Chapter 03 The Manager’s Changing Work Environment and Ethical
Responsibilities: Doing the Right Thing Answer Key
True / False Questions
1.
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.
2.
With the “holier-than-thou” effect, people tend to be overly optimistic about their own
abilities and fortunes—to overestimate their standing in class.
3.
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.
4.
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.
5.
Stakeholders are competitors of the organization who have an interest, or stake, in
stealing a company’s business.
6.
External stakeholders include the owners and board of directors.
7.
The owners of an organization consist of all those who can claim it as their legal property.
8.
The board of directors of a corporation is responsible to see that the company is being run
according to the employees’ interests.
9.
With a sole proprietorship, the board of directors is a vital part of major company
decisions.
10.
Members of the board of directors are elected by the stockholders.
11.
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.
12.
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.
13.
The task and general environments make up an organization’s internal environment.
14.
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.
15.
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.
16.
Most customers value price over service, and are unconcerned by poor customer
relations.
17.
The first law of business is to take care of the employees and stockholders.
18.
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.
19.
Pete’s Janitorial Supply furnishes janitorial and paper products to cleaning services. Pete’s
is an example of a supplier.
20.
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.
21.
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.
22.
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.
23.
Typically, labor unions tend to represent salaried workers, and professional associations
tend to represent hourly workers.
24.
Private-sector unionization has slightly increased, because despite the recession, jobs in
manufacturing and construction have increased.
25.
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.
26.
Marketing for a startup small business to obtain many small new customers is known as
crowdfunding.
27.
Associations that are utilized by government agencies to monitor manufacturing and
agricultural needs and developments are known as government regulators.
28.
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.
29.
Managers can usually ignore the mass media without adverse effect.
30.
The general environment, or macroenvironment, includes six forces: economic,
technological, sociocultural, demographic, political-legal, and international.
31.
Managers may be able to control some forces in the general environment, but they can’t
control those in the task environment.
32.
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.
33.
Technological forces, such as air-conditioning, are new developments in methods for
transforming resources into goods or services.
34.
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.
35.
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.
36.
Political-legal forces are changes in the way politics shape laws and laws shape the
opportunities for and threats to an organization.
37.
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.
38.
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.
39.
Choosing between product performance and employee performance is what most ethical
conflicts are about.