SCMA Chapter 5 SUPPLEMENT

Social accounting can measure what types of things?

Answer: Answers could include: brand equity, management talent, human capital development and benefits, research and development, productivity, philanthropy, and taxes paid.

Those resources held in the common are often misallocated.

True

Analysis of environmental impacts of products from the design stage through end-of-life is known as ________.

life cycle assessment

The 3 Rs for sustainability are ________.

reduce, reuse, and recycle

Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales and profits.

true

One environmentally friendly approach to product design is to use lighter components.

true

Some governments are implementing laws that mandate the outright reduction of GHG emissions by forcing companies to pay taxes based on the amount of GHG emissions that are emitted.

true

Within environmental regulation, the "cap-and-trade" principle essentially allows companies to buy and sell the right to pollute.

true

Boeing's use of epoxy composites and titanium graphite laminate represent the environmentally friendly concept of ________.

using lighter materials

) Three concepts that have proven helpful as managers consider sustainability are: ________, ________, ________.

1) a systems view; 2) understanding the "commons"; 3) the triple bottom line

Identify three ways in which society is trying to address the misallocation of resources held in the common.

1) moving some of the common to private property; (2) allocation of rights; (3) regulation

What is the most critical phase in product life cycle assessment? A) product design B) purchasing C) production D) shipping E) disposal

A) product design

Companies can improve the triple bottom line with sustainability by minimizing what four things? A) raw material, energy, water, and waste B) raw material, transport, manufacture, and disposal C) people, planet, profit, and pollution D) pollution, carbon footprint, profit, and people E) lawsuits, advertisements, coupons, and layoffs

A) raw material, energy, water, and waste

Life cycle assessment determines which stage of the product life cycle that the product currently is in.

Answer: FALSE

Corporate social responsibility involves managerial decision making that considers what three impacts?

Answer: environmental, societal, and financial

The triple bottom line includes the three Ps of ________.

Answer: people, planet, and profit

A firm is considering five different product designs. Data concerning the design for disassembly for each of the designs are provided in the table below. Which design appears to be the best environmental design based on revenue retrieval opportunity? Product Design Resale Revenue per Unit Recycling Revenue per Unit Processing Cost per Unit Disposal Cost per Unit 1 $30.00 $12.00 $15.00 $40.00 2 $10.00 $10.00 $3.00 $1.00 3 $5.00 $55.00 $48.00 $10.00 4 $4.00 $2.00 $1.00 $0.50 5 $42.00 $3.00 $8.00 $32.00 A) Design 1 B) Design 2 C) Design 3 D) Design 4 E) Design 5

B) Design 2

What refers to looking at a product's life from design to disposal, including all the resources required? A) the commons B) a systems view C) the triple bottom line D) shared value E) carbon footprint

B) a systems view

Which of the following refers to how companies remain in business? A) corporate social responsibility B) economic sustainability C) carbon footprint D) sustainability E) closed-loop supply chains

B) economic sustainability

What refers to analysis of environmental impacts of products from the design stage through end-of-life? A) ISO 14000 B) life cycle assessment C) carbon footprint D) economic sustainability E) closed-loop supply chain analysis

B) life cycle assessment

Suppose that a firm has made the following computations for its design for disassembly: processing cost per unit = $12.00, disposal cost per unit = $6.00, resale revenue per unit = $20.00, and recycling revenue per unit = $7.00. What is the revenue retrieval for this product? A) $27.00 B) $8.00 C) $9.00 D) $1.00 E) $20.00

C) $9.00

What allows companies in Europe to buy and sell allowances for the right to pollute? A) UNFCCC B) ISO 9000 C) EUETS D) ISO 14000 E) EPA

C) EUETS

What does CSR stand for? A) consumer sustainability requirements B) critical sustainability ratio C) corporate social responsibility D) corporate sustainability record E) corporate society ratio

C) corporate social responsibility

Within environmental regulation, the "cap-and-trade" principle produces a market that allows companies to purchase and sell what? A) hats that promote environmental awareness B) shares of stock in renewable energy sources C) emission allowances D) space in landfills E) carbon reduction sweepers

C) emission allowances

One way to think of sustainability is to consider the systems necessary to support the triple bottom line of the three Ps, which are: A) price, promotion, and product. B) people, places, and products. C) people, planet, and profit. D) price, promotion, and profit. E) people, pollution, and profit.

