OBHR Exam 1
When managers become personally involved in developing public policy, the firm is at what level of business political involvement?
Aggressive
The reason(s) behind uncertainty of an ethical decision is (are) that different people and groups
Use different source of info, may rank various rights in different ways, may not share the same meaning of justice
Regulation can be argued as justified based on
Utilitarian and justice grounds
14. The five types of stakeholders' power recognized by most experts are
Voting, economic, political, legal, and informational power.
28. Ethical relativism is most accurately defined by which statement?
What's ethical in one society may be forbidden in another
24. Legal environment intelligence includes
considerations of patents, copyrights, or trademarks
12. A market stakeholder of business is exemplified by which of the following?
creditors (need to look at market to see if they want to invest or not)
23. Stakeholder engagement is best described as a
relationship
42. Proponents of business as a political participant argue that
Both "a pluralistic system invites many participants" and "business is a vital stakeholder of government" are correct
Companies that believe they can make decisions unilaterally, without taking into consideration their impact of others, are:
Inactive
Public policy tools involve a combo of
Incentives and penalties
According to the general systems theory, boundary exchanges are exemplified by which of the following?
Industrial company sells new equipment in its plant to comply with environmental regulations, software company develops application for client, purchasing dept employee negotiates a price on parts with a supplier.
The main drawback to utilitarian reasoning is that
It's difficult to accurately measure both costs and benefits
Proactive companies are
Much less likely to be blindsided by crises and negative surprises
18. An analysis of the stability or instability of a government is an example of scanning which type of environmental intelligence?
Political
48. Expert witness testimony is often collected through
Public congressional hearings
What is important when we look at info?
Relevant- Accurate- Timely-
45. What is the risk of a revolving door hiring policy?
There may be favoritism in decision making
25. A conception of right and wrong is
the definition of ethics
What are the 5 key reasons businesses should be ethical?
(1. To enhance business performance (strong link between ethics & financial performance). 2. To comply with legal requirements (U.S corporate sentencing guidelines, Sarbanes-Oxley Act (2002): ensures firms maintain high ethical standards...) 3. To meet demands of business stakeholders (consumers more likely to purchase products, gain trust from investors, signal long-term concern for all stakeholders) 4. To prevent or minimize harm (overriding principle that business should "do no harm") 5. To promote personal morality (being in supportive ethical climate gives psychological security)
The emergence of public issue indicates that
A gap may be developing between what stakeholders expect and what a firm is doing
19. Scanning the competitor environment includes
All of the above (Identifying number of competing organizations, determining how many rivals may become allies, analyzing the growth rates of competing firms)
15. Stakeholder groups can include
All of these choices are correct (shareholders, business support groups, environmental activists)
34. Businesses' understanding of government regulations is
Both a domestic and an international issue
17. Public issues are also referred to as
Both social issues and sociopolitical issues.
A structural remedy for an antitrust violation includes
Breaking up a monopolistic organization
10. The relationship between business and society is most accurately described by which statement?
Business is a distinct bounded entity within the larger bounded entity of society
43. Public policies and government regulations are shaped by
Business, special interest groups, government
Failure to understand the beliefs and expectations of stakeholders may
Cause the performance expectations gap to grow larger
38. Past decisions of the courts, the original basis for the U.S legal system, are called
Common law
An interactive business-stakeholder relationship is one where
Companies actively engage with stakeholders through mutual respect and trust
33. Which type of ethical issue did 3M face with regard to price gouging accusations, according to the case "3M and N95 Respirators for Americans"?
Competitive pressures on profits
A purchasing agent giving an exclusive contract to a supplier, from which she received a valuable gift is an example of
Conflict of interest
A company that builds stakeholder coalitions to influence govt is using which strategy?
Constituency building
44. Which political action strategy seeks to gain support from other affected organizations to better influence policymakers?
Constituency-building strategy
22. When working well, the issue management process
Continuosly cycles back to the beginning and repeats
41. A test to determine if the benefits of regulation are worth its costs is called a
Cost-benefit analysis
Which argument says that stakeholder management realistically depicts how companies really work?
Descriptive argument
29. Cross-cultural contradictions arise due to
Differences between home and host countries' ethical standards
50. Which of the following is not a constituency-building strategy tool
Direct communication
When government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate govt, these orders are called
Economic sanctions
(T or F) A national health care policy is an example of an economic policy.
