MGT 491 - Chapter 3

MGT 491 - JSU - Chapter 3

Courage

Taking intentional action in a worthy cause and enduring in this act ­despite the risk of serious personal consequences

Internal Stakeholders

Consist of employees, owners, and the board of directors.

Owners

Consist of all those who can claim the organization as their legal property

Board of Directors

Members elected by the stockholders to see that the company is being run according to their interests.

Owners and Board of Directors

There are two (2) internal stakeholders. Who are these?

External Stakeholders

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

The task environment and the general environment

There are two (2) external stakeholders. Who are these?

Task environment

Consists of 10 groups that present an organization with daily tasks to handle

General Environment

Refers to the macroenvironment, such as economic, technological, and sociocultural

Customers

Those who pay to use an organization’s goods or services

Competitors

People or organizations that compete for customers or service

Supplier

Provides raw materials, services, equipment, labor, or energy to other organizations

Distributor

A person or organization that helps another organization sell its goods and services to customer

Strategic Allies

The relationship of two organizations who join forces to achieve advantages neither can perform as well alone

Employee Organizations

Labor unions and professional associations

Local Communities

May institute clawbacks: rescinding tax breaks when firms don’t deliver promised jobs.

Customers, Competitors, Supplier, Distributor, Strategic Allies, Local Organizations, Local Communities, Financial Institutions, Government Regulators, and Special Interest Groups

What/Who are the groups that are considered apart of the task environment?

Financial Institutions

Banks, savings and loans, and credit unions.

May engage in crowdfunding, raising money for a project by obtaining many small amounts of money from many people (the crowd).

Crowdfunding

Raising money for a project by obtaining many small amounts of money from many people

Government Regulators

Regulatory agencies that establish ground rules under which organizations may operate.

Special-Interest Groups

Groups whose members try to influence specific issues.

formed a strategic alliance

Two drug companies agree to work together to pool their research and development funds to develop a new drug for arthritis. In doing so, these two organizations have

formed a union.

formed a strategic alliance.

analyzed their internal environment.

influenced the mass media.

strategic alliance

When organizations join together to achieve an advantage that neither could perform as well alone it is called a(n) __________.

local communities ; task

ChemTech International is being picketed by a group of people who live by their biggest plant. The group is concerned about ChemTech’s disposal of waste products into nearby waterways. In this instance, ChemTech is dealing with the ____ part of its ____ environment.

special-interest groups; task

local communities; task

sociocultural; general

sociocultural; task

government regulators; task environment

The Environmental Protection Agency (EPA) administers environmental standards in the U.S. The EPA represents the ______ part of organizations' ______.

local communities; task environment

financial institutions; internal environment

government regulators; task environment

special interest groups; external environment

Economic Forces

Consist of the general economic conditions and trends: unemployment, inflation, interest rates, economic growth.

Technological Forces

New developments in methods for transforming resources into goods and services.

Sociocultural Forces

Influences and trends originating in a country’s, a society’s, or a culture’s human relationships and values that may affect an organization.

Demographic Forces

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

Political-Legal Forces

Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization.

International Forces

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

Economic forces, technological forces, sociocultural forces, Demographic forces, Political-Legal Forces, International Forces

What groups/classifications make up the general environment?

Ethical Dilemma

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

Ethics

Standards of right and wrong that influence behavior; may vary along different countries and cultures

Values

Relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior.

The value system stressing financial performance.

The value system stressing cohesion and solidarity in employee relationships.

Organizations may have two value systems that conflict.

What are those two value systems?

four

There are ____ approaches to resolving ethical dilemmas.

The utilitarian approach , The individual approach, The moral-rights approach, The justice approach

There are four approaches to resolving ethical dilemmas. What are those four approaches?

The utilitarian approach

What approach is guided by what will result in the greatest good for the greatest number of people and is often associated with financial performance?

The individual approach

What approach is guided by what will result in the individual’s best long-term interest, which ultimately is in everyone’s self-interest and often assumes that people will act ethically in the short run to avoid harm in the long run. Additionally, flaw is one person’s short-term gain may not be good for everyone in the long term

The moral rights approach

What approach is guided by respect for the fundamental rights of human beings: the right to life, liberty, privacy, health, safety, and due process? A good example of this is the U.S. Constitution’s Bill of Rights.

The justice approach

What approach is guided by respect for impartial standards of fairness and equity? This approach allows policies to be administered impartially and fairly, regardless of gender, age, sexual orientation, and the like.

The justice approach

This approach allows policies to be administered impartially and fairly, regardless of gender, age, sexual orientation, and the like.

white collar crime

Illegal trading, Ponzi schemes, and other crimes dominated the headlines in the early 21st century. What type of crime was this?

Sarbanes-Oxley Act of 2002

Established requirements for proper financial record keeping for public companies.

Sarbanes-Oxley Act of 2002

What act has a punishment of up to 25 years in prison for noncompliance?

Sarbanes-Oxley Act of 2002

An array of scandals in the early 21st century led to the passing of the ____________.

Sarbanes-Oxley Act of 2002

What is sometimes called SarbOx or SOX?

personally certify the organization’s financial reports, prohibits them from taking personal loans and lines of credit, and makes them reimburse the organization for bonuses and stock options when required by restatement of corporate profits. It also requires the company to have established procedures and guidelines for audit committees.

SOX requires a company’s CEO and CFO to:

The SOX (The Sarbanes–Oxley Reform Act)

What requires a company’s CEO and CFO to personally certify the organization’s financial reports, prohibits them from taking personal loans and lines of credit, and makes them reimburse the organization for bonuses and stock options when required by restatement of corporate profits? It also requires the company to have established procedures and guidelines for audit committees.

