MGMT 405 - SB 4
What managerial attitude best exemplifies the moral rights rule?
"Do unto others as you would have them do unto you."
Why is it important to a community for a company to follow the laws and act ethically?
Because if a company fails due to illegal or unethical practices, it hurts the community
When companies make ethical and socially responsible decisions on behalf of their employees, what is the result?
Companies make decisions that protect, enhance and promote the welfare and well-being of their stakeholders.
What are the advantages of social responsibility? (Choose all that apply.)
It can improve a company's reputation. The more organizations act in socially responsible ways, the better the quality of life will be for the country as a whole. If all organizations adopt a caring approach, a climate of caring will pervade the wider society.
What would be an accurate statement regarding ethics and legality?
Just being legal does not make an action ethical.
How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business? (Choose all that apply.)
There would be more non-productive activity. Efficiency and effectiveness would decrease. Additional bargaining will be needed to conclude contracts.
Defensive
When managers are granted large stock options and bonuses even as company performance declines rapidly
Accommodative
When managers at older and more reputable companies, with much to lose, dissuade employees from acting unethically even when it would ensure their competitive advantage
Proactive
When managers seek ways to reduce operating costs to prevent layoffs to enable them to keep promises they make to employees
Managers using the utilitarian rule must first consider the types and levels of ______ various stakeholder groups.
benefits and harm to
Which of the following best describes the managers' primary concern as a stakeholder group?
deciding on a company's goals and how to use its recources
A company within a community contributes to its local ______.
economy
Managers using the moral rights rule consider the ______.
effects of an action on individuals' rights
The quandary people find themselves in when they have to decide if they should act in a way that might help another person or group even though doing so might go against their own self-interest defines a(n) ______ dilemma.
ethical
The utilitarian rule states that ______ _________ are those that produce the greatest for the greatest number of people.
ethical decisions
To strengthen a company's organizational culture, managers make good decisions when faced with ethical dilemmas by instilling in their employees ______.
ethical values
True or false: Ethical scandals concerning executive pay occur only in for-profit companies.
false
True or false: Making a decision concerning which stakeholder group's rights and expectations should be emphasized does not create an ethical dilemma for managers.
false
True or false: Societal ethics are standardized from country to country in nations throughout the world.
false
Unethical behavior can ruin business commerce, which in turn can lower a society's standard of living, because _______.
fewer goods and services are produced
What three company resources are managers responsible for in order to increase performance and, as a result, the company's stock price?
financial, capital, and human
When people's self-interests are at stake, their _____ ethics influence how they perceive their responsibilities and how they behave towards others.
individual
How much time would it take for managers to negotiate contracts in a society where stakeholders routinely cheat each other in comparison to negotiating contracts in an ethical society?
it would take more time
The _____ rule states that an ethical decision is a decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way.
justice
To enforce their views of right or wrong behavior, different groups in society lobby for ______.
laws
The stakeholder group responsible for choosing the strategic goals that the company should pursue in order to benefit all of the company's stakeholders is the ______.
managers
Who is it that provides their human capital—their skills, expertise, and experience—to the company and, therefore, has a claim or stake in the company?
managers
The ______ rights rule states that an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it.
moral
The ______ rule involves comparing the effects of potential actions to the rights of various stakeholder groups, then choosing the action that best protects all the groups' rights.
moral rights
Some non-profit organizations pay their top executives ______ per year, despite arguments that the compensation is excessive because it is a non-profit organization.
more than $1 million
Managers who will break the law to satisfy their own self-interest demonstrate the ______ approach. Managers who obey the law, but do nothing more than that to act in a socially responsible manner, exhibit the ______ approach.
obstructionist; defensive
The four main determinants of differences in ethics among people, employees, companies, and countries are organizational ethics: (Check all that apply.)
occupational ethics societal ethics individual ethics
Companies and their managers are guided by ______ ethics, which are the guiding practices and beliefs that managers use as the lens through which they view their responsibilities toward their stakeholders.
organizational
Societal ethics, occupational ethics, individual ethics, and _____ ethics are the four main determinants of difference in ethics among people, employees, companies, and countries.
organizational
Company founders are very influential in shaping the ______, as these are the guiding principles and beliefs that will shape the company's core and serve as a lens through which managers view their responsibility towards their stakeholders. (Choose all that apply.)
