BA 325 Test 1

Which statement characterizes the moral reasoning typically found in a child?

"I'll let you play with my toy if I play with yours."

The percentage of global wealth concentrated at the base of the Pyramid is:

70 percent.

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

A company breaking past records by maximizing quarterly profits.

Which of the following companies is being the most socially responsible?

A company trying its best to operate in a way which will help local students get education and jobs.

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which of the following?

A food product contaminated with salmonella was distributed to stores.

The emergence of a public issue indicates that:

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

Which of the following is not an example of stakeholders' economic power?

A social group protests a government's decision to raise taxes.

Because of the risks and opportunities public issues present, organizations need:

A systematic way of identifying, monitoring, and selecting public issues.

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

Actions by governments rarely affect business.

Under the World Trade Organization's most-favored nation rule:

All import restrictions are illegal unless proven scientifically.

Once an issue has been identified, its implications must be:

Analyzed.

Positive reputation can be valued as an intangible corporate:

Asset.

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called:

B Corporation.

Which of the following statements is true about corporate social responsibility?

Both of these answers are correct: Businesses should monitor and prevent social problems in advance of their becoming major issues; and corporations should be accountable for any actions that affect people, their communities, and the environment.

Companies demonstrate global corporate citizenship by:

Both of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

Which statement(s) below are true about global income?

Both of these answers are correct: Income is how much one earns in a day or a year; and income at the bottom of the pyramid varies from place to place.

A stakeholder map is a useful tool because:

Both of these answers are correct: It enables managers to quickly see how stakeholders feel about an issue, and it allows managers to evaluate what outcomes are likely regarding an issue.

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

Both the board of directors and top management levels.

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger.

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of:

Chaplains.

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

Communications technology.

Legal environmental intelligence includes:

Considerations of patents, copyrights, or trademarks.

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

Consumer through high prices.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats.

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called:

Corporate power.

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

As business becomes increasingly global:

Cross-cultural contradictions will increase.

The explosive use of social media is an example of which environment?

Customer.

Customer environmental intelligence includes:

Demographic factors.

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

Descriptive argument.

A business and its stakeholders coming together for face-to-face conversations about issues of common concern is called stakeholder:

Dialogue.

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on:

Eight strategic radar screens.

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

The main reason a number of European countries require public companies to include employee members on their boards of directors is so that:

Employees' interests will be explicitly represented.

What stakeholder group(s) can exercise legal power?

Employees, customers, shareholders

The issue of reactive management policies occurs in which stage of global corporate citizenship?

Engaged.

The most significant motivator of corporate social reporting is:

Ethical concerns.

According to the United Nations, a feature of democracy is:

Fair elections, An independent media, A government with power balanced among executive, legislative, and judicial branches.

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile.

Forum Empresa.

The drivers of stakeholder engagement are:

Goals, motivation, and operational capacity.

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of ethical problem.

The iron law of responsibility says that:

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

The use of social media to conduct stakeholder engagement has:

Increased the ability to share information amongst employees and partners.

With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:

Informational power.

Corporations that run their operations according to the stakeholder theory of the firm create value by:

Innovating new products, Increasing their stock price, Developing their employees' professional skills

Global social audit standards concentrate on:

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

The main drawback to utilitarian reasoning is that:

It is difficulty to accurately measure both costs and benefits.

Government has distinctive resources and competencies including:

Knowledge of public policy, Ability to enforce the rules, Revenue from taxation.

In the case Insuring Uber's App-On Gap, which type of power do Uber customers have?

Legal and economic.

When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's:

Legal power.

Microfinance refers to banks:

Lending money to low-income businesses.

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost.

Proactive companies are:

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

Corporations working collaboratively with other businesses and concerned persons and organizations is an example of stakeholder:

Networks.

Which one of the following is considered to be a nonmarket stakeholder of business?

Nongovernmental organizations.

The Heritage Foundation scored which nation of the world among the most repressed in 2018?

North Korea.

According to an annual Gallup poll, which occupation was consistently ranked the highest for honesty and ethics?

Nurses.

Business leaders, like automaker Henry Ford, developed these programs to support the recreational and health needs of their employees.

Paternalistic programs.

Philanthropic funding and public relations are two examples of corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase.

Scholars found that spirituality affects employee and organizational performance in what way?

Positively.

Stakeholders stand out to managers when they exhibit:

Power, legitimacy, and urgency.

