Chapter 3

Question 1

Clawbacks

Answer 1

rescinding the tax breaks when firms don’t deliver promised jobs

Question 2

Code of ethics

Answer 2

consists of a formal written set of ethical standards guiding an organization’s actions

Question 3

Competitors

Answer 3

people or organizations that compete for customers or resources

Question 4

Corporate governance

Answer 4

the system of governing a company so that the interests of corporate owners and other stakeholders are protected

Question 5

Corporate social responsibility (CSR)

Answer 5

the notion that corporations are expected to go above and beyond following the law and making a profit

Question 6

Customers

Answer 6

are those who pay to use an organization’s goods or services

Question 7

Demographic forces

Answer 7

are influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

Question 8

Distributor

Answer 8

a person or an organization that helps another organization sell its goods and services to customers

Question 9

economic forces

Answer 9

consist of the general economic conditions and trends-unemployment, inflation, interest rates, economic growth-that may affect an organization’s performance

Question 10

ethical behavior

Answer 10

behavior that is accepted as “right” as opposed to “wrong” according to those standards

Question 11

ethical climate

Answer 11

represents employees’ perceptions about the extent to which work environments support ethical behavior

Question 12

ethical dilemma

Answer 12

a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal

Question 13

ethics

Answer 13

are the standards of right and wrong that influence behavior

Question 14

external stakeholders

Answer 14

people or groups in the organization’s external environment that are affected by it

Question 15

general environment

Answer 15

includes six forces: economic, technological, sociocultural, demographic, political-legal, and international

Question 16

government regulators

Answer 16

regulatory agencies that establish ground rules under which organizations may operate

Question 17

individual approach

Answer 17

is guided by what will result in the individual’s best long-term interests, which ultimately are in everyone’s self-interest

Question 18

insider trading

Answer 18

the illegal trading of a company’s stock by people using confidential company information

Question 19

internal stakeholders

Answer 19

consist of employees, owners, and the board of directors, if any

Question 20

international forces

Answer 20

changes in the economic, political, legal and technological global system that may affect an organization

Question 21

justice approach

Answer 21

is guided by respect for impartial standards of fairness and equity

Question 22

macroenvironment

Answer 22

same as general environment

Question 23

moral-rights approach

Answer 23

is guided by respect for the fundamental rights of human beings

Question 24

owners

Answer 24

consist of all those who can claim it as their legal property

Question 25

philanthropy

Answer 25

making charitable donations to benefit humankind

Question 26

political-legal forces

Answer 26

are changes in the way politics shape laws and laws shape the opportunities for and threats to an organization (monopolies)

Question 27

ponzi scheme

Answer 27

using cash from newer investors to pay off older ones

Question 28

sarbanes-oxley act of 2002

Answer 28

SOX, established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance

Question 29

social responsibility

Answer 29

is a manager’s duty to take actions that will benefit the interests of society as well as of the organization

Question 30

sociocultural forces

Answer 30

are influences and trends originating in a country’s, a society’s, or a culture’s human relationships and values that may affect and organization (obesity)

Question 31

special-interest groups

Answer 31

are groups whose members try to influence specific issues (ie NRA)

Question 32

stakeholders

Answer 32

the people whose interests are affected by an organization’s activities

Question 33

strategic allies

Answer 33

describes the relationship of two organizations that join forces to achieve advantages neither can perform as well alone

Question 34

supplier

Answer 34

a person or organization that provides supplies- that is, raw materials, services, equipment, labor, or energy to other organizations

Question 35

task environment

Answer 35

consists of 11 groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

Question 36

technological forces

Answer 36

are new developments in methods for transforming resources into goods or services

Question 37

utilitarian approach

Answer 37

is guided by what will result in the greatest good for the greatest number of people

Question 38

value system

Answer 38

the pattern of values within an organization. Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior

Question 39

values

Answer 39

the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior

Question 40

whistle-blower

Answer 40

is an employee who reports organizational misconduct to the public

Question 41

Kohlberg theories (ethics)

Answer 41

Level 1, preconventional-follows rules
Level 2, conventional-follows expectations of others
Level 3, postconventional-guided by internal values