Chapter The Field of Organizational Behavior 1.1 Multiple Choice Questions 1) is defined as ʺthe multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying individual, group, and organizational processes.ʺ A) Industrial psychology B) Organizational psychology C) Behavioral science D) Organizational behavior Answer: D Diff: Page Ref: LO: 2) Limitations of case studies include: A) It is expensive and time consuming to collect data B) Empirical techniques may skew results C) Findings may not be generalizable to other organizations D) Confidentiality is difficult to maintain Answer: C Diff: Page Ref: LO: 3) In , behavior is studied carefully to see how a particular variable that is systematically varied affects other aspects of behavior A) naturalistic observations B) experimental research C) case studies D) survey research Answer: B Diff: Page Ref: LO: 4) Organizational behavior focuses on three interrelated levels of analysis: A) emotions, intentions, and actions B) planning, executing, and results C) individuals, groups, and organizations D) thinking, feeling, and doing Answer: C Diff: Page Ref: LO: 5) OB specialists derive knowledge from a wide variety of social science disciplines is useful for studying negotiation and decision making A) Psychology B) Political science C) Economics D) Sociology Answer: C Diff: Page Ref: LO: 6) Which of the following assumes that people are basically lazy, dislike work, need direction, and will only work hard when they are pushed into action? A) Scientific management B) Time and motion study C) Theory Y philosophy D) Theory X orientation Answer: D Diff: Page Ref: LO: 7) Theory Y assumes that people A) are motivated primarily by financial incentives B) are basically lazy and irresponsible C) have social needs that influence their choices of work and employment D) have a psychological need to work and seek responsibility Answer: D Diff: Page Ref: LO: 8) Employers need to be concerned about job satisfaction because A) satisfied employees are less likely to quit than those who are dissatisfied B) accurate performance appraisal often causes job dissatisfaction C) people are more satisfied when they are not required to work too hard D) a satisfied employee is more productive than a dissatisfied employee Answer: A Diff: Page Ref: 10 LO: 9) Which of the following organizations are, on average, twice as profitable as the Standard & Poorʹs 500 companies? A) A company whose managers accurately appraise the work of their subordinates B) A business that developed a system of close supervision to monitor closely the work of its employees C) An organization that treats its employees well with respect to pay and benefits, offers opportunities, provides job security, and shows fairness D) A family-owned organization that gives priority to hiring and promoting friends and relatives of the owners Answer: C Diff: Page Ref: 10 LO: 10) The approach recognizes that behavior in work settings is the complex result of many interacting forces A) contingency B) one-best-way C) scientific management D) open-systems Answer: A Diff: Page Ref: 10 LO: 11) A(n) is defined as a structured system consisting of groups and individuals working together to meet some agreed-upon objectives A) task force B) team C) open system D) organization Answer: D Diff: Page Ref: 11 LO: 12) What is an open system? A) A structured social system consisting of groups and individuals working together to meet some agreed-upon objective B) A system of communication that promotes two-way conversation C) An interactive dialog incorporating feedback from all stakeholders D) A self-sustaining system that uses energy to transform resources from the environment into some form of output Answer: D Diff: Page Ref: 11 LO: 13) often occurs when organizations need far fewer people to operate today than in the past A) Rightsizing B) Outsourcing C) Automating D) Offshoring Answer: A Diff: Page Ref: 14 LO: 14) Telecommuting involves A) restricting the personal use of the Internet and e-mail B) using electronic equipment to permit conferences to be held at remote locations C) permitting employees to choose what hours they will work D) using communications technology to enable work to be performed from remote locations Answer: D Diff: Page Ref: 15 LO: 15) The underlying principle of scientific management is to A) structure organizations for the efficient management of people B) apply statistical analysis to the design of jobs C) get people to more work in less time D) eliminate the need for first-line supervisors Answer: C Diff: Page Ref: 21 LO: 16) Who published the groundbreaking book Principles of Scientific Management in 1911? A) Elton W Mayo B) Frank & Lillian Gilbreth C) Frederick Winslow Taylor D) Max Weber Answer: C Diff: Page Ref: 21 LO: 17) Frederick Winslow Taylor recommended that A) a bureaucracy be established to provide order in the workplace B) employees be carefully selected and trained to perform their jobs C) a standard hourly wage be implemented to discourage absenteeism D) workers be given more autonomy in the operation of their jobs Answer: