MAN3025 Chapter 3

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

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 _____. A. benchmarking B. fair trade C. insider trading D. whistle blowing

C. insider trading

According to Archie B. Carroll, the responsibilities of an organization can be arranged as a pyramid, with _____ at the base and _____ at the top. A. corporate citizenship; profit B. ethical practices; obeying the law C. making a profit; corporate citizenship D. corporate citizenship; ethical practices

C. making a profit; corporate citizenship

A distributor is sometimes referred to as a(n) A. ally B. associate C. middleman D. customer

C. middleman

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 _____. A. shareholders B. base C. stakeholders D. customers

C. stakeholders

The ten groups that present a company with its daily tasks to handle represent the company's _____ environment. A. behavioral B. internal C. task D. managerial

C. task

When managers use financial performance as the best definition of an ethical choice, they are taking a(n) ______ approach to organizational decisions. A. moral-rights B. individual C. utilitarian D. justice

C. utilitarian

Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as _______. A. the solar effect B. global energy balance C. "going green" D. climate change

D. climate change

Four restaurants that are all seeking to attract the same customers would be categorized as _______. A. suppliers B. customers C. distributors D. competitors

D. competitors

The people inside of an organization who have an important stake in how it performs are the organization's _____ stakeholders. A. strategic B. human C. employee D. internal

D. internal

Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone are known as _______. A. special-interest groups B. distributor-suppliers C. internal stakeholders D. strategic allies

D. strategic allies

A company or person that provides raw materials, services, equipment, labor, or energy to another organization is called a(n) _____. A. customer B. competitor C. owner D. supplier

D. supplier

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. A. demographic B. economic C. sociocultural D. technological

D. technological

New developments in methods for transforming resources into goods or services are called _______ forces. A. sociocultural B. economic C. demographic D. technological

D. technological

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

False

A company's external environment consists of which two environments? A. general B. internal C. task D. service

A. general C. task

Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected. A. governance B. regulation C. administration D. supervision

A. governance

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 _______. A. philanthropy B. a code of ethics C. sustainability D. whistle-blowing

A. philanthropy

What are two examples of economic forces within a company's general environment? A. bank interest rates B. the unemployment rate C. Hurricane Katrina D. marijuana legalization

A. bank interest rates B. the unemployment rate

The people or organizations that vie with your company for customers or resources are known as _____. A. competitors B. stakeholders C. suppliers D. regulators

A. competitors

Those who pay to use an organization's services or to buy their goods are called ______. A. customers B. suppliers C. stakeholders D. shareholders

A. customers

An organization's internal stakeholders consist of A. employees, owners, and the board of directors. B. stockholders with more than 5% share in the company. C. anyone with an interest in the business, including customers, suppliers, and the local community.

A. 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. A. ethical B. sociocultural C. social D. economic

A. ethical

An organization's ethical _____ represents employees' perceptions about the extent to which the work environment supports ethical behavior. A. mix B. climate C. demographics D. attitude

B. climate

Running a company and protecting the interests of owners and other stakeholders is known as _____. A. philanthropy B. corporate governance C. corporate social responsibility D. natural capital

B. 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 ______. A. association economies of scale B. corporate social responsibility C. benchmarking D. whistle-blowing

B. 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 _______. A. supplier B. customer C. competitor D. distributor

B. customer

A person or an organization that helps another organization sell its goods and services to customers is called a(n) ______. A. supplier B. distributor C. vendor D. internal stakeholder

B. distributor

A company's triple bottom line measures which aspects of its performance? (Choose every correct answer.) A. technological B. financial C. environmental D. social E. ethical

B. financial C. environmental D. social

People who buy or sell stock illegally based on confidential company information are engaging in _____. A. whistle-blowing B. insider trading C. natural capital D. clawbacks

B. insider trading

Suppliers are people or organizations that A. compete for an organization's customers, employees, or resources. B. provide raw materials, services, equipment, labor, or energy to other organizations. C. pay to use an organization's goods or services.

