Exam 1

Which one of the following is considered to be a nonmarket stakeholder of business?

Nongovernmental organizations.

The theory of comparative advantage states that:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Concerns about corporate social responsibility are exemplified by which of these statements?

Requires skills businesses may lack.

The deep anti-Americanism that exists in some parts of the world is thought to be caused by:

Resentment of cultural penetration from U.S.-based multinational enterprises.

The phenomenon of a person or group holding multiple stakeholder duties is referred to as:

Role Sets

In the case Corporate Social Responsibility at Gravity Payments, which view in support of corporate social responsibility is relevant according to Figure 3.3?

Balances corporate power with responsibility.

A just or fair ethical decision occurs when:

Benefits and burdens are distributed in fair proportions.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

Ethical challenges for information technology employees include:

Data privacy and copyright protection.

Which argument says that stakeholder management realistically depicts how companies really work?

Descriptive argument.

Those in support of corporate social responsibility believe the practice:

Discourages government regulation.

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

Due Process.

In the case LafargeHolcim and ISIS in Syria, a utilitarian benefit of keeping the plant open was:

Employees received paychecks.

The percentage of global wealth concentrated at the base of the Pyramid is:

70 percent.

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A central state control system.

Which of these statements is true about the U.K. Bribery Act?

Contains a strict liability offense for failure to prevent bribery by commercial organizations.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats.

Which of the following is not an example of an ethical criterion?

Corporate driven.

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called:

Corporate power.

The main reason a number of European countries require public companies to include employee members on their boards of directors is so that:

Employees' interests will be explicitly represented.

What stakeholder group(s) can exercise legal power?

Employees. Customers. Shareholders.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of the ethical problem.

The components of a typical issues management process include:

Identify issue, take action, scan for new issues. Generate options, predict the firm's profitability, evaluate results. Identify issue, analyze issue, allow the government to take action.

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups:

May honestly and genuinely use different sources of information. May rank various rights in different ways. May not share the same meaning of justice.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Which of these is not an objective of the Global Reporting Initiative (GRI)?

Providing tax incentives for global corporate citizens.

A firm that would like to develop a global supply chain would:

Purchase raw materials, components, or supplies from sellers in other countries.

One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as:

Temporal immediacy.

An example of a Global Action Network, or GAN, is:

The Kimberley Process.

In the case Insuring Uber's App-On Gap, which stakeholders supported ending the App-On Gap?

Uber customers, Uber drivers, consumer lawyers.

Which statement characterizes the moral reasoning typically found in a child?

"I'll let you play with my toy if I play with yours."

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of:

Chaplains.

Integrity-based ethics programs:

Combine concern for the law with an emphasis on employee responsibility.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:

Compliance and Integrity.

An individual who is a supporter of globalization would argue that it helps the developing world by:

Giving entrepreneurs access to foreign investment funds to support economic development. Allowing new ideas and technological innovations to spread quickly. Providing people in developing countries with more jobs.

The drivers of stakeholder engagement are:

Goals, motivation, and operational capacity.

The three strategies of globalization can be summarized using what three words?

Sell, make, and buy.

A giant step is taken toward improving ethical performance throughout the company when:

Senior-level managers signal to employees that they believe ethics is a high priority.

The fiduciary duty of managers benefits a firm's:

Shareholders. Customers. Employees.

Public issues are also sometimes referred to as:

Social issues and sociopolitical issues.

A conception of right and wrong is:

The definition of ethics.

Global market channels involve a firm producing goods in:

Their home country and exporting them to other countries.

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of:

Conflict of interest.

Legal environmental intelligence includes:

Considerations of patents, copyrights, or trademarks.

stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Corporate/Global Citizenship.

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

A market stakeholder is exemplified by which of the following?

Creditors.

As business becomes increasingly global:

Cross-cultural contradictions will increase.

The explosive use of social media is an example of which environment?

Customer.

BSR (formerly Business for Social Responsibility) helps its 300 member companies:

Develop sustainable business strategies.

