Business and Society Final Exam
The Sarbanes-Oxley Act makes it illegal for employers to retaliate against whistleblowers under what conditions?
when the information reported might impact the company's share value
Why are pay-for-performance stock option grants an incentive to improve company results?
If the company stock price increases, the executive compensation also rises.
What is one reason why women and minorities fail to move into executive or board positions?
Recruiters rely heavily on the old boys' network.
Since the 1960s, growth in the number of institutional investors in the United States has been phenomenal.
True
Technology tends to ripple through society until it affects every community.
True
The Occupational Safety and Health Act gives workers the right to a job "free from recognized hazards that are causing or likely to cause death or serious physical harm."
True
The collection of large amounts of consumer data by businesses creates ethical issues of privacy and security.
True
The term "supply webs" refers to the multiple steps taken to move a product or service from the most distant supplier to the customer.
True
The term community refers to a company's area of business influence.
True
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.
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 acquired large stakes in foreign companies.
Why has union membership declined in the United States since the 1950s?
a decrease in the manufacturing sector
The type of cybercrime where malware locks the data on a computer and payment is demanded to unlock it, is called
a ransomware attack.
What impact has OSHA had on businesses?
a significant reduction in workplace deaths
When businesses band together to agree on how they will treat their customers, this is called
voluntary industry codes of conduct.
The risk online shoppers take when their Web profile negatively impacts their credit is known as
weblining
What recent U.S. government regulations were implemented to control genetically modified foods?
uniform labeling of all foods containing genetically engineered ingredients
What is one major concern about allowing romance in the workplace?
An unwelcome relationship could be demanded by an employee in a position of authority.
In 2020, share values declined sharply during the coronavirus pandemic. This type of stock market is referred to as a
Bear market
The phase of technology that focuses on building material goods and manual labor is
Industrial
Random drug testing of employees is accurately described by which statement?
It screens randomly selected employees at various times through the year.
The law requiring that toys and infant products be tested before sale is called the
NOT Child Safety Protection Act.
Which medical breakthrough offered the promise to rejuvenate or regenerate human cells?
NOT DNA sequencing
The core rights of consumers include the right to
Safety
Caregivers who care for both children and elderly adults are often referred to as the
Sandwich generation
Which of these is an example of business supporting their community, as described in the case "Salesforce's 1+1+1 Integrated Philanthropy Model"?
The company donated millions to public education in its home community.
Which statement below is true about shareholders?
They are the legal owners of business corporations.
Nations have tended to move sequentially through each phase of technology, beginning with the lowest technology and moving higher with each step.
True
One alternative to product liability lawsuits is called
alternative dispute resolution.
When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for
both the supplier and the lead firm.
Voluntary agreements among business, government, and society to achieve goals are called
collaborative partnerships.
According to the new social contract
companies try to attract workers by giving them interesting and challenging work.
A recent study found that companies that paid workers above-average wages saw which impact?
excellent shareholder returns
Firms that fully support both men and women in their efforts to balance work and family responsibilities are known as
family-friendly workplaces.
Which of these uses aggressive strategies to earn high returns for their investors?
hedge funds
An argument that opposes the idea of high executive pay is
high salaries divert resources that could be used to invest in the business.
The digital divide describes the gap between those
individuals who have access to technology and those who do not.
When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of
industry self-regulation.
An argument against affirmative action is
it is inconsistent with the principles of fairness and equality.
When an employee believes that their employer has done something wrong or harmful to the public, and he or she reports the alleged organizational misconduct to the media, government, or a high-level company officials, what has occurred?
whistleblowing
Invasion of privacy through technology is best exemplified by
your car's GPS tracking you at every location.
The term cryptocurrency is accurately defined by which statement?
A digital currency that operates outside the banking system using encrypted technology.
As a stakeholder, suppliers' interests include
Both "selling to customers and earning income" and "using productive capacity efficiently" are correct.
Which of these statements is not true about supply chain transparency?
Brand loyalty among consumers is diminished by a firm's revelations.
Which of the following is not a potential source of personal private data?
Broadcast radio
A company that assures product quality often sees which impact?
Build Brand Loyalty
How are corporate directors typically compensated?
Cash and Stock
Which nation currently has the greatest number of Internet users?
China
Businesses can reduce income inequality by taking which action?
Commit to paying a living wage to all employees.
