mngt 482 final
Public policy is a basic set of goals, plans and actions undertaken by: A. Political lobbyists. B. A government. C. Business advocacy groups. D. Police and fire departments.
B. A government.
A conception of right and wrong is: A. Impossible to know. B. The definition of ethics. C. Determined by power. D. Based on stakeholder dialogue.
B. The definition of ethics.
Reregulation is: A. The adoption of regulation in another country to promote trade. B. Necessary since all regulation has a time limit. C. The increase or expansion of government regulation. D. The shifting of regulation to the state level from the national level.
C. The increase or expansion of government regulation.
As of 2012, the B Corporation status has been legally recognized in how many states? A. All 50 states. B. The original 13 states. C. Fifteen states. D. Seven states.
D. Seven states.
Which of the following is not true about justice reasoning? A. The reasoner is interested in the net value of benefits. B. The reasoner considers who pays the costs and who receives the benefits. C. The reasoner seeks a fair distribution to all affected. D. The reasoner relies upon some accepted rule or standard.
A. The reasoner is interested in the net value of benefits.
Recipients of the corporate ethics awards show that: A. Awards are based on economic power, not ethical performance. B. Firms can be financially successful and ethically focused. C. Being legally compliant results in receiving an ethics award. D. Improving ethical performance is very costly, but bolsters a firm's reputation
B. Firms can be financially successful and ethically focused.
Governments hold the power to: A. Grant permission for only specific business activity. B. Grant or refuse permission for many types of business activity. C. Refuse permission for only government funded activity. D. None of the above
B. Grant or refuse permission for many types of business activity.
In the United States and Latin America, ethics policies were found to be primarily: A. Informational - providing guidance for recommended ethical activity with the company. B. Instrumental - providing rules and procedures for employees to follow to adhere policy and law. C. Social - providing a framework for ethical interaction between employees and customers. D. General - providing basic definitions of ethical decision-making.
B. Instrumental - providing rules and procedures for employees to follow to adhere policy and law.
Grameen Bank in Bangladesh is one of the most recognized: A. B Corporations. B. Microfinance institutions. C. Yogurt producers. D. Retail providers
B. Microfinance institutions.
When a bank employee makes trades using the firm's money without its authorization, the practice is called: A. Rogue accounting. B. Rogue trading. C. Ponzi scheme. D. Imbalanced banking.
B. Rogue trading.
A goal of the consumer movement is to make consumer power: A. Exceed the rights and powers of firms that sell goods and services. B. Exceed the rights and powers of the Food and Drug Administration. C. An effective counterbalance to the rights and powers of firms that sell goods and services. D. An effective counterbalance to the rights and powers of the Food and Drug Administration.
C. An effective counterbalance to the rights and powers of firms that sell goods and services.
Advertising that is targeted to particular customers, based on their observed online behavior, is called: A. Targeted advertising. B. Tracking advertising. C. Behavioral advertising. D. Online advertising
C. Behavioral advertising.
By promoting the use of clean cookstoves in developing nations, a global alliance hopes to reduce: A. Deforestation, B. The burning of fossil fuels. C. Black carbon. D. Methane.
C. Black carbon.
Corporations have a role in establishing their community's: A. Tax base. B. Safety. C. Economic growth. D. All of the above.
C. Economic growth.
Which of the following statements is not true about the organization Consumer Reports? A. It is involved in activities promoting the interests of consumers. B. It conducts extensive tests on selected consumer products and services. C. It is supported by the federal government. D. It publishes the results of tests, with ratings on brand-name basis, in its magazine
C. It is supported by the federal government.
When undertaking social initiatives, a company: A. Must take out social responsibility insurance. B. Will always receive long-term profits. C. May sacrifice short-term profits. D. Risks going bankrupt in nearly all cases
C. May sacrifice short-term profits.
This occurs when financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers) who traditionally lacked access to banking or related services. A. Commercial banking. B. Macrofinancing. C. Microfinancing. D. Micro-entrepreneurship.
C. Microfinancing.
Aristotle argued: A. Self-control is the most virtuous of values. B. Faith is a road to charity and modesty. C. Moral virtue is a mean between two virtues. D. High-mindedness delivers human integrity.
C. Moral virtue is a mean between two virtues.
A business and its stakeholders coming together for face-to-face conversations about issues of common concern is: A. Stakeholder networks. B. Stakeholder motivation. C. Stakeholder systems. D. Stakeholder dialogue.
D. Stakeholder dialogue.
Which of the following limits the collection of information online from and about children under the age of 13? A. Federal Juvenile Safety Bill. B. Parents for the Safety of Children Act 2000. C. The "Do Not Collect" Bill of 2003. D. The Children's Online Privacy Protection Act
D. The Children's Online Privacy Protection Act
Deregulation is often: A. A politically popular idea. B. A politically unpopular idea. C. Seen during a Democratic federal administration. D. Found in European countries but not in the United States
A. A politically popular idea.
A social enterprise: A. Adopts social benefit as its core mission. B. Adopts profit maximization as its core mission. C. Can only be adopted by small firms. D. Does not use business strategies to improve environmental well-being.
A. Adopts social benefit as its core mission.
Which of the following is an example of a nonrenewable resource? A. Coal. B. Fresh water. C. Timber. D. Fish.
A. Coal.
Governments being asked to ban the use of cell phones by drivers are examples of a public policy: A. Input. B. Goal. C. Effect. D. Tool
A. Input.
A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is: A. Ozone. B. Carbon dioxide. C. Methane. D. Oxygen.
A. Ozone.
Subaru Automotive of America's effort to minimize waste is an example of: A. Pollution prevention. B. Product stewardship. C. Clean technology. D. None of the above
A. Pollution prevention.
All of the following values are present in most ethical decisions except: A. Be fair and just. B. Be respectful. C. Act responsibly. D. Be honest.
B. Be respectful.
An example of an early economic public policy was: A. The abolition of slavery. B. Public works projects of the Great Depression. C. The creation of the Homeland Security Office. D. President Johnson's Great Society programs.
