MGMT333 Chpt. 4
economy
A company within a community contributes to its local
stockholders
The owners of a company
Stakeholders
The people and groups that supply a company with its productive resources and so have a claim on and stake in the company.
How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business?
There would be more non-productive activity. Additional bargaining will be needed to conclude contracts. Efficiency and effectiveness would decrease.
societal ethics
members of a society treat each other with fairness, equity, and justice.
what must society do first in order to punish undesired behavior
pass laws
utilitarian rule
states that ethical decisions are those that produce the greatest good for the greatest number of people.
Defensive
Choice, When managers are granted large stock options and bonuses even as company performance declines rapidly When managers are granted large stock options and bonuses even as company performance declines rapidly
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.
What would be an accurate statement regarding ethics and legality
Just being legal does not make an action ethical.
Occupational Ethics
Standards of behavior for a profession or trade
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
social responsibility
This obligation to make decisions that will offer such protections is referred to as the company's
laws
To enforce their views of right or wrong behavior, different groups in society lobby for
Financial, capital, and human
What three company resources are managers responsible for in order to increase performance and, as a result, the company's stock price? Multiple choice question. Internal, external, and manufacturing
Accommodative
When managers at older and more reputable companies, with much to lose, dissuade employees from acting unethically even when it would ensure their competitive advantage
Obstructionist
When managers knowingly seek to hide evidence from the public, such as that asbestos and/or tobacco causes lung cancer
Proactive
When managers seek ways to reduce operating costs to prevent layoffs to enable them to keep promises they make to employees
ethical dilemma
a situation in which people are faced with two opposing decisions
managers
have a claim on an organization because they bring to it their skills, expertise, and experience
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
justice 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.
moral rights rule
states that ethical decisions are ones that maintain and protect people's fundamental rights and privileges.
Which stakeholders have a claim on and a stake in a company because of the productive resources they provide?
stockholder executives managers
practical
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.
A company can act ethically toward employees and meet their expectations by creating an occupational structure
that fairly and equitably rewards employees
ethical dilemma
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 and is the right thing to do even though doing so might go against their own self-interest
Why is it important 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
