MGMT 320 - Vitaly *cue chest smack*

According to Kohlberg's approach, which statement characterizes the moral reasoning typically found in a child? A) "I'll scratch your back, if you'll scratch mine." B) "When in Rome, do as the Romans do." C) "Seek the greatest good for the greatest number." D) "Respect the rights of others."

"I'll scratch your back, if you'll scratch mine."

Examples of illegal business behavior include: A) A chief finance officer telling her mother to buy stock the day before a company's increased profits are announced. B) Recalling a defective product after numerous consumers were injured while using the product. C) A chief executive officer playing golf with a competitor, government official, and a U.S. senator. D) Refusing to develop and distribute a comprehensive company code of ethics.

A chief finance officer telling her mother to buy stock the day before a company's increased profits are announced.

Who wrote about "an invisible hand" that worked toward the collective good of society as a whole? A. Karl Marx B. John D. Rockefeller C. Adam Smith D. Steven Jobs E. Milton Friedman

Adam Smith

An effective public affairs function must: A) Build, develop, and maintain enduring stakeholder relationships. B) Influence stakeholders through the use of information. C) Implement grass roots managing techniques. D) All of the above.

All of the above

The components of a typical issues management system include: A) Issues identification and research. B) Policy options, selection and strategy. C) Program design and implementation. D) All of the above.

All of the above

The core components upon which a company's ethical performance depends include: A) The values and virtues of the managers. B) The personal character of the managers and employees. C) The traditions, attitudes, and business practices built into a company's culture. D) All of the above

All of the above

The fiduciary duty of managers benefit a firm's A) Stockholders. B) Customers. C) Employees. D) All of the above.

All of the above

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups: A) May honestly and genuinely use different sources of information. B) May rank various rights in different ways. C) May not share the same meaning of justice. D) All of the above.

All of the above

What stakeholder group(s) can exercise legal power? A) Employees. B) Customers. C) Shareholders D) All of the above.

All of the above

Which of the following would be a valid criterion for making an ethical decision? a. Choosing the alternative which creates the greatest good for the greatest number of people. b. Choosing the alternative that most effectively fulfills the manager's most important obligations. c. Choosing the alternative that most completely follows the law. d. All of the above are valid criteria for making ethical decisions.

All of the above are valid criteria for making ethical decisions.

A stakeholder is defined as a. An entity that is either benefited or burdened by the actions of the organization. b. The legal owner of the firm. c. Anyone who is legally liable for the actions of the firm. d. Anyone who is morally responsible for the actions of the firm.

An entity that is either benefited or burdened by the actions of the organization.

What has led companies to create specialized staff departments to manage external affairs? A. Mandated government regulations. B. Increasingly complex relationships between organizations and their stakeholders C. Pressure from the media. D. None of the above

B. Increasingly complex relationships between organizations and their stakeholders.

Early issues identification enables a company to do which of the following? A) Build "political capital" before it is needed. B) Decrease good will with company allies. C) Focus on changing operational procedures. D) Change media relations.

Build "political capital" before it is needed.

Which of the following best characterizes the relationship between business and society?

Business and society each influence each other

The first phase of the public issue life cycle occurs because of

Changing stakeholder expectation

Which of the following would be a valid criterion for making an ethical decision? Choosing the alternative which creates the greatest good for the greatest number of people Choosing the alternative that most effectively fulfills the manager's most important obligations Choosing the alternative that most completely follows the law All of the above are valid criteria for making ethical decisions

Choosing the alternative which creates the greatest good for the greatest number of people

Stakeholders have been able to form international coalitions more successfully through use of: A) Government regulation. B) Community involvement. C) Communications technology. D) Unions.

Communications technology

Customer environmental intelligence includes: A) Demographic factors. B) An analysis of the firm's competitors. C) New technological applications. D) The cost of producing consumer goods.