What is one trend in supply chain auditing?
Companies are working together to audit major suppliers.
The board committee that administers and approves salaries and benefits of high-level managers in a company is called the
Compensation
In 2020, the smallest source of philanthropic contributions in the United States came from which organization?
Corporations
The place where information is stored, ideas are described, and communication takes place in and through an electronic network of linked systems is called
Cyberspace
This Act makes it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufacturers and their users.
Digital Millennium Copyright Act
Employee theft is correctly described by which statement?
Employee theft is a significant economic, social, and ethical problem in the workplace.
All countries have nearly identical intellectual property laws.
False
All overseas supplier factories that pay low wages are engaging in a highly unethical social practice.
False
Corporations are prohibited from giving more than 10 percent of their income for philanthropic purposes.
False
An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a
Flash Cookie
The EU law passed in 2018 that required companies to promptly report personal data breaches was called the
General Data Protection Regulation.
Besides spam filters, why has the global spam email rate declined in recent years?
Governments created strong penalties against spamming.
Institutional investors are accurately described by which statement?
Institutions invest their funds by purchasing shares of stock in corporations.
Which type of supplier audit is being used when a company hires and trains its own staff of auditors?
Internal
An example of "insider trading" is
NOT an auditor using public information about the company to invest in its stock.
A recent Oxford study noted that the move to robots tends to generate what kind of new jobs?
NOT automated
A good way for a business to express its commitment to corporate citizenship is
NOT by establishing community relations programs.
Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by
NOT communicating a zero-tolerance policy on harassment to all employees.
Another term for corporate giving is corporate
Philanthropy
Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation fall under which dimension of diversity?
Primary
How are board members (directors) selected?
Shareholders elect the directors from a list of candidates.
About what percentage of the world's population uses social media?
Slightly more than half
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?
Strict Liability
Companies where employees work long hours, at low wages, under unsafe conditions, are collectively referred to as
Sweatshops
The term diversity refers to variation in the important human characteristics that distinguish people from one another.
TRUE
What is one criticism of honesty testing in the workplace?
The tests may create an opportunity to discriminate against legally protected groups.
What criteria must be met before a whistleblower goes public?
There is enough potential harm to justify the possible costs of disclosure.
Racial harassment is illegal under
Title VII of the Civil Rights Act.
Although several steps removed, distant suppliers can still have a big impact on a company's reputation and bottom line.
True
Employees in the United States have the right to organize and bargain collectively.
True
In 2018, the European Union passed legislation to protect personal user data during collection, processing, and storage.
True
Robotic technology has advanced enough to generate many new business opportunities.
True
The two main types of investors that own shares of stock in U.S. corporations are individuals and institutions.
True
Hackers employed by businesses or governments to intentionally discover weaknesses in information systems are called
White hatters
What is the Sheltered Harbor?
a collective of U.S. banks that adopted a robust set of cybersecurity safeguards
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. **All of these choices are correct.
Many rapid changes in technology over the past few decades were facilitated by
-artificial intelligence. -wireless networks. -processing of big data. **All of these choices are correct.
Which groups often collaborate when developing industry-wide codes of conduct?
-government officials -nongovernmental organizations -business organizations **All of these choices are correct.
What is one drawback of conducting supplier audits?
On-site inspections are both expensive and time-consuming, and do not scale.
What is the mission of Data Privacy Day, held annually on January 28th?
-empower people to protect their privacy -escalate the protection of personal privacy -help people control their digital footprint **All of these choices are correct.
The growing diversity in the U.S. workforce is due to
-millennials and members of Gen Z entering the workforce. -significant immigration from other countries. -shifting patterns of work and retirement. **All of these choices are correct.
Consumer protection laws include regulating which type(s) of protections?
-pricing -liability -privacy **All of these choices are correct.
Communities depend on business for
-the arts. -schools. -health care. **All of these choices are correct.
What is the purpose of a labor union?
-to negotiate employee wages -to promote safe working conditions -to represent workers on the job **All of these choices are correct.
Investors may receive an economic benefit from the ownership of stock by receiving
Both "dividends" and "capital gains" are correct.
Variation in the important human characteristics that distinguish people from one another is called
Diversity
The current phase of technology is the service society.
False
The level of income inequality in the United States has fallen since the 1980s.
False
The only recourse consumers have to protect themselves from unsafe products is through the courts.