B. Public works projects of the Great Depression.
Scientists believe that if the Montreal Protocol is honored the ozone layer will recover by: A. 2015. B. 2035. C. 2050, D. Never.
C. 2050,
Which of the following examples does not show a company guided by enlightened self-interest? A. A company providing the best quality product at a fair price. B. A company providing assistance to employees who attend evening college. C. A company breaking past records by maximizing quarterly profits. D. A company vice-president invited to attend a local community's town planning meeting
C. A company breaking past records by maximizing quarterly profits.
Because of the risks and opportunities public issues present, organizations need: A. A strong relationship with a lobbying firm or an in-house lobbying department. B. Executives to be rewarded with substantial bonuses as part of total compensation. C. A systematic way of identifying, monitoring, and selecting public issues. D. Tougher government regulations and oversight by political action committees.
C. A systematic way of identifying, monitoring, and selecting public issues.
One alternative to product liability lawsuits is called: A. Limited resolution. B. Punitive damages reform. C. Alternative dispute resolution. D. Consumerism
C. Alternative dispute resolution.
The issue management process has how may stages? A. Three. B. Four. C. Five. D. Six.
C. Five.
Around the world, government: A. Tends to cooperate with business. B. Tends to be in conflict with business. C. Sometimes cooperates and sometimes is in conflict with business. D. Tends to be controlled by business.
C. Sometimes cooperates and sometimes is in conflict with business.
Which of the following is not an example of a white-collar crime? A. Embezzlement. B. Check fraud. C. Theft. D. Money laundering
C. Theft.
In some cases, businesses have banded together to agree on how they will treat their customers. This is called: A. Code of regulation. B. Consumer affairs doctrine. C. Voluntary industry codes of conduct. D. Industry action standards.
C. Voluntary industry codes of conduct.
In which year was the first World Summit on Sustainable Development held? A. 1982. B. 1985. C. 1990. D. 1992.
D. 1992.
Businesses are expected to be ethical in their relationships with: A. Stockholders. B. Customers. C. Competitors. D. All of the above.
D. All of the above
Which of the following companies is being the most socially responsible? A. A company trying its best to operate in a way which will help local students get education and jobs. B. A company halting its production of toxic gases after it discovered that people objected to this practice and threatened legal action. C. A company trying to maximize its profits and then contributing to an environmental protection fund. D. A company changing its product design to comply with regulatory mandates
A. A company trying its best to operate in a way which will help local students get education and jobs.
The emergence of a public issue indicates that: A. A gap has developed between what stakeholders expect and what an organization is actually doing. B. Technology is forcing ethics and business strategy closer together. C. Consumers are unaware of how an organization's actions affect them. D. All of the above.
A. A gap has developed between what stakeholders expect and what an organization is actually doing.
Which of the following statements is true of air pollution? A. Air pollution occurs when more pollutants are emitted into the atmosphere than can be safely absorbed and diluted by natural processes. B. A majority of the people in the U.S. breathe unsafe air for at least part of the year. C. Air pollution caused by particulate matter is responsible for fewer than 600 premature or unnecessary deaths annually. D. The EPA has identified hundreds of "criteria" pollutants, relatively common harmful substances that serve as indicators of overall levels of air pollution.
A. Air pollution occurs when more pollutants are emitted into the atmosphere than can be safely absorbed and diluted by natural processes.
Depletion of the ozone layer, destruction of the rain forests, and species extinctions all have an impact on: A. All of society. B. A particular region. C. A particular nation. D. Only developing countries.
A. All of society.
Positive reputation can be valued as an intangible corporate: A. Asset. B. Liability. C. Charity. D. Expense
A. Asset.
Managers' understanding of government regulations is: A. Both a domestic and international issue. B. Primarily a domestic issue. C. Primarily an international issue. D. An international issue only for large firms.
A. Both a domestic and international issue.
A purchasing agent directing her company's orders to a firm which she received a valuable gift, is an example of: A. Conflict of interest. B. Ethical relativism. C. Moral development. D. Egotism.
A. Conflict of interest.
Executive conscience, acts of charity, and philanthropic funding are examples of: A. Corporate social stewardship. B. Corporate social responsiveness. C. Corporate/Business Ethics. D. Corporate/Global Citizenship.
A. Corporate social stewardship.
The "graying" of the population is an example of: A. Customer environment. B. Competitor environment. C. Economic environment. D. Social environment.
A. Customer environment.
With respect to fresh water, according to one estimate, if it were possible to eliminate pollution, capture all available fresh water, and distribute fresh water equitably: A. Demand would exceed supply within a hundred years. B. There would be a balance between demand and supply within a hundred years. C. Supply would exceed demand within a hundred years. D. None of the above.
A. Demand would exceed supply within a hundred years.
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.
A. Demographic factors.
The commitments of the Convention on Biological Diversity include: A. Developing national conservation strategies. B. Eliminating CFC production. C. Population control education. D. Massive irrigation projects in developing countries
A. Developing national conservation strategies.
Being able to continue their activities indefinitely, without altering the carrying capacity of the earth's ecosystem, is a characteristic of: A. Ecologically sustainable organizations. B. Concerned citizens. C. Codes of environmental conduct. D. Environmental regulations
A. Ecologically sustainable organizations.
According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on: A. Eight strategic radar screens. B. Six management templates. C. Eight process improvement models. D. Six ethical decision indicators.
A. Eight strategic radar screens.
Which of the following are examples of natural monopolies? A. Electric utilities and railroads. B. Cable television and the media. C. Internet services and trucking. D. None of the above.
A. Electric utilities and railroads.
The unspoken understanding among employees of what is and is not acceptable behavior is called: A. Ethical climate. B. Efficiency. C. Success. D. Rites and rituals.
A. Ethical climate.
Which of the following departments was established in 1914 and has been given additional powers to protect consumers over the years, including in the area of online privacy? A. Federal Trade Commission. B. Food and Drug Administration. C. Consumer Product Safety Commission. D. Antitrust Division of the Department of Justice.
A. Federal Trade Commission.
Economic policies include: A. Fiscal and monetary policies. B. Monetary and social assistance policies. C. Fiscal and social assistance policies. D. Policies initiated by the Federal Reserve System
A. Fiscal and monetary policies.
If a manger approaches ethics with benevolence in mind, he or she would stress what? A. Friendly relations with an employee. B. Company rules and procedures. C. Laws and professional codes. D. Economic efficiency.
A. Friendly relations with an employee.
Under the Sarbanes-Oxley Act, corporations are required to: A. Have executives vouch for the accuracy of a firm's financial reports. B. Have their audit committee comprised of only executives employed by the firm. C. Collect reimbursements from the U.S. government if financial restatements occur. D. All of the above.
A. Have executives vouch for the accuracy of a firm's financial reports.
Before deregulation, government agencies frequently: A. Held prices artificially high, shielding businesses from competition. B. Held prices artificially low, shielding consumers from selection. C. Encouraged overseas trade, shielding businesses from competition. D. Discouraged overseas trade, shielding consumers from selection
A. Held prices artificially high, shielding businesses from competition.
An issue's public profile indicates to managers: A. How significant an issue is for the organization, but it does not tell them what to do. B. Both how significant an issue is for the organization and exactly what to do. C. Exactly what to do without indicators of how significant an issue is for the organization. D. Any of the above depending on the organization type.
A. How significant an issue is for the organization, but it does not tell them what to do.
The iron law of responsibility says that: A. In the long run, those who do not use power responsibly will lose it. B. In the short run, sacrifice social goals for economic goals. C. Law is most important, more than social or economic responsibility. D. In the long run, economic responsibility leads to social responsibility.
A. In the long run, those who do not use power responsibly will lose it.
When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is called: A. Industry self-regulation. B. Privacy legislation. C. Consumer self-help. D. Business privacy regulation.
A. Industry self-regulation.
Which of the following organization's code of ethics advocates "loyalty to your organization, justice to those whom you deal and faith in your profession?" A. Institute for Supply Management. B. Institute of Certified Public Accountants. C. Financial Accounting Standards Board. D. Association for Computing Machinery.
A. Institute for Supply Management.
Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions? A. Legally marketing a pesticide abroad that has been banned in the U.S. B. Circumventing government regulations to ensure company profits. C. Hiring child workers in violation of civil law. D. False and misleading advertising claims.
A. Legally marketing a pesticide abroad that has been banned in the U.S.
Typically, ethics training is offered to: A. Managers. B. To the rank-and-file. C. Both managers and the rank-and-file. D. The Board of Directors only
A. Managers.
This company called its plan to tackle climate change "Plan A" because there is no "Plan B": A. Marks & Spencer, B. Walmart. C. Nike. D. Timberland.
A. Marks & Spencer,
A company who complies with the laws and regulations set by the government is: A. Meeting the minimum level of social responsibility expected by the public. B. Meeting the maximum level of social responsibility expected by the public. C. Not meeting government expectation. D. Following a practice of enlightened self-interest.
A. Meeting the minimum level of social responsibility expected by the public.
Proactive companies are: A. Much less likely to be blindsided by crises and negative surprises. B. Much more likely to be blindsided by crises and negative surprises. C. Just as likely to be blindsided by crises and negative surprises. D. Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder.
A. Much less likely to be blindsided by crises and negative surprises.
Hydraulic fracturing, or "fracking," has the following benefit: A. Natural gas burns more cleanly than either coal or oil. B. It is a risk-free form of natural gas extraction. C. It gives more businesses to sewage plants to clean contaminated water. D. There are no benefits to fracking
A. Natural gas burns more cleanly than either coal or oil.
A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is: A. Operating under the compliance-based approach. B. Practicing "tone at the top." C. Operating under the integrity-based approach. D. Operating under the instrumental policy approach.
A. Operating under the compliance-based approach.
A new imperative for governments, businesses and society is to: A. Preserve the global commons and assure its continued use. B. Assure fair access to the global commons for all individuals. C. Equalize the usage of the global commons among all nations of the world. D. Avoid the use of the global commons in order to preserve it for future use.
A. Preserve the global commons and assure its continued use.
Environmental justice is a movement to: A. Prevent inequitable exposure to risk, such as from hazardous waste. B. Identify polluters and require them to pay for the cleanup of their toxic waste. C. Reduce pollution at the source, rather than treat and dispose of waste at the "end of the pipe." D. Specifically restrict the use of dangerous pesticides which can pollute groundwater
A. Prevent inequitable exposure to risk, such as from hazardous waste.
The "right to be heard" assures that consumers' interests will: A. Receive full and sympathetic consideration. B. Be protected against fraudulent or misleading information. C. Be assured satisfactory quality and service at a fair price. D. Be given all the facts to make an informed choice
A. Receive full and sympathetic consideration.
Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility? A. Religious/ethnic beliefs. B. Social unrest/protest. C. Stakeholder pressures. D. Public policy/government regulations.
A. Religious/ethnic beliefs.
Which of the following is an argument against corporate social responsibility? A. Requires skills businesses may lack. B. Creates an imbalances between corporate power and its economic responsibility. C. Improves business value and reputation. D. A majority of stockholders are against it.
A. Requires skills businesses may lack.
Corporations working collaboratively with other businesses and concerned persons and organizations is an example of: A. Stakeholder networks. B. Stakeholder motivation. C. Stakeholder systems. D. Stakeholder salience.
A. Stakeholder networks.
Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty? A. Strict liability. B. Product liability. C. Consumer liability. D. Supplier liability.