Demographic factors

Which argument calls stakeholder management a practical matter which realistically depicts how companies really work? A) Descriptive argument. B) Instrumental argument. C) Normative argument. D) Fiduciary argument.

Descriptive Argument

Cross-cultural contradictions arise due to: A) The emergence of a developing country's economic power. B) Religious differences practiced by business executives. C) Differences between home and host countries' ethical standards. D) All of the above.

Differences between home and host countries' ethical standards.

Which of the following is NOT generally regarded to be a stakeholder of a firm? Suppliers CEOs Environment Employees Government

Environment

The idea that there are no universal ethical values but that each culture determines these values is a basic tenet in:

Ethical relativism

"Enriches a few at the expense of many" - this is one of the principles of the Market Capitalism Model. (T/F)

False

. Socialism accepts only the basic values of capitalism. (T/F)

False

A business needs to be responsive to its economic environment but not to its non-economic environment. (T/F)

False

A public issue exists when there is agreement between the stakeholders' expectations of what an institution should do and the actual performance of those businesses. (T/F)

False

Adam Smith used the word "capitalism" often in his published writings. (T/F)

False

Businesses and society are independent of one another. (T/F)

False

Corporate social responsibility has a definite, universal meaning. (T/F)

False

Ethics are always based on religious beliefs... (T/F)

False

In general, Rockefeller was ethical person because he donated huge money to the Church. (T/F)

False

Kant's categorical imperative is an ethical guideline that allows a manager to be flexible and act depending on the situation. (T/F)

False

Kohlberg's Six Stages of Morality and Ethical Judgments are the best approach to figure out ethical and unethical decisions. (T/F)

False

Large corporations often find stronger restraints on their operations in foreign countries. (T/F)

False

Only the CEOs' spiritual perspective should be acceptable in the workplace. (T/F)

False

Respecting others, except those with whom we disagree or dislike, is the essence of ethical rights reasoning. (T/F)

False

Socialism accepts the basic values of capitalism. (T/F)

False

The U.S. Constitution discourages pluralism. (T/F)

False

The idea of a classless society in which property is owned collectively by the people is a basic tenet in democracy. (T/F)

False

The idea of a classless society in which property is owned collectively by the people is a basic tenet in democracy. (T/F)

False

The industrial revolution decreased the gap between the rich and poor around the world. (T/F)

False

The structures and processes in a society that make and apply policies and rules are called business. (T/F)

False

The vast majority of the poor people on earth live in economies that have been transformed by industrial growth. (T/F)

False

The vast majority of the poor people on earth live in economies that have been transformed by industrial growth. (T/F)

False

Trade liberalization occurs when nations promote trade by easing tariff restrictions but not non-tariff restrictions. (T/F)

False

What is right or wrong in a business decision involving ethical concerns is always a clear decision. (T/F)

False

When a society is ruled by people who are smart and wealthy, this is called socialism. (T/F)

False

The idea that the sole responsibility of a business is to maximize profits while acting within the law is a fundamental tenet in: a. Scientific philanthropy b. Friedmanism c. Blue washing d. The service principle

Friedmanism

The study of phenomena that move through time is called: History ideology ideas theory

History

What has led companies to create specialized staff departments to manage external affairs?

Increasingly complex relationships between organizations and their stakeholders

What has led companies to create specialized staff departments to manage external affairs?

Increasingly complex relationships between organizations and their stakeholders.

A stakeholder analysis: A) Creates equality among all stakeholder interests. B) Allows managers to examine two primary questions. C) Involves understanding the nature of stakeholder interests. D) All of the above.

Involves understanding the nature of stakeholder interests

Which of the following statements is not true of managing public issues? Managers have less influence on a public issue as it evolves. Late arrival in the public affairs cycle ensures a more acceptable outcome for the company. Organizations can create a system that monitors issues as they emerge in order to minimize negative effects. Companies rarely have full control of a public issue.

Late arrival in the public affairs cycle ensures a more acceptable outcome for the company.

