Despite Recent Pressure from Stockholders to Increase Profits,a Global Petroleum

question 58

True/False

Despite recent pressure from stockholders to increase profits,a global petroleum organization has maintained a practice of consistently acting ethically by being a good global corporate citizen,taking host-country and global standards into consideration when making decisions,and obeying the law of host countries as well as international law.This is an example of a company acting socially responsible.B.Carroll,corporate social responsibility rests at the top of a pyramid of a corporation's obligations,right up there with economic,legal,and ethical obligations.Carroll suggests the responsibilities of an organization in the global economy should take the following priorities,with profit being the most fundamental (base of the pyramid)and corporate citizenship at the top: (1)Be a good global corporate citizen,as defined by the host country's expectations; (2)be ethical in its practices,taking host-country and global standards into consideration; (3)obey the law of host countries as well as international law;and (4)make a profit consistent with expectations for international business.

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Definitions:

Risky Shift

A phenomenon in group decision-making processes where groups tend to make riskier decisions compared to individuals.

Non-Directive Group Leader

A leader who takes a passive role, encouraging group members to lead discussions and make decisions, thereby fostering autonomy and self-direction.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

High-Performing Executives

Senior managers or directors in an organization known for exceptional achievement and productivity.