GOVERN MIDTERMS

b. Ethical

Developing a code to aid employees in their decision making is an example of an activity for which type of social responsibility? a. Economic b. Ethical c. Philanthropic d. Legal e. Governance

e. Opportunity

Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed's e behavior? a. Individual b. Social c. Moral d. Circumstantial e. Opportunity

a. in governing the firm.

Given stakeholders' heterogeneous objectives, internal dissension might seriously compromise their effectiveness a. in governing the firm. b. in satisfying other stakeholders. c. in addressing agency problems. d. all of the above e. none of the above

b. firmly and consistently

If a company deals with violations of its ethical codes, the opportunity to be unethical will be reduced. a leisurely and lightly b. firmly and consistently c. on a case-to-case basis d. quietly and erratically e. frequently and severely

b. Keiretsu

In Japan, there are extensive cross-holdings within business groups known as a. Kaizen b. Keiretsu c. Kanban d. social responsibility e. agency cost

a. top management.

In order for any social responsibility initiative to have strategic significance in a company, it must be fully supported and valued by a. top management. b. legislators who develop federal law and policy. c. government officials in the local area. d. the company's stockholders. e. non-profit groups who benefit from a company's philanthropic spending

Economic model of social responsibility

Where does social responsibility of business have to begin? The manager of a large chain recently spoke to a group of college students about making it in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization to produce and market profitable products needed by society. in so doing, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his investment and that a firm is legally obligated to act in stockholders' interests. What concept do the manager's comments reveal?

b. the first agency problem.

Where the typical pattern is one of dispersed shareholding, legislative and policy attention tends to focus, as the provisions of the Code of Good Governance demonstrate on a. profit maximization. b. the first agency problem. C. corporate control d. corporate merger. e. None of the above

e. sort of short-term accounting profits that are reflected in share price.

Social responsibility theorists argue that excessive accountability to shareholders causes managers to ignore social costs and benefits in favor of ____________ a. personal gain b. corporate takeover c. merger with other company d. government regulations e. sort of short-term accounting profits that are reflected in share price.

b. boycotts and demonstrations.

Society's primary method of enforcing its requirements regarding business behavior is through a. the legal system. b. boycotts and demonstrations. c. the media. d. buying foreign made products, e. self-regulation.

d. unethical.

Some Enron executives were aware of the financial problems the company was facing and yet failed to reveal this information to the public. These actions taken by Enron executives were a. moral. b. normal. c. in the best interests of the shareholders. d. unethical. e. in the best interests of the employees.

c. is likely to be illegal.

Suppose that when making decisions with ethical content, an executive for the Coca-Cola Company always considers whether she would be comfortable explaining her decision after the fact to a national TV audience. Such thinking a. is clearly a way to shift responsibility and should be avoided. b. encourages ethical decision making. c. is likely to be illegal. d. would encourage legal payoffs to university officials for making Coke the official on campus drink e. violates several international laws.

True

TRUE OR FALSE? "Good corporate governance is a very important for economic development, not only for the individual company, but also for the economy as a whole. Therefore, quality of governance should be continbout intellectual honesty and not just sticking to rules and regulations, capital flows towards companies that practiced this type of good governance Mervyn King (Chairman: King Repo

True

TRUE OR FALSE? A code of ethics is a written guide to acceptable and ethical behavior as defined by an organization.

True

TRUE OR FALSE? A personnel manager of a large company would probably agree that the more ethical the company, the easier it is to attract good people.

False

TRUE OR FALSE? A synonym for insider is executive director; a synonym for outsider is a executive director.

True

TRUE OR FALSE? Affirmative-action plans encompass all areas of human resources management, including recruiting, hiring, training, promotion and pay.

True

TRUE OR FALSE? An individual's moral values and central, value-related attitudes clearly influence one's business behavior.

True

TRUE OR FALSE? Awareness of corporate social responsibility has increased along with government involvement.

False

TRUE OR FALSE? Because of the continuing problem of inflation, an increasing number of have adopted the economic model of social responsibility

False

TRUE OR FALSE? Business people by the very nature of their work rarely face ethical issues to resolve.

True

TRUE OR FALSE? Business people face ethical issues every day and some of these issues can be difficult to assess.

True

TRUE OR FALSE? Consumers buying branded goods can be more confident in the firm's attention to social characteristics, and that firms will react quickly to protect the brand if social responsibility issues arise.

