Management Chapter 4
What managerial attitude best exemplifies the moral rights rule?
"Do unto others as you would have them do unto you."
Which of the following are important elements for managers to consider when using the moral rights rule? (Choose all that apply.)
"Will the decision cost someone his/her life?" "Will the decision impede someone's freedom of speech?" "Will the decision make someone's environment less safe?" "Will the decision take away someone's property?"
Which of the following is the ethical dilemma faced by managers using the moral rights rule?
A decision that upholds the rights of one group may harm the rights of another group.
How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business? (Choose all that apply.)
Additional bargaining will be needed to conclude contracts. There would be more non-productive activity. Efficiency and effectiveness would decrease.
Why is it important to a community for a company to follow the laws and act ethically?
Because if a company fails due to illegal or unethical practices, it hurts the community
When companies make ethical and socially responsible decisions on behalf of their employees, what is the result?
Companies make decisions that protect, enhance and promote the welfare and well-being of their stakeholders.
Which of the following best describes the managers' primary concern as a stakeholder group?
Deciding on a company's goals and how to use its resources
Which of the following statements reflects the relationship between beliefs about the ethics of slave-owning and laws about slave-owning?
Ethical beliefs about whether it is right or wrong to own slaves changed first; then the laws about owning slaves changed.
Which of the following is not an advantage of increased social responsibility?
Faster promotions for employees
What three company resources are managers responsible for in order to increase performance and, as a result, the company's stock price?
Financial, capital, and human
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 more time.
What would be an accurate statement regarding ethics and legality?
Just being legal does not make an action ethical.
Who is it that provides their human capital—their skills, expertise, and experience—to the company and, therefore, has a claim or stake in the company?
Managers
Which of the following are behaviors that most people agree are unacceptable, unethical, and should be illegal?
Murder, Sexual assault, Driving while intoxicated
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
What is the outcome when ethical values and norms become a part of an organization's culture?
Organizational members resist self-interested action.
The ______ is the government's top business watchdog, focusing on previously unethical behavior that is now outlawed.
SEC
What did the slavery exemplify with regard to ethics and the law?
The ethical beliefs changed, then the laws changed
What is the rule that describes ethical decisions in which a choice must be made to distribute or deny benefits among people and groups in a fair, equitable, or impartial way?
The justice rule
What partially contributes to why some corrupt managers get away with serving their own self-interests at the expense of their company's employees and stockholders?
The laws and regulations are not strong enough.
What are the advantages of social responsibility? (Choose all that apply.)
The more organizations act in socially responsible ways, the better the quality of life will be for the country as a whole. If all organizations adopt a caring approach, a climate of caring will pervade the wider society. It can improve a company's reputation.
What is the rule in which ethical decisions are made in order to spread the greatest good for the greatest number of people?
The utilitarian rule
Why do organizations create company credos? (Choose all that apply.)
To deter people from demonstrating self-interested, unethical behavior To ensure that everyone knows that those who act unethically will be punished To show the company will not tolerate people who put their interests above those of stakeholders
What is it called when a person has faith in the goodwill of another person, even if this puts them at risk?
Trust
What are the effects of trust among stakeholders? (Choose all that apply.)
When one stakeholder acts in a trustworthy manner, others tend to follow. Stakeholders cooperate in providing information. Company performance improves.
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
Managers using the utilitarian rule must first consider the types and levels of ______ various stakeholder groups.
benefits and harm to
Because managers invest their human capital to improve a company's performance, they have the right to expect rewards, such as: (Choose all that apply.)
benefits. good salaries. bonuses.
The issue of fair compensation for top managers is problematic in ______.
both for-profit and nonprofit companiesboth for-profit and nonprofit companies
As ethical beliefs ______ over time, some people may begin to question whether existing laws that make specific behaviors illegal are still appropriate.
change
Company ______ are intended, in part, to make clear that those who act unethically will be punished.
credos
As ethical beliefs ______ over time, some people may begin to question whether existing laws that make specific behaviors illegal are still appropriate.
developed regulations concerning stock options. increased the power of outside directors to scrutinize a CEO. reworked the rules governing a company's relationship with its auditor.
