Principles of Management CH. 3&4 Cate Loes

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

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.

Social Audit

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

What is the nature of the organization's 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

What name is given to other organizations that produce similar, or in some cases identical, goods or services?

Competitors

Which of the following refers to those who purchase an organization's goods and/or services?

Customers

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

Economic dimension

Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?

Ethics audit

Which of the following refers to all of the factors outside the organization that may affect the managers' actions?

External environment

Deontology

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

Code of Ethics

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

What term describes the broad, complex factors that affect all organizations?

General environment

The company that was founded on with strong CSR principles is

Patagonia

Global

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

Within the general environment, which of the following refers to the nature of the relationship between various areas of government and the organization?

Political-legal dimension

Which of the following characteristics relates to business ethics?

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

Business Ethics

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

Which external factor is the hardest to forecast?

Socio-cultural

What name is given to the degree to which a firm understands and addresses stakeholder demands?

Stakeholder orientation

What term describes goods or services that may be used in place of those furnished by a given business?

Substitutes

The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's

Task environment

What name is given to 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?

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.

Which of the following characteristics relates to corporate governance?

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

Corporate Governance

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

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.

In analyzing their external environment, most organizations find that it presents

both threats and opportunities.

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

building technological infrastructure.

A __________orientation type of control system requires that employees learn and pledge to a specific type of conduct.

compliance

The difference between an ethic and a law is that a law

defines a minimally acceptable standard of conduct.

The fact that Americans are becoming older and more affluent is an example of

demographic characteristics.

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

The task environment includes all of the following except

environmentalists

In a situation where the customer can choose an identical product from a large number of financial institutions, such as a Visa credit card, the customer's influence on the organization's operations is

great

Managers tend to be more concerned about ethical issues that

have immediate consequences

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

If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is

increased.

The phrase caveat emptor means

let the buyer beware

A good way to judge the ethics of a decision is to

look at the situation from several viewpoints.

Regarding a business' resources, having ____________ is optimal.

many suppliers

its an advantage if businesses have

many suppliers

Social responsibility is the obligation a business has to

maximize its positive impact on society and minimize its negative impact

A set of principles that describe what a person believes is the right way to behave is called

moral philosophy

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

more;lower

Businesses must first be responsible to their , who are primarily concerned with earning a profit.

owners.

Georgia realized her supervisor was padding his expense account. Research has shown that her response will most likely be to

pad her own expense account.

The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the

political element of the political-legal dimension.

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 is

reduced

whistleblowing

reporting others' ethics violations to management or legal authorities

The Union Electric Company, a St. Louis utility, buys a large shipment of coal from Peabody Coal Company for use in its coal-fired plants. Peabody is one of Union Electric's

suppliers

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.

The group in a corporation that has legal responsibility to represent the stockholders is

the board of directors

Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is

the overall moral climate of your organization.

Although each of the following could occur after an ethical violation, which of the following has the greatest likelihood of happening?

trust

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.

Internal Environment

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

Which of the following characteristics relates to the nature of the management environment?

All of those factors that affect the operation of the organization

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.

Understanding external factors is important to managers, equally important is knowing ____________.

How to respond to the factors.

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

Individual values

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.

A managerial decision becomes an ethical issue when

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

In the United States, if a businessperson brought an elaborately wrapped gift to a prospective client on their first meeting, it might be viewed as

a bribe

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

a component of social responsibility.

External Environment

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

Environment

all the factors that affect the operation of the organization

You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of

your failure to cope with the technological dimension of the general environment.