Question 1

The employees of a production facility that produce parts for boats are meeting to discuss ways to control rising costs,which are affecting their bonus (incentive pay).The employees are internal stakeholders of the factory.

Accepted Answer

The employees are directly impacted by the factory's financial performance, as their bonus pay is affected by rising costs. As internal stakeholders, they have a vested interest in the success of the factory.

Question 2

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 steal the money 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.

Accepted Answer

The psychological mechanism that causes Paul to want to steal the money is not poor self-esteem, but rather rationalization or justification.

Question 3

Alonzo,the president of his high school's senior class and honor society,has been very busy and did not study for an important history test.Although Alonzo is very confident,he realizes that he probably will not do well on the test.He has talked himself into cheating because he believes that cheating will help him maintain his strong GPA,which he will need to be accepted by a good college.He tells his friend,"I don't usually cheat,but I really have to do it." Which of the following might explain Alonzo's behavior?

Accepted Answer

Motivated blindness refers to the phenomenon where individuals intentionally avoid or ignore information that conflicts with their goals or desires. In this case, Alonzo's desire to maintain his GPA and be accepted into a good college may be causing him to ignore the fact that cheating is wrong and could have consequences.

Question 4

When the Kiddie Village Daycare Center looks at the recent increase in the number of working mothers in its neighborhood to determine how many employees to hire,its managers are studying demographic forces.

Accepted Answer

The increase in the number of working mothers in the daycare center's neighborhood is a demographic force, as it relates to changes in the population characteristics and trends.

Question 5

What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs,often based on predefined goals?

Accepted Answer

A social audit is designed to evaluate an organization's performance in implementing socially responsible programs with pre-defined goals. Socially responsible programs can cover various areas such as environmental impact, community involvement, and ethical conduct. A social audit provides a systematic assessment of an organization's performance in meeting these goals and ensures that the company's actions are aligned with its social responsibility objectives. The audit is typically conducted by an independent third party and involves an analysis of the company's policies, procedures, and practices, along with the collection of data and feedback from stakeholders.

Question 6

Pleasant Resort,a successful 100-year-old hotel and resort,entered into a co-marketing arrangement with A-Plus Hotels,a five-star hotel chain.Both companies benefit from the new relationship.Pleasant is now able to market its facility and services through A-Plus's marketing team,and A-Plus Hotels now offers access to an upscale resort that it can recommend to its customers who are looking for a resort experience.A-Plus Hotels and Pleasant Resort can be considered strategic allies.

Accepted Answer

The co-marketing arrangement and mutual benefits suggest that A-Plus Hotels and Pleasant Resort are strategic allies.

Question 7

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

Accepted Answer

The Sarbanes-Oxley Act did not set up the Federal Trade Commission. The act primarily focused on financial reporting and corporate governance for public companies. The FTC is a separate agency established by the Federal Trade Commission Act. Additionally, penalties for noncompliance with the act include fines, imprisonment of up to 20 years, or both, but not up to 25 years as stated in the statement.

Question 8

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

Accepted Answer

This statement is true. The six forces of the general environment are economic, technological, sociocultural, demographic, political-legal, and international.

Question 9

An organization's internal stakeholders consist of

Accepted Answer

Internal stakeholders are individuals or groups within the organization who are involved in the organization's decision-making and actions. The board of directors, employees, and owners are all internal stakeholders because they have a direct impact on the organization's operations and success. Customers, competitors, the community, and suppliers are considered external stakeholders. Therefore, options A, B, and C are incorrect.

Question 10

Shane,a sales manager,remarked that typically,her employees sincerely and positively overstate their job performance and abilities.This is an example of the ____ effect.

Accepted Answer

The holier-than-thou effect refers to individuals' tendency to overestimate their moral standing compared to others. The scenario described in the question is a type of holier-than-thou effect, as the employees are overestimating their job performance and abilities.

Question 11

Don,the owner of a bait and tackle shop,attended an entrepreneurship workshop that discussed the triple bottom line,which measures an organization's ____ performance.

Accepted Answer

The triple bottom line measures an organization's social, environmental, and financial performance. This was discussed in the entrepreneurship workshop that Don attended, so A is the correct answer.

Question 12

Just before introduction of a new revolutionary laptop,the Top205 by Top Computers,Greg,the CEO of Top,was informed that a problem with a part inside the Top205 may cause reliability issues.Greg knows that correcting the problem will delay the introduction of the product,and be expensive due to possible order cancelations and added advertising costs.But he also knows that allowing the new flawed computer into the market will affect Top Computers' reputation.Greg's decision whether to delay the introduction of the Top205 or proceed as planned is an example of an ethical dilemma.

Accepted Answer

An ethical dilemma is a situation where a person must choose between two or more conflicting values or obligations, and Greg is faced with a choice between prioritizing profits and upholding Top Computers' reputation for quality products. His decision has ethical implications, and either choice he makes will have consequences.

Question 13

The task environment of Top-Notch Sewing consists of just two groups,customers and stockholders,who give the employees and management of Top-Notch the daily tasks that the company's employees will handle.

Accepted Answer

The task environment of Top-Notch Sewing would also include competitors, suppliers, and regulatory agencies, in addition to customers and stockholders.

Question 14

Paul,the vice president of marketing in an international sales organization,is considering opening 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 his company's expansion into the new area.These forces that Paul is studying are international forces.

Accepted Answer

The passage clearly states that Paul is studying "current economic, political, legal, and technological global forces" in a new country, which are all international forces that can impact his company's expansion.

Question 15

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

Accepted Answer

Sustainability programs can lead to cost savings, increased efficiency, and improved brand reputation, which can enhance competitiveness and potentially increase revenues.

Question 16

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

Accepted Answer

Corporate governance is the system of governing a company so that the interests of corporate owners and other stakeholders are protected. After the Enron and other scandals, there was a renewed interest in corporate governance.

Question 17

Habitual cheating tends to begin with small infractions,such as illegally downloading books and songs,and then grows by increments into an ongoing deliberate strategy of deception or fraud.

Accepted Answer

Habitual cheating does tend to start with small infractions and can escalate over time, becoming an ongoing intentional pattern of dishonest behavior.

Question 18

Despite recent pressure from stockholders to increase profits,World Extraction Corp. ,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 laws of host countries as well as international law.World Extraction Corp.provides an example of a company acting in a socially responsible way.

Accepted Answer

The passage states that World Extraction Corp. has maintained a practice of consistently acting ethically by being a good global corporate citizen, taking host-country and global standards into consideration, and obeying laws. This is an example of a company acting in a socially responsible way.

Question 19

Companies can reduce unethical behavior by offering a case-based approach to ethics training that presents employees with ethical dilemmas and clarifies expectations.

Accepted Answer

Presenting employees with ethical dilemmas and clarifying expectations through a case-based approach can help them understand how to handle similar situations and make more ethical decisions.

Question 20

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.

Accepted Answer

The statement is false. Prior to the 2010 natural-gas pipeline explosion in San Bruno, Pacific Gas & Electric had redirected resources from safety programs to executive compensation and shareholder dividends.

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