B Diff: Page Ref: 21 LO: 18) Frederick Winslow recommended that increasing employee wages would A) improve the relationship between managers and employees B) make production costs too expensive and products less competitive C) raise employee motivation and make them more productive D) encourage employees to work fewer hours for the same weekly wage Answer: C Diff: Page Ref: 21 LO: 19) Industrial psychologists Frank and Lillian Gilbreth are best known for the development of A) time and motion study B) the bureaucratic model C) assembly lines D) the human relations movement Answer: A Diff: Page Ref: 21 LO: 20) Time and motion studies were designed to A) find the one best way to perform jobs B) reduce the need for close supervision of workers C) set minimum qualifications needed by job holders D) establish piecerate plans Answer: A Diff: Page Ref: 21 LO: 21) The human relations movement A) emphasized the importance of employee training and development B) encouraged employee participation in organizational decision making C) rejected the primary economic orientation of scientific management D) concentrated on redesigning the workplace to eliminate safety hazards Answer: C Diff: LO: Page Ref: 22 Managing Behavior in Organizations, 6e (Greenberg) -CVC -8/1/2012 -Page Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 22) The human relations movement founded by Elton Mayo A) illustrated the importance of stable families in an industrial society B) recognized the primary economic orientation of workers C) found a consistent relationship between job satisfaction and productivity D) focused on the noneconomic, social factors operating in the workplace Answer: D Diff: Page Ref: 22 LO: 23) A major finding of the Hawthorne studies is that A) working conditions impact productivity B) employees work best without close supervision C) organizations are social systems D) employees are economic creatures Answer: C Diff: Page Ref: 22 LO: 24) Classical organizational theory focused on A) establishing the means of controlling worker activities B) the efficient structuring of organizations C) the effective allocation of monetary incentives D) effectively organizing the work of individuals Answer: B Diff: Page Ref: 23 LO: 25) Weber believed that is the one best way to efficiently organize work in all organizations A) bureaucracy B) time and motion management C) scientific management D) Theory Y Answer: A Diff: Page Ref: 23 LO: 1.2 True/False Questions 1) Organizational behavior applies common sense to the complexities of human behavior at work Answer: FALSE Diff: Page Ref: LO: 2) The field of organizational behavior focuses on three interrelated levels of analysis: attitudes, intentions, and behavior Answer: FALSE Diff: Page Ref: LO: 3) The micro approach to OB focuses primarily on the behavior of individuals Answer: TRUE Diff: Page Ref: LO: 4) Organizational behavior draws from the highly individual-oriented approach of psychology Answer: TRUE Diff: Page Ref: LO: 5) The Theory X philosophy of management assumes that people have a psychological need to work and seek achievement and responsibility Answer: FALSE Diff: Page Ref: LO: 6) Organizational behavior seeks to make organizations more profitable by addressing the treatment of people and the way they their jobs Answer: TRUE Diff: Page Ref: LO: 7) Organizational behavior researchers seek to find the one best way to motivate people Answer: FALSE Diff: Page Ref: 10 LO: 8) The contingency approach assumes there is no one best approach to managing people Answer: TRUE Diff: Page Ref: 10 LO: 9) Research has shown that companies where employees are accurately appraised enjoy lower costs and higher productivity than those companies where appraisals are handled less accurately Answer: TRUE Diff: Page Ref: 10 LO: 10) Organizational Behavior cuts across all levels of organizational functioning Answer: TRUE Diff: Page Ref: 10 LO: 11) Employees who believe they have been treated unfairly on the job are more likely to steal from their employers Answer: TRUE Diff: Page Ref: 10 LO: 12) There is no evidence that companies that offer good employee benefits are more profitable than those that not Answer: FALSE Diff: Page Ref: 10 LO: 13) The human resource department is primarily responsible for organizational behavior Answer: FALSE Diff: Page Ref: 10 LO: Managing Behavior in Organizations, 6e (Greenberg) CVC 8/1/2012 Page Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 14) Outsourcing occurs when an organization focuses on its core competency while eliminating noncore sectors of the business Answer: TRUE Diff: Page Ref: 14 LO: 15) A business that closes all of its U.S facilities and relocates overseas is said to be offshoring Answer: FALSE Diff: Page Ref: 14 LO: 16) Telecommuting involves using a computer to work while at home or at any other remote location Answer: TRUE Diff: Page Ref: 15 LO: 17) Globalization is the process by which an organization expands its operations internationally Answer: FALSE Diff: Page Ref: 17 LO: 18) Repatriation helps people adjust to the culture shock they experience when