Business Administration 141 - Chapter 3 Questions

Select all of the statements that accurately represent Hurley's views on the most important crisis in business today.

-what is important is that organizations deliver every day on what they promise -companies may think certain organizations are ethical, but that does not mean they should trust them -in business today, there is a crisis of trust

What are actions your book suggests that individuals can take to become more ethical consumers?

-don't buy knockoff items -don't purchase items that aren't ethically made or sourced -purchase fair trade items -provide your own bags at the grocery store

An ethical dilemma in an organization:

-often involves choosing between economic performance and social performance -forces you to decide whether to pursue a course of action that may be good for you or the company, but that is unethical and possibly illegal

Place the following obligations of a corporation (as identified by Archie B. Carroll) in order, starting with the highest-level responsibility at the top of the list and placing the most fundamental obligation at the bottom of the list.

1. Being a good global corporate citizen 2. Being ethical in its practices 3. Obeying the law 4. Making a profit

True or false: Ethical standards do not vary among countries or cultures.

False

True or False: Milton Friedman would have been highly supportive of today's notion of corporate social responsibility.

False Reason: Milton Friedman believed that the only corporate social responsibility was to make money for shareholders. This is in stark contrast to modern conceptualizations of corporate social responsibility.

Which of the following aspects of a company's performance are measured by the company's triple bottom line?

Financial Social Environmental

Select four groups that make up the task environment

Government regulators Strategic allies Distributors Local communities

According to free-market economist Friedman, what is the only social responsibility of a business?

Making profits

Which generation seems more concerned with finding work/life balance than other generations?

Millennials

Which of these are forces within an organization's general environment?

Socio-cultural Political-legal Economic Technological Demographic International

Which broad term identifies anyone impacted by a business, including but not limited to stockholders, employees, and customers?

Stakeholders

Millennials in the workplace:

are concerned about a corporation's ethics, motives, and methods expect more from the organizations they work for want work/life balance expect more from the organizations they do business with

The purpose of a code of ethics is to

clearly state top management's expectations for all employees

Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as _______.

climate change

A formal set of standards guiding an organization's actions is called a _____.

code of ethics

Running a company and protecting the interests of owners and other stakeholders is known as _____.

corporate governance

Today, it is stressed even more that companies go beyond just making a profit and take into consideration the environment and philanthropic initiatives. This is known as practicing ______.

corporate social responsibility

An organization's internal stakeholders consist of

employees, owners, and the board of directors.

A(n) _____ dilemma is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal.

ethical

An organization's standards of right and wrong that influence employee behavior are referred to as _______.

ethics

People who are outside an organization but are still affected by the organization are called the __.

external stakeholders

Purchasing _____ items increases the chances that your money will help provide a decent wage for the people who made them.

fair trade

An organization's macroenvironment is also known as __ environment.

general

A company's external environment consists of which two environments?

general task

The rise in the average temperature near the Earth's surface due to an increase in greenhouse gases in the atmosphere is called _____ and is one aspect of climate change.

global warming

Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected.

governance

As the CEO of a pharmaceutical company, Simone learned that the government was about to block the import of one of the company's biggest-selling drugs. She decides to sell her shares of stock before the information is made public. Since she used confidential information to make her decision, she is guilty of _____.

insider trading

People who buy or sell stock illegally based on confidential company information are engaging in _____.

insider trading

The people inside of an organization who have an important stake in how it performs are the organization's __ stakeholders.

internal

According to Archie B. Carroll, the responsibilities of an organization can be arranged as a pyramid, with _____ at the base and _____ at the top.

making a profit; corporate citizenship

Target donates millions of dollars each year in education-related grants for arts and cultural experiences, field trips, and reading programs, as well as grants to promote public safety. This is an example of _______.

philanthropy

The act of contributing money in order to benefit society is referred to as _______.

philanthropy

A company's triple bottom line represents which three aspects?

planet profit people

A manager's responsibility to take actions that benefit both society and the business is known as _____ responsibility.

social

A company's decision to move its operations out of the country will affect its employees, owners, suppliers, distributors, and everyone else who has an interest in the business. All of these groups together make up the company's __.

stakeholders

The ten groups that present a company with its daily tasks to handle represent the company's _____ environment.

task

According to Fordham professor Hurley, there is not a crisis of ethics in business today but a crisis of _____.

trust

Managers often use a(n) _____ approach when making organizational decisions - using financial performance such as profit as the best definition of what constitutes an ethical choice for the company.

utilitarian

The ______ approach to solving ethical dilemmas involves ethical behavior being guided by what will result in the greatest good for the greatest number of people.

utilitarian