Firms that generally act only when forced to do so, and then in a defensive manner, are:

Reactive.

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:

Reduced.

Stakeholder engagement is, at its core, a:

Relationship.

The deep anti-Americanism that exists in some parts of the world is thought to be caused by:

Resentment of cultural penetration from U.S.-based multinational enterprises.

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights.

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

Second amendment rights and the safety of students in schools.

The three strategies of globalization can be summarized using what three words?

Sell, make, and buy.

The fiduciary duty of managers benefits a firm's:

Shareholders, customers, employees

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

Social.

According to Barlow v. A.P. Smith Manufacturing:

Socially responsible actions are an investment in the future, thus an allowable expense.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.

Businesses are expected to be ethical in their relationships with:

Stockholders, Customers, Competitors.

Good corporate citizens:

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

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

Study the results and make necessary adjustments.

The issue management process is a:

Systematic process companies use when responding to public issues that are of greatest importance to the business.

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as:

Temporal immediacy.

An example of a Global Action Network, or GAN, is:

The Kimberley Process.

The most important agreement which codifies human rights is:

The Universal Declaration of Human Rights.

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

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

Which of the following is not true about justice reasoning?

The reasoner is interested in the net value of benefits.

Representation on the World Bank's board of directors is based on:

The size of the member nation's economy.

Global market channels involve a firm producing goods in:

Their home country and exporting them to other countries.

People's ethical beliefs come from:

Their religious background, family, and education.

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the:

Transforming stage.

In the case Insuring Uber's App-On Gap, which stakeholders supported ending the App-On Gap?

Uber customers, Uber drivers, consumer lawyers.

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to:

Utilitarian reasoning.

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

Ventures.

Single-party rule by communist parties still remains in:

Vietnam.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations.

Assets that a person accumulates and owns at a certain point in time are called:

Wealth.

Interactions between business and society occur:

Within a finite natural ecosystem.

An example of an international financial and trade institution is:

World Bank, International Monetary Fund, World Trade Organization.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

Business people do not have the skill set to solve societal problems and the private sector is not mandated to solve these issues.

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:

Boundary-spanning departments.

According to a 2017 survey, Americans hold a dim view of:

Business executives.

An issue's public profile indicates to managers:

How significant an issue is for the organization, but it does not tell them what to do.

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

Investors.

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries.

The primary goal of a "vulture fund" is to:

Make a profit.

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

Managers

Aristotle argued:

Moral virtue is a mean between two virtues.

The instrumental argument says stakeholder management is:

More effective as a corporate strategy.

Which of these is not an objective of the Global Reporting Initiative (GRI)?

Providing tax incentives for global corporate citizens.

A firm that would like to develop a global supply chain would:

Purchase raw materials, components, or supplies from sellers in other countries.

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

Right or wrong.

When something stands out from a background, is seen as important, or draws attention it is:

Salient.

A conception of right and wrong is:

The definition of ethics.

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders.

In the case Corporate Social Responsibility at Gravity Payments, which view in support of corporate social responsibility is relevant according to Figure 3.3?

Balances corporate power with responsibility.

All of the following values are present in most ethical decisions except:

Be kind.

A just or fair ethical decision occurs when:

Benefits and burdens are distributed in fair proportions.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

Which of the following statements accurately describe the practice of tax inversion:

Both of these answers are correct: A company shifts their headquarters to a foreign country; and a company increases debt in their home country.

Cross-cultural contradictions arise due to:

Differences between home and host countries' ethical standards.

Those in support of corporate social responsibility believe the practice:

Discourages government regulation.

Under the Sarbanes-Oxley Act, corporations are required to:

Have executives vouch for the accuracy of a firm's financial reports.

Contemporary issue management:

Is an interactive, forward-thinking process.

An ethics issue based on cross-cultural contradictions is best illustrated by which example?

Legally marketing a pesticide abroad that has been banned in the U.S.

Why should business be ethical, according to Figure 5.1?

Most people want to act in ways that are consistent with their own sense of right and wrong, Ethical behavior protects business firms from abuse by unethical employees and competitors, Society's stakeholders expect it from businesses.

What kind of power might a local community use to influence a company's decisions?

Publicizing an issue, Lobbying government policy makers for regulations, Challenging whether a specific business activity should continue.

The phenomenon of a person or group holding multiple stakeholder duties is referred to as:

Role sets.

Which of the following statements is not true about the interactive social system?

The boundary between business and society is clear and distinct.