Answers to Questions in the Text
Chapter 2: The Environment: Culture, Ethics, and
Social Responsibility
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these answers as part of your
lecture before, after, or in place of getting student answers.
2–1. State the mission of an organization, preferably an organization you work for or have worked for.
2–2. Illustrate the systems process for an organization you work for or have worked for.
At McDonald’s we get inputs including meat, buns, lettuce, cheese, pickles, onions, sauce, and Big Mac boxes. We cook the
2–3. Identify the quality and value of a product you purchased recently.
I bought a used 2006 Honda Accord because of its reputation for being a quality automobile. My Honda was a good value
2–4. Identify the cultural heroes, stories, slogans, symbols, and ceremonies for an organization you are/were a member
of.
At Springfield College, I’ve heard that Dogget was a hero. I don’t recall any stories. The Springfield College triangle of spirit,
2–5. Describe the organizational culture at all three levels for a firm you work for or have worked for. Does the
organization have a strong or a weak and a healthy or an unhealthy culture?
I work at Abdows Big Boy Restaurant. Our major assumption is deeply ingrained so that is it the same as our values and
beliefs. Our value and belief is customer satisfaction. We are trained, and see by example, how important it is to give quick,
2–6. Give an example of how one firm’s competitors have affected that business.
2–7. Give an example of how technology has affected one or more organizations, preferably one you work for or have
worked for.
When I used to shop at Costco Wholesale, it had two people at the checkout. One person would read the product numbers
2–8. Give an example from an organization where you work or have worked of behavior at each of the three levels of
moral development.
At CDR Grocery, where I used to work, many of my coworkers displayed preconventional behavior by lying to look good.
2–9. Give at least two organizational examples of unethical behavior and the justification that was used in each instance.
2–10. Select a business and identify how it manages ethics.
When I worked at Allstate Insurance, it had a code of ethics that stressed being fair to the policyholder. Top management
2–11. Select a business and identify how it is socially responsible on a specific issue.
I’m the coach for the Blue Angels Little League baseball team in my hometown. I went to Pizza Plaza and got it to be our
2–12. Select a business and identify its sustainability practices.
I work for Walker Construction. We recycle all paper and plastic products at our office. Our office has LEED–certified
REVIEW QUESTION ANSWERS
2–1. What are the factors within the internal environment?
2–2. What are the components of the systems process?
The systems process has four components: (1) inputs, (2) transformation, (3) outputs, and (4) feedback.
2–2. What are the components of the systems process?
2–3. How is quality determined, and why do people buy products?
2–4. What are the five artifacts of organizational culture?
The five artifacts of culture are: (1) heroes, (2) stories, (3) slogans, (4) symbols, and (5) ceremonies.
2–5. What are the levels of culture?
2–6. What is a learning organization?
2–7. What is the external environment?
The organization’s external environment includes the factors outside its boundaries that affect its performance.
2–8. What are the levels of moral development?
2–9. How do people justify unethical behavior?
People justify unethical behavior by using moral justification for the behavior, including displacement of responsibility,
2–10. What is the stakeholders’ approach to ethics?
2–11. What is social responsibility?
2–12. What are some ways in which businesses are going “green”?
Firms are going green by constructing energy-efficient buildings, installing or upgrading recycling systems, using
COMMUNICATION SKILLS ANSWERS
2–1. Do you believe that most organizations focus on creating customer value?
Answers will vary.
2–2. Do you think that all organizations should use total quality management (TQM)? Explain your answer.
2–3. What is the relationship among management and mission, resources, the systems process, and structure? Which of
these internal factors are ends, and which are means?
Management determines the mission, resources, systems process, and structure; all affect organizational performance.
2–4. Which of the five artifacts, or important ways that employees learn about organizational culture, is the most
important?
2–5. What is the difference between a strong and weak organizational culture, and which is preferable?
Organizations with strong cultures have employees who subconsciously know the shared assumptions; consciously
2–6. What is symbolic leadership? Is it important?
Symbolic leaders articulate a vision for an organization and reinforce the culture through slogans, symbols, and
2–7. What is a learning organization? Should a manager create one?
2–8. If you can’t control the external environment, why be concerned about it anyway?
Businesses should be concerned about the external environment because it can affect the business’s performance.
2–9. Do you believe that ethical behavior will pay off in the long run?
Answers will vary, but students should realize the importance of ethics in business.
2–10. Do you have your own guide to ethical behavior that you follow now? Will you use one of the guides from the text?
If yes, which one and why?
2–11. Can ethics be taught and learned?
According to a study done at Harvard, the answer is yes; however, not everyone agrees. But most people realize that in
2–12. Do you believe that companies benefit from being socially responsible? Why or why not?
2–13. Do you believe that all businesses should go “green”? Why or why not?
Answers will vary.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 2–1: The Internal Environment
Identify the internal environmental factor underlying each statement.
A. management and culture
B. mission
C. resources
D. systems process
E. structure
1. “We plant seeds, grow vegetables, cut them up, place them in a bag, and sell them to Stop and Shop supermarkets as
locally grown.”
D. Systems process. Inputs are being converted into outputs.
3. “Yes. We sell donuts, but we make more money on real estate by renting our facilities to franchisees.”
B. Mission. Real estate is the actual purpose of the business.
4. “We are splitting computer sales into desk PCs and mobile laptops and tablets.”
5. “The CEO has been fired for unethical behavior, and the CFO is moving up to replace him.”
Applying the Concept 2–2: Strong and Weak Cultures
Identify whether each statement reflects an organization with a strong or weak culture.
