Quiz 3: The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing

Paul,who is normally an ethical person,has an opportunity to acquire what he feels is "easy" money in his job,and he believes it is safe to steal the money because nobody would know if he does take it.Paul rationalizes that it is fine to carry out his plan because he needs it more than the person whom the money belongs to.The psychological mechanism that causes Paul to want to steal the money is poor self-esteem.

With the "holier-than-thou" effect,people tend to be overly optimistic about their own abilities and fortunes-to overestimate their standing in class.

Research has shown that students who don't actually do the assigned work and cheat are more likely to commit felonies and develop depression disorders.

Prior to a 2010 natural-gas pipeline explosion in San Bruno,California,Pacific Gas & Electric chose to use its surplus revenues to improve safety,an example of ethical decision-making.

Stakeholders are competitors of the organization who have an interest,or stake,in stealing a company's business.

External stakeholders include the owners and board of directors.

The owners of an organization consist of all those who can claim it as their legal property.

The board of directors of a corporation is responsible to see that the company is being run according to the employees' interests.

With a sole proprietorship,the board of directors is a vital part of major company decisions.

Members of the board of directors are elected by the stockholders.

The employees of a production facility that produce parts for boats are meeting to discuss ways to control the rising costs because it is affecting their bonus.The employees are concerned about how to accomplish this,since they are internal stakeholders of the factory.

A large factory across the street from Anne's Café,a family-owned restaurant for over 50 years,is planning to close.The employees of the plant are a large percentage of the customers for the café.The café's customers and suppliers are concerned about the future of the restaurant because they are external stakeholders.

The task and general environments make up an organization's internal environment.

The task environment of Top-Notch Sewing consists of a total of two groups,customers and stockholders,which give the employees and management of Top-Notch its daily jobs.

Donna loves to cook,and when she needs certain types of herbs,fruits,and vegetables to make a recipe,she usually shops at Phillip's Grocery because it carries a nice selection of fresh produce.Donna is considered a customer of Phillip's Grocery.

Most customers value price over service,and are unconcerned by poor customer relations.

The first law of business is to take care of the employees and stockholders.

Sal,the owner of a produce market,is concerned because a national grocery store has decided to build a new store just one mile from his market.Sal knows that the large retailer will offer better wages and lower prices,battling for his employees and customers.Therefore,this new grocery is a competitor of Sal's Market.

Pete's Janitorial Supply furnishes janitorial and paper products to cleaning services.Pete's is an example of a supplier.

Mr.Fun,a small toy store,started marketing a new video game for Let's Play Games,a large game supplier.Mr.Fun is an example of a distributor for Let's Play's games.

Distributors can be quite important because in some industries there is not a lot of competition,so the distributor has a lot of power in setting the price of the product.

When Pleasant Resort,a successful 100-year-old hotel and resort,became part of A-Plus Hotels,a five-star hotel chain,so Pleasant could market its facility and services and A-Plus Hotels could enter the resort market,this relationship is an example of a strategic allies relationship.

Typically,labor unions tend to represent salaried workers,and professional associations tend to represent hourly workers.

Private-sector unionization has slightly increased,because despite the recession,jobs in manufacturing and construction have increased.

If a community gives a company tax breaks in return for the promise of new jobs and the firm fails to deliver,rescinding those tax breaks when firms don't deliver promised jobs are known as cutbacks.

Marketing for a startup small business to obtain many small new customers is known as crowdfunding.

Associations that are utilized by government agencies to monitor manufacturing and agricultural needs and developments are known as government regulators.

Members of the National Organization for Animals (NOA)have launched a letter-writing campaign to elected officials and have contributed funds to election campaigns to try to exert political influence;NOA is an example of a government regulator.

Managers can usually ignore the mass media without adverse effect.

The general environment,or macroenvironment,includes six forces: economic,technological,sociocultural,demographic,political-legal,and international.

Managers may be able to control some forces in the general environment,but they can't control those in the task environment.

Economic forces consist of the general economic conditions and trends like unemployment,inflation,interest rates,and economic growth that may affect an organization's performance.

