Final (Ch.6-11) Management Ethics

2) exaggeration

"Puffery" is an example of which of the following deceptive or misleading advertising techniques? 1) ambiguity 2) exaggeration 3) psychological appeals 4) concealed facts

Dependence Effect

"as a society become increasingly affluent, wants are increasingly created by the process by which they are satisfied

Caveat Emptor

"let the buyer beware"

FTC vs. Standard Education

1937 case that moved the law away from the reasonable-person standard

US vs. O'Hagan

1997 case, "to insure honest securities markets and thereby promote investor confidence"

Grease Payments

A bribe or extorted money, usually relatively small in amount, provided to a low-level government official or business person, in order to expedite a business decision, shipment, or other transaction

3) can be upset by human behavior

An ecosystem 1) should never be tampered with. 2) can survive any human intervention. 3) can be upset by human behavior. 4) is independent of all other ecosystems.

2) free and nearly limitless

Business has considered the environment to be 1) a scarce commodity. 2) free and nearly limitless. 3) a limited supply. 4) costly.

1) advertising rarely gives consumers much useful information.

Critics of advertising generally agree that 1) advertising rarely gives consumers much useful information. 2) brand loyalty increases price competition. 3) restrictions on advertising violate the moral rights of advertisers. 4) advertising can only influence us if we want it to.

2) workers essentially dislike work and will do everything they can to avoid it.

Douglas McGregor rejects Theory X, which holds that 1) when explained properly, everyone will favor drug-testing programs. 2) workers essentially dislike work and will do everything they can to avoid it. 3) workers basically like work and view it as something natural and potentially enjoyable. 4) sexual harassment is a form of discrimination.

3) the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer.

Due care is 1) based on the principle of caveat emptor. 2) based on the principle "let the buyer beware." 3) the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer. 4) based on the principle of absolute liability.

3) millions

Every year ____ of Americans require medical treatment from product related accidents. 1) tens of thousands 2) hundreds 3) millions 4) hundreds of thousands

2) equally applied

Fair personnel policies and decisions must be based on criteria that are clear, job related, and 1) partial toward friends. 2) equally applied. 3) ignore personality. 4) minimize nepotism.

1) to equalize their relationship with their employers

Groups of 18th century skilled artisans formed secret societies for two basic reasons. Which of the following is one of those reasons? 1) to equalize their relationship with their employers 2) to distinguish themselves from carpenters and shoemakers 3) to gain control of the German government 4) to avoid having to set minimal standards for their crafts

4) Consumer Product Safety Commission.

In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the 1) Securities and Exchange Commission. 2) Federal Drug Administration Agency. 3) Fair Packaging and Labeling Commission. 4) Consumer Product Safety Commission.

1) when an organized body of workers withholds its labor to force the employer to comply with its demands.

In union terms, a direct strike occurs 1) when an organized body of workers withholds its labor to force the employer to comply with its demands. 2) when union members and their supporters refuse to buy products from a company being struck. 3) when workers who have no particular grievance of their own and who may or may not have the same employer decide to strike in support of others. 4) when people refuse to patronize companies that handle products of struck companies.

Proprietary Data

Internally generated data or documents that contain technical or other types of information controlled by a firm to safeguard its competitive edge

4) lack of opportunities to be one's own boss.

One of the three chief sources for dissatisfaction in the workplace is 1) lack of opportunities to be promoted faster. 2) lack of opportunities to have a company vehicle. 3) lack of opportunities to have one's own office. 4) lack of opportunities to be one's own boss.

1) express and implied

People generally speak of two kinds of warranties. What are these two kinds of warranties? 1) express and implied 2) positive and negative 3) limited and unlimited 4) legal and moral

2) must be respected if we are to function as complete, self-governing agents.

Privacy 1) is an absolute value. 2) must be respected if we are to function as complete, self-governing agents. 3) is something that employees today don't care about. 4) is guaranteed by Article 3, section 3, of the Constitution.

2) employers must make "reasonable accommodations" for disabled workers.

Since Congress passed the Americans with Disabilities Act in 1994, 1) all disabled persons must be hired. 2) employers must make "reasonable accommodations" for disabled workers. 3) employees must try to "undo" their disabilities. 4) employers must be careful to "screen" out disabled persons.

2) is being a free rider.

