BA 325 Final

Which type of U.S. company is required to follow the Family and Medical Leave Act (FMLA), and offer up to 12 weeks of unpaid employee leave to address family needs?

Firms with at least 50 employees.

Random drug testing of employees is accurately described by which statement?

It screens randomly selected employees at various times through the year.

The main responsibility of the National Highway Traffic Safety Administration is to:

Set motor vehicle safety standards.

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

Factor conditions are strategic contributions focusing on:

The supply of trained workers, physical infrastructure, and natural resources.

What criteria must be met before a whistle-blower goes public?

There is enough potential harm to justify the possible costs of disclosure to the whistle-blower.

Social impacts of global supply chains include:

Wages. Working conditions. Employee health. All of these answers are correct.

Institutional investors are sometimes referred to as:

Wall Street investors.

When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for:

Both the supplier and the lead firm.

Which of these statements is not true about supply chain transparency

Brand loyalty among consumers is reduced by a firm's revelations.

Businesses can reduce income inequality by which action?

Commit to paying a living wage to all employees.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called:

Consumers International.

Since the mid-1950s the proportion of American workers represented by unions has:

Decreased.

Variation in the important human characteristics that distinguish people from one another is called:

Diversity.

According to a recent survey, what percentage of firms would terminate a supplier if serious violations were found?

48 percent.

The primary goal(s) of the Food and Drug Administration include:

Both of these answers are correct: Ensuring the safety and effectiveness of a wide range of consumer products; and reviewing and approving new products before they are released to consumers.

The purpose of the media relations department is to manage a firm's:

Both relationship with the public and public image.

The EU's 2018 General Data Protection Regulation applies to:

Companies anywhere who provide services to European customers.

According to the new social contract:

Companies try to attract workers by giving them interesting and challenging work.

The board committee that administers and approves salaries and benefits of high-level managers in a company is called:

Compensation.

The right to free speech is protected in the United States by the:

Constitution.

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Customer call centers.

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

Data aggregators.

Which of the following is not a goal of consumer protection laws?

Facilitate consumers' getting extended credit when making purchases.

This U.S. agency enforces the laws prohibiting deceptive advertising:

Federal Trade Commission.

Trading stocks in advance of large institutional investment moves is called:

Front-running.

Which groups often collaborate when developing industry-wide codes of conduct?

Government officials. NGOs. Companies. All of these answers are correct.

The relationship between business and the community is accurately described by:

It is one of mutual interdependence.

Minority enterprises often do business in locations with:

Low-quality public services.

The "agency problem" arises when:

Managers act in their own interest, rather than in the interest of shareholders.

What is one drawback of conducting supplier audits

On-site inspections are expensive

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders' rights by making sure that stock markets are run fairly.

The corporate reputation is accurately described by which statement(s)?

Refers to desirable qualities. Refers to undesirable qualities. Relies on the perceptions of past actions, results, and future prospects.

If someone is entitled to be treated in a certain way, this refers to a(n):

Right.

Studying the underlying cause of repeated supplier violations is called:

Root cause analysis.

Communities depend on business for:

Schools. Health care. The arts. All of the above.

What primary form of corporate giving did Salesforce contribute when working with the Red Cross, according to the case Salesforce's 1+1+1 Integrated Philanthropy Model?

Skills-based assistance.

When Fidelity partnered with the Capital Good Fund to service loans to disadvantaged communities, this was an example of:

Skills-based volunteerism.

Consumer groups have generally opposed the idea of product liability reform using which argument?

Strict liability should be retained.

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?

Strict liability.

When a lead firm invests in supplier resources or offers training, this is an example of:

Supplier development.

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

The leading cause of death on the job is due to:

Vehicle accidents.

Emphasizing key points and guiding the media reporter to them is called:

flagging

The media control technique called bridging is exemplified by which of these phrases?

"While that is true, what is important to know is...".

Organizations with strong positive reputations are generally more successful because they:

Often get the benefit of the doubt in uncertain circumstances.

Why does a diverse and inclusive workforce benefit a firm supporting a global market?

A variety of language skills serves the global customer base well.

Which industry(ies) have taken the lead in revitalizing neighborhoods?

Both of these answers are correct: Life insurance firms; and health insurance companies.