A. Strict liability.
When environmentally proactive companies seek out imaginative, innovative new methods for reducing pollution and increasing efficiency, they are adopting which strategy? A. Technological innovation. B. Product differentiation. C. Green marketing. D. Cost savings
A. Technological innovation.
Consumers have become more dependent on businesses for product quality because: A. The complexity of products makes choices complicated for consumers. B. Instructions for use or care of product are provided in clear and simple language. C. Their technical competence allows them to inspect the products thoroughly. D. Competition has forced manufacturers to market lower-quality goods.
A. The complexity of products makes choices complicated for consumers.
Utilitarian reasoning primarily considers: A. The end results of an action. B. The rights of the unprotected. C. The distribution of benefits. D. Both A and C, but not B.
A. The end results of an action.
Which of the following is (are) core rights of consumers? A. The right to safety. B. The right to be represented. C. The right to purchase. D. All of the above.
A. The right to safety.
Which of the following statements is not true about the population? A. The world population will peak at over 11 billion people around the year 2100. B. For many thousands of years, population growth was gradual. C. Industrial production would have to quintuple over the next 40 years in order to maintain the same living standard that people have now, given expected population growth. D. Just 10,000 years ago, the earth was home to no more than 10 million humans, scattered in small settlements.
A. The world population will peak at over 11 billion people around the year 2100.
Cooperation between business and government often occurs when: A. They encounter a common problem or enemy. B. Business can afford it. C. Business is required by law to cooperate. D. Government has the support of the people.
A. They encounter a common problem or enemy.
Which of the following is a mission of the Food and Drug Administration? A. To assure the safety and effectiveness of a wide range of consumer products. B. To prohibit unfair or deceptive advertising. C. To ensure that packaging and labels contain all the necessary information. D. Inspection of meat, poultry, seafood, and produce
A. To assure the safety and effectiveness of a wide range of consumer products.
Many companies have argued that the evolution of strict liability has: A. Unfairly burdened them with excess costs. B. Decreased liability insurance rates. C. Increased corporate revenues and dividends. D. Changed top management's attitude about the consumer.
A. Unfairly burdened them with excess costs.
When the benefits of an action outweigh its costs, the action is considered ethically preferred according to: A. Utilitarian reasoning. B. Virtue ethics. C. Theological reasoning. D. Plato and Aristotle.
A. Utilitarian reasoning.
A prime social responsibility of business is to safeguard consumers: A. While continuing to supply them with goods and services they want. B. While maintaining high profit margins. C. By supplying consumers with products at the lowest possible cost. D. By providing new technology.
A. While continuing to supply them with goods and services they want.
Which statement characterizes the moral reasoning typically found in a child? A. "When in Rome, do as the Romans do." B. "I'll let you play with my toy if I play with yours." C. "Seek the greatest good for the greatest number." D. "Respect the rights of others."
B. "I'll let you play with my toy if I play with yours."
Once an issue has been identified, its implications must be: A. Acted upon. B. Analyzed. C. Segmented. D. Deleted
B. Analyzed.
Corporate social responsibility (CSR) means that a corporation should: A. Always forgo profit for the sake of the environment. B. Be held accountable for any of its actions that affect people, their communities, and their environment. C. Abandon its other missions. D. Put social responsibilities ahead of economic or legal responsibilities.
B. Be held accountable for any of its actions that affect people, their communities, and their environment.
Which of the following is the most advanced stage of corporate environmental responsibility? A. Pollution prevention stage. B. Clean technology stage. C. Product stewardship stage. D. Green management stage
B. Clean technology stage.
Life-cycle analysis involves: A. Accurately recording the production costs at each stage of a product's life cycle. B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. C. Reducing recycling costs for disposable products. D. Increasing productivity while improving the environment.
B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal.
Deregulation has occurred in the following industries: A. Commercial airlines, sheet metal, and interstate trucking. B. Commercial airlines, railroads, and financial institutions. C. Commercial airlines, interstate trucking, and silicon chip manufacturing. D. Financial institutions, railroads, and silicon chip manufacturing.
B. Commercial airlines, railroads, and financial institutions.
Under proposals to establish uniform federal standards for determining liability: A. Plaintiffs would be discouraged from proceeding to trial. B. Companies would not have to go through repeated trials on the same charges in different states. C. Judges rather than juries would determine the original amount of punitive damages. D. Consumers would have to prove that a manufacturer knew or should have known that a product design was defective.
B. Companies would not have to go through repeated trials on the same charges in different states.
Which organization brings together 300 nonprofit groups to espouse the consumer viewpoint? A. Consumers Union. B. Consumer Federation of America. C. National Consumer League. D. Public Citizen.
B. Consumer Federation of America.
Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure? A. Product liability law reform. B. Consumer call centers. C. Consumer advocacy groups. D. Alternative dispute resolution policies
B. Consumer call centers.
The costs of corporate social responsibility may ultimately be passed on to the: A. Employees through fewer health benefits. B. Consumer through high prices. C. Investor through stock splits. D. Taxpayers by the government.
B. Consumer through high prices.
All of the following are examples of the phases of Corporate Social Responsibility except: A. Corporate/Global Citizenship. B. Corporate Charity Principle. C. Corporate Social Stewardship. D. Corporate/Business Ethics
B. Corporate Charity Principle.
Modern corporations should be socially responsible because they: A. Are responsible to the stockholders of the company. B. Create jobs, influencing the lives of employees. C. Are highly profitable. D. Generate dividends for the company stockholders.
B. Create jobs, influencing the lives of employees.
Which of the following is an argument in favor of corporate social responsibility? A. Lowers economic efficiency and profit. B. Discourages government regulation. C. Places responsibility on business rather than individuals. D. Imposes unequal costs among competitors.
B. Discourages government regulation.
Ethics policies typically cover all of the following issues except: A. Developing guidelines for accepting or refusing gifts from suppliers. B. Encouraging discriminatory personnel practices. C. Avoiding conflict of interest. D. Maintaining the security of proprietary information.
B. Encouraging discriminatory personnel practices.
When businesses form voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific objectives this is called: A. Inter-organizational alliances. B. Environmental partnerships. C. Cross-functional teams. D. Command and control.
