MGT 300: Chapter 3
What are two requirements established by the Sarbanes-Oxley Act of 2002?
A company's CEO and CFO must certify the accuracy of the company's financial reports. and An organization must put procedures and guidelines in place for audit committees.
Which of these employees is taking natural capital into consideration when making their decision?
As the department head, Trevor decides to stop sending company waste to the landfill and do a better job of recycling.
Place the following obligations of a corporation (as identified by 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.
Being a good global corporate citizen, Being ethical in its practices, Obeying the law, and Making a profit
_____ forces are influences on an organization arising from changes in the characteristics of the population, such as age, gender, or ethnic origin.
Demographic
_____ forces consist of conditions such as unemployment, inflation, interest rates, and economic growth that may affect an organization's performance.
Economic
True or false: Ethical standards do not vary among countries or cultures.
False
True or false: Unlike generations before them, Millennials have little concern for the environment and are more interested in profit over planet.
False
Postconventional
Follow internal values and standards
Conventional
Generally adhere to the expectations of others
_____ forces are changes in the economic, political, legal, and technological global system that may affect an organization.
International
Which of these employees is involved in an ethical dilemma?
Jonah is deciding if he should add two hours to his time sheet for travel to a client meeting because his company does not reimburse for travel time.
Which employee is demonstrating ethical behavior?
Jordan did not accept a gift from his salesperson because he could tell it was a bribe to get him to buy products from the company.
What are four of the groups that make up part of the task environment?
Local communities, Distributors, Government regulators, and Strategic allies
Preconventional
Obey managers to avoid consequences
Which of these organizations are considered special-interest groups? Choose all that apply.
People for the Ethical Treatment of Animals and Mothers Against Drunk Driving
The passage of the US Patient Protection and Affordable Care Act during the Obama administration and its impact on employers is an example of which force?
Political-legal
What is the BEST example of a sociocultural force affecting an industry?
Sales of organic fruits and vegetables increase because more people want to eat healthier.
Which of these are forces within an organization's general environment? (select all that apply)
Sociocultural, International, Demographic, Technological, Economic, and Political-Legal
Which broad term identifies anyone impacted by a business, including but not limited to stockholders, employees, and customers?
Stakeholders
What is an example of an international force that might affect US organizations?
The economic integration of the European Union
True or false: Local communities can be affected greatly by the entrance or exit of large businesses.
True
_____ are the relatively permanent and deeply held underlying beliefs that help determine a person's behavior.
Values
_____ sometimes risk their jobs by coming forward about organizational misconduct and thus need to be protected.
Whistle-blowers
What are three examples of demographic forces that can affect an industry?
a decline in population size, a rise in church attendance, and a decrease in marriage rates
What are the three levels of personal moral development proposed by Kohlberg?
acting according to internal values, obeying the rules, and following others' expectations
When companies link up with one another in order to realize certain advantages, they are known as strategic _____.
allies
In most for-profit and nonprofit organizations, the _______ hires the chief executive of the organization.
board of directors
Unethical acts intended to create an unfair advantage or help an employee attain benefits they would not otherwise be entitled to receive are known as workplace _____.
cheating
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.
clawback
A formal set of standards guiding an organization's actions is called a _____.
code of ethics
Select all of the statements that accurately represent Hurley's views on the most important crisis in business today.
companies may think certain organizations are ethical, but that does not mean they should trust them, what is important is that organizations deliver every day on what they promise, and in business today, there is a crisis of trust
Four restaurants that are all seeking to attract the same customers would be categorized as _______.
competitors
The people or organizations that vie with your company for customers or resources are known as _____.
competitors
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
Sofia paid for a haircut and some hair-care products at a local salon. In the task environment, Sofia would be classified as a _______.
customer
Those who pay to use an organization's services or to buy their goods are called ______.
customers
Recent trends show that the percentage of the labor force represented by unions has _____.
decreased
Forward-thinking organizations tend to consider ______ as the most important resource a company has.
employees
In modern organizations, _____ are the most important resource.
employees
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
Behavior that is accepted as proper according to a society's prevailing values is known as _______ behavior.
ethical
An organization's standards of right and wrong that influence employee behavior are referred to as _______.
ethics
Organizations can promote _____ by creating a strong ethical climate, screening prospective employees, and instituting ethics codes and training programs.
ethics
Millennials in the workforce: (select all that apply)
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, and want work/life balance
The Sarbanes-Oxley Reform Act was established to monitor ______ of public institutions.
financial records
Vondra believes that if her company created a problem for the local farm community by rationing water supplies, then her company needs to give those farmers grant money so they can get back on their feet. Vondra is advocating _____ corporate social responsibility.
for
The macroenvironment is also known as the _______ environment.
general
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.
individual
One flaw in the _____ approach to ethical decision making is that one person's short-term self-gain may not in fact be good for everyone in the long term.
individual
People who buy or sell stock illegally based on confidential company information are engaging in _____.
insider trading
A social audit
is a systematic assessment of a company's performance in implementing socially responsible programs.
