost in order to survive and succeed, it decides to shut down several underperforming facilities in the US and open factories overseas where cost are much lower. this decision will allow the company to compete more effectively in the global market and result in more job opportunities and profit 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

Virtue

US companies lose about 5-6 percent of their annual sales to fraud, but the losses are __ at organizations with a mechanism for reporting misconduct

less than half that

the sarbanes oxley act requires that public companies periodically disclose if they have

a code of ethics for senior financial officers

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

astroturfing

there are three requirements to ethical decision making. The one defined as "realizing that the issues has ethical implications" is moral

awareness

which of the following are criteria that should be used when evaluating your ethical duties?

be proud to see the action reported in newspaper, build a sense of community among those involved, generate the greatest social good, willing to see others take the same action when you might be the victim, it doesn't harm the "least among us", doesn't interfere with the right of all others to develop their skills to the fullest

there are many ethical challenges facing US manger today, identify in the list below some of the ethical dilemmas managers are currently facing

brands, CEO pay, commercialism in schools, religion at work, sweatshops, wages, executive compensation

the moral principles and standards that guide behavior in the business world are referred to as

business ethics

an individuals level of moral judgement can be classified using kohl bergs model of

cognitive moral development

the relationship between corporate social performance and an organizations financial performance is

complex

company mechanism typically designed by corporate counsel to prevent, detect, and punish legal violations are called ____ ethics programs

compliance based ethics programs

when bribery became illegal in germany, the german company siemens

continued to engage in bravery but was secretive about it

the policies and practices that reflect business responsibility for some of the wider societal goods, and are a reflection of the social imperatives and social consequences of business success are called

corporate social responsibility

which of the following are statements people commonly use to rationalize unethical behavior

denying responsibility, denying injury, denying the victim, and appealing to higher loyalties

the _____ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligation to investors, including the possible offering of certain products to needy consumers at a reduced price

economic

organizations take specific actions to adhere to the guidelines established by the US sentencing commission, which of the following are actions an organization should take when trying to follow updated guidelines

establish written standards, assign responsibility, exclude anyone who violates the standards, provide training in ethics to all employees, give employees incentives for complying and consequences for violating the standards, respond with consequences and more preventive measures if criminal conduct occurs

as opposed to legal responsibilities, expectations that are not written as law are termed ______ responsibiltiies

ethical

which of the following describes the ethical system of egoism?

ethical behavior is that is based on acting on individual self interest

the processes in an organization where decisions are evaluated and made on the basis of right and wrong is called

ethical climate

a ___ 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

an ethics code, an ethow should organizations identify social issues in which they should invest resources

ethics program

which of the following are danger signs that an organizations may be allowing or encouraging unethical behavior?

failure to establish a written code of ethics, excessive emphasis on short term revenues over long term considerations, treating ethics only as a legal issue or public relations tool

which of the following are danger signs that an organization may be allowing or encouraging unethical behavior

failure to establish a written code of ethics, treating ethics only as a legal issue or public relations tool, excessive emphasis on short-term revenues over longer term considerations

business view environmental issue as a no win situation: either you help the environment and hurt your business or you help your business and hurt environment

false

ethical issues are only found in our personal lives

false

the most effective code of ethics is one that is similar to those of its competitors

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

fase

which of the following are characteristics of ecocentric management

has as its goal the creation of sustainable economic development and improvement quality of life worldwide for all organizational stakeholders

according to the sarbanes oxley act, companies must have more ___ on the board of directors

have more independent board directors, adhere strictly to accounting rules, having senior managers personally sign off on financial results,

_____ concerns the value of each person as an end, not as means, to the fulfillment of others purposes

human dignity

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

individual

what is the difference between integrity based ethics programs and compliance based ethic programs?

integrity based programs instill in people personal responsibility for ethical behavior

when a company and its people govern themselves through a set of guiding principles that they embrace they are using _____

integrity- based ethics program

what led to the creation of the caux principles?

international executives felt the need to establish global, universal ethical principles for business

which of the following factors make an ethics code effective?