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
While managers may want to treat all stakeholders equally, in reality, they need to prioritize the treatment of the various stakeholder groups which may create an ethical for managers.
dilemma
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.
distributors
A company within a community contributes to its local ______.
economy
Managers using the moral rights rule consider the ______.
effects of an action on individuals' rights
Managers and employees must work to increase _____ in order to create loyal customers and attract new ones.
efficiency and effectiveness
Non-discriminatory hiring, promotion, and reward systems are a means of acting ethically toward ______.
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
Because ethical and legal rules are relative and change over time, people are frequently faced with ______.
ethical dilemmas
To strengthen a company's organizational culture, managers make good decisions when faced with ethical dilemmas by instilling in their employees ______.
ethical values
People are guided by , their inner moral principles, values, and beliefs, which they use to analyze or interpret situations and then make decisions about right and wrong ways to behave.
ethics
What inner guide informs people of what is appropriate behavior and how to avoid harming others?
ethics
Managers have a claim on an organization because they bring to it their: (Choose all that apply.)
experience, skills, expertise
True or false: Ethical scandals concerning executive pay occur only in for-profit companies.
false
True or false: Making a decision concerning which stakeholder group's rights and expectations should be emphasized does not create an ethical dilemma for managers.
false
True or false: Societal ethics are standardized from country to country in nations throughout the world.
false
True or false: To be fair and equitable towards their employees, companies must create an organizational structure that rewards them for their contributions
false
True or false: To be fair and equitable towards their employees, companies must create an organizational structure that rewards them for their contributions.
false
Unethical behavior can ruin business commerce, which in turn can lower a society's standard of living, because _______.
fewer goods and services are produced
The utilitarian rule states that ethical decisions are those that produce the greatest for the greatest number of people. When they use this rule, managers try to choose the option or behavior that causes the greatest good or the least harm for stakeholders.
good
Customers are frequently regarded as the most critical stakeholder group for the company's success because ______.
if a company cannot attract customers to buy its products, it cannot stay in business
If unethical behavior is discovered by those in authority and goes unpunished, likely consequences of this may be:
increased cynicism and decreased morale among employees others in the organization feel they can act in the same manner
In order to prevent future scandals, the Securities and Exchange Commission has: (Choose all that apply.)
increased the power of outside directors to scrutinize a CEO. reworked the rules governing a company's relationship with its auditor. developed regulations concerning stock options.
When people's self-interests are at stake, their ethics influence how they perceive their responsibilities and how they behave towards others.
individual
A manager facing the ethical dilemma of how to be fair and not show favor to one stakeholder group over another is being challenged in the application of the rule.
justice
A manager making an ethical decision is using the ______ rule when deciding on fair procedures to insure outcomes are distributed fairly to stakeholders.
justice
Managers use the ______ rule when they evaluate how alternative courses of action distribute the benefits and harm to the people and groups affected.
justice
Managers use the ______ rule when they evaluate how alternative courses of action distribute the benefits and harm to the people and groups affected.Managers use the ______ rule when they evaluate how alternative courses of action distribute the benefits and harm to the people and groups affected.
justice
Managers use the rule when they evaluate how equally alternative courses of action distribute the benefits and harms to the people and groups affected; they work to ensure a fair, equitable, or impartial solution.
justice
The rule states that an ethical decision is a decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way.
justice
To enforce their views of right or wrong behavior, different groups in society lobby for ______.
laws
When ethics change, legislators are often pressured by society to make changes in their ______ to align with social values and norms.
laws
The stakeholder group responsible for directing the use of their company's financial and human resources to increase performance are the ______.
manager
Due to their expertise, skill, and experience in accomplishing positive results for their companies, expect to be compensated for their credentials.
managers
The stakeholder group responsible for choosing the strategic goals that the company should pursue in order to benefit all of the company's stakeholders is the ______.
