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163 Cards in this Set

  • Front
  • Back

Which model describes business as responding to economic forces?

The Market Capitalism Model

The economic philosophy that rejects the intervention of the government in the operations of markets?

Laissez-faire

An intangible object of thought

Idea



An enduring belief about what important choices in how we live are "correct" is called

Value

True or False: The social contract is an unwritten agreement between people in a society which gives people an opportunity to live in peace with each other.

True

True or False: A social contract between business and society gives this relationship a moral basis for its operation.

True

The entities that have a relationship with a corporation in such a way that they are affected immediately and powerfully by the actions of the corporation are called the

A primary stakeholder

True or False: Economic activity is a geophysical force in the society

True

True or False: BGS is the study of business, government, and society and its importance for managers.

True

True or False: The primary purpose of a business is to make a profit by providing products that satisfy human needs.

True

True or False: The structures and processes in a society that make and apply policies and rules are called business.

False



True or False: A business needs to be responsive to its economic environment but not to its non-economic environment.

False

True or False: Adam Smith used the word “capitalism” often in his published writings.

False

True or False: Under the dominance model, corporations are insulated from the pressures that promote responsibility to society.

True

True or False: “Enriches a few at the expense of many” – this is one of the principles of the Market Capitalism Model.

False

True or False: Astor demonstrated real patriotic behavior in his business activity.

False

True or False: In general, Rockefeller was ethical person because he donated huge money to the Church.

False

A profit-making activity that provides products that are intended to satisfy human needs is called a(n):

Business

The idea that there are no universal ethical values but that each culture determines these values is a basic tenet in:

Ethical Relativism

Which of the following models emphasizes that corporations benefit or burden a number of persons, groups and entities both directly and indirectly?

The stakeholder model

The duty of a corporation to avoid harm to the assets of society is called:

Corporate Social Responsibility

True or False: Socialism accepts the basic values of capitalism.

False

True or False: When a society is ruled by people who are smart and wealthy, this is called socialism.

False

True or False: The industrial revolution decreased the gap between the rich and poor around the world.

False

True or False: The idea of a classless society in which property is owned collectively by the people is a basic tenet in democracy.

False

True or False: Corporate social responsibility has a definite, universal meaning.

False

True or False: Large corporations often find stronger restraints on their operations in foreign countries.

False

True or False: What is right or wrong in a business decision involving ethical concerns is always a clear decision.

False

The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with which ethical principle?

Compensatory Justice

Which of the following explains why ethical decisions (decisions involving ethical issues) can be so difficult to make?

Because knowledge of the future consequences of our actions is inherently limited

Which of the following would be a valid criterion for making an ethical decision?

a. Choosing the alternative which creates the greatest good for the greatest number of people.




b. Choosing the alternative that most effectively fulfills the manager’s most important obligations.




c. Choosing the alternative that most completely follows the law.

The idea that the sole responsibility of a business is to maximize profits while acting within the law is a fundamental tenet in:

Friedmanism

True or False: Kant’s categorical imperative is an ethical guideline that allows a manager to be flexible and act depending on the situation.

False

True or False: The idea that different cultures have different ethical values is called the theory of ethical relativism.

True

True or False: Top managers are the strongest influence on the integrity of the company’s managers.

True

True or False: The ethical principle of equal freedom asks the manager to ask himself if his actions will prevent other workers from doing what they have a right to do.

True

True or False: The conventionalist ethic is often a justification for questionable behavior by managers.

True

Which of the following is NOT generally regarded to be a stakeholder of a firm?

The environment

True or False: An enduring belief about which basic choices in a society are “correct” is called an idea

False

True or False: The general public generally believes that a business has social responsibilities beyond merely making a profit.

True

A set of statements that describes patterns of relationships in a complex subject is called a(n);

Theory

The study of phenomena that move through time is called:

History

The entities that have a relationship with a corporation in such a way that they are affected immediately and powerfully by the actions of the corporation are called the:

Primary Stakeholders

True or False: The vast majority of the poor people on earth live in economies that have been transformed by industrial growth

False

True or False: The modern nation-state arose out of the ruin of the Roman Empire.