False
In 2015, the largest generation in the workforce was
Millennials
Codes of conduct are accurately described by which statement?
Most early codes of conduct were developed by individual companies.
Which form of corporate giving did Tableau's COVID-19 dashboard take, according to the case "Salesforce's 1+1+1 Integrated Philanthropy Model"?
NOT gift of money
Over time the role of the CIO
NOT has changed dramatically, superseding the role of the chief executive officer.
We are currently in which phase in the development of technology?
NOT information
Intellectual property refers to
NOT special laws protecting copyrights, patents, and trademarks.
Measurements used to calculate the return on social investment should include
NOT the changes in both share price and dividends.
Social capital is a phrase that refers to all of the following, except
NOT the goodwill that is engendered by the fabric of social relations.
The SEC allows social responsibility shareholder resolutions on the ballot under what condition?
NOT whenever there is a good chance the proposal will be resolved before the election
The time a mother or father is granted off when children are born or adopted and during the early months of a child's development is called
Parental leave
The practice of using fake business emails to trick users into divulging personal data, such as usernames and passwords, is called
Phishing
The relationship between business and the community is accurately described by the following:
The relationship is one of mutual interdependence.
Environmental concerns for supply chain managers may be mitigated by
adopting a policy of local sourcing.
The ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings is called
artificial intelligence
Besides being helpful, firms often contribute to disaster relief funds to
build loyalty from those grateful for the assistance.
One major advantage of conducting business online is
cost-effective marketing and promotions.
A type of supply chain inspection that bypasses the factory and relies instead on worker feedback, is called a
crowdsourced audit.
A diverse and inclusive workforce provides companies with all of the following except
cultural insensitivity.
Downloading illegal files, spreading computer viruses, and stealing from online bank accounts is collectively referred to as
cybercrime
An argument in support of high executive compensation is
high salaries provide an incentive for innovation and risk-taking.
The primary skills required in the information stage were
intellectual and electronic skills.
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.
Many executives believe that a diverse workforce boosts innovation because
many unique perspectives provide valuable insights into tastes and preferences.
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.
The idea that every distribution channel must work together to deliver a unified and consistent customer experience is called
omnichannel
One particularly negative aspect of behavioral advertising is
online users may be vulnerable to the spread of misinformation tailored to their beliefs.
What is a major ethical concern over businesses using drones?
personal privacy
Which industry has consistently given the most in-kind contributions?
pharmaceutical companies
One example of a self-organized consumer protection method is
posting and reading product reviews online.
Nongovernmental institutions that govern economic activities are referred to as
private regulation.
The purpose of the right to be forgotten is to
protect an individual's right to online privacy.
The mission of the Securities and Exchange Commission (SEC) is to
protect shareholders' rights by making sure that stock markets are run fairly.
A reason for institutions becoming more assertive in promoting the interests of their member investors is
protesting management performance by selling a large block of stock would reduce the value of the institution's holdings.
Nutrition labels on food products are an example of which consumer right?
right to be informed
A person's entitlement to protection from invasion of one's personal life is called the
right to privacy
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 to
set up a diversity council to monitor the company's goals.
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.
A living wage has been defined as a wage that
supports half the basic needs of an average-size family, based on local prices.
In the business context, inclusion means having policies that
tap into the diverse perspectives, life experiences, and approaches of each worker.
The self-reinforcing feature of technology means that
technology acts as a multiplier to encourage its own faster development.
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 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.
Consumers have become more dependent on businesses for product quality because
the complexity of economic life makes choices complicated for consumers.
Benefits of managing diversity and inclusion effectively include all except
the federal government provides diversity-related tax breaks.
One of the main reasons that American executives are paid so much is because
their pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.
How do businesses support their community's civic needs?
through donations of money, goods, and time
Why do many companies favor the use of mandatory arbitration clauses?
to avoid expensive liability lawsuits against them
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
One argument in favor of net neutrality is
to fairly compete, small, medium, and large firms should have the same Internet bandwidth.
Why might a company help a community with its housing needs?
to improve the quality of the community
What is the primary role of a consumer affairs officer?
to manage a complex network of contacts with customers
Employers are not required by law to agree to the union's demands, but they are required to bargain in good faith.
true
Many companies have argued that the evolution of strict liability has
unfairly burdened them with excess costs.