Some environmental regulations (like forbidding the burning of coal in cities) benefit each and every one of us because the air we all breather is cleaner. If an individual ignores the regulation and burns coal, while others obey the regulation, then he or she 1) violates our right to a livable environment. 2) is being a free rider. 3) displays an ignorance of ecology. 4) creates an externality.

3) ambiguity.

Terms like "can be," "as much as," and "help," are examples of 1) concealment of facts. 2) truth in advertising. 3) ambiguity. 4) consumer confidence.

4) that individual pursuit of self-interest can sometimes make everyone worse off.

The "tragedy of the commons" is 1) the lack of a commons¾a common place where people can come together. 2) the failure to appreciate what we have in common with other species. 3) that cost-benefit analysis involves value judgments that we do not share in common. 4) that individual pursuit of self-interest can sometimes make everyone worse off.

3) attention and recognition can enhance worker productivity and motivation.

The Hawthorne effect shows that 1) quality control circles are important. 2) middle managers are affected by the satisfaction and dissatisfaction of the workers they supervise. 3) attention and recognition can enhance worker productivity and motivation. 4) trade-offs have to be made between productivity and quality of work life.

2) prohibits employers from interfering with employees trying to organize unions.

The Wagner Act of 1935 1) established the Food and Drug Administration. 2) prohibits employers from interfering with employees trying to organize unions. 3) guaranteed employers the right of refusing to bargain with union representatives. 4) guaranteed the right to work and outlawed union shops.

1) permitted consumers to sue manufacturers with whom they had no contractual relationships.

The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts 1) permitted consumers to sue manufacturers with whom they had no contractual relationships. 2) adopted the principle of caveat emptor. 3) permitted consumers to sue the retailer from whom they had purchased the product 4) adopted the principle of strict liability.

4) the label and package.

The consumer's main source of product information is 1) testimonials of other customers. 2) billboards. 3) word of mouth. 4) the label and package.

1) to persuade people to purchase the product.

The goal of advertising is 1) to persuade people to purchase the product. 2) to provide information about goods and services. 3) to provide information about prices. 4) to subsidize the media.

3) interviewing.

The hiring process needs to include screening, testing, and 1) safety awareness. 2) eliminating candidates. 3) interviewing. 4) job descriptions.

4) fairness.

The key moral ideal in promotions is 1) loyalty. 2) likeability. 3) intelligence 4) fairness.

1) workers are often unaware of the hazards they face on the job

The most accurate statement about workplace safety is: 1) workers are often unaware of the hazards they face on the job 2) employees, not their employers, are responsible for creating a safe workplace 3) in an average year, 150 workers are killed on the job 4) according to experts, industrial accidents "just happen"

3) a poor relationship with their immediate supervisor.

The most common reason that people leave their jobs is 1) low wages. 2) too much overtime. 3) a poor relationship with their immediate supervisor. 4) lousy benefits.

.2) be proactively oriented toward safety.

The proper approach to promote safety is to change the "hidden culture" to 1) pay employees more. 2) be proactively oriented toward safety. 3) hides injuries. 4) refuse to talk openly about safety

2) interesting work; sufficient help, support, and information to accomplish the job; enough authority to carry out the work; and good pay

When employees at all occupational levels are asked to rank what is important to them, the order that put them in is: 1) good pay; enough authority to carry out the work; sufficient help, support, and information; and interesting work. 2) interesting work; sufficient help, support, and information to accomplish the job; enough authority to carry out the work; and good pay 3) sufficient help, support, and information to accomplish the job; interesting work; enough authority to carry out the work,and good pay 4) enough authority to carry out the work; good pay; interesting work; and sufficient help, support, and information to accomplish the job

1) informed consent.

When it comes to obtaining information about employees, a key concept is 1) informed consent. 2) paternalism. 3) economic efficiency. 4) positive externalities.

1) Tropical forests are the earth's richest, oldest, and most complex ecosystems.

Which environmental statement is true? 1) Tropical forests are the earth's richest, oldest, and most complex ecosystems. 2) Because of technological breakthroughs, people living in developed countries put less strain on the environment than do people in poorer countries. 3) There are only about 1000 species of animals left in the world. 4) The United States consumes only its proportional share of the world's irreplaceable natural resources.

1) regulation can take away an industry's incentive to do more than the minimum

Which of the following is a drawback to the regulatory approach? 1) regulation can take away an industry's incentive to do more than the minimum 2) regulation is an incentive to an industry to do more than the minimum 3) regulation does not apply to all equally 4) does not require polluters to use the strongest most feasible means of pollution control.