B. Environmental partnerships.
Overtime, the nature of business's relationship with its stakeholders often: A. Remains static. B. Evolves through a series of stages. C. Becomes more hostile. D. None of the above.
B. Evolves through a series of stages.
Which of the following is not a goal of consumer protection laws? A. Encourage competitive pricing. B. Facilitate consumers' getting extended credit when making purchases. C. Provide consumers with better information when making purchases. D. Protect consumers against possible hazards from products purchased.
B. Facilitate consumers' getting extended credit when making purchases.
An example of a regulatory agency charged with enforcing social regulation is: A. Federal Aviation Administration. B. Federal Trade Commission. C. Federal Communications Commission. D. Internal Revenue Service.
B. Federal Trade Commission.
Which country has made the greatest progress in reducing its solid waste stream? A. United Kingdom. B. Germany. C. Japan. D. United States
B. Germany.
Which of the following is true about the Toxic Substances Control Act? A. It required reductions in urban smog, acid rain, and greenhouse gas emissions. B. It established a national policy to regulate, restrict, and, if necessary, ban toxic chemicals. C. It promoted nontoxic chemicals and fuels for business use. D. It authorized funds for treatment plants and toxic waste cleanup
B. It established a national policy to regulate, restrict, and, if necessary, ban toxic chemicals.
Philanthropic funding and public relations are two examples of corporate social responsibility: A. Drivers of the Corporate Social Responsiveness phase. B. Policy instruments of the Corporate Social Stewardship phase. C. Policy instruments of the Corporate Social Responsiveness phase. D. Drivers of the Charity Principle phase.
B. Policy instruments of the Corporate Social Stewardship phase.
Scholars found that spirituality: A. Negatively affects employee and organizational performance. B. Positively affects employee and organizational performance. C. Has no affect on employee and organizational performance. D. Only affects the employee performance of not for profit organizations.
B. Positively affects employee and organizational performance.
Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: A. Increased. B. Reduced. C. Unaffected. D. Decided by the company
B. Reduced.
At the core of rights reasoning is the belief that: A. The company's right to a profit must be protected. B. Respecting others is the essence of human rights. C. The right to join a union is no longer universally accepted. D. Economic and political powers determine who is right.
B. Respecting others is the essence of human rights.
When a person or group of people identify a social need and use their entrepreneurial skills to address this need, this process is called: A. Social stewardship. B. Social entrepreneurship. C. Social optimism. D. Social responsibility.
B. Social entrepreneurship.
Consumer groups have generally opposed the idea of product liability reform using which of the following arguments? A. Punitive damages should be limited. B. Strict liability should be retained. C. The burden of proof should be shifted to consumers. D. Losers should be made to pay some of the other side's legal bills
B. Strict liability should be retained.
One of the most widespread and potentially powerful efforts to combat bribery was initiated by: A. The Global Forum on Fighting Corruption. B. The Organization for Economic Cooperation and Development. C. International Labour Organization. D. The U.S. Foreign Corrupt Policy Act.
B. The Organization for Economic Cooperation and Development.
Which of the following illustrates the idea of sustainable development through technological cooperation? A. Worldwide conferences to encourage developing countries to invest in technological joint ventures with other developing countries. B. The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies. C. Advanced countries developing and selling at a profit environment technologies to developing countries. D. All countries developing their own environmental technology in order to solve their own problems.
B. The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies.
Which of the following is not true about rain forests? A. They are the planet's richest areas in terms of biological diversity. B. They will be severely depleted within the next 8 years. C. They account for about 7 percent of the earth's surface. D. They account for somewhere between 40 to 75 percent of the earth's species
B. They will be severely depleted within the next 8 years.
The Environmental Protection Agency (EPA) was created: A. To monitor and regulate nuclear activity. B. To coordinate most of the government's efforts to protect the environment. C. To monitor and regulate occupational health and safety standards. D. All of the above.
B. To coordinate most of the government's efforts to protect the environment.
Which of the following is not a typical use of an ethics reporting mechanism? A. To provide interpretations of proper ethical behavior involving conflicts of interest and the appropriateness of gift giving. B. To give employees an opportunity to discuss the appropriate rating on their annual performance reviews without management's influence. C. To create an avenue to make known to the proper authorities allegations of unethical conduct. D. To give employees and other corporate stakeholders a way to discover general information about a wide range of work-related topics
B. To give employees an opportunity to discuss the appropriate rating on their annual performance reviews without management's influence.
Regulation can be argued as justified based on: A. Collective market theory. B. Utilitarian and justice grounds. C. The life cycle of regulation. D. Tradition.
B. Utilitarian and justice grounds.
Issue ripeness refers to: A. The number stakeholders involved in the public issue. B. When society's expectations are high and the issue is highly relevant to business. C. How long the issue has been a problem for business, the longer the more ripe. D. The importance given to the issue by the media and how much coverage it receives.
B. When society's expectations are high and the issue is highly relevant to business.
The Mullahs in Iran is an example of the power of government derived from: A. A monarchy. B. A military dictatorship. C. A religious authority. D. A democracy.
C. A religious authority.
Effective environmental management requires an integrated approach that involves: A. A team of line managers within a business organization. B. Leadership from top-level executives who make all corporate decisions. C. All parts of the organization, as well as strong partnerships with stakeholders. D. None of the above.
C. All parts of the organization, as well as strong partnerships with stakeholders.
Companies that cultivate a vision of sustainability must adopt sophisticated strategic planning techniques to: A. Increase the competitive advantage of other international organizations. B. Detect the limited number of internal factors that influence the employee performance reviews. C. Allow their top manager to assess the full range of the firm's effects on the environment. D. Increase the number of government regulations that are passed to reduce pollution.
C. Allow their top manager to assess the full range of the firm's effects on the environment.
Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because: A. Business people do not have the skill-set to solve societal problems. B. The private sector is not mandated to solve these issues. C. Both A and B. D. None of the above.
