MGT chpt 3 & 4

Sustainability

meeting the needs of the present without compromising the ability of future generations to meet their own needs

individual factors/ values

moral philosophies that govern what people believe is 'right' vs 'wrong' fall into 2 categories: - utilitarianism: believers seek the greatest satisfaction for largest # of people - deontology: focused on human rights/ values looks at the intentions of behaviors

operations and communicaitons

not properly communicating risks of products to users

organizational factors

objectives, strategies, structure, systems, procedures -people will succumb to organizational factors rather than their own instincts- FOLLOW MANAGER'S LEAD

buisness ethics

principles. values, code of conduct defining ACCEPTABLE behavior in buisness

ethics and compliance programs

programs designed to encourage ethical behavior and creating an ethical culture. focus on accountability and teamwork

secondary stakeholders

less formal connection (such as environmentalists, special interest groups, media)

argument against CSR

1. sidetracks managers from earning profits 2. participation in social programs gives businesses greater power at the expense of parts of society 3. question if businesses are able to make big decisions abt social problems 4. social probs are responsibility of govt agencies, help accountable by voters

internal manager types

1. strategic/ institutional- set overall direction of organization 2. technical- coordinate various levels of management 3. operational- tranform inputs to outputs

employee relations

Human resource activity involving enforcement of company policy

organizational relationships

Relationships with one's' employees, coworkers, or superiors that could lead to ethical issues - abusive/ intimidating behavior - lying to customers about quality of product

A __________orientation type of control system requires that employees learn and pledge to a specific type of conduct. a. compliance b. enforcement c. ethical d. values

a

According to research, the most important factor affecting daily ethical decisions at work is the a. work group or the perceived ethicalness of the work group. b. individual's own ideas about what is right and wrong. c. supervisor's consistent workplace practices. d. company's code of ethics.

a

Also known as moral philosophies, what term describes sets of principles that describe what a person believes are the right way to behave? a. Individual values b. Business ethics c. Social responsibilities d. Codes of ethics

a

Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers a. have little control over the restaurants. b. need to diversify into other products. c. are really a suppliers' cartel. d. have major power but don't know how to use it.

a

Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers a. have little control over the restaurants. b. need to diversify into other products. c. are really a suppliers' cartel. d. have major power but don't know how to use it.

a

In analyzing the relationship between ethics and social responsibility, ethics may be viewed as a. a component of social responsibility. b. broader than social responsibility. c. more pragmatic and situational than social responsibility. d. much more concerned with right and wrong.

a

Managers tend to be more concerned about ethical issues that a. have immediate consequences. b. will get them arrested. c. affect the government. d. have long-term consequences.

a

The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment? a. Global b. Economic c. Technological d. Political-legal

a

The greater a person's exposure to unethical behavior, the greater is the likelihood that a. the person will behave unethically. b. the person will be honest. c. he entire organization will soon be corrupt. d. the person will behave ethically.

a

The group in a corporation that has legal responsibility to represent the stockholders is a. the board of directors. b. the executive team. c. the organizational stakeholders. d. the corporate legal counsel.

a

The most accurate definition of the technological dimension of the general environment is a. the process of changing inputs to outputs. b. the building of a supporting infrastructure. c. the process of changing outputs to inputs d. coping with the rapidity of change

a

The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's a. task environment. b. internal environment. c. economic environment. d. sociocultural environment.

a

The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's a. task environment. b. internal environment. c. economic environment. d. sociocultural environment.

a

Understanding external factors is important to managers, equally important is knowing ____________. a. How to respond to the factors. b. How your competitors will respond. c. How the economy will respond. d. How other governments will respond.

a

What is the global dimension? a. Pertaining to the general environment, those factors in other countries that affect the organization b. Within the general environment, the nature of the relationship between various areas of government and the organization c. The aspect of the general environment that includes the demographics, attitudes, and the values of the society within which an organization operates d. The overall condition of the complex interactions of economies throughout the world

a

When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of a. employee relations b. operations and communications. c. organizational management. d. social responsibility.

