Exam 6: Managing Responsibly and Ethically

When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities,it is said to be socially responsive.

An Ethical Dilemma (Scenario) 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. -Angel's opposition to the use of the new product is an indication that she probably ________.

Two Opposing Views of Social Responsibility (Scenario) The board of directors of Acme Generating Corporation is meeting to consider the construction of a new electricity generation facility somewhere along the Muspetan River basin. The city of Muspetan has a high Air Pollution Index and the increasing amount of garbage is adding to the city's woes. Director Appleton would like the facility to be a coal-burning plant located in a remote area because the cost involved is moderate. Director Witworth wants a nuclear plant because this will not add to the city's already serious pollution problem, while taking care of its electricity requirements. Director Jossleman wants a plant that uses combustible fuels collected from the city's garbage. He wants the plant to be located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines. -Director Jossleman is being mostly ________.

Social obligation is the obligation of a business to meet its ________.

Social Responsibility and Issue Intensity (Scenario) 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? -If Rick decides to stop sales and investigate the flooring product because he feels a responsibility toward society as well as shareholders,he would be operating under the ________ view of social responsibility.

Which of the following determinants of ethical issue intensity considers how much agreement there is that an action is unethical?

Organizational culture that is high in conflict tolerance is most likely to encourage high ethical standards.

According to the classical view of social responsibility,management's only social responsibility is to maximize profits.

Employees who work for international businesses know clearly what acceptable ethical behaviour while working in foreign locations is.

At the principled level of moral development,an individual values the rights of others and upholds absolute values and rights regardless of the majority's opinion.

Ethical behaviour is ingrained in individuals and cannot be taught.

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?

Both social responsiveness and social responsibility go beyond merely meeting a firm's basic economic and legal requirements.

John Doe is employed with the IT department in Abel & Associates,which provides financial consultancy services to several wealthy investors.He is approached by an investor who offers attractive incentives for stealing some sensitive information regarding the investment patterns of one of the clients of the company.Which of the following statements best reflects John's thoughts if he is at the preconventional level of moral development?

BTX Corporation provides daycare facilities for its employees and only uses recycled paper in its packaging.BTX is following a social ________ approach.

Because shared values influence the way work is done,employees can become more enthusiastic about working together to support the values they believe in.This illustrates which purpose of shared organizational values?

A manager who believes that "I worked hard and met the productivity goals despite poor economic conditions" is displaying what personality attribute?

In a short essay,explain the four approaches that organizations can take with respect to environmental issues and going green.

A firm that follows the social obligation approach engages in social actions in response to some popular social need.

________ is defined as a business firm's obligation,beyond what is required by its legal and economic obligations,to do the right things and act in ways that are good for society.