Exam 6: Managing Responsibly and Ethically

Independent social audits performed randomly act as a deterrent to unethical behaviour.

Approaches to Social Responsibility (Scenario) 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 ________.

Which of the following determinants of ethical issue intensity asks how soon the harm will be felt?

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. -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 ________.

Which of the following examples reflects a socially responsible action by an organization?

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

An organization is said to adopt the market approach to going green when it responds to the environmental demands made by its stakeholders.

The recognition of the close link between an organization's decisions and activities and its impact on the natural environment is referred to as ________.

The more intense an ethical issue is,the less we should expect employees to behave ethically.

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?

Moral Development (Scenario) 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 highest stage of moral development,individuals ________.

The ________ approach to environmental issues is when organizations respond to environmental preferences of their customers.

Whistle-blowers raise ethical concerns to others inside and outside the organization.

In the socioeconomic view of social responsibility,management's responsibility includes protecting and improving society's welfare.

Which of the following statements is TRUE concerning organizations whose structures and cultures permit unethical behaviour?

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. -Moe Gaines's support in favour of using the new material,despite the fact that it has not yet been certified,may be an indication that he ________.

Which of the following statements about social responsiveness is TRUE?

Though the outcomes are not perfectly measured,the majority of research studies show a positive relationship between corporate social involvement and economic performance.

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

Moral Development (Scenario) 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 ________.