Which of the following is an example of fulfilling social objectives through stock ownership?

Divesting from Chinese companies that made products using forced labor.

A reason for institutions becoming more assertive in promoting the interests of their member investors is:

Expressing dissatisfaction with management performance by selling a large block of stock would reduce the value of the institution's holdings.

The right to a safe and healthy workplace is accurately described by which statement?

Extensive training and careful precautions are necessary to avoid accidents, injuries, and illness.

Employee theft is correctly described by which statement?

It is a significant economic, social, and ethical problem in the workplace.

One argument in favor of affirmative action is:

It levels the playing field to correct past discriminatory hiring practices.

Which of the following is not a reason for businesses to establish community relations departments?

Managing international relations projects for economic development.

Sexual harassment is accurately described by which statement(s)?

Most sexual harassment incidents target women. Sexual harassment is illegal in the United States. The U.S. Equal Employment Opportunity Commission is empowered to sue on behalf of victims. (All of the Above)

One particularly negative aspect of behavioral advertising is:

Online users may be vulnerable to the spread of misinformation tailored to their beliefs.

Corporations contribute about what share of all giving in the United States?

Only about five percent.

When a mother or father is granted time off when children are born or adopted and during the early months of a child's development, this is called:

Parental leave.

One of the main reasons that American executives are paid so much is:

Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.

One action a company can take to effectively manage diversity and inclusion is:

Set up a diversity council to monitor the company's goals.

Which of these programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers?

Both Sustainable Compliance Initiative and Sedex Global.

The International Labor Organization (ILO) identifies child labor by which factors?

Both a child's age and the work hours.

Which part of the Department of Justice protects the public from being charged excess fees based on one's race?

Civil Rights Division.

The illegal recruitment and movement of people against their will is called:

Forced labor.

In 2014, of the following nations, the fastest-growing stock market was in:

India.

This type of audit is perceived by stakeholders as more objective and reliable

Third-party

A visual representation of the many links between a lead firm and its suppliers, superimposed on a geographical map is called a:

Supply chain map.

A living wage has been defined as a wage that:

Supports half the basic needs of an average-sized family, based on local prices.

Which of these channels represents a traditional media outlet?

Television.

The Occupational Safety and Health Act gives workers the right to a job:

That is free from recognized hazards that are likely to cause death or serious injury.

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:

The Truth in Lending Act.

The lack of jurisdiction of home country governments over supplier behavior is exemplified by:

The United States Department of Labor having no control over safety in Indonesia.

The term civic engagement describes:

The active involvement of businesses and individuals in improving communities.

What happened to United Airlines' reputation after several in-flight incidents were reported, according to the discussion case United Airlines—Navigating a Social Media Storm?

The company's public rating dropped significantly.

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

Benefits of managing diversity and inclusion effectively includes all except:

The federal government provides tax breaks.

Which of the following is not a function of board committees?

The finance committee works closely with the human resources department to fund employee salaries.

In the discussion case, Ikea's Sustainable Cotton Supply Chain, which statement accurately describes IKEA's supply chain?

The long and complex chain involved farming, ginning, spinning, weaving, and stitching.

Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?

The number of widely used suppliers decreased. Lead firms preferred larger suppliers. Lead firms sought ongoing strategic relationships. All of these answers are correct

A legal right of shareholders is:

To vote on members for the board of directors.

Why should businesses get involved in the community?

To win local support for business activity. To build social capital. To meet stakeholder demands. All of these answers are correct.

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

An example of "insider trading" is:

A company executive passing nonpublic information about an upcoming acquisition to a friend, who traded for a profit.

The Securities and Exchange Commission outlaws:

Any manipulative or deceptive device used to trade stocks.

In 2015, more than 50 percent of minority-owned businesses were owned by:

Asian Americans.

When suppliers endure audit after audit by different lead firms, this is called:

Audit fatigue.

A rule of media communication is to:

Be honest. Be current. Be accessible.

Media training is especially important for which company roles?

Both board of directors and General Counsel.

Which of these measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard?

Both environmental performance and product quality.

A strong employer-employee relationship is central to:

Both of these answers are correct: Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.

Which of the following describe why the consumer movement exists?

Both of these answers are correct: Some product advertising claims have been inflated; and some businesses have violated the public's privacy.

