MNGT 301- Chapter 5

- People learn to conform to expectations of good behavior defined by colleagues, family, friends, and society - Work-group collaboration is preferred manner of accomplishing organizational goals - Managers use leadership style to encourage interpersonal relationships and cooperation - Most managers operate at this level, conforming to standards of behavior expected by society - Some people go to church/some don't, some care about what their colleagues think/others don't - Guiding/encouraging, team oriented

Conventional

special interest group of particular importance today

Green Movement

An energy company is seeking to build a pipeline across multiple Canadian provinces and U.S. states. Though __________ managers identify the people interested in the company's activities and prioritize them by their impact on and interest in the pipeline project

stakeholder mapping

The disclosure by employees of unethical, illegitimate, or illegal practices by an organization.

whistle-blowing

individuals should be compensated for their cost of their injuries by the party responsible

Compensatory Justice

acts are moral when they promote the individual's best long-term interest a. Not popular among group-oriented society b. Assumes that a long horizon in decision-making will direct people to the "right direction" c. Treat others as you want to be treated d. If I lie as a manager now, my subordinates will lie to me later

Individualism Approach

A popular clothing company decides to source cotton only from farmers who employ environment-friendly farming methods, avoiding the use of chemical pesticides. The company announces this decision through the press and social media. Which of the following is the most likely result of the clothing company's actions? a. An increase in sales and customer numbers b. Vendor protests and legal actions c. Public protests and media backlash d. A decrease in employee count and performance

a. An increase in sales and customer numbers

Which of the following statements is true of codes of ethics of an organization's values? a. Codes of ethics state the values or behaviors expected and those that will not be tolerated. b. Having strong codes of conduct guarantees that companies won't get into ethical trouble. c. Codes of ethics influence and ensure ethical behavior among employees and managers. d. The absence of any illegality in an organization shows that codes of ethics are being upheld.

a. Codes of ethics state the values or behaviors expected and those that will not be tolerated.

In the context of ethics, which of the following is a characteristic of managers who are "givers"? a. They encourage others to think for themselves. b. They constantly seek credit and recognition for their achievements. c. They tend to feel competitive with their colleagues and subordinates. d. They encourage the growth of others and expect some benefits in return.

a. They encourage others to think for themselves.

Which of the following statements is true of B Lab certification for benefit corporations? a. It is a must for firms seeking to monitor employee activities. b. It helps companies avoid unintentional greenwashing. c. It is a must for firms seeking to become benefit corporations. d. It helps companies prioritize financial goals over social goals.

b. It helps companies avoid unintentional greenwashing.

Which of the following statements is true of individuals at the postconventional level of ethical maturity? a. They are guided by external rewards and punishments. b. They will disobey rules or laws that violate their internal set of values. c. They work toward avoiding detrimental personal consequences. d. They give high importance to the expectations of significant others.

b. They will disobey rules or laws that violate their internal set of values.

A certain firm believes in providing its employees the best facilities. It decides to serve imported and expensive Colombian coffee and a variety of continental cuisines in its cafeteria. In this scenario, the firm's decisions and beliefs pertain to the domain of: a. codified law. b. free choice. c. ethical responsibility. d. compensatory justice.

b. free choice.

As one of the top managers at DropLabs, Henry ensures that all his employees are given the right to speak freely with their managers and higher-ups to voice their concerns. He also ensures that employees are not monitored on days they are not at work. Henry believes that employees are most productive when they are allowed to choose the projects they want to work on, provided they have the skill set and the experience to perform the job. In the context of the various ethical decision-making approaches, Henry's beliefs and actions are consistent with those asserted by the: a. justice approach. b. moral-rights approach. c. utilitarian approach. d. practical approach.

b. moral-rights approach.

