Social Responsibility & Ethics

A high magnitude of consequences that increases the moral intensity of an ethical issue is best exemplified by which of the following?

A food product contaminated with salmonella was distributed to stores.

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger.

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

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

Descriptive argument

A business and its stakeholders coming together for face-to-face conversations about issues of common concern is called stakeholder:

Dialogue

Cross-cultural contradictions arise due to:

Differences between home and host countries' ethical standards.

Those in support of corporate social responsibility believe the practice:

Discourages government regulation

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices.

With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:

Informational power

Building ethical safeguards into a company's everyday routines is called:

Institutionalizing ethics.

When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's:

Legal Power

Aristotle argued:

Moral virtue is a mean between two virtues.

Corporations working collaboratively with other businesses and concerned persons and organizations is an example of stakeholder:

Networks

An analysis of the stability or instability of a government is an example of scanning which environment?

Political

People everywhere depend on ethical systems to tell them whether their actions are:

Right or wrong

Once an organization has implemented the issue management program, it must:

Study the results and make necessary adjustments.

A conception of right and wrong is:

The definition of ethics.

Global market channels involve a firm producing goods in:

Their home country and exporting them to other countries.

People's ethical beliefs come from:

Their religious background, family, and education.

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

- An industrial company installs new equipment in its plant to comply with environmental regulations. - A software company develops an application for a client. - A purchasing department employee negotiates a price on parts with a supplier.

Which of the following statements is (are) correct about stakeholders' power?

- Different stakeholders have different types and degrees of power - Shareholders' voting power is limited to the percentage of share owned by the shareholder - It uses resources to achieve a desired decision or outcome

According to the United Nations, a feature of democracy is:

- Fair elections - An independent media - A government with power balanced among executive, legislative, and judicial branches

Businesses are expected to be ethical in their relationships with:

- Stockholders - Customers - Competitors

Most ethics or compliance officers are entrusted to:

Act as a liaison between the company and their temporary employees.

Once an issue has been identified, its implications must be:

Analyzed

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

B Corporation

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of:

Chaplains

BSR (formerly Business for Social Responsibility) helps its 300 member companies:

Develop sustainable business strategies

The theory of comparative advantage states that:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

The most important agreement which codifies human rights is:

The Universal Declaration of Human Rights

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs?

The financial bottom line.

Mature adults typically base their ethical reasoning on broad principles and relationships such as:

- Human rights and constitutional guarantees of human dignity. - Universal principles of justice.

The percentage of global wealth concentrated at the base of the Pyramid is:

70 Percent

The most significant motivator of corporate social reporting is:

Ethical concerns.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of ethical problem.

All of the following are considered to be ethical issues for marketing professionals except:

Ignoring market fair dealing.

Scholars found that spirituality affects employee and organizational performance in what way?

Positively

Concerns about corporate social responsibility are exemplified by which of these statements?

Requires skills businesses may lack

An example of a Global Action Network, or GAN, is:

The Kimberley Process

A stakeholder map is a useful tool because:

- It enables managers to quickly see how stakeholders feel about an issue - It allows managers to evaluate what outcomes are likely regarding an issue.

An example of an international financial and trade institution is:

- World Bank - International Monetary Fund - World Trade Organization

As business becomes increasingly global:

Cross-cultural contradictions will increase.

The deep anti-Americanism that exists in some parts of the world is thought to be caused by:

Resentment of cultural penetration from U.S.-based multinational enterprises.

The phenomenon of a person or group holding multiple stakeholder duties is referred to as:

Role sets

Representation on the World Bank's board of directors is based on:

The size of the member nation's economy

The relevance and importance of stakeholders and their issues is known as:

Stakeholder materiality

Which statement(s) below are true about global income?

- Income is how much one earns in a day or a year. - Income at the bottom of the pyramid varies from place to place.

Under the World Trade Organization's most-favored nation rule:

All import restrictions are illegal unless proven scientifically.

A company that has ranked amongst the most ethical firms from 2007 to 2017, according to Forbes magazine, is:

AFLAC

The Principles and Standards of Ethical Supply Chain Management Conduct includes the principle:

Protect confidentiality

A giant step is taken toward improving ethical performance throughout the company when:

Senior-level managers signal to employees that they believe ethics is a high priority.

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

The U.S. Foreign Corrupt Practices Act.

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

The boundary between business and society is clear and distinct.

Companies demonstrate global corporate citizenship by:

- Finding business opportunities that serve society. - Integrating concern for both financial and social performance.

Philanthropic funding and public relations are two examples of corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase.

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

Stakeholder groups can include:

- Shareholders - Business support groups - Environmental activists

The fiduciary duty of managers benefits a firm's:

- Shareholders - Customers - Employees

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits.

Positive reputation can be valued as an intangible corporate:

Asset

The primary goal of a "vulture fund" is to:

Make a profit

Assets that a person accumulates and owns at a certain point in time are called:

Wealth

Which of the following statements accurately describe the practice of tax inversion:

- A company shifts their headquarters to a foreign country. - A company increases debt in their home country.

Which one of the following is considered to be a nonmarket stakeholder of business?

Nongovernmental organizations

The three strategies of globalization can be summarized using what three words?

Sell, make, and buy.

Which of the following is the result of the inseparable relationship between business and society?

- All business decisions have a social impact - The vitality of business depends on society's actions and attitudes.

Government has distinctive resources and competencies including:

- Knowledge of public policy - Ability to enforce the rules - Revenue from taxation

The emergence of a public issue indicates that:

A gap may be developing between what stakeholders expect and what an organization is actually doing.

In the case Corporate Social Responsibility at Gravity Payments, which view in support of corporate social responsibility is relevant according to Figure 3.3?

