Final Exam Study Guide MGT 481

Which of the following are awarded to deter similar actions and punish a corporation that has exhibited malicious and willful misconduct?

Punitive damages

The study of which actions are "right" and which actions are "wrong" is called:

ethics

When a factory dumps toxic waste into a stream, it results in an _____ cost for society.

external

The idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods is known as:

fair trade

In the realm of international law, ______ are found mainly in treaties, creates binding rights, prohibitions, and duties.

hard laws

Rights to life are an example of :

hypernorms

An express advocacy communication that is not coordinated with a candidate is known as an:

independent expenditure

According to the Committee for Economic Development, the ______ circle of social responsibility aims at efficient execution of economic functions so that the society can achieve economic growth.

inner

The concentric circle of social responsibility that encompasses responsibility to exercise the economic function with a sensitive awareness of changing social values and priorities is the:

intermediate circle

The idea that a manager simply "knows" the difference between right and wrong actions is fundamental to the:

intuition ethic

When employees at Dow Chemical Company face an ethical decision they are told to ask: "what feels right or wrong about the situation or action?" This is an application of the:

intuition ethic

A traditional business model:

is one in which the central strategy for creating value is based on meeting market demands while complying with the law.

Advocates of social responsibility feel that:

it is an ethical duty of corporations to promot social justice

A manager makes ethical decisions based on what he feels he can get away with given his power in the organization's hierarchy. He is using the principle of the:

might-equals-right ethic

Which of the following defines a business, differentiates it from competitors, explains relationships with stakeholders, and focuses energy on critical activities and goals?

mission statement

When managers are convicted of a crime, their prison sentences are based on a:

numerical point system

The idea that the needs of workers should be subordinate to the needs of the organization is the basis of the:

organization ethic

A group that represents the political interests of many companies and industries is called a:

peak association

Civil regulation is also known as:

private regulation

When a manager is trying to decide how to treat a subordinate, he asks himself, "If I treat this person in this way, would I want to switch places with this subordinate and have my supervisor treat me in this way?" In this scenario, he is applying the:

reversibility test.

When a company assesses its social impact on society, it has performed a:

social audit

According to ________, rich people and dominant companies are morally superior.

social darwinism

At most companies CSR is still ________, and largely ______, to core business strategies.

supplemental; incidental

The practice of a corporation publishing information about its economic, social, and environmental performance is known as:

sustainability reporting

The unspoken, unwritten beliefs about the nature of the company and what behaviors bring success are called:

tacit underlying values

The conventionalist ethic is a thin justification for questionable behavior by managers. T/F

true

A _____ is an agent of a company whose corporate role puts him/her in a position of power over the fate of not just stockholders, but also others such as customers, employees, and communities.

trustee

At one point of time, courts consistently held charitable gifts to be _____, that is, "beyond the law, " because the charters prevalent during that time did not expressly permit them.

ultra vires

"Actions that promote happiness are right while actions that promote unhappiness are wrong" is the basis of the:

utilitarian ethic

The idea that character development is the wellspring of ethical behavior is known as the:

virtue ethic

The four cardinal virtues identified by Plato are justice, temperance, courage, and:

wisdom

What is a "significant regulatory action?"

A rule with an annual effect on the economy of $100 million or more

Executive-branch agencies have to submit proposed and final rules to the ______, whereas independent regulatory commissions must follow procedures in the Office of Information and Regulatory Affairs.

Administrative Procedures Act

The basic steps of the rule-making process were set forth in the:

Administrative Procedures Act

_________ occurs when a lawmaker or official asks for, is offered, or receives something valuable in return for being influenced to perform an official act.

Bribery

During the first wave of regulation, most of the offices that were set up to perform regulatory functions were primarily promotional in nature. Which office was an exception?

Comptroller of the Currency

Which of the following is a relevant categorization of stakeholders according to their orientation to the firm?

Confrontational, neutral, or supportive

_______ values are the central beliefs that guide decisions and reside deep in a company's culture.

Core

Identify the corporate culture level that encompasses formal statements of belief and intention.

Espoused values

Which of the following schools holds that in terms of biological and psychological needs, human nature is the same everywhere?

Ethical Universalism

A policy is a decree issued by an agency to implement a law passed by Congress. T/F

False

Foreign direct investment is the limited, speculative purchase of stocks and bonds in a foreign company by individuals. T/F

False

The Global Compact is a code of conduct that enforces its principles. T/F

False

The Golden Rule of ethics is: "Justice is nothing else that the interest of the stronger." T/F

False

The largest and most powerful peak association is the U.S. Legislative Exchange Council, which was founded in 1912. T/F

False

The ratio of the basic salary of men to women by employee category is an example of an economic performance indicator in the triple bottom line. T/F

False

The _______ is a daily government publication containing proposed rules, final rules, and notices of public meeting by regulatory agencies, and presidential executive orders.

Federal Register

When ready, rules in their final wording are printed in the :

Federal Register

Corporations are not allowed to invoke the ______ amendment right against self-incrimination when prosecutors ask them to turn over documents related to a crime.

