Bus 100

The most important agreement which codifies human rights is the

. A.The Universal Declaration of Human Rights. B. The U.S. Declaration of Independence. C. The American Civil Liberties Act. D. The Versailles Treaty. A

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally it is called:

A Corporate Social Responsibility. B. Global Sustainability. C. Community Investing. D. Global Corporate Citizenship. D

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A. A military dictatorship. B. A central state control system. C. A political control system. D. A social democracy. B

Which of the following is not an instance of "insider trading"?

A. A stock broker passing an "inside tip" to a client, but not trading for his or her own account. B. A marketing executive briefing stock analysts on the company's sales performance. C. An auditor using nonpublic information about the company to invest in its stock. D. The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company. B

Why does a diverse and inclusive workforce benefit a firm supporting a global market?

A. A variety of language skills serves the global customer base well. B. Cultural insensitivity helps to retain customers. C. Understanding differences across markets restricts innovation. D. Both A and C, but not B. A

Which statement is not correct about business-society interdependence?

A. Actions by governments rarely affect business. B. Business activities impact other activities in society. C. Business is a part of society. D. Business is separated from the rest of society by clear boundaries A

Customers can exercise economic stakeholder power by:

A. Applying for a job with the company. B. Boycotting products if they believe the goods are too expensive. C. Voting on a proposed merger for the company and a competitor. D. Attending the company's annual meeting. B

Businesses promote an information strategy by inviting government leaders to:

A. Attend company award ceremonies. B. Give speeches to employees. C. Visit local plant facilities. D. All of the above. D

The primary reason that governments try to keep pace with technology is to:

A. Avoid threats to individuals. B. Control the speed of innovation. C. Ensure that the public is protected. D. Manage the cost of technology. C

Microfinance refers to:

A. Banks lending money to a very small number of businesses. B. Banks lending money to low-income businesses. C. Banks charging low fees for all business loans. D. Banks lending very small amounts of money to wealthy businesses. B

The "right to be heard" assures that consumers' interests will:

A. Be protected against fraudulent or misleading information. B. Receive full and sympathetic consideration. C. Be given all the facts to make an informed choice. D. Be assured satisfactory quality and service at a fair price. B

The issues management process is a

A. Beneficial tool used only to maximize the positive effects of a public issue for the organization's advantage. B. Confusing process that is rarely used to help top management within an organization. C. Systematic process companies use when responding to public issues that are of greatest importance to the business. D. Beneficial tool used only to minimize the negative effects of a public issue for the organization's advantage. C

Which of the following statements is not true about the interactive social system?

A. Business and society are both separate and connected. B. Business and society need, as well as influence, each other C. The boundary between business and society is clear and distinct. D. Business is a part of society, and society penetrates far and often into the business. C

Reasons for the destruction of rain forests include:

A. Commercial logging. B. Conversion of forests to plantations. C. Cattle ranching. D. All of the above. D

Which of these actions can businesses take to reduce income inequality?

A. Commit to paying a living wage to all employees. B. Adjust minimum wage laws to increase worker pay. C. Provide very high executive compensation. D. Implement new tax policy that benefits employee. A

The board committee that administers and approves salaries and benefits of high-level managers in a company is called the:

A. Compensation committee. B. Nominating committee. C. Human resources committee. D. Executive committee. A

Cross-cultural contradictions arise due to:

A. Differences between home and host countries' ethical standards. B. The emergence of a developing country's economic power. C. Religious differences practiced by business executives. D. All of the above. A

As a stakeholder, suppliers' interests include:

A. Earning income. B. Utilizing productive capacity efficiently. C. Building short-term, but profitable, business relationships. D. Both A and B, but not C. D

Most U.S. state laws permit the monitoring of employees through:

A. Eavesdropping on phone calls. B. Tracking software. C. Recording computer keystrokes. D. All of the above. D

Over time, the nature of business's relationship with its stakeholders often:

A. Evolves through a series of stages. B. Remains static. C. Becomes more hostile. D. None of the above. A

Cybersecurity experts recommend including which essential elements for an incident-response plan for cyberattacks?