involve those who have to live with the code in writing it, focus on real life situations employees can relate to, keep it short and simple so it is easy to understand and remember, write about values and shared beliefs that are important and that people can really believe in, set the tone at the top having executives talk about and live up to the statement

which of the following are some of the important issues surrounding corporate social responsibility

it includes legal ethical and philanthropic responsibilities, - there are contrasting views of CSR one of which states that the primary responsibility of management is to increase profits for the shareholders,- as members of society, managers should consider the needs of society and people

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

local, state, federal, and relevant international laws are ____ responsibilites

legal

which of the following are true about ethical lapses

managers often hire people who are like them who think they are immune to conflicts, most people have uncoils biases that favor themselves at their own group

behaving ethically requires which of the following

moral awareness, moral judgement, moral character, including the courage to take actions consistent with your ethical decisions

an ethical leader is

moral manager, personally moral, influences others to behave ethically

which of the following goals of transcendent education is described as viewing success not merely as a personal gain, but also a common victory

mutuality

organizations can use drop boxes, telephone hotlines, and -- to allow customers and employees to submit information about ethical problems within the company

online systems

a code of ethics is written and tailored to reflect the philosophies of the ___ usually with regards to workplace conduct, technology, and its stakeholders and environment

organizations

factors in becoming an ethical leader

pay being seen by others as a moral person, influencing others to behave ethically, being seen by others as a moral manager

for a company's ethics code to be effective it must be written by

people from all levels of the company

which of the following are ethical issues that managers encounter with the use of technology in the work place

personal use of a business computer, disclose of confidential information, computer users introducing computer viruses

additonal behaviors and activities that society finds desirable and that the business also values are called

philanthropic responsibilties

Which type of environmental impact are organizations striving for today

positive

In kohl bergs model of cognitive moral development, what categories are included

preconventional, conventional and principled stages

which of the following explains how a code of ethics influences the ethical climate of an organization

promotes positive imagine and helps create a strong ethical culture

which of the following is the final step of ethical decision making?

propose a convincing moral solution

ethical behavior according to how others behave is the ethical system of

realativism

when making an ethical decision, in order to define the complete moral problem you must understand all the moral standards and

recognize all moral impacts

while the US managers believe that whistleblower hotlines are effective at reducing unethical behaviors, managers in china and central europe do not, this is an example of

relativism

which of the following would create a climate conducive to unethical behavior

responsiveness to shareholders at the expensive of other stakeholders

why are companies incorporating environmental values into their competitive strategies and design of their product

satisfy consumer demand, react to a competitors action, meet request from customers or suppliers, comply with guidelines and create a competitive advantage

an obligation toward society assumed by business is called corporate ___ responsibility

social

what is the relationship between corporate social performance and financial success?

socially responsible actions can have long term benefits, as well as offer business opportunities and improve profitability, it is highly complex: socially responsible organizations are not necessarily more or less successful in financial terms

what is the relationship between corporate environmental performances and probability?

some research shows has shown a positive relationship with improved profitability and corporate environmental performance

the _____ model assumes that managers are obliged to look beyond profitability to help their organizations succeed by interacting with groups that have a stake in the organization

stakeholder

the economic growth and development that meets presents needs without harming the needs of future generations is called ___ growth

sustainable

which of the following are fundamental sources of risk in modern society

the excessive production of hazards and ecologically unsustainable consumption of natural resources

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

they complete cost benefit analysis to identify actions that will maximize profits while satisfying the demand for corporate social responsbility

in order to report whistleblowers identities, ethical reporting systems are often administered by

third party organizations

which of the followeng are danger signs that an organization be allowing

treating ethics only as a legal issue or public relations tool, failure to establish a written code of ethics, excessive emphasis on short term revenues over longer term considerations

many people who believe that they are ethical decision makers have unconscious biases

true

when implemented well, a code of ethics for senior officials in a company can change a company ethical climate and true encourage ethical behavior

true

organizations see ethics as an important issue for all the following reasons

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

ethics scholars point to various major ethical system as guides

universalism, egoism, utilitarianism, relativism, virtue ethics

the moral philosophy that directly seeks the greatest goods for the greatest number of people is

utilitarianism

veil of ignorance

when you make decision about a policy that will benefit or disadvantage some groups more than others

kyosei is concerned with

working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition