Bus 100 Reading quiz answers
Which of the following example does not show a company guided by enlightened self-interes?t
A company breaking past records by maximizing quarterly profits
Deregulation is often
A politically popular idea
Once an issue has been identified, it's applications must be
Analyzed
Positive reputation can be valued as an intangible corporate
Asset
All of the following values are present in most ethical decisions except
Be kind
Customers can exercise economic stakeholder power by:
Boycotting products if they believe the goods are too expensive
Which country recently enacted new laws to counter bribery and corruption?
Brazil
Which of the following represents a structural remedy for an antitrust violation?
Breaking up a monopoly
To influence government policymakers' actions, an information strategy involves
Business leaders speaking before government policymakers.
Integrity-based ethics programs
Combines concern for the law with an emphasis on employee responsibility
The board committee that administers and approves salaries and benefits of high-level managers in a company is called the
Compensation committee
When attempting to build ethical safeguards into the company, businesses can take the following specific approaches
Compliance and Integrity
The costs of corporate social responsibility may ultimately be passed on to the
Consumer through high prices
Explosive use of social media is an example of
Customer Environment
What stakeholder group(s) can exercise legal power
Customers, Employees, and Shareholders
Economic regulations
Cut across industry lines
Cross-cultural contradictions arise due to
Differences between home and host countries' ethical standards
Which of the following is an argument in favor of corporate social responsibility?
Discourages government regulation
Investors may receive an economic benefit from the ownership of stock by receiving
Dividends and Capital Gains
Which of the following is not a constituency-building strategy tool?
Expert witness testimony.
A national health care policy is an example of an economic policy.
False
The United Nations oversees all international agreements concerning regulations between nations.
False
When a company puts its commitment to social and environmental responsibility into practice worldwide, not only logically or regionally it is called
Global Corporate Citizenship
The drivers of stakeholders of engagement are
Goals, Motivation, and Operational/Organizational Capacity
Which of the following arguments supports the concept of high executive compensation?
High salaries provide an incentive for innovation and risk-taking.
Mature adults typically base their ethical reasoning on broad principles and relationships such as
Human rights and constitutional guarantees of human dignity and universal principles of justice
Business managers guidelines to help them
Identify and analyze the nature of ethical problem.
Contemporary issue management
Is an interactive, forward thinking process
Which of the following examples best illustrate an ethics based on cross-cultural contradictions?
Legally marketing a pesticide abroad that has been banned in the U.S.
Social investors seek to eliminate from their investment portfolios companies that
Make dangerous products like tobacco or weapons, Pollute the environment, and Discriminate against employees.
The "agency problem" arises when
Managers act in their own interest, rather than in the interest of shareholders
When the market fails to adjust for the full costs of a firm's behavior, this is called?
Market Failure
Proactive companies are
Much less likely to be blindsided by crises and negative surprises
An analysis of the stability or instability of a government is an example of scanning the
Political Environment
A common tactic in a financial-incentive political strategy is
Political contributions.
Scholars found that spirituality
Positively affects employee and organizational performance
The mission of the Securities and Exchange Commission (SEC) is to
Protect shareholders' rights by making sure that stock markets are run fairly.
How are directors (members of corporate boards) selected?
Shareholders elect the directors from a list of candidates
Which of the following is not an example of stakeholder's economic power
Social groups protest a government's decision to raise taxes.
Once an organization has implemented the issue management program, it must
Study the results and make necessary adjustments
Corporate power refer to
The capability of corporations to influence government, the economy, and society, based on their organizational resources
Cooperation between business and government often occurs when
They encounter a common problem or enemy
Which of the following statements is not true about shareholders?
They own equal shares of company assets.
Which of the following is not a legal right of shareholders?
To vote on who will become chief executive officer (CEO)
Dark money refers to
Undisclosed contributions to tax-exempt organizations.
Businesses promote an information strategy by inviting government leaders to
Visit local plant facilities, Attend company award ceremonies, and Give speeches to employees.
Divide types of stakeholders power recognized by most experts are:
Voting, Economic, Political, Legal, and Informational Power
Which of the following is not an instance of "insider trading"?
A marketing executive briefing stock analysts on the company's sales performance
Stakeholder groups to include:
Environmental Activists, Shareholders, and Business Support Groups
Over time, the nature of a business's relationship with its stakeholders often
Evolves through a series of stages
In a survey of 110 companies in 2014, the most frequent public affairs tactic was related to
Federal government regulations
Business managers need a set of ethical guidelines to help them
Identify and analyze the nature of the ethical problem
Expert witness testimony is often collected
In Congressional hearings.
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
Firms in the chemical industry, which must contend with frequently changing environmental regulations and the risk of dangerous accidents, usually have
A sophisticated political strategy.
Because of the risk and opportunities public issues present, organizations need
A systematic way of identifying, monitoring, and selecting public issues
Which statement is not correct about the business society interdependence?
Actions by governments rarely affect business
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
A just or fair ethical decision occurs when
Benefits and burdens are distributed equally
Which type of employee is most likely to report ethical issues in the workplace?
Executives
Government and business together establish the regulatory rules under which business operates in society.
False
If a manager approaches ethics with benevolence in mind, he or she would stress what?
Friendly relations with an employee
Governments hold the power to
Grant or refuse permission for many types of business activity
Under the Sarbanes-Oxley Act, corporations are required to
Have executives vouch for the accuracy of a firm's financial reports
Corporations that run their operations according to the stakeholder theory of the firm create value by:
Increasing their stock price, Developing their employees' professional skills, and Innovating new products
With explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:
Informational Power
The main drawbacks to utilitarian reasoning is that
It is difficulty to accurately measure both costs and benefits
In recent annual Harris polls, which entity did Americans believe had the greatest amount of political power?
Large Businesses
The information strategy tool most used by business is
Lobbying
Which of these cost-savings measures saved U.S. regulatory agencies nearly $2 billion since 2011?
Promotion of telemedicine in rural areas, Coordination of hazards warning other nations, and Removal of redundant reporting requirements
What kind of power might a local community used to influence a company's decision?
Publicizing an Issue, Challenging whether a business activity should continue to operate, and Lobbying govt policy makers for regulations
Most ethics or compliance officers are generally entrusted to
Reduce the risk to the company's employee misconduct
Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility?
Religious/ethnic beliefs
Which company ethics safeguard is commonly implemented as an employee "helpline"?
Reporting Mechanisms
Which of the following is an argument against corporate social responsibility?
Requires skills businesses may lack
Which of the following statements is not true about the interactive social system?
The boundary between business and society is clear and distinct
The core components upon which a company's ethical performance depends include
The personal character of the managers and employees, the values and virtues of the managers, and the traditions, attitudes, and business practices built into a company's culture.
Stakeholder engagement is
The process of ongoing relationship building between a business and its stakeholders
People's ethical beliefs come from
their religious background, family, and education