Principles of Management Test 2 [Ch. 3+4] - Loes

For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making

must be enforced by rewards for proper behavior and punishments for unacceptable behavior.

Which of the following refers to 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?

Ethical issue

When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups is

reduced

If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is

increased.

The phrase caveat emptor means

let the buyer beware.

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

the overall moral climate of your organization.

Ethical violations destroy

trust

What is the nature of the organization's internal environment?

All factors that make up the organization, such as the owners, managers, employees, and board of directors

Which of the following characteristics relates to the nature of the management environment?

All of those factors that affect the operation of the organization

In the United States, if a businessperson brought an elaborately wrapped gift to a prospective client on their first meeting, it might be viewed as

a bribe.

In analyzing the relationship between ethics and social responsibility, ethics may be viewed as

a component of social responsibility.

For businesspersons to be ethical, they must strive for success while

being fair, just, and trustworthy.

The group in a corporation that has legal responsibility to represent the stockholders is

the board of directors.

What name is given to 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?

task environement

You own a gourmet restaurant in Atlanta. You send your chef, Pierre LePeachtree, to a major international restaurant-owners' meeting so he can find out what some of the hot new entrees are around the world. You are being sensitive to the

task environment.

A __________orientation type of control system requires that employees learn and pledge to a specific type of conduct.

values

The role of management in fostering ethical behavior in an organization is extremely important because managers

who ask employees to do something wrong have a powerful influence.

According to research, the most important factor affecting daily ethical decisions at work is the

work group or the perceived ethicalness of the work group.

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

task environment.

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?

Political-legal dimension

Which of the following refers to all of the factors outside the organization that may affect the managers' actions?

External environment

Within the general environment, which of the following refers to the nature of the relationship between various areas of government and the organization?

Political-legal dimension

Understanding external factors is important to managers, equally important is knowing ____________.

How to respond to the factors.

What term describes groups that have a less formal connection to the organization, such as environmentalists, special interest groups, and the media?

Secondary stakeholders

What are potential new competitors?

Companies not currently operating in a business's industry but that have a high potential for entering the industry

Which of the following refers to those who purchase an organization's goods and/or services?

Customers

What name is given to the overall condition of the complex interactions of economies throughout the world?

Economic dimension

Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?

Ethics audit

Which of the following characteristics relates to codes of ethics?

Formalized rules and standards that describe and delineate what the organization expects of its employees

The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?

Global

Which of the following characteristics relates to suppliers?

Organizations and individuals who provide resources to other organizations

Which of the following characteristics relates to business ethics?

Principles, values, and codes of conduct that define acceptable behavior in business

What name is given to the obligation a business assumes to maximize its positive impact and minimize its negative impact on society?

Social responsibility

Which external factor is the hardest to forecast?

Socio-cultural

What term describes goods or services that may be used in place of those furnished by a given business?

Substitutes

A managerial decision becomes an ethical issue when

accepted rules no longer apply, and the person must use his or her own moral standards.

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.

compliance

The fact that Americans are becoming older and more affluent is an example of

demographic characteristics.

When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of

employee relations

The task environment includes all of the following except

environmentalists.

In a situation where the customer can choose an identical product from a large number of financial institutions, such as a Visa credit card, the customer's influence on the organization's operations is

great

Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers

have little control over the restaurants.

Regarding a business' resources, having ____________ is optimal.

many suppliers

Social responsibility is the obligation a business has to

maximize its positive impact on society and minimize its negative impact

A set of principles that describe what a person believes is the right way to behave is called

moral philosophy.

The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the

political element of the political-legal dimension.

While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually

promote trust and learning in an organization.

The greater a person's exposure to unethical behavior, the greater is the likelihood that

the person will behave unethically.

The most accurate definition of the technological dimension of the general environment is

the process of changing inputs to outputs.