Question 1

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

Accepted Answer

Companies, and even nonprofit organizations, frequently link up with other organizations (even competing ones) to realize strategic advantages. The term strategic allies describes the relationship of two organizations that join forces to achieve advantages neither can perform as well alone.

Question 2

"Good" boards have balanced gender representation.

Accepted Answer

Some experts further speculate that balanced gender representation on boards was an important characteristic of a "good" board.

Question 3

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

Accepted Answer

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

Question 4

Ashish comes to work looking exhausted almost every day. He is a new father and the baby is not sleeping well. James, his manager, asks Ashish to change the number of documents that the team has processed for the month so that the report shows the quota was met. Ashish agrees without putting up much of fight. James takes advantage of the fact that Ashish is sleep-deprived and will be more likely to engage in unethical behavior.

Accepted Answer

Research shows that people are more likely to succumb to temptation to engage in unethical behavior when they are sleep-deprived.

Question 5

Penelope, a registered nurse, has decided to start a home healthcare service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Penelope is focusing her marketing efforts on the older adult population; in these efforts, she is involved with the ________ environment.

Accepted Answer

Age is one of the demographic forces, and demographic forces are part of an organization's general environment.

Question 6

The task environment of Eye of the Needle Costume Designers consists of just two groups, customers and stockholders, who give the employees and management of Eye of the Needle the daily tasks that the company's employees will handle.

Accepted Answer

The task environment consists of 10 groups that present employees with daily tasks to handle. The 10 groups are customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, and special-interest groups.

Question 7

Soul Soup is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of Soul Soup is called the

Accepted Answer

In nonprofit organizations, such as universities or hospitals, the board may be called the board of trustees or the board of regents.

Question 8

When the Young Minds Child Care 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

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

Question 9

Roberto was recently promoted, and his salary increase includes retirement investment options, so he has decided to take part in an ESOP. This means that Roberto

Accepted Answer

If you work for a company that is more than half owned by its employees, you are one of the joint owners - you're part of an Employee Stock Ownership Plan (ESOP).

Question 10

An organization's internal stakeholders consist of

Accepted Answer

A company's internal stakeholders consist of employees, owners, and the board of directors.

Question 11

Despite recent pressure from stockholders to increase profits, Global Oil., 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. Global Oil. provides an example of a company acting in a socially responsible way.

Accepted Answer

According to University of Georgia business scholar Archie B. Carroll, corporate social responsibility rests at the top of a pyramid of a corporation's obligations, right up there with economic, legal, and ethical obligations. Carroll suggests the responsibilities of an organization in the global economy should take the following priorities, with profit being the most fundamental (base of the pyramid) and corporate citizenship at the top: (1) Be a good global corporate citizen, as defined by the host country's expectations; (2) be ethical in practices, taking host-country and global standards into consideration; (3) obey the law of host countries as well as international law; and (4) make a profit consistent with expectations for international business.

Question 12

Shane, a sales manager, remarked that typically her employees are resentful when the CEO announces bonuses because the employees know that the bonuses will not be given out based on

Accepted Answer

Fairness can often be a hot issue. For instance, many employees are loudly resentful when a corporation's CEO is paid a salary and bonuses worth hundreds of times more than what they receive-even when the company performs poorly-and when fired is then given a "golden parachute," or extravagant package of separation pay and benefits.

Question 13

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." His friend talks him out of it. Kohlberg would say that his friend is in which stage or moral development?

Accepted Answer

Level 1, preconventional-follows rules. People who have achieved this level tend to follow rules and to obey authority to avoid unpleasant consequences. Managers of the Level 1 sort tend to be autocratic or coercive, expecting employees to be obedient for obedience's sake.

Question 14

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

Internal stakeholders include employees, owners, and the board of directors, if any. Some of the directors on the board (inside directors) may be top executives of the firm.

Question 15

Julian, the owner of a t-shirt shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ________ performance.

Accepted Answer

The triple bottom line-representing people, planet, and profit (the 3 Ps)-measures an organization's social, environmental, and financial performance.

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

Over half of millennials believe that companies operate to meet society's needs first and their own agenda second.

Accepted Answer

"More than any other previous generation," reports Forbes, "millennials are concerned about business ethics, motives and methods. According to a Deloitte study of millennials, 58 percent of respondents indicated they believed corporations, in general, are moving in a more ethical direction, yet 64 percent still believed companies operate according to their own agenda first and society's needs second.

Question 18

Arielle, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to serve on its board of directors, she gladly accepted the invitation. As a member of the board, Arielle will be involved with the organization's

Accepted Answer

Members of the board of directors are very important in setting the organization's overall strategic goals and in approving the major decisions and salaries of top management.

Question 19

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 a systematic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals.

Question 20

The marketing director for GForce Games, a video game company, has informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products because the distributors are part of the ________ environment for GForce Games. He believes that a stronger relationship with distributors will lead to more market share, and higher profits, for both GForce Games and its distributors.

Accepted Answer

Distributors are part of an organization's task environment, and therefore one of its external stakeholders.

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

"Good" boards have balanced gender representation.

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

The task environment of Eye of the Needle Costume Designers consists of just two groups, customers and stockholders, who give the employees and management of Eye of the Needle the daily tasks that the company's employees will handle.

Soul Soup is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of Soul Soup is called the

When the Young Minds Child Care 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.

Roberto was recently promoted, and his salary increase includes retirement investment options, so he has decided to take part in an ESOP. This means that Roberto

An organization's internal stakeholders consist of

Shane, a sales manager, remarked that typically her employees are resentful when the CEO announces bonuses because the employees know that the bonuses will not be given out based on

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.

Julian, the owner of a t-shirt shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ________ performance.

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.

Over half of millennials believe that companies operate to meet society's needs first and their own agenda second.

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