Capstone Chap.10 Business Ethics, Social Responsibility, and Environmental Sustainability, Capstone Chap.11 Global and International Issues

12) One of the dangers of remaining a local competitor is that more aggressive companies will use their global growth to capture economies of scale and learning. True or false

True

17) The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global. True or false

True

6) Integrating ethical decision making into the performance appraisal process is one way that firms can align ethical and strategic decision making. T F

True

8) ________ refers to refers to employees reporting any unethical violations they discover or see in the firm. A) Whistle-blowing B) Bribery C) Adultery D) Sustainability E) Stewardship

Whistle-blowing

1) The ________ competitive opportunities and threats that face a multinational corporation are almost limitless. A) social B) cultural C) environmental D) political E) all of the above

all of the above

18) Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could A) be fired. B) be demoted. C) be held indirectly responsible for their firm's pollution. D) be turned on in their firm's quest for leniency. E) all of the above

all of the above

28) Jeff Wells of the National Audubon Society asks "Why should we be willing to watch ________ destroyed any more than allowing a great work of art to be destroyed?" A) coral reefs B) economic progress C) natural history D) shark habitat E) songbirds

coral reefs

13) Japan's prescription for dealing with problems associated with an aging society includes A) relying on large-scale immigration. B) providing incentives for its elderly to retire at ages 55 to 60. C) reversing the old-fashioned trend of keeping women at home. D) enacting laws against discrimination based on age. E) phasing in a shift from age 55 to age 60 as the date when a person may begin receiving a pension.

reversing the old-fashioned trend of keeping women at home.

10) Strengths of competitors in foreign lands are often ________, and weaknesses are often ________. A) overestimated; overestimated B) overestimated; underestimated C) underestimated; underestimated D) underestimated; overestimated E) none of the above

underestimated; overestimated

7) Which of the following is a potential advantage of conducting international operations? A) Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. B) Dealing with two or more monetary systems can complicate international business operations. C) Differing language, culture, and value systems can make communication difficult. D) Gaining an understanding of regional organizations is difficult but is often required in doing business internationally. E) All of the above

Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.

3) Which of the following is NOT a way that companies can help create an ethical culture in their organization? A) Outlining ethical expectations B) Giving examples of ethical situations that commonly occur in their businesses C) Providing code-of-conduct manuals D) Creating interactive exercises that pose hypothetical ethical dilemmas E) Discouraging whistle-blowing

Discouraging whistle-blowing

14) Some strategists agree with Ralph Nader, who asserts that organizations have no obligation to do any more for society than is legally required. T or F

False

4) Bad ethics can derail all but the best strategic plans. T F

False

Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide. True or false

False

26) ________ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner. A) ISO 14001 B) EMS 14000 C) UN 5000 D) SEC 100 E) A sustainability report

ISO 14001

25) All of the following statements are true EXCEPT A) ISO is the world's largest developer of sustainability standards. B) ISO standards are widely accepted all over the world. C) ISO has legal authority to enforce its regulations' implementation. D) ISO standards are voluntary. E) ISO itself does not regulate or legislate.

ISO has legal authority to enforce its regulations' implementation.

19) An increasing number of U.S. companies are reincorporating in foreign countries to reduce their tax burden, doing this typically by acquiring a foreign firm. What is the process/transaction called? A. Conversión B outsourcing C reeengineering D inversion E realiagnment

Inversion

8) ________ can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. A) Economies of scale B) Joint ventures C) Low-cost production facilities D) Reduced tariffs E) Domestic operations

Joint ventures

20) Which of the following is NOT true regarding European workers and workplaces? A) Most European workers are unionized. B) Most European workers enjoy more frequent vacations and holidays than U.S. workers. C) A 90-minute lunch break plus 20-minute morning and afternoon breaks are common in European firms. D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems. E) Many Europeans find the notion of team spirit difficult to grasp

Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems.

13) The social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats that face a multinational corporation are almost limitless. True or false

True

A global strategy means considering individual countries distinctly when designing, producing, and marketing products.

With global needs in mind rather than considering just a home country and integrating actions against competitors into a worldwide strategy plan

3) Communication between domestic headquarters and overseas operations is often made difficult by A) geographic distance. B) cultural differences. C) variations in business practices. D) national differences. E) all of the above

all of the above

6) The strategic-management process for multinational firms is ________ for purely domestic firms, but the process is ________ for the purely domestic firms. A) conceptually the same as; more complex B) conceptually the same as; more simple C) conceptually different than; more simple D) conceptually different than; more complex E) conceptually the same; less important

conceptually the same as; more simple

21) A proactive environmental policy is likely to lead to A) higher cleanup costs. B) conservation of energy. C) reduced customer loyalty. D) numerous liability suits. E) higher medical costs.

conservation of energy.

