Exam 2: Stakeholders, Managers, and Ethics

You are the owner of a large package delivery firm. You've noticed a drop in efficiency of several of your drivers. You suspect that these drivers are taking long lunch hours, and running errands on company time. You install computers into the driver's trucks to monitor what they are doing with their time, and indeed you were correct. What concept does this illustrate? Provide details.

The primary goal of capitalistic organizations is to:

At Sears, management created a reward system that had the effect of making employees act unethically and overcharge customers. This was caused by:

A manager decides to locate a manufacturing plant in a location that maximizes the overall benefits to the stakeholders. Which model of ethics is he/she using?

A manager chooses to tell affected employees about an impending layoff, despite the damage this causes to the stock price of the organization. She did this because it was "the right thing to do." Which model of ethics is she using?

The CEO selects the organization's top-management team.

You are the owner of a factory that makes candy bars. One morning, you notice an employee intentionally inserting an insect into a piece of candy. You can't stop the line of production in time, and therefore can't find the piece of candy. It is mixed in with thousands of other pieces. After analyzing the situation, you determine that the negative publicity associated with recalling the candy was not worth the very small risk of a consumer getting ill. You fire the employee, but do not recall the candy. Does your solution align with the utilitarian, moral rights, or justice model of ethics? Describe why.

What does Gillette do when it receives a protest letter regarding animal testing?

Which of the following would be considered to have a staff role?

The unethical practices of Westland/Hallmark Meat Co. resulted in numerous deaths due to the consumption of contaminated beef.

Which of the following managers has a line role?

Divisional managers will most likely report to which member of the top-management team?

To create an ethical organization:

Which of the following is not one of the benefits of the "Reputation Effect"?

A manager following the utilitarian model when faced with a moral decision would most likely examine the fundamental rights and privileges of the people affected by the decision.

Ethical rules often develop to slow the pursuit of self-interest.

An organization's mission statement can be used to guide ethical behavior.

Gillette has been touted as a highly ethical organization due to its refusal to test cosmetics on animals.

________ are people who have an interest or claim in an organization, in what it does, and in how well it performs.

In Agency Theory, what is "Moral Hazard"? Under what conditions does it exist?