Brand management often involves conveying what about a product or service?

Both the solutions provided and the expected experience.

A 2018 Harris poll indicated that some firms, such as Amazon, Tesla Motors, and Patagonia, have:

Earned a high reputation quotient.

Corporate governance involves the exercise of control over a company's:

Entire corporate direction.

Which of the following is not a strategy to help companies get the most benefit from their contributions?

Establish priorities even if they conflict with the firm's core values.

One important aspect of the new social contract regarding fixed pension benefits is:

Fixed pensions have been reduced in the U.S. by around 90 percent.

An argument in support of high executive compensation is:

High salaries provide an incentive for innovation and risk-taking.

A supplier that controls critical worker skills and technical know-how holds which type of power over its lead firm?

Informational.

States that have adopted right-to-work laws:

Prevent unions from requiring all workers they represent to pay fees or dues.

The "right to be heard" promises that consumers' interests will:

Receive full and sympathetic consideration.

Which of the following is (are) core rights of consumers?

The right to safety.

What is the primary goal of a community relations department?

To build relationships with important community groups.

Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?

U.S. False Claims Act (as amended in 1986).

Which of the following represents a type of corporate crisis?

Acts of God. Management indecision. Mechanical problems.

Business depends on the community for:

Education. Public services. Transportation systems. All of these answers are correct.

The practice of adapting the job to the worker is called:

Ergonomics.

Most corporate community relationship departments consist of how many team members?

Fewer than three people plus a manager.

Richard M. Locke argues that global supply chains are best managed through a combination of public and private governance because

Government-enforced laws give legitimacy to demands for workplace changes. Regulators benefit from record-keeping required by private companies' codes of conduct. Public and private organizations are able to share the enforcement workload. All of these answers are correct

An argument that opposes the idea of high executive pay is:

High salaries divert resources that could be used to invest in the business.

Sexual harassment applies to:

Either men or women who are being harassed.

Private governance is most likely to emerge under which of these conditions?

Firms with highly visible brands are more vulnerable to reputational damage.

As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:

More important.

Which industry gives the most in-kind contributions?

Pharmaceutical companies.

In 2017, the smallest source of philanthropic contributions in the United States came from which organization?

Corporations.

Social capital is a phrase that refers to all of the following, except:

Funds set aside for company events.

Where are workers not permitted to form independent unions?

Both some communist countries and some military dictatorships.

A significant business disruption that stimulates extensive news media and social networking coverage is called a(n):

Corporate crisis.

Supporters of declassifying board elections argue that this approach:

Increases accountability and responsiveness to shareholders.

Child care assistance in the workplace is accurately described by:

It helps reduce employee absenteeism and tardiness. It aids in recruiting workers by making the company more attractive to parents. It helps retain talented employees. All of these answers are correct. Correct

How can a lead firm improve a supplier's performance when the cost to replace the supplier is high?

Engage the supplier in capability-building.

Global businesses that have extended their public relations strategies worldwide should:

Ensure that communications with local media take place in the area's native language.

The directors of a company are a central factor in corporate governance because they:

Exercise formal legal authority over company policy.

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

Industry self-regulation.

According to the Institute for Crisis Management this industry is among the top crisis-prone industries because of sophisticated technology found in its products:

Pharmaceuticals.

In the case The Ugly Side of Beautiful Nails, the nail salon industry violated which of these worker rights?

To a safe and healthy workplace.

According to a 2016 survey of senior supply chain managers, what is the leading reason to invest in supplier social responsibility?

To create a positive image and enhance brand equity.

What is one reason that firms partner with communities to increase economic development?

To develop workplace skills.

Many companies have argued that the evolution of strict liability has:

Unfairly burdened them with excess costs.

When an employee believes his or her employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials, what has occurred?

Whistle-blowing.

Which of these is not a current consumer law that protects individual privacy?

Internet "do not track" rules.

Purposefully planned messages sent to selected media promoting the company without payment to the media is called:

Publicity.

Reports filed with the SEC provide information on a company's:

Sales and earnings. Depreciation by line of business. Details of foreign operations. All of these answers are correct.

Bias within the hiring process refers to:

Selecting only candidates that match a preconceived ideal of the role.

