40.
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.
41.
The beliefs by individuals regarding what they feel others will observe in their behavior are
called ethics.
42.
Ethical behavior is behavior that is accepted as “right” as opposed to “accepted” according
to the standards of what is right or wrong.
43.
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.
44.
An organization’s value system is the belief of employees and customers about that
company’s product and service quality.
45.
The utilitarian approach is guided by what will result in the individual’s best long-term
interests.
46.
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.
47.
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.
48.
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.
49.
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.
50.
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.
51.
Psychologist Laurence Kohlberg has proposed three levels of personal moral development:
preconventional, conventional, and postconventional.
52.
Companies screen out dishonest, irresponsible workers after they are hired by checking
employees’ résumé and references.
53.
A code of ethics is an insurance document specifying upper management’s ethical policy
and procedures regarding health care with the Affordable Care Act.
54.
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.
55.
A whistle-blower is usually a stakeholder who reports organizational misconduct to the
public.
56.
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.
57.
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.
58.
Milton Friedman represents the view that the social responsibility of business is to
maintain a balance between business and environmental concerns.
59.
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.
60.
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.
61.
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.
62.
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.
63.
The system of governing a company so that the interests of corporate owners and other
stakeholders are protected is known as corporate governance.
64.
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.
Multiple Choice Questions
65.
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.
66.
Alonzo, the president of the student class and honor society, has been very busy and did
not study for the history test. Although Alonzo is very confident, he realizes that he
probably will not do well on the exam and has talked himself into cheating because he
feels it is worth it to maintain his strong GPA, which he will need to be accepted by a good
college. He tells his friend, “I don’t usually do this, but I really have to do it.” The cause of
Alonzo’s behavior is ____.
67.
Don, the owner of a fishing business, attended an entrepreneurship workshop that
discussed the triple bottom line, which measures an organization’s ____ performance.
68.
What mechanism is used to provide a systematic assessment of an organization’s triple
bottom line?
69.
An organization’s internal stakeholders consist of ___.
70.
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.
71.
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.
72.
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 ____.