Organizational Management Chapter 4

Corporate ethics programs commonly include ______.

formal ethics codes that detail the company's expectations

In a 2018 survey conducted by Edelman, the percentage of Americans who trust business had dropped to ________.

52%

There are many ethical challenges facing U.S. managers today. Identify in the list below some of the ethical dilemmas managers are currently facing.

Branding Commercialism in schools Sweatshops Executive compensation

______ are the moral principles and standards that guide behavior in the business world.

Business ethics

Which of the following are fundamental sources of risk in modern society? Check all that apply.

Excessive production of hazards Ecologically unsustainable consumption of natural resources

Which of the following illustrates how organizations are reacting to the environmental concerns that are both environmentally positive and profitable?

Coca-Cola pledging to cut its carbon footprint by 25 percent Industries that partner with each other so that waste materials created by one can be used by another. Google developing renewable sources of energy

What type of analysis is used by companies to identify actions that will maximize profits while satisfying the demand for corporate social responsibility?

Cost benefit analysis

Which of the following are ethical issues that managers encounter with the use of technology in the workplace?

Disclosure of confidential information Loss of productivity Computer users introducing computer viruses

Which of the following are danger signs that an organization may be allowing or encouraging unethical behavior?

Excessive emphasis on short-term revenues over longer-term considerations Treating ethics only as a legal issue or public relations tool. Failure to establish a written code of ethics

Businesses view environmental issues as no-win situations; either you help the environment and hurt your business or you help your business and hurt the environment.

False

True or false: Sustainable analysis is the process of analyzing all inputs and outputs through the entire life of a product to determine the total environmental impact.

False

Which of the following best defines the ethical system known as utilitarianism?

It is an ethical system in which the goal is to create the greatest good for the greatest number.

What is the role of courage in taking action on ethical decisions?

It is necessary to take actions consistent with your ethical decisions.

Behaving ethically requires which of the following? Check all that apply.

Moral awareness Moral judgment Moral character

The Sarbanes-________ Act was passed by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Oxley

Which of the following are subjects commonly addressed in ethics codes?

Political activity Suppliers and contractors Community and environment Employee conduct Technology

Which type of environmental impact are some organizations striving for today?

Positive

Which of the following is the final step of ethical decision making?

Propose a convincing moral solution.

Which of the following would create a climate conducive to unethical behavior?

Responsiveness to shareholders at the expense of other stakeholders

_____ is an act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Sarbanes-Oxley Act

Which of the following are criteria that should be used when evaluating your ethical duties?

The action doesn't harm the "least among us." The action would build a sense of community among those involved. You would be proud to see the action reported in newspapers.

How do companies today reconcile profit maximization with corporate social responsibility?

They complete cost-benefit analysis to identify actions that will maximize profits while satisfying the demand for corporate social responsibility.

Why are companies incorporating environmental values into their competitive strategies and design of their products? Check all that apply.

To create a competitive advantage To react to a competitor's actions To comply with guidelines To satisfy consumer demand

What did Milton Friedman view as the social responsibility of business?

To increase profits

When running a business, what is the economic responsibility of the organization?

To produce goods and services for society at a price so the business survives and meets investor obligations

A company is losing market share and realizes it must increase efficiency and cut costs in order to survive and succeed. It decides to shut down several underperforming facilities in the United States and open factories overseas where costs are much lower. This decision will allow the company to compete more effectively in the global market and result in more job opportunities and profits down the road. This is an example of which ethical system?

Utilitarianism

________ ethics suggests that what is moral must come from what a mature person with good moral character would deem right.

Virtue

Which of the following is most consistent with the virtue ethics perspective?

What is considered to be moral must also come from what a mature person with good moral character would say is right.

Which of the following criteria would indicate an ethical action when evaluating your ethical duties? (Check all that apply.)

You would be proud to see the action widely reported in newspapers. It doesn't harm the "least among us." You would be willing to see others take the same action when you might be the victim.

Jeremy is facing a situation in which he must choose among several actions that he will need to evaluate as morally right or wrong. Jeremy's situation is an example of ______.

an ethical issue

Companies, managers, and their communities all benefit over the long term when managers act with integrity and ______.

apply ethics

The practice of businesses paying bloggers to write positive comments about the business is called ________.

astroturfing

There are three requirements to ethical decision-making. The one defined as "realizing that the issue has ethical implications" is moral

awareness

The moral principles and standards that guide behavior in the business world are referred to as

business ethics

Social commitments to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors are called a business' _______ responsibilities.

economic

An ethical system defining acceptable behavior as that which maximizes benefits for the individual is

egoism

The processes in an organization where decisions are evaluated and made on the basis of right and wrong is called the ______.

ethical climate

The term that refers to how decisions are evaluated and made in an organization on the basis of right and wrong is ______.

ethical climate

A(n) _____ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.

ethical issue

Someone who is both a moral person and a moral manager that influences others to behave ethically is called a(n) _____.

ethical leader

The system of rules that governs the ordering of values is called _________.

ethics

An ethics code, an ethics officer, ethics training, and an ethics communication system are all part of a ______.

ethics program

Most Americans believe CEO pay is

excessive

Which of the following are parts of the process for ethical decision making? (Check all that apply.)

having moral character to act in accordance with your ethics using judgment to recognize what actions are morally defensible having awareness to realize the issue has ethical implications

Egoism is an ethical system that defines acceptable behavior as that which maximizes benefits for the ______.

individual

An ethical leader:

is a moral manager influences others to behave ethically is personally moral

In order to create a culture that encourages ethical behavior a manager needs to ______.

lead others to behave ethically

A process of analyzing all inputs and outputs through the entire life of a product to determine the total environmental impact is called ______.

life-cycle analysis

When making an ethical decision, in order to define the complete moral problem you must understand all the moral standards and ______.

recognize all moral impacts

A philosophy that bases ethical behavior on the opinions of relevant other people is called

relativism

Ethical behavior according to how others behave is the ethical system of ______.

relativism

When drafting an ethics code, companies often begin with _____.

researching other companies' ethics codes

We live in a society where the creation and distribution of wealth generates byproducts that can cause injury, loss, or danger to people and the environment. This is known as a(n) ______ society.

risk

The ______ model of corporate responsibility holds that managers act as agents for shareholders and, as such, are obligated to maximize the present value of the firm.

shareholder

An obligation toward society assumed by business is called corporate ________ responsibility

social

Corporate social responsibility (CSR) is:

the obligation toward society assumed by business

True or false: By demonstrating ethical leadership, managers can boost employee retention.

true

Organizations see ethics as an important issue for all of the following reasons EXCEPT that

unethical organizations always lose money when compared to ethical organizations.

The ethical system that states that all people should uphold certain values that society needs to function is called:

universalism

The ethical system that states that everyone should uphold certain values, such as honesty and rules against oppression, is called

universalism