A business and its stakeholders coming together for face-to-face conversations about issues of common concern is called stakeholder:

Dialogue.

Cross-cultural contradictions arise due to:

Differences between home and host countries' ethical standards.

Which ethical criterion is described by the idea that a company should strive for efficiency?

Egoism.

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices.

The issue of reactive management policies occurs in which stage of global corporate citizenship?

Engaged.

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate.

The most significant motivator of corporate social reporting is:

Ethical concerns.

Over time, the nature of business's relationship with its stakeholders often:

Evolves through a series of stages.

According to the United Nations, a feature of democracy is:

Fair elections. An independent media. A government with power balanced among executive, legislative, and judicial branches.

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile.

Forum Empresa.

If a manager approaches ethics with benevolence in mind, he or she would stress what?

Friendly relations with an employee.

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

Under the Sarbanes-Oxley Act, corporations are required to:

Have executives vouch for the accuracy of a firm's financial reports.

An issue's public profile indicates to managers:

How significant an issue is for the organization, but it does not tell them what to do.

Mature adults typically base their ethical reasoning on broad principles and relationships such as:

Human rights and constitutional guarantees of human dignity. Universal principles of justice

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of ethical problem.

Companies that believe they can make decisions unilaterally, without taking into consideration their impact on others, are:

Inactive.

Which statement(s) below are true about global income?

Income is how much one earns in a day or a year; and income at the bottom of the pyramid varies from place to place.

The use of social media to conduct stakeholder engagement has:

Increased the ability to share information amongst employees and partners.

With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:

Informational power.

Corporations that run their operations according to the stakeholder theory of the firm create value by:

Innovating new products. Increasing their stock price. Developing their employees' professional skills.

Building ethical safeguards into a company's everyday routines is called:

Institutionalizing ethics.

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its:

Investors.

A stakeholder analysis:

Involves understanding the nature of stakeholder interests.

Contemporary issue management:

Is an interactive, forward-thinking process.

Government has distinctive resources and competencies including:

Knowledge of public policy. Ability to enforce the rules. Revenue from taxation.

In the case Insuring Uber's App-On Gap, which type of power do Uber customers have?

Legal and economic.

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.

An ethics issue based on cross-cultural contradictions is best illustrated by which example?

Legally marketing a pesticide abroad that has been banned in the U.S.

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries.

Microfinance refers to banks:

Lending money to low-income businesses.

The primary goal of a "vulture fund" is to:

Make a profit.

Which country passed major anti-corruption reforms in 2016?

Mexico.

The instrumental argument says stakeholder management is:

More effective as a corporate strategy.

Why should business be ethical, according to Figure 5.1?

Most people want to act in ways that are consistent with their own sense of right and wrong. Ethical behavior protects business firms from abuse by unethical employees and competitors. Society's stakeholders expect it from businesses.

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises.

The Heritage Foundation scored which nation of the world among the most repressed in 2018?

North Korea.

According to an annual Gallup poll, which occupation was consistently ranked the highest for honesty and ethics?

Nurses.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

Operating under the compliance-based approach.

Business leaders, like automaker Henry Ford, developed these programs to support the recreational and health needs of their employees.

Paternalistic programs.

An analysis of the stability or instability of a government is an example of scanning which environment?

Political.

Scholars found that spirituality affects employee and organizational performance in what way?

Positively.

A member of the Chartered Financial Analyst Institute (CFA) must:

Promote the integrity of and uphold the rules governing global capital markets. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. Maintain and improve their professional competence.

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:

Reduced.

Which company ethics safeguard is commonly implemented as an employee "helpline"?

Reporting mechanisms.

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights.

People everywhere depend on ethical systems to tell them whether their actions are:

Right or wrong.

When something stands out from a background, is seen as important, or draws attention it is:

Salient.

According to Barlow v. A.P. Smith Manufacturing:

Socially responsible actions are an investment in the future, thus an allowable expense.

