BA400 Exam 3

The statement in this clip that reveals the most about Howard Schultz's moral management is:

"We are in the people business serving coffee"

A management system that focuses on all the elements that contribute to organizational performance and success, including financial, customer, market, and internal processes is defined as the

Balanced Scorecard

Which issue in global ethics has created a controversy at Chiquita Brands International?

Bribery and questionable payments

Which of the following realities of global business makes it difficult to evaluate the legality and ethics of Chiquita's questionable payments to paramilitary groups in Colombia?

Bribes and "grease payments" are an accepted way of doing business in many countries around the world

While Chiquita needed to protect its laborers from guerilla fighters in Colombia, executives might have taken a stand and refused to offer questionable payments to dangerous paramilitary armies. An ethical argument for taking this course of action is:

Bribes only lead to repeated demands for more bribes

To recognize and respond to negative consequences of Starbucks' rapid growth, CEO Howard Shultz needed:

Ethical decision making skills

According to the CEO of Chiquita, the financial demands made by military groups in Colombia were a form of:

Extortion

Alternative energy sources have significantly increased the carbon footprint of communities, cities, and even countries. a. True b. False

False

Companies that experience ethical misconduct disasters almost never recover from them. a. True b. False

False

Environmental advocates ensure that shoppers are adequately informed about the environmental impact of the products they buy. a. True b. False

False

Ethical leadership is possible without effective communication. a. True b. False

False

Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole. a. True b. False

False

Sustainable design has been mainstream for many years. True False

False

Using recycled materials is costly not only for designers but also for consumers. True False

False

Which is not a benefit of a firm "going green"?

Firms can focus more upon their own efforts as a distinct unit rather than on the entire supply chain

Government legislation that attempts to regulate questionable payments similar to payments Chiquita made in Colombia is:

Foreign Corrupt Practices Act.

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

Global Compact

___________ involves misleading a consumer into thinking that a product or service is more environmentally friendly than it really is. It can range from making environmental claims that are required by law and are therefore irrelevant (CFC-free) to puffery, or exaggerating environmental claims, to fraud.

Greenwashing

Which of the following responses to the economic downturn shows Howard Schultz's passion to do right?

He increased employee health benefits despite the economic cost to the company

Formal controls

Include input controls such as proper selection of employees, effective ethics training, and strong structural systems

Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members?

International Monetary Fund

Suppose that after the Deepwater Horizon oil spill in in 2010, B.P. implemented new ethics policies and guidelines. Which of the following types of data would give you the best indication of how successful B.P.'s new ethics program is?

Interviews about ethical practices with B.P. employees, customers, suppliers, and investors

In what way does Howard Schultz's description of the Starbucks coffee shop demonstrate ethical leadership?

It focuses on people

Which of the following best describes an ethics audit?

It is a major component of an ethics program

Which program recognizes sustainable building practices and strategies?

LEED

_____________ occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company.

Leader-follower congruence

_____________ is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse.

Recycling

Based on Chiquita's response to violent threats at its Colombia banana plantation, which of the following courses of action was the least acceptable outcome to executives:

Risking the reputation of the Chiquita brand was the least acceptable outcome

The CEO of BP recently found out that stockholders were planning to pass a resolution at the next annual meeting that would mandate that BP follow specific practices when drilling for oil within 50 miles of shore. This is related to which of the following challenges for CEOs?

Shareholder activism

Which of the following is a means of measuring process variations that cause defects considered as unacceptable deviations from the mean or target?

Six Sigma

___________ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.

Sustainability

One attempt at addressing global warming was _______, created in 1997. It was an international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs.

The Kyoto Protocol

Which type of leader inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate? This type of leader is considered to be the most effective.

The authoritative leader

Chiquita Brands International is a multinational corporation because:

The company operates business units in Colombia and many other nations around the world

According to Starbucks CEO Howard Schultz, what went wrong with the company's aggressive global growth strategy?

The singular focus on profit harmed product quality and employee morale

The measuring of social, financial, and environmental factors (or people, places, and planet) that recognizes business has a responsibility to positively influence a variety of stakeholders, including customers, employees, shareholders, community, and the natural environment is defined as

Triple Bottom Line

As designers become more adept at using recycled materials in their products, their products have become more sophisticated. True False

True

Employee turnover is a useful indicator for assessing employee issues. a. True b. False

True

Organizational culture emerges whether or not there is effective leadership. a. True b. False

True

Products made with reclaimed materials are becoming less of a novelty. True False

True

The environmental and financial struggles of the past decade have led to the increased use of waste materials in design. True False

True

WalMart's annual revenues are greater than the GDPs of most of the countries in the world. a. True b. False

True

If B.P. asks an outside accounting firm to double check the financial data they are including in an ethics audit, which of the following steps of the ethics audit are they in?

