MGMT Chapter 3

Personal and emotional justifications for ________ include its usefulness as a shortcut and it being a way to redress perceived unfairness. A. a utilitarian approach B. deceptive advertising C. cheating D. whistle-blowing E. a lack of corporate governance

cheating

The "holier than thou" effect has been cited as a psychological mechanism that may result in A. a lack of innovation. B. increased training costs. C. decreased diversity. D. cheating. E. poor customer service.

cheating

Corporate social responsibility (CSR) is the notion that corporations are expected to create a positive and enriching environment for employees.

false

Customers have more faith in health insurance companies to handle complaints than they have in apparel outlets.

false

Ethical behavior is defined as a behavior that creates the greatest good for the greatest number of people.

false

Ethical responsibility is at the top of Carroll's corporate social responsibility pyramid.

false

Factors such as unemployment conditions and interest rates would be considered part of demographic forces in an organization's general environment

false

Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle. The Nebraska company would best be described as a distributor for the Far East.

false

For established companies, financial institutions are not external stakeholders

false

In a corporation, the chief executive is typically elected by the stockholders of the firm.

false

In an organization's environment, internal stakeholders include the customers of an organization.

false

In business, the extended environment is another name for general environment

false

Only those with an ownership interest in a company are known as stakeholders.

false

Political-legal forces are changes in the economic, political, legal, and technological global system that may affect an organization.

false

Prior to its natural gas pipeline explosion, Pacific Gas and Electric (PG&E) had an incentive system that encouraged crews to find leaks, which led to steep increases in repair costs.

false

Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization. In fact, he works for an American carmaker. Therefore Rafael is an external stakeholder for Pierson

false

The National Rifle Association is an example of a government regulator

false

The approach to ethical behavior that is guided by respect for fairness and equity is the integrity approach

false

The economic integration of the European Union can best be considered part of the economic forces.

false

The first stage of personal moral development is known as the conventional level

false

The mass media is part of an organization's general environment

false

The percentage of the labor force represented by unions has steadily increased since the 1950

false

The psychological mechanism of motivated blindness discourages cheating among students.

false

The purpose of a code of ethics is to state an organization's expectations for the behavior of all its external stakeholders.

false

The two parts of the external environment are the task environment and the socio-political environment.

false

Using cash from newer investors to pay off older ones is known as a Kohlberg scheme

false

Using in-name-only offshore headquarters to minimize U.S. tax burdens is an example of corporate social responsibility.

false

When the independent, high-end U.S. Grant hotel in downtown San Diego joined Starwood's Luxury Collection of hotels to gain "worldwide exposure," it was an example of a distributor relationship.

false

Demographic forces are part of the __________ environment of organizations A. internal B. mechanical C. controllable D. task E. general

general

The flaw in the individual approach is that what results in the individual's best interests is not always what is in everyone's interest long term

true

The standards of right and wrong that influence behavior are called ethics

true

The task environment consists of groups that present workers with daily tasks to handle

true

There are stakeholders in both an organization's internal and its external environments.

true

To a commercial airline, the Federal Aviation Agency (FAA) is an example of a stakeholder.

true

Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior

true

In labor disputes, hourly workers are typically represented by ________, while salaried workers are represented by professional associations. A. special-interest groups B. government regulators C. mass media D. unions E. financial institutions

unions

In considering a large-scale layoff, a manager performs a cost-benefit analysis and determines that profits will be greatest if she proceeds. She is using the ______ approach to guide her decision regarding an ethical dilemma. A. individual B. responsibility C. utilitarian D. moral-rights E. justice

utilitarian

Fairness in hiring practices is an example of an organization's A. cost-benefit analysis. B. morality. C. competitive advantage. D. long-term interests. E. values.

values

Which of the following is considered a demographic force? A. Integration of the European Union B. An increase in multigenerational households C. Interest in healthy living D. A well-developed legal system E. Rising unemployment rates

An increase in multigenerational households

Which of these is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal? A. Ethics question B. Ethical behavior C. Moral decision D. Ethical dilemma E. Morality situation

Ethical dilemma

Which of the following is believed to have contributed to the Pacific Gas and Electric natural gas pipeline explosion in 2010? A. Inspection crew incentives that encouraged false reporting. B. Undetected earthquake damage. C. Illegal field practices by construction crews. D. Lack of a formal code of ethics. E. Sabotage by a competitor.

