MGMT 230 FINAL

Public policies and government regulations are shaped by:

Business. Special interest groups. Government.

Economic growth can never occur under extractive political institutions.

False

In the United States, the right to free speech:

Must be weighed against the consequences for the community

Which one of the following is considered to be a non-market stakeholder of business?

Non governmental agencies

Define "util"

A measure of what is useful or procures well-being within a nation.

Which of the following is not an example of stakeholders' economic power?

A social group protests a government's decision to raise taxes.

Firms in the chemical industry, which must contend with frequently changing environmental regulations and the risk of dangerous accidents, usually have:

A sophisticated political strategy

Customers can exercise economic stakeholder power by:

Boycotting products they believe are too expensive

Which of the following represents a structural remedy for an antitrust violation?

Breaking up a monopoly

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

Business leaders speaking before government policymakers

Deregulation has occurred in the following industries:

Commercial airlines, railroads, and financial institutions

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

Common laws

Antitrust laws protect consumers from:

Conspiring with business partners to increase competition

This annual international gathering on January 28 brought together leaders from the U.S. and dozens of European countries to address the global nature of cyberattacks:

Data Privacy Day

Those in support of corporate social responsibility believe the practice

Discourages government regulation

Which of these statements accurately describes a Super PAC?

Does not allow direct contributions to candidates or political parties

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices

Stakeholder groups can include:

Environmental activists, shareholders, business support groups

The most significant motivator of corporate social reporting is:

Ethical concerns

Which type of employee is most likely to report ethical issues in the workplace?

Executives

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

Expert witness testimony

Critics of globalization support the spread of American ideals and culture throughout the rest of the world.

False

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

False

Government and business together establish the regulatory rules under which business operates in society.

False

Government can be considered both a market and non-market stakeholder.

False

Market stakeholders include nongovernmental organizations and business support groups.

False

Non-market stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.

False

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

False

The EU law passed in 2018 that required companies to promptly report personal data breaches was called:

General Data Protection Regulation

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

Global Corporate Citizenship

All of the following are considered to be ethical issues for marketing professionals except:

Ignoring market fair dealing

The iron law of responsibility says that:

In the long run, those who do not use power responsibly will lose it.

The different _____ created by institutions are the main reason behind economic outcomes

Incentives

Public policy tools involve a combination of:

Incentives and penalties.

The purpose of the right to be forgotten is to:

Increase protection of privacy and personal information.

The phase of technology that focuses on building material goods and manual labor is:

Industrial

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its:

Investors

Increased cyber activity by which countries prompted NATO officials to brand them as "patriotic hackers"?

Iran and China

The process of firms buying and selling the right to pollute is an example of which type of environmental regulation?

Market based

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Philanthropic funding and public relations are two examples of corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase.

A common tactic in a financial-incentive political strategy is:

Political contributions

Pluralistic (broad-based) political institutions are a necessary condition for inclusive economic institutions, but you also need a sufficiently _____________________ and _________________ state. Otherwise, your society could sink into _____________________

Powerful/Centralized/Anarchy

A firm that would like to develop a global supply chain would:

Purchase raw materials, components, or supplies from sellers in other countries.

Every environmental regulation must be initially evaluated for its costs and benefits in a process called:

Regulatory impact analysis

Concerns about corporate social responsibility are exemplified by which of these statements?

Requires skills businesses may lack

In the case Should Facebook Be Regulated, the primary market failure was:

Sales incentives to sell user data exceeded those of protecting user privacy

What stakeholder group(s) can exercise legal power?

Shareholders, customers, employees

Total social regulation costs are:

Significantly higher than total economic regulation costs.

Reregulation is:

The increase or expansion of government regulation.

An argument against corporate social responsibility is that it imposes unequal costs among competitors.

True

At the beginning of the 20th century, no country in the world had universal suffrage.

True

Cost-benefit analysis is often used to determine the costs of regulation.

True

Regulation can be argued as justified based on:

Utilitarian and justice grounds.

Clinical Trials in lower-income countries seem most ethical under the:

Utilitarian principle

The five types of stakeholders' power recognized by most experts are:

Voting, economic, political, legal, and informational power.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety violations

Government's role is to create and enforce laws that:

Balance the relationship between business and society

A just or fair ethical decision occurs when:

Benefits and burdens are distributed in fair proportions.

Software piracy is a major problem in which part of the world?

Globally

Which of the following is not an example of an ethical criterion?

Corporate driven

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Corporate/Global citizenship

When a firm solicits its stockholders for political contributions for a particular candidate by letter and then sends those contributions to the candidate on behalf of its stockholders, it is called:

Bundling

Since 2008, the total amount spent on lobbying activity has:

Decreased slightly

Which argument says that stakeholder management realistically depicts how companies really work?

Descriptive argument

Stakeholders stand out to managers when they exhibit:

Power, legitimacy, urgency

When environmentally proactive companies seek out imaginative, innovative new methods for reducing pollution and increasing efficiency, they are adopting which strategy?

Technological innovation

Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world.

True

Lobbyists, under U.S. law, must disclose their:

earnings and expenses

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as:

Temporal immediacy

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

A central state control system

Which of the following statements accurately describe the practice of tax inversion:

A company decreases cash holdings in a foreign country. A company increases debt in their home country.

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which of the following?

