...Responsibility/Environmental Sustainability 1) Many people consider it unethical for a firm to be socially irresponsible. Answer: TRUE Diff: 1 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 2) Social responsibility refers to actions an organization takes that are legally required to protect or enhance the well-being of living things. Answer: FALSE Diff: 2 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 3) Sustainability refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment. Answer: TRUE Diff: 1 Page Ref: 310 Objective: 10.05 Discuss specific ways that firms can be good stewards of the natural environment. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 4) Good ethics is not a prerequisite for good strategic management. Answer: FALSE Diff: 2 Page Ref: 311 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss...
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...Saad Rauf Rathore 5 December 2010 Should Businesses Behave Ethically? According to a study on ethics by the Santa Clara University, a number of years ago sociologist Raymond Baumhart conducted a survey asking people about what they think of ethics. The results showed many people linking ethics to their feelings, their religion and standards set by the society (Manuel et al, para. 2). Manuel Velasquez and other authors of an article published by the Santa Clara University on business ethics pointed out flaws in the responses. They believed that feelings sometimes deviate from ethics because a person may feel to do something that is not right (Manuel et al, para. 4). Moreover, they argued that most religions advocate high ethical standards, yet these standards cannot be identified with religion because if they were, they would have only applied to religious people (Manuel et al, para. 5). Finally, saying that ethics are standards that a society set was proved wrong as the standards of behavior in a society can diverge from ethics, considering Nazi Germany which was a society that became morally corrupt (Manuel et al.). This was what ethics are not. Then, what are ethics? Ethics are the well founded standards that are backed up by consistent and well founded reasons. These standards include rights, obligations, honesty, fairness, benefit to society or specific virtues. For example, the rights may include right to life and right to freedom whereas reasonable obligations may...
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...view: in one side, there is Philip Anderson, the Phoenix branch manager of Stuart & Co., who manages a team with his ways, his idea, his experience but the results do not reach the targets fixed by the firm. In the other side, there is the direction of Stuart & Co., which has opposite ideas to Philip Anderson. I will try to analyze the challenges Philip Anderson faces from the point of view of costs of control and considering ethical concerns. Reading this text, we could easily feel that Philip Anderson’s work way is totally opposite to the firm way. The sentence “how far he [Philip Anderson] could bend without breaking” shows the challenge of the alone man is important for him. We could feel Philip’s desire to show ethical concerns are at least as important as costs control. Despite the demand of the branch managers to push specific products to be sold in the aim to improve cost control, Philip Anderson tries to resist managing his team with his way. The results of the man are ethically good but don’t in term of achieving budget targets. The cost control of the firm causes negative attitude, resistance and frustration of Philip Anderson because he does not agree with this control system: by managing cost, some ethical dilemmas created by Philip could be lost that is why he shows such a resistance. Then, we can not say that Philip Anderson is a bad manager. Indeed, by reading the text, despite the new failure of his team which has not reach the targets fixed for...
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...Chapter 1 The Financial Manager and the Firm Learning Objectives 1. Identify the key financial decisions facing the financial manager of any business firm. 2. Identify the basic forms of business organization used in the United States, and review their respective strengths and weaknesses. 3. Describe the typical organization of the financial function in a large corporation. 4. Explain why maximizing the current value of the firm’s stock price is the appropriate goal for management. 5. Discuss how agency conflicts affect the goal of maximizing stockholder wealth. 6. Explain why ethics is an appropriate topic in the study of corporate finance. I. Chapter Outline 1.1 The Role of the Financial Manager A. It’s All about Cash Flows • The financial manager is responsible for making decisions that are in the best interest of the firm’s owners. • A firm generates cash flows by selling the goods and services produced by its productive assets and human capital. After meeting its obligations, the firm can pay the remaining cash, called residual cash flows, to the owners as a cash dividend, or it can keep the money and reinvest the cash in the business. • A firm is unprofitable when it fails to generate sufficient cash flows to pay operating expenses, creditors, and taxes. Firms that are unprofitable over time will be forced into bankruptcy by their creditors. In bankruptcy, the company will be reorganized, or the company’s...
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...priate manner by using footnotes or endnotes. Part 1: The time to write a business plan is midway through the the stage of the entrepreneurial process titled "Developing Successful Business Ideas". It is a mistake to write a business plan too early. The business plan must be substantive enough and have sufficient details about the merits of the new venture to convince the reader that the new business is exciting and should receive support. Much of the detail is accumulated in the feasibility analysis stage of investigating the merits of a potential new venture. With this mind, please answer the following questions: 1. What are the two primary reasons for writing a business plan? A business plan is utilized by a firm internally, and also externally by investors, bankers, etc. Formulating a proper business plan will allow the firm’s founder(s) to produce an extensive feasibility analysis, and help define how the business plans to startup; along with its subsequent operation. Moreover, an eventual operation...