According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?

Stakeholder management.

What is one reason why woman and minorities fail to move into executive or board positions?

The old boys' network.

Employee Assistance Programs (EAPs) are correctly described by which of these statements?

They offer counseling and follow-up to alcohol and drug abusers. Almost all employers with 1,000 or more workers offer EAPs. Nearly three-quarters of small companies with 50 to 99 employees offer EAPs. All of these answers are correct.

Minority, women, and disabled veteran-owned firms are accurately described by which of these?

They often partner with larger firms in a diversity supplier role.

A customer tweeting about a recent bad shopping experience is using which type of media communication?

User-generated content.

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct.

An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a:

cookie

When lead firms work with suppliers they can create shared value such as:

Higher income for the supplier. Higher quality products for customers. A more stable supply of products. All of these answers are correct.

An argument against affirmative action is:

It is inconsistent with the principles of fairness and equality.

As shown in Figure 2, in 2015 the countries with the highest and lowest percentages of unionized labor, respectively, were:

Iceland, Turkey.

What media technique is used to promote the general perception of a product or service, rather than promoting its functional attributes?

Image advertisements.

The risk online shoppers take when their web profile negatively impacts their credit is known as:

Weblining

In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a:

bear market

The audit committee is required by U.S. law to be:

financially literate.

How do companies encourage their employees to volunteer their time?

By sponsoring specific projects. By offering recognition for service. By publicizing opportunities to serve. All of these answers are correct

Scenario-based press releases, key discussion points, and procedures to activate the organization's website are all part of which step in an effective crisis management plan?

Get ready before the crisis hits.

When women and minorities are highly competent but are unable to attain executive positions, this is typically called:

Glass ceiling.

A good public relations program:

Manages the firm's public image and its relationship with the public.

Which type of supplier is hired to provide products or services directly to a lead firm

Tier-1

Social investors seek to eliminate from their investment portfolios companies that:

Pollute the environment. Discriminate against employees. Make dangerous products like tobacco or weapons. All of these answers are correct.

Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation fall under which dimension of diversity?

Primary.

The current trend in the United States of firms' eliminating domestic partner benefits is largely due to:

The legalization of same-sex marriage in 2015.

Building a positive and ethical reputation requires a firm to:

Convey a compelling story about the firm and what it stands for.

Which of the following is not true about occupational segregation?

The technology sector is dominated by women.

The activism of institutional investors in other countries has been spearheaded by:

U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries.

In 2015, the largest generation in the workforce was:

Millennials

Through which stakeholder networks can the public demand a certain level of performance from a firm?

Both consumer advocacy groups and government agencies.

Racial harassment is illegal under:

Title VII of the Civil Rights Act.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called:

antitrust laws

Another term for corporate giving is corporate:

philanthropy

Why does the inclusion of women on corporate boards improve company performance?

Alternative courses of action are more realistically considered. Women bring different life experiences to discussions. Women are more likely to raise multiple stakeholder concerns. All of these answers are correct.

Collaborative partnerships between business, government, and communities have been particularly successful in which social area?

Education.

Which of the following is (are) true regarding a recognizable brand?

Identifies how a company is distinctive from their rivals. Instills an emotional attachment that creates brand loyalty. Customers trust its exceptional value.

Many executives believe that a diverse workforce boosts innovation because:

Many unique perspectives contribute to a better solution.

The growing diversity in the U.S. workforce is due to:

Millennials entering the workforce. Immigration from other countries. Shifting patterns of work and retirement. All of these answers are correct.

The general public is accurately described by which statement(s)?

This organizational stakeholder consists of individuals and groups found in society.

Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by:

Both of these answers are correct: Communicating a zero-tolerance policy on harassment to all employees; and establishing a complaint procedure and acting quickly to resolve any problems.

According to the U.S. Department of Labor, some of the most dangerous jobs include:

Police, fire fighters, prison guards.

Some studies have shown that the burden of complying with safety regulations falls hardest on:

Small businesses.

In what way did Dreamers bring diversity to the U.S. workplace?

Dreamers came to the United States from many global regions.

The Sarbanes-Oxley Act makes it illegal for employers to:

Retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares.

During crisis management, doing the right thing should include:

Both accepting responsibility and expressing regret.