4) polluted air is a health risk

Which of the following is true concerning our environment today? 1) the Clean Air Act of 1970 has had no beneficial effects 2) animal waste from factory farms is good for the environment 3) the "greenhouse effect" is basically media hype 4) polluted air is a health risk

4) media sensationalism and political posturing can get in the way of sensible answers to the drug problem

Which of the following is true? 1) a company is never permitted to test for legal drugs 2) drugs can't harm employee performance 3) business writers agree that drug testing is more cost effective than voluntary drug assistance programs 4) media sensationalism and political posturing can get in the way of sensible answers to the drug problem

4) The person has a lack of experience.

Which of these is a valid reason for not hiring a potential employee? 1) The person is overqualified. 2) There's a gap in the person's unemployment history. 3) The person dresses poorly. 4) The person has a lack of experience.

1) The Consumer Product Safety Commission has the power to order recalls.

Which statement is accurate in its description of consumer protection? 1) The Consumer Product Safety Commission has the power to order recalls. 2) Statistics show that, in fact, safety regulations rarely succeed in increasing safety. 3) Critics agree that the cost of safety regulations and product recalls are negligible. 4) Safety regulations permit people to choose to save money by purchasing riskier (but less expensive) products

OECD Anti-Bribery Convention

a formal treaty that outlaws bribing public officials in foreign business transactions and sets up review and monitoring mechanisms

Right to a Livable Environment

a human right that is essential for one to fulfill his human capacities

Maternity Leave

a period of absence from work granted to a mother after the birth of her child

Price Gouging

a seller's exploiting a short-term situation in which buyers have few purchase options for a much-needed product by raising prices substantially

Taft-Hartley Act

amended the National Labor Relations Act, outlawed closed shops (hire only union members), and permits individual states to ban union shops (require employees to join the union within a specified time after being hired)

Employment at Will

any side of an employment contract is free to terminate at any time without advance notice or reason

Bona Fide Occupational Qualifications (BFOQs)

are job specifications to which the civil rights law does not apply

Moral Vegetarians

are people who reject the eating of meat on moral grounds

Express Warranties

are the claims that sellers explicitly state

Conflict of Interest

arises when employees at any level have special or private interests that are substantial enough to interfere with their job duties

Job Stress

as the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker

Future Generations

basically our kids/grandkids that we have to consider a livable environment for their future

MacPherson vs. Buick Motor Car

case expanded the liability of manufacturers for injuries caused by defective products

Clean Water Act

congress passed in 1972 which proclaimed the goal of eliminating all water pollution by 1985

Federal Trade Commission (FTC)

created in 1914 as an anti-trust weapon, but also includes protecting consumers against deceptive advertising and fraudulent commercial practices

Day Care

daytime care for the needs of people who cannot be fully independent, such as children or elderly people.

Job Specification

describes the qualifications an employee needs

Position Elimination

designates the permanent elimination of a job as a result of workforce reduction, plant closing or departmental consolidation

Externality/Spillover

disparity between private industrial costs and public social costs

Strict Product Liability

doctrine holds that the manufacturer of a product has legal responsibilities to compensate the user of that product for injuries suffered because the product's defective condition made in unreasonably dangerous regardless of whether the manufacturer was negligent in permitting that defect to occur

Job Screening

ensures a pool of competent applicants and guarantees that everyone has been dealt with fairly

Business gifts and entertainment

giving someone a small gift or taking the person out for a nice meal is a gesture of good will or friendship and can help cement a relationship between two people

National Labor Relations Act/Wagner Act

guarantees employees the right to organize and join unions and to bargain collectively through representatives of their own choosing

Comparable worth

holds that women and men should be paid on the same scale not only for doing the same or equivalent work but also for doing different jobs involving skill, effort and responsibility

Management Styles

how managers conduct themselves on the job

Informed Consent

implies deliberation and free choice

Brown vs. Board of Education

in 1954 was a landmark United States Supreme Court case in which the Court declared state laws establishing separate public schools for black and white students to be unconstitutional

Foreign Corrupt Practices Act (FCPA)

in 1997 this made it illegal for American companies to engage in bribery overseas

disparate impact

in United States labor law refers to practices in employment, housing, and other areas that adversely affect one group of people of a protected characteristic more than another, even though rules applied by employers or landlords are formally neutral

Implied Warranties

include the claim, implicit in any sale, that a product is fit for its ordinary, intended use