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...kind of responsibilities do businesses have, towards their stakeholder? • Why are these important? Definitions: a) Social responsibilities … are duties that a business owes to those affected by its activities. b) Business ethics … is the influence of values and beliefs upon the conduct and operation of businesses, i.e. about morality and doing ‘what is right’ and not ‘what is wrong’. … “Why is it important that businesses should conduct ethical behavior?”… Businesses are often said to be run for the benefit of their owners, i.e. their “shareholders”. However, other “stakeholders” are also an important part of business decision making because it is argued that businesses have “Social Responsibilities” towards them. As such, businesses should act in a responsible and ethical manner and consider the possible effects of any decisions they make. “So…what kind of social responsibilities do businesses have, towards these stakeholders?” As we should know, businesses do not operate in isolation, they are actually a “part of society” who has an impact upon the lives of those communities in which they operate. And therefore… *** A firm which is ethical with regard to the society as a whole and the community within which it is based might be described as “Socially Responsible”*** Here are some examples where firms can show their ethical behaviors, these can be… ✓ …To their “Customers”: Businesses have responsibilities...
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...organization adopting an ethical approach to management. The purpose of this essay is to compare and contrast the case for and against an organization adopting an ethical approach. This essay will look into the two sides of the argument in depth using relevant theories, examples and case studies. The first part of this essay will look into why an organization adopting an ethical approach to management could ultimately benefit the firm. The essay will look at various strengths that could be achieved by an organization, these theories and ideas will be backed up with possible case studies and real life examples. The second part of this essay will look at the case against a firm adopting an ethical approach to management. Again various reasons will be analyzed and will be backed up using relevant theories, case studies and real life examples. After looking at both sides of the argument this essay hopes to come to a conclusion perhaps suggesting that it would be important for organizations to act ethically to a certain extent. Before going into the first side of the argument it will be important to define what is meant by an ‘ethical approach to management’, so this section of the essay will compare and contrast various definitions. One definition suggests that ‘ethics are the moral principles that should underpin decision-making. A decision made on ethics might reject the most profitable solution in favour of one of greater benefit to society as well as the firm’ (Marcouse, 2003)...
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... investors, managers, and other users of the financial reports rely heavily on the financial statements of a company in order to make some big decisions and investments. And in the current business world, due to more and more business frauds and corporate collapses came out, attention has been drawn to ethical standards accepted within the accounting profession. In China, I often heard about that many companies act in some immoral ways, for example, preparing three books, overstating/understating their assets or net income, overstating the cost of inventory, and so on. The companies which misstate or hide some financial information may bring some substantial benefits to them in a temporary short time. This is the most obvious reason for the accounting frauds. As far as I know, preparing three books is the most common problem in many small companies. When they want to get a loan from the bank in order to make new investments or enlarge the productivity, they may try to overstate their net income to show that their profitability is good. Small companies often need some fresh money to keep their business running well, so this is why the first book exists in many small firms. In addition, when the taxation time, most companies would like to understate their net income to reduce their tax. In this situation, the accountants would usually...
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...Ethics What is ethics and why is it important to an organization? Ethics commonly refers to a set of rules or principles that define right and wrong conduct. (Robbins, Decenzo, and Coulter, 2012.) Ethics came from human societies when people started living together and then standards started to take place. Ethics also filtered into organizations and it is steadily on the rise and also contributes to a very important factor in the workforce. Ethics can have positive or negative outcome, therefore managers must decide on what action to take in various situations. It is important that organizations encourage ethical behavior because it plays a key role to creditability and leads to an increase of support in the workplace. In this essay, it will discuss managing ethics in the workplace, examples of unethical behaviors, and the key roles and responsibilities in ethics management. Managing Ethics in the Workplace In regard to managing ethics in the workplace, managers tend to focus on deliverables with measurements. For example, ethics programs can include deliverables such as codes, policies and procedures, budget items, training, or newsletters, these practices are implemented because they create appropriate behaviors. An important factor to management practice is the outcome of the behavior preferred by the organization. The ingredient for remaining ethical is trying to be ethical. Therefore, in managing ethics in the workplace, managers and employees should continue...
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...focuses on identifying and understanding the sources of superior firm performance. This course introduces theoretical concepts and frameworks useful for analyzing the external and internal environment of the firm, and guiding the formulation and execution of different types of strategies. Strategic issues are examined from the perspective of a chief executive or general manager, focusing on how one can formulate effective strategies and develop the necessary resources and capabilities to achieve sustainable competitive advantage in a global and volatile competitive environment. Learning Goals At the end of this Course, students should be able to: synthesize information to recognize the external opportunities and threats as well as the internal strengths and weaknesses that impact a firm’s competitive advantage. critically evaluate how a business, corporate and/or international strategy would lead to sustainable competitive advantage. analyze complex and dynamic interdependencies among strategic issues. identify ethical issues and exhibit informed ethical judgment when faced with an ethical decision. Learning and Teaching Methods This course is structured in a seminar learning format, where a 4-hour seminar is conducted every week for a total of 13 sessions. Each seminar is intended to inform and equip students with the conceptual tools to synthesize, evaluate and analyze strategic issues with an ethical grounding. In addition, seminar activities have been developed...