Technological forces,such as air-conditioning,are new developments in methods for transforming resources into goods or services.

Due to obesity issues in the lives of many customers,consumers are demanding a healthy menu from restaurants.This change in demand is an example of a demographic force.

When a daycare center looks at the recent increase in the number of working mothers in its area to determine how many employees to hire,this is an example of studying demographic forces.

Political-legal forces are changes in the way politics shape laws and laws shape the opportunities for and threats to an organization.

Paul,the vice president of marketing of an international sales organization,is considering adding an office in a new country.He is looking at the current economic,political,legal,and technological global forces in that country that can affect the success of the expansion into the new area.These forces that Paul is studying are international forces.

International forces represent a huge grab bag of influences that may affect an organization,such as the economic integration of the European Union,which has developed threats and opportunities for American companies.

Choosing between product performance and employee performance is what most ethical conflicts are about.

Just before introduction of a new revolutionary laptop,the Top205 by Top Computers,Greg,the CEO of Top,was informed that there could be a problem with part that may cause reliability issues.Greg knows that correcting the problem would delay the introduction of the product,affect the reputation of Top Computers,and be expensive due to possible order cancellations and added advertising costs.Greg's decision whether to delay the introduction of the Top205 or proceed as planned is an example of an ethical dilemma.

The beliefs by individuals regarding what they feel others will observe in their behavior are called ethics.

Ethical behavior is behavior that is accepted as "right" as opposed to "accepted" according to the standards of what is right or wrong.

Terrell,the HR manager,strongly believes that fairness means hiring according to ability,not family background.Terrell's deeply held belief regarding hiring is a part of his dilemma approach.

An organization's value system is the belief of employees and customers about that company's product and service quality.

The utilitarian approach is guided by what will result in the individual's best long-term interests.

A benefit of the individual approach is that when managers make decisions that are made in the individual's best interests,this will usually benefit most people.

When illegal female immigrants from Central America are transported into Texas and forced to work seven days a week or as prostitutes,this violates the moral-rights approach.

When judging an organization's policies-such as fair and impartial administering of promotions regardless of gender,age,sexual orientation,and the like-ethical behavior under the justice approach is guided by respect for impartial standards of fairness and equity.

The Sarbanes-Oxley Act set up the Federal Trade Commission to ensure consumer protection and eliminate and prevent anticompetitive business practices,with penalties of as much as 25 years in prison for noncompliance.

A Ponzi scheme is when an individual or company utilizes the bait-and-switch method.A product is advertised at a low price,but when customers ask to buy the item they are told that the advertised good is not available and are pressured to buy a higher-priced item.

Psychologist Laurence Kohlberg has proposed three levels of personal moral development: preconventional,conventional,and postconventional.

Companies screen out dishonest,irresponsible workers after they are hired by checking employees' résumé and references.

A code of ethics is an insurance document specifying upper management's ethical policy and procedures regarding health care with the Affordable Care Act.

Human resource professionals indicate that when their organizations offer ethics training using a case approach to present employees with ethical dilemmas by clarifying expectations,this kind of training may reduce unethical behavior.

A whistle-blower is usually a stakeholder who reports organizational misconduct to the public.

Corporate social responsibility is the belief that corporations are expected to go above and beyond following the law and making a profit to be a good corporate citizen and benefit interests of society.

In the old days of cutthroat capitalism,a company's most important goal was to make money pretty much any way it could.Today for-profit enterprises generally make a point of "putting something back" into society as well as taking something out.

Milton Friedman represents the view that the social responsibility of business is to maintain a balance between business and environmental concerns.

Despite recent pressure from stockholders to increase profits,a global petroleum organization has maintained a practice of consistently acting ethically by being a good global corporate citizen,taking host-country and global standards into consideration when making decisions,and obeying the law of host countries as well as international law.This is an example of a company acting socially responsible.B.Carroll,corporate social responsibility rests at the top of a pyramid of a corporation's obligations,right up there with economic,legal,and ethical obligations.Carroll suggests the responsibilities of an organization in the global economy should take the following priorities,with profit being the most fundamental (base of the pyramid)and corporate citizenship at the top: (1)Be a good global corporate citizen,as defined by the host country's expectations; (2)be ethical in its practices,taking host-country and global standards into consideration; (3)obey the law of host countries as well as international law;and (4)make a profit consistent with expectations for international business.

