Management chapter 5

When corporations behave badly, which stakeholder group tends to suffer the most?

Low-ranking employees

What term describes the standards of expected and acceptable behavior that vary from one culture to another?

Norms

Which of the following is NOT an ethical system that supports moral philosophy?

Social theory

What term describes economic development that meets present needs without harming the needs of future generations?

Sustainable Growth

What are the effects on employees of a weak ethical climates?

Unethical behavior Job dissatisfaction

Nkoze works for a global nonprofit organization that treats every employee and volunteer with the same degree of fairness and honesty. This is an example of which type of ethical system?

Universalism

Which ethical system holds that all people should uphold certain values that society needs to function?

Universalism

Stewardship is the act of

contributing to the long-term welfare of others

Corporate ethics programs commonly include

formal ethics codes that detail the company's expectations

According to Milton Friedman, a business should attempt to increase its profits while conforming to

society's law ethical customs

What are the possible results of lying for a reason of negotiation?

Short-term gain and economically positive

Which subjects are commonly addressed in ethics codes?

- Community and environment - Suppliers and contractors - Employee conduct

Which of the following are generally part of corporate ethics programs?

- Disciplinary processes for addressing unethical behavior - Ethics communication systems that give employees a means of reporting problems or getting guidance - Ethics committees that develop policies, evaluate actions, and investigate violations

Which are common perceptions of how business leaders get ahead by using illegal means?

Kickbacks Insider trading

The Sarbanes-Oxley Act of 2002 was a response to which of the following?

Corporate scandals

What term is used to describe the policies and practices that reflect business responsibility for societal goods and reflects the social imperatives and social consequences of business success?

Corporate social responsibility

What are the two basic contrasting principles that guide managerial responsibility?

- As agents for the shareholders, managers have an obligation to maximize profit. - Managers should be motivated by principled moral reasoning.

Which are factors in becoming an ethical leader?

- Being seen by others as a moral person - Influencing others to behave ethically

Which factors make for an effective ethics code?

- It focuses on real-life situations that employees can relate to. - Those affected by it are involved in writing the statement. - It is concise and easy to understand.

Which statements about whistleblowing are true?

- It involves telling others inside or outside an organization of wrongdoing. - It requires courage on the part of the whistleblower

Which statements are true about ethical biases?

- Managers often hire people who are like them and think they are immune to conflicts of interest. - Most people have unconscious biases that favor themselves and their own group.

Select the common elements of compliance-based ethics programs (Check all that apply.)

- Punishments imposed on violators - Auditing and monitoring compliance - Established legal standards and procedures

Which are danger signs that suggest that an organization may be allowing or encouraging unethical behavior?

- Responding to the demands of shareholders at the expense of other constituencies - Excessive emphasis on short-term revenues over longer-term considerations - Failure to establish a written code of ethics

Select the requirements that are part of the Sarbanes-Oxley Act

- Senior managers must personally sign off on financial results. - Companies must adhere strictly to accounting rules. - Companies must have more independent board directors.

What is the relationship between corporate social performance and financial success? (Check all that apply.)

- Socially responsible organizations are not necessarily more or less successful in financial terms. - Evidence indicates that social responsibility is on average associated with better financial performance. - Socially responsible actions can have long-term benefits and offer business opportunities and improve profitability.

Which statements best describe the aim of ethics?

- The aim of ethics is to identify the 'goods' that are worth seeking. - The aim of ethics is to identify the rules that govern people's behavior.

Which of the following are elements of the process for ethical decision making?

- Using judgment to recognize what actions are morally defensible - Having awareness to realize the issue has ethical implications - Having moral character to act in accordance with your ethics

To create a culture that encourages ethical behavior, managers must

- be able to lead others to behave ethically - be ethical people

What term describes a cooperative economic system that works to minimize the environmental impact of business?

Circular Economy

Which of the following is a key reason for businesses' growing interest in protecting the natural environment?.

Companies see ecological sustainability as a major driver of innovation.

The______ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

Economic

Which of the following describes the ethical system of egoism?

Ethical behavior is that which maximizes benefits for the individual.

What term describes the processes in an organization where decisions are evaluated and made on the basis of right and wrong?

Ethical climate

Which of the following is NOT a reason organizations see ethics as an important issue?

Ethical organizations always lose money when compared to unethical organizations.

The aim of business Blank______ is to identify the rules that should govern people's behavior.

Ethics

What term describes the system of rules that establishes moral values and guides behavior?

Ethics

Which of the following statements is true about the Sarbanes-Oxley Act's requirement for public companies to disclose whether they have adopted a code of ethics for senior financial officers?

If implemented well, the code can encourage ethical behavior.

Which statement is true about the reconciliation of profit maximization with corporate social responsibility?

Profit maximization and corporate social responsibility can successfully converge.

Gert's company manufactures jeans. The equipment in her factory is old and temperamental, and she has a hard time finding knowledgeable repair personnel. Although it means giving up direct control over the manufacturing process, Gert decides that the only way to keep delivering products to her loyal customers is to shut down the factory and manufacture the jeans overseas at a new facility. Other jean manufacturers understand Gert's decision to move production overseas, but her employees who lost their jobs do not understand or agree with her decision. This is an example of which ethical system?

Relativism: Based on the opinion and behavior of relevant other people. Boss decision, employees may disagree.

We live in a society where the creation and distribution of wealth generates byproducts that can cause injury, loss, or danger to people and the environment. This is known as a(n) Blank______ society.

Risk

Which of the following is a danger sign of unethical behavior?

The manager drops prices to increase sales revenue, even though it will negatively impact the company in the long term.

If everyone follows the ethical system known as egoism, which of the following is supposed to happen?

The well-being of society as a whole should increase.

Which of the following statements about effective ethics codes is correct?

They should be followed by executives who wish to set a good example.

Which statement about corporate ethics codes is true?

They usually address a number of subjects.

A company is losing market share and realizes it must increase efficiency and cut costs in order to survive and succeed. It decides to shut down several underperforming facilities in the United States and open factories overseas where costs are much lower. This decision will allow the company to compete more effectively in the global market and result in more job opportunities and profits down the road. This is an example of which ethical system?

Utilitarianism: Seeks the greatest good for the greatest number of people

The Sarbanes-Oxley Act requires that public companies periodically disclose if they have

a code of ethics for senior financial officers

Companies, managers, and their communities all benefit over the long term when managers act with integrity and

apply ethics

One of the biggest impacts of the Sarbanes-Oxley Act was the requirement for

companies to provide reports about the effectiveness of their financial reporting process

An ethical leader is best defined as someone who

is personally moral and a moral manager

If you were asked to describe the principles, rules, and values that you use when deciding what is right or wrong, you would be talking about your

moral philosophy

About half of all employees in large companies have

observed misconduct in the workplace