B. provide raw materials, services, equipment, labor, or energy to other organizations.

A manager's responsibility to take actions that benefit both society and the business is known as _____ responsibility. A. corporate B. social C. value D. demographic

B. social

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. A. justice B. utilitarian C. individual D. moral-rights

B. utilitarian

Which of these are forces within an organization's general environment? A. Economic B. International C. Political-Legal D. Demographic E. Technological F. Physical G. Sociocultural

A. Economic B. International C. Political-Legal D. Demographic E. Technological G. Sociocultural

Which of these employees is involved in an ethical dilemma? A. 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. B. Sun-Jun is concerned that new government regulations will cost his company more in production costs. C. Mia accepted the job as an administrative assistant at her company a year ago but is now thinking about looking for another job. D. Kimberly is choosing whether to import necessary parts to save money or to continue using a domestic supplier.

A. 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 are elements of corporate governance that are tied to ethics? (Choose every correct answer.) A. Long-term plans B. Accurate reporting C. Work environment D. State legislation

A. Long-term plans B. Accurate reporting C. Work environment

How did CEO dismissals related to ethical concerns change between 2008 and 2018? A. More CEOs were fired for misconduct. B. No CEOs were fired for misconduct. C. More CEOS were granted immunity. D. Fewer CEOs were fired for misconduct.

A. More CEOs were fired for misconduct.

Which broad term identifies anyone impacted by a business, including but not limited to stockholders, employees, and customers? A. Stakeholders B. Management C. Board of Directors D. Task environment

A. Stakeholders

Which groups are parts of the task environment? (Choose every correct answer.) A. Strategic allies B. Owners C. Local communities D. Board of directors E. Government regulators F. Distributors

A. Strategic allies C. Local communities E. Government regulators F. Distributors

Millennials in the workforce: (Choose every correct answer.) A. expect more from the organizations they do business with B. are concerned about a corporation's ethics, motives, and methods C. want personal success more than they want a happy life D. want work/life balance E. expect more from the organizations they work for F. are more concerned with profit than social responsibility

A. expect more from the organizations they do business with B. are concerned about a corporation's ethics, motives, and methods D. want work/life balance E. expect more from the organizations they work for

People who are outside an organization but are still affected by the organization are called the ______. A. external stakeholders B. internal stakeholders C. owners D. board of directors

A. external stakeholders

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. A. for B. against

A. for

The act of contributing money in order to benefit society is referred to as _______. A. philanthropy B. human capital C. globalization D. donation in kind

A. philanthropy

A company's triple bottom line represents which aspects? (Choose every correct answer.) A. planet B. people C. production D. politics E. profit F. privacy

A. planet B. people E. profit

What statement regarding ethical climates is TRUE? A. The ethical climate of an organization is unrelated to employees' ethical behavior. B. An ethical climate significantly affects the frequency of ethical behavior. C. Managers have little or no effect on the ethical climate in an organization. D. Ethical climates are unaffected by an organization's policies, procedures, and practices.

B. An ethical climate significantly affects the frequency of ethical behavior.

According to free-market economist Friedman, what is the only social responsibility of a business? A. Environmental sustainability B. Making profits C. Corporate philanthropy D. Being a good global citizen

B. Making profits

Which group is projected to make up almost 60% of the workforce by 2029? A. Millennials and Baby Boomers B. Millennials and Gen Zers C. Gen Xers and Baby Boomers

B. Millennials and Gen Zers

_____ forces consist of conditions such as unemployment, inflation, interest rates, and economic growth that may affect an organization's performance. A. Technological B. Demographic C. Economic D. Sociocultural

C. Economic

When companies link up with one another in order to realize certain advantages, they are known as strategic _____. A. rivals B. proprietors C. allies D. unions

C. allies

An organization's standards of right and wrong that influence employee behavior are referred to as _______. A. rights B. unions C. ethics D. morals

C. ethics

The macro-environment is also known as the _______ environment. A. fixed B. internal C. general D. external

C. general

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. A. hemispheric cooling B. sustainability C. global warming D. planetary radiation

C. global warming