The relevance and importance of stakeholders and their issues is known as:

Stakeholder materiality.

Businesses are expected to be ethical in their relationships with:

Stockholders. Customers. Competitors.

Once an organization has implemented the issue management program, it must:

Study the results and make necessary adjustments.

The issue management process is a:

Systematic process companies use when responding to public issues that are of greatest importance to the business.

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

The U.S. Foreign Corrupt Practices Act.

The most important agreement which codifies human rights is:

The Universal Declaration of Human Rights.

Which of the following statements is not true about the interactive social system?

The boundary between business and society is clear and distinct.

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs?

The financial bottom line.

The critical component in installing an effective ethics program is:

The integration of various ethics safeguards into a comprehensive program.

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders.

A leadership role in addressing emerging management issues is often taken by:

The public affairs department. The government relations department. The department of sustainability or environmental, health and safety.

Representation on the World Bank's board of directors is based on:

The size of the member nation's economy.

The core components upon which a company's ethical performance depends include:

The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture.

People's ethical beliefs come from:

Their religious background, family, and education.

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the:

Transforming stage.

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to:

Utilitarian reasoning.

Organizations founded with a core mission to create and sustain social value are called social:

Ventures.

Single-party rule by communist parties still remains in:

Vietnam

The five types of stakeholders' power recognized by most experts are:

Voting, economic, political, legal, and informational power.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations.

Assets that a person accumulates and owns at a certain point in time are called:

Wealth

Interactions between business and society occur:

Within a finite natural ecosystem.

The most effective ethics programs utilize which of the following:

Written policy. Posters. Quick reference guides.

Customer environmental intelligence includes:

demographic factors

Corporations working collaboratively with other businesses and concerned persons and organizations is an example of stakeholder:

networks

The role of special interest groups is an important element in acquiring intelligence from which environment?

social

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits.

Which of the following statements accurately describe the practice of tax inversion:

A company shifts their headquarters to a foreign country; and a company increases debt in their home country.

Which of the following companies is being the most socially responsible?

A company trying its best to operate in a way which will help local students get education and jobs.

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which of the following?

A food product contaminated with salmonella was distributed to stores.

The emergence of a public issue indicates that:

A gap may be developing between what stakeholders expect and what an organization is actually doing.

Which of the following is not an example of stakeholders' economic power?

A social group protests a government's decision to raise taxes.

Because of the risks and opportunities public issues present, organizations need:

A systematic way of identifying, monitoring, and selecting public issues.

A company that has ranked amongst the most ethical firms from 2007 to 2017, according to Forbes magazine, is:

AFLAC

Most ethics or compliance officers are entrusted to:

Act as a liaison between the company and their temporary employees.

Which statement is not correct about the business-society interdependence?

Actions by governments rarely affect business.

Which of the following is the result of the inseparable relationship between business and society?

All business decisions have a social impact and the vitality of business depends on society's actions and attitudes.

Under the World Trade Organization's most-favored nation rule:

All import restrictions are illegal unless proven scientifically.

According to general systems theory, boundary exchanges are exemplified by which of the following?

An industrial company installs new equipment in its plant to comply with environmental regulations. A software company develops an application for a client. A purchasing department employee negotiates a price on parts with a supplier.

Once an issue has been identified, its implications must be:

Analyzed.

Positive reputation can be valued as an intangible corporate:

Asset

By law, the financial records of publicly held companies are required to be:

Audited by a certified professional accounting firm.

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called:

B Corporation.

All of the following values are present in most ethical decisions except:

Be kind.

Companies demonstrate global corporate citizenship by:

Both of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

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.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

Business people do not have the skill set to solve societal problems. The private sector is not mandated to solve these issues.

Which of the following statements is true about corporate social responsibility?

Businesses should monitor and prevent social problems in advance of their becoming major issues; and corporations should be accountable for any actions that affect people, their communities, and the environment.

How did Intel eliminate conflict minerals from their supply chain?

By collaborating with most suppliers in the chain including smelters, processors, and traders.