In the context of ethics, which of the following sets of parameters constitutes the triple bottom line that is used to measure an organization's sustainability performance? a. Customers, investors, and employees b. Mission, plan, and action c. People, planet, and profit d. Model, machine, and market

c. People, planet, and profit

Which of the following scenarios represents an ethical dilemma? a. Asmaria importing wheat from another country that has surplus grain production and export-friendly laws b. Athiya pledging her eyes and kidneys for donation after her death c. Source PX outsourcing production to a third world country where no rules against child labor exist d. EarthGuard Inc. dealing with the sale of lands that belong to the state and are publicly owned

c. Source PX outsourcing production to a third world country where no rules against child labor exist

Jessica is a recent graduate. She begins her first job at a publishing house as a trainee editor. Jessica's manager is a highly authoritative person who closely monitors her performance. Jessica believes that if she obeys her manager's instructions, she can avoid harmful personal consequences. In the context of ethics, Jessica is at the _____ of moral development. a. conventional level b. postconventional level c. preconventional level d. principled level

c. preconventional level

In the context of ethics, research has shown that people will work harder and more effectively under _____, in which leaders put others' interests and needs above their own. a. contingent leadership b. authoritative leadership c. servant leadership d. pragmatic leadership

c. servant leadership

Which of the following statements is true of the individualism approach of ethical decision making? a. In theory, it does not ultimately serve the greater good. b. It is highly popular in the group-oriented society of today. c. It contends that people have the right to speak freely. d. It is easily misinterpreted to support immediate self-gain

d. It is easily misinterpreted to support immediate self-gain

Greenwashing occurs when a company tries to portray itself as more _______________ than it actually is

environmentally minded

A group of executives (and sometimes lower-level employees as well) charged with overseeing company ethics by ruling on questionable issues and disciplining violators.

ethics committee

for-profit organization that has a stated purpose that includes creating a material positive impact on society; is required to consider the impact of all decisions not only on shareholders but on employees, the community, and the environment; and voluntarily holds itself to high standards of accountability and transparency

Benefit Corporation

5 Frameworks for Ethical Decision Making

1. Utilitarian Approach 2. Individualism Approach 3. Moral-Rights Approach 4. Justice Approach 5. Practical Approach

A _____________ is a for-profit organization that has a stated purpose that includes creating a material positive impact on society; is required to consider the impact of all decisions not only on shareholders but on employees, the community, and the environment; and voluntarily holds itself to high standards of accountability and transparency.

Benefit corporation

Claire has been described by her subordinates as being a servant leader. Which of the following traits would best describe Claire's approach to leadership? Claire takes her favorite employees out to lunch on a regular basis. Claire encourages the growth of others, while expecting nothing in return. In order to make her look good, Claire withholds information from her boss. Claire routinely donates a part of her salary to a local charity.

Claire encourages the growth of others, while expecting nothing in return.

If a person has a high need for success or approval, which of the following actions would be taken? Not blaming others when mistakes are made Balancing concern for the individual with concern for the common good Matching behavior with values Conforming to the expectations of good behavior as defined by others

Conforming to the expectations of good behavior as defined by others

refers to following organizational policies and practices that both enhance the economic success of a company and advance the economic and social conditions of the communities in which the company operates.

Conscious Capitalism

requires that different treatment of people not be based on arbitrary characteristics (Ex: gender)

Distributive Justice

occurs when a company tries to portray itself as more environmentally minded than it actually is

Greenwashing

Which of the following statements does not describe a high level of moral development? An individual's behavior follows universal principles of justice. Individuals will disobey a law if it violates their principles. Individuals behave in such a way as to obtain money, power, or privileges. Internal values are more important than any other consideration.

Individuals behave in such a way as to obtain money, power, or privileges.

moral decisions must be based on standards of equity, fairness, and impartiality

Justice Approach

individual who must make an ethical choice in an organization

Moral Agent

favoring colleagues and family members, slowly becoming unethical

Nepotism

bases decisions on prevailing standards of the profession that larger society, taking the interests of all stakeholders into account

Practical Approach

- Concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences - Managers use autocratic or coercive leadership style - Ex: if you do something illegal you're going to prison - Autocratic/coercive

Preconventional Stage

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time - Helps managers identify or prioritize the key stakeholders related to a specific issue or project

Stakeholder Mapping

managers, left on their own, will act as responsible stewards of the assets they control - Theory Y