The SOX (The Sarbanes–Oxley Reform Act)

_____________requires the company to have established procedures and guidelines for audit committees.

preconventional, conventional, and postconventional

In order to learn ethics, Kohlberg developed three levels of personal moral development. What are those three levels?

three

There are _____ levels of personal moral development.

preconventional

What is level one (1) of Kohlberg’s personal moral development?

conventional

What is level two (2) of Kohlberg’s personal moral development?

postconventional

What is level three (3) of Kohlberg’s personal moral development?

Preconventional

Which level of moral development focuses on follows rules to avoid unpleasant consequences?

Conventional

Which level of moral development focuses on follows expectations of others (most managers are at this level)?

Postconventional

Which level of moral development is guided by internal values, they lead by example?

Level One - Preconventional

People who have achieved this level tend to follow rules and obey authority to avoid unpleasant consequences. Managers of the Level 1 sort tend to be autocratic or coercive, expecting employees to be obedient for obedience’s sake.

Level One - Preconventional

Which and what level of moral development follows rules?

Level Two - Conventional

People whose moral development has reached this level are conformist but not slavish, generally adhering to the expectations of others in their lives. Level 2 managers lead by encouragement and cooperation and are more group and team oriented. Most managers are at this level.

Level Two - Conventional

Which and What level of moral development do people typically follow the expectations of others?

Postconventional

The farthest along in moral development, Level 3 managers are independent souls who follow their own values and standards, focusing on the needs of their employees and trying to lead by empowering those working for them.

Postconventional

Which and What level of moral development do you see individuals mostly guided by internal values?

Postconventional

Which and What level of moral development do you see individuals lead by example?

three ; postconventional

Only about 1/5 of American managers reach level _____ of moral development, which is described as the _____ level.

Social responsibility

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

Corporate social responsibility

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

organizational

If ethical responsibility is about being a good individual citizen, social responsibility is about being a good _____________ citizen.

organizational citizen

Taking on organizational citizenship behaviors that exceed employees' job descriptions, such as altruism, courtesy, sportsmanship, conscientiousness, and civic virtue.

four

There are ____ levels in Carroll’s Global Corporate Social Responsibility Pyramid.

Philopanthric Responsibility

The top of Carroll’s Global Corporate Social Responsibility Pyramid is the ______ sector.

corporate social responsibility

According to University of Georgia business scholar, Archie B. Carroll, ________________ rests at the top of a pyramid of a corporation’s obligations, right up there with economic, legal, and ethical obligations

Triple Bottom Line (TBL)

Representing people, planet, and profit (the 3 Ps)-measures an ­organization’s social, environmental, and ­financial performance

People, Planet, Profit

What are the three P’s?

profit ; corporate citizenship

Carroll suggests the responsibilities of an organization in the global economy should take the following priorities, with ___________ being the most fundamental (base of the pyramid) and ___________ at the top.

Philanthropic Responsibility

Do what is desired by global stakeholders falls under which factor of the pyramid?

Ethical Responsibility

Do what is expected by global stakeholders falls under which scheme in the pyramid?

Legal Responsibility

Do what is required by global stakeholders falls under which scheme in the pyramid?

Economic Responsibility

Do what is required by global capitalism falls under which scheme in the pyramid?

Reduce your carbon footprint.

Foster positive emotions in yourself and others.

Spend time in nature.

Get the proper amount of sleep.

Increase your level of exercise.

Expand your awareness of social realities.

Fulfill your promises and keep appointments.

Avoid people who lack integrity

When managing your readiness, how can you focus on the greater good and on being more ethical?

Focus on the greater good and on being more ethical

The following are ways to accomplish what:
Reduce your carbon footprint.

Foster positive emotions in yourself and others.

Spend time in nature.

Get the proper amount of sleep.

Increase your level of exercise.

Expand your awareness of social realities.

Fulfill your promises and keep appointments.

Avoid people who lack integrity

Purchase Fair Trade items.

Bring your own grocery bags.

Don’t purchase items that aren’t ethically made or sourced.

Don’t buy knockoffs.

When managing your readiness, how can you become an ethical consumer?

Become an ethical consumer

The following are ways to do what:
Purchase Fair Trade items.

Bring your own grocery bags.

Don’t purchase items that aren’t ethically made or sourced.

Don’t buy knockoffs.

True

True or False:
By focusing on fundamental aspects of your life and engaging in activities that facilitate a habit of showing integrity, ethicality, and concern for the greater good, you can develop integrity and ethical behavior

Stakeholders

People whose interests are affected by an organization’s activities

Internal Stakeholders

Employees, owners, and the board of directors, if any

External Stakeholders

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

Task Environment

Eleven 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

General Environment

Also called macro­environment; in contrast to the task environment, it includes six forces: economic, technological, sociocultural, demographic, political–legal, and international

Macroenvironment

In contrast to the task environment, it includes six forces: economic, technological, sociocultural, demographic, political–legal, and international

Owners

All those who can claim the organization as their legal property

Board of Directors

Group of people elected to oversee the firm’s activities and ensure that management acts in the shareholders’ best interests

Customers

Those who pay to use an organization’s goods or services

Competitors

People or organizations that compete for customers or resources

Suppliers

People or organizations that provide supplies—that is, raw materials, services, equipment, labor, or energy—to other organizations

Distributors

People or organizations that help another organization sell its goods and services to customers

strategic allies

The relationship of two organizations who join forces to achieve advantages neither can perform as well alone

clawbacks

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