True or false? A company's strategy needs to be ethical because a strategy that is unethical not...
Question:
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.
Strategic Management:
Strategic management is the development and implementation of a plan that is required to achieve the organization's objectives. These strategies are devised based on a thorough analysis and assessment of market conditions.
Answer and Explanation:
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View this answerThe given statement is True.
A company's strategy is a road map that guides it to its intended goal. The organization must adhere to suitable...
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Business Ethics & Social Responsibility: Definition & Differences
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Chapter 2 / Lesson 4
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A business is best run when its management takes into consideration ethical operation and observes social responsibility. Learn more about the definition, the differences between ethics and responsibility, and their responsible application in the business world.
Related to this Question
- True or false? A possible consequence of a company pursuing a strategy that has unethical or shady components is devastating public relations hits.
- 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.
- True or false? A possible consequence of a company pursuing a strategy that has unethical or shady components is sizable government fines and penalties.
- True or false? A possible consequence of a company pursuing a strategy that has unethical or shady components is a sharp drop in stock price.
- True or false? Business ethics is based on the premise that every employee is unethical at some point in their career.
- 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.
- True or false? Business ethics is used by ethical people to correct what unethical people do.
- 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.
- Most unethical business actions are based on long-term thinking. (a) True (b) 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.
- Bad ethics can derail all but the best strategic plans. Indicate whether the statement is true or false.
- An ethical environment, or culture, would be one in which employees are expected to act by the rules in spite of unethical conditions. a. True b. False
- Corporate social responsibility is generally considered to be the ethics of a business. A) true B) false
- True or false? The corporate mission is shaped by corporate strategy.
- True or false? The supply chain strategy of a company should be aligned with its business strategy.
- In order for a firm to become highly ethical, it mainly needs corporate credos and codes of conduct. a. True b. False
- True or false? To create a sustainable competitive advantage, a company must have a strategy.
- True or false? A manager is likely to lose the trust of employees if he/she does not abide by the ethical principles of the company.
- 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
- Good ethics is not a prerequisite for good strategic management. Indicate whether the statement is true or false.
- The purpose of a company ethics hotline is usually to give employee suggestions about how far they can go to deceiving customers. 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.
- Companies using a best-cost strategy attempt to get the benefits of a low-cost strategy mixed with the benefits of a differentiation strategy. Indicate whether the statement is true or false.
- True or false? Most businesses follow their industry's code of ethics.
- 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.
- Offering rewards for ethical behavior is a foolproof way to ensure ethical behavior from employees. Indicate whether this statement is true or false.
- 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.
- If a company is pursuing a low-cost strategy, it is important that employees only perform duties specified in their job description. (a) True (b) False.
- In a well-run company, ethics should be considered a "program" rather than a way of doing business. Indicate whether the statement is true or false.
- 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
- Intelligence gathering is an unethical business practice. Indicate whether the statement is true or false.
- True or false? When people violate ethical norms, companies should respond privately and not publicly to retain employee trust.
- True or false? Business ethics can be defined as the application of ethical principles and standards to the actions and decisions of business organizations and the conduct of their personnel.
- If a firm follows a strict code of conduct, then ethical abuses will never occur. True or false
- True or false? Corporate strategy is shaped by functional strategies.
- Ethics, corporate social responsibility, and corporate sustainability are everyone's business, including HR professionals. Indicate whether this statement is true or 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
- In ethics, as in business, there are no easy decisions. A. True B. False
- If a company has a written code of ethics and provides clear instructions to employees, two-way communication is unimportant in maintaining ethical standards. a. True b. False
- True or False: Business strategy operates as a zero-sum game in which one firm's wins represent another firm's losses.
- True or false? All firms within an industry will adopt the same strategy.
- Corporate-level strategy is the most important for achieving a competitive advantage. Indicate whether the statement is true or false.
- TRUE or FALSE 1. If firms in an industry have different brands, then the market is most likely to be characterized by Perfect Competition. 2. By definition, a "dominant strategy" is the strategy of a
- "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.
- 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.
- A firm's competitive position can improve when the firm has a code of ethics. A. True B. False
- A corporate credo is another name for a code of ethics. A. True B. False
- Corporate culture does not necessarily have to support the strategy of the firm. Indicate whether the statement is true or false
- Firms that are successful in pursuing a cost-leadership strategy focus solely on keeping costs low and abandoning other business or corporate strategies. Indicate whether the statement is true or false
- True or false? Ethical principles in business are not materially different from ethical principles in general and have to be judged in the context of society's standards of right and wrong, not by a special set of rules that business people decide to appl
- 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.
- 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.
- A negotiator who employs an unethical tactic will experience a positive consequence. True or false?