returning to their native cultures after spending time away from it Answer: TRUE Diff: Page Ref: 17 LO: 19) The central focus of scientific management is to improve worker productivity and to get people to more work in less time Answer: TRUE Diff: Page Ref: 21 LO: 20) The human relations movement studied the impact of work on the lives of the workers Answer: FALSE Diff: Page Ref: 22 LO: 21) The Hawthorne studies found that worker productivity is increased by improving the workerʹs physical working conditions Answer: FALSE Diff: Page Ref: 22 LO: 22) Classical organizational theory focuses on the effective organization of the work of individuals Answer: FALSE Diff: Page Ref: 23 LO: 23) In developing his organizational theory, Henri Fayol stated that there should be a clear line of command connecting top management to the lowest-level employees Answer: TRUE Diff: Page Ref: 23 LO: 24) Division of labor refers to the fact that employees should receive directions from one, and only one, other person Answer: FALSE Diff: Page Ref: 23 LO: 25) The principles of organizational behavior are universal in their application across cultures Answer: FALSE Diff: Page Ref: 25 LO: 1.3 Essay Questions 1) What is organizational behavior? How is it multidisciplinary in nature? Answer: OB is the multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying individual, group, and organizational processes It is multidisciplinary in that it draws from such disciplines as psychology, sociology, and management science Diff: Page Ref: -9 LO: 1,2 2) Social scientists argue that OB is more than ʺjust common sense.ʺ What does this mean? Identify and describe four methods used to conduct research in the behavioral sciences Answer: Instead of relying on common sense, OB relies on a base of knowledge developed through empirical research -that is, research based on systematic observation and measurement Four methods are: Case study – A thorough description of a series of events that occurred in a particular organization Naturalistic observation – A scientist records various events and behaviors observed in a work setting Experimental research – Behavior is carefully studied in a lab or the field to see how a particular variable that is systematically varied affects other aspects of behavior Survey research – Questionnaires are developed and administered to people to measure how they feel about various aspects of themselves, their jobs, and their organizations Diff: Page Ref: LO: 3) What are the assumptions of Theory X and Theory Y orientations? Which orientation better applies to todayʹs business? Answer: Theory X holds a very negative view of employees They are assumed to be lazy, to dislike work, need direction, and only work hard when pushed into performing Alternatively, Theory Y assumes that people have a psychological need to work hard and seek achievement and responsibility Organizational behavior adopts the Theory Y perspective, assuming that people are highly responsive to their work environments The way employees are treated will influence the way they work Diff: Page Ref: 8-9 LO: 4) Discuss the challenges facing managers today How can the study of organizational behavior assist in meeting these challenges? Answer: Todayʹs managers are facing unrelenting changes in technology, in the nature of the workforce, and the interconnectedness of world business and cultures Technological advances have enabled management to provide alternative work arrangements, including telecommuting, to meet the needs of a more diverse workforce Globalization requires managers to study the cross-cultural aspects of behavior Even in businesses within the US, managers must face the need to adapt to changes in the workforce Managers also are faced with the challenges of addressing unethical behavior in their organizations and studying the impact of ethics on the bottom line The multidisciplinary nature of organizational behavior equips managers for meeting these challenges Diff: Page Ref: 10-20, 24-26 LO: 4,6 5) Contrast the scientific management theory with the human relations movement Answer: Scientific management, developed by Frederick Winslow Taylor, emphasized the importance of designing jobs as efficiently as possible, so that people will more work in less time Workers were carefully selected and trained Wages were the primary motivators The human relations movement rejected the economic orientation of scientific management and focused instead on the non-economic, social factors operating in the workplace Elton W Mayo studied workers at Western Electricʹs Hawthorne works outside Chicago Diff: Page Ref: 21-23 LO: Chapter Organizational Justice, Ethics, and Corporate Social Responsibility 2.1 Multiple Choice Questions 1) The study of peopleʹs perception of and reactions to fairness and unfairness in organizations is known as A) organizational ethics B) ethical standards C) corporate responsibility D) organizational justice Answer: D Diff: Page Ref: 34 LO: 2) Distributive justice focuses on peopleʹs beliefs that A) they have been valued by others in an organization B) they