True

True or False: Changes in the business environment can sometimes result from unknown and unpredictable causes.

True

True or False: Trade liberalization occurs when nations promote trade by easing tariff restrictions but not non-tariff restrictions.

False

True or False: Values that are based on the assumption of affluence are called postmodern values.

True

Inequality in living standards as measured by HDI is__________ , while income inequality as measured by per capita GDP is__________ .

Declining, Rising

True or False: Power is sometimes used in U.S. society to prevent change.

True

True or False: All societies have mechanisms to control power.

True

True or False: The force behind a company’s actions is called its power.

True

True or False: On a deep level,corporate power creates many indirect effects on the society in which it operates.

True

True or False: Increases in business mergers are caused by changes in the economic environment of the society that create incentives to combine businesses.

True

True or False: The U.S. Constitution discourages pluralism.

False

True or False: Modern socialist ideas were developed by Francois-Noel Babeuf.

True

A society that has its economic, political, and cultural values based on agriculture is called:

Agarian

The idea that hard work and acting in a virtuous manner will result in the approval of God is called:

The Protestant Ethic

When a society is ruled by people who are wealthy, it is called a(n):

Plutocracy

When a group of consumers places pressure on a company to make efforts to reform its policies by refusing to buy this company’s products, this is called a(n):

Boycott

True or False: When managers are convicted of criminal behavior, prison sentences are imposed based on a numerical formulas

True

True or False: The doctrine of the mean in ethics is a fundamental teaching of Aristotle.

True

True or False: Thracymachus believed that justice is simply what is in the best interest of the stronger person.

True

In considering whether or not to do a certain action based on ethical reasoning, when the manager asks herself: “If I act in this way, would my family approve of my actions?”, she is applying which principle?

The Others Test

“Do unto others as you would have them do unto you” is the basic premise in which ethical principle?

The Golden Rule

When a manager makes ethical decisions based on what he feels he can get away with given his power in the organization’s hierarchy, he is using which ethical principle?

The Might-Equals Right Ethic

The idea that pay raises should be based on objective performance criteria instead of the “buddy system” is fundamental to which ethical principle?

Distributive Justice

The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with which ethical principle?

Compensatory Justice

True or False: The populist movement of farmers blamed society’s social problems on industry and wanted government ownership of the railroads, telegraphand telephone companies, and banks..

True

True or False: The idea of a classless society in which property is owned collectively by the people is a basic tenet in democracy.

False

True or False: Socialism accepts only the basic values of capitalism.

False

The ability of a business to influence government is called:

Political Power

The purpose of the U.S. Foreign Corrupt Practices Act's requirement of full disclosure of the company's relations with sales agents and government officials is:

To prevent bribery and other legally quetionable payments

True or False: Kohlberg’s Six Stages of Morality and Ethical Judgments are the best approach to figure out ethical and unethical decisions.

False

People everywhere depend on ethical systems to tell them whether their actions are:

Right or Wrong

Stakeholders involved with one part of a company often may have little or no involvement with another part of a company

True

True or False: Human rights issues have become more prominent and important for business.

True

A stakeholder analysis:

Involves understanding the nature of stakeholder interest

Which of the following is a justification given by advocates of Corporate Social Responsibility (CSR)?

CSR motivates employees and creates loyal customers

A stakeholder is defined as:

An entity thatis either benefited or burdened by the actions of the organization.

What stakeholder group(s) can exercise legal power?

Employees, Customers and Shareholders

According to utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical because it produces:

The greatest good for the greatest number of people

An employee may become an external whistle-blower by:

Speaking with the media or appropriate government agency

A giant step is taken toward improving ethical performance throughout the company when:

Senior level managers signal to employees that they believe ethics is a high priority

True or False: Respecting others, except those with whom we disagree or dislike, is the essence of ethical rights reasoning.

False

What can government Influence?