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...affect how much you can purchase for your family and what is available for you to purchase for your family. 3. What are the fundamental elements of the free market economic system? How can businesses thrive within this system? 1. The rights to own a business and keep after-tax profits 2. The right to private property 3. The right to free choice 4. The right to fair competition Free Market economies allows businesses to thrive by allowing owners to keep the profits, encouraging growth. 4. Describe the 4 degrees of competition within the free market system. Offer 2 to 3 examples of each type of competition by filling in the chart. Pure Competition: A market structure in which a very large number of firms sell a standardized product into which the is very easy in which the...
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...1. What are the relevant FACTS - Jason Tybell, who has been employed as a junior accountant by Rodgers & Philips for two years, received high evaluation from his seniors. Jason was complained by one of the clients that he served because he made inappropriate comments in meetings with the client personnel and made a controller furious. Because of the fact, Jason was not asked to work for the clients that he did work on during his first year. It is unsure how this incident affects his future career yet. 2. Frame the Ethical Issue – Is this really all Jason’s fault and he should be blamed for the incident? 3. Identify the Stakeholders and their obligations – Who are ALL the people/entities who will be effected by whatever decision is made? Jason Tybell---has a right to be treated fairly, evaluated by the firm and counseled by his mentor n an honest and open manner. He should serve respectfully. William Jackson---as Jason’s mentor, he should treat him fairly, and advise him how he should act to operate to perform properly. Jason’s senior--- should evaluate the performance prudently. The clients---have a right to expect high quality performance from auditors. Company---should prepare reliable evaluation system and give honest evaluations to every employee. 4. Identify the relevant accounting ethics standards - feel free to about how “due care,” “honesty,” “integrity,” “objectivity and independence” all come into play. Due care in carrying out...
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...Which is the more important corporate objective: making a profit or obtaining and keeping customers? When customers believe they can no longer trust a company or that the company is not acting responsibly, they will no longer support that company by purchasing its products or services or investing in its stock. For marketers, the firm’s ability to build and maintain consumer trust by conducting ethical transactions must be of paramount importance. THE SCOPE OF MARKETING ETHICS Business ethics refers to the moral or ethical dilemmas that might arise in a business setting. Marketing ethics, in contrast, examines those ethical problems that are specific to the domain of marketing. Firm’s attempts to apply sound ethical principles must be a continuous and dynamic process. Anyone involved in marketing must recognize the ethical implications of their actions. ETCHICAL ISSUES ASSOCIATED WITH MARKETING DECISIONS People in marketing interact directly with the public. Creating an ethical climate that establishes the health and well-being of consumers as the firm’s number one priority just makes good business sense. Creating an Ethical Climate in the Workplace The process of creating a strong ethical climate within a marketing firm includes having a set of values that guides decision making and behaviour. Once the values are understood, the firm must develop explicit rules and implicit understandings that govern all the firm’s transactions. Top management must commit to establishing...
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...Ethics: Why is it Essential in Management? Michael Perez Dr. Marie Harper MGMT 618 28 February 2016 Abstract Ethics is a subject that most people or companies tend to avoid due to the complications that tend to arise when it is brought up. Though ethics can be a sensitive subject it is very important in life, business and especially in management. Managerial ethics is something that companies say they have when it comes to how they do business but are there managers really ethical or are they just looking the other way when it comes to ethical issues that might arise within their company. Keywords: Ethics, Management Ethics: Why is it Essential in Management? When it comes to ethics in management it is essential for business to have, but most of the time it is just a way for businesses to check off the box saying “My business has ethical leaders”. This can be said for companies, branches of the military and people that hold a position over other people. As Marshall Schminke states in his book, Managerial Ethics Managing the Psychology of Morality, Ethics is not something that can be taken lightly due to the fact that it is something that holds great value when it comes to how people see a leader or manager. Though it may be hard for companies to say yes all of my managers are ethical it is something that is an ongoing process within companies (Schiminke, 2011). Ethical Leadership When it comes to management nowadays it has many issues that affect the way business...
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...main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their products. According to roger D, martin auditors face ethics issues from two perspectives among which one is well known and other being known and appreciated by the people who are familiar with auditors knowing their work and responsibility. The prospective of this is to deal among the ethical foundation of the auditing profession and to show the integrity and get appreciated with the job they do. This indicates ethics prospective as seeking within their profession on how to manage and achieve their targets with no difficulty. The other prospective, which the auditors face, is to understand and get the solution for the current and new clients. This is generally referred as an assessment, which demands a complete attention and understanding of ethics, ethical infrastructure and the solution of that infrastructure. This essay will give a complete picture on why ethics is important to the auditors and how significant is the contribution of auditors is to the effective corporate governance of large Uk companies. According to Ghazala saeed, ethics is derived from the Greek word Ethikos which defines it as custom and habits. Ethical standards are always presented in the profession way which basically aim...
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