MGT 481 study guide
MGT 481 study guide Management 481
Popular in Management and Society: Ethics and Social Responsibility
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This 9 page Study Guide was uploaded by Briana Notetaker on Tuesday January 12, 2016. The Study Guide belongs to Management 481 at Western Illinois University taught by Dr. Gordon P. Rands in Winter 2016. Since its upload, it has received 79 views. For similar materials see Management and Society: Ethics and Social Responsibility in Business, management at Western Illinois University.
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Date Created: 01/12/16
MGT 481 Exam 1 Study Guide, Spring 2016 Institutions and Environments 1. What are the eight strategic radar screens they identify? Competitor environment Economic environment Technological environment Social environment Political environment Legal environment Geophysical environment customer environment 2. What are the five external environmental sectors that make up the SEPTEmber model of the environment described in the slides? Social Economic Political Technological Ecological 3. What benefits come to companies from actively paying attention to their external environments? Paying active attention to the external environment can result in noticing changes earlier and adapting more easily 4. What does Dr. Rands mean by the statement in the slides that “change in one sector usually causes change in one or more other sectors” and how did our discussion in class illustrate this? Change in one sector causes other sectors to make new adjustments. Examples, Hybrid cars, legalization of marijuana 5. What is meant by social capital, as discussed in the slides? Connections within and between social networks 6. What is meant by a social institution, particularly as explained in the second half of the definition in the Institutions – Type 1 slide? What are some common social institutions and their corresponding societal functions? Social Institution, a group of social positions, connected by social relations, performing a social role. Business: provide goods and services, and create wealth Government: provide security, stability and protection 7. What is an NGO, what three types of NGOs exist, and what is the general purpose or aim of each type? A nongovernmental organization that provides social services, advocate for societal well-being, conduct research that can guide public policy. 8. Why is it important to business that strong social institutions exist? Social institutions perform vital functions for society Unethical Behaviors in Organizations 1. What are the four different meanings of “ethics” noted in the slides? (Hint: three of them are suggested by Carroll and Buchholtz). Issues of right, wrong, fairness, and justice The discipline that deals with what’s good and bad and with moral duty and obligation Good and bad and right and wrong behavior Ethics is the set of principles a person uses to determine whether an action is good or bad 2. We discussed different reasons that individuals experience ethical dilemmas. Dr. Rands suggested that there are two basic types of dilemmas relating to knowledge of what is the right thing to do. What are these two types? a right versus right dilemma, and a right versus wrong dilema 3. What are the four primary reasons that ethical problems occur in business, suggested by Lawrence and Weber? Personal gain and self interest Competitive pressures on profits Conflicts of interest Cross-cultural contradictions 4. What is the relationship between ethics and the law? Very complex relationship 5. What are the seven types of costs associated with unethical behavior discussed by Collins? Lost business Theft Legal Monitoring Reputation Abusive treatment Recruitment and turnover 6. What competitive advantages does Collins suggest that ethical organizations gain, compared to unethical organizations? Attract and retain high quality employees Earn good will with community Attract and retain quality customers 7. How does the Sarbanes-Oxley Act of 2002 relate to business ethics, and what are some of the major features of the law? This act was created because of the ethical sandals at Enron World om, Tyco An Historical Perspective on Business Ethics 1. What are the ethical foundations of capitalism, according to Adam Smith? Freedom and liberty are essential values Free people naturally pursue their self-interests and respect the interest of others Self-regulate actions based on their conscience, belief in God, concern for the well-being of other, and reason Essential to punish those who do not appropriately self-regulate their behaviors, and to enforce contracts 2. What is income inequality, and what trends have existed in income inequality since the end of World War II? It refers to the extent which income is distributed in an uneven manner among a population. Trends such as the civil rights act, equal pay act , air pollution act, FDA act etc 3. What is the Genuine Progress Indicator (GPI) discussed in class and in the additional set of PowerPoint slides? How in general does GPI differ as a measure from GDP? How is it related to the issue of income inequality? What would be the basic implications of using GDP to help guide macro-economic policy making instead of GPI? The GPI reveals the relationship between economic and social environment factors, the GPI financial transactions relate to our well being The GPI uses persona consumption expenditures adjusted for income inequality Subtracts 3 categories of expenses that do not improve well being Include nonmonetary benefits 4. Why is executive compensation an ethical issue? Because people feel they make to much money while subordinates are barely making it 5. What is the difference between the minimum wage and a living wage? Minimum wage lowest wage an employer can legally pay you Living wage, amount of money a full time employee needs to afford the basic needs or exceed poverty 6. What are the US Sentencing Commission's sentencing guidelines for organizations? How do they provide an incentive for legal and ethical compliance? (see also the slides from the previous session) Manager implements policies and procedures that reinforce ethical behaviors. They are based on the best practices for ethics compliance programs, which could reduce the occurrence of unethical and criminal activities 7. What is a B Corporation, how is it related to ethics, and how does a company become a B Corporation? A B corporation is a certification process for branding a business as being ethical, sustainable, and socially responsible. Companies complete the survey( with assistance of a B Lab staff member) 80 points are needed and amend governance documents to include stakeholder interests Granted a 2 year B corporation certification Social Problems and Corporate Social Responsibility 1. What is the meaning of "corporate social responsibility?" How does CSR relate to corporate power, and what is the "iron law of responsibility?" CSR: the idea that a corporation should be held accountable for any of its actions that affect people, their communities, and their environment Iron law of responsibility: in the long run, those who do not use power in the ways society considers responsible will lose it. 2. What are the four types or categories of social responsibility that Archie Carroll identifies? What is included within each category? How do the four categories differ? Carroll has explained the meaning of the top two categories in two slightly different ways; what are these differences? Economic: be profitable Legal: obey the law Ethical: do what is right, fair, and just Discretionary: be a good citizen 3. What do you believe is the most appropriate way to order these four categories in terms of their importance or priority for a manager, and why? Discretionary, ethical, legal, economic. Discretionary activities create trust and builds a reputation for the organization which leads to be profitable (economic) doing the right thing (ethical) and obeying the law (legal). 