Legal Environment, Political Regime, Economic Environment

What can Business Influence?

Economic Environment & Technological Environment

What can society influence?

Technological Environment & Cultural Environment

Parts of legal environment?

Legislation, Regulation and Litigation

Parts of Political Regime?

Democracy or Not?




Level of control over media, businesses, and civil services

Parts of Economic Environment?

Commodity prices, interest rates, and currency fluctuations

Parts of Technological Environment?

Access to Modern Technology

Parts of Cultural Environment?

Social Norms, Values, Customs, Rituals and Taboos

What is government?

Refers to structures and processes in society that authoritatively make and apply policies and rules

What is society?

A network of human relations that include three interacting elements: Ideas, Institutions and Material Things

Why is the BGS field important to managers?

To succeed in meetings its objectives a business must be responsive to both its economic and its noneconomic environment

What is managerial capitalism?

Dominated by smaller numbers of large corporations run by hierarchies of salaried managers

Principles of Market Capitialism Model?

1.Government regulation should be limited.




2. Markets discipline private economic activity to promote social welfare




3. The proper measure of corporate performance is profit




4. The ethical duty of management is to promote the interests of shareholders

Dominance Model?

Business and Government dominate the masses




"Enriches a few at the expense of many"

Define the conclusions of the Countervailing Forces Model?

Business is deeply integrated into an open society



Business is a major initiator of change in society



Broad public support of business depends on its adjustment to multiple social,political, and economic forces



BGS relationships continuously evolve as changes take place in the main ideas,institutions, and processes of society.

Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing.

Secondary Stakeholders

Name some forces that changed the business environment?

1. The Industrial Revolution


2. Population Growth


3. Technology


4. Globalization


5. Inequality


6. Nation-States


7. Dominant Ideologies


8. Great Leadership


9. Chance

What was the Industrial Revolution?

The Industrial Revolution was the major shift of technological, socioeconomic and cultural conditions in the late 18th and early 19th century that began in Britain and spread throughout the world.

First Phase of the Industrial Revolution?

Transfer of Knowledge


Industry Innovations


Transportation

Second Phase of the Industrial Revolution?

Electricity


Communication Industry


Urbanization


Entertainment


Implications of current population trends...

The wealth gap between high- and low-income countries will extend




Growth will continue to strain the earth’s ecosystems




The West is in demographic decline compared with other peoples

Defined as growing networks of economic, political, social, military, scientific, or environmental interdependence, is a long-term environmental force going back to prehistoric times

Globalization

Composite index that measures the average achievements in a country in three basic dimensions of human development:

Human Development Index (HDI)

Measures of HDI?

Life expectancy


Literacy Rate


GDP per capita in PPP US dollars



Unit of human organization in which individuals and cultural groups can influence their circumstances and future.

Nation-state

A coherent system of ideas, relying upon a few basic assumptions about reality that may or may not have any factual basis, but are subjective choices that serve as the seed around which further thought grows

Ideology

What are the characteristics of ideology?

1. it must have power over cognitions;


2. it must be capable of guiding one'sevaluations;


3. it must provide guidance towardsaction;


4. it must be logically coherent

Ideology that seeks to establish a classless, stateless social organization,based upon common ownership of the means of production

Communism

Kohlberg’s Six Stages of Morality and Ethical Judgments?

Level 1. Preconventional Morality


Stage 1. Obedience and Punishment Orientation


Stage 2. Individualism and exchange


Level II. Conventional Morality


Stage 3. Good Interpersonal Relationships.


Stage 4. Maintaining the Social Order.


Level III. Postconventional Morality


Stage 5. Social Contract and Individual Rights.


Stage 6: Universal Principles

Persons in this stage obey rules to avoid punishment?

Obedience and Punishment Orientation

Personal needs determine what is right or wrong. There is just one right opinion. Different individuals have different viewpoints.

Individualism and Exchange

One's behavior is determined by what pleases and is approved by others?

Good Interpersonal Relationships Stage

People on this stage think about society as a whole?

