Exam 1 (ch. 1-3) Business Ethics

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

A company breaking past records by maximizing quarterly profits.

Positive reputation can be valued as an intangible corporate:

Asset.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats.

Customer environmental intelligence includes:

Demographic factors.

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

Descriptive argument.

The drivers of stakeholder engagement are:

Goals, motivation, and operational capacity.

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

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

Investors.

A stakeholder analysis:

Involves understanding the nature of stakeholder interests.

The instrumental argument says stakeholder management is:

More effective as a corporate strategy.

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

Nongovernmental organizations.

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.

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

Ventures.

The role of special interest groups is an important element in acquiring intelligence from which environment?

Social.

Interactions between business and society occur:

Within a finite natural ecosystem.

Stakeholder engagement is, at its core, a:

relationship

A corporation's issue management activities are usually overseen by:

Both the board of directors and top management levels.

The iron law of responsibility says that:

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

All of the following are external stakeholders of the firm except:

Managers

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

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

Consumer through high prices.

The emergence of a public issue indicates that:

A gap may be developing between what stakeholders expect and what an organization is actually doing.

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.

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.

A leadership role in addressing emerging management issues is often taken by:

The public affairs department. The government relations department. The department of sustainability or environmental, health and safety.

Over time, the nature of business's relationship with its stakeholders often:

Evolves through a series of stages.

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.

Companies that believe they can make decisions unilaterally, without taking into consideration their impact on others, are:

Inactive.

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.

Global social audit standards concentrate on:

Internally focused economic benefits for the firm. Externally focused social benefits for the environment. Externally focused social benefits for key stakeholders.

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.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises.

Good corporate citizens:

Strive to conduct all business dealings in an ethical manner. Make a concerted effort to balance the needs of all stakeholders. Work to protect the environment.

Once an organization has implemented the issue management program, it must:

Study the results and make necessary adjustments.

Which statement is not correct about the business-society interdependence?

Actions by governments rarely affect business.

Stakeholder groups can include:

Environmental activists, shareholders, business support groups

Stakeholders have been able to form international coalitions more successfully through use of:

Communications technology.

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

A market stakeholder is exemplified by which of the following?

Creditors.

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

Develop sustainable business strategies.

What stakeholder group(s) can exercise legal power?

Employees. Customers. Shareholders.

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

Political.

What is the public issue in the case Businesses Respond to the Movement for School Safety?

Second amendment rights and the safety of students in schools.

The relevance and importance of stakeholders and their issues is known as:

Stakeholder materiality.