Illegal field practices by construction crews

Which of the following statements about the mass media is true? A.Johnson & Johnson, maker of Tylenol, has an unblemished record when it comes to successful media strategy during a crisis. B. The power and the reach of mass media are declining. C. In a crisis, the media should be used to communicate frequently and honestly with the public. D. Very few companies feel the need to have public-relations people to communicate with the press. E. Only top-level executives need special instruction on how to deal with the media.

In a crisis, the media should be used to communicate frequently and honestly with the public

______ are in an organization's external task environment. A. Employees B. International forces C. Owners D. Lenders E. Demographic forces

Lenders

American companies may be more willing to sue competitors to gain competitive advantage than those in other countries, which is an example of which type of force? A. Special interest B. Economic C. Sociocultural D. Political-legal E. Demographic

Political-legal

The American epidemic of obesity among U.S. youth is an example of which external force? A. Sociocultural B. Special interest C. Demographic D. Political-legal E. Media

Sociocultural

________ forces are influences and trends originating in human relationships and values that may affect an organization. A. Sociocultural B. Special-interest C. Demographic D. Political-legal E. Media

Sociocultural

Which of the following is an example of an external stakeholder for the department store chain Macy's? A. A member of the Macy's board of directors. B. A customer who purchases a mattress at Macy's. C. A sales associate at Macy's. D. Owners of Macy's stock. E. The CEO of Macy's.

a customer who purchases a mattress at macy's

Employees at Zachary's Chicago Pizza in California can purchase company stock and thus become owners through a device called A. a trustees arrangement. B. participative management. C. bond sharing. D. an employee stock ownership plan. E. profit sharing.

an employee stock ownership

Jack is working overseas, and has been asked by a superior to present a government official with a cash payment in order to secure a contract. This makes Jack uncomfortable since he does not feel it is right, yet he worries about upsetting his boss. Jack is facing A. political-legal trends. B. an ethical dilemma. C. a moral-rights approach by his boss. D. an idealistic situation. E. sociocultural trends.

an ethical dilemma

As part of his overall stock portfolio, Jason bought a few shares of Facebook. In this context, he would best be described as ______ of Facebook. A. being part of the task environment B. an internal stakeholder C. an economic force D. being part of the general environment E. a member of the board of directors

an internal stakeholder

A state government offered a German solar research company a tax break if it located its U.S. headquarters in that state because of the new jobs that would be created. Unfortunately, problems occurred, resulting in little company growth and few new jobs. As a result, the state instituted a ______ by rescinding the tax breaks. A. clawback B. reallocation C. tax amendment D. reformation E. levy turnabout

clawback

A florist should consider the grocery store chain Kroger to be a ________ because consumers are able to purchase the same products at Kroger stores as it sells in its own. A. customer B. strategic ally C. supplier D. distributor E. competitor

competitor

Amazon.com maintains an easy-to-use website, has an accessible service phone number, and offers an inexpensive annual shipping fee primarily in an effort to serve which stakeholders? A. Distributors B. Strategic allies C. Government regulators D. Financial institutions E. Customers

customers

A __________ is a person or organization that helps another organization sell its goods and services to customers. A. financier B. supplier C. strategic ally D. distributor E. special-interest group

distributor

For convenience, you purchase tickets to see the Black Keys through StubHub rather than from the venue itself. In this case, StubHub acts as a A. strategic ally. B. supplier. C. repackager. D. special-interest group. E. distributor.

distributor

Inflation is an example of ______ forces in an organization's general environment. A. economic B. technological C. political-legal D. sociocultural E. demographic

economic

Standards of right and wrong that influence behavior are known as A. ethics. B. morals. C. a value system. D. ethical behavior. E. values.

ethics

A moral-rights approach to ethical behavior taken by a manager would often result in her performing a "cost-benefit" analysis.

false

A situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal is called a moral challenge

false

A supplier is a person or an organization that provides materials or labor to consumers.

false

Competitors compete solely for customers and raw materials.

