MGS 3520-chapter 1-5

Which statement characterizes the moral reasoning typically found in a child?

"I'll let you play with my toy if I play with yours."

Stakeholder groups can include: (chap 1)

-Environmental activists - shareholders - business support groups

A society where economic power is concentrated in the hands of government officials and political authorities is called: (chap 4)

A central state control system.

Businesses are expected to be ethical in their relationships with: (chap 5)

All are Correct: - Stockholders - Customers - Competitors

Under the World Trade Organization's most-favored nation rule: (chap 4)

All import restrictions are illegal unless proven scientifically.

In the case Corporate Social Responsibility at Gravity Payments, which view in support of corporate social responsibility is relevant according to Figure 3.3? (chap 3)

Balances corporate power with responsibility

A just or fair ethical decision occurs when: (chap 5)

Benefits and burdens are distributed equally.

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups: (chap 5)

Both are correct: - May honestly and genuinely use different sources of information. - May rank various rights in different ways. - May not share the same meaning of justice.

According to a 2017 survey, Americans hold a dim view of: (chap 5)

Business executives

Stakeholders have been able to form international coalitions more successfully through use of: (chap 1)

Communications technology

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of: (chap 5)

Conflict of Interest

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called: (chap 3)

Corporate power

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of: (chap 3)

Corporate/global citizenship

As business becomes increasingly global: (chap 5)

Cross-cultural contradictions will increase.

Which argument says that stakeholder management realistically depicts how companies really work? (chap 1)

Descriptive argument

BSR (formerly Business for Social Responsibility) helps its 300 member companies: (chap 3)

Develop sustainable business strategies.

Cross-cultural contradictions arise due to: (chap 5)

Differences between home and host countries' ethical standards.

In the case LafargeHolcim and ISIS in Syria, a utilitarian benefit of keeping the plant open was: (chap 5)

Employees received paychecks.

Businesses and society are independent of one another. (chap 1)

False

Corporate citizenship refers to a set of beliefs stating that socially responsible behavior is a good idea. (chap 3)

False

Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience. (chap 1)

False

The external environment of business is static. (chap. 1)

False

Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society. (chap 1)

False

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile. (chap 3)

Forum Express

What is one advantage of operating as a B corporation? (chap 3)

Government certificates are frequently conferred.

Experts attribute the growth of nongovernmental organizations to: (chap 4)

Greater openness in many societies

The main drawback to utilitarian reasoning is that: (chap 5)

It is difficulty to accurately measure both costs and benefits.

Microfinance refers to banks: (chap 4)

Lending money to low-income businesses.

The primary goal of a "vulture fund" is to: (chap 4)

Make a profit.

All of the following are external stakeholders of the firm except: (chap 1)

Managers

The term "race to the bottom" refers to: (chap 4)

Moving production jobs to the country with the lowest labor cost.

Which one of the following is considered to be a nonmarket stakeholder of business? (chap 1)

NOT: - creditors

The Heritage Foundation scored which nation of the world among the most repressed in 2018? (chap 4)

North Korea

Philanthropic funding and public relations are two examples of corporate social responsibility: (chap 3)

Policy instruments of the Corporate Social Stewardship phase.

The theory of comparative advantage states that: (chap 4)

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

A firm that would like to develop a global supply chain would: (chap 4)

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

The deep anti-Americanism that exists in some parts of the world is thought to be caused by: (chap 4)

Resentment of cultural penetration from US. based multinational enterprises.

At the core of rights reasoning is the belief that: (chap 5)

Respecting others is the essence of human rights.

According to Barlow v. A.P. Smith Manufacturing: (chap 3)

Socially responsible actions are in investment in the future, thus an allowable expense.

A firm that has global operations has: (chap 4)

Some or all of their manufacturing or service operations abroad.

Once an organization has implemented the issue management program, it must: (chap 2)

Study the results and make necessary adjustments.

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as: (chap 5)

Temporal immediacy.

An example of a Global Action Network, or GAN, is: (chap 4)

The Kimberley Process.

The most important agreement which codifies human rights is: (chap 4)

The Universal Declaration of Human Rights

Representation on the World Bank's board of directors is based on: (chap 4)

The size of the member nation's economy.

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: (chap 3)

Transforming stage

A business is any organization that is engaged in making a product or providing a service for a profit. (chap 1)

True

Government can be considered both a market and nonmarket stakeholder. (chap 1)

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. (chap 1)

True

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to: (chap 5)

Utilitarian Reasoning

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's: (chap 4)

Weak health and safety regulations

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are: (chap 1)

boundary-spanning departments

The costs of corporate social responsibility may ultimately be passed on to the: (chap 3)

consumer through high prices

A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm. (chap 2)

false

An ethical egoist acts for the benefit of others and sacrifices self-interest. (chap 5)

false

Because managers make major decisions, they have limited opportunity to influence the ethical tone of the firm. (chap 5)

false

Ethics are primarily based on religious beliefs. (chap 5)

false

The term corporate power means that in the long run, those who do not use power in ways that society considers responsible will tend to lose it. (chap 3)

false

To qualify as a B corporation, a business must be certified by a state government agency. (chap 3)

false

An analysis of the stability or instability of a government is an example of scanning which environment? (chap 2)

political environment

Public issues are also sometimes referred to as: (chap 2)

social issues or sociopolitical issues

Emerging public issues are both a risk and an opportunity. (chap 2)

true

The concept of corporate social responsibility is rooted in the meaning "to pledge back," creating a commitment to give back to society and the organization's stakeholders. (chap 3)

true

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which of the following? (chap 5)

A food product contaminated with salmonella was distributed to stores.