Affirmative action programs

includes those policies, practices, and procedures that the contractor implements to ensure that all qualified applicants and employees are receiving an equal opportunity for recruitment, selection, advancement, and every other term and privilege associated with employment

American with Disabilities Act (ADA)

intended to protect the rights of people with disabilities to obtain gainful employment, and it forbids employers from discriminating against employees or job applicants with disabilities when making employment decisons

Pollution Permits

involve giving firms a legal right to pollute a certain amount

Trade Secret

is "any formula, pattern, device, or compilation of information which is used in one's business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it"

Cost-Benefit Analysis

is a device used to determine whether it's worthwhile to incur a particular cost

Equal Employment Opportunity Commission (EEOC)

is a federal agency that administers and enforces civil rights laws against workplace discrimination

Job Discrimination

is a form of discrimination based on race, gender, religion, national origin, physical or mental disability, age, sexual orientation, and gender identity by employers

Civil Rights Act of 1964

is a landmark civil rights and US labor law in the United States that outlaws discrimination based on race, color, religion, sex, or national origin

Free-Rider Problem

is a market failure that occurs when people take advantage of being able to use a common resource, or collective good, without paying for it

Card Check

is a method for employees to organize into a labor union in which a majority of employees in a bargaining unit sign authorization forms, or "cards", stating they wish to be represented by the union

AFL-CIO

is a national trade union center and the largest federation of unions in the United States

Kickback

is a percentage payment to a person able to influence or control a source of income

Psychological Appeal

is a persuasive effort aimed primarily at emotion, not reason

Personality Tests

is a questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup

Disparate treatment

is a way to prove illegal employment discrimination

Subliminal Advertising

is advertising that communicates at a level beneath conscious awareness

Sarbanes-Oxley Act

is an act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations

Environmental Protection Agency (EPA)

is an agency of the United States federal government whose mission is to protect human and environmental health.

Tragedy of the Commons

is an economic problem in which every individual tries to reap the greatest benefit from a given resource

Ecological Economics

is attempting to expand further the boundaries of environmental cost-benefit analysis by calculating the value of an ecosystem in terms of what it would cost to provide the benefits and services it now furnishes us

hostile-work-environment harassment

is behavior of a sexual nature that is distressing to women and interferes with their ability to perform on the job

Firing

is for-cause dismissal

Occupational Safety and Health Administration (OSHA)

is responsible for protecting worker health and safety in the United States

Incentive Approach

is that it minimizes government interference in business and encourages voluntary action rather than coercing compliance, as in the case of regulation

Living Wage

is the amount of money a full-time employee needs to afford the necessities of life, support a family, and live above the poverty line

Due Care

is the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer, who has knowledge and expertise the consumer does not have

Sexual favortism

is the preferential treatment of an employee because that employee granted sexual favors to the employer

Sexual harassment

is unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature

Privacy

is widely acknowledged to be a fundamental right

Job Satisfaction

it is simply how content an individual is with his or her job, in other words, whether or not they like the job or individual aspects or facets of jobs, such as nature of work or supervision

Quantity Surcharges

it occurs when the same physical product is sold in two packs of different sizes and the large size has a higher price per unit than the small one

False Positives

it will falsely identify as liars people who are telling the truth

Reasonable-Consumer Standard

it would prohibit only advertising claims that would deceive reasonable people

Situational Interview

job candidates have to engage in role playing in a mock office scenario

Job Description

lists all pertinent details about the content of a job, including its duties, responsibilities, working conditions, and physical requirements

Regulatory Approach

makes use of direct public regulation and control in determining how the pollution bill is paid

Exaggeration

making claims unsupported by evidence

Civic Activities

means working to make a difference in the civic life of our communities and developing the combination of knowledge, skills, values and motivation to make that difference

Polygraph Tests

measures and records several physiological indices such as blood pressure, pulse, respiration, and skin conductivity while the subject is asked and answers a series of questions

Merchantability

not a promise that the product will be perfect, but it's a guarantee that it will be of passable quality or suitable for the ordinary purpose for which it is used

Quid-pro-quo harassment

occurs when a supervisor makes an employee's employment opportunities conditional on the employee's entering into a sexual relationship with, or granting sexual favors

Horizontal Price Fixing

occurs when competitors agree to adhere to a set price schedule, not to cut prices below a certain minimum, or to restrict price advertising or the terms of sales, discounts, or rebates

Secondary Boycott

occurs when people refuse to patronize companies that handle products of struct companies

Primary Boycott

occurs when union members and their supporters refuse to buy products from a company being struck

Sympathetic Strike

occurs when workers who have no particular grievance of their own decide to strike in support of others

Economics Espionage Act

of 1996 defines the term "economic espionage" as the theft or misappropriation of a trade secret with the intent or knowledge that the offense will benefit any foreign government, foreign instrumentality, or foreign agent

Monitoring of Employees

often gathers personal information without informed consent

Self-Interest

one's personal interest or advantage, especially when pursued without regard for others.

