According to research studies, unethical companies financially outperform ethical companies,...
Question:
According to research studies, unethical companies financially outperform ethical companies, although ethical companies are more successful in recruiting. Indicate whether this statement is true or false.
Unethical company:
An unethical company is a company that does not follow ethical practices and is not concerned more about the employees, customers, stakeholders, and shareholders. Unlike an ethical company, it focuses only on achieving profits and growing the business.
Answer and Explanation:
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View this answerThe above statement is false
For a company to be successful, it is very important to follow ethics. Respecting the stakeholders, shareholders,...
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Unethical Behavior in Business: Definition & Examples
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Chapter 27 / Lesson 5
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Learn about unethical business practices with an overview, behaviors, and examples. Discover how these practices upset the order in business dealings and relations.
Related to this Question
- According to a study by the Institute of Business Ethics, companies that do not display ethical conduct consistently outperform companies that show a clear commitment to ethical conduct. Indicate whether the statement is true or false
- Surveys indicate that most companies link employee bonuses to ethical performance. Indicate whether this statement is true or false.
- When firms do not deal swiftly and fairly with the unethical behavior of employees, ethical employees feel penalized. Indicate whether this statement is true or false.
- "The single most important thing the founders of an entrepreneurial venture can do to avoid ethical misconduct is to establish a strong ethical culture for their firms." Indicate whether the statement is true or false.
- Although companies set standards for ethical behavior, the ultimate decision on whether to abide by ethical principles rests with the individual. a. True b. False
- One reason that it is difficult for companies to teach or encourage ethical behaviour is that the character traits that constitute ethical virtues have little value in the world of business. A. True B. False
- An ethical dilemma facing many employee s is whether or not to engage in behavior that is unethical, yet helps the company. Indicate whether the statement is true or false.
- Behavioral ethics experiments conclude that the higher the cost (moral or otherwise) of acting ethically, the less likely is ethical behavior. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. More and more firms believe that ethics training and an ethics culture create strategic advantage.
- "Quietly ethical" executives within the confines of the top management team are likely to be perceived as ethical leaders because they have the support of the top management. a. True b. False
- A firm's competitive position can improve when the firm has a code of ethics. A. True B. False
- In order for a firm to become highly ethical, it mainly needs corporate credos and codes of conduct. a. True b. False
- Very few large companies provide ethics training to create a more ethical climate. a. True b. False
- Corporate social responsibility is generally considered to be the ethics of a business. A) true B) false
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- Ethics, corporate social responsibility, and corporate sustainability are everyone's business, including HR professionals. Indicate whether this statement is true or false.
- Behavioral ethics experiments suggest that relational contracts supported by reciprocity are unlikely to be effective in improving the performance of workers and firms. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. Many people consider it unethical for a firm to be socially irresponsible.
- When a company declares bankruptcy, the actions of top management might readily be considered legal but unethical. Indicate whether the statement is true or false.
- True or false? Business ethics is used by ethical people to correct what unethical people do.
- True or false? Most businesses follow their industry's code of ethics.
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- To cope successfully with the myriad ethical decisions they face, entrepreneurs must develop a workable ethical framework to guide themselves and the organization. Indicate whether the statement is true or false.
- Research indicates that individuals are more likely to make unethical choices when faced with minor dilemmas than with major problems. a. True b. False
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- Entrepreneurs can do whatever they want and that conflictive action taken by entrepreneurs against society's ethical standards does not incur a price. Indicate whether the statement is true or false.
- True or false? Research suggests that firms with a higher level of customer orientation are more successful.
- Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards. a. True b. False
- Unfortunately, employers have no tools for measuring the ethics of an individual during the applicant screening process, so employers do not realize they have hired an unethical person until it is too late. Indicate whether this statement is true or false
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- Companies with highly engaged employees are more likely to be unionized, according to some research. Indicate whether this statement is true or false.
- True or false? A company's strategy needs to be ethical because a strategy that is unethical not only damages the company's reputation, but it also can have costly consequences.
- Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists. Indicate whether the statement is true or false.
- Society pressures a firm's HRM by expecting corporate social responsibility and ethical decision-making. Indicate whether this statement is true or false.
- An ethical dilemma is a situation that involves doing something that is beneficial to oneself or the organization, but may be unethical. Indicate whether the statement is true or false.
