BA325 13-19
During crisis management, doing the right thing should include:
Both accepting responsibility and expressing regret.
Media training is especially important for which company roles?
Both board of directors and General Counsel.
Businesses can reduce income inequality by which action?
Commit to paying a living wage to all employees.
The law requiring that toys and infant products be tested before sale is called the:
Consumer Product Safety Improvement Act.
A significant business disruption that stimulates extensive news media and social networking coverage is called a(n):
Corporate crisis.
Since the mid-1950s the proportion of American workers represented by unions has:
Decreased.
Which of the following is not a goal of consumer protection laws?
Facilitate consumers' getting extended credit when making purchases.
Most corporate community relationship departments consist of how many team members?
Fewer than three people plus a manager.
When women and minorities are highly competent but are unable to attain executive positions, this is typically called:
Glass ceiling.
Child care assistance in the workplace is accurately described by
It helps retain talented employees. It aids in recruiting workers by making the company more attractive to parents. It helps reduce employee absenteeism and tardiness.
Employee theft is correctly described by which statement?
It is a significant economic, social, and ethical problem in the workplace.
The relationship between business and the community is accurately described by:
It is one of mutual interdependence.
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.
Consumers have become more dependent on businesses for product quality because:
The complexity of products makes choices complicated for consumers.
Investors may receive an economic benefit from the ownership of stock by receiving:
Both dividends and capital gains.
Collaborative partnerships between business, government, and communities have been particularly successful in which social area?
Education
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.
As shown in Figure 2, in 2015 the countries with the highest and lowest percentages of unionized labor, respectively, were:
Iceland, Turkey.
Which law eliminated certain time restrictions for filing pay discrimination lawsuits?
Lilly Ledbetter Fair Pay Act of 2009.
Why does the inclusion of women on corporate boards improve company performance?
Women are more likely to raise multiple stakeholder concerns. Women bring different life experiences to discussions. Alternative courses of action are more realistically considered.
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.
Sexual harassment is accurately described by which statement(s)?
The U.S. Equal Employment Opportunity Commission is empowered to sue on behalf of victims. Sexual harassment is illegal in the United States. Most sexual harassment incidents target women.
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.
Which of the following is not a strategy to help companies get the most benefit from their contributions?
Establish priorities even if they conflict with the firm's core values.
Which type of supplier is hired to provide products or services directly to a lead firm?
Tier-1.
A firm can affect the general public's opinion of its reputation through
Blogs written by CEOs. Billboard messages. Television advertisements.
Which of these programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers?
Both Sustainable Compliance Initiative and Sedex Global.
The International Labor Organization (ILO) identifies child labor by which factors?
Both a child's age and the work hours.
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.
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.
Which of the following statements is not true about the organization Consumer Reports?
It is supported by the federal government.
Random drug testing of employees is accurately described by which statement?
It screens randomly selected employees at various times through the year
Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?
Lead firms sought ongoing strategic relationships. Lead firms preferred larger suppliers. The number of widely used suppliers decreased.
The "agency problem" arises when:
Managers act in their own interest, rather than in the interest of shareholders.
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.
Racial harassment is illegal under:
Title VII of the Civil Rights Act.
Why should businesses get involved in the community?
To meet stakeholder demands. To build social capital. To win local support for business activity.
Which major consumer right was violated according to the discussion case Volkswagen's "Clean Diesel" Campaign?
Right to privacy.
If someone is entitled to be treated in a certain way, this refers to a(n):
Right.
The share of all giving made up by in-kind contributions of products and services has been:
Rising steadily over the past decade.
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.
A customer tweeting about a recent bad shopping experience is using which type of media communication?
User-generated content.
The purpose of the media relations department is to manage a firm's:
Both relationship with the public and public image.
Where are workers not permitted to form independent unions?
Both some communist countries and some military dictatorships.
The EU's 2018 General Data Protection Regulation applies to:
Companies anywhere who provide services to European customers.
Variation in the important human characteristics that distinguish people from one another is called:
Diversity.
Under U.S. laws, who has the right to hold an election to choose what union they want to represent them, if any:
Most private and public workers.
What is one drawback of conducting supplier audits?
On-site inspections are expensive.
When a mother or father is granted time off when children are born or adopted and during the early months of a child's development, this is called:
Parental leave.
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 corporate reputation is accurately described by which statement(s)?
Relies on the perceptions of past actions, results, and future prospects. Refers to undesirable qualities. Refers to desirable qualities.
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.
The growing diversity in the U.S. workforce is due to:
Shifting patterns of work and retirement. Immigration from other countries. Millennials entering the workforce.
Consumer groups have generally opposed the idea of product liability reform using which argument?
Strict liability should be retained.
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.
What is one reason why woman and minorities fail to move into executive or board positions?
The old boys' network.
What is the primary goal of a community relations department?
To build relationships with important community groups.
Business depends on the community for:
Transportation systems. Public services. Education.
The leading cause of death on the job is due to
Vehicle accidents.
In some cases, businesses have banded together to agree on how they will treat their customers. This is called:
Voluntary industry codes of conduct.
One alternative to product liability lawsuits is called:
Alternative dispute resolution.
In 2018, what was the most valuable brand according to Brand Directory?
Amazon.
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.
Brand management often involves conveying what about a product or service?
Both the solutions provided and the expected experience.
Which part of the Department of Justice protects the public from being charged excess fees based on one's race?
Civil Rights Division.
Employee Assistance Programs (EAPs) are correctly described by which of these statements?
Nearly three-quarters of small companies with 50 to 99 employees offer EAPs. Almost all employers with 1,000 or more workers offer EAPs. They offer counseling and follow-up to alcohol and drug abusers.
What was the primary motivator for corporate giving, according to the National Bureau of Economic Research?
Philanthropical.
The mission of the Securities and Exchange Commission (SEC) is to:
Protect shareholders' rights by making sure that stock markets are run fairly.
One action a company can take to effectively manage diversity and inclusion is:
Set up a diversity council to monitor the company's goals.
The Securities and Exchange Commission outlaws:
Any manipulative or deceptive device used to trade stocks.
When suppliers endure audit after audit by different lead firms, this is called:
Audit fatigue.
A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called:
Consumers International.
Building a positive and ethical reputation requires a firm to:
Convey a compelling story about the firm and what it stands for.
In 2017, the smallest source of philanthropic contributions in the United States came from which organization?
Corporations.
Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:
Data aggregators.
Sexual harassment applies to:
Either men or women who are being harassed.
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.
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.
Codes of conduct are accurately described by which statement?
Most early codes of conduct were developed by individual companies.
Corporations contribute about what share of all giving in the United States?
Only about five percent.
When Fidelity partnered with the Capital Good Fund to service loans to disadvantaged communities, this was an example of:
Skills-based volunteerism.
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.
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.
When lead firms work with suppliers they can create shared value such as:
A more stable supply of products. Higher quality products for customers. Higher income for the supplier.
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.
The major federal consumer protection agencies are authorized by law to:
Both of these answers are correct: Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers; and substitute government-mandated standards for decision making by private buyers and sellers.
When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for:
Both the supplier and the lead firm.
A good way for a business to express its commitment to corporate citizenship is:
By correcting problems associated with its operations. By behaving responsibly toward all its stakeholders. By establishing community relations programs.
An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a:
Cookie.
Which of the following is true about corporate boards?
Corporate boards average between 9 and 11 members.
Which of the following is an example of fulfilling social objectives through stock ownership?
Divesting from Chinese companies that made products using forced labor.
In what way did Dreamers bring diversity to the U.S. workplace?
Dreamers came to the United States from many global regions.
Global businesses that have extended their public relations strategies worldwide should:
Ensure that communications with local media take place in the area's native language.
Corporate governance involves the exercise of control over a company's:
Entire corporate direction.
The directors of a company are a central factor in corporate governance because they:
Exercise formal legal authority over company policy.
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.
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.
Minority enterprises often do business in locations with:
Low-quality public services.
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.
Richard M. Locke argues that global supply chains are best managed through a combination of public and private governance because:
Public and private organizations are able to share the enforcement workload. Regulators benefit from record-keeping required by private companies' codes of conduct. Government-enforced laws give legitimacy to demands for workplace changes.
