MGT ch 4

What managerial attitude best exemplifies the moral rights rule?

"Do unto others as you would have them do unto you."

A major ethical issue exists for non-profit organizations considering that some badly run charities spend ______ cents of every dollar on administrative costs.

70

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

Accommodative

In addition to the ethical issues that arise in how companies contract and interact with their supplier and distributors, other issues involve general business ethics. Which of the following is the best example of business ethics that impact suppliers or distributors?

Considering the plight of workers in countries to which manufacturing has been outsourced

Which of the following would be considered forms of socially responsible behavior? (Choose all that apply.)

Contributing to charities and supporting various civic-minded activities Providing employees with health care and pension benefits Allocating resources to train and educate employees

When managers are granted large stock options and bonuses even as company performance declines rapidly

Defensive

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

Non-discriminatory hiring, promotion, and reward systems are a means of acting ethically toward ______.

Employees

The utilitarian rule states that __________ _____________ are those that produce the greatest good for the greatest number of people.

Ethical Decisions

True or false: Individual ethics always match the dominant ethics of the state in which you grew up.

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: To be fair and equitable towards their employees, companies must create an organizational structure that rewards them for their contributions.

False

Which of the following is not an advantage of increased social responsibility?

Faster promotions for employees

Which of the following did the Securities and Exchange Commission do to prevent future scan? (Check all that apply.)

It increased the power of outside directors to scrutinize a CEO. It developed regulations concerning stock options. It reworked the rules governing a company's relationship with its auditor.

Which of the following is an example of a socially responsible business decision?

Minimize or avoid layoffs if possible

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

When managers knowingly seek to hide evidence from the public, such as that asbestos and/or tobacco causes lung cancer

Obstructionist

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 is it called when a person has faith in the goodwill of another person, even if this puts them at risk?

Trust

Which of the following are ethical dilemmas? (Choose all that apply.)

You must decide between helping someone else or acting in your own self interest. You must choose between two actions even though each will result in harm to someone.

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

Employees have a stake in the success of the company because they ___.

are entitled to fair compensation for their work

The issue of fair compensation for top managers is problematic in ______.

both for-profit and nonprofit companies

Legal issues between companies and their suppliers and distributors are generally covered by ______ between the involved parties.

contracts

From 2000 through the 2010s, there have been many major ethical scandals where managers in financial organizations, such as investment houses and banks, clearly broke the law through: (Choose all that apply.)

defrauding investors. interest rate manipulation. drug money laundering.

Managers and employees must work to increase _____ in order to create loyal customers and attract new ones.

efficiency and effectiveness

A(n) ______ may arise when a person must choose between two different courses of action--one that serves the person's self-interest and one that goes against the person's self interest in order to benefit someone else.

ethical dilemma

When facing a difficult decision, and factoring in your moral scruples, you are facing a(n) ______.

ethical dilemma

Managers frequently have to make decisions as to how much emphasis to put on the competing interests of the various stakeholder groups. This can frequently cause ______.

ethical dilemmas for managers

To strengthen a company's organizational culture, managers make good decisions when faced with ethical dilemmas by instilling in their employees ______.

ethical values

Sources of individual ethics include: (Choose all that apply.)

family. peers. upbringing.

A community provides a company with: (Choose all that apply.)

homes for employees. utilities. labor force. social infrastructure.

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

You may realize you are facing an ethical dilemma if you find yourself hesitating or debating ______.

if you are doing the right thing

If unethical behavior is discovered by those in authority and goes unpunished, likely consequences of this may be: (Choose all that apply.)

increased cynicism and decreased morale among employees others in the organization feel they can act in the same manner

People typically confront ethical issues when weighing ______ interests against the effects of their actions on others.

individual

A woman has fallen in the street and cars are coming towards her. A person runs from the sidewalk and helps the woman up, pulls her to the sidewalk, and stays with her. The helper has good ______.

moral scruples

Thoughts and feelings that tell a person what is right or wrong are referred to as ______.

moral scruples

An accurate portrayal of the relationship between the law and ethics is that ______.

neither laws nor ethics are fixed principles and both may change with time

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

When managers resist the temptation to act in their own self-interest, they reinforce ethical ______.

organizational norms

A community is a stakeholder for a company because it provides a company with the ______.

physical and social infrastructure

The occupational ethics of ______ require them to perform only necessary procedures.

physicians

The esteem that individuals or organizations gain when they behave ethically is known as ______.

reputation

Moral scruples are thoughts and feelings that tell a person what is ______.

right or wrong

The occupational ethics of ______ require them to conduct experiments and report findings in such a way as to ensure their validity.

scientists

Short-term unethical behavior by managers results in ______.

serious long-term consequences

Another way to describe the practices that develop from a culture's laws, customs, and unwritten values and norms of behavior are ______.

societal ethics

Laws and ethics are a reflection of ______.

society's changing beliefs

Those who have a claim on a company, and therefore an interest in its ethics, because they are owners as well as entitled to receive future stock dividends, are known as the ___.

stockholders

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.

One ethical issue for non-profits is how much of the funds actually go to the people for which they are intended. This is often because ______.

too much money is spent in administering the non-profit.

Stockholders want managers and companies to act ethically because ______.

unethical behavior may eventually cause the company to fail

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

People act according to societal ethics because they have ______ the values, beliefs, and norms of their country or society; in other words, they have made these ethics their own on both an intellectual and psychological level.

internalized

Given the increasing incidents of school violence, the anti-gun movement reflects concern over perceived unethical actions. In this case, ______.

no laws were broken by the gun companies, yet the perception was that they engaged in unethical activities

What are the advantages of social responsibility? (Choose all that apply.)

If all organizations adopt a caring approach, a climate of caring will pervade the wider society. The more organizations act in socially responsible ways, the better the quality of life will be for the country as a whole. It can improve a company's reputation.

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

When managers seek ways to reduce operating costs to prevent layoffs to enable them to keep promises they make to employees

Proactive