True

TRUE OR FALSE? Equity financing is important for Japanese corporations.

False

TRUE OR FALSE? Equity financing is not a common method of raising capital for corporations in the United Kingdom and the US.

False

TRUE OR FALSE? Ethical behavior is most likely to be compromised when the personal ethics of business people are high.

True

TRUE OR FALSE? Fairness and honesty in business are two important ethical concerns.

True

TRUE OR FALSE? German banks, and to a lesser extent, corporate shareholders, are the key players in the German corporate governance system.

True

TRUE OR FALSE? In Japan, financial institutions and corporations firmly hold ownership of the equity market

False

TRUE OR FALSE? In support of their position, proponents of the socioeconomic model argue that businesses should be allowed to ignore social issues.

False

TRUE OR FALSE? In the UK and US, a wide range of laws and regulatory codes do not define relationships among management, directors and shareholders.

True

TRUE OR FALSE? Investors avoid legal liability by ceding to management control of the corporation, paying management for acting as their agent by undertaking the affairs of the corporation.

False

TRUE OR FALSE? Japanese corporations prefer that a minority of its shareholders be long-term, preferably affiliated, parties.

False

TRUE OR FALSE? Labor market discipline may be perfect.

False

TRUE OR FALSE? Like shareholders, employees cannot insist on socially-responsible behavior by choosing where to work.

False

TRUE OR FALSE? Mandatory disclosure requirements may not be needed to supplement market and contractual devices

True

TRUE OR FALSE? Most authorities agree that business ethics should be improved.

True

TRUE OR FALSE? Players in the Anglo-US model include management, directors, shareholders, government agencies, stock exchanges, self-regulatory organizations and consulting firms which advise corporations and/or shareholders on corporate governance at proxy voting.

False

TRUE OR FALSE? Relationships with customers and co-workers rarely create ethical problems.

True

TRUE OR FALSE? Similar to the trend in the UK and US, the shift during the postwar period has been away from individual ownership to institutional and corporate ownership.

True

TRUE OR FALSE? Sponsors of advertisements aimed at children must be especially careful to avoid misleading messages.

True

TRUE OR FALSE? Stock exchanges play an important role in the Anglo-US model by establishing listing, disclosure and other requirements.

True

TRUE OR FALSE? The US is both the world's largest capital market and the home of the world's most-developed system of proxy voting and shareholder activism by institutional investors

True

TRUE OR FALSE? The economic model of social responsibility emphasizes profits.

False

TRUE OR FALSE? The economic model of social responsibility emphasizes the effect of business decisions on society.

True

TRUE OR FALSE? The field of business ethics applies moral standards to business situations.

False

TRUE OR FALSE? The hard-core unemployed are made up of mentally-ill individuals and those with prior criminal convictions.

False

TRUE OR FALSE? The interests of shareholders and management always coincide.

False

TRUE OR FALSE? The lesser the competition, the greater the choice available to consumers.

True

TRUE OR FALSE? The right to choose means that consumers must have a choice of products offered by different manufacturers and sellers.

True

TRUE OR FALSE? The socioeconomic model of social responsibility emphasizes the effect of business decisions on society.

False

TRUE OR FALSE? There are many more socially responsible businesses today them there were ten managers years ago.

True

TRUE OR FALSE? There is a causal relationship between the importance of equity financing, the size of the capital market and the development of a corporate governance system.

False

TRUE OR FALSE? There is nothing unethical about accepting payments to do something you would normally do in your job anyway

True

TRUE OR FALSE? There is one important distinction between the US and the UK: in the US, shareholders do not have the right to vote on the dividend proposed by the board of directors.

False

TRUE OR FALSE? To achieve affirmative action goals and to remedy past discrimination, hiring quotas are required.

True

TRUE OR FALSE? Traditionally, the same person has served as both chairman of the board of directors and chief executive officer of the corporation.

True

TRUE OR FALSE? UK and US boards are generally smaller than boards in Japan and Germany.

True

TRUE OR FALSE? Within a firm, social responsibility begins with manager's attitude.

b. organizational relationships.

Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning a. fairness and honesty. b. organizational relationships. c. conflict of interest. d. communications. e. freedom of choice.

a. individual

The _________ factor affecting ethical behavior includes one's moral values and central attitude. a. individual b. social c. opportunity d. moral e. ethical

c. the agency problem

The collapse of giant Enron in 2001 showed how catastrophic___________ can be a. the credit crunch b. the Asian financial crisis c. the agency problem d. corporate takeover e. business ethics

economic return

The economic model of social responsibility places primary emphasis on?

short-term profits and survival

The economic model of social responsibility was developed in period when the primary concern of firms was

e. focus on efficiency and economies of scale.