The Bill and Melinda Gates Foundation,through which Bill Gates and his wife have pledged to spend billions on health,education,and overcoming poverty,is an example of natural capital.

When making a decision to purchase a new SUV for their growing family,George and Susan are like most Americans: they are more likely to buy products from companies that will save them money than from organizations that are known to be socially responsible.

As businesses are going green today,sustainability programs have produced environmental benefits,but unfortunately,they have also resulted in higher costs,lower revenues,and at times,have hurt organizations competitively.

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance.

After the scandals at WorldCom,Tyco,and Enron,in which company employees lost millions of dollars and their nest eggs,there was less concern for corporate governance and more interest in the development of corporate social responsibility.

When talking with Shane,a sales manager,she remarked that typically,her employees sincerely and positively overstate their job performance and abilities.This is an example of the ____ effect. A)overstatement B)motivated blindness C)holier-than-thou D)cheating E)fudging

Don,the owner of a fishing business,attended an entrepreneurship workshop that discussed the triple bottom line,which measures an organization's ____ performance. A)social,environmental,financial B)financial,diversity,environmental C)social,synergy,diversity D)marketing,profit,efficiency E)social,effectiveness,financial

What mechanism is used to provide a systematic assessment of an organization's triple bottom line? A)sustainability program B)code of ethics C)diversity program D)financial audit E)social audit

An organization's internal stakeholders consist of ___. A)board of directors,employees,suppliers B)board of directors,customers,owners C)customers,families of employees,employees D)board of directors,employees,owners E)competitors,the community,suppliers

The marketing director informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products to increase market share because they are part of the ______ environment of the company. A)strategic B)focused C)outlying D)external E)task

Patsy,a nurse,has decided to start a home health care service to assist with the medical,meal preparation,and light housecleaning needs of older adults.To grow her business,Patsy is focusing her marketing efforts on the older adult population;as she does this,she is involved with the _____ environment. A)task B)general C)internal D)natural capital E)strategic allies

Don was recently promoted,and his salary increase includes retirement investment options,so he has decided to get involved with an ESOP.This means Don ____. A)will be on the company's board of directors B)will participate in an Externship Supervisors' Oversight Plan C)will be buying shares of his company's stock D)is now part of the company's external stakeholders E)is in charge of an investment group

Amy,a successful banker and educator,has decided to retire,but she is very interested in staying involved with a company "that cares." So when asked to be on its board of directors,she gladly accepted the invitation.As a member of the board,Amy will be involved with the organization's ____. A)overall strategic goals and approval of major decisions B)daily company management and employee supervision C)overall strategic goals and global HR management D)daily specific company goals and management of a specific department E)oversight of sales and marketing

Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients;the board of that nonprofit is called the _____. A)overall board B)nonprofit trustees or the directors C)strategic board D)daily oversight committee E)board of trustees or board of regents

Marie and Marti are partners who solely own M and M Florist.As owners,they can ____. A)claim only limited liability B)avoid claiming any legal responsibility for M and M C)claim limited partnership D)claim an organization as their legal property E)decide not to pay their stockholders

To focus on improving company customer service this year,the CEO outlined a list of stakeholders to concentrate on: distributors,local communities,and the mass media.These three groups are ____. A)external stakeholders B)developmental stakeholders C)internal stakeholders D)vital stockholders E)interest groups

Rebecca and Donna,owners of Fine Coffee and Pastry Shop,are concerned because Panera Bread is opening a new store just one mile from their shop.Rebecca and Donna know that Panera will be offering similar products;therefore,Panera Bread will be a ____ to Rebecca and Donna. A)competitor B)competitive ally C)strategic ally D)distributor E)internal stakeholder