False
(T or F) 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
False
(T or F) Businesses cannot expect to be profitable while adhering to ethical principles of conduct
False
(T or F) Ethical ideas are present in all societies, all organizations, and all individual persons.
False
(T or F) In all cases, businesses are unable to exert enough influence over government leaders to keep them in power.
False
Patterns of govt. collecting and spreading funds to stimulate or support the economy fall under which type of policy?
Fiscal
Describe social, monetary, and ethical policies
Fiscal policy: patterns of government collecting and spending funds to stimulate or support the economy. Monetary policy: policies that affect the supply, demand, and value of a nation's currency. Social policy: policies that concern social services for citizens.
The reason(s) behind a corporate political strategy might be to
Focus on limiting a competitor's progress, further a firm's economic survival or growth, exercise their voice in government affairs
The drivers of stakeholder engagement are
Goals, motivation, and operational capacity
35. Which entity enforces rules to balance the relationships between business and society?
Government
21. An issue's public profile indicates to managers
How significant an issue is for the organization, but it does not tell them what to do
Supporters of advocacy advertisements believe that they
Identify a company as an interested and active stakeholder and can help mold public opinion on a particular policy issue
30. Business managers need a set of ethical guidelines to help them
Identify and analyze the nature of an ethical problem
A govt is being asked to regulate driving distractions is an example of a public policy
Input
11. A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing long-term value for its
Investors
13. All of the following are external stakeholders of the firm except
Managers
39. When the marketplace does not adjust for the full costs of a firm's behavior, this is called
Market failure
Rules that affect supply, demand, and value of nation's currency refer to which type of public policy?
Monetary
A non-market stakeholder of business is exemplified by which of the following?
Nongovernmental organizations
What was the effect of the citizens united decision to allow direct unlimited contributions from businesses to politicians?
Political spending by corporations increased dramatically
16. Particular stakeholders stand out to managers when they exhibit
Power, loyalty, and legitimacy.
40. Economic regulations are illustrated by which action?
Preventing anticompetitive business practices
What role does social media play in stakeholder engagement?
Provides forum for firm to share info. with public via blogs and press release, offer a mechanism for public to voice their opinions of firm and products via reviews, make stakeholder communications faster and more effective
36. Cooperation between business and government often occurs when
Regulations set standards that apply to all firms, rules build consumer confidence in product safety, barriers to entry help maintain a competitive advantage
31. At the core of rights reasoning is the belief that
Respecting others is the essence of human rights
When something stands out from a background is seen as important, or draws attention it is
Salient
Stakeholder groups can include
Shareholders, business support groups, environmental activists
The fiduciary duty of managers benefits a firm's
Shareholders, customers, employees.
Since 1960, what was the growth trend in the U.S regulatory apparatus?
Significantly increased
By raising and lowering the interest rates at which private banks borrow money from the govt., the Federal Reserve Banks influences:
Size of nation's money supply, value of dollar, investor confidence
20. The role of special interest groups is an important element in acquiring intelligence from which environment?
Social
27. Businesses are expected to be ethical in their relationships with
Stockholders, customers, competitors
32. 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
46. The job of a business lobbyist is to represent
The company by influencing the government policy
47. What is one disadvantage to business
The contribution amount is capped at fairly low levels
As a factor of moral intensity, how does proximity of an issue affect the decision maker?
The greater the empathy, the higher the intensity
One concern of critics and regulation is
The high cost to small and manufacturing businesses
What is the primary reason that stakeholder coalitions form?
The stakeholder interest(s) of different group coincides
People's ethical principles come from
Their religious background, family, and education
37. Why should companies be concerned when doing business with questionable governments?
They might indirectly support the illegitimate controlling power
26. What normative reason is there for business to be ethical, according to Figure 5.1?
To comply with legal requirements
49. Why do businesses use direct communications, like plant visits, with political leaders?
To improve the officials' understanding of the business
(T or F) Economic regulations aim to modify the normal operations of the free market and the forces of supply and demand.
True
(T or F) How a business reacts to specific government policy often depends on if they would be helped or hurt by the rules
True
(T or F) If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree.
True
(T or F) Understanding and responding to changing societal expectations is a business necessity.
True
What contribution limits are in place for a Super PAC?
Unlimited amounts from groups or individuals