A. Focus on how to respond to a breach. B. Involvement by all functional departments. C. Support from executive leadership. D. All of the above. D

Sustainable development:

A. Gives precedence to present needs over future needs. B. Gives precedence to environmental over economic considerations. C. Balances economic and environmental considerations. D. Meets the needs of the present while compromising the ability of future generations to meet their own needs. C

An individual who is a supporter of globalization would argue that it helps the developing world by:

A. Giving entrepreneurs access to foreign investment funds to support economic development. B. Allowing new ideas and technological innovations to spread quickly. C. Providing people in developing countries with more jobs. D. All of the above. D

To influence government policymakers' actions, an information strategy involves:

A. Government policymakers hiring special interest groups for fact-finding projects. B. Business leaders speaking before government policymakers. C. Gaining support from other affected organizations. D. Businesses listening to government policymakers in order to develop a corporate strategy. B

When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called:

A. Government stop-orders. B. Economic Sanctions. C. Political sanctions. D. Government bailouts B

According to a recent survey of supply chain managers, which of these social and environmental issues was the most important?

A. Health and safety. B. Supplier diversity C. Ethical issues D. Energy efficiency. A

Corporations that run their operations according to the stakeholder theory of the firm create value by:

A. Increasing their stock price. B. Developing their employees' professional skills. C. Innovating new products. D. All of the above. B

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

A. Industry action standards. B. Code of regulation. C. Consumer affairs doctrine. D. Voluntary industry codes of conduct. D

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

A. Industry self-regulation. B. Business privacy regulation. C. Consumer self-help. D. Privacy legislation. A

Which of the following arguments supports the concept of high executive compensation?

A. Inflated executive pay helps U.S. firms compete with foreign rivals. B. There is currently a surplus of qualified executive candidates. C. High executive pay drives away talented middle managers who feel unfairly compensated. D. High salaries provide an incentive for innovation and risk-taking. D

Investors may receive an economic benefit from the ownership of stock by receiving:

A. Interest. B. Dividends. C. Capital gains. D. Both B and C, but not A. D

Contemporary issue management:

A. Is an interactive, forward thinking process. B. Is a linear process. C. Is used by all government agencies. D. Was useful in the 1970s, but not today. A

The main drawback to utilitarian reasoning is that:

A. It is difficult to accurately measure both costs and benefits. B. Cost-benefit calculations can only be provided by accountants. C. Managers using this reasoning process often fail to consider the means taken to reach the end. D. The majority may override the rights of those in the minority. A

Which of the following is an argument against affirmative action?

A. It violates individuals' basic human rights. B. It costs American businesses too much money. C. It is inconsistent with the principles of fairness and equality. D. There are no mechanisms in place to verify that it is actually taking place. C

The information strategy tool most used by business is:

A. Legal challenges. B. Direct communication. C. Political contributions. D. Lobbying. D

Which of the following is not a constituency-building strategy tool?

A. Legal challenges. B. Expert witness testimony. C. Advocacy advertising. D. Public relations B

Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions?

A. Legally marketing a pesticide abroad that has been banned in the U.S. B. Hiring child workers in violation of civil law. C. Circumventing government regulations to ensure company profits. D. False and misleading advertising claims. A

Social investors seek to eliminate from their investment portfolios companies that:

A. Make dangerous products like tobacco or weapons. B. Pollute the environment. C. Discriminate against employees. D. All of the above. D

M-Commerce is facilitated primarily by:

A. Mobile or cell phones. B. Personal computers. C. The government. D. Lap-tops. A

Dark money refers to:

A. Money collected illegally by PACs. B. Anonymous contributions to for-profit organizations. C. Undisclosed contributions to tax-exempt organizations. D. Soft money. C

Proactive companies are:

A. Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder. B. Much less likely to be blindsided by crises and negative surprises. C. Just as likely to be blindsided by crises and negative surprises. D. Much more likely to be blindsided by crises and negative surprises. B

Employees in the United States have a legal right to:

A. Organize and bargain collectively. B. A safe and healthy workplace. C. A job. D. Both A and B, but not C D

A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is:

A. Oxygen. B. Ozone. C. Carbon dioxide. D. Methane. B

The practice of using fake business emails in order to trick users into divulging personal data, such as usernames and passwords, is called:

A. Phishing. B. Pharming. C. Censorship. D. Tweeting. A

Which stage of corporate environmental responsibility focuses on the full life cycle of a product?

A. Pollution prevention stage. B. Green management stage. C. Product stewardship stage. D. Clean technology stage. C

The theory of comparative advantage states that:

A. Productivity decreases when countries produce goods and services based on their natural resources. B. Productivity rises more quickly when countries produce goods and services for which they have a natural talent. C. Countries that operate under a policy of isolationism have a comparative advantage. D. All countries start out on an equal playing field. B

The mission of the Securities and Exchange Commission (SEC) is to:

A. Protect shareholders' rights by making sure that stock markets are run fairly. B. Ensure that institutional investors do not take control of company management. C. Ensure that the federal treasury receives its share of the revenues from stock trading. D. Protect companies from hostile takeovers. A

Intellectual property refers to:

A. Protecting one's ideas, concepts, and symbolic creations. B. Prohibiting the downloading of commercial software or videogames. C. Special laws protecting copyrights, patents, and trademarks. D. All of the above. D

What kind of power might a local community use to influence a company's decisions?

A. Publicizing an issue. B. Challenging whether a business activity should continue to operate. C. Lobbying government policy makers for regulations. D. All of the above. D

Which of these factors has accelerated the current ecological crisis?

A. Rapid industrialization. B. Population reduction. C. World income equality. D. All of the above. A

When the market fails to adjust for the full costs of a firm's behavior, this is called

A. Re-regulation. B. Market failure. C. Negative externalities D. Deregulation. B

Life-cycle analysis involves:

A. Reducing recycling costs for disposable products. B. Increasing productivity while improving the environment. C. Accurately recording the production costs at each stage of a product's life cycle. D. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. D

Since the mid-1950s the proportion of American workers represented by unions has:

A. Remained about the same. B. Decreased C. Grown only in the manufacturing sector. D. Increased. B

The use of robotics in the workplace has increased recently because:

A. Robots are more reliable than people. B. The cost of robots has decreased. C. New collaborative machines have been invented. D. All of the above. D

Which of these steps has the U.S. recently taken to counter cybercrime?

A. Setup a system of voluntary cybersecurity standards. B. Opened a new center dedicated to managing cyber activities. C. Passed sweeping new legislation that required Internet providers to guarantee security. D. Both A and B, but not C. D

The "agency problem" arises when:

A. Shareholders act in their own interest, rather than in the interest of the board. B. Owners manage the company on their own behalf. C. Managers act in their own interest, rather than in the interest of shareholders. D. There is no separation of ownership and control in a company. C

A company can increase diversity and inclusion in the workforce by:

A. Showing foreign films weekly. B. Accommodating family needs outside of work. C. Hiring only foreign-born managers. D. Moving all operations overseas. B

Which of the following statements accurately describe the role of chief sustainability officer?

A. Supervises staff across functional areas. B. Requires strong interpersonal skills. C. Typically reports to the CEO. D. All of the above. D

Studying the underlying cause of repeated supplier violations is called:

A. Supplier scoring. B. Root cause analysis. C. Capability-building. D. Supply chain auditing. B

A visual representation of the many links between a lead firm and its suppliers, superimposed on a geographical map is called a:

A. Supply chain map B. Supply web C. Linked List D. Network map. A

Natural capital refers to the world's:

A. Supply of geology, soil, air, water and all living things. B. Combined stock ownership. C. Supply of sustainable developers. D. Combined capital investments. A

The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called:

A. Technological innovation. B. Sustainable development. C. Consumption footprint. D. Ecological footprint. D

Stakeholder engagement is:

A. The acquisition of information gained from analyzing the multiple environments. B. Any issue that is of mutual concern to an organization and one or more of its stakeholders. C. Competitive intelligence being collected ethically and systematically. D. The process of ongoing relationship building between a business and its stakeholders. D

Which of the following is not true about occupational segregation?