Stewardship Theory

ability to generate wealth without compromising environmental responsibility and social stewardship, thus meeting the current and future needs of stakeholders while preserving the environment and society so that future generations can meet their needs as well

Sustainability

measuring an organization's social performance, its environmental performance, and its financial performance (people, profit, planet)

Triple Bottom Line

A toll-free confidential ethics hotline allows employees to report questionable behavior, as well as seek guidance concerning ethical dilemmas. True False

True

B Lab certification is mandatory for companies that wish to incorporate as benefit organizations. True False

True

A manager who oversees all aspects of ethics and legal compliance.

chief ethics officer

formal statement of a company's values concerning ethics and social issues; it communicates to employees what the company stands for.

code of ethics

The idea of "equal pay for equal work" by men and women is an expression of __________

distributive justice

Which of the following traits are not associated with servant leadership? A manager places service to others before his/her self-interest. A manager keeps information to oneself in benefit of self-interest. A manager listens to others in order to get the information he/she needs. A manager freely encourages other to think for themselves.

A manager keeps information to oneself in benefit of self-interest.

Which of the following statements does not describe a low level of moral development? A person takes responsibility and holds others accountable. A person will do anything it takes to get a pay raise. A person acts dishonestly. A person follows the rules to avoid punishment.

A person takes responsibility and holds others accountable.

moral hazards occur when agents are allowed to act on behalf of the principals - Assumption: "agents are self-interested" - Principal: shareholder, voter, stock broker - Agent: manager, politician, investor

Agency Theory

having their social and environmental performance assessed and verified by the independent nonprofit organization and making that verified performance transparent helps companies avoid unintentional greenwashing

B Lab

refers to following organizational policy and practices that both enhance the economic success of a company and advance the economic and social conditions of the communities in which the company operates

Conscious capitalism/shared value approach

management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization -Elements: o Mission statements/service a purpose o Long-term mindset o Stakeholder focus

Corporate social responsibility (CSR)

Which of the following stakeholders are primarily concerned with the new stores' location and prices of goods in the stores?

Customers

Doug, as a new project manager, has been described by his subordinates as not being a servant leader. Which of the following items is an example of Doug not being a servant leader? Doug asks his team how he can help them on a difficult project, and then follows through on their requests. Doug tells his employees that he needs to know everything that is going on in the department, especially if someone is not buying in to the project goals. Doug orders lunch to be brought in from a local restaurant, as means of thanking his employees while working on a project with a tight deadline. Doug uses the last five minutes of every meeting to praise team members by highlighting what they have contributed to the project.

Doug tells his employees that he needs to know everything that is going on in the department, especially if someone is not buying in to the project goals.

situation in which all alternative choices or behaviors have potentially negative consequences

Ethical Dilemma

the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong, sets a standard as to what is good or bad in conduct or decision making

Ethics

fundamental and universal set of principles which serve to evaluate lower-order norms, reaching to the root of what is ethical for humanity

Hypernorms

human being have fundamental rights and liberties that cannot be taken away by individual's decision a. Choose decision that best maintains the rights of those affected by it b. Avoid interfering with the right to privacy, free consent, freedom of speech, etc. c. Some are protected by the constitution

Moral-Rights Approach

- Guided by internal set of values based on universal principles of justice - Internal values become more important than the expectations of significant others - Managers of higher stages of moral development have an influence on followers - Only 20 percent of American adults reach the this stage of moral development - Able to act in an independent, ethical manner regardless of expectation from others inside or outside the organization - Leaders of high moral reasoning stood out as ethical role models whose behavior and communications attracted followers' attention - Transforming, or servant leadership - Empowered employees, full participation

Postconventional

employees, investors, shareholders, customers, suppliers

Primary Stakeholders

requires that rules be administered fairly (stated and enforced impartially), most up-to-date

Procedural Justice

any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions (employees, customers, shareholders, and so forth)

Stakeholder

moral behavior produces the greatest good for the greatest number a. Jeremy Bentham and John Stuart Mill b. Leads to probabilistic cost/benefit analyses c. Might lead to ethical dilemmas when outcomes are non-monetary

Utilitarian Approach