Applying one method of ethical reasoning to a situation: A) May lead to an incomplete understanding of the matter. B) Will allow the decision-maker to perform a cost-benefit analysis. C) Will respect the human rights of the persons involved. D) All of the above

May lead to an incomplete understanding of the matter.

When a manager makes ethical decisions based on what he feels he can get away with given his power in the organization's hierarchy, he is using which ethical principle? Categorical imperative intuition ethic might-equals-right ethic disclosure rule

Might-equals-right ethic

Stakeholders that are affected by a firm's actions but do not engage in direct economic exchange with a firm are known as

Nonmarket stakeholders

Stakeholders that are affected by a firm's actions but don't engage in direct economic exchange with a firm are known as:

Nonmarket stakeholders

The entities that have a relationship with a corporation in such a way that they are affected immediately and powerfully by the actions of the corporation are called the:

Primary stakeholders

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights.

People everywhere depend on ethical systems to tell them whether their actions are:

Right or wrong

A giant step is taken toward improving ethical performance throughout the company when: A) The firm hires a university ethics professor to lecture employees on moral philosophy. B) Senior-level managers signal to employees that they believe ethics is a high priority. C) The Justice Department launches an investigation of the firm's pricing practices. D) A consumer hot line is created and staffed 24 hours a day.

Senior-level managers signal to employees that they believe ethics is a high priority.

Which model describes business as responding primarily to economic forces in society?

The Market Capitalism model

The public affairs manager is generally a member of:

The company's senior management team

The public affairs manager is generally a member of: A. The media. B. The company's human resources department. C. The company's senior management team D. A consulting company. E. A Government official.

The company's senior management team

Which of the following best describes the relationship between business and government? The government is only a stakeholder for a very small number of companies (e.g. companies based in Washington D.C.) The government is one example of a business's many stakeholders Unlike groups such as employees and customers, the government is not a stakeholder of any business Business is a stakeholder of the government, but not vice versa

The government is one example of a business's many stakeholders

Which of the following stakeholder groups can be said, on average, to have the most economic power over a company? The media suppliers future generations political parties environment

The media

Which of the following is NOT true about justice reasoning? The reasoner is interested in the net value of benefits. The reasoner considers who pays the costs and who receives the benefits. The reasoner seeks a fair distribution to all affected. The reasoner relies upon some accepted rule or standard.

The reasoner is interested in the net value of benefits.

Which of the following models emphasizes that corporations benefit or burden a number of persons, groups and entities both directly and indirectly? Market capitalism model the stakehodler model attribution theory dominance model

The stakeholder model

The purpose of the U.S. Foreign Corrupt Practices Act's requirement of full disclosure of the company's relations with sales agents and government officials is: To prevent bribery and other legally questionable payments. To prevent exports of U.S.-made goods. To boost exports of U.S.-made goods. To prevent piracy of copyrights.

To prevent bribery and other legally questionable payments.

A social contract between business and society gives this relationship a moral basis for its operation. (T/F)

True

All societies have mechanisms to control power. (T/F)

True

BCG is the study of business, government, and society and its importance for managers. (T/F)

True

Business managers should use all three methods of ethical reasoning, utility, rights, and justice to better understand ethical issues at work. (T/F)

True

Changes in the business environment can sometimes result from unknown and unpredictable causes. (T/F)

True

Economic activity is a geophysical force in the society. (T/F)

True

Ethical ideas are present in all societies, all organizations, and all individual persons. (T/F)

True

Human rights issues have become more prominent and important for business. (T/F)

True

In US law, managers are considered Fiduciaries of the owners of the firms and have an obligation to run the business in their interest (T/F)

True

Increases in business mergers are caused by changes in the economic environment of the society that create incentives to combine businesses. (T/F)

True

On a deep level, corporate power creates many indirect effects on the society in which it operates. (T/F)

