MGMT 300
PRINCIP OF MGMT AND OPERATIONS
California State University-LongBeach
an ethical issue is present when...
actions can harm or benefit others
three categories human behavior falls under
legal standard, social standard, personal standard
Three ways to be unethical to customers
false sales practices, misleading invoices, fake quality data
three ways to be unethical to financiers
falsifying financial reports, breach database controls, use confidential info
three ways to be unethical to suppliers
accept favors, violate contract, pay without accurate invoices
three ways to be unethical to employees
discriminate, create hostile work environment, violate health safety rules
ethical managers act in the benefit of
three ways to be unethical to society
violate environmental standards, expose to safety risks, violate human rights
someone who must make the ethical choice when right or wrong is not clear
most ethical dilemmas involve
conflict between needs of org vs society
based on norms and values
a situation concerning right or wrong when values are in conflict and all options have potentially negative consequences
created by Jeremy Bentham and John Stuart Mill
moral behavior produces the greatest good for the greatest number
acts are moral when they promote individual's best long term interests
people learn to accommodate each other in their own long term interest
says that humans have fundamental rights that cant be taken away by another's decision
an ethical decision is one that best maintains the rights of those involved
moral decisions must be bases on standards of equity fairness and impartiality
three types of justice of concern to managers
distributive, procedural , conpensatory
different treatment of people not based on arbitrary characteristics like gender
rules should be administered fairly and consistently
people should be compensated for the cost of their injuries by the responsible party
justice approach closely correlates to which domain?
managers are expected to define attributes on which different treatment of employees is acceptable
sidesteps debates about what is right or good and bases decisions on prevailing standards of the profession or of society, taking interest of all stakeholders into account.
a decision is ethical if it is acceptable by professional standards, you could explain to your family or on the news without embarassment
this approach combines aspects of the other three approaches
rules should be clearly stated and consistently and impartially enforced
individuals should not be help responsible for matters they can't control
five things that shape manager's ability to make ethical decisions
1. personality 2. behavioral traits 3. personal needs 4. family influence 5. religious background
individual are concerned with external rewards and punishments and obey authority to avoid personal consequence.
preconventional level of moral development
Which stage of moral development is associated with autocratic or coercive leaderships and employees oriented toward dependable accomplishment of tasks?
In this moral development stage, people learn to conform to the expectations of good behavior as defined by corkers, family, friends, and society.
level of development that uses transformative or servant leadership
employees are guided by personal values based on right and wrong and will even disobey rules if they feel it violates right.
post conventional/principled level of moral development
level of development that focuses on the needs of followers
level of development that balances concern for individual with concern for common good
mgmt's obligation to make choices/actions that will contribute to the welfare of society, not just the org.
corporate social responsibility
provides a systematic way to identify expectations, needs, importance and power of various stakeholders, which may change over time
helps managers identify and prioritize key stakeholders related to a specific issue
investors/shareholders, employees, customers and suppliers
includes local governments, natural environment and quality of life for residents
measuring an org's social, financial and environmental performance
economic development that generates wealth and meets the needs of the current generation while preserving environment and society for future generations.
triple bottom line is also known as
the people part of the triple bottom line looks at
how socially responsible in terms of fair labor, diversity, supplier relationships, treatment of employees and contributions to community.
economic responsibility , only goal should be to increase profits while obeying the rules
four primary criteria is total corporate social responsibility
economic, legal, ethical and discretionary responsibilities
defines what society seems as important with respect to appropriate corporate behavior
includes behaviors that are not necessarily codified into law and may not serve the orgs direct economic interests
purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics
discretionary responsibility
which responsibility is the highest criterion because it goes beyond social expectations to contribute to the community's welfare?
means that managers are honesty and trustworthy, fair in their dealings with employees and customers, behave ethically at work and at home
a formal statement of the company's values concerning ethics and social issues
three methods managers can use to help employees stay ethical
code of ethics, ethical structures, protection for whistle blowers
communicates to employees what the company stands for
The two types of codes of ethics are...
principle-based
and policy-based statements
generally outline the procedures to be used in specific ethical situations
designed to affect corporate culture, define values and contain language about company responsibilities, quality of products and treatment of employees
princple based statements
general statements of principle
states the values expected and those that will not be tolerated
an ethics committee is an example of what?
represents the various systems, positions and programs that a company can undertake to encourage and support ethical behavior
provides rulings on questionable ethical issues and disciplines wrongdoers
Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong? a. Social responsibility b. Free domain c. Ethics d. Codified law e. Discretionary responsibility
An organization's decision to produce
a new product is in the a. domain of codified law. b. domain of free choice. c. domain of ethics. d. domain of compensatory justice. e. domain of social responsibility.
