Principles of Management - Test 2 (CH 3&4) - Cate Loes
Social responsibility is the obligation a business has to _____
maximize its positive impact on society and minimize its negative impact
A set of principles that describe what a person believes is the right way to behave is called ______
moral philosophy.
For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making __________
must be enforced by rewards for proper behavior and punishments for unacceptable behavior.
whistle blowing
occurs when employees expose an employers' wrongdoing (might occur internally or externally)
Supplier
organizations and individuals who provide resources to other organizations
which of the following characteristics relates to suppliers?
organizations and individuals who provide resources to other organizations
competitors
other organizations that produce similar, or in some cases identical, goods and services
board of directors
people who are elected by stockholders to ensure the corporation is managed to increase stockholder wealth.
utilitarianism
philosophy where believers eek the greatest satisfaction for the largest number of individuals
When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups is
reduced
4 requirements of social responsibility
1. Financial viability 2. compliance with legal and regulatory requirements 3. ethics, principles, and values 4. corporate citizenship
Arguments against CSR (Milton Friedman)
1. every dollar donated is a dollar that could have been returned to shareholders 2. a business does not have the expertise to assess and make decisions about social responsibility 3. social problems are the responsibility for the gov. agencies and officials, not private businesses.
high barriers to entry
1. high entrance costs 2. economies of scale 3. lack of access to distribution channels 4. lack of technical expertise
Which of the following characteristics relates to the nature of the management environment?
All of those factors that affect the operation of the organization
Which of the following refers to those who purchase an organization's goods and/or services?
Customers
Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?
Ethics audit
Which of the following refers to all of the factors outside the organization that may affect the managers' actions?
External environment
2 parts of External Environment
General and Task Environment
The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?
Global
Technological
Knowledge and process of changing inputs to outputs - information security will affect
Business ethics
Principles, values, and codes of conduct that define acceptable behavior in business
What term describes goods or services that may be used in place of those furnished by a given business?
Substitutes
Within the general environment, what term describes the knowledge and process of changing inputs (resources, labor, and money) to outputs (goods and services)?
Technological Dimension
ethics audit
a comprehensive evaluation of a firm's ethics and compliance programs and its ethical decisions used to determine whether the program is effective
Environment
all of those factors that affect the operation of an organization
ethical issues
an identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical
Potential new competitors
companies not currently operating in a business's industry but which have a high potential for entering the industry
Within a ____________orientation type of control system, when employees understand that their behaviors will be met with consequences, either good or bad, they have little opportunity for ambiguous personal interpretation of how they should act within the company.
compliance
Opportunity
conditions that limit unfavorable behavior and/or reward favorable behavior
Operations
could result in covering up unethical conduct, which can easily turn into illegal conduct -covering up safety defects or lying about quality
When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of ______
employee relations
Global
factors in other countries that affect the organization
Task Environment
factors that have a direct effect on a specific organization and its managers, including customers, suppliers, competitors, substitutes, and potential new entrants to the industry
Internal Environment
factors that make up the organization
ethics programs
focus on values that provide more abstract core ideals such as accountability and teamwork
deontology
focuses on human rights and values and on the intentions associated with a particular behavior
code of ethics
formalized rules and standards that describe and delineate what the organization expects of its employees
substitutes
goods or services that may be used in place of those furnished by a given business Ex. Plastic and glass
organizational factors
how an employee is shaped by the ethical climate of the organizational policies set by supervisors and the conduct of coworkers
accountability
how well the workplace decisions are aligned with a firm's strategic direction
compliance programs
identifies ethical issues and develops rules that require employees to adhere to mandatory conduct
Sociocultural
includes demographics, attitudes, and the values of the society within which an organization operates
The phrase caveat emptor means _______
let the buyer beware
A good way to judge the ethics of a decision is to ______
look at the situation from several viewpoints.
Strategic or institutional managers
managers involved with setting the overall direction of the organization
technical managers
managers that serve under strategic managers and act to coordinate the various levels
general environment
the broad complex factors that affect all organizations
organizational relations
relationships with subordinates, co-workers, and superiors can result in ethical issues, such as maintaining confidentiality in personal relationships, meeting obligations, responsibilities, etc.
values orientation
relies on shared values between the company and the employees -ideals can be interpreted differently - room for unethical behavior -sharpens employees' ability to reason ethically
compliance orientation
requires that employees learn and pledge to a specific type of conduct -focuses on consequences -reduces employee's need to interpret, eliminating the opportunity for unethical behavior
employee relations
responsible for maintaining a safe, healthy, and productive work environment for all employees. -testing procedures used hiring personnel may violate individual rights
individual values (moral philosophies)
sets of principles that describe what a person believes are the right ways to behave
owners
someone who has control over a company -sometimes shareholders
You own a bakery that makes fine bran muffins, but you lose a customer to another bakery that offers him a 25 percent discount for similar muffins. You are facing a challenge in the ________
task environment
The group in a corporation that has legal responsibility to represent the stockholders is _____
the board of directors
external environment
the factors outside of the organization that may affect the manager's actions
corporate governance
the formal systems of oversight, accountability, and control for organizational decisions and resources
Political-Legal Environment
the nature of the relationship between various areas of government and organization
social responsibility
the obligation a business assumes to maximize its positive impact and minimize its negative impact on society
Economic
the overall condition of the complex interaction of economies throughout the world -includes interest rates, inflation, unemployment rates
employees
the people who make the products and provide the services that allow a firm to exist
managers
those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization's activities to reach its objectives
Customers
those who purchase an organization's goods and/or services 3 types: - current - potential - competitorss
operation manager
transform the organizational inputs into finished outputs (supervisors)
corporate citizenship
voluntary activities to strategically align the organization with social issues and contributions to philanthropic causes
The role of management in fostering ethical behavior in an organization is extremely important because managers
who ask employees to do something wrong have a powerful influence.
You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of _____
your failure to cope with the technological dimension of the general environment.