A. strong culture
B. weak culture
6. “Oh no, do I really have to listen to the story about how the company founder Ted walked three miles in a snowstorm
to deliver the package on time again?”
A. Strong culture. It appears that there is conformity with everyone dressing similarly. If some people wear jackets and ties
7. “Everyone in the department acts differently, so I guess I can just be me rather than trying to act in a manner
acceptable to others.”
8. “It’s hard to know if I need to follow the ethics code because managers act unethically every now and then.”
B. Weak culture. When expected behavior is not clear, there is a weak culture.
9. “I started to tell this ‘dumb blond’ joke, and the other employees all gave me a dirty look, so I stopped.”
10. “When I walked around the department during my job interview, I realized I’d have to come to work in formal attire
because all the women were wearing dresses or suits.”
A. Strong culture. The group is giving a “dirty look” to convey that ethical jokes are not acceptable behavior. Employees
Applying the Concept 2–3: The External Environment
Identify which external environmental factor is referred to in each statement.
A. customers
B. competition
C. suppliers
D. labor force
E. shareholders
F. society
G. technology
H. the economy
I. governments
11. “Are you going to close that sale to Costco?”
12. “If we don’t get a 4% raise, the Teamsters union will go on strike at our company.”
13. “Animal activist groups pressured the Ringling Brothers circus to the point that it will stop having elephant acts in
2018.”
B. Competition. AT&T lost its monopoly, as it has competition now.
14. “KFC bought some bad chickens in China, and sales declined.”
15. Our company was going to be sold to Sprint, but the government said that would be in violation of antitrust laws.”
16. “Tesla is working on software for its cars to be self-driven.”
G. Technology. New software is a technology change.
17. “LinkedIn and other social media websites took some of the traffic flow away from Facebook.”
18. “Since the recession ended, we have had an increase in sales, but revenues are still not above pre–recession levels.”
19. “The owners of the company will get to vote on its being acquired or staying independent.”
Applying the Concept 2–4: Level of Moral Development
Identify each statement by its level of moral development.
A. preconventional level
B. conventional level
C. postconventional level
20. I can’t lie to customers because it is against my religion; it is a sin to lie.
21. Carl says to Lolo, “You’re not selling as much as the rest of us. You really should lie to customers like we do. If the boss
asks why you aren’t selling as much as the rest of us, you better not tell him we lie, or you will be sorry.”
B. Conventional. Carl is using peer pressure to get Lolo to be unethical.
22. Latavia says to John, “There is no big deal in telling lies to customers. We are helping them buy a good product.”
Lussier, Management Fundamentals, 7e
© 2017, SAGE Publications
Applying the Concept 2–5: Ethical Approach
Identify each statement by its approach to making ethical decisions.
A. Golden Rule
B. four-way test
C. stakeholder’s approach
D. discernment and advice
E. code of ethics
23. I’m a member of Rotary International, and I use its approach when I make decisions.
B. Four-Way test. The Rotary approach is the four-step method.
24. When I make decision, I follow the guidelines the company gave all of us to use to make sure I’m
doing the right thing.
25. I try to make sure that everyone affected by my decisions gets a fair deal.
26. I try to treat people the way I want them to treat me.
A. Golden rule. This statement is essentially saying Do unto others as you would want them to do unto
you.
27. Latoya, what do you think of my decision for handling this customer’s complaint?
JOIN THE DISCUSSION ANSWERS
Join the Discussion 2–1: Downsizing and Part-Time Workers
As firms struggle to compete in the global economy, many have downsized. Downsizing is the process of
cutting resources to get more done with less and thereby increase productivity. In some firms, the
positions formerly held by full-time employees are filled by part-time workers. Using part-time
employees saves companies money because such employees do not receive any benefits (e.g., health
insurance), in contrast to full-time employees, who are entitled to benefits. Walmart is known for
maintaining a very high ratio of part-time to full-time employees as a way of keeping costs down.
Walmart’s employment policy is one of the reasons the chain can offer lower prices.
1. Is downsizing ethical and socially responsible?
Answers vary
2. Is using part-time employees rather than full-time ones ethical and socially responsible?
Lussier, Management Fundamentals, 7e
© 2017, SAGE Publications
3. Would you be willing to pay higher prices at stores, such as Walmart, so that more full-time
workers could replace part-time workers?
Join the Discussion 2–2: Sex, Profanity, and Violence
The Federal Communications Commission (FCC) has the power to regulate television broadcasts.
Advocates for more regulation (Parents Television Council and Mediawatch-UK, formerly the National
Viewers’ and Listeners’ Association) state that TV shows with violent acts, profanity, and sexual content
should be shown later at night when children most likely will not be watching. For example, many
Seinfeld episodes have sexual themes, and the show was not aired until 9:00 P.M., but now it’s shown at
all hours of the day. Sex and the City, Jersey Shore, and other shows with sexual content and violence
are also shown at all hours. However, advocates against regulation (National Coalition Against
Censorship) don’t want censorship at all, on the grounds that it violates free speech. They claim it’s up
to the parents to restrict viewing they don’t approve of.
1. How does TV influence societal values? (Consider that many children watch as many as five hours of
TV per day.)
2. Do TV shows that include sex and violence reflect religious and societal values?
Answers vary
3. Is it ethical and socially responsible to air TV shows with sexual content, profanity, and violence
during hours when children are watching?
4. Is it ethical and socially responsible to portray women as sex objects?
Answers vary
5. Should the FCC regulate television, and if so, how far should it go? Should it make networks tone
down the sex and violence, or take shows off the air?