have received fair amounts of valued work-related outcomes C) the organization acts impartially when deciding pay and benefit issues D) the outcomes they receive have been determined fairly Answer: B Diff: Page Ref: 34 LO: 3) According to justice, people will be dissatisfied with their pay when it falls below expected standards A) comparative B) informational C) distributive D) procedural Answer: C Diff: Page Ref: 34 LO: 4) Not paying people what they deserve or asking them to work ʺoff the clockʺ contributes to feelings of A) unethical behavior B) organizational equity C) informational injustice D) distributive injustice Answer: D Diff: Page Ref: 34 LO: 5) The fact that people will better accept outcomes when they have had some input into determining them is known as A) the fair process effect B) informational justice C) the participative process D) organizational equity Answer: A Diff: Page Ref: 36 LO: 6) justice refers to the process by which outcomes are determined A) Comparative B) Instrumental C) Procedural D) Distributive Answer: C Diff: Page Ref: 37 LO: 7) justice involves peopleʹs perceptions of the fairness of the manner in which they are treated by other people such as authority figures A) Interpersonal B) Distributive C) Procedural D) Informational Answer: A Diff: Page Ref: 37 LO: 8) Informational justice refers to peopleʹs perceptions of A) the lack of bias involved when an organization makes decisions B) the accuracy of the information an organization provides to outside parties C) the fairness of the information used as the basis for making decisions D) the timeliness with which management distributes information to members of the organization Answer: C Diff: Page Ref: 37 LO: 9) According to social scientists, what are the fundamental beliefs regarding what is right or wrong, good or bad? A) Religious beliefs B) Moral values C) Social responsibilities D) Personal ethics Answer: B Diff: Page Ref: 41 LO: 10) An employeeʹs fundamental beliefs about what is good or bad are influenced by A) the culture of the organization B) the personʹs religious background C) training in ethical standards D) observations of leadersʹ behavior Answer: B Diff: Page Ref: 41 LO: 11) Whereas refers to fundamental beliefs about what is right or wrong, refers to standards of conduct A) attitudes; justice B) world religions; behavioral inclination C) ethical values; morality D) moral values; ethics Answer: D Diff: Page Ref: 41-42 LO: 12) Which of the following is the best definition of ethics? A) Standards of conduct that guide peopleʹs decisions and behavior B) Moral values that determine behavior C) Philosophical principles that are universal in their applications D) Fundamental beliefs about what is right and what is wrong Answer: A Diff: Page Ref: 42 LO: 13) The culture of the organization, the behavior of the leaders, and group norms collectively impact an employeeʹs A) behavior B) moral values C) standards of conduct D) ethics Answer: A Diff: Page Ref: 42 LO: 14) Businesses have found that the long-term impact of promoting ethical behavior includes A) increased operating costs B) a reputation for pious and self-righteous posturing C) an inability to attract and retain ethical employees D) improved financial performance Answer: D Diff: Page Ref: 43 LO: 15) The False Claims Act of 1986 A) provides guidelines for penalizing organizations involved in illegal activities B) focuses on the fiduciary responsibilities of boards of directors C) protects whistleblowers who report fraudulent behavior against U.S government agencies D) penalizes corporate officers who submit fraudulent accounting data Answer: C Diff: Page Ref: 44 LO: 16) Which of the following prohibits organizations from paying bribes to foreign officials for purposes of getting business? A) Sarbanes-Oxley Act B) Foreign Corrupt Practices Act C) False Claims Act D) Davis-Bacon Act Answer: B Diff: Page Ref: 44 LO: 17) The Federal Sentencing Guidelines for Organizations (1991) guide judges when A) sentencing directors of firms who file false accounting data B) imposing fines on organizations whose employees engage in criminal acts C) penalizing employees who fail to report illegal activities of executives D) setting jail terms for CEOs who engage in unethical conduct Answer: B Diff: Page Ref: 44-45 LO: 18) The initiated reforms in the standards by which public companies report financial data A) Federal Prosecutions of Business Organizations Act B) Sarbanes-Oxley Act C) Davis-Bacon Act D) False Claims Act Answer: B Diff: Page Ref: 44-45 LO: 19) The theory of cognitive moral development was developed by A) William Taylor B) Abraham Maslow C) J.M Kaplan D) Lawrence Kohlberg Answer: D Diff: Page Ref: 46 LO: 20) During the preconventional level of moral reasoning, people interpret what is right A) from the perspectives of others B) based on their religious beliefs C) with reference to the Golden Rule D) as whatever avoids punishment Answer: D Diff: Page Ref: 46 LO: 21) People at the level of moral reasoning determine what is right by considering the safety and welfare of society as