Principles of Management - Test 2 (CH 3&4) - Cate Loes

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.

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.

whistle blowing

occurs when employees expose an employers' wrongdoing (might occur internally or externally)

Supplier

organizations and individuals who provide resources to other organizations

which of the following characteristics relates to suppliers?

organizations and individuals who provide resources to other organizations

competitors

other organizations that produce similar, or in some cases identical, goods and services

board of directors

people who are elected by stockholders to ensure the corporation is managed to increase stockholder wealth.

utilitarianism

philosophy where believers eek the greatest satisfaction for the largest number of individuals

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

reduced

4 requirements of social responsibility

1. Financial viability 2. compliance with legal and regulatory requirements 3. ethics, principles, and values 4. corporate citizenship

Arguments against CSR (Milton Friedman)

1. every dollar donated is a dollar that could have been returned to shareholders 2. a business does not have the expertise to assess and make decisions about social responsibility 3. social problems are the responsibility for the gov. agencies and officials, not private businesses.

high barriers to entry

1. high entrance costs 2. economies of scale 3. lack of access to distribution channels 4. lack of technical expertise

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

All of those factors that affect the operation of the organization

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

Customers

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

External environment

2 parts of External Environment

General and Task Environment

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

Global

Technological

Knowledge and process of changing inputs to outputs - information security will affect

Business ethics

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

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

Substitutes

Within the general environment, what term describes the knowledge and process of changing inputs (resources, labor, and money) to outputs (goods and services)?

Technological Dimension

ethics audit

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

Environment

all of those factors that affect the operation of an organization

ethical issues

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

Potential new competitors

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

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

Opportunity

conditions that limit unfavorable behavior and/or reward favorable behavior

Operations

could result in covering up unethical conduct, which can easily turn into illegal conduct -covering up safety defects or lying about quality

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

Global

factors in other countries that affect the organization

Task Environment

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

Internal Environment

factors that make up the organization

ethics programs

focus on values that provide more abstract core ideals such as accountability and teamwork

deontology

focuses on human rights and values and on the intentions associated with a particular behavior

code of ethics

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

substitutes

goods or services that may be used in place of those furnished by a given business Ex. Plastic and glass

organizational factors

how an employee is shaped by the ethical climate of the organizational policies set by supervisors and the conduct of coworkers

accountability

how well the workplace decisions are aligned with a firm's strategic direction

compliance programs

identifies ethical issues and develops rules that require employees to adhere to mandatory conduct

Sociocultural

includes demographics, attitudes, and the values of the society within which an organization operates

The phrase caveat emptor means _______

let the buyer beware

A good way to judge the ethics of a decision is to ______

look at the situation from several viewpoints.

Strategic or institutional managers

managers involved with setting the overall direction of the organization

technical managers

managers that serve under strategic managers and act to coordinate the various levels

general environment

the broad complex factors that affect all organizations

organizational relations

relationships with subordinates, co-workers, and superiors can result in ethical issues, such as maintaining confidentiality in personal relationships, meeting obligations, responsibilities, etc.

values orientation

relies on shared values between the company and the employees -ideals can be interpreted differently - room for unethical behavior -sharpens employees' ability to reason ethically

compliance orientation

requires that employees learn and pledge to a specific type of conduct -focuses on consequences -reduces employee's need to interpret, eliminating the opportunity for unethical behavior

employee relations

responsible for maintaining a safe, healthy, and productive work environment for all employees. -testing procedures used hiring personnel may violate individual rights

individual values (moral philosophies)

sets of principles that describe what a person believes are the right ways to behave

owners

someone who has control over a company -sometimes shareholders

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

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

the board of directors

external environment

the factors outside of the organization that may affect the manager's actions

corporate governance

the formal systems of oversight, accountability, and control for organizational decisions and resources

Political-Legal Environment

the nature of the relationship between various areas of government and organization

social responsibility

the obligation a business assumes to maximize its positive impact and minimize its negative impact on society

Economic

the overall condition of the complex interaction of economies throughout the world -includes interest rates, inflation, unemployment rates

employees

the people who make the products and provide the services that allow a firm to exist

managers

those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization's activities to reach its objectives

Customers

those who purchase an organization's goods and/or services 3 types: - current - potential - competitorss

operation manager

transform the organizational inputs into finished outputs (supervisors)

corporate citizenship

voluntary activities to strategically align the organization with social issues and contributions to philanthropic causes

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.

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 _____

your failure to cope with the technological dimension of the general environment.