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

Question 1

Some firms do not have a board of directors.

Answer 1

True
Explanation: Not all firms have a board of directors.A lawyer, for instance, may operate as a sole proprietor, making all her own decisions.

Question 2

There are stakeholders in both an organization's internal and its external environments.

Answer 2

True
Explanation: Stakeholders are the people whose interests are affected by an organization's activities.Figure 3.1 shows that there are both internal and external stakeholders.

Question 3

Customers are those who pay to use an organization's goods or services.

Answer 3

True
Explanation: Customers are those who pay to use an organization's goods or services.

Question 4

Studies show that students who cheat and don't actually do the assigned work are more likely to fail anyway.

Question 5

In a corporation, the chief executive is typically elected by the stockholders of the firm.

Question 6

Prior to its natural gas pipeline explosion, Pacific Gas and Electric (PG&E) had an incentive system that encouraged crews to find leaks, which led to steep increases in repair costs.

Question 7

The task environment consists of groups that present workers with daily tasks to handle.

Question 8

A supplier is a person or an organization that provides materials or labor to consumers.

Question 9

In an organization's environment, internal stakeholders include the customers of an organization.

Question 10

Only those with an ownership interest in a company are known as stakeholders.

Question 11

Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle.The Nebraska company would best be described as a distributor for the Far East.

Question 12

Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment.

Question 13

The psychological mechanism of motivated blindness discourages cheating among students.

Question 14

Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization.In fact, he works for an American carmaker.Therefore Rafael is an external stakeholder for Pierson.

Question 15

The two parts of the external environment are the task environment and the socio-political environment.

Question 16

Competitors compete solely for customers and raw materials.

Question 17

Cheating may be done as a way to redress perceived unfairness.

Question 18

Customers have more faith in health insurance companies to handle complaints than they have in apparel outlets.

Question 19

Distributors have been hurt by the rise in popularity of the Internet.

Question 20

Internal stakeholders include the employees of an organization.

Question 21

The mass media is part of an organization's general environment.

Question 22

To a commercial airline, the Federal Aviation Agency (FAA) is an example of a stakeholder.

Question 23

External stakeholders include labor unions.

Question 24

Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.

Question 25

The standards of right and wrong that influence behavior are called ethics.

Question 26

Factors such as unemployment conditions and interest rates would be considered part of demographic forces in an organization's general environment.

Question 27

A situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal is called a moral challenge.

Question 28

When the independent, high-end U.S.Grant hotel in downtown San Diego joined Starwood's Luxury Collection of hotels to gain "worldwide exposure," it was an example of a distributor relationship.

Question 29

Political-legal forces are changes in the economic, political, legal, and technological global system that may affect an organization.

Question 30

Demographic forces include influences on an organization arising from changes in the characteristics of a population, such as age or ethnic origin.

Question 31

An organization's value system stressing financial performance may conflict with its value system stressing cohesion among employees.

Question 32

Government regulators are regulatory agencies that establish ground rules under which organizations may operate.

Question 33

In business, the extended environment is another name for general environment.

Question 34

Ethical behavior is defined as a behavior that creates the greatest good for the greatest number of people.

Question 35

The National Rifle Association is an example of a government regulator.

Question 36

For established companies, financial institutions are not external stakeholders.

Question 37

The percentage of the labor force represented by unions has steadily increased since the 1950s.

Question 38

An interest in health and fitness leading to a boost in sales of athletic shoes demonstrates a sociocultural force.

Question 39

As a manager, you cannot control the forces in the general environment.

Question 40

The economic integration of the European Union can best be considered part of the economic forces.

Question 41

The majority of American adults are likely to purchase from companies with ethical business practices only if their prices are not higher.

Question 42

The purpose of a code of ethics is to state an organization's expectations for the behavior of all its external stakeholders.

Question 43

Ethics training can enhance high ethical standards in the workplace, even when a company has of a strong code of ethics.

Question 44

Using in-name-only offshore headquarters to minimize U.S.tax burdens is an example of corporate social responsibility.

Question 45

Using cash from newer investors to pay off older ones is known as a Kohlberg scheme.

Question 46

The Sarbanes-Oxley Act was a response by Congress to an array of high-profile U.S.business scandals at the beginning of the 21^st century.

Question 47

A moral-rights approach to ethical behavior taken by a manager would often result in her performing a "cost-benefit" analysis.

Question 48

Herman Miller, maker of office furniture, practices corporate social responsibility through sustainability efforts.

Question 49

Personality tests can be used to identify potentially dishonest people before they are hired.

Question 50

Andrew Carnegie, steel magnate and supporter of free libraries, is an example of a philanthropist.

Question 51

Corporate social responsibility (CSR) is the notion that corporations are expected to create a positive and enriching environment for employees.

