Principles of Management Ch.3

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

Making profits

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

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

general task

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

governance

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

people planet profit

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

philanthropy

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

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

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

trust

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

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.

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

What are four of the groups that make up part of the task environment?

Government regulators Local communities Distributors Strategic allies

True or false: Unlike generations before them, Millennials have little concern for the environment and are more interested in profit over planet.

False

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

Millennials

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

Stakeholders

Which of these are forces within an organization's general environment? (select all that apply)

Technological Political-Legal Sociocultural Demographic International Economic

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

A company's triple bottom line measures which aspects of its performance? (select all that apply)

environmental social financial

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

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

false

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

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

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

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

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 In business today, there is a crisis of trust