managerial

Which unethical practice occurs when consumers are signed up and billed for third-party services without consent?

Cramming

Which represents an argument for the market approach to consumer protection?

More demand for safety encourages more safety.

In terms of product safety, what is the result of government intervention in consumer markets?

The government bears the added cost of incorporating safety.

Which view supports that careless consumers are responsible for their injuries?

Contractual

What is a common problem with the market approach to consumer protection?

Consumers are often not rational about product risk or probabilities.

According to the contractual view, what is created by the firm-customer relationship?

Moral duties

What is the basic moral duty of a business called when it must live up to its product claims?

Express warranty

Which implied claim refers to the expected effective lifespan of a product?

Service life

What is the business responsibility to fully explain the buyer's purchase and terms?

The duty of disclosure

What is a main objection to the contractual view?

The idea that buyers and sellers are equals in the transaction.

Which view is based on consumers and sellers not being equals?

Due-care view

Under the due-care view, what responsibility does a manufacturer have?

Ensure products are safe because consumers rely on manufacturers' expertise.

Why do manufacturers have greater duties under due care?

Manufacturers have greater knowledge and expertise than consumers.

How can a manufacturer practice due care in production?

Ensure compromises do not affect final product safety.

What is a major fault of the due-care view?

It places the cost for unforeseen injuries on the manufacturer.

Which view holds manufacturers responsible even when due care is used?

Social costs view

What is the basis for the social costs view?

Caveat vendor

Which criticism claims the social costs view is unjust?

Manufacturers must pay for unforeseeable and unpreventable injuries.

What criticism of social costs is based on consumer carelessness?

The social cost view is unjust.

What best describes the implied value of commercial advertising?

To sell a product to the consumer.

What are the costs of resources consumed in producing or improving a product?

Production costs

What ethical factor is evaluated when looking at an advertisement's ability to inform or persuade?

Effects on belief

What describes a person's thoughts, beliefs, values, and feelings?

Psychological privacy

What describes the enabling function of privacy?

Privacy helps individuals sustain distinct social roles.

Why is physical privacy as important as psychological privacy?

Inner lives are revealed by physical activities and expressions.

Explain the idea that when consumers demand more safety, increased product safety is encouraged.

Businesses improve safety in response to consumer demand without government interference.

Discuss the idea of limiting government interference in consumer product safety.

Limiting government interference allows the market to adjust based on consumer demands.

According to the contractual view, what are the four main moral duties of a business?

Duty to comply with claims, avoid misrepresentation, avoid coercion, and disclose information.

Discuss the relationship between the principle of non-harm and the due-care view.

Businesses must proactively prevent harm, aligning with due-care responsibilities.

What are the three areas of due-care responsibilities imposed on a manufacturer?

Design, production, and marketing of the product.

How does strict liability lead to a more efficient use of society's resources?

It motivates manufacturers to invest in safety, reducing accidents and societal costs.

What are the three elements of deceptive effects in advertising?

Misleading claims, withholding information, and exaggerating product benefits.

Identify six areas where privacy rights should be respected by an organization.

Information collection, consent, relevance, security, disclosure, and monitoring.

Which arguments support diversity in the workforce?

Racial discrimination still exists; sexism and bigotry deny opportunities.

What must be involved to have discrimination in employment?

The decision must be based on prejudice.

Decisions based on _ are based on ideas about race, gender, or stereotypes.

Prejudice

Which type of discrimination results from unconscious factors?

Unintentional discrimination

Which type of discrimination has widespread effects due to policies and processes?

Institutional discrimination

Which form of discrimination results from a few people acting on their own?

Individual discrimination

Which action sought to eliminate discrimination by employers?

Executive Order 11246

What indicates that discrimination exists due to a disproportionate number of a protected group in less desirable positions?

Adverse impact

Families headed by single women are now _ as likely to be poor compared to families headed by single men.

Four times

What describes the relationship between pay and the number of women in an occupation?

The more women in an occupation, the lower the pay for that occupation.

What best describes barriers encountered by women advancing in their careers?

Glass ceiling

Of all new jobs created during the past two decades, how many require education beyond high school?

One-half

What is cited as one reason minorities make less money than whites?

Minorities are steered into low-paying professions such as education.

Which argument supports that productivity is optimized when jobs are awarded based on competency?

Utilitarian argument against discrimination

According to the utilitarian argument against discrimination, jobs should be assigned based on _ as long as it advances public welfare.

Qualifications

Which argument supports that discrimination denies equal opportunity to minorities and women?

Rights-based argument

Which describes the principle that individuals equal in relevant respects should be treated equally even if dissimilar in other respects?

