OBHR Exam 1

When managers become personally involved in developing public policy, the firm is at what level of business political involvement?

Aggressive

The reason(s) behind uncertainty of an ethical decision is (are) that different people and groups

Use different source of info, may rank various rights in different ways, may not share the same meaning of justice

Regulation can be argued as justified based on

Utilitarian and justice grounds

14. The five types of stakeholders' power recognized by most experts are

Voting, economic, political, legal, and informational power.

28. Ethical relativism is most accurately defined by which statement?

What's ethical in one society may be forbidden in another

24. Legal environment intelligence includes

considerations of patents, copyrights, or trademarks

12. A market stakeholder of business is exemplified by which of the following?

creditors (need to look at market to see if they want to invest or not)

23. Stakeholder engagement is best described as a

relationship

42. Proponents of business as a political participant argue that

Both "a pluralistic system invites many participants" and "business is a vital stakeholder of government" are correct

Companies that believe they can make decisions unilaterally, without taking into consideration their impact of others, are:

Inactive

Public policy tools involve a combo of

Incentives and penalties

According to the general systems theory, boundary exchanges are exemplified by which of the following?

Industrial company sells new equipment in its plant to comply with environmental regulations, software company develops application for client, purchasing dept employee negotiates a price on parts with a supplier.

The main drawback to utilitarian reasoning is that

It's difficult to accurately measure both costs and benefits

Proactive companies are

Much less likely to be blindsided by crises and negative surprises

18. An analysis of the stability or instability of a government is an example of scanning which type of environmental intelligence?

Political

48. Expert witness testimony is often collected through

Public congressional hearings

What is important when we look at info?

Relevant- Accurate- Timely-

45. What is the risk of a revolving door hiring policy?

There may be favoritism in decision making

25. A conception of right and wrong is

the definition of ethics

What are the 5 key reasons businesses should be ethical?

(1. To enhance business performance (strong link between ethics & financial performance). 2. To comply with legal requirements (U.S corporate sentencing guidelines, Sarbanes-Oxley Act (2002): ensures firms maintain high ethical standards...) 3. To meet demands of business stakeholders (consumers more likely to purchase products, gain trust from investors, signal long-term concern for all stakeholders) 4. To prevent or minimize harm (overriding principle that business should "do no harm") 5. To promote personal morality (being in supportive ethical climate gives psychological security)

The emergence of public issue indicates that

A gap may be developing between what stakeholders expect and what a firm is doing

19. Scanning the competitor environment includes

All of the above (Identifying number of competing organizations, determining how many rivals may become allies, analyzing the growth rates of competing firms)

15. Stakeholder groups can include

All of these choices are correct (shareholders, business support groups, environmental activists)

34. Businesses' understanding of government regulations is

Both a domestic and an international issue

17. Public issues are also referred to as

Both social issues and sociopolitical issues.

A structural remedy for an antitrust violation includes

Breaking up a monopolistic organization

10. The relationship between business and society is most accurately described by which statement?

Business is a distinct bounded entity within the larger bounded entity of society

43. Public policies and government regulations are shaped by

Business, special interest groups, government

Failure to understand the beliefs and expectations of stakeholders may

Cause the performance expectations gap to grow larger

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

Common law

An interactive business-stakeholder relationship is one where

Companies actively engage with stakeholders through mutual respect and trust

33. Which type of ethical issue did 3M face with regard to price gouging accusations, according to the case "3M and N95 Respirators for Americans"?

Competitive pressures on profits

A purchasing agent giving an exclusive contract to a supplier, from which she received a valuable gift is an example of

Conflict of interest

A company that builds stakeholder coalitions to influence govt is using which strategy?

Constituency building

44. Which political action strategy seeks to gain support from other affected organizations to better influence policymakers?

Constituency-building strategy

22. When working well, the issue management process

Continuosly cycles back to the beginning and repeats

41. A test to determine if the benefits of regulation are worth its costs is called a

Cost-benefit analysis

Which argument says that stakeholder management realistically depicts how companies really work?

Descriptive argument

29. Cross-cultural contradictions arise due to

Differences between home and host countries' ethical standards

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

Direct communication

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

Economic sanctions

(T or F) A national health care policy is an example of an economic policy.