The decision by the CSX to downsize and reduce its labor force is in the a. domain of codified law. b. domain of free choice. c. domain of ethics. d. social responsibility. e. none of these.
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? a. The ethical domain b. The domain of free choice c. The legal domain d. The obstructive category e. The protective domain
Which
of the following is a(n) is the individual who must make an ethical choice in an organization? a. The symbolic leader b. An obstructive manager c. The defensive individual d. The moral agent e. An authoritarian manager
Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Sharon must decide whether or not to fire this employee.
In this role, Sharon is acting as a. a moral agent. b. an ethical theorist. c. a symbolic leader. d. an authoritarian leader. e. an obstructive manager.
The assumption that "If it's not illegal, it must be ethical," ignores which of the following? a. Domain of codified law b. Domain of ethics c. Domain of free choice d. Discretionary responsibility e. Domain of symbolism
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 a. a moral agent. b. a social responsibility. c. an ethical dilemma. d. an ethical standard. e. discretionary responsibility.
A normative approach to ethical decision making a. reduces ethical dilemmas to easy-to-understand
formulas. b. uses various approaches to describe guiding values for decisions. c. states that everyone must use their employer's value system at work. d. dictates only one way to choose to resolve dilemmas. e. none of these.
Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number? a. Defensive b. Justice c. Utilitarian d. Individualism e. Moral-rights
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 a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. illegal 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 a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. soft-line managerial approach.
Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job, such as alcohol and
tobacco consumption? a. Justice approach b. Utilitarian approach c. Individualism approach d. Moral-justice approach e. Discretionary responsibility
The ____ ethic was the basis for the state of Oregon's decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures. a. justice b. moral-rights c. obstructive d. individualism e. utilitarian
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 ____. a. utilitarian approach b. individualism approach c. moral-justice approach d. justice approach e. social responsibility
Which of the following is NOT a normative ethics approach? a. Utilitarian approach b.
Individualism approach c. Social responsibility approach d. Moral-rights approach e. All of these are normative approaches as described in the text.
The golden rule "do unto others as they would do unto you" is a. an example of the utilitarian approach to ethical behavior. b. representative of the moral-justice approach to moral decision making. c. an example of the values that guide the individualism approach to ethical behavior. d.
silly and outdated. e. an example of the justice approach to ethical behavior.
Human beings have fundamental rights and liberties that cannot be taken away by another individual's decision. This ethical decision making approach is known as the a. utilitarian approach. b. individualism approach. c. moral-rights approach. d. dualism approach. e. None of these.
The ____ refers to
the ethical concept that moral decisions are those that best maintain the rights of those people affected by them. a. individualism approach b. justice approach c. utilitarian approach d. moral-rights approach e. discretionary responsibility approach
Which of the following is NOT one of the moral rights that could be considered during decision-making? a. The right to free consent b. The right to invade privacy c. The right to free speech
d. The right of freedom of conscience e. The right to life and safety
____ refers to the concept that different treatment of people should not be based on arbitrary characteristics. a. Procedural justice b. Compensatory justice c. Distributive justice d. Organizational justice e. Moral-justice
Individualism is most closely related to a. social responsibility. b. free choice. c.
economic responsibility. d. codified law. e. togetherness.
____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech. a. Moral-rights approach b. Individualism approach c. Utilitarian approach d. Justice approach e. Dual-economic approach
Sexual harassment is unethical because it violates an important part of
which approach to ethical behavior? a. The utilitarian approach b. The individualism approach c. The justice approach d. The moral-rights approach e. The defensive approach
The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the a. moral-rights approach. b. individualism approach. c. utilitarian approach. d. justice approach. e. discretionary responsibility.
The moral rights approach that deals with individuals refraining from carrying out any order that violates their moral or religious norms is the a. right of free consent. b. right to privacy. c. right of freedom of conscience. d. right of free speech. e. right of due process.