Principles of equality

What type of sexual harassment occurs when superiors engage in unwelcome conduct creating an offensive environment?

Hostile environment harassment

Which law protects individuals with physical or mental limitations that affect job performance?

Americans with Disabilities Act of 1990

What is a criticism of current affirmative action plans?

They correct past wrongs but do not prevent future discrimination.

What provides a way to measure the success of affirmative action programs?

Comparison of women and minorities in each job classification

What outcome resulted from Supreme Court rulings on affirmative action?

Affirmative action programs must be temporary and narrowly tailored.

Which concept supports paying those who have been intentionally and unjustly wronged?

Compensatory justice

What is a goal of affirmative action programs from an equal justice perspective?

Neutralize unconscious bias in employment decisions.

What criticism claims if only race and sex are considered, unqualified workers may be hired?

Productivity will decline if hiring is based only on race and sex.

What were four reasons companies supported the University of Michigan's diversity goals?

To enhance performance, create diverse ideas, reflect customer base, and build global competence.

What are the four forms of discrimination that might be present in an organization?

Intentional, unintentional, individual, and institutional discrimination.

What is the role of the Equal Employment Opportunity Commission?

To enforce federal laws prohibiting job discrimination.

What conclusion can be drawn about employment discrimination based on the text?

Discrimination persists and requires ongoing vigilance.

How does a lack of education promote discrimination and lack of opportunity for minorities?

It limits access to higher-paying and influential jobs.

What are the three conditions that would constitute sexual harassment?

Unwelcome behavior, related to sex, creating a hostile environment.

How does affirmative action create a view of reverse discrimination?

Some feel it gives unfair advantages to minority groups.

How does the promotion of affirmative action programs act as a method of increasing utility?

By maximizing opportunities and societal welfare.

Which is considered the most fundamental element of a rational organization?

Formal hierarchies of authority

Who directly produces the goods and services of an organization?

Operating layer employees

What indicates an employee's moral responsibility to obey and an employer's duty to provide agreed wages and conditions?

Contractual agreements

What is a conflict of interest based on emotional ties and relationships?

Subjective conflict of interest

What exists when others perceive a conflict of interest even if none exists?

Apparent conflict of interest

What is an example of commercial extortion?

An employee demands payment to continue doing business together.

What is proprietary information that could hurt a company's ability to compete if leaked?

Trade secrets

What organization model focuses on competing power coalitions rather than formal lines?

Political model

What are the three basic differences between corporate managers' and government officials' power?

Economic leverage, mobility, and decentralization

What is the right of people to control information they disclose to others called?

Right to privacy

Which privacy element limits employers to only relevant personal information?

Relevance

What protects employees who report wrongdoing within an organization?

Whistleblowing

What is achieved when group decisions are made by majority after open discussion?

Organizational democracy

What political tactic helps a decision-maker appear honest and thoughtful?

Image building

Which political tactic contradicts utilitarian principles because it involves pursuing personal goals at the expense of organizational goals?

Pursuit of personal goals at the expense of the organization

Which political tactic creates a dependency as a source of power?

Getting control over scarce resources desired by others

What is the value of work as a tool to develop potential called?

Intrinsic value of work

Which view supports that managers are authoritarian and controlling?

Theory X

What right helps balance power between corporations and employees?

Worker's right to organize into a union

What concept is based on close interpersonal relationships with external parties?

Connected selves

What is an aspect of the caring model of the organization?

Caring aims to enhance growth by helping others develop full capacities.

What argument for the caring organization includes caring about customers and suppliers?

Creation of customer value

How is caring described in the caring model of the organization?

Caring is personal in nature.

Why is insider trading considered unethical?

It gives the insider an unfair advantage over others in the market.

What should a global company's basis for setting wages in developing countries be?

Wages should be based on the local labor market.

Describe the functions of a rational model of an organization.

Clear hierarchy, division of labor, formal rules, and merit-based roles.

How are conflicts of interest created in an organization?

Personal interests interfere with professional responsibilities.

Describe the hierarchy of power in a political model of an organization.

Power is distributed among competing coalitions rather than formal authority.

Why are privacy protection rights important for workers?

To protect personal information from misuse and ensure dignity.

How can political tactics create injustice among employees with no political skills?

Those without political skills may face discrimination and unfair treatment.

What political tactics create dependency in an organization?

Controlling access to valuable information or resources.

What moral problems arise from caring too much in an organization?

Overattachment can impair judgment and objectivity.

How does a caring organization create customer value?

By fostering trust, loyalty, and personalized service.