organizational ethics organization's code of ethics
What must society do first in order to punish undesired behavior?
pass laws
Individual ethics are ______ that determine how people view their responsibilities to other people and groups and how they should act in situations when their own self-interests are at stake.
personal standards and values
The ______ rule is that an ethical decision is one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think it is acceptable.
practical
Which ethical rule suggests communicating the decision to people outside the company?
practical
Unethical behavior generally results in a(n) _______ in efficiency, effectiveness, company performance, and national standards of living, well-being, and prosperity.
reduction
A company's ethics impacts its view of how it must protect, promote, and care for the welfare and well-being of all stakeholders and society as a whole. This obligation to make decisions that will offer such protections is referred to as the company's ______.
social responsibility
When _____ ethics are in play, members of a society treat each other with fairness, equity, and justice.
societal
A company's employees, customers, stockholders, suppliers, and distributors are considered the company's ______.
stakeholders
Employees, customers, suppliers, and distributors, and the community are all considered _______ because they are all affected by the way a company and its managers behave.
stakeholders
Owners of shares in a company are called ______.
stockholders
Stakeholders that provide an organization with inputs such as raw materials, components, contract labor, and clients are referred to as ______. This group expects to be paid fairly and promptly for their inputs.
suppliers
It is important to punish unethical behavior ___.
to keep others from engaging in their own unbridled self-interest.
True or false. Stockholders buy shares of companies and thereby become owners.
true
People are more willing to enter into a somewhat risky venture when they the person or group with whom they are entering the relationship.
trust
The ______ rule states that ethical decisions are those that produce the greatest good for the greatest number of people.
utilitarian
What is the outcome when ethical values and norms become a part of an organization's culture?
Organizational members resist self-interested action.
What is it called when a person has faith in the goodwill of another person, even if this puts them at risk?
Trust
Obstructionist
When managers knowingly seek to hide evidence from the public, such as that asbestos and/or tobacco causes lung cancer
Companies that want to be socially responsible, but tend to wait to have the need pointed out to them, have adopted the ______ approach. Those who seek out ways to help stakeholders before a problem is pointed out to them have adopted the ______ approach.
accommodative; proactive
Consider a situation in which people are faced with two opposing decisions: one could possibly go against people's self-interest, but may help a person or group; or one could possibly hurt someone, while helping oneself. This is called an ethical
dilemma
While managers may want to treat all stakeholders equally, in reality, they need to prioritize the treatment of the various stakeholder groups which may create an ethical ______ for managers.
dilemma
Suppliers expect fair and prompt payment for the purchase of their materials, and ______ expect to receive products from manufacturers at the agreed-upon quality and price.
distributors
Managers and employees must work to increase _____ in order to create loyal customers and attract new ones.
efficiency and effectiveness
Which stakeholders have a claim on and a stake in a company because of the productive resources they provide? (Check all that apply.)
executives stockholder managers
Managers have a claim on an organization because they bring to it their: (Choose all that apply.)
experience skills expertise
Customers are frequently regarded as the most critical stakeholder group for the company's success because ______.
if a company cannot attract customers to buy its products, it cannot stay in business
If unethical behavior is discovered by those in authority and goes unpunished, likely consequences of this may be:
increased cynicism and decreased morale among employees others in the organization feel they can act in the same manner
When standards are in place to guide people within the same profession, trade, or craft on how to conduct themselves while working on profession-related activities, this is referred to as _____ ethics
occupational
For members of a particular trade or craft, their profession's ______ ethics are the standards that govern how members should conduct themselves when performing work-related activities.
occupational (or work)
A company can act ethically toward employees and meet their expectations by creating an occupational structure ______.
that fairly and equitably rewards employees
What is the rule that describes ethical decisions in which a choice must be made to distribute or deny benefits among people and groups in a fair, equitable, or impartial way?
the justice rule
True or false: A specific behavior that is deemed illegal is not necessarily unethical.
true
True or false: Acting in a socially responsible manner can help a company by improving its reputation.
true
True or false: One principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.
true
Managers using the ______ rule first consider the types and levels of benefits and harm to various stakeholder groups. They should choose the course of action that provides the most benefits, or conversely does the least harm, to stakeholders.
utilitarian