C) people, planet, and profit.

What does UNFCCC stand for? A) United National Federation Council on Climate Change B) UN Federation for Climate Change Cooperation C) Uniform National Framework Climate Change Code D) UN Framework Convention on Climate Change E) UN Foundation for the Consequences of Climate Change

D) UN Framework Convention on Climate Change

The European Union Emissions Trading System works on what principle? A) Thatcher's Theory of the Commons B) pollute-and-pay C) socialism D) cap-and-trade E) tax the richer companies more to pay for pollution control

D) cap-and-trade

Which of the following refers to developing policies and practices that enhance the competiveness of an organization while advancing the economic and social conditions of the community in which it operates? A) the commons B) a systems view C) the triple bottom line D) shared value E) carbon footprint

D) shared value

What refers to meeting the needs of the present without compromising the ability of future generations to meet their needs? A) corporate social responsibility B) economic sustainability C) carbon footprint D) sustainability E) closed-loop supply chains

D) sustainability

Many firms approach corporate social responsibility through the concept of "shared value." What is meant by "shared value"?

Developing policies and practices that enhance the competitiveness of the organization while advancing the economic and social conditions in the communities in which it operates.

Which of the following is true about ISO 14000 certification? A) It can reduce exposure to liability. B) It deals with environmental management. C) It offers a good systematic approach to pollution prevention. D) One of its core elements is life cycle assessment. E) All of the above are true.

E) All of the above are true.

What does ISO stand for? A) Industry Standards Organization B) International Safety Organization C) Industrial Safety Organization D) International Standards for Oxygen E) International Organization for Standardization

E) International Organization for Standardization

The measure of total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person is known as: A) radioactive decay. B) nitrogen footprint. C) ozone factor. D) pollution index. E) carbon footprint.

E) carbon footprint.

Corporate social responsibility involves managerial decision making that considers what three impacts? A) environmental, legal, and financial B) environmental, legal, and societal C) educational, environmental, and societal D) societal, legal, and financial E) environmental, societal, and financial

E) environmental, societal, and financial

Resources held by the public are also said to be held in what? A) escrow B) the system C) contempt D) perpetuity E) the common

E) the common

Sustainability suggests that supplier selection and performance criteria should evaluate what types of issues with respect to the employees of the suppliers?

Examples include: safety in the work environment, whether living wages are paid, if child labor is used, and whether work hours are excessive.

Managerial decision making that considers environmental, societal, and financial impacts is known as sustainability.

FALSE

Meeting the needs of the present without compromising the ability of future generations to meet their needs is known as corporate social responsibility

False

A series of environmental management standards established by the International Organization for Standardization is called ________.

ISO 14000

Suppose that a firm has made the following computations for its design for disassembly: processing cost per unit = $13.00, disposal cost per unit = $9.00, resale revenue per unit = $22.00, and recycling revenue per unit = $8.00. What is the revenue retrieval for this product?

Revenue retrieval = $22.00 + $8.00 - $13.00 - $9.00 = $8.00

What is the formula for revenue retrieval of a product that has reached the end of its life?

Revenue retrieval = Total resale revenue + Total recycling revenue - Total processing cost - Total disposal cost

A firm is considering three different product designs. Data concerning the design for disassembly for each of the designs are provided in the table below. Which design appears to be the best environmental design based on revenue retrieval opportunity? Product Design Resale Revenue per Unit Recycling Revenue per Unit Processing Cost per Unit Disposal Cost per Unit 1 $100 $10 $40 $5 2 $80 $50 $20 $20 3 $200 $25 $130 $20

Revenue retrieval for Design 1 = $100 + $10 - $40 - $5 = $65 Revenue retrieval for Design 2 = $80 + $50 - $20 - $20 = $90 Revenue retrieval for Design 3 = $200 + $25 - $130 - $20 = $75 Thus, with the highest revenue retrieval opportunity, Design 2 appears best.

Dow Chemical finding both profit and social benefits in canola and sunflower seeds is an example of the concept of ________.

Shared value

Why is product design the most critical phase in product life cycle assessment?

The decisions that are made during this phase greatly affect materials, quality, cost, processes, related packaging and logistics, and ultimately how the product will be processed when discarded."

Identify the five core elements of ISO 14000.

The five core elements of ISO 14000 are environmental management, auditing, performance evaluation, labeling, and life cycle assessment.

Provide at least two examples of misallocation of resources held in the common.

The text mentions: (1) depletion of fish in international waters, and (2) polluted air and waterways.

Explain how to improve the triple bottom line with sustainability

Throughout the supply chain, firms should strive to minimize raw material, energy, water, and waste in order to maximize the planet, people, and profit.

Internet-based technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance.

True

Identify two non-governmental organizations that provide guidance to businesses for reducing environmental impacts from disposal of materials to reductions in greenhouse gas emissions.

UN Framework Convention on Climate Change (UNFCCC), and (2) International Organization for Standardization (ISO)

The European Union Emissions Trading System works on the ________ principle.

cap-and-trade

________ supply chains consider forward and reverse product flows over the entire life cycle.

close loop

Companies that practice ________ introduce policies that consider environmental, societal, and financial impacts in their decision making.

corporate social responsibility (or CSR)

Design for ________ encourages designers to create products that can be taken apart and whose components can be recovered, minimizing impact on the environment.

dissasembly

True sustainability involves thinking not only about environmental resources but also about what additional aspects?

employees, customers, community, and the company's reputation

Opportunities to reduce environmental impact during production typically revolve around the three themes of ________.

energy, water, and environmental contamination

A measure of the total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person is the nitrogen footprint.

false

ISO 9000 is a series of environmental management standards that contain five core elements.

false

The UNFCCC works on the "cap-and-trade" principle.

false

UPS plans its truck routes with the fewest possible right turns.

false

Inputs to a production system that are held in the common do not have market ________.

prices

To support economic sustainability, firms may supplement standard financial accounting and reporting with some version of ________.

social accounting

The term ________ refers to meeting the needs of the present without compromising the ability of future generations to meet their needs.

sustainability

What percentage of the manufacturing process from Subaru's Lafayette, Indiana, plant goes to the landfill? A) 0% B) 2% C) 5% D) 12.5% E) 15%

A) 0%

Describe some ways in which operations managers should address employee working conditions.

Answer: Answers will vary. Examples include: training and safety orientations, before-shift exercises, ear plugs, safety goggles, rest breaks, and proper disposal of material and chemical waste.

A design for disassembly cost-benefit analysis compares the amount of revenue that might be reclaimed against the cost of disposing of the product at its end-of-life.

Answer: TRUE

The operations manager's greatest opportunity to make substantial contributions to the company's environmental objectives occurs during product life cycle assessment.

Answer: TRUE

What type of supply chains consider forward and reverse product flows over the entire life cycle? A) two-pronged B) life cycle C) closed-loop D) socially responsible E) end-to-end

C) closed-loop

Economic sustainability means appropriately allocating scarce resources to make a profit.

Answer: TRUE

Reuse is one of the 3 Rs for sustainability.

Answer: TRUE

Social and environmental sustainability do not exist without economic sustainability.

Answer: TRUE

Sustainability is often associated with corporate social responsibility.

Answer: TRUE

Inputs to a production system that do not have market prices are those held in the ________.

Answer: common

The carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or indirectly by what four things? A) a factory, an office building, a warehouse, or a truck B) an organization, a product, an event, or a person C) an organization, a product, an animal, or a person D) an organization, a government, a product, or a person E) a product, an event, a person, or an animal

B) an organization, a product, an event, or a person

Products are more "environmentally friendly" when they are made: A) using cheaper materials. B) using less energy. C) according to OSHA standards. D) where environmental regulations are lax. E) more difficult to disassemble.

B) using less energy.

What percentage of the 2012 Mercedes S-class is recyclable? A) 25% B) 50% C) 75% D) 95% E) 100%

D) 95%

What is sometimes referred to as the fourth "R" of sustainability? A) reclaim B) recover C) renew D) improved reputation E) reproduce

D) improved reputation

What are the 3 Rs for sustainability? A) reduce, reuse, and reclaim B) reduce, reproduce, and recycle C) reproduce, reuse, and recycle D) reduce, reuse, and recycle E) reduce, reclaim, and recycle

D) reduce, reuse, and recycle

________ technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance.

internet based