True

Stakeholder expectations are a mixture of the peoples' opinions, attitudes and beliefs about what constitutes reasonable business behavior. (T/F)

True

Stakeholders involved with one part of a company often may have little or no involvement with another part of a company. (T/F)

True

The Sarbanes-Oxley Act requires that firms maintain high ethical standards in how they conduct and monitor business operations. (T/F)

True

The conventionalist ethic is often a justification for questionable behavior by managers. (T/F)

True

The doctrine of the mean in ethics is a fundamental teaching of Aristotle. (T/F)

True

The ethical principle of equal freedom asks the manager to ask himself if his actions will prevent other workers from doing what they have a right to do. (T/F)

True

The force behind a company's actions is called its power. (T/F)

True

The general public generally believes that a business has social responsibilities beyond merely making a profit. (T/F)

True

The idea that different cultures have different ethical values is called the theory of ethical relativism. (T/F)

True

The modern nation-state arose out of the ruin of the Roman Empire. (T/F)

True

The primary purpose of a business is to make a profit by providing products that satisfy human needs. (T/F)

True

The social contract is an unwritten agreement between people in a society which gives people an opportunity to live in peace with each other. (T/F)

True

Top managers are the strongest influence on the integrity of the company's managers. (T/F)

True

An enduring belief about what important choices in how we live are "correct" is called a(n): Value Institution ideology idea

Value

A society that has its economic, political, and cultural values based on agriculture is called:

agrarian

Which of the following explains why ethical decisions (decisions involving ethical issues) can be so difficult to make? because there are no universal moral standards because knowledge of the future consequences of our actions is inherently limited because ethical decisions require a deep knowledge of philosophy because all moral standards have equal validity because ethical decisions are completely unrelated to legal and financial decisions

because knowledge of the future consequences of our actions is inherently limited

When a group of consumers places pressure on a company to make efforts to reform its policies by refusing to buy this company's products, this is called a(n): boycott plutocratic effort progressive movement effect usury

boycott

Which of the following best characterizes the relationship between business & society?

business & society influence each other

An economy in which private individuals and corporations own the methods of production and compete in a free market within limited restraints by government is called: A. capitalism. B. socialism. C. communism. D. democracy.

capitalism

The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with which ethical principle? Might-equals right ethic compensatory justice intuition ethic rights ethic

compensatory justice

The duty of a corporation to avoid harm to the assets of society is called:

corporate social responsibility.

The idea that pay raises should be based on objective performance criteria instead of the "buddy system" is fundamental to which ethical principle? Proportionality ethic distributive justice might-equals-right ethic retributive justice

distribute justice

Which of the following is a primary stakeholder of the firm

employees

The idea that there are no universal ethical values but that each culture determines these values is a basic tenet in

ethical relativism

The economic philosophy that rejects the intervention of government in the operations of markets is called:

laissez-faire.

The rightful use of business power is called: legitimacy pluralism elite power environmental power

legitimacy

When a society is ruled by people who are wealthy, it is called a(n): confidence gap boycott plutocracy populist movement

plutocracy

The ability of a business to influence government is called: Political Power Social Power the doctrine of natural rights technological power

political power

The entities that have a relationship with a corporation in such a way that they are affected immediately and powerfully by the actions of the corporation are called the

primary stakeholders

An entity that affects / is affected by an organization's decisions, policies & operation is called a:

stakeholder

An entity that's either benefitted / burdened by the actions of a corporation is called a

stakeholder

"Do unto others as you would have them do unto you" is the basic premise in which ethical principle? the Golden Rule Doctrine of the mean Organization ethic rights ethic

the Golden Rule

The idea that hard work and acting in a virtuous manner will result in the approval of God is called:

the Protestant ethic

In considering whether or not to do a certain action based on ethical reasoning, when the manager asks herself: "If I act in this way, would my family approve of my actions?", she is applying which principle? ends-means ethic intuition ethic organization ethic the others test

the others test