C. Both A and B.
Which of the following is not true about the guidelines for sentencing environmental wrongdoers set by the U.S. Sentencing Commission? A. The penalties reflect the severity of the offense and the company's demonstrated environmental commitment. B. Businesses having an active compliance program would receive lighter sentences in the event of a violation. C. Businesses having no active compliance program would be granted an extension to develop a program. D. Businesses that promptly assisted any victims would receive lighter sentences in the event of a violation.
C. Businesses having no active compliance program would be granted an extension to develop a program.
Failure to understand the beliefs and expectations of stakeholders: A. Causes a company's profits to increase in the short run. B. Causes a company's profits to decrease in the short run. C. Causes the performance-expectations gap to grow larger. D. Increases the chance of a corporate buy-out.
C. Causes the performance-expectations gap to grow larger.
The Carbon Disclosure Project found that: A. Companies that invested in climate change lost total revenue. B. Companies in the railroad industry could not help the environment. C. Companies could help the environment and their investors simultaneously. D. Companies that were "carbon performance leaders" returned less total return to their investors than their peers
C. Companies could help the environment and their investors simultaneously.
Legal environmental intelligence includes: A. Patterns of aggressive growth versus static maintenance. B. Analysis of local, state, national, and international politics. C. Considerations of patents, copyrights, or trademarks. D. Information regarding costs, prices, and international trade.
C. Considerations of patents, copyrights, or trademarks.
The law requiring that toys and infant products be tested before sale is called the: A. Child Safety Act. B. Strong Product Safety Bill. C. Consumer Product Safety Improvement Act. D. Uniform Safety Testing Bill.
C. Consumer Product Safety Improvement Act.
An identifying marker placed on a user's computer hard drive during visits in order to identify the user during each subsequent visit and to build profiles of their behavior over time is called a: A. Spy. B. Virus. C. Cookie. D. Firewall.
C. Cookie.
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.
C. Differences between home and host countries' ethical standards.
All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except: A. The Public Interest. B. Objectivity and Independence. C. Due Process. D. Due Care
C. Due Process.
When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called: A. Government bailouts. B. Political sanctions. C. Economic sanctions. D. Government stop-orders.
C. Economic sanctions.
The idea that companies have a continuing responsibility for the environmental impact of their products or services, even after they are sold is called: A. Life-cycle analysis. B. Product life responsibility. C. Extended producer responsibility. D. Extended producer commitment,
C. Extended producer responsibility.
In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising? A. Congress. B. Consumer Product Safety Commission. C. Federal Trade Commission. D. Department of Justice.
C. Federal Trade Commission.
Patterns of government taxing and spending that are intended to stimulate or support the economy are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies
C. Fiscal policies.
In 2012 the European Union imposed a carbon emissions fee on all airlines flying in and out of EU airspace that: A. Successfully raised funds through fees to limit greenhouse gas emissions. B. Garnered great support from the Chinese and U.S. governments. C. Generated great opposition from more than two dozen countries. D. Effectively eliminated green house gas emissions in its airspace.
C. Generated great opposition from more than two dozen countries.
When companies develop a reputation for environmental excellence, and they produce and deliver products and services designed to attract environmentally aware customers, this is called: A. Technological innovation. B. Strategic planning. C. Green marketing. D. Cost savings.
C. Green marketing.
Public policy tools involve a combination of: A. Incentives and political favors. B. Penalties and prison terms. C. Incentives and penalties. D. Political favors and prison terms.
C. Incentives and penalties.
Which of the following is not true about water pollution? A. It affects crop yields. B. It can be caused by pesticides and herbicides. C. It can be caused by biodegradable products. D. The Water Pollution Control Act maintains the integrity of all surface water in the United States.
C. It can be caused by biodegradable products.
Studies show that texting while driving is: A. Less dangerous than talking on a phone while driving. B. Less dangerous than driving while drunk. C. More dangerous than talking on the phone while driving. D. Just as dangerous as talking on a phone while driving
C. More dangerous than talking on the phone while driving.
The primary way of accomplishing public policy is through: A. Waiting for businesses to act. B. Lobbying Congress. C. Regulation. D. Writing your politician.
C. Regulation.
The Sarbanes-Oxley Act: A. Forces firms with inaccurate financial reporting into Chapter 11 bankruptcy. B. Does not hold auditing firms liable for their client's inaccurate account reporting. C. Requires executives to pay back bonuses based on earnings that are later proved fraudulent. D. Allows an auditing firm from providing the same client with non-auditing services.
C. Requires executives to pay back bonuses based on earnings that are later proved fraudulent.
Rapid economic development is often accompanied by: A. Increasing population growth. B. Greatly decreased crop yields. C. Rising incomes, bringing higher rates of both consumption and waste. D. Decreasing incomes, bringing rates of both consumption and waste.
C. Rising incomes, bringing higher rates of both consumption and waste.
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. The Justice Department launches an investigation of the firm's pricing practices. C. Senior-level managers signal to employees that they believe ethics is a high priority. D. A consumer hot line is created and staffed 24 hours a day.
C. Senior-level managers signal to employees that they believe ethics is a high priority.
When businesses bring products and services to the many people in the world who have traditionally been beyond the reach of global commerce, they are said to be: A. Serving the top of the triangle. B. Reaching the bottom of the globe. C. Serving the bottom of the pyramid. D. Focusing on the ends of the supply chain.
C. Serving the bottom of the pyramid.
The main responsibility of the National Highway Traffic Safety Administration is to: A. Set a uniform national speed limit. B. Set airline safety standards. C. Set motor vehicle safety standards. D. Safeguard consumers from altered odometers
C. Set motor vehicle safety standards.
Total social regulation costs are: A. Slightly higher than total economic regulation costs. B. Slightly less than total economic regulation costs. C. Significantly higher than total economic regulation costs. D. Equal to total economic regulation costs.