Balances corporate power with responsibility

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

According to a 2017 survey, Americans hold a dim view of:

Business executives

Integrity-based ethics programs:

Combine concern for the law with an emphasis on employee responsibility.

Stakeholders have been able to form international coalitions more successfully through use of:

Communications technology

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

Which of these statements is true about the U.K. Bribery Act?

Contains a strict liability offense for failure to prevent bribery by commercial organizations.

The explosive use of social media is an example of which environment?

Customer

Ethical challenges for information technology employees include:

Data privacy and copyright protection.

Customer environmental intelligence includes:

Demographic factors

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

Due Process

A free enterprise system refers to:

Economic assets that are privately owned and exchanged in an open market.

Which ethical criterion is described by the idea that a company should strive for efficiency?

Egoism

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on:

Eight strategic radar screens.

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate.

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

Evolves through a series of stages.

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile.

Forum Empresa

If a manager approaches ethics with benevolence in mind, he or she would stress what?

Friendly relations with an employee.

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

The drivers of stakeholder engagement are:

Goals, motivation, and operational capacity.

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

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

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.

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

Inactive

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its:

Investors

A stakeholder analysis:

Involves understanding the nature of stakeholder interests.

Contemporary issue management:

Is an interactive, forward-thinking process.

The main drawback to utilitarian reasoning is that:

It is difficulty to accurately measure both costs and benefits.

In the case Insuring Uber's App-On Gap, which type of power do Uber customers have?

Legal and economic

Microfinance refers to banks:

Lending money to low-income businesses.

When undertaking social initiatives, a company:

May sacrifice short-term profits

Which country passed major anti-corruption reforms in 2016?

Mexico

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

Operating under the compliance-based approach.

Which of these is not an objective of the Global Reporting Initiative (GRI)?

Providing tax incentives for global corporate citizens.

Firms that generally act only when forced to do so, and then in a defensive manner, are:

Reactive

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:

Reduced

Stakeholder engagement is, at its core, a:

Relationship

Which company ethics safeguard is commonly implemented as an employee "helpline"?

Reporting mechanisms.

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights.

A recent study found that, compared to the 1980s, managers today place what importance on moral values, such as honesty and forgiveness?

Slightly more important.

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

Social

The issue management process is a:

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

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the:

Transforming stage

In the case Insuring Uber's App-On Gap, which stakeholders supported ending the App-On Gap?

Uber customers, Uber drivers, consumer lawyers.

Which of the following is not an example of an ethical criterion?

Corporate driven

Organizations founded with a core mission to create and sustain social value are called social:

Ventures

Single-party rule by communist parties still remains in:

Vietnam

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

Voting, economic, political, legal, and informational power

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations.

Interactions between business and society occur:

Within a finite natural ecosystem

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

Corporate citizenship

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

According to an annual Gallup poll, which occupation was consistently ranked the highest for honesty and ethics?

Nurses

Which of the following statements is true about corporate social responsibility?

- Businesses should monitor and prevent social problems in advance of their becoming major issues. - Corporations should be accountable for any actions that affect people, their communities, and the environment.

The most effective ethics programs utilize which of the following:

- Written policy - Posters - Quick reference guides

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

Actions by governments rarely affect business.

A corporation's issue management activities are usually overseen by:

Both the board of directors and top management levels.

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

- Innovating new products - Increasing their stock price - Developing their employees' professional skills

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

- May honestly and genuinely use different sources of information. - May rank various rights in different ways. - May not share the same meaning of justice.

Why should business be ethical, according to Figure 5.1?

- Most people want to act in ways that are consistent with their own sense of right and wrong. - Ethical behavior protects business firms from abuse by unethical employees and competitors. - Society's stakeholders expect it from businesses.

A leadership role in addressing emerging management issues is often taken by:

- The public affairs department - The government relations department - The department of sustainability or environmental, health and safety

The core components upon which a company's ethical performance depends include:

- The values and virtues of the managers. - The personal character of the managers and employees. - The traditions, attitudes, and business practices built into a company's culture.

In the case LafargeHolcim and ISIS in Syria, a utilitarian benefit of keeping the plant open was:

Employees received paychecks.

The issue of reactive management policies occurs in which stage of global corporate citizenship?

Engaged

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

The use of social media to conduct stakeholder engagement has:

Increased the ability to share information amongst employees and partners.

All of the following are external stakeholders of the firm except:

Managers

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises.

Business leaders, like automaker Henry Ford, developed these programs to support the recreational and health needs of their employees.

Paternalistic programs

A just or fair ethical decision occurs when:

Benefits and burdens are distributed in fair proportions.

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:

Boundary-spanning departments

According to Barlow v. A.P. Smith Manufacturing:

Socially responsible actions are an investment in the future, thus an allowable expense.

An individual who is a supporter of globalization would argue that it helps the developing world by:

- Giving entrepreneurs access to foreign investment funds to support economic development. - Allowing new ideas and technological innovations to spread quickly. - Providing people in developing countries with more jobs.

Good corporate citizens:

- Strive to conduct all business dealings in an ethical manner. - Make a concerted effort to balance the needs of all stakeholders. - Work to protect the environment.

Because of the risks and opportunities public issues present, organizations need:

A systematic way of identifying, monitoring, and selecting public issues.

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to:

Utilitarian reasoning

A member of the Chartered Financial Analyst Institute (CFA) must:

- Promote the integrity of and uphold the rules governing global capital markets. - Act with integrity, competence, diligence, respect, and in an ethical manner with the public. - Maintain and improve their professional competence.

The instrumental argument says stakeholder management is:

More effective as a corporate strategy

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.