Principles of Management Ch. 3&4

Ethics Audit

A comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective.

Utilitarianism

A philosophy where believers seek the greatest satisfaction for the largest number of individuals.

Deontology

Focuses on human rights and values and on the intentions associated with a particular behavior.

Global

Pertaining to the general environment, those factors in other countries that affect the organization.

Business Ethics

Principles, values, and codes of conduct that define acceptable behavior in business.

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

You own a gourmet restaurant in Atlanta. You send your chef, Pierre LePeachtree, to a major international restaurant-owners' meeting so he can find out what some of the hot new entrees are around the world. You are being sensitive to the

Task Environment

Within the general environment, what term describes the knowledge and process of changing inputs (resources, labor, and money) to outputs (goods and services)?

Technological

Sociocultural Dimension

The aspect of the general environment that includes the demographics, attitudes, and the values of the society within which an organization operates.

Corporate Governance

The formal system of oversight, accountability, and control for organizational decisions and resources.

External Environment

all the factors outside of the organization that may affect the manager's actions

What name is given to the overall condition of the complex interactions of economies throughout the world?

economic dimension

The phrase caveat emptor means

let the buyer beware

Social Audit

A systematic examination of the objectives, strategies, organization, and performance of the social responsibility function.

Internal Environment

All factors that make up the organization, such as the owners, managers, employees, and board of directors.

What are potential new competitors?

Companies not currently operating in a business's industry but that have a high potential for entering the industry

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

Code of Ethics

Formalized rules and standards that describe and delineate what the organization expects of its employees.

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 interactions of economies throughout the world.

A managerial decision becomes an ethical issue when

accepted rules no longer apply, and the person must use his or her own moral standards.

Developing widespread electric charging stations for electric cars is an illustration of

building technological infrastructure.

Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers

have little control over the restaurants

its an advantage if businesses have

many suppliers

The _____ conflict that exists within an organization, the _____ the perception of the ethicalness of the work group.

more;lower

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

While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually

promote trust and learning in an organization

When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups isx

reduced

whistleblowing

reporting others' ethics violations to management or legal authorities

Ethical violations destroy

trust

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.

Individual Values

Also known as moral philosophies, are sets of principles that describe what a person believes are the right way to behave.

Ethical Issue

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.

Task Environment

Those 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.

Technological

Within the general environment, the knowledge and process of changing inputs (resources, labor, and money) to outputs (goods and services).

Political/Legal

Within the general environment, the nature of the relationship between various areas of government and the organization.

In analyzing the relationship between ethics and social responsibility, ethics may be viewed as

a component of social responsibility.

Environment

all the factors that affect the operation of the organization