managers
Due to their expertise, skill, and experience in accomplishing positive results for their companies, expect to be compensated for their credentials
manangers
Which stakeholder group's behavior needs to be scrutinized because of the opportunities available to them to do harm to other stakeholder groups?
mangers
At the expense of other stakeholder groups, corrupt managers attempt to ______ their own personal gains.
maximize
Consideration of people's rights to freedom, life, safety, property, privacy, and free speech are important to managers using the rights rule to make ethical decisions.
moral
The rights rule states that an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it.
moral
Managers using the ______ rule face an important ethical dilemma because a decision that upholds the rights of one group may conflict with the rights of another group.
moral rights
The ______ rule involves comparing the effects of potential actions to the rights of various stakeholder groups, then choosing the action that best protects all the groups' rights.
moral rights
The ______ rule states that ethical decisions are ones that maintain and protect people's fundamental rights and privileges.
moral rights
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 $1 million
If top managers are not ethical, their subordinates are ______.
not likely to behave in an ethical manner
Managers who will break the law to satisfy their own self-interest demonstrate the ______ approach. Managers who obey the law, but do nothing more than that to act in a socially responsible manner, exhibit the ______ approach.
obstructionist; defensive
For members of a particular trade or craft, their profession's ethics are the standards that govern how members should conduct themselves when performing work-related activities.
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 ______.
occupational ethics
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. (Choose all that apply.)
organizational ethics organization's code of ethics
When managers resist the temptation to act in their own self-interest, they reinforce ethical ______.
organizational norms
What must society do first in order to punish undesired behavior?
pass laws
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
The ______ rule is that an ethical decision is one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think it is acceptable.
practical
Which ethical rule suggests communicating the decision to people outside the company?
practical
Unethical behavior generally results in a(n) _______ in efficiency, effectiveness, company performance, and national standards of living, well-being, and prosperity.
reduction
Stakeholders must earn a good within their organizations, as their livelihoods depend on their ethical behavior and the esteem they build from colleagues and managers.
reputation
The esteem that individuals or organizations gain when they behave ethically is known as ______.
reputation
Short-term unethical behavior by managers results in ______.
serious long-term consequences
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 ______.
social responsibility
When ethics are in play, members of a society treat each other with fairness, equity, and justice.
societal
When issues of fairness, justice, and equality are governing forces ensuring the rights of every individual, ______ are the standards being practiced.
societal ethics
A company's employees, customers, stockholders, suppliers, and distributors are considered the company's ______.
stakeholders
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
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
A company can act ethically toward employees and meet their expectations by creating an occupational structure ______.
that fairly and equitably rewards employees
In business, to help you decide what is right, one major challenge to ethical decision making is ______.
the lack of absolute rules
If a manager misuses resources and other parties regard that behavior as being at odds with acceptable standards, ______.
the manager's reputation will suffer
It is important to punish unethical behavior ___.
to keep others from engaging in their own unbridled self-interest.
True or false. Stockholders buy shares of companies and thereby become owners.
true
True or false: A specific behavior that is deemed illegal is not necessarily unethical.
true
True or false: People can differ in attitudes, beliefs, and values, which leads to disputes over the rightness or wrongness of a decision or action.
true
True or false: There are many kinds of behavior where people disagree as to whether or not it is ethical.
true
Organizations and stakeholders tend to cooperate and share information more freely, thus making it easier to price goods and services correctly, when they respect and ______ one another.
trust
People are more willing to enter into a somewhat risky venture when they the person or group with whom they are entering the relationship.
trust
Managers using the ______ rule first consider the types and levels of benefits and harm to various stakeholder groups. They should choose the course of action that provides the most benefits, or conversely does the least harm, to stakeholders.
utilitarian
The ______ rule states that ethical decisions are those that produce the greatest good for the greatest number of people.
utilitarian
Individuals face moral dilemmas because which of the following can be relative? (Choose all that apply.)
values, ethics