Maintaining Social Order

Good is determined by socially agreed upon standard of individual rights...

Social Contract and Individual Rights Stage

What is "good" and "right" are matters of individual conscience and involve abstract concepts of justice, human dignity, and equality?

Universal Principles Stage

Study of good and evil, right and wrong, and just and unjust actions in business?

Business Ethics

Conduct prescribed by convention or by authority to be used while interacting with business associates

Business Etiquette

What are the two approaches to Business Ethics?

Theory of Amorality


Theory of Moral Unity

Business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society

Theory of Amorality

Business actions are judged by the ethical standards of society.

Theory of Moral Unity

What are the four major sources of Ethical Values in Business?

Religion


Philosophy


Culture


Law



Holds that in terms of biological and psychological needs, human nature everywhere is the same?

Ethical Universalism

True or False: Corporations are criminally liable for corrupt actions of managers if those actions are intended to benefit the corporation

True

What are the four internal forces that shape corporate ethics?

Leader's example


Policies


Organization Culture


Individual Characteristics


A factor that contributes to lowered ethical climates in corporations is?

Moral Muteness

The set of shared values, beliefs, and norms that influences the way employees think, feel, and behave toward each other and toward people outside the organization?

Organizational Culture

The study of duty or obligation?

Deontology

The study of the ends?

Consequentialism

An action is right if it is in accordance with a moral rule or principle?

Deontology

The Ends justifies the Means

Consequentialism

Act only according to that maxim which will become a universal law

The Categorical Imperative

Business is like a game with permissive ethics and any action that does not violate the law is permitted...

The Conventionalist Ethic

Test an ethical decision by asking how you would feel explaining it to a wider audience such as newspaper readers,television viewers, or your family...

The Disclosure Rule

Virtue is achieved through moderation. Avoid behavior that is excessive or deficient of a virtue...

The Doctrine of the Mean

What is good or right is understood by an inner moral sense based on character development and felt as intuition...

The Intution Ethic

Be loyal to the organization?

The Organization Ethic

A person has the right to freedom of action unless such action deprives another person of a proper freedom...

The Principle of Equal Freedom

A set of rules for making decisions having both good and evil consequences...

The Proportionality Ethic

Each person has protections and entitlements that others have a duty to respect...

The Rights Ethic

Each person should act fairly toward others in order to maintain the bonds of community...

The Theory of Justice

The greatest good for the greatest number...

The Utilitarian Ethic

Main sources of criticism of business?

1. The belief that people in business place profit before more worthy values such as honesty, truth, justice, love, piety, etc.



2. The tension placed on societies by economic development.

Believed that insatiable appetites existed in every person, but could be controlled by acquiring inner virtues.

Plato

True or False: The Catholic Church believed that merchants should charge a just price and opposed the modern idea of market price?

True

Father of the cooperative movement and the Union?

Robert Owen

Where was the first experiment with Socialism?

New Harmony. A town in Indiana

Believed that the identity of a social class derived from its relationship to the means of production (as opposed to the notion that class is determined by wealthalone, i.e., lower class, middle class, upper class).

Karl Marx

Aristocracy is the ruling class. Merchants develop into capitalists.

Feudalism

Which system has the highest level of inequality?

Socialism

Who believed that agrarian economy was the ideal social order?

Thomas Jefferson

A political doctrine or philosophy that aims to defend the interests of the common people against an entrenched, self-serving or corrupt elite?

Populist

Sought to cure social ills by using government to control perceived abuses of big business?

Progressives

Liberalism and Neoliberalism?

John Keynes and Milton Friedman

All monopolies are illegal in the US

False

Which of the following is not a statue in place to protect the market from monopolies?

Securities and Exchange Act of 1934

True or False: Singapore's Prime Minister Lee Kuan Yee believed into the Principle of Equal Freedoms

True

Which was not in the success of Singapore's economy?

High Trade Barriers and little foreign investment

What was the key part of Margaret Thatcher's policy in the U.K.?

Privatizing business