mbus 301: chapter 3 review

Which are elements of corporate governance that are tied to ethics? (Choose every correct answer.)

Accurate reporting Work environment Long-term plans

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 global good corporate citizen 2. being ethical in its practices 3. obeying the law 4. making a profit

What are requirements established by the Sarbanes-Oxley Act of 2002? (Choose every correct answer.)

A company's CEO and CFO must certify the accuracy of the company's financial reports. An organization must put procedures and guidelines in place for audit committees.

What statement regarding ethical climates is TRUE?

An ethical climate significantly affects the frequency of ethical behavior.

Which of these are forces within an organization's general environment?

Economic Technological Demographic Sociocultural International Political-Legal

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

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

Making profits

Which group is projected to make up almost 60% of the workforce by 2029?

Millennials and Gen Zers

How did CEO dismissals related to ethical concerns change between 2008 and 2018?

More CEOs were fired for misconduct.

Which of these organizations are considered special-interest groups? (Choose every correct answer.)

People for the Ethical Treatment of Animals Mothers Against Drunk Driving

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.

_____ groups try to influence specific issues, some of which may affect your organization.

Special-interest

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

Stakeholders

Which groups are parts of the task environment? (Choose every correct answer.)

Strategic allies Local communities Distributors Government regulators

When companies link up with one another in order to realize certain advantages, they are known as strategic _____.

allies

What are two examples of economic forces within a company's general environment?

bank interest rates the unemployment rate

An organization's internal stakeholders consist of

board of directors, employees, owners

The purpose of a code of ethics is to ______.

clearly state top management's expectations for all employees

An organization's ethical _____ represents employees' perceptions about the extent to which the work environment supports ethical behavior.

climate

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

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

Diversity in the US workforce is increasing in terms of race, ethnicity, and age groups. These are all examples of _____ forces.

demographic

_____ forces are influences on an organization arising from changes in the characteristics of the population, such as age, gender, or ethnic origin.

demographic

A person or an organization that helps another organization sell its goods and services to customers is called a(n) ______.

distributor

_____ forces consist of conditions such as unemployment, inflation, interest rates, and economic growth that may affect an organization's performance.

economic

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

People who are outside an organization but are still affected by the organization are called the ______.

external stakeholders

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

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

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

governance

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

People who buy or sell stock illegally based on confidential company information are engaging in _____.

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

A distributor is sometimes referred to as a(n)

middle man

The ______ of an organization consist of all those who can claim it as their legal property.

owners

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

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

philanthropy

A company's triple bottom line represents which aspects? (Choose every correct answer.)

planet people profit

Suppliers are people or organizations that

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.

social

A company's triple bottom line measures which aspects of its performance? (Choose every correct answer.)

social financial environmental

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

Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone are known as _______.

strategic allies

A company or person that provides raw materials, services, equipment, labor, or energy to another organization is called a(n) _____.

supplier

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

task general

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 organization that represents hourly workers as opposed to salaried employees is called a(n) ______.

union

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

When managers use financial performance as the best definition of an ethical choice, they are taking a(n) ______ approach to organizational decisions.

utilitarian

Millennials in the workforce: (Choose every correct answer.)

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

An employee who reports organizational misconduct to the public is known as a(n) _____.

whistle-blower

_____ sometimes risk their jobs by coming forward about organizational misconduct and thus need to be protected.

Whistle-blowers

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.

indiviual

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 ten groups that present a company with its daily tasks to handle represent the company's _____ environment.

task

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.