The plant manager of a factory that produces tires told Sal,the purchasing manager,to approach the suppliers of the plant to discuss discounts.A supplier to that factory ____. A)competes for customers or resources B)helps Sal's company sell its goods and services to customers C)joins forces with Sal's plant to achieve advantages neither can perform as well alone D)rescinds tax breaks when firms don't deliver promised jobs E)provides raw materials,services,equipment,labor,or energy

Every Saturday Mrs.Jones and hundreds of other shoppers visit ABC Market,a grocery store,to buy food for their home or business.These shoppers are _____ to ABC. A)suppliers B)community allies C)competitors D)customers E)partners

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store.ABC relies heavily on Best Supply to help sell its goods and services to customers.Best Supply is a(n)____ for ABC Brothers' products. A)competitor B)distributor C)customer D)subsidiary E)account ally

Ole McDonald,a successful farm equipment supply company in the Midwest,joined with A-Plus Supply,a national hardware and home retailer,so Ole McDonald can open stores in other regions and A-Plus can now offer a high-quality product in the farm community.This is an example of a ___ relationship. A)distributor B)competitor C)customer D)supplier E)strategic allies

Since the 1950s,the percentage of the U.S.labor force represented by unions has _____. A)rapidly increased B)steadily increased C)fallen to nearly zero D)steadily declined E)remained unchanged

Local communities are stakeholders of organizations because communities _____. A)rely on the products the companies produce B)rely on the tax base from companies,and their employee payrolls,to thrive C)wish to join forces with organizations to create strategic alliances D)need the publicity of national organizations E)enjoy the changes that progress tends to bring

The city government of Pleasantville promised significant tax breaks to a large retailer if it expanded its presence,which would result in nearly 200 new local jobs.However,the retailer found another location better for expansion.As a result,the city of Pleasantville instituted clawbacks by _____. A)increasing the tax breaks B)forcing the retailer to pay large fines C)rescinding the tax breaks D)boycotting the retailer E)forcing the retailer to unionize

When individuals who want to start a new venture obtain many small amounts of money from many people,this type of financing is called ____. A)crowdfunding B)multifunding C)duplicating D)venture-funding E)angel-financing

Regulatory agencies that establish ground rules under which organizations may operate are known as ____. A)whistle-blowers B)government moderators C)government regulators D)interest groups E)watch dogs

Joe,a lobbyist who represents a certain industry,is meeting with several members of Congress to try to exert political influence by contributing funds to the lawmakers' election campaigns.Joe also is involved in a letter-writing campaign to promote his cause.Joe represents a ____. A)government regulator B)task force C)focus group D)strategic alliance E)special-interest group

The mass media is considered part of an organization's _____. A)general environment B)task environment C)internal stakeholders D)macroenvironment E)distribution network

The macroenvironment includes these forces: _______. A)economic,technological,sociocultural,diversity B)diversity,microenvironment,sociocultural,demographic,political-legal C)globalism,technological,sociocultural,demographic,microenvironment D)economic,technological,sociocultural,demographic,political-legal,international E)international,demographic,diversity,family,culture,technology

The macroenvironment is also known as the ______. A)economic environment B)diversity source C)microenvironment D)international arena E)general environment

Tom and his managers are discussing the unemployment,inflation,and interest rate trends that might affect his chain of coffee shops over the next 12 months and the projected growth in the areas where his stores are located.The managers are studying the ______ forces in their organization's general environment. A)technological B)socio-cultural C)political D)economic E)international

Americans driving less and young people having less interest in cars are examples of trends in society known as ____ forces. A)diversity B)financial C)political D)sociocultural E)legal

New developments in methods for transforming resources into goods or services are _____ forces. A)sociocultural B)technological C)demographic D)political-legal E)media

When a food distributor looks at changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America,it is looking at the ____ forces. A)economic B)demographic C)technological D)political E)legal

Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization are ____ forces. A)political-legal B)demographic C)financial D)socio-cultural E)technological

Changes in the economic,political,legal,and technological global system that may affect an organization are ______ forces. A)local B)demographic C)international D)technological E)internal stakeholder

