Know Your Stakeholders
What stakeholder provides labor and expects wages and benefits in return?
Employees
What is the top manager responsible for a company's overall direction and strategy?
CEO
What are the three sources of organizational ethics?
Societal, Professional, and Individual Ethics
What term refers to outside stakeholder forces, such as customers and suppliers, that directly affect an organization's ability to obtain resources?
Specific environment
What theory says organizations try to reduce their dependence on other organizations for important resources?
Resource Dependence Theory
What are the 2 main things stakeholders provide to and receive from an organization?
Contributions and Inducements
A production manager directly responsible for manufacturing cars has what type of managerial role?
Line role
What type of ethics comes from the standards of a particular occupation or profession?
Professional Ethics
Which dimension of environmental uncertainty measures how quickly environmental forces change over time?
Environmental dynamism
HP needs chips from Intel, while Intel needs HP as a customer. What type of resource interdependence exists between them?
Symbiotic interdependence
What is the term for the benefits or resources that stakeholders provide to an organization?
Contribution
In agency theory, what are shareholders and managers respectively called?
Principal and Agent
What is the conflict of choice is called when a person must decide whether to act in a way that benefits someone but may harm others?
Ethical Dilemma
What term describes forces such as interest rates, laws, demographics, and global competition that affect organizations more broadly?
General environment
A company wants to secure its supply for several years while remaining independent of its supplier. Which type of strategic alliance would be most appropriate?
Long-term contract
Employees want higher salaries, while shareholders want lower costs and higher profits. What problem does this demonstrate?
Conflicting stakeholder interests
A manager approves an expensive project mainly to increase their own reputation and power, while shareholders cannot easily monitor the decision. What problem is this?
Moral Hazard
Ethical behavior is important because it helps an organization build what with its stakeholders?
Trust
A company must deal with thousands of suppliers, competitors, customers, and government agencies that are highly interconnected. Which dimension of environmental uncertainty is high?
Environmental complexity
A supplier invests €100 million in machinery that can only produce components for one particular customer. What type of investment is this, and what happens to transaction costs?
A specific asset: transaction costs increase.
Shareholders want higher profits today, while managers want to invest heavily in R&D for future growth. What concept does this demonstrate?
Competing goals
A manager uses company resources for their own personal benefit rather than for the benefit of stakeholders. What is this behavior called?
Self-dealing
A company has rules and systems promoting ethical behavior, but employees still commonly behave unethically because such behavior is considered normal. What is the company lacking?
An ethical culture
An industry has intense competition and very few resources available to support organizations. Which environmental dimension is low?
Environmental richness
A company wants greater control over an important supplier but does not want the high bureaucratic costs of completely acquiring it. It decides to purchase a small ownership stake in the supplier. What type of relationship is this?
Minority ownership (and when used within a group of closely connected firms with cross-shareholdings, it can form a keiretsu).