Management ch 3

What are the three levels of personal moral development proposed by Kohlberg? Conventional Controversial Postconventional Preconventional Preconversational

Conventional Postconventional Preconventional

Which of the following aspects of a company's performance are measured by the company's triple bottom line? (Select all that apply.) Environmental Financial Technological Social Ethical

Environmental Financial Social

Select four groups that make up the task environment. Government regulators Distributors Strategic allies Local communities Owners Board of directors

Government regulators Distributors Strategic allies Local communities

____ sometimes risk their jobs by coming forward about organizational misconduct and thus need to be protected. Insider traders Arbitrators Whistle-blowers Clawbacks

Whistle-blowers

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

governance

Local communities are important organizational stakeholders. In fact, if a community gives a company tax breaks in return for the promise of new jobs and the firm fails to deliver those jobs, the community may be able to institute a _____ and rescind the tax breaks. takeback proprietorship clawback union

clawback

The purpose of a code of ethics is to benchmark the organization against its ethical competitors test employees for integrity and honesty prevent the organization from experiencing clawbacks clearly state top management's expectations for all employees

clearly state top management's expectations for all employees

An organization's ethical _____ represents employees' perceptions about the extent to which the work environment supports ethical behavior. culture climate mix attitude

climate

A formal set of standards guiding an organization's actions is called a _____. benchmark vision statement code of ethics mission statement

code of ethics

The people or organizations that vie with your company for customers or resources are known as _____. suppliers stakeholders competitors regulators

competitors

Recent trends show that the percentage of the labor force represented by unions has _____. increased decreased remained constant

decreased

A person or an organization that helps another organization sell its goods and services to customers is called a(n) supplier. distributor. internal stakeholder. vendor.

distributor

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 corporate citizenship; ethical practices ethical practices; obeying the law corporate citizenship; profit

making a profit; corporate citizenship

Economist Paul Samuelson's view on corporate social responsibility was that organizations must be concerned with both social welfare and corporate profits. if a company is making a profit, it is, by default, being socially responsible. an organization's only social responsibility is to make a profit for shareholders.

organizations must be concerned with both social welfare and corporate profits.

in Samuelson's view, CEOs should support corporate social responsibility because it: enhances opportunities for offshoring promotes sales provides a favorable public image increases employees' attachment to the firm

promotes sales provides a favorable public image increases employees' attachment to the firm

Crowdfunding is defined as ______. placing all funds within one investment source placing all funds within many investment sources raising money by collecting many small amounts from many people raising money by obtaining one large sum from a wealthy source

raising money by collecting many small amounts from many people

The moral-rights approach to solving ethical dilemmas is guided by _____. individual long-term interests respect for human rights the greatest good for the greatest number of people respect for impartial standards of fairness

respect for human rights

Government regulators are considered as part of a firm's _____. stockholders partners strategic allies stakeholders

stakeholders

The board of directors for a for-profit organization would be elected by the ______. employees chief operating officer (COO) chief executive officer (CEO) stockholders

stockholders

Abusive _____ represents subordinates' perceptions of the extent to which their supervisors engage in the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact. misuse supervision theft cheating

supervision

Bio-Med Laboratories recently announced it had produced a new medication that would mitigate arthritis symptoms. This new medication is an example of a(n) _____ force. sociocultural technological demographic economic

technological

Which of the following economic forces within a company's general environment affect the company's performance? (Select all that apply.) Bank interest rates The profits of the company Product prices The unemployment rate

Bank interest rates The unemployment rate

What are two requirements established by the Sarbanes-Oxley Act of 2002? Legal action can be taken against any employee who violates human rights issues. A company's CEO and CFO must certify the accuracy of the company's financial reports. An organization must put procedures and guidelines in place for audit committees. An organization must offer shares of stock to all employees after one year of full-time employment.

A company's CEO and CFO must certify the accuracy of the company's financial reports. An organization must put procedures and guidelines in place for audit committees.

Select the five most common unethical workplace behaviors. Procedural injustice Abusive behavior Violating corporate Internet policies Misusing company time Employee theft Workplace cheating Interpersonal differences

Abusive behavior Violating corporate Internet policies Misusing company time Employee theft Workplace cheating

Which statement regarding ethical climates is TRUE? Managers have little or no effect on the ethical climate in an organization. An ethical climate significantly affects the frequency of ethical behavior. Ethical climates are unaffected by an organization's policies, procedures, and practices. The ethical climate of an organization is unrelated to employees' ethical behavior.

An ethical climate significantly affects the frequency of ethical behavior

A company's triple bottom line represents which three aspects? Production Planet People Profit Privacy Politics

Planet People Profit

The principal types of ownership are Stockholders Sole proprietorship Private investors Stakeholders Employee owners Partnership

Stockholders Sole proprietorship Private investors Employee owners Partnership

Which of these are forces within an organization's general environment? Physical Sociocultural Political-Legal Technological Demographic International Economic

Sociocultural Political-Legal Technological Demographic International Economic

When companies link up with one another in order to realize certain advantages, they are known as strategic _____. unions allies franchisees proprietors

allies

In modern organizations, _____ are the most important resource. employees customers machines computers

employees

Millennials in the workforce: (Select all that apply) expect more from the organizations they work for. are concerned about a corporation's ethics, motives, and methods. want personal success more than they want a happy life. want work/life balance. are more concerned with profit than social responsibility. expect more from the organizations they do business with.

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

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

false

An organization's macroenvironment is also known as its _____ environment. fixed general internal external

general

A company's external environment consists of which two environments? internal service general task

general task

In the __________ approach to solving ethical dilemmas, there is the assumption that people will act ethically in the short run to avoid others harming them in the long run. utilitarian justice moral-rights individual

individual

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 _____. whistle blowing fair trade benchmarking insider trading

insider trading

One consideration of the _____ approach to ethical decisions is whether an organization's policies - such as those governing promotions or sexual harassment - are administered impartially and fairly regardless of employee gender, age, ethnicity, religion, disability, or sexual orientation justice utilitarian individual moral-rights

justice

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. moral-rights individual utilitarian justice

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. justice utilitarian individual moral-rights

utilitarian

The popular television show Shark Tank shows the shark investors gaining ownership stake in businesses in exchange for providing the businesses with money. This money is a form of _____. venture capital cost of goods sold crowdfunding insider trading

venture capital