Exam 6: Managing Responsibly and Ethically

In the preconventional stage of moral development,individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general.

At the ________ level of moral development,a person's choice between right or wrong is based on personal consequences from outside sources,such as physical punishment,reward,or exchange of favours.

A student who never considers breaking into an instructor's office to steal an accounting exam didn't think twice about asking a friend who took the same course from the same instructor last semester what questions were on the exam.What does this example illustrate?

In determining the intensity of an ethical issue,greatness of harm refers to the number of people who will be harmed by a particular action.

Ethics refers to the rules and principles that define right and wrong behaviour.

Max Proffit, director of research and development for NexGen Products Company, has learned that a new material has been developed in his department that will help reduce production costs without any accompanying loss in quality. He has discussed the potential savings with his two assistants, Angel Lee and Moe Gaines, as well as the vice-president of product development, Rush Onward. Angel has stated her opposition to the use of the new material because its durability and fire-resistant properties have not been fully tested nor certified by the company's third-party testing laboratory. Moe argues that the initial tests that their R&D department has run indicated minimal problems with both durability and fire resistance. Rush stated that he has been in several meetings lately where the need to increase earnings-per-share has been repeatedly emphasized by the company president. Rush has told Max that a decision has to be made within the week about the use of the new material in NexGen's products. -If Max believes that the new material should be certified by the lab before it is used in the company's products,and therefore he resists the impulse to approve its use prematurely to help increase the company's earnings-per-share,he probably ________.

An employee who reports ethical concerns to others inside or outside the organization is often called a ________.

Marco was confused. His management class was focusing on social responsibility, and his assignment was to find examples of businesses that used different approaches toward social responsibility. He had three good examples but was not sure which case was an example of which concept. The first business was a fishing company that had been subject to protests from environmentalists. In their efforts to balance the interests of shareholders and other stakeholders, the company decided to change their harvesting methods so that dolphins would no longer be caught with tuna. The second company was a fast-food restaurant whose primary objective was to maximize profits for its owners. Restaurant employees were paid minimum wages and benefits in accordance with local labour laws. The third business was a bank that spent millions of dollars a year on charitable causes. The bank's managers felt they had an ethical responsibility to do the right things and act in ways that are good for society. -approach taken by managers at the fast-food restaurant is best described as social ________.

A leading proponent of the classical view argues that any time managers decide to spend their organization's resources for "social good" they are ________.

The values statement of Reliable Airlines emphasizes the importance of customer safety.After a difficult year of losses,the company president asked managers to reduce costs in marketing,payroll,and all other areas except maintenance,stating,"We can tighten our belts in every other area,but we will never scrimp on safety.In this business,if you are not safe,you don't have an airline." This illustrates which purpose of shared organizational values?

A majority of studies have found a(n)________ relationship between social involvement and economic performance.

Employees with a(n)________ locus of control are likely to be more consistent in their moral judgments and actions than those with a(n)________ locus of control.

Rick is president of a company that manufactures secondary wood products for the construction industry. Recently, there have been many reports of a plywood sub-flooring product that has been failing in a number of commercial locations, resulting in several complaints about ruined floor coverings and, in one instance, the partial collapse of a floor, which injured three people. The manager of research and development has asked marketing to stop selling the product while he runs some tests to determine the source of the problem. However, third-quarter earnings reports are due out in two weeks and public knowledge of problems concerning this lucrative product are likely to delay the financing of the company's expansion plans and cause stock prices to tumble. Rick has a dilemma. Should he continue to sell the product and delay research efforts in order to maintain the expansion plans, but risk causing more damage and injury? Or should he immediately stop sales of the product and run the necessary tests, thereby placing the expansion plans at risk and causing potential losses for the company's shareholders? -The other managers also agreed that the flooring product was likely to fail again,resulting in further injury.This relates to which determinant of issue intensity?

Which of the following is associated with the classical view of social responsibility?

The socioeconomic view is that management's social responsibility goes beyond making profits to include ________.

Jerri has been daydreaming about stealing some money from the petty cash file at her employer's office in order to pay some overdue bills. But in reviewing the chapter on ethics from her management course, she learns that there are three levels of moral development, each composed of two stages. She becomes ashamed about her idle thoughts of stealing and reads on to try to learn more about the levels and stages of moral development. -Jerri learns that at the lowest of stage of moral development,individuals ________.

The activist approach to going green is when an organization looks for ways to respect and preserve the earth and its natural resources.

When a firm advertises that it only uses recycled paper products it is ________.

Most adults are at the second stage of moral development: following rules only when doing so is in their best interest.

An organization's ________ can help guide managers' decisions and actions.