- In formulating a strategy for addressing a crisis, as long as a firm has strong brand reputation it need not consider its exposure to liability or response to stakeholders and the public. Indicate whether the statement is true or false
- Ignoring individual qualities puts executives at risk of making unethical, unfair, and sometimes illegal decisions. Indicate whether the statement is true or 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
- While corporate culture influences employees' ethical decisions, managers have little impact on those decisions. a. True b. False
- An example of a company that was "stuck in the middle" is K-Mart as they tried to imitate both Walmart's low-cost strategy and Target's differentiation strategy. Indicate whether the statement is true or false
- If a firm wants to exploit opportunities while withstanding competitive pressures, its strategy must be built on its bureaucracy and structure. 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
- Society pressures a firm's HRM by expecting corporate social responsibility and ethical decision-making. Indicate whether this statement is true or false.
- True or false? Faulty oversight that implicitly allows the overzealous pursuit of personal gain, wealth, and self-interest can give rise to unethical business strategies and behavior.
- Indicate whether the following statement is true or false: A company's code of ethics is a cure for all of its ethical dilemmas.
- True or false? The human resources function in an organization is largely insulated from unethical behaviors.
- Business ethics consist of the fundamental moral values and behavioral standards that form the foundation for the people of an organization as they make decisions and interact with stakeholders. Indicate whether the statement is true or false.
- True or false? Ethical principles in business are arrived at by picking and choosing among the consensus ethical standards of society to come up with a set of ethical standards that apply directly to operating a business.
- Business strategy is a firm's theory of how to gain competitive advantage by operating in several businesses simultaneously. Indicate whether the statement is true or false
- Enron's code of ethics was 10 pages long. A. True B. False
- True or false? HR management must focus on clearly illegal behaviors within the firm and leave ethics up to the conscience of each individual manager.
- Business strategy refers to the choices that a firm makes about its competitive posture. Indicate whether the statement is true or false
- Ethical dilemmas often result from pressure from bosses and superiors. a. True. b. False.
- Indicate whether the statement is true or false. A well-written code of ethics ensures ethical business behaviour.
- True or false? An ethics code categorizes whistleblowers as people who perform illegal or unethical behavior.
- A negative aspect of a low-cost leadership strategy is low customer loyalty. Indicate whether the statement is true or false.
- True or False: Strategy implementation is defined as the process of deciding what a firm should do.
- Unethical practices are limited to Wall Street because of the money and pressure involved. Indicate whether this statement is true or false.
- The utilitarian approach to ethical decision making advocates making decisions based on moral principles rather than on the positive or negative consequences of an action. True or false.
- Whistle-blowing is the process in which an employee informs another responsible employee in the company about potentially unethical behavior. A. True B. False
- A company that is attempting to gain a large share of the market by undercutting the prices of competitors is using a market expansion strategy. Indicate whether the statement is true or false.
- True or false? Company policies identify general company rules.
- Successful dynamic strategies reward firms for avoiding risky decisions. Indicate whether the statement is true or false
- In the marketing strategy portion of the business plan, the entrepreneur should explain the promotional strategy, pricing strategy, and distribution strategy. a. True b. False
- Managers get more confident when the firm has a code of ethics. A. True B. False
- Companies do not have an ethical obligation to inform consumers regarding their products. Indicate whether the statement is true or false.
- CEOs and business owners should delegate the responsibility for ensuring that high ethical principles are espoused and practiced in an organization. Indicate whether the statement is true or false.
- Managers can do a lot to influence employee ethics by carefully cultivating the right norms, leadership, reward systems, and culture. Indicate whether this statement is true or false.
- 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.
- What managers and owners say is more important in determining employee ethical behavior than what they do. a. True b. False
- Emergent strategies are only important when a firm fails to implement the strategic management process effectively. Indicate whether the statement is true or false.
- An important contribution of an ethics training program is to start a useful dialogue about right and wrong that employees could recall when faced with an ethical temptation. Indicate whether the statement is true or false.
- Tacit cooperation is only a viable strategy when an industry is perfectly competitive. 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.
- True or False: One way of measuring whether the ethical principle involved in an action is utilitarianism is "the action taken is justified by its consequences"
- The only way to gain competitive advantage within an industry is to use a competitive strategy. Indicate whether the statement is true or false.
- A psychological contract is a legal document outlining the ethical values of a company. Indicate whether this statement is true or false.
- Lying in the workplace is so frequent that lying is now usually classified as ethical behavior. Indicate whether the statement is true or false.
- A strategy's compatibility with the corporate culture has little likelihood of impacting its success. Indicate whether the statement is true or false
- True or false? Social responsibility strategies work to the advantage of shareholders.
- Those companies using cooperative strategies are generally not able to gain a competitive advantage. A. True B. False
- "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
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