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| people who have an interest, claim, or stake in an organization, in what it does, and in how well it performs |
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| People who are closest to an organization and have the strongest or most direct claim on organizational resources: shareholders, managers, and the workforce |
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| owners of the organization, and, as such, their claim on organizational resources is often considered superior to the claims of other inside stakeholders |
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| employees responsible for coordinating organizational resources and ensuring that an organization's goals are met successfully |
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| An organization's _____ consists of all non-managerial employees |
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| In 2009, a major nationwide outbreak of _____ poisoning was traced by the Food and Drug Administration (FDA) to the peanut butter produced by the Blakely plant of PCA. PCA's contaminated peanut butter had caused over 600 illnesses, nine deaths, and the largest ever food recall in the country. This led to its closure |
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| Parnell was worried about maximizing his profits, especially when prices of peanut products had started to fall. He used contaminated peanuts and avoided salmonella tests to reduce his _____ costs |
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| people who do not own the organization and are not employed by it, but they d have some claim on or interest in it |
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| Customers are the _____ outside stakeholder group |
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| contribute to the organization by providing reliable raw materials and component parts that allow the organization to reduce uncertainty in its technical or production operations and thus reduce production costs |
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| contributes to organizations by standardizing rules |
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| _____ unions directly impact a company's productivity and effectiveness |
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| _____ communities have a stake in the performance of organizations because employment, housing, and the general economic well-being of a community are strongly affected by the success or failure of local businesses |
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| The _____ _____ is happy when organizations compete effectively against overseas rivals as the present and future wealth of a nation is closely related to the success of its business organizations and economic institutions |
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| Investigations revealed that the 2005 explosion occurred because BP had relaxed _____ procedures at its Texas City refinery to reduce _____ costs |
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| After the _____ accident, BP's board of directors decided to move quickly. They fired the CEO and man other top managers and appointed a new CEO, who was instructed to make global refinery safety a key organizational priority. The board also decided to make a substantial portion of the future stock bonuses for the CEO and other top managers dependent on BP's future safety record. Additionally, the board committed over $5 billion to improving safety across the company's global operations |
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| An organization's choice of goals has _____ and _____ implications |
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| _____ allocation is important because it motivates stakeholders, yet is difficult to determine the distribution of excess rewards |
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| the power to hold people accountable for what they do |
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| directors who hold offices in a company's formal hierarchy; they are full-time employees of the corporation |
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| Not employees of the company; many are professional directors who hold positions on the board of many companies, or they are executives of other companies who sit on other companies' boards |
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| the person ultimately responsible for setting organizational strategy and policy |
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| A _____ _____ is held by managers who have direct responsibility for the production of goods and services |
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| A _____ _____ is held by managers who are in charge of a specific organizational function such as sales or R&D |
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| determine policies for the divisions they run instead of objectives for the organization as a whole |
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| In charge of a certain function, like marketing or finance. Responsible for developing capabilities in their area that lead to core competences |
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| a problem in determining managerial accountability that arises when delegating authority to managers |
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| Two conditions lead to the existence of a _____ _____: (1) a principal finds it very difficult to evaluate how well the agent has performed because the agent possesses an information advantage, and (2) the agent has an incentive to pursue goals and objectives that are different from the principal's |
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| forms of control that align the interests of principal and agent so both parties have an incentive to work together to maximize organizational effectiveness |
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| Stock-based _____ schemes are monetary rewards in the form of stocks or stock options that are linked to the company's performance |
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| One way of linking rewards to performance over the long term is by developing organizational career paths that allow managers to rise to the top of the organization |
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| promotion tournaments and career paths |
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| the inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the "right" or appropriate way to behave |
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| situation when one must decide whether or not they should act in a way that benefits someone else, even if it harms others and isn't in their own interest |
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| The society as a whole, using the _____ and _____ processes, creates, passes, and enforces laws that specify what people and organizations can and cannot do along with sanctions and punishments for the same |
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| utilitarian, moral rights, justice |
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| codified in a society's legal system, in its customs and practices, and in the unwritten norms and values that people use to interact with each other |
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| moral rules and values that a group of people use to control the way they perform a task or use resources |
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| personal and moral standards used by individuals to structure their interactions with other people |
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| _____ laws and rules emerge to control self-interested behavior by individuals and organizations that threatens society's collective interests |
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| obtained from such sources as family and friends, places of worship, education, professional training, and organizations of all kinds |
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| Individuals face ethical issues when they weigh _____ interests against the impact of their actions on others |
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| Many studies have shown that the likelihood of a person's engaging in unethical or criminal behavior is much greater when _____ _____ exists for that person to do so |
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| Ethical people _____ an ethical organization |
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| If employees feel helpless to prevent an unethical act or are afraid to discuss ethical concerns, they may confide in an outside person or agency through an act called _____-_____, which can be made acceptable in an organization |
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| The values, rules, and norms that define an organization's ethical position are part of _____ |
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| Unethical behavior makes a company a _____ investment, hurts a company's _____, and _____ its stock price |
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| riskier, reputation, lowers |
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| Imagine that an organization has much more profit at the end of the year than originally forecasted. What would each stakeholder group want to do with the profits? For example, employees would want a bonus, shareholders would want a dividend, customers would like to see reduced prices, etc. This is a good way to illustrate how _____ groups will view the same issue |
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| The role of the _____-management team is to set strategy for the corporation as a whole |
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| a problem in determining managerial accountability that arises when delegating authority to managers |
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| Employees have the _____ for their firm to behave ethically because their fortunes are tied up with that of the organization |
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| Supermarket employees can engage in a range of unethical behaviors. They can distort figures in the inventories, approve goods beyond their date of expiry, bill unsuspecting consumers for more products than they have bought, and use adulterated goods and sub-standard units of measurements |
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| Based on this discussion, identify three standards or values that you will incorporate into the supermarket's ethical code to help determine whether a behavior is ethical or unethical |
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| quality, honesty, value for money |
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