False

(T or F) A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm

False

(T or F) Businesses cannot expect to be profitable while adhering to ethical principles of conduct

False

(T or F) Ethical ideas are present in all societies, all organizations, and all individual persons.

False

(T or F) In all cases, businesses are unable to exert enough influence over government leaders to keep them in power.

False

Patterns of govt. collecting and spreading funds to stimulate or support the economy fall under which type of policy?

Fiscal

Describe social, monetary, and ethical policies

Fiscal policy: patterns of government collecting and spending funds to stimulate or support the economy. Monetary policy: policies that affect the supply, demand, and value of a nation's currency. Social policy: policies that concern social services for citizens.

The reason(s) behind a corporate political strategy might be to

Focus on limiting a competitor's progress, further a firm's economic survival or growth, exercise their voice in government affairs

The drivers of stakeholder engagement are

Goals, motivation, and operational capacity

35. Which entity enforces rules to balance the relationships between business and society?

Government

21. An issue's public profile indicates to managers

How significant an issue is for the organization, but it does not tell them what to do

Supporters of advocacy advertisements believe that they

Identify a company as an interested and active stakeholder and can help mold public opinion on a particular policy issue

30. Business managers need a set of ethical guidelines to help them

Identify and analyze the nature of an ethical problem

A govt is being asked to regulate driving distractions is an example of a public policy

Input

11. A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing long-term value for its

Investors

13. All of the following are external stakeholders of the firm except

Managers

39. When the marketplace does not adjust for the full costs of a firm's behavior, this is called

Market failure

Rules that affect supply, demand, and value of nation's currency refer to which type of public policy?

Monetary

A non-market stakeholder of business is exemplified by which of the following?

Nongovernmental organizations

What was the effect of the citizens united decision to allow direct unlimited contributions from businesses to politicians?

Political spending by corporations increased dramatically

16. Particular stakeholders stand out to managers when they exhibit

Power, loyalty, and legitimacy.

40. Economic regulations are illustrated by which action?

Preventing anticompetitive business practices

What role does social media play in stakeholder engagement?

Provides forum for firm to share info. with public via blogs and press release, offer a mechanism for public to voice their opinions of firm and products via reviews, make stakeholder communications faster and more effective

36. Cooperation between business and government often occurs when

Regulations set standards that apply to all firms, rules build consumer confidence in product safety, barriers to entry help maintain a competitive advantage

31. At the core of rights reasoning is the belief that

Respecting others is the essence of human rights

When something stands out from a background is seen as important, or draws attention it is

Salient

Stakeholder groups can include

Shareholders, business support groups, environmental activists

The fiduciary duty of managers benefits a firm's

Shareholders, customers, employees.

Since 1960, what was the growth trend in the U.S regulatory apparatus?

Significantly increased

By raising and lowering the interest rates at which private banks borrow money from the govt., the Federal Reserve Banks influences:

Size of nation's money supply, value of dollar, investor confidence

20. The role of special interest groups is an important element in acquiring intelligence from which environment?

Social

27. Businesses are expected to be ethical in their relationships with

Stockholders, customers, competitors

32. One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as

Temporal immediacy

46. The job of a business lobbyist is to represent

The company by influencing the government policy

47. What is one disadvantage to business

The contribution amount is capped at fairly low levels

As a factor of moral intensity, how does proximity of an issue affect the decision maker?

The greater the empathy, the higher the intensity

One concern of critics and regulation is

The high cost to small and manufacturing businesses

What is the primary reason that stakeholder coalitions form?

The stakeholder interest(s) of different group coincides

People's ethical principles come from

Their religious background, family, and education

37. Why should companies be concerned when doing business with questionable governments?

They might indirectly support the illegitimate controlling power

26. What normative reason is there for business to be ethical, according to Figure 5.1?

To comply with legal requirements

49. Why do businesses use direct communications, like plant visits, with political leaders?

To improve the officials' understanding of the business

(T or F) Economic regulations aim to modify the normal operations of the free market and the forces of supply and demand.

True

(T or F) How a business reacts to specific government policy often depends on if they would be helped or hurt by the rules

True

(T or F) If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree.

True

(T or F) Understanding and responding to changing societal expectations is a business necessity.

True

What contribution limits are in place for a Super PAC?

Unlimited amounts from groups or individuals