- Behavioral ethics experiments conclude that moral suasion can decrease ethical behavior. Indicate whether the statement is true or false
- Managers get more confident when the firm has a code of ethics. A. True B. False
- "The most important thing that any entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization is to hire an aggressive attorney." Indicate whether the statement is true or false.
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- Reliance on the personal integrity of employees is mostly sufficient to ensure ethical conduct, and employees should be allowed to operate in an ethics vacuum. Indicate whether the statement is true or false
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- Firms seek competitive advantage through the quality of their human capital. Indicate whether the statement is true or false
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- A survey indicated that only about five percent of employees have observed unethical conduct on the job. Indicate whether the statement is true or false.
- True or false? Constant heavy pressures on company managers to meet or beat short-term performance targets can give rise to unethical business strategies and behavior.
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- True or false? A possible consequence of a company pursuing a strategy that has unethical or shady components is devastating public relations hits.
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- A company ethical code usually specifies how far employees can go before an unethical act is classified as being illegal. Indicate whether the statement is true or false.
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- Offering rewards for ethical behavior is a foolproof way to ensure ethicality. Indicate whether this statement is true or false.
- A study showed that companies in the top quartile for racial and ethnic diversity tend to have poorer financial results than their competitors with less racial and ethnic diversity. Indicate whether the statement is true or false.
- Monitoring departmental and corporate performance regarding ethical issues can cause firms to misalign ethical and strategic decision making. Indicate whether the statement is true or false.
- Good corporate governance can reduce the risk of unethical and illegal activities. Indicate whether the statement is true or false
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- True or false? Paying attention to ethical issues can pay off for companies, even affecting the stock prices in a positive fashion.
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- According to the universal approach to ethical decision making, if two courses of action have equal moral standing, managers should determine the more ethical course by considering the positive and negative consequences of each one. True or false.
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- If a manager says things like, "Everyone does it" or "I don't get paid to be ethical, I get paid to produce results," he/she is suffering from moral blindness. a. True b. False
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- The difference between ethical and discretionary responsibilities is that few people expect an organization to fulfill ethical responsibilities. Indicate whether the statement is true or false
- True or false? Business ethics is based on the premise that every employee is unethical at some point in their career.
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- True or false? A possible consequence of a company pursuing a strategy that has unethical or shady components is criminal indictments and convictions of company executives.
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- An organizational culture that encourages its managers to engage in severe competition and discourages them from taking risks and innovating is most likely to shape high ethical standards among its members. Indicate whether the statement is true or false.
- Research shows that few firms persist with their competitive advantage over prolonged periods of time. Indicate whether the statement is true or false
- Studies suggest that firms that support their employees' career development are rewarded with employee commitment and longer retention rates. Indicate whether this statement is true or false.
- Employment agencies tend to be expensive, so they are usually not cost-effective for low-level and low-paying jobs. Indicate whether the statement is true or false.
- A code of ethics is a written statement of the standards of behavior and ethical principles a company expects from its employees. Indicate whether the statement is true or false.
- Research suggests that employees underestimate how powerful a motivator pay is to them. Indicate whether this statement is true or false.
- Successful companies need human resources to only be involved in hiring processes because involvement by human resources in other functions reduces efficiency and increases costs. (a) True (b) False.
- Seemingly minor ethical and questionable actions can catapult these days into huge public relations problems for companies as a result of the monumental online social and business communications. Indicate whether the statement is true or false
- Indicate whether the following statement is true or false: Although a company can better match employees with jobs they like, staffing does not influence organizational performance.
- Colleges, universities, vocational schools, and competing firms are types of recruitment sources. Indicate whether this statement is true or false.
- By creating a sustainable cost gap over rivals, firms earn above industry-average profits. Indicate whether the statement is true or false.
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- Indicate whether the statement is true or false. Research indicates that when faced with a question of ethics, managers tend to ignore codes of ethics and try to solve their dilemma on their own.
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- Most venture capitalist companies prefer to finance start-up companies to maximize their return. a. True b. False
- Strong cultures are always good cultures as they guide their employees toward the most successful organizational outcomes. Indicate whether this statement is true or false.
- True or false? A possible consequence of a company pursuing a strategy that has unethical or shady components is sizable government fines and penalties.
- In 2005, the number one reason why managers tried to make sure their firms operated in an ethical manner was because it was the right thing to do. a. True b. False
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