BA325 Exam 3

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

$300,000.

An example of "insider trading" is:

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

Why does a diverse and inclusive workforce benefit a firm supporting a global market?

A variety of language skills serves the global customer base well.

Communities depend on business for:

All of the above.

A firm can affect the general public's opinion of its reputation through:

All of these answers are correct.

A good way for a business to express its commitment to corporate citizenship is:

All of these answers are correct.

Business depends on the community for:

All of these answers are correct.

Child care assistance in the workplace is accurately described by:

All of these answers are correct.

Employee Assistance Programs (EAPs) are correctly described by which of these statements?

All of these answers are correct.

How do companies encourage their employees to volunteer their time?

All of these answers are correct.

Richard M. Locke argues that global supply chains are best managed through a combination of public and private governance because:

All of these answers are correct.

Sexual harassment is accurately described by which statement(s)?

All of these answers are correct.

When lead firms work with suppliers they can create shared value such as:

All of these answers are correct.

Which of the following is (are) true regarding a recognizable brand?

All of these answers are correct.

Which of the following represents a type of corporate crisis?

All of these answers are correct.

Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?

All of these answers are correct.

Why does the inclusion of women on corporate boards improve company performance?

All of these answers are correct.

Why should businesses get involved in the community?

All of these answers are correct.

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

All of these answers are correct. (Pollute the environment., Discriminate against employees., Make dangerous products like tobacco or weapons.)

One alternative to product liability lawsuits is called:

Alternative dispute resolution.

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

Amazon.

Which of these statements is (are) true regarding sexual harassment?

An imbalance of power.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called:

Antitrust laws.

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.

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

Audit fatigue.

Which of these programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers?

Both Sustainable Compliance Initiative and Sedex Global.

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

Both a child's age and the work hours.

During crisis management, doing the right thing should include:

Both accepting responsibility and expressing regret.

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 measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard?

Both environmental performance and product quality.

A strong employer-employee relationship is central to:

Both of these answers are correct: Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.

Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by:

Both of these answers are correct: Communicating a zero-tolerance policy on harassment to all employees; and establishing a complaint procedure and acting quickly to resolve any problems.

Which of these statements is true regarding the Class Action Fairness Act of 2005?

Both of these answers are correct: Lawyers were restricted from shopping for friendly venues to try interstate cases; and excessive attorney compensation was limited.

Which industry(ies) have taken the lead in revitalizing neighborhoods?

Both of these answers are correct: Life insurance firms; and health insurance companies.

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

Both of these answers are correct: Many companies have become more cost-efficient; and the generally low wages have increased the welfare burden on the government.

Employees in the United States have a legal right to:

Both of these answers are correct: Organize and bargain collectively; and a safe and healthy workplace.

Which of the following describe why the consumer movement exists?

Both of these answers are correct: Some product advertising claims have been inflated; and some businesses have violated the public's privacy.

Environmental concerns for supply chain managers include:

Both of these answers are correct: The distance of transporting goods from their source to the consumer; and efficiency within the supply chain.

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

Both of these answers are correct: 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.

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

Both relationship with the public and public image.

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.

Businesses can reduce income inequality by which action?

Commit to paying a living wage to all employees.

The EU's 2018 General Data Protection Regulation applies to:

Companies anywhere who provide services to European customers.

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.

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

Consumers International.

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

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.

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Customer call centers.

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

Data aggregators.

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.

Sexual harassment applies to:

Either men or women who are being harassed.

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

Employee community.

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.

Corporate governance involves the exercise of control over a company's:

Entire corporate direction.

The practice of adapting the job to the worker is called:

Ergonomics.

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

Exercise formal legal authority over company policy.

A reason for institutions becoming more assertive in promoting the interests of their member investors is:

Expressing dissatisfaction with management performance by selling a large block of stock would reduce the value of the institution's holdings.

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.

Which of the following is not a goal of consumer protection laws?

Facilitate consumers' getting extended credit when making purchases.

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

Federal Trade Commission.

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

Fewer than three people plus a manager.

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.

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.

Social capital is a phrase that refers to all of the following, except:

Funds set aside for company events.

When women and minorities are highly competent but are unable to attain executive positions, this is typically called:

Glass ceiling.

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

Hazardous products.

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.

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

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

An argument in support of high executive compensation is:

High salaries provide an incentive for innovation and risk-taking.

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

Hold regular meetings without the CEO present.

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?

Ignoring or downplaying an organizational crisis.

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.

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.

In 2014, of the following nations, the fastest-growing stock market was in:

India.

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

Informational.

Institutional investors are best described by which statement?

Institutions invest their funds by purchasing shares of stock in corporations on behalf of their investors or members.

Which type of supplier audit is being used when a company hires and trains its own staff of auditors?

Internal.

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

Internet "do not track" rules.

An argument against affirmative action is:

It is inconsistent with the principles of fairness and equality.

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.

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 "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?

Managing international relations projects for economic development.

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.

Many executives believe that a diverse workforce boosts innovation because:

Many unique perspectives contribute to a better solution.

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.

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.

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

Often get the benefit of the doubt in uncertain circumstances.

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.

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.

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?

Philanthropical.

Another term for corporate giving is corporate:

Philanthropy.

According to the U.S. Department of Labor, some of the most dangerous jobs include:

Police, fire fighters, prison guards.

States that have adopted right-to-work laws:

Prevent unions from requiring all workers they represent to pay fees or dues.

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.

Purposefully planned messages sent to selected media promoting the company without payment to the media is called:

Publicity.

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

Right to privacy.

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.

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.

When Fidelity partnered with the Capital Good Fund to service loans to disadvantaged communities, this was an example of:

Skills-based volunteerism.

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

Small businesses.

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.

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 visual representation of the many links between a lead firm and its suppliers, superimposed on a geographical map is called a:

Supply chain map.

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 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 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.

Benefits of managing diversity and inclusion effectively includes all except:

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 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.

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.

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

This type of audit is perceived by stakeholders as more objective and reliable:

Third-party.

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

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

Which type of supplier is hired to provide products or services directly to a lead firm?

Tier-1.

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.

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.

A reason for an increase in employee monitoring does not include:

To reduce the employer's health insurance premiums.

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).

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.

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

Vehicle accidents.

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct.

Institutional investors are sometimes referred to as:

Wall Street investors.

The media control technique called bridging is exemplified by which of these phrases?

"While that is true, what is important to know is...".

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

Diversity.

Which of the following is not a strategy to help companies get the most benefit from their contributions?

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

Employee theft is correctly described by which statement?

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

In 2015, the largest generation in the workforce was:

Millennials.

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.

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

Receive full and sympathetic consideration.

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.

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

User-generated content.

A prime social responsibility of business is to safeguard consumers:

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