management chapter 4

The term triple bottom line is also known as the three P's. Which of the following correctly identifies the three P's?

People, Planet, and Profit

The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Which of the following is not among the three types of justice that are specifically of concern to managers?

Personal

ethics committee

group of executives (and sometimes lower-level employees as well) appointed to oversee company ethics. The committee provides rulings on questionable ethical issues and assumes responsibility for disciplining wrongdoers.

Adam Grant,

he says that changes in society and organizations make self-sacrifice for the sake of a larger purpose an increasingly beneficial characteristic.

justice approach

holds that moral decisions must be based on standards of equity, fairness, and impartiality.

Which of the following would NOT be considered a characteristic of an ethical dilemma?

Right and wrong can be clearly identified.

Which of the following reasons best explains why managers are embracing the idea of sustainability?

Sustainability provides a way to achieve financial goals in a manner that is socially and environmentally responsible.

Which of the following statements best summarizes the relationship between ethics and law and free choice?

The domain of ethics is found between codified law and free choice, because even though written laws do not bind ethics, standards of conduct based upon shared principles and values still exist.

Which of the following best describes a corporation's economic responsibility?

To produce the goods and services that society wants and to maximize profits for its owners and shareholders

Robert Vito

Unequal technologies in 2008 to supply his patented lightweight bulletproof vests for soldiers and initially got a contract for 10,000 vests for NATO troops

ethical dilemma

a situation in which all alternative choices or behaviors have potentially negative consequences. Right and wrong cannot be clearly distinguished.

stakeholder

any group or person within or outside the organization that has some type of investment or interest in the organization's performance.

Compensatory justice

argues that individuals should be compensated for the cost of their injuries by the party responsible.

moral rights approach

asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision. Thus, an ethically correct decision is one that best maintains the rights of those affected by it

chief ethics officer,

company executive who oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, conducting ethics training programs, dealing with exceptions or problems, and advising senior managers in the ethical and compliance aspects of decisions

individualism approach

contends that acts are moral when they promote the individual's best long-term interests. In theory, with everyone pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest.

Principle-based statements

designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

Ethical managers

display honesty and integrity, act in a way that communicates and enforces ethical standards, are fair in their decisions and the distribution of rewards, and show kindness and concern for others.

As marketing director at her firm, Julia is leading a team that is conducting forums with customers about potential adaptations to a current product line, making those products more responsive to customers' needs. These forums are part of the company's _____ responsibilities.

economic

After reading about a study by Adam Grant, Malcolm decided to try _____ in order to increase his team's effectiveness based on Grant's claim that this approach was the biggest single predictor of team productivity.

encouraging greater help and support among team members

postconventional, or principled

individuals are guided by an internal set of values based on universal principles of justice and will even disobey rules or laws that violate these principles. Only about 20 percent of adults

utilitarian approach

espoused by the nineteenth-century philosophers Jeremy Bentham and John Stuart Mill, holds that moral behavior produces the greatest good for the greatest number. Under this approach, a decision maker is expected to consider the effect of each decision alternative on all parties and select the one that optimizes the benefits for the greatest number of people

whistle-blowing.

informing the press or government officials about unethical practices within one's organization

benefit corporation

for-profit organization that has a stated purpose that includes creating a material that has a positive impact on society; is required to consider the impact of all decisions not only on shareholders but also on employees, the community, and the environment; and voluntarily holds itself to high standards of accountability and transparency.

Which of the following would be a principle-based statement within a company's code of ethics?

"We are committed to creating an environment in which all are treated with dignity and respect that brings out the full potential in each of us."

Urban Roots

, 150,000 pounds of waste each week were derived from the million pounds of produce delivered to Baldor's plant in the Bronx. What to do with the strawberry tops, carrot peels, onion skins, etc.? Previously, all went to the landfill. McQuillan realized it was food and should be treated as food.

