Business Ethics Chapter 1 Exam Questions
According to general systems theory, boundary exchanges are exemplified by which of the following?
A purchasing department employee negotiates a price on parts with a supplier, An industrial company installs new equipment in its plant to comply with environmental regulations, A software company develops an application for a client. All are correct.
Stakeholder groups can include
An individual stakeholder may utilize multiple powers, Stakeholder power leverages resources to achieve a desired outcome, Different stakeholders have different types and degrees of power. All of these choices are correct.
The relationship between business and society is most accurately described by which statement?
Business is a distinct bounded entity within the larger bounded entity of society.
A market stakeholder of business is exemplified by which of the following?
creditors
The fiduciary duty of managers benefits a firm's
customers, employees, shareholders. All of these choices are correct.
Which argument says that stakeholder management realistically depicts how companies really work?
descriptive argument
With the explosive growth of technologies that facilitate the sharing of information, which kind of stakeholder power has become increasingly important?
informational power
A nonmarket stakeholder of business is exemplified by which of the following?
nongovernmental organizations
Particular stakeholders stand out to managers when they exhibit
power, legitimacy, and urgency.
Which stakeholder group(s) can exercise legal power?
shareholders, customers, employees All of these choices are correct.
What is the primary reason that stakeholder coalitions form?
The stakeholder interest(s) of different groups coincides.
In the case "Tipping Point at Union Square Hospitality Group (USHG)," what was the primary reason the company reversed its no-tipping policy?
to better satisfy the needs of all USHG stakeholders
The inseparable relationship between business and society results in which of the following?
Both "All business decisions have a social impact" and "The vitality of business depends on society's actions and attitudes" are correct.
Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are
boundary-spanning departments.
Customers can exercise economic stakeholder power by
boycotting products they believe are too expensive.
External forces that influence the relationship between business and society include
increased globalization and new government regulations of business, changing societal expectations and a growing demand for ethical values, dynamic natural environment and new technology advances. All of these choices are correct.
A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing long-term value for its
investors.
A stakeholder map is a useful tool because
it enables managers to quickly see how stakeholders feel about an issue, it allows managers to evaluate what outcomes are likely regarding an issue, it helps managers identify stakeholder coalitions likely to form.
When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's
legal power.
All of the following are external stakeholders of the firm except
managers.
The instrumental argument states that stakeholder management is
more effective as a corporate strategy.
When something stands out from a background, is seen as important, or draws attention it is
salient
The power of stakeholders is accurately described by which statement(s)?
Different stakeholders have different types and degrees of power, Stakeholder power leverages resources to achieve a desired outcome, An individual stakeholder may utilize multiple powers. All of these choices are correct.
In the case "Tipping Point at Union Square Hospitality Group (USHG)," who were the internal market stakeholders?
employees
The main reason a number of European countries require public companies to include employee members on their boards of directors is that
employees' interests will be explicitly represented.
What actions might a local community use to influence a company's decisions?
protesting corporate behavior at shareholder meetings, lobbying government policy makers for regulations, publicizing an issue on social media. All are correct
The five types of stakeholders' power recognized by most experts are
voting, economic, political, legal, and informational power.
