BA Test 3

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

Consumer Product Safety Improvement Act.

Building a positive and ethical reputation requires a firm to:

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

An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a:

Cookie

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

Corporate crisis.

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 of these situations is not a reason for a firm to communicate through the media?

Ignoring or downplaying an organizational crisis.

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

Image

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

Image advertisements.

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

Internal.

The "agency problem" arises when:

Managers act in their own interest, rather than in the interest of shareholders.

A good public relations program:

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

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.

Many executives believe that a diverse workforce boosts innovation because:

Many unique perspectives contribute to a better solution.

In 2015, the largest generation in the workforce was:

Millennials.

What is one drawback of conducting supplier audits?

On-site inspections are expensive.

One particularly negative aspect of behavioral advertising is:

Online users may be vulnerable to the spread of misinformation tailored to their beliefs.

The corporate reputation of distinction must be built:

Over time.

One of the main reasons that American executives are paid so much is:

Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up

Child care assistance in the workplace is accurately described by:

It helps reduce employee absenteeism and tardiness. It aids in recruiting workers by making the company more attractive to parents. It helps retain talented employees. All of these answers are correct.

An argument against affirmative action is:

It is inconsistent with the principles of fairness and equality.

Social investors seek to eliminate from their investment portfolios companies that:

Make dangerous products like tobacco or weapons. Pollute the environment. Discriminate against employees. All of the above.

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

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

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 the following represents a type of corporate crisis?

Acts of god Management indecision Mechanical problems All of these answers are correct.

Sexual harassment is accurately described by which statement(s)?

All of these answers are correct. 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.

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 answers are correct.

One alternative to product liability lawsuits is called:

Alternative dispute resolution.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called:

Antitrust laws.

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.

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

Audit fatigue.

A rule of media communication is to:

Be honest. Be current. Be accessible All of these answers are correct.

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.

During crisis management, doing the right thing should include:

Both accepting responsibility and expressing regret.

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

Both consumer advocacy groups and government agencies

As a stakeholder, suppliers' interests include:

Both earning income and utilizing productive capacity efficiently.

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

Both environmental performance and product quality.

Which of the following describe why the consumer movement exists?

Both of these answers are correct. Some product advertising claims have been inflated. Some businesses have violated the public's privacy.

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

Both of these answers are correct: Communicating a zero-tolerance policy on harassment to all employees; and establishing a complaint procedure and acting quickly to resolve any problems.

A strong employer-employee relationship is central to:

Both of these answers are correct: Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.

The primary goal(s) of the Food and Drug Administration include:

Both of these answers are correct: Ensuring the safety and effectiveness of a wide range of consumer products; and reviewing and approving new products before they are released to consumers.

The "gig" (or sharing) economy is accurately described by which of these?

Both of these answers are correct: Many companies have become more cost-efficient; and the generally low wages have increased the welfare burden on the government.

Employees in the United States have a legal right to:

Both of these answers are correct: Organize and bargain collectively; and a safe and healthy workplace.

Environmental concerns for supply chain managers include:

Both of these answers are correct: The distance of transporting goods from their source to the consumer; and efficiency within the supply chain.

How do companies encourage their employees to volunteer their time?

By sponsoring specific projects. By publicizing opportunities to serve. By offering recognition for service. All of these answers are correct.

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.

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

Compensation.

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

Constitution.

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

Data aggregators.

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

Decreased.

Which of the following is an example of fulfilling social objectives through stock ownership?

Divesting from Chinese companies that made products using forced labor

The audit committee is required by U.S. law to be:

Financially literate.

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

Front-running.

Social capital is a phrase that refers to all of the following, except:

Funds set aside for company events.

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.

Which groups often collaborate when developing industry-wide codes of conduct?

Government officials. NGOs. Companies. All of these answers are correct.

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.

Another term for corporate giving is corporate:

Philanthropy.

States that have adopted right-to-work laws:

Prevent unions from requiring all workers they represent to pay fees or dues.

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

Primary.

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders' rights by making sure that stock markets are run fairly.

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

Publicity.

The corporate reputation is accurately described by which statement(s)?

Refers to desirable qualities Refers to undesirable qualities Relies on the perceptions of past actions, results, and future prospects. All of these answers are correct.

The share of all giving made up by in-kind contributions of products and services has been:

Rising steadily over the past decade.

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

Skills-based volunteerism.

Some studies have shown that the burden of complying with safety regulations falls hardest on:

Small businesses.

