BUS 100 WEEK 4,5,6
Scholars found that spirituality affects employee and organizational performance in what way
Positively
People everywhere depend on ethical systems to tell them whether their actions are
Right or wrong
A large sporting goods store that raised the age for purchase of some firearms in response to public concerns for gun control were seen by detractors as
Risking their reputation by engaging in politics
Businesses are expected to be ethical in their relationships with
Stockholders. Customers. Competitors
The core components upon which a company's ethical performance depends include
The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture
People's ethical beliefs come from:
Their religious background, family, and education
Cooperation between business and government often occurs when
They encounter a common problem or enemy
Investors may receive an economic benefit from the ownership of stock by receiving:
dividends and capital gains
When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:
Compliance and Integrity.
Which political action strategy seeks to gain support from other affected organizations to better influence policymakers
Constituency-building strategy.
Which of the following is an example of fulfilling social objectives through stock ownership?
Divesting from Chinese companies that made products using forced labor.
The directors of a company are a central factor in corporate governance because they
Exercise formal legal authority over company policy.
An argument in support of high executive compensation is:
High salaries provide an incentive for innovation and risk-taking.
Why should business be ethical
Most people want to act in ways that are consistent with their own sense of right and wrong. Ethical behavior protects business firms from abuse by unethical employees and competitors. Society's stakeholders expect it from businesses.
Government regulations help balance negative externalities such as
No smoking rules enforced to mitigate the effects of second-hand smoke
Proponents of business as a political participant argue
A pluralistic system invites many participants; and business is a vital stakeholder of government.
Government's role is to create and enforce laws that
Balance the relationship between business and society
Public policies and government regulations are shaped by
Business Special interest groups. Government.
The board committee that administers and approves salaries and benefits of high-level managers in a company is called
Compensation.
Which ethical criterion is described by the idea that a company should strive for efficiency
Egoism
Which of the following are examples of natural monopolies
Electric utilities and railroads
The unspoken understanding among employees of what is and is not acceptable behavior is called
Ethical climate
An argument that opposes the idea of high executive pay is
High salaries divert resources that could be used to invest in the business.
Which of the following is a key feature of effective boards of directors
Hold regular meetings without the CEO present.
One of the main reasons that American executives are paid so much is:
Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.
A common tactic in a financial-incentive political strategy is
Political contributions
A recent study found that, compared to the 1980s, managers today place what importance on moral values, such as honesty and forgiveness
Slightly more important.
Around the world, government
Sometimes cooperates and sometimes is in conflict with business.
Which of the following statements is not true about shareholders
They own equal shares of company assets
A legal right of shareholders is:
To vote on members for the board of directors.