Fifth

The ________ protects the rights of business to organize and press its agenda on the government.

First Amendment

________ occurs when a lawmaker or official seeks or receives anything of value because of an official action taken in the past or to be performed in the future.

Illegal gratuity

Which of the following is a major reason for the diffusion and decentralization of power in the government?

Increased complexity of government

The first independent regulatory commission that was set up by the Congress to regulate the railroads was the :

Interstate Commerce Commission

_______ advocacy presents a political view or comment on an electoral race.

Issue

Which of the following statements about the Seventeenth Amendment is true?

It instituted the direct election of senators by voters in each state.

Which of the following statements is true about the Department of Homeland Security?

It issues rules affecting every industry.

Which of the following is true regarding the U.S Constitution?

It makes the federal government more powerful than the governments of the individual states.

Which of the following statements is true about the regulation of lobbyists?

Lobbyists have been regulated since 1946, when they were first required to register with the clerks of the house and Senate.

The idea that "the ends justify the means" was a basic tenet of:

Machiavelli

When a corporation aligns its charitable strategy with its business strategy it is known as:

Strategic Philanthropy

Corporate cultural values found in documents such as mission statements and codes of ethics are known as:

espoused values

Which of the following ethical principles is based on the fundamental idea of "a command that admits no exception?"

The Categorical Imperative

In considering whether or not to do a certain action based on ethical reasoning, a manager asks herself, "If I act in this way, would my family approve of my actions?" Which ethical principles is she applying?

The Disclosure Rule

Which ethical principle asserts that right actions are found in the area between extreme behaviors- labeled as excess on the one hand and deficiency on the other?

The Doctrine of the Mean

Which act was passes by Congress in 2008 to restore financial stability?

The Emergency Economic Stabilization Act

Which principle states that a manager will act ethically if the good effects outweigh the evil?

The Principle of Justice

Identify the ethical principle that states that managers are responsible for the consequences when they create situations leading to both good and evil effects.

The Principle of Proportionality

When a company changes its philosophy of giving money to charitable organizations from pure generosity to commercial objectives, it is called strategic philanthropy. T/F

True

Which of the following is true about typical MNCs?

They remain national rather than international

The purpose of this concept is to appraise the overall impact of a firm's operations by adding non-financial measures to traditional financial results.

Triple Bottom Line

A strategy is a basic approach, method, or plan for achieving an objective. T/F

True

Almost all DI comes from multinational corporations. T/F

True

Congress not only passes and amends laws but also approves presidential nominees as head regulators and make appropriation to agencies. T/F

True

Even without making direct investments in a nation, powerful MNCs can shake its economy . T/F

True

Immediately after the U.s. Civil War, big business dominated both the federal government and the state governments to an extent that has not been seen since that time T/F

True

Regulation is the effort by governments to achieve economic or social outcomes by directing the behavior of citizens, groups, and corporations. T/F

True

The U.S Constitution allows for judicial review of laws to determine if officials of the government exceed their authority. T/F

True

The U.S. Constitution is a federal system in which governmental powers are divided between a national government and 50 state governments. T/F

True

The application of one nation's laws within the borders of another nation is known as extraterritoriality. T/F

True

The duty of a company to create wealth in ways to avoid harm to, protect, or enhance societal assets is called corporate social responsibility. T/F

True

The independent regulatory commission is a regulatory agency run by a small group of commissioners independent of political control. T/F

True

The top management of a company sets the tone for the company's social goals. T/F

True

There is no single formula for social responsibility that fits all companies. T/F

True

There is no specific part of the brain that makes ethical decisions. T/F

True

When a civil court requires payments, by a company, that are in excess of actual losses to injured parties, the payments are called punitive damages. T/F

True

When one company supplies the entire market for a good or service more cheaply than a combination of smaller firms, it has:

a natural monopoly

The first wave of regulation:

allowed the government to give vast financial subsidies and grants to private interests.

The idea that business should be conducted without considering ethical standards or societal ideals is known as the theory of:

amorality

Visible behaviors like patterns of interaction come under which of the following corporate culture levels?

artifacts

As a first step in implementing corporate social responsibility, a corporation should:

assess its current situation and activities

The study of good and evil, right and wrong, and just and unjust in business is called:

business ethics

According to conservative economists:

business is most responsible when it makes money efficiently.

When American Express Co. advertised that it would donate 3 cents per transaction to nonprofit anti-hunger groups over a two-month period for all charges against its credit-card, it was an example of:

cause-related marketing

formal statements of aspirations, principles, guidelines and rules for corporate behavior are known as:

codes of conduct

When a civil court requires payments by a company to correct "concrete losses" experienced by injured parties, these payments are called:

compensatory damages

A ______ approach teaches employees to meet legal and regulatory requirements and emphasizes following rules.

compliance

The duty of a corporation to avoid harm to the assets of a community is called:

corporate social responsibility

A method of ethical reasoning in which insight comes from answering a list of questions is known as the:

critical questions approach

A progressive business model:

defines a strategy that meets market needs by mitigating social problems.

_______ is the process of removing or substantially reducing the body of control covering an industry.

deregulation