Chapter 4 Managing P and W

Some websites offer free streaming and downloading of movies, games, and music. Websites like these demonstrate that the pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way. This exemplifies a situation known as the

"tragedy of the commons"

In 2016, the average pay for a CEO was

10.8 million

_____ encourage employees to behave in a socially responsible manner.

Ethical organizational cultures

Which of the following statements is true about the role of organizational culture?

Ethics ombudspeople can provide guidance when organization members are uncertain about whether an action is ethical.

Which of the following statements is true about ethics?

Laws change to reflect the changing ethical beliefs of a society

Which of the following statements is true of organizational ethics

The individual ethics of a company's founders and top managers are especially important in shaping the organization's code of ethics.

Under the practical rule, a manager would not be reluctant to communicate a decision to people outside the company when

a typical person would consider the decision acceptable

The president at Protector's Insurance takes pride in the fact that his organization strives to behave legally and ethically. The company advocates an approach that tries to balance the interests of different stakeholders in relation to the claims of other stakeholders. What approach to social responsibility is the organization implementing?

accommodative

The _______ approach to social responsibility is most likely to be taken by a typical large U.S. company.e

accomodative

Which of the following is a method by which a company can act ethically toward employees and meet their expectations?

by creating an occupational structure that fairly and equitably rewards organization members for their contributions

The _______ stakeholder group is considered to be the most critical

customers

A company that expects its managers to behave ethically to the degree that they stay within the law is acting with a ______ approach.

defensive

Bryan is the manager of a company which has been judged as having the best corporate reputation for two years in a row, based on a survey of countrywide consumers. This company is well known for its

ethical culture

Dianna has witnessed her manager harassing a coworker on multiple occasions. Dianna knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job. This example illustrates a(n

ethical dilemma

A(n) ________ is a manager responsible for communicating and teaching ethical standards to all employees and monitoring their conformity to those standards.

ethics ombudsperson

Phil has noticed that his operations manager has been practicing unethical means to reap personal benefits at the expense of the company's customers. He will most likely approach the ________ to report the matter without fear of retribution.

ethics ombudsperson

Robert and his HR team have adapted several existing company policies. He is unsure if all these policies can be implemented on ethical grounds. His team can approach a(n) _____ to resolve the matter.

ethics ombudsperson

Which of the following stakeholder group's individual ethics are important in shaping the organizational code of ethics?

founders

When faced with an ethical dilemma as a manager, Sam tries to reflect on his upbringing to decide between right and wrong. Sam is reflecting on ______ ethics.

individual

When Bob was calculating the yearly bonuses for his employees, he paid particular attention to the individual employee scores too ensure that they were based on performance and not favoritism. Which ethical rule was Bob following?

justice

_____ have a claim on an organization because they bring to it their skills, expertise, and experience.

managers

Under the _____ rule, an ethical decision is one that best maintains people's fundamental privileges.

moral rights

Managers at Enron prevented employees from selling Enron shares in their pension funds while they sold hundreds of millions of dollars' worth of their own Enron stock. This illustrates the _____ approach to social responsiblitiy

obstructionist

The managers of Lehman Brothers, whose bankruptcy helped propel the 2008-2009 financial crisis, used loopholes in U.K. law to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition. Which of the following approaches to how to be socially responsible is illustrated from this example?

obstructionist

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n) _____ approach to social responsibility.

obstructionist

Which of the following approaches to a commitment to social responsibility is characterized by low levels of socially responsible behavior?

obstructionist

Bob gave a talk to his employees about standards that govern how members of their profession should conduct themselves. He was talking about ______ ethics.

occupational

Companies and managers that take a(n) _____ approach go out of their way to learn about the needs of different stakeholder groups.

proactive

Companies that go out of their way to learn about the needs of different stakeholders and use organizational resources to promote their interests are using the _____ approach.

proactive

Companies that use the _______ approach are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics testing; and the reduction of crime, illiteracy, and poverty.

proactive

Which approach to social responsibility is being implemented by a company that actively embraces the need to behave in socially responsible ways?

proactive

Which of the following approaches is characterized by the highest degree of social responsibility?

proactive

unethical behavior

reduces a company's performance

demonstrating its social responsibility helps a company build good

reputation

Samantha made some changes in the production process to make sure employees could perform tasks without endangering their health and safety. Samantha was employing the moral rights rule to

seek to protect the rights and privileges of people affected

Tiffany & Co. has a deep moral commitment to act responsibly in its sourcing of precious metals and gemstones. This is an example of _____ ethics.

societal

Which of the following is least likely to be a source of individual ethics?

supervisors

Bank of America's plan to reduce the workforce in its consumer banking unit by thousands will

take a heavy toll on individual workers and local communities

________ can provide guidance when organization members are uncertain about whether an action is ethical.

the ethics ombudsperson

The board and top managers of a nonprofit organization have considerable latitude to decide how they will spend the organization's resources because

the organization does not have stockholders

which of the following statements is true about stockholders?

they have a claim on a company because when they buy its stock or shares, they become its owners.

_______ is a person's confidence and faith in another person's goodwill.

trust

Simon was confronted with a serious ethical dilemma. He responded with a solution that created the greatest good for the greatest number of people. Which ethical rule best describes his response?

utilitarian

One managerial implication of the justice model is that managers should base their decisions on

whatever promotes a fair distribution of outcomes