MGMT 300 Chapter 4

Ethics is the code of moral principles and values that governs the behaviors of individuals or groups.
Free choice lies between the domains of codified law and ethics.
If something is ethical, it must not be illegal.
The moral agent is an individual who must make an ethical choice in an organization.
The CSR approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.
Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.
The ethical concept that acts are moral when they promote the individual’s best long term interests, which ultimately leads to the greater good, is known as the moral rights approach.
Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.
Individuals at the preconventional level are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.
The majority of managers operate at the preconventional level of personal moral development.
Approximately 20 percent of American adults, according to your text, never reach the postconventional level of moral development.
Social responsibility is management’s obligation to make choices and take actions that will contribute
Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.
Important stakeholders in corporations include the government and the community.
Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.
Economic responsibility, carried to the extreme, is called the profit-maximizing view.
Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.
Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests.
Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.
A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.
In one study, organizational psychologist Adam Grant found that the single biggest predictor of a team’s effectiveness was incentives such as bonuses and vacation time.
One of the most pressing ethical dilemmas facing managers today is that of competitive intelligence, which is increasingly gained through social media.
An organization’s decision to hire for an open position is in the:
domain of free choice
A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text?
The ethical domain
A recent poll found that over _____ percent of people surveyed say corporate America’s moral compass is pointing in the wrong direction
A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered:
an ethical dilemma
Robbie’s Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the:
utilitarian approach
Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the:
utilitarian approach
When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of the:
individualism approach
Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on:
the procedural justice approach
The thinking underlying the domain of ____ is the closest to the justice approach.
The _____ leadership style matches with the preconventional level of personal moral development.
Which of these employee behaviors matches with the conventional level of personal moral development?
Work group collaboration
When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked his life to save men who were being picked off by sharks. The Navy pilot was operating from the _____ level of moral development.
Which of these best illustrates the preconventional stage of moral development?
What am I going to get from making this decision?
Any group within or outside the organization that has an interest in the organization’s performance is called:
a stakeholder
All of the following are examples of special interest groups, EXCEPT:
Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources?
The profit-maximizing view of economic responsibility is advocated by:
Milton Friedman
Which of the following responsibilities is purely voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics?
_____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.
Ethical leadership
Statements that define fundamental values and reference organizational responsibilities, products and employees are often called:
The relationship between social responsibility and financial performance has been shown to be:
The base of the corporate social responsibility pyramid is:
economic responsibility
When values and standards are written into the legal system, it is referred to as _____.
codified law
The _____ is an individual responsible for making an ethical choice.
moral agent
The _____ approach asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.
Correct Answer(s):
a. moral-rights
b. moral rights
_____ justice requires that rules should be clearly stated and consistently and impartially enforced.
The _____ approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.
At the _____ level of personal moral development, individuals are most concerned with external rewards and punishments.
Most managers operate at the _____ level.
Correct Answer(s):
a. conventional
b. second
A(n) _____ is any group within or outside the organization that has an interest or investment in the organization’s performance.
The _____ approach to economic responsibility means that economic gain is the only social responsibility and can lead companies into trouble.
A(n) _____ is a formal statement of the company’s values concerning ethics and social issues; it communicates to employees what the company stands for.
code of ethics
_____ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws.
Policy-based statements
Employee disclosure of illegal organization activities is known as _____.
Organizational _____ means that an organization pursues a positive human impact, moral goodness, and unconditional society betterment for its own sake.
A general statement of principle is often called a _____.
corporate credo