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

Strict liability should be retained.

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.

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

Supplier development

A living wage has been defined as a wage that:

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

Which of these channels represents a traditional media outlet?

Television.

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 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 (are) core rights of consumers?

The right to safety.

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

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.

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.

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.

The risk online shoppers take when their web profile negatively impacts their credit is known as:

Weblining.

A prime social responsibility of business is to safeguard consumers:

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

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

User-generated content

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

Both the supplier and the lead firm.

The relationship between business and the community is accurately described by:

It is one of mutual interdependence.

This U.S. agency enforces the laws prohibiting deceptive advertising:

Federal Trade Commission.

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.

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.

Racial harassment is illegal under:

Title VII of the Civil Rights Act.

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.

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.

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 All of these answers are correct.

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

Hold regular meetings without the CEO present.

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

Police, fire fighters, prison guards.

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

Supplier monitoring.

Benefits of managing diversity and inclusion effectively includes all except:

The federal government provides tax breaks.

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.

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

Both relationship with the public and public image.

Variation in the important human characteristics that distinguish people from one another is called:

Diversity.

A 2018 Harris poll indicated that some firms, such as Amazon, Tesla Motors, and Patagonia, have:

Earned a high reputation quotient.

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

Education

Business depends on the community for:

Education. Public services. Transportation systems. All of these answers are correct.

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.

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.

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.

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

Hazardous products.

An argument that opposes the idea of high executive pay is

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

As shown in Figure 2, in 2015 the countries with the highest and lowest percentages of unionized labor, respectively, were:

Iceland, Turkey.

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

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

Industry self-regulation.

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.

Corporations contribute about what share of all giving in the United States?

Only about five percent.

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

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.

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

Sales and earnings. Depreciation by line of business. Details of foreign operations. All of these answers are correct.

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:

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

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

Consumers International.

Scenario-based press releases, key discussion points, and procedures to activate the organization's website are all part of which step in an effective crisis management plan?

Get ready before the crisis hits.

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

Managing international relations projects for economic development

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

Philanthropical.

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.

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

Voluntary industry codes of conduct.

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

The old boys' network.

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.

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

Ergonomics.

Social impacts of global supply chains include:

Wages. Working conditions. Employee health. All of these answers are correct.

Institutional investors are sometimes referred to as:

Wall Street investors.

The illegal recruitment and movement of people against their will is called:

Forced labor

Bias within the hiring process refers to:

Selecting only candidates that match a preconceived ideal of the role.

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

Which of the following is not true about occupational segregation?

The technology sector is dominated by women.

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.

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

Fewer than three people plus a manager.

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. All of these answers are correct.

Factor conditions are strategic contributions focusing on:

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

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

Both a child's age and the work hours.

Where are workers not permitted to form independent unions?

Both some communist countries and some military dictatorships.

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

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

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.

Women in the U.S. workforce are accurately characterized by which of these statements?

Both of these answers are correct: The participation rate has been between 46 and 47 percent since the late 2000s; and the participation rate has been between 46 and 47 percent since the late 2000s.

Which part of the Department of Justice protects the public from being charged excess fees based on one's race?

Civil Rights Division.

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

$300,000.

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

Amazon.

Which of the following is true about corporate boards?

Corporate boards average 12 members.

In 2017, the smallest source of philanthropic contributions in the United States came from which organization?

Corporations.

Which of the following is not a strategy to help companies get the most benefit from their contributions?

Establish priorities even if they come into conflict with firm core values.

The directors of a company are a central factor in corporate governance because they:

Exercise formal legal authority over company policy.

Which of the following statements is not true about the organization Consumer Reports?

It is supported by the federal government.

One argument in favor of affirmative action is:

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

Random drug testing of employees is accurately described by which statement?

It screens randomly selected employees at various times through the year.

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

Lilly Ledbetter Fair Pay Act of 2009.

Minority enterprises often do business in locations with:

Low-quality public services.

Which industry gives the most in-kind contributions?

Pharmaceutical companies.

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

Right

Studying the underlying cause of repeated supplier violations is called:

Root cause analysis.

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.

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

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.

According to a 2016 survey of senior supply chain managers, what is the leading reason to invest in supplier social responsibility?

To create a positive image and enhance brand equity

The term civic engagement describes:

The active involvement of businesses and individuals in improving communities.

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.

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

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

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.

Codes of conduct are accurately described by which statement?

Most early codes of conduct were developed by individual companies.