Exam #3 Chapters 7-9

Question 1

corporate culture

Answer 1

the shared beliefs top managers in a company have about how they should manage themselves and other employees and how they should conduct their business

Question 2

Sarbanes Oxley 404

Answer 2

compliance section, management assesses the effectiveness of the organizations internal controls and commission audits of these controls by an external auditor in conjunction with the audit of it’d financial statements, requires firms to adopt a set of values that forms a portion of the companies culture, mandates an evaluation of corporate culture to provide insight into the character of an organization, its ethics and transparency, the intent is to expose mismanagement, fraud, theft, etc

Question 3

Two basic dimensions in an organizations culture

Answer 3

concern for people, concern for performance

Question 4

concern for people

Answer 4

the organizations efforts to care for its employees well being

Question 5

concerns for performance

Answer 5

the organizations efforts to focus on output and employee productivity

Question 6

apathetic culture

Answer 6

minimal concern for people or performance, individuals focus on self-interest

Question 7

caring culture

Answer 7

high concern for people but minimal concern for performance issues, it is difficult to find nationally recognizable companies that maintain little or no concern for performance

Question 8

exacting culture

Answer 8

little concern for people but a high concern for performance, focuses on the interests of the organization

Question 9

integrative culture

Answer 9

combines a high concern for people and performance

Question 10

cultural audit

Answer 10

an assessment of an organizations values, conducted by outside consultants

Question 11

compliance based

Answer 11

the accounting professional model, organized around risk, rules create a compliance culture, use a legalistic approach to ethics, codes of conduct are established, company revolves around risk management, good in short terms because it helps management, stakeholders, and legal agencies ensure laws, rules, and intent of compliance is fulfilled

Question 12

values based

Answer 12

relies on an explicit mission statement that defines the core values of the firm and how customers and employees should be treated, BOD should add to value statements by formulating specific value statements for ts strategic business units, certain areas may have rules associated with stated values, enabling employees to understand the relationship between the two, focus is on trust & transparency

Question 13

differential association

Answer 13

the idea that people learn ethical or unethical behavior while interacting with others who are part of their role sets or belong to intimate personal groups

Question 14

CCFA

Answer 14

protects employees of publicly traded firms from retaliation if they report violations of any rule or regulation to the SEC

Question 15

DODD Frank Act

Answer 15

additional incentives for whistleblowers who aid in saving > 1million = 10-30% of that amount

Question 16

Sarbanes Oxley and the Federal Sentencing Guidelines for Organizations

Answer 16

if an employee provides info to the govt about a companies wrong doing under the federal false claims act the whistle blower is known as a qui tam relator and can receive between 15 to 25% of funds, illegal to discharge, demote, suspend, threaten, harass any whistleblower

Question 17

reward power

Answer 17

a persons ability to influence the behavior of others by offering them something desirable

Question 18

coercive power

Answer 18

the opposite of reward power, penalizes actions or behaviors and relies on fear to change behavior, more effective in short run than long run

Question 19

legitimate power

Answer 19

stems from the belief that a certain person has the right to exert influence and certain others have an obligation to accept it

Question 20

expert power

Answer 20

derived from a persons knowledge, stems from a superiors credibility

Question 21

referent power

Answer 21

exists when one person perceives that his/her goals or objectives are similar to another with an attempt to influence the first to take actions that allows both to achieve their objectives

Question 22

motivation

Answer 22

a force within that focuses behavior toward achieving a goal

Question 23

job performance

Answer 23

a function of ability and motivation

Question 24

relatedness needs

Answer 24

satisfied by social and interpersonal relationships

Question 25

growth needs

Answer 25

satisfied by creative or productive activities

Question 26

centralized organization

Answer 26

low flex, low adapt, low problem recognition, high implementation, poor dealing with changes, many rules, many employees, formal control

Question 27

decentralized organization

Answer 27

high flex, high adapt, high problem recognition, low implementation, good dealing with changes, few rules, few employees, informal control

Question 28

formal group

Answer 28

an assembly of individuals with an organized structure that is explicitly accepted by the group

Question 29

informal group

Answer 29

two or more individuals with a common interest but without an explicit organizational structure

Question 30

the grapevine

Answer 30

information passed along that may relate to the job, organization, an ethical issue, or it may simply be gossip or rumors

Question 31

group norms

Answer 31

standards of behavior groups expect of their members

Question 32

compliance orientation

Answer 32

creates order by requiring employees to identify with and commit to specific required conduct

Question 33

values orientation

Answer 33

strives to develop shared values

Question 34

codes of conduct

Answer 34

formal statements that describe what an organization expects of its employees

Question 35

statement of values

Answer 35

serves the general public and also addresses distinct groups such as stakeholders

Question 36

six values in code of ethics

Answer 36

trustworthiness, respect, responsibility, fairness, caring, citizenship

Question 37

ethics officers

Answer 37

responsible for managing their organizations ethics and legal compliance programs

Question 38

formal controls

Answer 38

include input controls such as proper selection of employees, effective ethics training, and strong structural systems

Question 39

process controls

Answer 39

managements commitment to the ethics program and the methods or system for ethics evaluation

Question 40

output controls

Answer 40

comparing standards with actual behavior

Question 41

social audit

Answer 41

assessing and reporting on a businesses performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders

Question 42

the balanced scorecard

Answer 42

uses elements that contribute to organizational performance and success

Question 43

triple bottom line

Answer 43

takes into account social, environmental, and financial impacts of decisions made within an organization

Question 44

global reporting initiative

Answer 44

mainstreaming of disclosure on environmental, social, and governance performance

Question 45

six sigma

Answer 45

to reduce defects in products and strive for continual improvement