a whole A) postconventional B) situational C) conventional D) Golden Rule Answer: C Diff: Page Ref: 46 LO: 22) People who are at the postconventional level of moral reasoning A) are judged to be ethically superior B) judge what is right and wrong in terms of their societal obligations C) what they are convinced is truly right, even if others disagree D) are unable to function in modern business organizations Answer: C Diff: Page Ref: 47 LO: 23) In terms of unethical thinking, the ʺbottom-lineʺ mentality reasons that A) financial success is the only value to be considered B) anything is right if the public can be made to see it as right C) good ethics is good business D) what is ethical is dependent upon the consequences of the actions Answer: A Diff: Page Ref: 47 LO: 24) What is the purpose of an ethics audit? A) To clearly articulate the companyʹs ethical expectations to employees B) To assess the morality of the employeesʹ behavior C) To provide strategies for ensuring ethical conduct throughout the company D) To describe what the organization stands for Answer: B Diff: Page Ref: 49 LO: 25) The concept of corporate responsibility involves A) attempting to meet prevailing legal and ethical standards B) embracing values that promote the greater welfare of society at large C) paying wages and benefits that exceed the going market rate D) developing products and services that improve the lives of citizens Answer: B Diff: Page Ref: 54 LO: 2.2 True/False Questions 1) Corporate social responsibility primarily involves meeting the prevailing legal and ethical standards Answer: FALSE Diff: Page Ref: 33 LO: 2) Organizational ethics is defined as the study of peopleʹs perceptions of and reactions to fairness and unfairness in organizations Answer: FALSE Diff: Page Ref: 34 LO: 3) Distributive justice is concerned with employees getting their fair share of work-related outcomes Answer: TRUE Diff: Page Ref: 34 LO: 4) Employeesʹ perceptions of the fairness of performance appraisal procedures have an impact on distributive justice Answer: FALSE Diff: Page Ref: 35 LO: 5) Workers are more likely to follow their employerʹs rules when they have reason to believe that the organizationʹs procedures are inherently fair Answer: TRUE Diff: Page Ref: 35 LO: 6) To be fair, the procedures used as the basis for making a decision about one person must be applied equally to making a decision about others Answer: TRUE Diff: Page Ref: 36 LO: 7) The fair process effect results, in part, from giving employees a voice in making decisions about matters that concern them Answer: TRUE Diff: Page Ref: 36 LO: 8) In terms of interpersonal justice, people are sensitive to how fairly they have been treated by other people such as authority figures Answer: TRUE Diff: Page Ref: 37 LO: 9) An employee is less likely to accept a lower-than-expected pay increase if it is preceded by a poor performance rating Answer: FALSE Diff: Page Ref: 37 LO: 10) The practice of gathering and processing information in an effort to figure out how fairly we are treated is called fairness monitoring Answer: TRUE Diff: Page Ref: 37 LO: Managing Behavior in Organizations, 6e (Greenberg) CVC 8/1/2012 Page 15 Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 11) When employees are given full information about an upcoming pay freeze, they are more likely to start looking for a new job Answer: FALSE Diff: Page Ref: 37 LO: 12) When managers use bureaucratic controls, employees are likely to monitor by procedural justice Answer: TRUE Diff: Page Ref: 38 LO: 13) Scientists have found that there is no biological basis to peoplesʹ reactions to fairness Answer: FALSE Diff: Page Ref: 39 LO: 14) Ethics is about standards of conduct, not moral values Answer: TRUE Diff: Page Ref: 42 LO: 15) The Foreign Corrupt Practices Act of 1991 prohibits U.S employers from hiring undocumented workers Answer: FALSE Diff: Page Ref: 44 LO: 16) The Sarbanes-Oxley Act was passed in 2002 in response to accounting scandals such as what occurred at Enron It initiated reforms in the standards by which public companies report accounting data Answer: TRUE Diff: Page Ref: 44 LO: 17) According to Kohlberg, the majority of adults what is right in order to avoid punishment Answer: FALSE Diff: Page Ref: 46 LO: 18) People at the conventional level of moral development determine what is right and wrong in terms of complex philosophical principles of duty, justice, and rights Answer: FALSE Diff: Page Ref: 46 LO: 19) The behavior of people at the postconventional level of moral development judge what is right and wrong in terms of what is good for society as a whole Answer: FALSE Diff: Page Ref: 47 LO: 20) The ʺMadison Avenueʺ mentality suggests that anything is right if the public can be made to see it as right Answer: TRUE Diff: Page Ref: 47 LO: Managing Behavior in Organizations, 6e (Greenberg) CVC 8/1/2012 Page 16 Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 21) The purpose of a code of ethics is to assess the morality of a companyʹs behavior in order to identify irregularities Answer: FALSE Diff: Page Ref: 49 LO: 22) By