Clean Air Act

passed in 1970 is a United States federal law designed to control air pollution on a national level

Pink-Collar Occupations

performs jobs in the service industry

Right-to-Work States/Open-Shop Laws

prohibit union contracts requiring all employees on a job site to either join the union or pay the equivalent of union dues once hired

Gullible-Consumer Standard

prohibits an advertisement that might mislead someone who is ill informed and naive

Employee Polygraph Protection Act

prohibits most private employers from using lie detectors in the hiring process

Consumer Product Safety Commission (CPSC)

protects the public "against unreasonable risks of injury associated with consumer products"; sets standards for products, bans products presenting undue risk of injury, and in general policies the entire consumer-product marketing process from manufacture to final sale

Wellness Programs

push employees toward healthier lifestyles, are now a common feature of the corporate landscape

Musculoskeletal Disorders

re injuries and disorders that affect the human body's movement or musculoskeletal system

Ecosystem

refers to a total ecological community, both living and nonliving

Whistle-Blowing

refers to an employee informing the public about the illegal or immoral behavior of an employer or an organization

Prudential reasons

refers to considerations of self-interest and the considerations of the interests of others and the demand of morality

Seniority

refers to longevity on a job or with a firm

Due Process

refers to the fairness of the procedures an organization uses to impose sanctions on employees

Ecology

refers to the science of the interrelationships among organisms and their environments

Layoff

refers to the temporary unemployment experienced by hourly employees and implies that they are "subject to recall"

Test Reliability

refers to whether test results are replicable

Test Validity

refers to whether test scores correlate with performance in some other activity; test the skill or ability it is intended to measure

Food & Drug Administration (FDA)

regulates the food and drug market, tests products, and deem these products safe or unsafe for the public

Clean Air Act Amendments of 1990

require further measures be taken to fight smog, acid rain, and toxic emissions

Just Cause

requires the reasons for discipline or discharge deal directly with job performance

Termination

results from an employee's poor performance

Naturalistic Ethic

some natural objects are morally considerable in their own right, apart from human interests, or that some ecosystems have intrinsic values from which we derive a duty to respect these landscapes

Ambiguity

something that can be understood in one or more ways

Pricing Mechanism

spell out the cost for a specific kind of pollution

Concealment of Facts

suppressing information that is unflattering to a company's products

Vertical Price Fixing

takes place when manufacturers and retailers agree to set prices

Assumption of Risk

taking a chance in a potentially dangerous situation

Drug Testing

testing employees to determine whether they are using illegal drugs

Hawthorne Effect

the alteration of behavior by the subjects of a study due to their awareness of being observed

Insider Trading

the buying or selling of stocks by business "insiders" on the basis of information that has not yet been made public and is likely to affect the price of the stock

Company Loyalty

the feeling that the organization's existence and goals are far more valuable than the employee's welfare

Off-the-Job Conduct

the general proposition that a firm has a legitimate interest only in employee behavior that significantly influences work performance

Consumer Sovereignty

the idea that consumers should and do control the market through their purchases

Legal Paternalism

the idea that the law may justifiably be used to restrict the freedom of individuals for their own good

Inbreeding

the practice of promoting exclusively from within the firm

Civil Disobedience

the refusal to comply with certain laws or to pay taxes and fines, as a peaceful form of political protest.

Right to Refuse Dangerous Work

the right to refuse work that he or she believes is unsafe to himself/ herself or another worker

Puffery

the supposedly harmless use of superlatives and subjective praise in advertisements

Weasel Words

to evade or retreat from a direct or forthright statement

Corporate Campaign

unions enlist the cooperation of a company's creditors to pressure the company to allow its employees to unionize or to comply with other union demands

Abuse of Official Position

using one's official position for personal gain

Bakke vs. Regents of the University of California

was a landmark decision by the Supreme Court of the United States. It upheld affirmative action, allowing race to be one of several factors in college admission policy