Business Final Exam

"Minimal" responsibility primarily involves:

Addressing the compliance concerns of stakeholders to legal and economic matters.

Which of these statements best describes the concept of social responsibility?

Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected by it stakeholders.

US Supreme Court decisions on sexual harassment cases have set the realm of responsibility for sexual harassment to include which of the following?

All of these are included in the realm of responsibility for sexual harassment.

Which of the following statements best describes the legal standards concerning advertising communication?

Although some exaggeration is tolerated, deceptive claims or claims that cannot be substantiated are likely to result in legal action.

Which of the following is least likely to be an example of a work/life program arrangement?

An employee is allowed to take the one-week of vacation time he has earned.

What is the psychological contract between an employee and his or her employer?

Beliefs, perceptions, expectations, and obligations that comprise an agreement between individuals and their organizations.

Which of the following is NOT an ethical issue in the area of communications?

Bribery

Which of the following categories of employment discrimination is not covered by Title VII of the Civil Rights Act of 1964?

Disabilities

If a consumer stages an accident in a store and then seeks damages against the store for its "poor safety standards," this customer has committed which fraudulent activity?

Duplicity

Which of the following is NOTlikely to be an effect of workforce reduction?

Employee compensation usually increases when fewer employees are working for a company

What experiences effectively ended the loyalty and commitment-based contract that employees had developed with their employers?

Employers took steps to cut costs through workforce reduction as the demands for global competitiveness increased.

What concept governed employment up until the early 1900s?

Employment at will

An individual who risks their wealth, time, and effort to develop an innovative product or service for a profit is called a(n):

Entrepreneur

Which of the following is not one of the four types of corporate social responsibility?

Environmental

Which of the following terms is NOT commonly used to describe the elimination of employment positions?

Erosion

An employee for ABC, Inc., has been asked to carry out an assignment that she believes is questionable. This situation can best be classified as

an ethical issue.

The most basic of business ethical standards:

are laws and regulations that have been codified.

Abstaining from using, purchasing, or dealing with an organization is known as a/an _________

boycott.

Individuals or organizations who earn a profit by providing goods and services that satisfy people's needs are called a(n) ____________.

business

cosmopolitan citizens

business leaders acting as agents to ensure the economic promises of globalization are met with true concern for social and environmental considerations

After poor service, the second top reason consumers gave for avoiding or refusing to buy from certain companies was:

business misconduct

economic responsibility

businesses' responsibility to provide a return on investment for their owners, create jobs for the community, and contribute goods and services to the economy

One of most common fraudulent activities reported by employees about their coworkers is:

claiming to have worked extra hours.

Stakeholders

constituents that have a stake in, or claim on, some aspect of a company's products, operations, markets, industry, and outcomes

The movement to protect consumers from an imbalance of power with business and to maximize consumer welfare in the marketplace is known as _________.

consumerism.

Employee commitment develops from

employees who believe their future is tied to that of the organization and are willing to make personal sacrifices for the organization

The design, arrangement, and use of equipment to maximize productivity and minimize fatigue and physical discomfort are known as ____________.

ergonomics

Developing a code to assist employees in their decision-making is an example of an activity for which type of social responsibility?

ethical

Transparency

expectation that companies will present clear, accurate balance sheets

philanthropic responsibilities

expectation that companies will promote human welfare and goodwill

Issues related to fairness and honesty may arise because business is sometimes regarded as a:

game governed by its own rules, rather than those of society.

Overall, evidence supports that social responsibility

has positive results like return on investment, return on assets, and sales growth.

Because it can be difficult to draw a boundary between some legal issues and ethical issues in the workplace, it is important to:

have an organizational mechanism for resolving all questionable issues.

Mary steals office supplies from her employer. Mary's unethical behavior may be attributed to all of the following EXCEPT:

her personal values alone

Sexual harassment is divided into two general categories, including:

hostile work environment and quid pro quo

The Consumers Union tests products in its own laboratories and studies, then communicates the results:

in Consumer Reports magazine

According to Kohlberg's model, moral development:

is accelerated by gaining education and experience in resolving conflicts.

Society's primary method of enforcing its requirements regarding business behavior is through

its legal system

In the long run, the success of a company is built on:

long-term relationships with customers built on mutual respect and cooperation that leads to repeat purchasing.

In the ACORN model for handling generational diversity in the workplace, the "N" stands for:

nourishing retention to keep the best employees.

Implementing social responsibility on a global level is complex because:

of the need to balance economic responsibility with other responsibilities

Making voluntary contributions of money, time, and other resources to improve the community most closely aligns with which type of social responsibility?

philanthropic

Business ethics refers to

principles and standards that guide behavior in the business environment.

The framework to understand how businesses meet their economic, legal, ethical, and philanthropic responsibilities is developed around the assumption that social responsibility is a:

process

Initiatives in workplace diversity focus on:

recruiting and retaining a diverse workforce as a business imperative.

The Fair Labor Standards Act (FLSA) of 1938 prescribed all of the following, EXCEPT:

rights of employees to engage in collective bargaining

Those groups to whom a company is responsible are collectively known as ____________.

stakeholders

An ethical issue is a problem, situation, or opportunity:

that requires an individual or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

social responisbility

the adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders

power

the extent to which a stakeholder can gain access to coercive, utilitarian, or symbolic means to impose or communicate its views to the organization; power may be coercive, utilitarian, or symbolic

Legitimacy

the perception or belief that a stakeholder's actions are proper, desirable, or appropriate within a given context

crisis management

the process of handling a high-impact event characterized by ambiguity and the need for swift action

Consumers can best be described as:

those individuals who purchase, use, and dispose of products for personal and household use.