1) Bad ethics can ________ strategic plans. A) derail all but the best B) derail even the best C) derail only poorly-intentioned D) derail only ill-conceived E) never affect

derail even the best

2) The various opportunities and threats that face multinational corporations are almost limitless, and the number and complexity of these factors ________ the number of products and the number of geographic areas served. A) decrease dramatically with B) dramatically increase with C) drop slightly with D) are constant despite E) are unaffected by

dramatically increase with

17) It is ________ for a business to provide a sustainability report annually to the public. A) good business B) irresponsible C) a decreasing trend D) unethical E) poor planning

good business

15) Most economists argue that protectionism ________ the world economy because it ________ trade among countries. A) helps; inhibits B) helps; encourages C) harms; inhibits D) harms; encourages E) doesn't impact; doesn't affect

harms; inhibits

10) All of the following are reasons that workplace romance can be detrimental to workplace morale and productivity EXCEPT A) favoritism complaints can arise. B) personal arguments can lead to work arguments. C) whispering secrets can lead to tensions and hostilities among coworkers. D) increased quality and quantity of work can occur. E) sexual harassment charges may ensue, either by the involved female or a third party.

increased quality and quantity of work can occur

18) High corporate tax rates A) encourage investment in new factories. B) provide strong incentives to avoid and evade taxes. C) attract foreign investors. D) make a nation a desirable location for investment. E) have been a growing trend since the 1980s.

provide strong incentives to avoid and evade taxes.

24) All of the following are mentioned by the authors as environmental strategies that a firm might adopt EXCEPT A) reinvesting in environment-damaging businesses. B) including an environmental representative on their board of directors. C) implementing bonuses for favorable environmental results. D) incorporating environmental values in mission statements. E) conducting regular environmental audits.

reinvesting in environment-damaging businesses.

11) Workplace romance A) is defined as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. B) is defined as illegal by the Equal Employment Opportunity Commission. C) should be strictly forbidden by organizations. D) simply happens so organizations should determine how to best manage the phenomenon. E) is an intimate relationship between two employees, one of whom is not consenting.

simply happens so organizations should determine how to best manage the phenomenon.

12) Social policy can best be defined as A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups. B) a document providing behavioral guidelines that cover daily activities and decisions within a firm. C) an SEC mandate to report any unethical behavior. D) the legal requirement to reveal how a firm's operations impact the natural environment. E) mandatory technical standards that result in an environmental management system.

the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

14) While multinational corporations face almost limitless social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats, the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served. True or false

False

16) The drive to improve the efficiency of global business operations is leading to lesser functional specialization. True or false

False

27) Despite greater interest in sustainability, uniform standards defining environmentally responsible company actions are only "`slowly" being incorporated into the legal landscape. T or f

False

5) Primary responsibility for ensuring ethical behavior rests with middle- and low-level managers, since they are in a position to influence many employees. T or f

False

7) Monitoring departmental and corporate performance regarding ethical issues can cause firms to misalign ethical and strategic decision making. T or f

False

9) Most firms warn managers and employees that reporting an ethical violation by others could cause them to be discharged. T or F

False

23) Which is NOT a reason why preserving the environment should be a permanent part of doing business? A) Public opinion demanding that firms conduct business in ways that preserve the natural environment has been weakening. B) Environmental advocacy groups now have over 20 million Americans as members. C) Federal and state environmental regulations are changing rapidly and becoming more complex. D) Liability suits and fines against firms having environmental problems are on the rise. E) Consumer demand for environmentally safe products and packages is high.

Public opinion demanding that firms conduct business in ways that preserve the natural environment has been weakening.

15) Firms should strive to engage in social activities that have no economic benefits, to avoid their being viewed as public relations ploys. True or FAlse

True

16) A document that discloses to shareholders information about a firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as A) a code of ethics. B) a sustainability report. C) an EMS. D) ISO 14000. E) green terminology.

a sustainability report.

22) Sustainability refers to the extent that an organization's operations and actions ________ the natural environment. A) protect B) mend C) preserve D) reflect good stewardship of E) all of the above

all of the above

4) Mass communication and high technology have ________ in diverse cultures worldwide. A) created similar patterns of consumption B) resulted in highly individualized patterns of consumption C) rendered patterns of consumption identical D) had little to no effect on patterns of consumption E) ignored patterns of consumption

created similar patterns of consumption

2)Simply having a code of ethics A) will ensure ethical business behavior. B) eliminates the need for periodic ethics workshops. C) is all that is necessary to sensitize people to workplace circumstances in which ethics issues may arise. D) is insufficient to guarantee that employees behave in an ethical manner. E) secures an ethics culture in the workplace.

is insufficient to guarantee that employees behave in an ethical manner.

19) It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape. A) more and more difficult for firms to make "green" claims when their actions are not substantive, comprehensive, or even true B) increasingly easy for firms to get away with placing "green" terminology on their products without any oversight C) customary for firms to use terms like "organic," "green," or "earth-friendly" when their products don't warrant it D) more common for consumers to be cynical about corporate environmental claims E) impossible for firms to omit "green" terminology from their labels

more and more difficult for firms to make "green" claims when their actions are not substantive, comprehensive, or even true

20) In an effort to manage ecological challenges, many companies are A) moving environmental affairs from the staff side of the organization to the line side. B) moving environmental affairs from the line side of the organization to the staff side. C) making the chief operating officer report directly to the corporate environmental group. D) omitting an environmental representative from their board of directors. E) purging environmental values from their mission statements.

moving environmental affairs from the staff side of the organization to the line side.

9) A firm's power and prestige in domestic markets may be significantly enhanced if it competes globally A) which can translate into improved negotiating power among important groups. B) though this rarely results in a practical advantage. C) but this can hurt its bargaining power with suppliers and distributors. D) yet this does nothing to improve its position with creditors. E) which can alienate the firm from its domestic creditors, suppliers, and distributors.

which can translate into improved negotiating power among important groups.