C. Significantly higher than total economic regulation costs.
Corporate power refers to: A. The capability of competitors to influence legislation, trade, and the stock market, based on their organizational resources. B. The capability of politicians to influence corporations, employees, and unions, based on their organizational resources. C. The capability of corporations to influence government, the economy, and society, based on their organizational resources. D. The capability of CEOs to influence product development, employee morale, and currency indices, based on their organizational resources
C. The capability of corporations to influence government, the economy, and society, based on their organizational resources.
Which of the following statements is not true about environmental standards? A. Regulatory agencies can establish standard allowable levels of pollutants. B. The government has the power to command business firms to comply with certain standards. C. The government rarely interferes in a business's choice of pollution technology. D. They are the most widely used methods of regulation
C. The government rarely interferes in a business's choice of pollution technology.
Stakeholder engagement is: A. Any issue that is of mutual concern to an organization and one or more of its stakeholders. B. Competitive intelligence being collected ethically and systematically. C. The process of ongoing relationship building between a business and its stakeholders. D. The acquisition of information gained from analyzing the multiple environments
C. The process of ongoing relationship building between a business and its stakeholders.
Which of the following countries has not ratified the Kyoto Protocol? A. Germany. B. France. C. United States. D. United Kingdom.
C. United States.
In a 2010 study of 400 companies, what percentage of firms said the benefits of the Sarbanes-Oxley Act outweighed its costs? A. 12% B. 33% C. 55% D. 70%
D. 70%
. In 2011 how many of the world's top 250 companies issued an integrated sustainability report? A. 20 percent. B. 45 percent. C. 72 percent. D. 95 percent.
D. 95 percent.
An example of codes of environmental conduct that have been developed by and for specific industries include: A. The Equator Principles. B. The Forest Stewardship Principles, C. The Greenhouse Gas Protocol. D. A and B but not C.
D. A and B but not C.
Scholars have found: A. No relationship between social and financial performance. B. A negative relationship between social and financial performance. C. An inverse relationship between social and financial performance. D. A positive association between social and financial performance
D. A positive association between social and financial performance
The Resource Conservation and Recovery Act of 1976 (amended in 1984) does not require: A. Toxic waste generators to have a permit. B. Transporters to maintain careful records. C. Disposal facilities to treat hazardous waste before disposal. D. All hazardous waste to be incinerated
D. All hazardous waste to be incinerated
In the United States, the federal government regulates which of the following major areas of environmental protection? A. Air pollution. B. Water pollution. C. Land pollution. D. All of the above
D. All of the above
Which of the following statements is (are) true about global warming? A. The earth has already warmed by between 0.6 and 0.9 degrees Celsius over the past century. B. Burning fossil fuels is the leading contributor of global warming. C. The amount of greenhouse gases in the atmosphere has increased by as much as 25 percent since the Industrial Revolution. D. All of the above
D. All of the above
. The Interactive Digital Software Association case exemplifies: A. The idea that laws can not always define proper action. B. The idea that ethical principles are broader than laws. C. Industries preempting legislation and voluntarily adopting ethically based practices. D. All of the above.
D. All of the above.
A leadership role in addressing emerging management issues in often taken by: A. The public affairs department. B. The government relations department. C. The department of sustainability or environmental, health and safety. D. All of the above.
D. All of the above.
A member of the Chartered Financial Analyst Institute (CFA) must: A. Promote the integrity of and uphold the rules governing global capital markets. B. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. C. Maintain and improve their professional competence. D. All of the above.
D. All of the above.
Environmental regulations stimulate some sectors of the economy by: A. Creating jobs in industries like environmental consulting, asbestos abatement, and instrument manufacturing. B. Saving jobs in industries like fishing and tourism when natural areas are protected or restored. C. Compelling businesses to become more efficient by conserving energy. D. All of the above.
D. All of the above.
Reason(s) for adopting an enlightened self-interest approach is (are): A. Reasonable short-run costs are incurred, but socially responsible activities are promoted. B. The public's attitude toward the company is positive in the long run. C. The stockholders' pressures for short-run profits are satisfied. D. All of the above.
D. All of the above.
The components of a typical issues management process include: A. Identify issue. B. Generate options. C. Take action. D. All of the above.
D. 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.
D. 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.
D. All of the above.
Which agency(ies) was (were) created during the great wave of consumer regulations in the 1960s and early 1970s? A. Consumer Product Safety Commission. B. National Highway Traffic Safety Administration. C. National Transportation Safety Board. D. All of the above.
D. All of the above.
Which of the following is (are) true about emission fees? A. Each business is charged for the undesirable pollution that it emits. B. Companies emitting more pollutants end up paying more pollution taxes. C. Revenues from emission fees are used to support environmental efforts. D. All of the above.
D. All of the above.
Which of the following is a typical practice in an ethics audit procedure? A. The auditor notes any deviations from the company's ethics standards that become evident during the ethics audit. B. The auditor brings deviations to the attention of the audit supervisor. C. Department managers are required to file a report with the auditor on the corrective action they took to deal with the deviation. D. All of the above.
D. All of the above.
By law, the financial records of publicly held companies are required to be: A. Managed by an accounting department of at least 5 CPAs. B. Summarized in the employee manual for new hires. C. Reviewed quarterly by the IRS. D. Audited by a certified professional accounting firm
D. Audited by a certified professional accounting firm
Government's role is to create and enforce laws that: A. Control businesses' actions in society. B. Protect businesses' interest in society. C. Protect society from business. D. Balance the relationship between business and society
D. Balance the relationship between business and society
The major federal consumer protection agencies are authorized by law to: A. Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers. B. Substitute government-mandated standards for decision making by private buyers and sellers. C. Intervene in the market by influencing consumers to buy one product or service rather than another. D. Both A and B, but not C
D. Both A and B, but not C
By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank: A. Influences the size of the nation's money supply. B. Influences the value of the dollar. C. Minimizes investor confidence about the nation's future. D. Both A and B, but not C.