Primary Stakeholders

those whose continued association is absolutely necessary for a firm's survival; these include employees, customers, investors, and shareholders, as well as the governments and communities that provide necessary infrastructure

In order for any social responsibility initiative to have a strategic impact in a company, it must be ully supported and valued by:

top management and leadership

Strategic Responsibility

type of responsibility realized when a company has integrated a range of expectations, desires, and constituencies into its strategic direction and planning processes

Lying by omission involves intentionally:

withholding material facts.

Which of the following situations may constitute "quid pro quo" sexual harassment?

A male manager suggests to one of his female employees that she will receive a raise if she wears shorter skirts and works "overtime" once a week.

To which of the following forms of business can the concept of "social responsibility be applied:

Any form of business, from sole proprietorships to large corporations.

Organizational work-Life programs are characterized as:

Assisting employees in balancing work responsibilities with personal and fanily responsibilities

Which of the following most closely exemplifies "groupthink"?

At a company meeting, a possible safety issue with one of the company's products is discussed, and the employees decide not to recall the item since the possibility of the problem is probably slim.

Bribery is associated with which of the following?

Conflicts of interest.

Which moral classification considers a decision right or acceptable if it accomplishes a desired result such as pleasure, knowledge, career growth, or utility?

Consequentialism

Which government agency enforces regulations designed to protect the public from unreasonable risk of injury from consumer products?

Consumer Product Safety Commission

What aspect of corporate culture relates to an organization's expectations about appropriate conduct?

Ethical climate

If a doctor exaggerates the condition of a patient in order for it to be a condition covered by insurance, the doctor is most likely applying which moral philosophy?

Ethical formalism

By the 1980s, what type of analogy was being used to describe the workplace?

Family

When a company promotes its products as "environmentally friendly," what is this called?

Green Marketing

Which of the following is an example of external factors affecting the perception of a firm's decision to downsize?

If other companies are in the area that can and will quickly hire the employees laid off from the downsizing company.

Which of the following BEST describes ethics?

Individual beliefs about choices and judgments of acceptable ways of behaving for individuals and groups.

What did the Employee Retirement Income Security Act (ERISA) of 1974 do?

It set uniform minimum standards to assure that employee benefit plans are established and maintained in a fair and financially sound manner.

Until the early 1900s, how could the relationship between employer and employee best be characterized?

Master-Servant

What is the set of conditions that limits barriers or provides rewards?

Opportunity

What are the three primary factors that together influence the ethical decision-making process?

Opportunity, individual factors, and organizational relationships

Why did McDonald's start displaying warning signs that its coffee is hot after the famous lawsuit?

To try to eliminate further injury and product liability.

What holds organizations together and allows them to focus on efficiency, productivity, and profits?

Trust

If employees believe that salary decisions are fair and consistent for all job categories, what type of justice exists?

Procedural

Which area of law refers to a business's legal responsibility for the performance of its products?

Product liability

What does the Family and Medical Leave Act of 1993 (FMLA) require of certain employers?

Provide up to 12 weeks of unpaid, job-protected leave to eligible employees for certain family and medical reasons.

Which of the following actions is NOT usually associated with bullying in the workplace?

Providing constructive criticism

Ethical Responsibility

Requirement that companies practice what is just fair, and right

The Nutrition Labeling and Education Act of 1990 can be most closely attributed to which right of the Consumer Bill of Rights?

Right to be informed

Which of the following was not included in President John F. Kennedy's Consumer Bill of Rights?

Right to fair treatment.

Which of the following types of employees must be paid for overtime work under government labor standards and pay provisions?

Secretaries

To whom should consumers turn first when exercising their right to seek a remedy ("redress")?

Seller of the product or service.

Who establishes the ethical tone for the entire organization?

Senior Leadership

In which of Lawrence Kohlberg's stages of moral development does an individual emphasize others over himself or herself?

Stage of mutual interpersonal expectation, relationships, and conformity

Conflicts of interest exist when employees must choose whether to:

advance their own interests, those of the organization, or those of some other group.

Concerns involving consumer privacy, website development, and online marketing relate to which classification of ethical issue?

Technology

For a local hair salon that is a privately-owned business, which of the following is not likely to be a stakeholder?

The New York Stock Exchange (NYSE)

Which of the following is LEAST important in becoming an employer-of-choice?

The employer offers the highest pay in the industry.

How does the level of job-related stress and fatigue in the United States generally compare to that in Japan?

The overall work-related stress and fatigue levels in the United States are moderate compared to the high levels in Japan.

Which of the following most closely describes the relationship between consumers and businesses?

They are fundamentally connected by an economic relationship that often leads to a deeper attachment.

What impact has information services and the Internet had on consumers and businesses?

They have shifted the balance of power between consumers and businesses because consumers are able to compare prices, read independent rankings, and obtain greater product knowledge.

________ prohibit(s) employment discrimination on the basis of race, national origin, color, religion and gender

Title VII of the Civil Rights Act of 1964

What is the main purpose of the Occupational Safety and Health Administration?

To oversee the regulations intended to ensure safe and healthy working conditions for all employees.

What is an employee who reports individual or corporate wrongdoing to either internal or external sources known as?

Whistle-blower

legal responsibility

a company's social responsibility to obey society's laws and regulations

Pyramid of Social Responsibility

a model of the four types of business responsibilities, economic, legal, ethical, philanthropic