The emergence of a public issue indicates that: (chap 2)

A gap has developed between what stakeholders expect and what an organization is actually doing.

A leadership role in addressing emerging management issues is often taken by: (chap 2)

All of the Above: - The public affairs department. - The government relations department. - The department of sustainability or environmental, health and safety.

Mature adults typically base their ethical reasoning on broad principles and relationships such as: (chap 5)

Both of these answers are correct: - Human rights and constitutional guarantees of human dignity; - and universal principles of justice.

Which of the following statements is true about corporate social responsibility? (chap 3)

Correct: - Businesses should monitor and prevent social problems in advance of their becoming major issues - corporations should be accountable for any actions that affect people, their communities, and the environment.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because: (chap 3)

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

An individual who is a supporter of globalization would argue that it helps the developing world by: (chap 4)

Correct: - Giving entrepreneurs access to foreign investment funds to support economic development. - Allowing new ideas and technological innovations to spread quickly. - Providing people in developing countries with more jobs.

Government has distinctive resources and competencies including: (chap 4)

Correct: - Knowledge of public policy - Ability to enforce the rules - Revenue from taxation

What stakeholder group(s) can exercise legal power? (chap 1)

Correct: - employees - shareholder - customers

Which of the following statements accurately describe the practice of tax inversion: (chap 4)

Correct: - A company shifts their headquarters to a foreign country - a company increases debt in their home country.

Which statement(s) below are true about global income? (chap 4)

Correct: - Around 10 billion people globally sit at the bottom of the pyramid. - Income is how much one earns in a day or year.

Companies demonstrate global corporate citizenship by: (chap 3)

Correct: - Finding business opportunities that serve society - integrating concern for both financial and social performance.

A market stakeholder is exemplified by which of the following? (chap 1)

Creditors

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. (chap 1)

False

The iron law of responsibility says that: (chap 3)

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

Scholars found that spirituality affects employee and organizational performance in what way? (chap 5)

Positively

Which of the following is not true about justice reasoning? (chap 5)

The reasoner is interest in the net value of benefits

A corporation's investor relations department interacts mainly with shareholders. (chap 1)

True

Amazon has been called "Earth's biggest store." (chap 1)

True

Stakeholders involved with one part of a company may have little or no involvement with another part of the company. (chap 1)

True

The interests of different stakeholders often coincide. (chap 1)

True

Because the public issues that garner the most public attention change over time, companies do not waste time tracking them. (chap 2)

false

Business must develop its own definition of what is right and wrong, apart from ethics. (chap 5)

false

Critics of globalization support the spread of American ideals and culture throughout the rest of the world. (chap 4)

false

Dialogue between a single firm and its stakeholders is always sufficient to address an issue effectively. (chap 2)

false

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate. (chap 3)

false

Financially sound companies do not need to understand how a public issue is likely to evolve, or how it will affect them. (chap 2)

false

Globalization is accepted worldwide and creates little controversy. (chap 4)

false

Legal environment includes the structure, processes, and actions of government at the local, state, national, and international levels. (chap 2)

false

Managers in the same company are likely to be at the same stages of moral reasoning at any given time. (chap 5)

false

Moral intensity refers to the perception of how illegal an ethical issue is. (chap 5)

false

Most nations in the world share similar political, social, and economic beliefs. (chap 4)

false

Only in the last few years have scholars found a positive relationship between an organization's economic performance and attention to spiritual values. (chap 5)

false

Organizations always have full control of a public issue. (chap 2)

false

The World Bank makes currency exchange easier for member countries so that they can participate in global trade. (chap 4)

false

The World Trade Organization conducts negotiations, called "cycles," on various topics, rotating its meetings among different cities. (chap 4)

false

Global market channels involve a firm producing goods in: (chap 4)

their home country and exporting them to other countries.

A social audit is a systematic evaluation of an organization's social, ethical, and environmental performance. (chap 3)

true

Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms. (chap 4)

true

An argument against corporate social responsibility is that it imposes unequal costs among competitors. (chap 3)

true

At the beginning of the 20th century, no country in the world had universal suffrage. (chap 4)

true

Business managers should use all four methods of ethical reasoning—virtues, utility, rights, and justice—to better understand ethical issues at work. (chap 5)

true

Companies are learning that it is important to take a strategic approach to the management of public issues, both domestically and globally. (chap 2)

true

Competitive intelligence enables managers in companies of all sizes to make informed decisions in all areas of the business. (chap 2)

true

Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals. (chap 3)

true

Environmental analysis is a method managers use to gather information about external issues and trends. (chap 2)

true

Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations. (chap 2)

true

Ethical ideas are present in all societies, all organizations, and all individual persons. (chap 5)

true

Even small local businesses often compete with global companies from around the world. (chap 4)

true

For stakeholder engagement to occur, both the business and the stakeholder must be motivated to work with one another to solve the problem. (chap 2)

true

Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world. (chap 4)

true

Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse. (chap 3)

true

In the issue management process, identifying the issue involves anticipating emerging issues. (chap 2)

true

Productivity rises more quickly when countries produce goods and services for which they have a natural talent. (chap 4)

true

Stakeholder materiality is a method companies use to prioritize the relevance of the stakeholders and their issues. (chap 2)

true

The core mission of a social entrepreneur is to create and sustain social rather than economic value. (chap 3)

true

The main purpose of inversion is to reduce corporate income tax obligations. (chap 4)

true

The term sector refers to broad divisions of a whole. (chap 4)

true

Understanding and responding to changing societal expectations is a business necessity. (chap 2)

true

Assets that a person accumulates and owns at a certain point in time are called: (chap 4)

wealth