a

Which of the following characteristics relates to the nature of the management environment? a. All of those factors that affect the operation of the organization b. All of the factors outside the organization that may affect the managers' actions c. All factors that make up the organization, such as the owners, managers, employees, and board of directors d. Those factors that have a direct effect on a specific organization and its managers, including customers, suppliers, competitors, substitutes, and potential new entrants to the industry

a

Which of the following refers to those who purchase an organization's goods and/or services? a. Customers b. Competitors c. Primary stakeholders d. Suppliers

a

While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually a. promote trust and learning in an organization. b. get everyone more interested in ethical issues. c. promote clearer understanding of the relevant laws. d. lead to the immediate development of a code of ethics.

a

Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is a. the overall moral climate of your organization. b. your immaturity in understanding ethical issues. c. your personal moral and ethical standards. d. your rationalization that this behavior is OK.

a

ethical issue

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

Businesses must first be responsible to their , who are primarily concerned with earning a profit. a. customers. b. owners. c. managers. d. workers.

b

For businesspersons to be ethical, they must strive for success while a. making a profit for owners as their sole guide. b. being fair, just, and trustworthy. c. following government regulations as long as it doesn't cost them. d. following the policy caveat emptor.

b

Social responsibility is the obligation a business has to a. be as competitive as possible. b. maximize its positive impact on society and minimize its negative impact c. make the highest possible return for investors. d. develop total quality management.

b

The Union Electric Company, a St. Louis utility, buys a large shipment of coal from Peabody Coal Company for use in its coal-fired plants. Peabody is one of Union Electric's a. competitors b. suppliers. c. customers d. partners

b

You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of a. your lack of analysis of the economic dimension of the general environment. b. your failure to cope with the technological dimension of the general environment. c. your foolishness in attempting a cooperative relationship with a competitor. d. your failure to appreciate the microeconomic environment in your industry.

b

Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is a. your personal moral and ethical standards. b. the overall moral climate of your organization. c. your immaturity in understanding ethical issues. d. your rationalization that this behavior is OK.

b

What are potential new competitors? a.) Those who have a formal and/or contractual relationship with the firm, such as customers, suppliers, employees, regulators, investors, and communities b.) Companies not currently operating in a business's industry but that have a high potential for entering the industry c.) Groups that have a less formal connection to the organization, such as environmentalists, special interest groups, and the media d.)Other organizations that produce similar, or in some cases identical, goods or services

b.

An American firm's refusal to enter into a binding contract with a Russian oil firm because of the lack of clarity of Russian law in this area is based on the American firm's analysis of which dimension of the general environment? a. Sociocultural dimension b. Technological dimension c. Political-legal dimension d. Economic dimension

c

For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making a. must be part of a larger strategic plan for the business conduct of the entire company. b. should allow employees and managers a large zone of discretion in making ethical choices. c. must be enforced by rewards for proper behavior and punishments for unacceptable behavior. d. must be communicated to managers and employees at every level in the organization.

c

If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is a. decreased. b. minimal. c. increased. d. average.

c

Managers tend to be more concerned about ethical issues that a. will get them arrested. b. affect the government. c. have immediate consequences. d. have long-term consequences.

c

The difference between an ethic and a law is that a law a. is defined by legislators; an ethic by ethicists. b. is not concerned with issues of right and wrong. c. defines a minimally acceptable standard of conduct. d. is made to be broken; an ethic to be upheld.

c

The role of management in fostering ethical behavior in an organization is extremely important because managers a. have no effect on employee's day-to-day activities. b. who don't act ethically may appear to condemn ethical activity. c. who ask employees to do something wrong have a powerful influence. d. cannot influence behavior by implementing ethical standards.