Joe,owner of ABC Electronics,just discovered that his trusted friend Paul,his accountant for over 30 years,has been mishandling the company books and stealing from the company bank account.Joe must decide whether to publicly ignore his friend's actions and avoid bad publicity for the firm,an example of ____. A)a whistle-blower B)a synergy factor C)corporate governance D)a social audit E)an ethical dilemma

Ethics are _____. A)influences arising from changes in the characteristics of a population B)a type of written code for an organization C)standards of right and wrong that influence behavior D)behavior accepted as "right" E)rules to be enforced in an organization

The relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior are known as ____. A)morals B)norms C)ethical advantages D)values E)fairness factors

To increase profitability,top management of a national retailer needs to decide if it will close several stores.Management knows that by closing the locations,it will save the company millions of dollars and benefit many stockholder groups and individuals,compared to keeping those stores open and benefiting fewer people.This logic is an example of the ___ approach. A)individual B)majority C)utilitarian D)justice E)moral-rights

Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term.However,farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer's best long-term interests,is reflected by the _____ approach to deciding ethical dilemmas. A)individual B)group C)moral-rights D)utilitarian E)justice

With recent reports of identity theft,Mr.Jones,the CEO of a construction company,is concerned about his employees' privacy,and because of recent accidents on the job,he is also worried about the safety of his workers.Mr.Jones's concerns with privacy and health and safety are outlined in the _____ approach to deciding ethical dilemmas. A)individual rights B)justice C)impartial D)utilitarian E)moral rights

The justice approach to deciding ethical dilemmas is guided by _____. A)increasing profits and workplace diversity B)respect for the fundamental rights of human beings C)respect for impartial standards of fairness and equity D)respect for society and the environment E)what will result in the individual's best long-term interests

When Bernard Madoff used money from newer investors to pay off older ones,this was an example of ____. A)illegal lobbying B)insider trading C)an ethical dilemma D)a Ponzi scheme E)an ethical climate

Greg,the president of an IT company,purchased a large number of shares of company stock before the news of a new revolutionary computer processor was made public that will cause company profits to increase considerably.This action by Greg could be considered an example of _____. A)a Ponzi scheme B)internal information C)ethical behavior D)information abuse E)insider trading

The Sarbanes-Oxley Act of 2002 established requirements for ____,and for noncompliance,penalties of ______. A)proper financial record keeping for private companies;as much as 25 years in prison B)proper financial record keeping for government organizations;as much as 25 years in prison C)code of ethics guidelines for organizations;as much as 2 million dollars D)proper financial record keeping for public companies;as much as 25 years in prison E)all corporate financial records to be made public;as much as 2 million dollars

Jane,a successful store manager,leads her employees by encouraging them and showing that she genuinely believes in them,and she encourages group and team efforts.Jane manages at Kohlberg's _____ level of personal moral development. A)unconventional B)nonconventional C)conventional D)postconventional E)preconventional

Don has managed several restaurants for over 50 years and is close to retirement.With his maturity,his decisions are sound,based on solid,proven values.Don tends to be an independent thinker who focuses on empowering his employees.Don manages at Kohlberg's ______ level of personal moral development. A)conventional B)nonconventional C)unconventional D)preconventional E)postconventional

The employees of Mom's Pizza,a local pizza restaurant,feel that the owners and managers really try to follow the ethical policies outlined in their company's code of ethics.Pete,a cook,said that "Just today,Joe,our manager,called our supplier to let them know we received an extra case of tomatoes that we did not pay for.And they do this type of thing almost every day." Mom's Pizza maintains a(n)_____. A)dilemma-free climate B)profitable climate C)ethical climate D)holier-than-thou atmosphere E)synergy environment

A formal written set of ethical standards guiding an organization's actions is a(n)____. A)moral compass B)business plan C)dilemma document D)ethical plan E)code of ethics