Sexual harassment is unethical because it violates the a. right of free consent. b. right to privacy. c. right of
freedom of conscience. d. right of free speech. e. right of due process.
Which of the following is not a concern to managers under the justice approach? a. Compensatory justice b. Distributive justice c. Procedural justice d. Obstructive justice e. All of these
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 a. the procedural justice approach. b. the utilitarian approach. c. the individual approach. d. the defensive approach. e. the free-choice approach.
Which of these refers to procedural justice? a. The concept that different treatment of people should not be based on arbitrary characteristics b. The concept that rules
should be clearly stated and consistently and impartially enforced c. The concept that individuals should be compensated for the cost of their injuries by the party responsible d. The concept that people should be treated differently e. None of these
The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as a. distributive justice. b. injury justice. c. procedural justice. d.
organizational justice. e. compensatory justice.
The thinking underlying the domain of ____ is the closest to the justice approach. a. social responsibility b. free choice c. law d. discretionary responsibility e. ethics
Most of the laws guiding human resource management are based on the a. utilitarian approach. b. moral-rights approach. c. individualism approach. d. justice
approach. e. collectivism approach.
____ is NOT included in the model of personal moral development described in your text. a. Preconventional level b. Conventional level c. Principled level d. Postconventional level e. All of these are included in the model
In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of
an action? a. Preconventional b. Conventional c. Principled d. Discretionary e. None of these
Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development? a. Preconventional b. Conventional c. Discretionary d. Principled e. Traditional
Which of these best illustrates the
preconventional stage of moral development? a. Everybody else is doing it, so it must be okay. b. What would my boss think if I did this? c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these
The conventional stage of moral development is best described by which of the following statements? a. I won't do that because the boss will be upset with
me. b. Everybody else is doing it, so it must be okay. c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these
The ____ leadership style matches with the preconventional level of personal moral development. a. autocratic b. team oriented c. servant leadership d. guiding/encouraging e. transforming
____ matches with the preconventional level of personal moral development. a. Work group collaboration b. Task accomplishment c. Empowered employees d. Full participation e. Transforming
Which of these employee behaviors matches with the conventional level of personal moral development? a. Task accomplishment b. Empowered employees c. Work group collaboration d. Full participation e. Act in own interest
Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values? a. Preconventional b. Conventional c. Principled d. Discretionary e. Social
People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others a. are in the preconventional level of moral
development. b. are in the conventional level of moral development. c. are in the principled level of moral development. d. do not care what people think of them. e. none of these.
____ matches with the postconventional level of personal moral development. a. Team oriented b. Autocratic c. Guiding/encouraging d. Coercive e. Servant leadership
Which of these employee behaviors
matches with the postconventional level of personal moral development? a. Empowered employees, full participation b. Task accomplishment c. Act in own interest d. Work group collaboration e. Autocratic
The great majority of managers operate at the a. preconventional level. b. principled level. c. conventional level. d. postconventional level. e. autocratic level.
Only about
____ percent of American adults reach the level-three stage of moral development. a. two b. four c. eleven d. fifteen e. twenty
Regarding the levels of personal moral development, the majority of managers operate at the ____ level. a. preconventional b. autocratic c. postconventional d. conventional e. transformative
MANAGER'S SHOPTALK in Chapter 5 suggests all of the following
when challenging the boss on ethical issues EXCEPT: a. do your research b. begin the meeting by taking the floor c. pay attention to your word choice and demeanor d. take care how you suggest your alternative solution e. be patient
The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as a. organizational
responsibility. b. social responsibility. c. discretionary responsibility. d. economic responsibility. e. none of these.
Which of these is true about the policy a bank adopts toward its investing of depositor's money? a. It is an expression of its philosophy of social responsibility. b. It is important only to the community. c. It has no ethical implications. d. It would represent its personal state of moral development. e. All of
these.
Which of the following countries is ranked in the top three for their low propensity to pay bribes? a. Russia b. Mexico c. France d. Sweden e. United States
Any group within or outside the organization that has a stake in the organization's performance is called a. a supplier. b. an international customer. c. a stakeholder. d. OPEC. e. a trade association.