A food product contaminated with salmonella was distributed to stores.

Under the World Trade Organization's most-favored nation rule:

All import restrictions are illegal unless proven scientifically.

The antitrust enforcement agencies in the United States have the legal authority to:

Block anticompetitive mergers in the U.S.

Managers' understanding of government regulations is:

Both a domestic and international issue

How did Intel eliminate conflict minerals from their supply chain?

By collaborating with most suppliers in the chain including smelters, processors, and traders.

Company that builds stakeholder coalitions to influence government is using which strategy

Constituency building

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

Consumer through high prices

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called:

Corporate citizenship

Possible costs of environmental regulation include all of the following except:

Corporate restructuring

A market stakeholder is exemplified by which of the following?

Creditors

As business becomes increasingly global:

Cross-cultural contradictions will increase.

The place where information is stored, ideas are described, and communication takes place in and through an electronic network of linked systems is called:

Cyberspace

Being able to continue their activities indefinitely, without altering the carrying capacity of the Earth's ecosystem, is a characteristic of:

Ecologically sustainable organizations

A free enterprise system refers to:

Economic assets that are privately owned and exchanged in an open market.

Which ethical criterion is described by the idea that a company should strive for efficiency?

Egoism

The importing of foreign goods by U.S. firms is called foreign direct investment.

False

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.

False

Patterns of government taxing and spending that are intended to stimulate or support the economy are:

Fiscal policies

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank:

Influences the size of the nation's money supply. Influences the value of the dollar.

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

Innovating new products. Increasing their stock price. Developing their employees' professional skills.

Governments being asked to regulate driving distractions are examples of a public policy:

Input

Give two reasons it is hard to change extractive institutions into inclusive institutions with a swift revolution/coup/civil war

Instability/competition

Building ethical safeguards into a company's everyday routines is called:

Institutionalizing ethics.

The information phase of technology primarily requires:

Intellectual and electronic skills

Which of the following is not true about water pollution?

It can be caused by biodegradable products

A stakeholder map is a useful tool because:

It enables managers to quickly see how stakeholders feel about an issue. It can help managers evaluate possible outcomes regarding an issue

Government has distinctive resources and competencies including:

Knowledge of public policy. Ability to enforce the rules. Revenue from taxation.

When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's:

Legal power

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries

Microfinance refers to banks:

Lending money to low-income businesses.

A firm in the pollution prevention stage of the corporate environmental responsibility model is best described by which statement?

Minimizing or eliminating waste before it is created.

Policies that affect the supply, demand, and value of a nation's currency are:

Monetary policies

The instrumental argument says stakeholder management is:

More effective as a corporate strategy

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

Publicizing an issue. Lobbying government policy makers for regulations. Challenging whether a specific business activity should continue.

The primary way of accomplishing public policy is through

Regulation

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights

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

Product stewardship phase

The critical component in installing an effective ethics program is:

The integration of various ethics safeguards into a comprehensive program.

The main drawback to utilitarian reasoning is that:

The majority may override the rights of those in the minority.

The main barrier to political centralization is a fear of change because:

The party that centralizes the state will have more concentrated power in their hands

Representation on the World Bank's board of directors is based on:

The size of the member nation's economy

Cooperation between business and government often occurs when:

They encounter a common problem or enemy

Economic leverage occurs when a business uses its economic power to:

Threaten to leave a location unless a desired political action is taken

One argument in favor of net neutrality is

To fairly compete, small, medium, and large firms should have the same Internet bandwidth.

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the:

Transforming stage

Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms

True

Monetary policies refer to policies that affect the supply, demand, and value of the nation's currency.

True

Regulatory activity is often cyclical.

True

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

True

Organizations founded with a core mission to create and sustain social value are called social:

Ventures

From a rights based perspective, clinical trials would be unethical if they

Violate individual rights by exploiting some people

Interactions between business and society occur:

Within a finite natural ecosystem.

Economists reported that the costs of regulatory compliance were highest for:

Worker safety

An example of an international financial and trade institution is:

World Bank. International Monetary Fund. World Trade Organization.

From Justice based approach, clinical trials:

Would be more ethical if people in the trial were given the medicine for free or low cost at a later point

As of 2016 what was the average cost of a data breach in the United States?

7 million

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits

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

B corporation

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:

Boundary spanning departments

Which of the following is not a potential source of personal private data?

Broadcast radio

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

Business people do not have the skill set to solve societal problems. The private sector is not mandated to solve these issues.

Which of the following are examples of natural monopolies?

Electric utilities and railroads

In Europe, unions are prohibited by law to be on businesses' administrative boards.

False

To qualify as a B corporation, a business must be certified by a state government agency.

False

When a company publishes the results of a social audit they are meeting the demands of local governments' taxation policies.

False

In a survey of 105 companies in 2017, the most frequent public affairs tactic was related to:

Federal government relations

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost

The idea that every distribution channel must work together to deliver a unified and consistent customer experience is called:

Omnichannel

What are the two types of institutions that the authors suggest are responsible for economic development?

Political/economic

The fiduciary duty of managers benefits a firm's:

shareholders, customers, employees

The case Ethics of Off shoring: Novo Nordisk and Clinical Trials in Emerging Economies suggests that [____________] clinical trials in all emerging/developing economies are conducted in an ethical manner.

some