In the discussion case, Ikea's Sustainable Cotton Supply Chain, which statement accurately describes IKEA's supply chain?
The long and complex chain involved farming, ginning, spinning, weaving, and stitching
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.
In 2017, median compensation for directors at the largest U.S. corporations was around:
$300,000.
Which of these channels represents a traditional media outlet?
Television
Communities depend on business for:
The arts. Health care. Schools.
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.
hich type of business community consists of people who work near the company?
Employee community.
The way organizational members believe others see the organization is called the corporate:
Image.
The media control technique called bridging is exemplified by which of these phrases?
"While that is true, what is important to know is...".
An example of "insider trading" is:
A company executive passing nonpublic information about an upcoming acquisition to a friend, who traded for a profit.
A rule of media communication is to:
Be accessible. Be current. Be honest.
Which of these statements is true regarding the Class Action Fairness Act of 2005?
Both of these answers are correct: Lawyers were restricted from shopping for friendly venues to try interstate cases; and excessive attorney compensation was limited.
Which industry(ies) have taken the lead in revitalizing neighborhoods?
Both of these answers are correct: Life insurance firms; and health insurance companies.
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.
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 rates of women and men in the workforce have diverged.
Which groups often collaborate when developing industry-wide codes of conduct?
Companies. NGOs Government Officials
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.
Social impacts of global supply chains include:
Employee health. Working conditions. Wages.
This U.S. agency enforces the laws prohibiting deceptive advertising:
Federal Trade Commission.
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.
One important aspect of the new social contract regarding fixed pension benefits is:
Fixed pensions have been reduced in the U.S. by around 90 percent.
Emphasizing key points and guiding the media reporter to them is called:
Flagging.
The illegal recruitment and movement of people against their will is called:
Forced labor.
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.
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.
An argument in support of high executive compensation is:
High salaries provide an incentive for innovation and risk-taking.
Which of the following is a key feature of effective boards of directors?
Hold regular meetings without the CEO present.
What media technique is used to promote the general perception of a product or service, rather than promoting its functional attributes?
Image advertisements.
Supporters of declassifying board elections argue that this approach:
Increases accountability and responsiveness to shareholders.
When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:
Industry self-regulation.
A supplier that controls critical worker skills and technical know-how holds which type of power over its lead firm?
Informational.
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.
Which type of supplier audit is being used when a company hires and trains its own staff of auditors?
Internal.
Which of these is not a current consumer law that protects individual privacy?
Internet "do not track" rules.
One argument in favor of affirmative action is:
It levels the playing field to correct past discriminatory hiring practices.
Which of the following is not a function of board committees?
The finance committee works closely with the human resources department to fund employee salaries.
A good public relations program:
Manages the firm's public image and its relationship with the public.
Which of the following is not a reason for businesses to establish community relations departments?
Managing international relations projects for economic development.
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.
As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:
More important.
Organizations with strong positive reputations are generally more successful because they:
Often get the benefit of the doubt in uncertain circumstances.
According to the U.S. Department of Labor, some of the most dangerous jobs include:
Police, fire fighters, prison guards.
Purposefully planned messages sent to selected media promoting the company without payment to the media is called:
Publicity.
The "right to be heard" promises that consumers' interests will:
Receive full and sympathetic consideration.
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 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.
Studying the underlying cause of repeated supplier violations is called:
Root cause analysis.
Reports filed with the SEC provide information on a company's:
Sales and earnings. Depreciation by line of business. Details of foreign operations.
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.
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.
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.
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.
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 term civic engagement describes:
The active involvement of businesses and individuals in improving communities.
Benefits of managing diversity and inclusion effectively includes all except:
The federal government provides tax breaks.
Factor conditions are strategic contributions focusing on:
The supply of trained workers, physical infrastructure, and natural resources.
Which of the following is not true about occupational segregation?
The technology sector is dominated by women.
The general public is accurately described by which statement(s)?
This organizational stakeholder consists of individuals and groups found in society.
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.
A reason for an increase in employee monitoring does not include:
To reduce the employer's health insurance premiums.
A legal right of shareholders is:
To vote on members for the board of directors.
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.
A prime social responsibility of business is to safeguard consumers:
While continuing to supply them with goods and services they want.