c

What name is given to the obligation a business assumes to maximize its positive impact and minimize its negative impact on society? a. Utilitarianism b. Consumerism c. Social responsibility d. Deontology

c

a set of principles that describe what a person believes is the right way to behave is called a. immoral philosophy. b. ethical formalism. c. moral philosophy. d. utilitarian philosophy.

c

Ethical issue making

can be confusing with varying ethical beliefs of those who make up the organization

opportunity

conditions that allow a person or organization to commit a dishonest act and convert it to personal gain

Task - Customer

customer has power if: 1. firm's product is not too different that than of a competitor 2. cost of good is significant for customer 3. major buyer of firm's total goods/ services (firm depends on buyer ex best buy)

According to research, the most important factor affecting daily ethical decisions at work is the a. company's code of ethics. b. supervisor's consistent workplace practices. c. individual's own ideas about what is right and wrong. d. work group or the perceived ethicalness of the work group.

d

Developing widespread electric charging stations for electric cars is an illustration of a. the rapidly growing global economy. b. the rapidly growing information highway. c. the rapidity of technological change. d. building technological infrastructure.

d

Georgia realized her supervisor was padding his expense account. Research has shown that her response will most likely be to a. call the media. b. report her supervisor. c. blackmail the supervisor into giving her a raise. d. pad her own expense account.

d

The company that was founded on with strong CSR principles is a. Ericson b. Verizon c. LL Bean d. Patagonia

d

Which external factor is the hardest to forecast? a. Economic b. Environmental c. Customers d. Socio-cultural

d

Which of the following characteristics relates to business ethics? a. The obligation a business assumes to maximize its positive impact and minimize its negative impact on society b. Formalized rules and standards that describe and delineate what the organization expects of its employees c. An identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical d. Principles, values, and codes of conduct that define acceptable behavior in business

d

Within a ____________orientation type of control system, when employees understand that their behaviors will be met with consequences, either good or bad, they have little opportunity for ambiguous personal interpretation of how they should act within the company. a. values b. enforcement c. ethical d. compliance

d

You own a bakery that makes fine bran muffins, but you lose a customer to another bakery that offers him a 25 percent discount for similar muffins. You are facing a challenge in the a. global economy. b. microenvironment. c. technological dimension. d. task environment.

d

Corporate Social Responsibility

deals with economics, legal, ethical, philanthropic interests of stakeholders

Consumer Relations

expecting that businesses will provide them with safe products

internal environment

factors making up an organization (owners, managers, employees) can be common to several organizations -owners -managers -employees

External Environment

factors on the exterior that may affect managers actions split into general and task

task environment

factors that have a direct effect on a SPECIFIC organization - customers - competitors (most powerful force in a firm's operation) - suppliers (business has advantage if it has many suppliers for a resource) - potential customers - substitutes(limit how much a company can charge) - special interest groups

Primary Stakeholders

formal/ contractual relationship with the firm (such as customers, suppliers, employees, investors)

code of ethics

formalized standards that describe what a company expects of its employees

Employee Relations

responsible for maintaining a safe, healthy, and productive work environment for all employees. - can easily turn inappropriate when it comes to HR collecting data on employees, discrimination

consumerism

the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers

Nature of social responsibility

the belief that businesses should make a profit and consider how their activities affect others. how to MAXIMIZE POSITIVE impact and MINIMIZE NEGATIVE impact 1. financial viability 2. compliance with legal, regulatory requirements 3. ethics, principles, values 4. corporate citizenship

general environment

the broad factors that affect ALL organizations - socio-cultural (demographics, culture) - political/legal (regulations, taxes) - technological (automation, security) - economic (inflation, unemployment rate) - global influences (whats happening abroad?)

Task potential competitors

the decision to entry will depend on: - high entrance cost (expensive equipment, location, availability of skilled employees) - economies of scale (cost per unit decreases as organization produces more units) - lack of access to distribution channels (get products in consumer's hands) - lack of technical expertise (necessary knowledge)

Stakeholder Orientation

the degree to which a firm understands and addresses stakeholder demands