BGS Exam 1

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

Nurses.

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.

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.

The term circular economy refers to:

A production system that is regenerative by design.

Sustainable development:

Balances economic and environmental considerations.

Cross-cultural contradictions arise due to:

Differences between home and host countries' ethical standards.

Governments being asked to regulate driving distractions are examples of a public policy:

Input.

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.

In the case Should Facebook be Regulated, the primary market failure was:

Sales incentives to sell user data exceeded those of protecting user privacy.

People's ethical beliefs come from:

Their religious background, family, and education.

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.

The emergence of a public issue indicates that:

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

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

All import restrictions are illegal unless proven scientifically.

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

Audited by a certified professional accounting firm.

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

B Corporation.

Government's role is to create and enforce laws that:

Balance the relationship between business and society.

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

Life-cycle analysis involves:

Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal.

Past decisions of the courts, the original basis for the U.S. legal system, are called:

Common laws.

A shared resource, such as land, air, or water, that a group of people uses collectively is a(n):

Commons.

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.

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

Corporate driven.

Those in support of corporate social responsibility believe the practice:

Discourages government regulation.

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

Egoism.

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

Eight strategic radar screens.

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.

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

Engaged.

Over time, the nature of business's relationship with its stakeholders often:

Evolves through a series of stages.

Patterns of government taxing and spending that are intended to stimulate or support the economy are:

Fiscal policies.

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

Friendly relations with an employee.

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

Ignoring market fair dealing.

Arable land is accurately described by which statement?

It is a renewable resource.

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.

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

Managers.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Policies that affect the supply, demand, and value of a nation's currency are:

Monetary policies.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

Operating under the compliance-based approach.

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

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

Which of these factors has accelerated the current ecological crisis?

Rapid industrialization.

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

Reactive.

The primary way of accomplishing public policy is through:

Regulation.

Rapid economic development is often accompanied by:

Rising incomes, bringing higher rates of both consumption and waste.

Total social regulation costs are:

Significantly higher than total economic regulation costs.

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

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

The relevance and importance of stakeholders and their issues is known as:

Stakeholder materiality.

The most important agreement which codifies human rights is:

The Universal Declaration of Human Rights.

The critical component in installing an effective ethics program is:

The integration of various ethics safeguards into a comprehensive program.

Stakeholder engagement is:

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

Global market channels involve a firm producing goods in:

Their home country and exporting them to other countries.

An example of industrial ecology in practice is

Using wastes from one process as raw materials for another process.

Public policy tools involve a combination of:

Incentives and penalties.

By promoting the use of clean cookstoves in developing nations, a global alliance hopes to reduce:

Black carbon.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats.

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.

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries.

Microfinance refers to banks:

Lending money to low-income businesses.

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

Study the results and make necessary adjustments.

According to general systems theory, boundary exchanges are exemplified by which of the following?

- An industrial company installs new equipment in its plant to comply with environmental regulations. - A software company develops an application for a client. - A purchasing department employee negotiates a price on parts with a supplier.

3 things to remember chapter 1

- Business and society form an interactive system. The actions of each have a significant influence on the other - Use stakeholder analysis to explain stakeholders' economic and social relationships with the organization - A wide range of forces shape the relationship between society and business. Corporate strategy must address expectations of all stakeholders

Both large and small businesses have adopted sustainable practices to what advantage?

- Cost savings from operational efficiency. - Opportunity to serve emerging economies. - Reduction of regulatory risk.

Which of the following statements is (are) correct about stakeholders' power?

- Different stakeholders have different types and degrees of power. - Shareholders' voting power is limited to the percentage of share owned by the shareholder. - It uses resources to achieve a desired decision or outcome.

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.

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.

3 things to remember chapter 3

- Large corporations are capable of wielding lots of influence. Stakeholders expect them to enhance society. - Socially responsible businesses attempt to balance economic, legal, and social obligations (enlightened self-interest) - There are 5 stages that companies move through on the road to corporate citizenship (elementary, engaged, innovative, integrative, and transforming)

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.

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 fiduciary duty of managers benefits a firm's:

- Shareholders. - Customers. - Employees.

3 things to remember chapter 2

- The 8 strategic stakeholder categories are customer, competitor, economy, technology, society, politics, the law, and the physical environment - Issue management requires the identification and analysis of issues, generation of options and solutions, action plans, and evaluation of results - Communication is central to effective stakeholder engagement. Social media is playing a larger role.

Global warming can be described by which of the following?

- The Earth has already warmed by between 0.7 and 1.1 degrees Celsius over the past century. - Burning fossil fuels is the leading contributor of global warming. - The amount of greenhouse gases in the atmosphere has increased by as much as 40 percent since the Industrial Revolution.

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.

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

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

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.

A just or fair ethical decision occurs when:

Benefits and burdens are distributed in fair proportions.

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.

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.

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank:

Both of these answers are correct: Influences the size of the nation's money supply; and influences the value of the dollar.

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.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

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

Corporate power.

Ethical challenges for information technology employees include:

Data privacy and copyright protection.

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

Descriptive argument.

The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called:

Ecological footprint.

A free enterprise system refers to:

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

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:

Economic sanctions.

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

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

Executives.

The drivers of stakeholder engagement are:

Goals, motivation, and operational capacity.

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

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

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

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.

Companies that believe they can make decisions unilaterally, without taking into consideration their impact on others, are:

Inactive.

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

Informational power.

A stakeholder analysis:

Involves understanding the nature of stakeholder interests.

The main drawback to utilitarian reasoning is that:

It is difficulty to accurately measure both costs and benefits.

Proactive companies are:

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

An example of an economic regulatory agency is:

National Labor Relations Board.

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

Networks.

Government regulations help balance negative externalities such as:

No smoking rules enforced to mitigate the effects of second-hand smoke.

Which of the following statements is not true about the population?

Over the next century, population growth is expected to be greatest in developed nations.

A thin layer of gas that protects the Earth from excessive ultraviolet radiation from the sun is:

Ozone.

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.

The theory of comparative advantage states that:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

The most successful global businesses in coming years will be those companies that:

Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action.

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.

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

Reporting mechanisms.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.

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.

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.

Cooperation between business and government often occurs when:

They encounter a common problem or enemy.

European Union regulators accused Uber of engaging in:

Unfair competition.

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

Utilitarian reasoning.

The five types of stakeholders' power recognized by most experts are:

Voting, economic, political, legal, and informational power.

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

Weak health and safety regulations.

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

be kind

chapters

chapter 1: the corporation and its stakeholders chapter 2: public issues and stakeholder relationships chapter 3: csr and citizenship chapter 4: globalization chapter 5: ethics chapter 6: organizational ethics chapter 7: business and government chapter 8: sustainability chapter 9: managing sustainability