Exam 3

Communities depend on business for: Schools. Health care. The arts.

Schools. Health care. The arts.

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

Receive full and sympathetic consideration.

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

Civil Rights Division.

Businesses can reduce income inequality by which action?

Commit to paying a living wage to all employees.

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

Exercise formal legal authority over company policy.

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

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

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.

Higher income for the supplier. Higher quality products for customers. A more stable supply of products.

Which of the following is a key feature of effective boards of directors?

Hold regular meetings without the CEO present.

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

Pollute the environment. Discriminate against employees. Make dangerous products like tobacco or weapons.

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.

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

The right to safety.

Factor conditions are strategic contributions focusing on:

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

Why should businesses get involved in the community? To win local support for business activity. To build social capital. To meet stakeholder demands.

To win local support for business activity. To build social capital. To meet stakeholder demands.

Social impacts of global supply chains include: Wages. Working conditions. Employee health.

Wages. Working conditions. Employee health.

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

financially literate.

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

48 percent.

An example of "insider trading" is:

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

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

Audit fatigue.

Where are workers not permitted to form independent unions?

Both some communist countries and some military dictatorships.

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

Both the solutions provided and the expected experience.

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

Compensation.

Which type of business community consists of people who work near the company?

Employee community.

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.

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

Federal Trade Commission.

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

Hazardous products.

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

Internet "do not track" rules.

What is one drawback of conducting supplier audits?

On-site inspections are expensive.

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.

Which major consumer right was violated according to the discussion case Volkswagen's "Clean Diesel" Campaign?

Right to privacy.

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

Small businesses.

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 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.

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

Unfairly burdened them with excess costs.

When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for: The supplier only. The lead firm only. Both the supplier and the lead firm. The public.

Both the supplier and the lead firm.

How do companies encourage their employees to volunteer their time? By sponsoring specific projects. By offering recognition for service. By publicizing opportunities to serve.

By sponsoring specific projects. By offering recognition for service. By publicizing opportunities to serve.

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

Constitution.

The law requiring that toys and infant products be tested before sale is called the:

Consumer Product Safety Improvement Act.

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 true about corporate boards?

Corporate boards average between 9 and 11 members.

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

Dreamers came to the United States from many global regions.

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

Education.

Business depends on the community for: Education. Public services. Transportation systems.

Education. Public services. Transportation systems.

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

Fewer than three people plus a manager.

Social capital is a phrase that refers to all of the following, except: The goodwill that is engendered by the fabric of social relations. A close relationship between companies and groups in the community. The norms and networks that enable collective action. Funds set aside for company events.

Funds set aside for company events.

Government rules on equal treatment of employees include:

Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force.

The company justified Wynn's high compensation package, in the discussion case Executive Misconduct at Wynn Resorts, by saying that:

He had led the company to total returns of 19 percent per year between 2002 and 2017.

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

Image advertisements.

The way organizational members believe others see the organization is called the corporate:

Image.

An argument against affirmative action is:

It is inconsistent with the principles of fairness and equality.

The "agency problem" arises when:

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

Which of the following is not a reason for businesses to establish community relations departments? Working with local governments. Managing donations of goods and services. Encouraging employee volunteerism. Managing international relations projects for economic development.

Managing international relations projects for economic development.

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.

According to the textbook, Asian American men now have higher median weekly earnings than white American men primarily because:

Most Asians had earned a bachelor's degree or higher.

Codes of conduct are accurately described by which statement?

Most early codes of conduct were developed by individual companies.

Under U.S. laws, who has the right to hold an election to choose what union they want to represent them, if any:

Most private and public workers.

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.

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

Often get the benefit of the doubt in uncertain circumstances.

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

Primary.

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.

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

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.

Environmental concerns for supply chain managers include:

The distance of transporting goods from their source to the consumer; and efficiency within the supply chain.

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

The old boys' network.

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

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

Racial harassment is illegal under:

Title VII of the Civil Rights Act.

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.

What is the primary goal of a community relations department?

To build relationships with important community groups.

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

User-generated content.

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

Vehicle accidents.

Institutional investors are sometimes referred to as:

Wall Street investors.

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

Weblining.

A rule of media communication is to: Be honest. Be current. Be accessible.

Be honest. Be current. Be accessible.

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

Both a child's age and the work hours.

Women in the U.S. workforce are accurately characterized by which of these statements?

The participation rate has been between 46 and 47 percent since the late 2000s; and the participation rates of women and men in the workforce have diverged.

In 2017, median compensation for directors at the largest U.S. corporations was around:

$300,000.

A strong employer-employee relationship is central to:

Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.

In 2018, what was the most valuable brand according to Brand Directory?

Amazon.

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.

Which of these programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers? Sustainable Compliance Initiative. Federal Trade Commission. Sedex Global. Both Sustainable Compliance Initiative and Sedex Global.

Both Sustainable Compliance Initiative and Sedex Global.

Sexual harassment applies to:

Either men or women who are being harassed.

Media training is especially important for which company roles?

Both board of directors and General Counsel.

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

Both consumer advocacy groups and government agencies.

