Wk 6 Ch 4

Which of the following is not an advantage of increased social responsibility?

Faster promotions for employees

How much time would it take for managers to negotiate contracts in a society where stakeholders routinely cheat each other in comparison to negotiating contracts in an ethical society?

It would take more time.

What is the rule in which ethical decisions are made in order to spread the greatest good for the greatest number of people? The utilitarian rule The moral rights rule The equal shares rule The ethical rights rule

The utilitarian rule

Stockholders buy shares of companies and thereby become owners. True false question.

True Reason: In fact, stockholders do lay claim to companies that in which they purchase stock for whatever percentage of capital they invest.

A company within a community contributes to its local ______.

economy

To strengthen a company's organizational culture, managers make good decisions when faced with ethical dilemmas by instilling in their employees ______.

ethical values

To enforce their views of right or wrong behavior, different groups in society lobby for ______.

laws Reason: Laws are used to enforce a society's views as to what constitutes right and wrong behavior.

Some non-profit organizations pay their top executives _____ per year, despite arguments that the compensation is excessive because it is a non-profit organization.

more than $1 million

Managers who will break the law to satisfy their own self-interest demonstrate the ______ approach. Managers who obey the law, but do nothing more than that to act in a socially responsible manner, exhibit the ______ approach.

obstructionist; defensive

When issues of fairness, justice, and equality are governing forces ensuring the rights of every individual, ______ are the standards being practiced.

societal ethics

Owners of shares in a company are called ______.

stockholders Reason: Stockholders are the owners of stock in a company, whereas stakeholders are individuals and groups that may be affected by a company's actions.

A company can act ethically toward employees and meet their expectations by creating an occupational structure ______.

that fairly and equitably rewards employees

When companies make ethical and socially responsible decisions on behalf of their employees, what is the result?

Companies make decisions that protect, enhance and promote the welfare and well-being of their stakeholders.

Consider a situation in which people are faced with two opposing decisions: one could possibly go against people's self-interest, but may help a person or group; or one could possibly hurt someone, while helping oneself. This is called an ethical ___

Dilemma

Societal ethics are standardized from country to country in nations throughout the world.

False Reason: Societal ethics vary among societies. In countries with strong values and social orders, societal ethics are prevalent. In countries with poor economies, unethical behaviors such as bribery for services abound.

What three company resources are managers responsible for to increase performance and, as a result, the company's stock price? Internal, external, and manufacturing Employees skills, training, and upward mobility Financial, capital, and human Environmental, organizational, and communal

Financial, capital, and human

What would be an accurate statement regarding ethics and legality? An ethical belief remains static over time. Laws do not sanction rights or abilities. Just being legal does not make an action ethical. Laws remain static over time.

Just being legal does not make an action ethical.

Companies and their managers are guided by ___ ethics, which are the guiding practices and beliefs that managers use as the lens through which they view their responsibilities toward their stakeholders.

Organizational

What is the outcome when ethical values and norms become a part of an organization's culture?

Organizational members resist self-interested action.

Companies that want to be socially responsible, but tend to wait to have the need pointed out to them, have adopted the ______ approach. Those who seek out ways to help stakeholders before a problem is pointed out to them have adopted the ______ approach.

accommodative; proactive

Suppliers expect fair and prompt payment for the purchase of their materials, and ______ expect to receive products from manufacturers at the agreed-upon quality and price.

distributors

Managers and employees must work to increase _____ in order to create loyal customers and attract new ones.

efficiency and effectiveness

Ethical scandals concerning executive pay occur only in for-profit companies.

false Reason: No, recently even executives of non-profit organizations have been scrutinized for unethically high pay packages.

