Midterm mult choice

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.

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

Compliance and Integrity.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Which of the following is not an instance of "insider trading"?

A marketing executive briefing stock analysts on the company's sales performance

Deregulation is often:

A politically popular idea.

Which statement is not correct about the business-society interdependence?

Actions by governments rarely affect business.

Positive reputation can be valued as an intangible corporate:

Asset

Businesses promote an information strategy by inviting government leaders to:

Attend company award ceremonies. Give speeches to employees. Visit local plant facilities.

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

Audited by a certified professional accounting firm.

Customers can exercise economic stakeholder power by

Boycotting products if they believe the goods are too expensive.

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.

Past decisions of the courts, the original basis for the U.S. legal system, are called

Common laws.

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

Compensation committee.

The costs of corporate social responsibility may ultimately be passed on to the

Consumer through high prices.

Cross-cultural contradictions arise due to:

Differences between home and host countries' ethical standards.

When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called:

Economic Sanctions.

The most significant motivator of corporate social reporting is:

Ethical concerns.

Over time, the nature of business's relationship with its stakeholders often

Evolves through a series of stages

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.

Under the Sarbanes-Oxley Act, corporations are required to:

Have executives vouch for the accuracy of a firm's financial reports.

Which of the following arguments supports the concept of high executive compensation?

High salaries provide an incentive for innovation and risk-taking.

the iron law of responsibility says that

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

Contemporary issue management:

Is an interactive, forward thinking process

The main drawback to utilitarian reasoning is that:

It is difficult to accurately measure both costs and benefits.

Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions?

Legally marketing a pesticide abroad that has been banned in the U.S.

The information strategy tool most used by business is:

Lobbying

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.

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

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

Most ethics or compliance officers are generally entrusted to:

Reduce the risks to the company of employee misconduct.

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

The issues management process is a

Systematic process companies use when responding to public issues that are of greatest importance to the business.

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

The boundary between business and society is clear and distinct.

Corporate power refers to:

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

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. 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.

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).

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

be cruel

Investors may receive an economic benefit from the ownership of stock by receiving:

dividends, capital gains

Dark money refers to:

undisclosed contributions to tax-exempt organizations.

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called:

corporation

Which of the following is not a constituency-building strategy tool?

expert witness testimony

Corporations that run their operations according to the stakeholder theory of the firm create value by

increasing stock price, developing professional skills, innovating products

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

make danger, pollute, discriminate

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

publicizing, challenging, lobbying

Which of the following is an argument against corporate social responsibility?

requires skills businesses may lack.