The flatter organizational hierarchies in the US brought about due to economic instability of the 1980s and early 1990s caused all of the following except a. workforce reduction. b. increasing empowerment of lower level employees. c. more opportunities for outstanding employees to move into management. d. restructuring of the firm to focus on core competencies. e. focus on efficiency and economies of scale.

The economic model of social responsibility

The manager of a successful local restaurant believes his responsibilities are to provide delicious meals and excellent service, provide jobs, comply with laws and the BIR requirements and earn a respectable profit on the restaurant. These are the managers only concerns. What concept does this indicate?

quality of life.

The socioeconomic model of social responsibility places primary emphasis on?

a. ethics.

The study of the morality of choices made by people is known a. ethics. b. business ethics. c. freedom of choice. d. moral aptitude. e. standard of behavior

d. stakeholders.

Those groups to whom a company is responsible are collectively known as a. stockholders. b. society. c. employees and customers. d. stakeholders. e. very important people.

d. Any form of business from a sole proprietorship to a large corporation

To which of the following forms of business can the concept of social responsibility be applied? a. Large, public corporations b. Small, privately held corporations c. All forms of corporations d. Any form of business from a sole proprietorship to a large corporation e. All businesses except those with less than 50 employees

d. opportunity, individual factors, social factors

What are the three sets of factors that influence the standards of behavior in an organization? a. organizational norms, circumstances, morals b. peer pressure, attitudes, social factors c. historical factors, management attitudes, opportunity d. opportunity, individual factors, social factors e. financial factors, opportunity, morals

b. Have ethics training sessions for interested employees.

What is probably the most effective way for a company to encourage ethical behavior? a. Hire employees who are ethical and in agreement with the companies views. b. Have ethics training sessions for interested employees. c. Threaten employees with immediate termination for unethical behavior. d. post signs discouraging sexual harassment and discrimination e. enforce a written code of ethics for the organization.

d. audited financial reports

What specific area of business communications presents ethical questions by sometimes containing false and misleading messages for adults and especially children? a. press releases b. newspaper articles c. consumer reports' rankings d. audited financial reports e. advertising

d. agency problem occurs

When an executive uses company assets to underwrite persons' loans, the _______ as company takes on debts to provide its executives with higher incomes. a. tunneling b. pyramiding c. corporate take-over d. agency problem occurs e. any of the above

c. bribe

You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you PBA season tickets if you help him out. This tactic is a. a corporate discount. b. a common business practice. c. bribe. d. personal selling. e. ethical.

Outsider

a person or institution which has no direct relationship with the corporation or corporate management

Insider

a person who is either employed by the corporation can an executive, manager, employee or somebody who has significant personal and/or business relationships with corporate management.

c. Tunneling

is an important example of the agency problems created in a control pyramid. a. Bribes b. Contract fixing c. Tunneling d. All of the above e. None of the above

Japanese mode

model of governance characterized by a high level of stock ownership by affiliated banks and companies; a banking system characterized by strong, long-term links between bank and corporation; a legal, public policy and industrial policy framework.

Keiretsu

refers to industrial groups linked by trading relationships as well as cross-shareholdings of debt and equity; boards of directors composed almost solely of insiders; and a comparatively low (in some corporations, non-existent) level of input of outside shareholders, caused and exacerbated by complicated procedures for exercising shareholders' votes.

whistleblower

the person who reports illegal or unethical conduct within his organization?

b. freestanding family firm

Because agency problems are likely to be significantly different from a a. multinational corporation. b. freestanding family firm. c. transnational corporations d. Corporate take-over e. business ethics

a. unethical.

Bribes are a. unethical. b. ethical only under certain circumstances. c. uncommon in many foreign countries, d. economic returns. e. ethical.

a. regulations and laws that guide companies in their business decisions.

Business ethics refers to a. regulations and laws that guide companies in their business decisions. b. companies retraining from forming monopolies or restricting competition in any way c. principles and standards that guide behavior in the business world. d. unique industry and professional factors that influence employees. e. the percentage of after-tax profits given to non-profit and community groups.

c. does public relations work for a company.