Question 52

In some cases, the IRS financially rewards whistle-blowers.

Question 53

The flaw in the individual approach is that what results in the individual's best interests is not always what is in everyone's interest long term.

Question 54

According to Milton Friedman, the social justification of a business's existence is in its benefit to stockholders, creation of jobs, and expansion of the economy.

Question 55

Human trafficking is unethical according to the moral-rights approach.

Question 56

The first stage of personal moral development is known as the conventional level.

Question 57

Philanthropy means making charitable donations to benefit humankind.

Question 58

Ethical responsibility is at the top of Carroll's corporate social responsibility pyramid.

Question 59

It is still unclear whether ethical behavior and social responsibility give an organization a competitive advantage.

Question 60

The approach to ethical behavior that is guided by respect for fairness and equity is the integrity approach.

Question 61

Which of the following is an example of an external stakeholder for the department store chain Macy's?

A)A member of the Macy's board of directors.
B)A customer who purchases a mattress at Macy's.
C)A sales associate at Macy's.
D)Owners of Macy's stock.
E)The CEO of Macy's.

Question 62

Having a Board of Directors whose outside membership is chosen by the CEO or works closely with the company itself strengthens corporate governance.

Question 63

Demographic forces are part of the __________ environment of organizations.

A)internal
B)mechanical
C)controllable
D)task
E)general

Question 64

Which of the following is an example of an internal stakeholder of an organization?

A)A local news station.
B)The distributor for one of the finished products.
C)A newly formed union.
D)The largest stockholder of the company.
E)The suppliers of raw materials for one of the products.

Question 65

Employees at Zachary's Chicago Pizza in California can purchase company stock and thus become owners through a device called

A)a trustees arrangement.
B)participative management.
C)bond sharing.
D)an employee stock ownership plan.
E)profit sharing.

Question 66

A __________ is a person or organization that helps another organization sell its goods and services to customers.

A)financier
B)supplier
C)strategic ally
D)distributor
E)special-interest group

Question 67

Amazon.com maintains an easy-to-use website, has an accessible service phone number, and offers an inexpensive annual shipping fee primarily in an effort to serve which stakeholders?

A)Distributors
B)Strategic allies
C)Government regulators
D)Financial institutions
E)Customers

Question 68

______ are in an organization's external task environment.

A)Employees
B)International forces
C)Owners
D)Lenders
E)Demographic forces

Question 69

A florist should consider the grocery store chain Kroger to be a ________ because consumers are able to purchase the same products at Kroger stores as it sells in its own.

A)customer
B)strategic ally
C)supplier
D)distributor
E)competitor

Question 70

A U.S.paper mill purchases wood from a Canadian logging company to make wood pulp in its production of paper, so in this case the logging company is a

A)customer.
B)strategic ally.
C)supplier.
D)distributor.
E)special-interest group.

Question 71

Which of the following is believed to have contributed to the Pacific Gas and Electric natural gas pipeline explosion in 2010?

A)Inspection crew incentives that encouraged false reporting.
B)Undetected earthquake damage.
C)Illegal field practices by construction crews.
D)Lack of a formal code of ethics.
E)Sabotage by a competitor.

Question 72

People who can claim an organization as their legal property are called

A)owners.
B)the board of directors.
C)financial institutions.
D)customers.
E)employees.

Question 73

Personal and emotional justifications for ________ include its usefulness as a shortcut and it being a way to redress perceived unfairness.

A)a utilitarian approach
B)deceptive advertising
C)cheating
D)whistle-blowing
E)a lack of corporate governance

Question 74

An organization's board of directors is part of its ______ environment.

A)internal
B)uncontrollable
C)external
D)task
E)general

Question 75

As part of his overall stock portfolio, Jason bought a few shares of Facebook.In this context, he would best be described as ______ of Facebook.

A)being part of the task environment
B)an internal stakeholder
C)an economic force
D)being part of the general environment
E)a member of the board of directors

Question 76

Distributors are part of the ______ environment of organizations.

A)alliance
B)task
C)sociopolitical
D)general
E)internal

Question 77

The "holier than thou" effect has been cited as a psychological mechanism that may result in

A)a lack of innovation.
B)increased training costs.
C)decreased diversity.
D)cheating.
E)poor customer service.

Question 78

Shareholders of Chesapeake Energy sued the company, demanding corporate governance reforms.

Question 79

The group important in setting the organization's overall strategic goals and for approving major decisions and salaries of top management is known as

A)employees.
B)stockholders.
C)the board of directors.
D)investors.
E)intrapreneurs.

Question 80

For convenience, you purchase tickets to see the Black Keys through StubHub rather than from the venue itself.In this case, StubHub acts as a

A)strategic ally.
B)supplier.
C)repackager.
D)special-interest group.
E)distributor.