ba 325 exam 1

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.

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

Both of these answers are correct: 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.

A stakeholder map is a useful tool because:

Both of these answers are correct: It enables managers to quickly see how stakeholders feel about an issue, and it allows managers to evaluate what outcomes are likely regarding an issue.

How did Intel eliminate conflict minerals from their supply chain?

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

Legal environmental intelligence includes:

Considerations of patents, copyrights, or trademarks.

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.

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

Investors.

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

Nongovernmental organizations.

Stakeholder engagement is, at its core, a:

Relationship.

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

Reporting mechanisms.

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

Requires skills businesses may lack.

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.

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 statement characterizes the moral reasoning typically found in a child?

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

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

70 percent.

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

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

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

AFLAC

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

Audited by a certified professional accounting firm.

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

Both of these answers are correct: 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.

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.

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

Both of these answers are correct: Human rights and constitutional guarantees of human dignity; and universal principles of justice.

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

Compliance and Integrity.

As business becomes increasingly global:

Cross-cultural contradictions will increase.

Customer environmental intelligence includes:

Demographic factors.

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

Descriptive argument.

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.

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on:

Eight strategic radar screens.

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

What stakeholder group(s) can exercise legal power?

Employees. Customers. Shareholders.

Which type of employee is most likely to report ethical issues in the workplace?

Executives.

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally, it is called:

Global Corporate Citizenship.

The drivers of stakeholder engagement are:

Goals, motivation, and operational capacity.

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

Identify and analyze the nature of ethical problem.

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

Identify and analyze the nature of the ethical problem.

The iron law of responsibility says that:

In the long run, those who do not use power responsibly will lose it.

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.

Global social audit standards concentrate on:

Internally focused economic benefits for the firm. Externally focused social benefits for the environment. Externally focused social benefits for key stakeholders.

A stakeholder analysis:

Involves understanding the nature of stakeholder interests.

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.

Microfinance refers to banks:

Lending money to low-income businesses.

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.

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost.

Proactive companies are:

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

Philanthropic funding and public relations are two examples of corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase.

What is the public issue in the case Businesses Respond to the Movement for School Safety?

Second amendment rights and the safety of students in schools.

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.

Stakeholder groups can include:

Shareholders. Business support groups. Environmental activists.

The fiduciary duty of managers benefits a firm's:

Shareholders. Customers. Employees.

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

Stakeholder materiality.

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.

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.

Which of the following is not true about justice reasoning?

The reasoner is interested in the net value of benefits.

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

The size of the member nation's economy.

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

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

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

Wealth.

A corporation's issue management activities are usually overseen by:

Both the board of directors and top management levels.

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.

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.

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 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.

Aristotle argued:

Moral virtue is a mean between two virtues.

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

North Korea.

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.

Businesses are expected to be ethical in their relationships with:

Stockholders. Customers. Competitors.

Stakeholder engagement is:

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

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.

An example of an international financial and trade institution is:

World Bank. International Monetary Fund. World Trade Organization.

The most effective ethics programs utilize which of the following:

Written policy. Posters. Quick reference guides.

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.

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

All import restrictions are illegal unless proven scientifically.

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

Analyzed.

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

Be kind.

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.

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger.

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.

Stakeholders have been able to form international coalitions more successfully through use of:

Communications technology.

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

Customer.

Ethical challenges for information technology employees include:

Data privacy and copyright protection.

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 Equifax's Data Breach, which ethical climate dominated during the data breach?

Egoism.

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

Forum Empresa.

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

Contemporary issue management:

Is an interactive, forward-thinking process.

The main drawback to utilitarian reasoning is that:

It is difficulty to accurately measure both costs and benefits.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Which country passed major anti-corruption reforms in 2016?

Mexico.

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.

The Principles and Standards of Ethical Supply Chain Management Conduct includes the principle:

Protect confidentiality.

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

Providing tax incentives for global corporate citizens.

What kind of power might a local community use to influence a company's decisions?

Publicizing an issue. Lobbying government policy makers for regulations. Challenging whether a specific business activity should continue.

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

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

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.

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

Role sets.

Public issues are also sometimes referred to as:

Social issues and sociopolitical issues.

A conception of right and wrong is:

The definition of ethics.

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.

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.

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

Uber customers, Uber drivers, consumer lawyers.

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

A central state control system.

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.

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

Corporate citizenship.

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

Make a profit.

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

Social.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.

People's ethical beliefs come from:

Their religious background, family, and education.

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.

Interactions between business and society occur:

Within a finite natural ecosystem.

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.

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.

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

Inactive.

Government has distinctive resources and competencies including:

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

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

Nurses.

A recent study found that, compared to the 1980s, managers today place what importance on moral values, such as honesty and forgiveness?

Slightly more important.

Global market channels involve a firm producing goods in:

Their home country and exporting them to other countries.

A market stakeholder is exemplified by which of the following?

Creditors.

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.

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

Both of these answers are correct: A company shifts their headquarters to a foreign country; and a company increases debt in their home country.

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries.

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

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

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.

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

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.

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.

Good corporate citizens:

Strive to conduct all business dealings in an ethical manner. Make a concerted effort to balance the needs of all stakeholders. Work to protect the environment.

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

Ethical climate.

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.

Stakeholders stand out to managers when they exhibit:

Power, legitimacy, and urgency.

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

The boundary between business and society is clear and distinct.

The theory of comparative advantage states that:

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

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.

All of the following are external stakeholders of the firm except:

managers

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

Utilitarian reasoning.