themselves, codes of ethics have only limited effectiveness in regulating ethical behavior in organizations Answer: TRUE Diff: Page Ref: 50 LO: 23) Corporate responsibility is not concerned with legal requirements and respect for individuals It concentrates instead on the well-being of the community at large and the environment Answer: FALSE Diff: Page Ref: 54 LO: 24) Although ʺdoing well by doing goodʺ is a popular idea, there is no consistent evidence that socially responsible companies perform better than those that are less socially responsible Answer: TRUE Diff: Page Ref: 56 LO: 25) The virtuous circle suggests that socially responsible companies perform well financially because they are supported by customers and investors As a result, they become wealthier and even more philanthropic Answer: TRUE Diff: Page Ref: 57 LO: 2.3 Essay Questions 1) Distinguish among the following: justice, moral values, ethics, and social responsibility as they apply to managerial decision making Answer: Organizational justice is the study of peopleʹs perceptions of fairness in organizations Managers need to be concerned with how decisions are made and the manner in which they are communicated Moral values refer to peopleʹs fundamental beliefs in what is right and wrong Moral values often are based on someoneʹs religious background It is not the role of management to teach morality Ethics refers to standards of conduct that guide peopleʹs decisions and behavior Management needs to establish standards of ethical behavior, train the employees, and monitor compliance Social responsibility refers to organizational decisions that exceed ethical, legal, and public expectations It often involves philanthropic activities to serve the wider community Diff: Page Ref: 33-57 LO: 1,3,6 2) Assume that you are a plant manager of an automobile parts manufacturer, and you have been directed to lay off 20 employees With reference to the discussion of organizational justice, how should you achieve this? Answer: Organizational justice addresses the perceived fairness of how these decisions are made As manager, you need to consider employeesʹ level of satisfaction with the outcome -how they feel about the decisions concerning who is laid off and who is retained (distributive justice) Employees also are concerned about the fairness with how the decisions are made -are they random, or based on performance, length of service, favoritism, or nepotism (procedural justice)? Interpersonal justice refers to how the employees are treated during the process People tend to accept adverse decisions if they have positive feelings about their employers and supervisors Informational justice refers to the employeesʹ perceptions of the fairness of the information used as the basis for making the decisions If, for example, the decisions are based on merit, they believe that the appraisal procedure gives a fair measure of performance? Diff: Page Ref: 39-40 LO: 3) Do you believe that good ethics is good business? Explain your answer Answer: People promoting ethical behavior in business argue that ethical decision making is good for business Benefits of being ethical include: Improved financial performance: People prefer to deal with ethical organizations Reduced operating costs: Efforts to protect the natural environment also help save money Enhanced corporate reputation: Customers are loyal to businesses perceived as being ethical Increased ability to attract and retain employees: People like to feel proud of where they work Diff: Page Ref: 43-44 LO: 4) You have been appointed chair of a task force created to establish an ethics program for your corporation What should be included in this program? Answer: The task force needs to develop a code of ethics describing what the organization stands for and the general rules of conduct expected of its employees Training programs should be developed to reinforce the corporationʹs ethical values An ethics audit should be conducted to investigate and document incidents of dubious ethical conduct The corporation needs to appoint an ethics officer, a high-ranking organizational official who is expected to ensure ethical conduct throughout the organization Finally, the task force should establish a mechanism for communicating ethical standards to all employees Diff: Page Ref: 49-50 LO: 5) Some have argued that the only responsibility for management is to make as much money as possible for the shareholders Others argue that a corporation has an obligation to be socially responsible How would you respond? Answer: Organizations need to obey the law and to act ethically Corporate social responsibility involves more Advocates claim that an organization has an obligation to the community in which it operates -locally, nationally, and/or globally This may include such activities as developing environmentally-friendly products and contributing to philanthropic causes It has been suggested that socially responsible companies perform well financially due to the ʺvirtual circle,ʺ whereby they attract customers and investors Diff: Page Ref: 56-57 LO: