BA325 Exam 3

Building a positive and ethical reputation requires a firm to:

Convey a compelling story about the firm and what it stands for.

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

Dreamers came to the United States from many global regions.

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

Front-running.

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.

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.

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.

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.

What is one drawback of conducting supplier audits?

On-site inspections are expensive.

Employee theft is correctly described by which statement?

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

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

$300,000.

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

-Alternative courses of action are more realistically considered. -Women bring different life experiences to discussions. -Women are more likely to raise multiple stakeholder concerns.

Media training is especially important for which company roles?

-Board of directors. -General Counsel.

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.

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

-Communicating a zero-tolerance policy on harassment to all employees. -Establishing a complaint procedure and acting quickly to resolve any problems.

As a stakeholder, suppliers' interests include:

-Earning income. -Utilizing productive capacity efficiently.

Business depends on the community for:

-Education. -Public services. -Transportation systems.

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

-Environmental performance. -Product quality.

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.

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.

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

-Lawyers were restricted from shopping for friendly venues to try interstate cases. -Excessive attorney compensation was limited.

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

-Life insurance firms. -Health insurance companies.

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.

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

-Relationship with the public. -Public image.

Reports filed with the SEC provide information on a company's:

-Sales and earnings. -Depreciation by line of business. -Details of foreign operations.

Where are workers not permitted to form independent unions?

-Some communist countries. -Some military dictatorships.

Which of the following describe why the consumer movement exists?

-Some product advertising claims have been inflated. -Some businesses have violated the public's privacy.

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

-Sustainable Compliance Initiative. -Sedex Global.

When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for:

-The supplier only. -The lead firm only.

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.

Why should businesses get involved in the community?

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

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.

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.

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.

Which of these statements is not true about supply chain transparency?

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

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.

According to the new social contract:

Companies try to attract workers by giving them interesting and challenging work.

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

Consumers International.

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

Corporate crisis.

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.

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.

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

Education.

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

Ergonomics.

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.

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.

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

Fewer than three people plus a manager.

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

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

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

Glass ceiling.

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.

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

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

According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?

Stakeholder management.

Consumer groups have generally opposed the idea of product liability reform using which argument?

Strict liability should be retained.

A living wage has been defined as a wage that:

Supports half the basic needs of an average-sized family, based on local prices.

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.

Factor conditions are strategic contributions focusing on:

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

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.

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.

What is one reason that firms partner with communities to increase economic development?

To develop workplace skills.

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

To reduce the employer's health insurance premiums.

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.

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.

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.

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.

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.

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

Right to privacy.

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

Voluntary industry codes of conduct.

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

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

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

Constitution.

Minority, women, and disabled veteran-owned firms are accurately described by which of these?

They often partner with larger firms in a diversity supplier role.

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

Hold regular meetings without the CEO present.

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).

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

India.

Which of the following is not a reason for businesses to establish community relations departments?

Managing international relations projects for economic development.

In 2015, the largest generation in the workforce was:

Millennials.

Which industry gives the most in-kind contributions?

Pharmaceutical companies.

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.

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.

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.

Which of the following is not true about occupational segregation?

The technology sector is dominated by women.

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.

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.

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

Compensation.

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.

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.

One argument in favor of affirmative action is:

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

A good public relations program:

Manages the firm's public image and its relationship with the public.

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.

The corporate reputation of distinction must be built:

Over time.

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

Skills-based volunteerism.

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

Supplier development.

Which of the following represents a type of corporate crisis?

-Acts of God. -Management indecision. -Mechanical problems.

A rule of media communication is to:

-Be honest. -Be current. -Be accessible.

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

-Consumer advocacy groups. -Government agencies

Environmental concerns for supply chain managers include:

-The distance of transporting goods from their source to the consumer. -Efficiency within the supply chain.

One alternative to product liability lawsuits is called:

Alternative dispute resolution.

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

Amazon.

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

Consumer Product Safety Improvement Act.

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.

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

Flagging.

An argument in support of high executive compensation is:

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

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

Internal.

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

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

Primary.

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

Publicity.

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

Right.

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

Supplier monitoring.

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.

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

The right to safety.

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.

A legal right of shareholders is:

To vote on members for the board of directors.

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

User-generated content.

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

-A child's age. -The work hours.

During crisis management, doing the right thing should include:

-Accepting responsibility. -Expressing regret.

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. -Substitute government-mandated standards for decision making by private buyers and sellers.

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.

Since the mid-1950s the proportion of American workers represented by unions has:

Decreased.

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.

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

Lilly Ledbetter Fair Pay Act of 2009.

What was the primary motivator for corporate giving, according to the National Bureau of Economic Research?

Philanthropical.

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

Police, fire fighters, prison guards.

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.

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.

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.

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.

A strong employer-employee relationship is central to:

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

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.

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

-The solutions provided. -The expected experience.

Social impacts of global supply chains include:

-Wages. -Working conditions. -Employee health.

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

Facilitate consumers' getting extended credit when making purchases.

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.

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.

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

The old boys' network.

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

Audit fatigue.

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.

Benefits of managing diversity and inclusion effectively includes all except:

The federal government provides tax breaks.

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.

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.

Another term for corporate giving is corporate:

Philanthropy.

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

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

Which of these channels represents a traditional media outlet?

Television.

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

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

Image.

Communities depend on business for:

-Schools. -Health care. -The arts.

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.

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

Image advertisements.

Supporters of declassifying board elections argue that this approach:

Increases accountability and responsiveness to shareholders.

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

Industry self-regulation.

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.

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.

A prime social responsibility of business is to safeguard consumers:

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