D. Both A and B, but not C.
Ethics reporting mechanisms have been: A. Established to create an avenue for the company to obtain allegations of unethical conduct. B. Increasing in employee use and effectiveness. C. Wholly rejected by skeptical and weary employees. D. Both A and B, but not C.
D. Both A and B, but not C.
The core idea(s) of sustainable development is (are): A. Economic development must be accomplished sustainably. B. Poverty is an underlying cause of environmental degradation. C. Affluence is an underlying cause of environmental degradation. D. Both A and B, but not C.
D. Both A and B, but not C.
Why is inequality an environmental problem? A. People in the richest countries consume many natural resources. B. People in the poorest countries often misuse natural resources. C. People in the richest countries have strong environmental values. D. Both A and B, but not C.
D. Both A and B, but not C.
Past decisions of the courts, the original basis for the U.S. legal system, are called: A. Torts. B. Amendments. C. Legitimate actions. D. Common laws.
D. Common laws.
A shared resource, such as land, air, or water, that a group of people uses collectively is a(n): A. Economic village. B. Collective resource. C. Global unification. D. Commons.
D. Commons.
When working well, the issue management process: A. Is static and never pulls in additional information that would disturb the balance. B. Generates two specific options for each issue. C. Minimizes dialogue with the stakeholders and focuses on short-term survival. D. Continuously cycles back to the beginning and repeats.
D. Continuously cycles back to the beginning and repeats.
Which of the following is not an example of an ethical criterion? A. Egoism. B. Concern for others. C. Principle. D. Corporate driven.
D. Corporate driven.
Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of: A. Corporate social stewardship. B. Corporate social responsiveness. C. Corporate/Business Ethics. D. Corporate/Global Citizenship.
D. Corporate/Global Citizenship.
Economic regulations: A. Can only exist for 37 years unless renewed. B. Apply only to older industries. C. Always conflict with social regulation. D. Cut across industry lines.
D. Cut across industry lines.
. Businesses in the clean technology stage: A. Actively manage environmental issues. B. Have well-funded programs for environmental technology. C. Evaluate cyber technology-related risks. D. Develop innovative technologies that support sustainability
D. Develop innovative technologies that support sustainability
Ethisphere Magazine recognizes and rewards ethical leadership and business practices worldwide according to their: A. Regulatory Percentage Track (RPT). B. Ethics and Leadership Radar (ELR). C. Quality Measurement (QM). D. Ethical Quotient (EQ).
D. Ethical Quotient (EQ).
Which car company did not seek bailout loans from the U.S. government following the 2009 worldwide economic recession? A. Toyota. B. General Motors. C. Chrysler. D. Ford.
D. Ford.
The Sustainability Consortium organized to advance life-cycle analysis for thousands of products includes all of the following companies except: A. Walmart. B. Dell. C. Alcoa. D. Google.
D. Google.
Firms that believe they can make decisions unilaterally, without taking into consideration their impact on others are: A. Interactive companies. B. Proactive companies. C. Reactive companies. D. Inactive companies.
D. Inactive companies
Online shoppers have always been concerned that: A. They receive online ads for products similar to the ones they bought earlier on the Web. B. Their favorite Web sites provide a large variety of products and services. C. The government might become overly involved in protecting consumer privacy. D. Information they reveal in the course of a sales transaction might be misused
D. Information they reveal in the course of a sales transaction might be misused
Contemporary issue management: A. Is a linear process. B. Was useful in the 1970s, but not today. C. Is used by all government agencies. D. Is an interactive, forward thinking process.
D. Is an interactive, forward thinking process.
Manufacturers making false or misleading claims about a competitor's product is: A. Illegal but ethical. B. Illegal and unethical. C. Legal but unethical. D. Legal and unethical.
D. Legal and unethical.
Policies that affect the supply, demand, and value of a nation's currency are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies.
D. Monetary policies.
Which of the following is not an example of a social regulatory agency? A. Consumer Product Safety Commission. B. Equal Employment Opportunity Commission. C. National Highway Traffic Safety Administration. D. National Labor Relations Board.
D. National Labor Relations Board.
Which of the following is not true about "green" management practices? A. 62 percent of companies had a coherent strategy for sustainability for the entire business. B. There are three main stages of corporate environmental responsibility. C. Most big companies appear to be addressing sustainability issues. D. No more than 10 to 25 percent of all U.S. companies are adopting environmental practices.
D. No more than 10 to 25 percent of all U.S. companies are adopting environmental practices.
Business executives are finding that a trusting, ethical relationship with a business partner is: A. Best left to not-for-profit companies. B. Too costly to maintain. C. Likely to cause legal problems. D. Often essential in conducting business.
D. Often essential in conducting business.
Business leaders, like automaker Henry Ford developed these programs to support the recreational and health needs of their employees A. Corporate social responsibility programs. B. Corporate citizenship programs. C. Social networking programs. D. Paternalistic programs.
D. Paternalistic programs.
An analysis of the stability or instability of a government is an example of scanning the: A. Social environment. B. Legal environment. C. Geophysical environment. D. Political environment.
D. Political environment.
According to Barlow v. A.P. Smith Manufacturing: A. The laws prohibited charitable contributions, at that time. B. Charitable contributions were bad corporate investments for the short term. C. Socially responsible actions must be approved by a majority of the firm's stakeholders. D. Socially responsible actions are in investment in the future, thus an allowable expense.
D. Socially responsible actions are in investment in the future, thus an allowable expense.
Public policy effects are: A. Impossible to measure. B. Easily quantifiable for the trained public policy expert. C. Only known ten years after the public policy is enacted. D. Sometimes intended and sometimes unintended.
D. Sometimes intended and sometimes unintended.
The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called: A. The Consumer Protection Act. B. The Product Safety Act. C. The Predatory Mortgage Act. D. The Truth in Lending Act.
D. The Truth in Lending Act.
According to a 2009 opinion poll, Americans hold a dim view of: A. Organized labor. B. The Supreme Court. C. Churches. D. Wall Street executives
D. Wall Street executives