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
A distributor is sometimes referred to as a(n)
middle man
The _____ approach to ethical decision making is guided by respect for the fundamental rights of human beings.
moral-rights
The value of resources such as topsoil, air, water, and genetic diversity, upon which humans depend, is known as _______ capital.
natural
The ______ of an organization consist of all those who can claim it as their legal property.
owners
Marta and her sister Ingrid co-own an organic food stand at the local public market. What type of ownership does this represent?
partnership
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
Changes in the way politics shape laws and laws shape the opportunities for and threats to organizations are called ______ forces.
political-legal
A company's triple bottom line represents which three aspects?
profit, planet, and people
Suppliers are people or organizations that
provide raw materials, services, equipment, labor, or energy to other organizations.
The moral-rights approach to solving ethical dilemmas is guided by _____.
respect for human rights
What are three ways the text suggests a company can promote high ethical standards?
screen prospective employees and dismiss those who are irresponsible, institute a code of ethics to provide guidelines for employees, and create a strong ethical climate by implementing policies to be used on a daily basis
What are two functions of the board of directors for a company?
set overall strategic goals for the firm and approve salaries of top management
A manager's responsibility to take actions that benefit both society and the business is known as _____ responsibility.
social
The ten groups that present a company with its daily tasks to handle represent the company's _____ environment.
task
What are two examples of economic forces within a company's general environment?
the unemployment rate and bank interest rates
According to Fordham professor Hurley, there is not a crisis of ethics in business today but a crisis of _____.
trust
An employee organization that represents hourly workers as opposed to salaried employees is called a(n) ______.
union
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
Which approach to deciding ethical dilemmas asserts that an ethical decision should be guided by respect for impartial standards of fairness and equity?
Justice approach
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
Diversity in the US workforce is increasing in terms of race, ethnicity, and age groups. These are all examples of _____ forces.
demographic
A person or an organization that helps another organization sell its goods and services to customers is called a(n)
distributor.
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
Banks, savings and loans, and credit unions are all examples of _______ institutions and are stakeholders within the task environment.
financial
A company's external environment consists of which two environments?
general and task
Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected.
governance
Federal agencies that establish ground rules under which organizations operate are called _______.
government regulators
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
The act of contributing money in order to benefit society is referred to as _______.
philanthropy
If you purchase shares of stock in a company, you are a(n) _____ in that company.
stockholder
The board of directors for a for-profit organization would be elected by the ______.
stockholders
Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone are known as _______.
strategic allies
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.
supervision
A company or person that provides raw materials, services, equipment, labor, or energy to another organization is called a(n) _____.
supplier
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
A company's triple bottom line measures which aspects of its performance? (select all that apply)
social, financial, and environmental
A social audit is a systematic assessment of a company's performance in implementing _______.
socially responsible programs
A(n) _____ force represents the influences and trends originating in the human relationships of a society that may affect industries.
sociocultural
If you run a one-person operation with no other investors or employees, your company is a(n):
sole proprietorship
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
Government regulators are considered as part of a firm's _____.
stakeholders
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.
technological
New developments in methods for transforming resources into goods or services are called _______ forces.
technological
An employee who reports organizational misconduct to the public is known as a(n) _____.
whistle-blower
According to free-market economist Friedman, what is the only social responsibility of a business?
Making profits
_____ groups try to influence specific issues, some of which may affect your organization.
Special-interest
What are actions your book suggests that individuals can take to become more ethical consumers?
don't purchase items that aren't ethically made or sourced, purchase fair trade items, don't buy knockoff items, and provide your own bags at the grocery store
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
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
The people inside of an organization who have an important stake in how it performs are the organization's _____ stakeholders.
internal
Values and _____ are the underpinnings for organizational ethics and ethical behavior.
value systems