Chapter 5 smart book

Who among the following are most likely to be considered the external stakeholders of a firm? (Check all that apply.)

Customers suppliers

According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making?

Favor hiring and promoting of people with a sense of personal ethics. Build an organizational culture that values ethical behavior. Implement decision-making processes that consider ethical aspects of business decisions.

The theory that states that businesses should not incur social expenditures unless required by law or required for the efficient operations of a business is the _______.

Friedman doctrine

What was taking place in South Africa when the apartheid system was dominant?

There was mandated segregation between whites and nonwhites.

Our personal ethics tell us it is wrong to cheat on a test. Conversely, it is right to

accept responsibility for your actions.

Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way.

algorithms

A policy of racial segregation and political and economic discrimination against nonwhites in South Africa was known as the

apartheid system

Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a

code of ethics

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices and regulations.

Ethical issues arise in international business when

environmental regulations in host nations are less stringent than those in the home country.

Scandinavia scores high on the individualism and uncertainty avoidance measures of societal culture. According to Hofstede's dimensions of societal culture, Scandinavia is more likely to engage in ______ business behavior than countries which score high on masculinity and power distance measures.

ethical

Individuals or groups who work for or own the business are referred to as ______ stakeholders.

internal

A(n) ______ distribution is one that is considered fair and equitable.

just

Giving people that which they are due is an example of a(n) ______ distribution.

just

The basic principles and values that govern interactions between individuals are known as

personal ethics

What are four of the determinants of ethical behavior?

personal ethics organizational culture societal culture leadership

As demonstrated by the Nike example in the text, which working conditions situation is generally MOST preferred?

requiring good conditions in home and foreign operations even when this results in a smaller profit margin

Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are known as ______ theories.

rights

According to Milton Friedman, what is the social responsibility of a business?

to increase profits

True or false: According to the rights theories, human beings have fundamental rights and privileges that transcend national boundaries.

true

True or false: Business people may behave unethically simply because they forget to ask themself whether the decision or action they are making is ethical.

true

True or false: The decision-making process is one of the determinants of ethical behavior.

true

Jennifer doesn't understand why the management team decided to continue supporting the supplier in India when it was obvious that a better product at a better price was available from a supplier in Indonesia. According to the text, what is the best starting point to understand this decision?

understand the process the management team uses to makes decisions

TimeTurner Corp. is a company based in the United States that manufactures luxury wrist watches. By western standards, if the company uses sweatshop labor to make these watches it is most likely to be considered

unethical

Heidi told her husband that there was no possible way she could meet her monthly sales goal now that her manager had doubled it. She decided the only way to make the new goal was to add 5% to every sales order and hide this cost under "personal needs" when she submitted her report. What is causing Heidi to act in this unethical manner?

unrealistic performance goals

The managers of ABC Manufacturing are struggling to meet their increased quota. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of

unrealistic performance goals

______ ethics measure actions on a cost-benefit scale.

utilitarian

Which ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people?

utilitarianism

______ are situations where none of the available alternatives seems morally acceptable.

ethical dilemmas

True or false: Organizational culture refers to the system used to create job levels and hierarchies within a company.

false

True or false: Pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions.

false

Which act outlaws the payment of bribes to foreign government officials to gain businesses?

foreign corrupt practices act

After US companies objected that the FCPA would put them at a competitive disadvantage, the Foreign Corrupt Practices Act was eventually amended to allow for _____.

grease payments

Which of Hofstede's dimensions are likely to be found in nations where corruption is epidemic?

high power distance

Organizational _____ is the name given to the values and norms that are shared among employees of an organization.

culture

Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way?

Rights theories Rawl's theory of justice

Sharon is visiting her company's manufacturing subcontractor in Pakistan. She is disturbed when she notices children working on the machinery with no air conditioning and little access to water, but she also knows these children are probably supporting their families. This is an example of a(n) ______.

ethical dilemma

Young children are permitted to work in the manufacturing of soccer balls in some countries, but this would not be legal in the United States. Yet, a company wants to sell these soccer balls in the United States. This is one example of a(n) ______.

ethical dilemma

What is an accurate description of developed nations in terms of the environment?

They have more substantial environmental regulations.

Which leader behavior is most likely to promote a strong ethical culture in an organization?

The boss who consistently demonstrates strong personal ethics in all of his dealings with clients.