Verifying and reporting the results

_____ is one of the biggest contributors to illnesses in developing countries.

Water pollution

Of the following statements, which is correct?

When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping.

With regards to benefits of ethical leadership, which statement is incorrect?

Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity

Which of the following provides legally binding ground rules for international commerce and trade policy?

World Trade Organization

Howard Schultz responded to the financial crisis by:

a.Reversing the company's rapid growth strategy b.Ramping up employee health benefits c.Returning as CEO

As defined within the chapter, global common values

are all derived from the major religions

The strategic importance of ethics auditing includes all of the following EXCEPT

avoidance of fines in case of an infraction

Companies such as Coca-Cola, Hewlett-Packard, and Walmart support a globally based resource system called __________, which tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools.

business for social responsibility

Which of the following is not a category of communication?

coercive communication

The Better Business Bureau's International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit?

companies with fewer resources

Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach.

compliance; integrity

When morality varies from one culture to another and that "right" and "wrong" are defined differently is referred to as

cultural relativism

In this clip, Starbucks and CEO Howard Schultz addresses the needs and interests of the following stakeholder group:

customers.

Ethical leaders need both knowledge and ___________ to make the right decisions.

experience

Which is NOT a criticism of MNCs

exploitation of labor markets of home countries

Sustainability _____

falls into the social responsibility domain of maximizing positive and minimizing negative impacts on stakeholders

In this clip, Starbucks CEO Howard Schultz demonstrates ethical leadership by:

focusing on product quality and affordability.

Alternative sources of energy include all of the following EXCEPT

gas power

Conflict management styles include all of the following EXCEPT

guarding

Sustainable development _____.

has become a top concern for many businesses as it involves meeting the needs of the present without compromising the ability of future generations to meet their own needs

What is one of the greatest organizational benefits of conducting an ethics audit?

improved relationships with stakeholders who desire transparency

Global warming _____

is associated with the ozone layer

The ability or authority to guide and direct others toward a goal is called

leadership

Suppose that Matthew set up a system to measure the performance of his company. He investigates any process variations that cause him to miss his goals, and he tries to manage those variations so he eliminates defects. When Mr. Fisherman looks for process variations, he is measuring:

non financial ethical performance.

When managers overlook or stifle the importance of core values in their business decisions it is referred to in the chapter as

normative myopia

The most controversial form of alternative energy is

nuclear power

Both ethics auditing and financial auditing employ

objective reporting

Chiquita executives felt forced to make questionable payments while operating in Colombia because:

political and social unrest plagues less-developed countries like Colombia.

The power inequality between superiors and subordinates is referred to as

power distance dimension

This type of leader is characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoyment in flouting the rules.

psychopathic

Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants?

rational economics

All of the following represent steps in the RADAR model EXCEPT

realize

All of the following are sustainable business practices that show social commitment EXCEPT

reducing alternative energy sources

When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called

risk compartmentalization

The process of assessing and reporting on a business's performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders is called a

social audit

Howard Shultz's childhood experience with his injured father taught him to:

subordinate short-term economic interests of a firm to core needs and interests of other stakeholders.

An ethics audit is a

systematic evaluation of an organization's ethics program and/or performance to determine its effectiveness

Which of the following items do NOT have a strong impact on whether an ethics program is successful?

the level of employee compensation

The unconscious reference to one's own cultural values, experiences, and knowledge is called

the self-reference criterion

The ethical crisis that is causing the biggest impact in these videos is:(BP)

the threat of oil from a BP accident polluting Gulf of Mexico waters.

With regards to leadership styles that influence ethical decisions, the challenge for leaders is _______________________, which is essential if organizational leaders are to steer their companies toward success.

to gain trust and commitment of organizational members

How members of a society respond to uncertainty or ambiguity is referred to as

uncertainty avoidance

An integrity-based approach

usually have chief officers, human resource managers, and board member committees involved with the ethics and compliance program

Which of the following is not part of the framework for an ethics audit?

verify the results yourself or by a coworker