When people's self-interests are at stake, their ___ ethics influence how they perceive their responsibilities and how they behave towards others.

individual

For members of a particular trade or craft, their profession's ___ ethics are the standards that govern how members should conduct themselves when performing work-related activities.

occupational

When standards are in place to guide people within the same profession, trade, or craft on how to conduct themselves while working on profession-related activities, this is referred to as ___ ethics

occupational

Company founders are very influential in shaping the ______, as these are the guiding principles and beliefs that will shape the company's core and serve as a lens through which managers view their responsibility towards their stakeholders.

organization's code of ethics organizational ethics

Societal ethics, occupational ethics, individual ethics, and _____ ethics are the four main determinants of difference in ethics among people, employees, companies, and countries.

organizational

When managers resist the temptation to act in their own self-interest, they reinforce ethical ______.

organizational norms

Individual ethics are ______ that determine how people view their responsibilities to other people and groups and how they should act in situations when their own self-interests are at stake.

personal standards and values

A company's ethics impacts its view of how it must protect, promote, and care for the welfare and well-being of all stakeholders and society as a whole. This obligation to make decisions that will offer such protections is referred to as the company's ______.

social responsibility

Stakeholders that provide an organization with inputs such as raw materials, components, contract labor, and clients are referred to as ______. This group expects to be paid fairly and promptly for their inputs.

suppliers

Why is it important for a company to be involved in global trade? Because the company needs synergy with its community Because the company affects the prosperity of a society, a nation, and the global economy Because employees will be happy Because the community wants to order products from other countries

Because the company affects the prosperity of a society, a nation, and the global economy

How would unethical behavior in the form of routine cheating by stakeholders affect managers' ability to do business? Efficiency and effectiveness would increase. There would be more product produced and released to the marketplace. Additional bargaining will be needed to conclude contracts. There would be more non-productive activity. Efficiency and effectiveness would decrease.

Additional bargaining will be needed to conclude contracts. There would be more non-productive activity. Efficiency and effectiveness would decrease.

What must society do first in order to punish undesired behavior?

Pass laws Reason: Society passes laws in order to indicate correct behavior and punish those who engage in undesired behavior.

What must society do first in order to punish undesired behavior? Set up ethical guidelines Pass laws Enhance lobbying guidelines Eliminate bureaucracies

Pass laws Reason: Society passes laws in order to indicate correct behavior and punish those who engage in undesired behavior.

Acting in a socially responsible manner can help a company by improving its reputation.

True Reason: This is one of the main positive outcomes of acting in a socially responsible manner.

One principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.

True Reason: To act ethically toward employees and meet their expectations, a company can create an occupational structure that fairly and equitably rewards employees for their contributions.

A specific behavior that is deemed illegal is not necessarily unethical. True false question.

True Reason: While most people currently believe that if something is unethical it should be illegal and if something is illegal it is unethical, there is another school of thought that states that ethical behavior changes over time, and that just because something is considered illegal, that does not necessarily make it unethical.

Multiple Choice Question The quandary people find themselves in when they have to decide if they should act in a way that might help another person or group even though doing so might go against their own self-interest defines a(n) ______ dilemma. values ethical legal religious

ethical

Customers are frequently regarded as the most critical stakeholder group for the company's success because ______. employees are frequently customers as well, doubling the importance of the customer stakeholder group if a company cannot attract customers to buy its products, it cannot stay in business it needs a large customer base to maintain its reputation. customers are the most demanding stakeholder group

if a company cannot attract customers to buy its products, it cannot stay in business

The stakeholder group responsible for choosing the strategic goals that the company should pursue to benefit all of the company's stakeholders is the ______.

managers Reason: Managers are the stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders.

The four main determinants of differences in ethics among people, employees, companies, and countries are organizational ethics: religious ethics societal ethics occupational ethics individual ethics

societal ethics occupational ethics individual ethics

Employees, customers, suppliers, and distributors, and the community are all considered ___ because they are all affected by the way a company and its managers behave.

stakeholders

Multiple Choice Question A company's employees, customers, stockholders, suppliers, and distributors are considered the company's ______. shareholders focus group stockholders stakeholders

stakeholders

The ______ rule states that ethical decisions are those that produce the greatest good for the greatest number of people.

utilitarian Reason: The justice rule states that an ethical decision distributes benefits and harm in a fair, equitable, and impartial manner.