Ethics - Chapters (1-7)

Operating with strong moral principles can sometimes be a positive force for change in companies that transnational firms operate.

true

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate.

False

It is rare across nations that there are differences in corporate citizenship driven by government involvement or stakeholder activism.

False

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.

False

Another way that some would describe competitor intelligence is:

corporate espionage.

Business cannot expect to be profitable while adhering to ethical principles of conduct.

false

The following is/are step/s in the issue management process:

A and B are correct

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

A central state control system.

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

All of the above.

Why should business be ethical?

All of the above.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate.

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

Legally marketing a pesticide abroad that has been banned in the U.S.

The Sarbanes-Oxley Act:

Requires executives to pay back bonuses based on earnings that are later proved fraudulent.

Which of the following is not an example of the charity principle?

Supporting a governmental protection agency.

Unfortunately, according to the United Nations, only 50% of the world adhere to the code of human ethics ________________________.

The Universal declaration of Human Rights.

Business leaders who follow the stewardship principle believe they have an obligation to see that everyone benefits from the firms' actions.

True

Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations.

True

One of the most appealing arguments in favor of corporate social responsibility for business supporters is that voluntary social acts may head off increased government regulation.

True

The clear and public reporting of financial audits is an example of transparency.

True

Stockholders' interests and stakeholders' interest are:

a source of pressure for management when they try to reconcile their obligation to produce value for them vs. interests of other stakeholders.

Collaborative partnerships all the following sector/sectors can draw on their unique capabilities and overcome their weaknesses:

all of the above

When doing a stakeholder analysis the process to identify relevant stakeholders' interest and power involves:

all of the above

The challenge to put emphasis on long-run profits rather than focus on immediate returns can be reconciled with:

an enlightened self-interest approach.

Stakeholder dialogue takes place when:

businesses and it stakeholders have face-to-face conversations about common concerns.

The __________________ approach of ethics emphasizes the threat and detetion and punishment to promote lawful employee behavior

compliance-based.

Companies whose citizenship profile best matches public expectations are least likely to benefit from strategic investments in corporate citizenship.

false

Deciding whether or not to do business with a government-owned enterprise if that government has a reputation for human rights violations is NOT a challenge for transnational corporations.

false

Global corporate citizenship refers to putting an organization's commitment to social and environmental responsibility into practice locally.

false

Only in the last decade have scholars found a positive relationship between an organization's economic performance and attention to spiritual values.

false

Social performance audits look at what an organization does, not at the results of the actions.

false

Fair elections, an independent media, a government balanced between executive, legislative, and judicial branches are:

features of democracy.

By benefiting stakeholders ahead of themselves, managers are performing their

fiduciary duty.

When dealing with the multiple responsibilities of business successful firms:

find ways to deal with all of the above

Formal studies of deviation from a company's ethical standard is reported:

in an ethics audit.

To improve the quality of a company's ethical performance, you have to change the culture so that ethics are a part of every-day decision making which is called

institutionalizing ethics.

The ________________ approach instructs employees to act with integrity and conduct business dealings honestly.

integrity-based.

The following statement is accurate regarding comparative political and economic systems:

only A and B are correct.

Which of the following are accurate with regard to stakeholder coalitions:

stakeholder groups often have common interests which lead to coalitions being formed.

When public issues exist that can only be effectively solved by organizations working colloboratively with other organizations and concerned persons a __________________ should be developed.

stakeholder network.

The ability of a group to use resources to make an event happen or to secure a desired outcome is known as:

stakeholder power.

Reduction of the risks to the company by the acts of employees misconduct is the the primary responsibility of:

the compliance officer.

The unspoken understanding among employees of what is and not acceptable behavior can be called corporate culture or

the ethical climate.

The Firm is the property of its owners and its only purpose is to maximize returns to shareholders is consistent with:

the ownership theory of the firm.

The discrepancy between what stakeholders expect and what an organization is actually doing is called

the performance-expectations gap.

The stage of business-stakeholder relations when companies try to anticipate stakeholder concerns is the

the proactive stage.

Businesses that comply with laws and public policies are meeting a minimum level of social responsibility expected by the public.

true

Ethical ideas are present in all societies, all organizations, and all individual persons.

true