Phillip said to a dear friend,"I am fed up with my company's continual disregard for human life and the environment.They just continue to secretly dispose of hazardous chemicals into a nearby stream.I don't know how they get away with it! I am going to tell somebody today." Phillip's decision to tell somebody about his company's actions is an example of a(n)______. A)preconventional manager B)ethics officer C)backstabber D)invisible hand E)whistle-blower

As the CEO of a company that produces products for schools,Hannah feels that her company needs to not only produce a profit but also do things that benefits society.This type of company attitude is an example of ____. A)individual responsibility B)a green attitude C)social responsibility D)moral rights E)corporate philanthropy

After more than 100 years in business,Don,the president of a successful family-owned company,wants to give back to the people of the community for the many years of success that they have given to my father and me.He decides to donate a significant portion of profits to a charity every year.What Don's company is doing is an example of ___. A)corporate social responsibility B)corporate governance C)responsibility code of ethics D)economic responsibility E)legal responsibility

Sustainability is economic development that ____. A)meets future needs without compromising present needs B)generates greater profitability C)produces greater diversity D)meets present needs without compromising the ability of future generations to meet their own needs E)is a idea of Frank and Lillian Gilbreth that proposes how to cut costs but increase efficiency

Business scholar Archie Carroll suggested that first and primary responsibility of an organization in the global economy is to ___. A)be a good global corporate citizen,as defined by the host country's expectations B)be profitable consistent with expectations for international business C)be ethical in its practices D)obey the law of host countries as well as international law E)have a green attitude

Mr.Jones,a wealthy businessman who made his fortune in the oil industry,understands the importance of a college education,so he has given over $10 million over the last several years to colleges and universities.This is an example of _____. A)philanthropy B)sustainability C)a servant leader D)mentoring E)corporate governance

According to researcher Daniel Pink,when employees feel a sense of purpose-when their work has meaning-workers _____. A)will continue to work past the age of 90 B)tend to focus on short-term happiness C)sell more product D)eliminate all company fraud E)are more efficient,loyal,and creative

Corporate governance is the system ____. A)of governing an industry,such as the trucking industry,to protect customers B)that protects citizens against unethical state government C)of governing a company so that the interests of corporate owners and other stakeholders are protected D)of monitoring an industry,such as attorneys,to ensure ethical practices E)of monitoring corporate political donations

On an organization's board of directors,inside directors ____;outside directors _____. A)are supposed to be elected from outside the organization;may be members of the firm B)must work for the company;are also members of the firm C)may be members of the firm;are supposed to be elected from outside the firm D)are always retired executives;typically are employees E)must work for the organization;are paid members of the organization

For organizations' board of directors,and in particular,their oversight of the CEO,the biggest complaint appears to be _____. A)the lack of interest in company matters B)the lack of corporate social responsibility C)the focus on profit above employee satisfaction D)the independence of the directors E)the ethical code of management

Contrast the "holier-than-thou" effect and motivated blindness.Explain the dynamics behind cheating.

Describe the triple bottom line.Give an example.

Summarize stakeholders.Describe the three internal stakeholders.

Summarize external stakeholders.Describe three external stakeholders.

Joseph,a small café owner,is facing possible bankruptcy due to a severe decrease in business in his restaurant.Tom,a friend of Joseph,approached him about hiring illegal immigrants because Joseph can pay those workers a lower pay rate and save on payroll.What should Joseph do?

Summarize the Sarbanes-Oxley Act of 2002 and describe the mandates it placed on organizations.

Summarize Laurence Kohlberg's three levels of personal moral development.

Contrast the viewpoints for and against social responsibility.

Compare the four levels of Carroll's global corporate social responsibility pyramid.Give an example of what is desired,expected,or required at each level by global stakeholders or global capitalism at each level.B.Carroll,corporate social responsibility rests at the top of a pyramid of a corporation's obligations,right up there with economic,legal,and ethical obligations.That is,while some people might hold that a company's first duty is to make a profit,Carroll suggests the responsibilities of an organization in the global economy should take the following priorities: 1.Be a good global corporate citizen,as defined by the host country's expectations.(Top of pyramid,philanthropic responsibility)

Explain the recent concerns for the independence of the board of directors.