A. The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations. B. It means that women cannot get the jobs that could break the cycle of relatively low pay. C. The pay gap in American businesses persists, in part, because of it. D. It concentrates women in traditionally female-dominated jobs. A

How are directors (members of corporate boards) selected?

A. The nominating committee elects the directors. B. The company's CEO appoints the directors. C. Shareholders with the greatest proportional ownership in the company become directors. D. Shareholders elect the directors from a list of candidates. D

Which of the following is (are) core rights of consumers?

A. The right to be represented. B. The right to safety. C. The right to purchase. D. All of the above. B

Which of these statements accurately describe hacktivists known as grey hatters?

A. They always work in tight-knit groups. B. They seek media attention and profits. C. They seek retaliation on businesses. D. They are highly welcomed by businesses. B

Which of the following statements is not true about shareholders?

A. They are investors in the company. B. They own equal shares of company assets. C. Managers pay close attention to their needs and interests. D. They are the legal owners of business corporations. B

A reason for an increase in employee monitoring does not include:

A. To make sure employees do not disclose confidential information. B. To avoid lawsuits if employees act in inappropriate ways. C. To achieve greater efficiency at work D. To reduce the employer's health insurance premiums. D

Which of the following is not a legal right of shareholders?

A. To vote on changes in the corporate charter and proposals. B. To vote on who will become chief executive officer (CEO). C. To vote on major mergers and acquisitions. D. To vote on members for the board of directors. B

When women and minorities are highly competent but are unable to attain executive positions, this is typically called:

A. Transparency B. Broken windows theory C. Glass ceiling D. Glass wall C

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

A. Violations of individual privacy. B. Incomplete information disclosure. C. Predatory pricing. D. Hazardous products. D

Social impacts of global supply chains include:

A. Wages B. Working conditions. C. Employee health. D. All of the above. D

The Occupational Safety and Health Act gives workers the right to a job:

A. With equal wages for similar kinds of work. B. That does not require them to lift, bend, or move items at any time on the job. C. That is free from recognized hazards that are likely to cause death or serious injury. D. With wages that enable an employee to enjoy a decent standard of living C

The term civic engagement describes:

A. A close and collaborative business-government relationship. B. A competitive, free market environment. C. The active involvement of businesses and individuals in improving communities. D. Strong governmental regulation to control businesses at the municipal level.

Which of the following is an argument against corporate social responsibility?

A. A majority of stockholders are against it. B. Improves business value and reputation. C. Creates an imbalance between corporate power and its economic responsibility. D. Requires skills businesses may lack. D

Deregulation is often:

A. A politically unpopular idea. B. A politically popular idea. C. Found in European countries but not in the United States D.Seen during a Democratic federal administration B

Most ethics or compliance officers are generally entrusted to:

A. Act as a liaison between the company and the Securities and Exchange Commission. B. Arrange for ethics training for employees at a nearby university. C. Reduce the risks to the company of employee misconduct. D. Annually distribute copies of the company's code of ethics to all interested stakeholders. C

Integrity-based ethics programs:

A. Are predominately implemented within the European Union. B. Threatens employees with punishment for noncompliance with the ethics program. C. Seeks to avoid legal sanctions. D. Combines concern for the law with an emphasis on employee responsibility. D

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called:

A. Balanced Corporation. B. B Lab. C. B Corporation. D. CSR Corporation. C

All of the following values are present in most ethical decisions except:

A. Be cruel. B. Be honest. C. Be fair and just. D.Act responsibly. A

Which of the following statements is true about corporate social responsibility?