Primary stakeholders of an organization include a. employees. b. customers. c. investors and shareholders. d. suppliers. e. all of these.
An organization's performance affects stakeholders, but stakeholders can also have a tremendous effect on the organization's ____. a. performance and success b. profitability and perception c. bottom-line development and Greenfield growth d. competitive
intelligence and top-line performance e. effectiveness and domestic affordability
All of the following are examples of special interest groups EXCEPT a. professional associations. b. trade associations. c. political action committees. d. courts. e. consumerists.
What type of a stakeholder would a nature conservation group be for a paper manufacturing company? a. Supplier b.
Competitor c. Employee d. Special interest group e. None of these
Which of the following concepts proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poorest people? a. The foundation concept b. The bottom of the pyramid concept c. The poverty concept d. The social class concept e. The hierarchy of needs concept
ith a philosophy of ____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals. a. sustainability b. conservation c. ethics d. preservation e. human concerns
____ is economic development that generates wealth and meets the needs of their current generation while focusing on future generations. a. Ethical management b. Activist
strategy c. Sustainability d. Market strategy e. Future management
Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources? a. Preservation b. Conservation c. Environmentalism d. Protectionism e. Sustainability
According to the book's model for judging corporate social
performance, social responsibility is divided into what into four sections? a. Ethical, legal, technical, and rational b. Mandatory, technical, discretionary, and economic c. Legal, mandatory, economic, and ethical d. Discretionary, legal, economic, and ethical e. None of these
____ is considered a decision that enables an individual or company to benefit at society's expense. a. A legal behavior b. An unethical behavior c. An economic
responsibility d. A discretionary responsibility e. A responsible behavior
____ includes behavior that is not always written down and may actually not serve an organization's bottom-line. a. Legal responsibility b. Economic responsibility c. Ethical responsibility d. Discretionary responsibility e. None of these
With respect to appropriate corporate behavior, what society deems
____ as important. a. ethical responsibility b. discretionary responsibility c. economic responsibility d. legal responsibility e. moral responsibility
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? a. Ethical b. Economic c. Legal d. Discretionary e. Stakeholder
____ is the responsibility that goes beyond societal expectations to contribute to the community welfare. a. Ethical responsibility b. Discretionary responsibility c. Economic responsibility d. Legal responsibility e. Technical responsibility
____ 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. a.
Ethical leadership b. Followership c. Corporate espionage d. Command-and-control approach e. Concern for production leadership
A code of ____ is a formal statement of the company's values concerning ethics and social issues. a. integrity b. trust c. citizenship d. ethics e. honesty
Statements that define fundamental values and reference organizational responsibilities, products
and employees are often called ____. a. principle-based b. policy-based c. ethically-based d. codified e. codes of organizational integrity
An example of an ethical structure is a. chief ethics officer. b. a formal statement of company values. c. an equal opportunity policy. d. whistle-blowing. e. corporate speech.
When an official is given the responsibility of overseeing all
aspects of ethics and legal compliance. S/he is referred to as a. a whistle-blower. b. a chief ethics officer. c. vice-president of human resource management. d. a yes-man. e. a political play.
Which of these is the disclosure by an employee of an illegal activity? a. Tattling b. Whistle-blowing c. Organizational communication d. The filing of a disclosure statement e. Snooping
____ is not part of the structures and systems pillar of an ethical organization. a. Corporate culture b. Code of ethics c. Ethics committee d. Whistle-blowing mechanisms e. Rewarding ethical behavior
Many stakeholders are requiring organizations to report the triple bottom line, which refers to ____, ____, and ____. a. economic, social, environmental b. economic, environmental, ethical c. environmental, social, ethical d. social,
economic, ethical e. ethical, environmental, legitimate
The relationship between social responsibility and financial performance has been shown to be ____. a. non-existent b. positive c. negative d. not important e. a reflection of top leadership
____________________ is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.
When values and standards are written into the legal system, it is referred to as ____________________.
The ____________________ is an individual responsible for making an ethical choice.
A(n) ____________________ arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.
The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as ____________________ approach.
The ____________________ approach contends that acts are moral when they promote the individual's best long-term interests.
The ____________________ approach assets that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision.
The ____________________ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.
____________________ justice requires that different treatment of people not be based on arbitrary characteristics.