BA325 Exam 1 Quizzes

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

A company shifts their headquarters to a foreign country.

People's ethical beliefs come from:

Their religious background, family, and education.

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

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

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A central state control system.

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.

A company that has ranked amongst the most ethical firms from 2007 to 2017, according to Forbes magazine, is:

AFLAC.

Most ethics or compliance officers are entrusted to:

Act as a liaison between the company and their temporary employees.

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

All import restrictions are illegal unless proven scientifically.

Positive reputation can be valued as an intangible corporate:

Asset.

By law, the financial records of publicly held companies are required to be:

Audited by a certified professional accounting firm.

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.

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.

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

Chaplains.

Integrity-based ethics programs:

Combine concern for the law with an emphasis on employee responsibility.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:

Compliance and Integrity.

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of:

Conflict of interest.

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

Consumer through high prices.

Which of these statements is true about the U.K. Bribery Act?

Contains a strict liability offense for failure to prevent bribery by commercial organizations.

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Corporate/Global Citizenship

Ethical challenges for information technology employees include:

Data privacy and copyright protection.

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

Develop sustainable business strategies.

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

Due Process.

A free enterprise system refers to:

Economic assets that are privately owned and exchanged in an open market.

In the case LafargeHolcim and ISIS in Syria, a utilitarian benefit of keeping the plant open was:

Employees received paychecks.

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices.

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.

Which type of employee is most likely to report ethical issues in the workplace?

Executives.

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. All of these answers are correct.

If a manager approaches ethics with benevolence in mind, he or she would stress what?

Friendly relations with an employee.

An individual who is a supporter of globalization would argue that it helps the developing world by:

Giving entrepreneurs access to foreign investment funds to support economic development. Allowing new ideas and technological innovations to spread quickly. Providing people in developing countries with more jobs. All of these answers are correct.

All of the following are considered to be ethical issues for marketing professionals except:

Ignoring market fair dealing.

The iron law of responsibility says that:

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

Building ethical safeguards into a company's everyday routines is called:

Institutionalizing ethics.

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. All of these answers are correct.

Government has distinctive resources and competencies including:

Knowledge of public policy. Ability to enforce the rules. Revenue from taxation. All of these answers are correct.

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries.

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups:

May honestly and genuinely use different sources of information. May rank various rights in different ways. May not share the same meaning of justice. All of these answers are correct.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Which country passed major anti-corruption reforms in 2016?

Mexico.

Aristotle argued:

Moral virtue is a mean between two virtues.

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

North Korea

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.

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

Providing tax incentives for global corporate citizens.

Which company ethics safeguard is commonly implemented as an employee "helpline"?

Reporting mechanisms.

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

Sell, make, and buy.

A recent study found that, compared to the 1980s, managers today place what importance on moral values, such as honesty and forgiveness?

Slightly more important.

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 aboard.

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. All of these answers are correct.

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.

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials political parties, or political candidates?

The U.S. Foreign Corrupt Practices Act.

A conception of right and wrong is:

The definition of ethics.

The critical component in installing an effective ethics program is:

The integration of various ethics safeguards into a comprehensive program.

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.

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

Utilitarian reasoning.

Mature adults typically base their ethical reasoning on broad principles and relationships such as:

Both of these answers are correct: Human rights and constitutional guarantees of human dignity; and universal principles of justice.

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.

When a company puts its commitment to social and environmental responsibility into practice worldwide not only locally or regionally, it is called:

Corporate Citizenship.

The Principles and Standards of Ethical Supply Chain Management Conduct includes the principle:

Protect confidentiality.

The core components upon which a company's ethical performance depends include:

The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture. All of these answers are correct.

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

A company breaking past records by maximizing quarterly profits.

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

Business people do not have the skill set to solve societal problems. The private sector is not mandated to solve these issues. Both of these answers are correct.

Which of the following is not an example of an ethical criterion?

Corporate driven.

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate.

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.

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.

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

Wealth.

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.

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

Identify and analyze the nature of ethical problem.

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

Weak health and safety regulations.

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

70 percent

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights.

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

The Kimberley Process.

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

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

Business executives.

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

Corporate power.

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

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

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.

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

Paternalistic programs.

A member of the Chartered Financial Analyst Institute (CFA) must:

Promote the integrity of and uphold the rules governing global capital markets. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. Maintain and improve their professional competence. All of these answers are correct.

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.

An example of an international financial and trade institution is:

World Bank.International Monetary Fund.World Trade Organization.All of these answers are correct.

The most effective ethics programs utilize which of the following:

Written policy. Posters. Quick reference guides. All of these answers are correct.

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. All of these answers are correct.

In the case Equifax's Data Breach, which ethical climate dominated during the data breach?

Egoism.

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

Microfinance refers to banks:

Lending money to low-income businesses.

Businesses are expected to be ethical in their relationships with:

Stockholders. Customers. Competitors. All of these answers are correct.

The most important agreement which codifies human rights is:

The Universal Declaration of Human Rights.

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs?

The financial bottom line.