Exam 5: Managing Responsibly and Ethically

People with an internal locus of control believe that what happens to them is due to luck or chance.

In Canada, a company that meets federal pollution control standards and does not discriminate in its hiring and promotion practices is meeting its ________.

A Canadian business that provides onsite childcare facilities for employees is ________.

Refer to the scenario below to answer the following questions. 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 makes his decision based solely on the desire to maximize profits to satisfy the shareholders, he would be operating under the __________ view of social responsibility.

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

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

Which of the following is one of the proposed methods for managers to reduce unethical behaviour in their organizations?

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?

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

Vancouver-based Cummins Westport has earned a reputation as a ''dark green'' company that produces the world's widest range of low-emissions engines for commercial transport applications. Cummins Westport illustrates the ________ approach toward environmental issues.

Which of the following determinants of ethical issue intensity considers how many people will be harmed?

The values statement of Mosaic Corporation emphasizes the importance of workplace diversity. As a result, managers always select employees with diverse characteristics when organizing work teams. This illustrates which purpose of shared organizational values?

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?

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.

__________ is an approach to managing in which managers establish and uphold what an organization stands for and believes in.

At stage 1 of the progression of an organization's social responsibility, managers focus on human resource concerns.

discuss some of the ways in which managers can encourage ethical behavior and create a comprehensive ethics program.

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

Refer to the scenario below to answer the following questions. 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 __________.

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