A. Businesses should monitor and prevent social problems in advance of their becoming major issues. B. A company should seek maximum profits from its operations in order to provide the best for society. C. Corporations should be accountable for any actions that affect people, their communities, and the environment. D. Both of these answers are correct: Businesses should monitor and prevent social problems in advance of their becoming major issues; and corporations should be accountable for any actions that affect people, their communities, and the environment. D

Past decisions of the courts, the original basis for the U.S. legal system, are called

A. Common laws. B. Legitimate actions. C. Torts D. Amendments A

Which of the following statements is true about the relationship between business and the community?

A. Communities possess more social power than businesses do. b. Business has more responsibility towards community than the community does towards business. C. It is one of mutual interdependence. D. All of the above statements are true.

Positive reputation can be valued as an intangible corporate:

A. Expense. B. Liability. C. Charity. D. Asset. D

Cooperation between business and government often occurs when:

A. Government has the support of the people. B. Business operates at arm's length from the government. C. They encounter a common problem or enemy D. Business can afford it. C

The most significant motivator of corporate social reporting is:

A. Government reporting requirements. B. Ethical concerns. C. Financial concerns. D. Employee demand. B

Under the Sarbanes-Oxley Act, corporations are required to:

A. Have their audit committee comprised of only executives employed by the firm. B. Have executives vouch for the accuracy of a firm's financial reports. C. Collect reimbursements from the U.S. government if financial restatements occur. D. All of the above. B

According to a survey of community relations managers, what is the most important social issue facing communities today?

A. Health care. B. Housing. C. Public safety. D. Education. D

The iron law of responsibility says that:

A. In the long run, those who do not use power responsibly will lose it. B. In the short run, sacrifice social goals for economic goals. C. Law is most important, more than social or economic responsibility. D. In the long run, economic responsibility leads to social responsibility. A

The costs of corporate social responsibility may ultimately be passed on to the:

A. Investor through stock splits. B. Consumer through high prices. C. Taxpayers by the government. D. Supplier through discounts. B

As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:

A. More important. B. Less important. A liability C. because of negative media. D. Obsolete because of social media. A

When undertaking social initiatives, a company:

A. Must take out social responsibility insurance. B. Will always receive long-term profits. C. May sacrifice short-term profits. D. Risks going bankrupt in nearly all cases. C

Which of the following statements is not true about arable land?

A. Poor farming practices have caused arable lands to turn into deserts. B. It is a nonrenewable resource. C. Over 20 percent of the irrigated lands in developing countries have been salinized. D. Soil erosion has threatened many of the arable lands.

By law, the financial records of publicly held companies are required to be:

A. Summarized in the employee manual for new hires. B. Reviewed quarterly by the IRS. C. Audited by a certified professional accounting firm. D. Managed by an accounting department of at least five CPAs. C

Corporate power refers to:

A. The capability of competitors to influence legislation, trade, and the stock market, based on their organizational resources. B. The capability of politicians to influence corporations, employees, and unions, based on their organizational resources. C. The capability of CEOs to influence product development, employee morale, and currency indices, based on their organizational resources. D. The capability of corporations to influence government, the economy, and society, based on their organizational resources. D

The core components upon which a company's ethical performance depends include:

A. The personal character of the managers and employees. B. The values and virtues of the managers. C. The traditions, attitudes, and business practices built into a company's culture. D. All of the above. D

Which of the following is a reason for businesses to get involved in the community?

A. To build social capital. B. To win local support for business activity. C. To meet stakeholder demands. D. All of the above.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:

A. Value-based and Consequentialist B. Institutional and Legal. C. Legal and Practical. D. Compliance and Integrity. D

In the U.S., the right to free speech:

a. Depends on state law. b. Is a constant threat to every business. c. Must be weighed against the consequences for the community. d. Is an absolute privilege to all citizens. C