Investors may receive an economic benefit from the ownership of stock by receiving:

Both dividends and capital gains.

As a stakeholder, suppliers' interests include:

Both earning income and utilizing productive capacity efficiently.

Which of these statements is not true about supply chain transparency? A firm's social, ethical, and environmental responsibility is revealed. Technology is enhancing supplier transparency. Brand loyalty among consumers is reduced by a firm's revelations. Correct Recent audits and certifications are publicized.

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

A good way for a business to express its commitment to corporate citizenship is: By establishing community relations programs. By behaving responsibly toward all its stakeholders. By correcting problems associated with its operations.

By establishing community relations programs. By behaving responsibly toward all its stakeholders. By correcting problems associated with its operations.

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

Cookie.

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

Corporate crisis.

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

Corporations.

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

Diversity.

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

Divesting from Chinese companies that made products using forced labor.

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

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

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? Use targeted business methods to assess the impact of gifts. Align priorities with employee interests. Establish priorities even if they conflict with the firm's core values. Draw on unique competencies of the business.

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

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

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

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.

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

Flagging.

Seeking to restore the firm's reputation takes place during this effective crisis management step:

Follow up and, where appropriate, make amends to those affected.

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

Forced labor.

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

Front-running.

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.

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.

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

Iceland, Turkey.

Which of these situations is not a reason for a firm to communicate through the media? Repairing a damaged image. Ignoring or downplaying an organizational crisis. Managing its public relations. Engaging with multiple stakeholders.

Ignoring or downplaying an organizational crisis.

A financial services firm decided to assess the return on its social investment in an educational program in local schools. As part of its assessment, it measured the improvement in learning among students who had participated in the program, compared with the learning of students who had not. Which of the following elements was assessed?

Impacts.

Supporters of declassifying board elections argue that this approach:

Increases accountability and responsiveness to shareholders.

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

Informational.

The major federal consumer protection agencies are authorized by law to:

Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers; and substitute government-mandated standards for decision making by private buyers and sellers.

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.

Employee theft is correctly described by which statement?

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

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

It is one of mutual interdependence.

Which of the following statements is not true about the organization Consumer Reports?

It is supported by the federal government.

One argument in favor of affirmative action is:

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

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

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

Which law eliminated certain time restrictions for filing pay discrimination lawsuits?

Lilly Ledbetter Fair Pay Act of 2009.

Minority enterprises often do business in locations with:

Low-quality public services.

The "gig" (or sharing) economy is accurately described by which of these?

Many companies have become more cost-efficient; and the generally low wages have increased the welfare burden on the government.

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.

Millennials entering the workforce. Immigration from other countries. Shifting patterns of work and retirement.

In 2015, the largest generation in the workforce was:

Millennials.

Employees in the United States have a legal right to:

Organize and bargain collectively; and a safe and healthy workplace.

The corporate reputation of distinction must be built:

Over time.

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.

Which industry gives the most in-kind contributions?

Pharmaceutical companies.

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.

What was the primary motivator for corporate giving, according to the National Bureau of Economic Research? Financial. Philanthropical. Correct Political influence. Popularity.

Philanthropical.

Another term for corporate giving is corporate:

Philanthropy.

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

Right.

The share of all giving made up by in-kind contributions of products and services has been:

Rising steadily over the past decade.

Studying the underlying cause of repeated supplier violations is called:

Root cause analysis.

Bias within the hiring process refers to:

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

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

Set motor vehicle safety standards.

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

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

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

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.

Which of the following describe why the consumer movement exists?

Some product advertising claims have been inflated; and some businesses have violated the public's privacy.

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.

Consumers owe more money on their home loans (mortgages) than on any other kind of household debt. After mortgages, what makes up the largest portion of household debt?

Student loans.

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

Supplier development.

What is the first step that lead firms take to develop their suppliers?

Supplier monitoring.

A firm can affect the general public's opinion of its reputation through: Television advertisements. Billboard messages. Blogs written by CEOs.

Television advertisements. Billboard messages. Blogs written by CEOs.

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 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. Correct Customer service is more effective. These businesses are better able to attract and retain workers from a variety of backgrounds. Businesses with a diverse workforce boost innovation for the firm.

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.

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.

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.

The number of widely used suppliers decreased. Lead firms preferred larger suppliers. Lead firms sought ongoing strategic relationships.

Which of the following is not true about occupational segregation? It concentrates women in traditionally female-dominated jobs. The pay gap in American businesses persists, in part, because of it. It means that women cannot get the jobs that could break the cycle of relatively low pay. The technology sector is dominated by women.

The technology sector is dominated by women.

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.

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.

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

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.

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).

A prime social responsibility of business is to safeguard consumers:

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

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.

During crisis management, doing the right thing should include:

Both accepting responsibility and expressing regret.

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.

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.

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

Consumers International.

Romantic relationships in the workplace are described by which statement?

Many companies allow managers to become romantically involved with subordinates, so long as they do not supervise them directly.

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

relationship with the public and public image.

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.

Which of the following represents a type of corporate crisis? Acts of God. Management indecision. Mechanical problems.

Acts of God. Management indecision. Mechanical problems.