false

Last summer a representative of OSHA, the agency responsible for enforcing health and safety regulations, visited one of Emilio's construction sites and his company, Gutierrez Construction, was fined for several violations. To this company, OSHA represents a ______, part of an organizations' ______. A. special-interest group; task environment B. government regulator; general environment C. political-legal force; general environment D. special-interest group; external environment E. government regulator; task environment

government regulator; task enviornment

An organization's board of directors is part of its ______ environment. A. internal B. uncontrollable C. external D. task E. genera

internal

________ are stakeholders of organizations because they rely on the tax base companies help create, as well as their employee payrolls, to thrive. A. Special-interest groups B. Government regulators C. Mass media D. Local communities E. Financial institutions

local communities

The general environment of an organization is also known as its A. forcefield. B. macroenvironment. C. global sphere of influence. D. task environment. E. control climate.

macroenvironment

People who can claim an organization as their legal property are called A. owners. B. the board of directors. C. financial institutions. D. customers. E. employees.

owners

After the disastrous oil spill in the gulf, many consumers decided to avoid BP products, many even joining a popular "Boycott BP" Facebook page. Stuart runs an independent BP gas station in Louisiana and his business suffered from this consumer response. In this instance, boycotters would be considered a ______, part of the gas station's ______ environment. A. special-interest group; task B. local community; task C. demographic force; general D. sociocultural force; task E. local community; general

special-interest group; task

A large athletic shoe company has agreed to work with a smaller company that has a new line of athletic clothing since the bigger firm does not have a similar offering and the smaller firm has limited experience in marketing and distribution. The two firms could be described as A. union partners. B. strategic allies. C. distributors. D. special interests. E. regulatory institutions.

strategic allies

Two organizations who join forces to achieve advantages neither can perform as well alone would be called A. union partners. B. strategic allies. C. distributors. D. special interests. E. regulatory institutions.

strategic allies

A U.S. paper mill purchases wood from a Canadian logging company to make wood pulp in its production of paper, so in this case the logging company is a A. customer. B. strategic ally. C. supplier. D. distributor. E. special-interest group.

supplier

Distributors are part of the ______ environment of organizations. A. alliance B. task C. sociopolitical D. general E. internal

task

The music industry has been changed dramatically by consumers' ability to download songs from the Internet. This is an example of ______ forces in an organization's ______ environment. A. technological; task B. economic; general C. sociocultural; general D. technological; general E. economic; task

technological; general

The group important in setting the organization's overall strategic goals and for approving major decisions and salaries of top management is known as A. employees. B. stockholders. C. the board of directors. D. investors. E. intrapreneurs.

the board of directors

Which of the following is an example of an internal stakeholder of an organization? A. A local news station. B. The distributor for one of the finished products. C. A newly formed union. D. The largest stockholder of the company. E. The suppliers of raw materials for one of the products.

the largest stockholder of the company

According to Milton Friedman, the social justification of a business's existence is in its benefit to stockholders, creation of jobs, and expansion of the economy.

true

An interest in health and fitness leading to a boost in sales of athletic shoes demonstrates a sociocultural force.

true

An organization's value system stressing financial performance may conflict with its value system stressing cohesion among employees

true

Andrew Carnegie, steel magnate and supporter of free libraries, is an example of a philanthropist.

true

As a manager, you cannot control the forces in the general environment.

true

Cheating may be done as a way to redress perceived unfairness.

true

Customers are those who pay to use an organization's goods or services.

true

Demographic forces include influences on an organization arising from changes in the characteristics of a population, such as age or ethnic origin.

true

Distributors have been hurt by the rise in popularity of the Internet.

true

Ethics training can enhance high ethical standards in the workplace, even when a company has of a strong code of ethics.

true

External stakeholders include labor unions.

true

Government regulators are regulatory agencies that establish ground rules under which organizations may operate

true

Herman Miller, maker of office furniture, practices corporate social responsibility through sustainability efforts.

true

Human trafficking is unethical according to the moral-rights approach

true

In some cases, the IRS financially rewards whistle-blowers.

true

Internal stakeholders include the employees of an organization.

true

Personality tests can be used to identify potentially dishonest people before they are hired

true

Philanthropy means making charitable donations to benefit humankind.

true

Some firms do not have a board of directors.

true

Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment

true

Studies show that students who cheat and don't actually do the assigned work are more likely to fail anyway.

true

The Sarbanes-Oxley Act was a response by Congress to an array of high-profile U.S. business scandals at the beginning of the 21st century

true