A whistleblower is a person who a. announces the beginning and end of a work shift. b. praises his own accomplishments. c. does public relations work for a company. d accepts responsibility when a company is in trouble with the government. e reports illegal or unethical conduct within his organization

d. demographic factors.

All of the following are factors that affect the level of ethical behavior organization in an organization except a. individual factors. b. social factors. c. opportunity. d. demographic factors. e. moral values.

c. between majority shareholders and minority shareholders, and between the controllers of the company and non-shareholder stakeholders.

Existing company policies addresses three sets of principal/agent problems which are inherent in the structure of large companies those arising bet management and the shareholders as a class a. between majority creditor and minority shareholders, and between the controllers of the company and non-shareholder stakeholders. b. between majority shareholders and minority shareholders, and between the non-controllers of the company and non-shareholder stakeholders. c. between majority shareholders and minority shareholders, and between the controllers of the company and non-shareholder stakeholders. d. All of the above e. None of the above

d. social welfare

External regulation may be inadequate to align corporate profits with a. corporate stakeholders b. government regulators c. best practices d. social welfare e. all of the above

b. corporate sector

Family ownership is one feature of the _______ of much of the world. a. government sector b. corporate sector c. non-governmental sectors d. civic groups e. all of the above

d. Philippine Stock Exchange

For a local beauty shop that is a privately owned business, which of the following is not likely to be a stakeholder? a. Tax authorities b. Customers C. Suppliers of hair coloring solutions d. Philippine Stock Exchange e. Other businesses in the same neighborhood and shopping center

a. deception

For health-related companies such as weight watchers, one of the most frequent ethical issues related to communications that they face is a. deception b. providing too much information c. seeking BFAD approval. d. experiments on animals. e. safe packaging.

d. encouraging all employees to be whistleblowers.

Jose Velarde is an ethics officer at a large financial institution. He likely performs all of the following duties except a. coordinating ethical conduct. b. providing advice to employees when they are uncertain. c. giving top management advice about their decisions. d. encouraging all employees to be whistleblowers. e. determining the punishment for ethical violations.

a. regulation.

Lawmakers rely on those responsible for internal governance to achieve socially-desirable results by responding to the _____ a. regulation. b. stakeholders. c. board of directors. d. creditors. e. code of ethics.

c. Philanthropic

Making voluntary contributions of money, time, and other resources to improve the community most closely resembles which type of social responsibility? a. Economic b. Legal c. Philanthropic d. Environmental e. Ethical

e. individuals in their personal lives

Managers may be more likely than remote owners to feel responsibility for the firm acts and thus to be subject to the same social norms and moral sc influence a. corporate takeovers b. creditors. c. government agencies d. other interest groups. e. individuals in their personal lives

b. Economic

Many claimed that Microsoft's dominance in the computer operating systems market violated which corporate social responsibility? a. Ethical b. Economic c. Legal d. Environmental e. Philanthropic

b. an ethical problem because children may be deceived about what Barbie can do.

Mattel, the maker of Barbie dolls, frequently shows television ads aimed at children on Saturday mornings, when many children are known to watch cartoons. Some of these ads mix cartoon-type animation and "real" shots of the dolls so that it is sometimes difficult for even an adult to determine what the doll can or cannot do This most likely represents a. a conflict of interest. b. an ethical problem because children may be deceived about what Barbie can do. c. an ethical concern for many creditors of Mattel. d. illegal payoffs, if parents are getting more than they actually know they are paying for. e. that Mattel employees need better working conditions and higher pay.

c. addressing the concerns of contractual stakeholders in regards to legal and economic matters.

Minimal responsibility primarily involves a. incorporating efforts in such a way as to benefit all stakeholders of the company. b. fulfilling social responsibilities including legal and ethical guidelines. c. addressing the concerns of contractual stakeholders in regards to legal and economic matters. d. trying to maximize stockholder wealth. e. satisfying the primary stakeholders regardless of the possible legal implications.

b. Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic

Which of the following best describes social responsibility? a. A corporation's rights, such as due process in a court of law, freedom of speech and privacy. b. Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders. c. A company's attempt to maximize its profits in order to benefit stockholders. d. All the policies of a company that promote ethical business practices. e. All businesses except those with less than 50 employees.

c. Environmental

Which of the following is not one of the four types of corporate social responsibility? a. Ethical b. Economic c. Environmental d. Legal e. Philanthropic