B Corporations

, a nonprofit organization that provides a nonlegal framework for meeting high standards of social and environmental performance, public transparency, and legal accountability.

preconventional level

, individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. In an organizational context, this level may be associated with managers who use an autocratic or coercive leadership style, with employees oriented toward dependable accomplishment of specific tasks.

code of ethics i

formal statement of a company's values concerning ethics and social issues; it communicates to employees what the company stands for

corporate credos.

general statements of principle

Policy-based statements

generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

About _____ of American adults reach the postconventional level of moral development and are able to act in an independent, ethical manner regardless of expectations from others inside or outside the organization.

20 percent

A Gallup poll asked American people whether they agreed with the statement that corporate America's moral compass is "pointing in the wrong direction," and _____ said yes.

75 percent

Which of the following would be included in the Planet part of an organization's triple bottom line?

Commitment to environmental sustainability

The Container Store, Whole Foods Market, and Trader Joe's.

Companies that embrace a conscious capitalism philosophy

Three types of justice are of concern to managers

Distributive justice Procedural justice Compensatory justice

Which of the following statements best describes the individualism approach as a guide for ethical decision making?

It sees acts as moral when they promote an individual's best long-term interests.

JPMorgan Chase

Johnny Burris was working as a broker at a JPMorgan Chase branch near Phoenix when he was promoted to work in the elite Chase Private Client division. Not long afterward, Burris was fired. His employer says Burris was fired because of poor performance and client complaints. Burris says he was fired because he blew the whistle on unethical practices.

Companies that embrace sustainability measure performance outcomes at several different levels in a triple bottom line. Which of the following is NOT included in the triple bottom line?

Moral performance

In the Enron scandal (2001), the company found a way to avoid reporting huge debts. A whistle-blower alerted authorities. Enron's CEO was clearly engaged in unethical behavior. He was sentenced to prison because:

values and standards that say a company can't falsify its financial documents are codified law.

corporate social responsibility (CSR)

management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization.

If a behavior is ethical, it:

may be legal or illegal.

Managers faced with these kinds of tough ethical choices often benefit from a _____ strategy, which is one based on norms and values, to guide their decision making.

normative

Greenwashing

occurs when a company tries to portray itself as more environmentally minded than it actually is

conventional level

people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society. Meeting social and interpersonal obligations is important. Work-group collaboration is the preferred manner of accomplishing organizational goals, and managers use a leadership style that encourages interpersonal relationships and cooperation.

Three Levels of Personal Moral Development

preconventional, conventional, postconventional

Stakeholder mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.

Distributive justice

requires that different treatment of people not be based on arbitrary characteristics. For example, men and women should not receive different salaries if they have the same qualifications and are performing the same job.

Procedural justice

requires that rules be administered fairly. Rules should be clearly stated and consistently and impartially enforced.

Unethical managers

seek to serve their own needs and interests at the expense of stakeholders.

Conscious capitalism,

shared value approach, refers to following organizational policies and practices that both enhance the economic success of a company and advance the economic and social conditions of the communities in which the company operates.

practical approach

sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. a decision would be considered ethical if it is one that would be considered acceptable by the professional community, one that the manager would not hesitate to publicize on the evening news, and one that a person would typically feel comfortable explaining to family and friends.

Sustainability

the ability to generate wealth without compromising environmental responsibility and social stewardship, thus meeting the current and future needs of stakeholders while preserving the environment and society so that future generations can meet their needs as well

Ethics

the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.

Companies may fare poorly when they use economic criteria as their only measure of responsibility, which is sometimes called:

the profit-maximizing view

triple bottom line

to measuring an organization's social performance, its environmental performance, and its financial performance, as illustrated in Exhibit 4.5. This is sometimes called the three Ps: People, Planet, and Profit.

To measure the level of managerial success of decisions based on sustainability, managers use a:

triple bottom line.

In order to keep costs low and remain competitive in the market, Carrier has decided to move much of its production facility to Mexico. This decision was based on the _____ approach.

utilitarian