4. According to Carroll's definition of CSR, who defines what the social responsibilities of a business are? Society defines the social responsibilities of a business 5. How do these four categories apply to a case, such as the Merck River Blindness case? The company wasn’t legally required to provide the vaccine for the village nor did they have the funds to continue to produce the vaccine (economic). The company was ethically required to supply the vaccine because they already developed part of the medicine. 6. What is the meaning of strategic corporate social responsibility, according to Sandra Waddock? Which of Carroll’s four categories of CSR does this entail? How does it relate to the concept of enlightened self-interest? Strategic corporate social strategy is the attempt by companies to link those largely discretionary activities explicitly intended to improve some aspect of society or the natural environment with their strategies and core business activities. Self-interest is adds economic value to society through discretionary activities 7. What are the different arguments mentioned in the slides FOR corporations assuming social responsibilities? Do you agree with these arguments? Why or why not? Discourages government regulation Promotes long-term profits for business Business value and reputation Balances corporate power with responsibility 8. What are the different arguments AGAINST CSR? Do you agree with these? Why/why not? Lowers economic efficiency and profit Places responsibility on business rather than individuals Unequal costs among competitors Corporate Social Performance 1. What is the basic meaning of the term corporate social performance? Takes a systems approach as well as inputs from the environment related to social issues 2. What are the four central dimensions of Rands' model of CSP? Inputs Throughputs Outputs Feedback 3. What are the individual elements within each of the first three dimensions? Inputs: social responsibilities Throughputs: social responsiveness Outputs: social responses 4. What is meant by domain of social control? What three domains exist? The way in which the stakeholder states or implies that it will enforce its demand for action by the company; this relates to the type of power and influence strategy the stakeholder will use Economic/remunerative Coercive/threat or fore Moral/symbolic 5. What is the basic focus of the throughput dimension, that of corporate social responsiveness? What are the four basic processes within this dimension? Issues Interpretation: noticing understanding assessing the implications of prioritizing and suggesting how to handle social issues raised Strategy formulation: deciding what to do Strategy implementation: carrying out the decision Strategy evaluation: determining whether the action, decision was effective 6. What is meant by posture of response and what are the four different postures in Dr. Rands’ model? Basic purpose or motivation Ignore (reactive) Defend Accommodate Solve the problem (proactive) 7. What is meant by tactical arena of response and what are the seven different tactical arenas in the model? (Be able to identify what arena and posture specific corporate actions would fall within). Means of acting Product Process Political Philanthropic Publicity (informational) Places (infrastructure, ancillary/support activities) People (capacity of building) Influencing the Political Environment 1. What are the three types of political processes described in the slides? What are the key elements of each? What opportunities do these provide for businesses and other parties to try to influence the political process? Legislative: studying an issue, introducing a bill, considered in committee Regulatory: reviews comments, revises regulations, public hearings Electoral: potential candidates, party conventions, candidates raise money, seek endorsements 2. What are the arguments for why business should, and should not, be involved as in the political process? What position do you take on this question, and why? For pluralistic system invites many participants economic stakes are high for firms counter balances other social interests a vital stakeholder of government Against managers not qualified to engage business too big, too powerful business to selfish to care risks its credibility by engaging in partisan politics 3. What is a corporate political strategy, what are the three main types of political strategy, and the major tactics associated with each? The activities take to acquire, develop, and use power to obtain an advantage Information: lobbying, direct communication, expert witness testimony Financial incentives: political contributions, economic leverage, office personnel Constituency building: stakeholder coalitions , advocacy advertising, public relations 4. What is lobbying? What are some of the activities lobbyists engage in? What are direct communication and expert witness testimony? Lobbying involves communicating and persuading others to support organizations interest or stake as they consider a particular law, policy, or regulation Meeting with and providing info to elected and appointed officials Helping candidates secure money Hiring former members of congress and their aides Direct communication: businesses invite officials to participate in activities that will improve government officials understanding of management and employees concern. Expert witness testimony: fats, anecdotes, or data to educate or influence government leaders at public forums like congressional hearings. 5. What are political action committees (PACs)? What do they do? What is differences exist between traditional and Super PACs? What is economic leverage? PACS are independent organizations that can solicit contributions and then channel those funds to candidates seeking political office. Economic leverage: business uses its economic power to threaten to leave a city, state, or country unless a desired political action is taken Tradition PAC: $5,000 limit $15,000 per national or state party committee NGO company Super PAC: No limit of contributions Don’t have to disclose the names of contributions Spend an unlimited amount of money 6. What trends have existed in campaign spending in the US? 1984-2012 rose by %555 2012 presidential campaign cost 2.6 billion June 30, 2015 $388 million was donated by less than 400 companies
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