BGS

Which of the following examples does not show a company guided by enlightened self-interest? Select one: A company providing the best quality product at a fair price. A company providing assistance to employees who attend evening college. A company breaking past records by maximizing quarterly profits. A company vice-president invited to attend a local community's town planning meeting

A company breaking past records by maximizing quarterly profits

Which of the following companies is being the most socially responsible? Select one: A company trying its best to operate in a way which will help local students get education and jobs. A company halting its production of toxic gasses after it discovered that people objected to this practice and threatened legal action. A company trying to maximize its profits and then contributing to an environmental protection fund. A company changing its product design to comply with regulatory mandates

A company trying its best to operate in a way which will help

Which of the following is not an example of stakeholders' economic power? Select one: A supplier halts shipments to a business customer that demanded very low prices. A social group protests a government's decision to raise taxes. A local community boycotts a grocery store suspected of inaccurate weight scales. An equal rights group refuses to do business with a company that has a discriminatory hiring policy.

A social group protests a government's decision to raise taxes

Under the World Trade Organization's most-favored nation rule: Select one: All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued. All import restrictions are illegal unless proven scientifically. Most-favored nations can impose heavy tariffs on other nations. Most-favored nations can oppose the dumping of goods by any nation in their home market

All import restrictions are illegal unless proven scientifically

Global social audit standards concentrate on: Select one: Internally focused economic benefits for the firm. Externally focused social benefits for the environment. Externally focused social benefits for key stakeholders. All of these answers are correct

All of these answer are correct

An individual who is a supporter of globalization would argue that it helps the developing world by: Select one: 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. All of these answers are correct

All of these answers are correct

Good corporate citizens: Select one: 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. All of these answers are correct

All of these answers are correct

Stakeholder groups can include: Select one: Shareholders. Business support groups. Environmental activists. All of these answers are correct.

All of these answers are correct

The fiduciary duty of managers benefits a firm's: Select one: Shareholders. Customers. Employees. All of these answers are correct

All of these answers are correct

What kind of power might a local community use to influence a company's decisions? Select one: Publicizing an issue. Lobbying government policy makers for regulations. Challenging whether a specific business activity should continue. All of these answers are correct

All of these answers are correct

overnment has distinctive resources and competencies including: Select one: Knowledge of public policy. Ability to enforce the rules. Revenue from taxation. All of these answers are correct

All of these answers are correct

An example of an international financial and trade institution is: Select one: World Bank. International Monetary Fund. World Trade Organization. All of these answers are correct

All these answers are correct

Positive reputation can be valued as an intangible corporate: Select one: Asset. Liability. Charity. Expense

Asset

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called: Select one: Balanced Corporation. B Lab. B Corporation. CSR Corporation

B Corporation

Government's role is to create and enforce laws that: Select one: Control businesses' actions in society. Protect businesses' interest in society. Protect society from business. Balance the relationship between business and society

Balance the relationship between business and society

In the case Corporate Social Responsibility at Gravity Payments, which view in support of corporate social responsibility is relevant according to Figure 3.3? Select one: Balances corporate power with responsibility. Discourages government regulation. Improves supplier relations. Promotes short-term profits for the business

Balances corporate power with responsibilty

Managers' understanding of government regulations is: Select one: Both a domestic and international issue. Primarily a domestic issue. Primarily an international issue. An international issue only for large firms

Both a domestic and international issue.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because: Select one: Business people do not have the skill set to solve societal problems. The private sector is not mandated to solve these issues. Both of these answers are correct. Neither of these answers is correct

Both of these answers are correct

Which of the following statements accurately describe the practice of tax inversion: Select one: A company shifts their headquarters to a foreign country. A company decreases cash holdings in a foreign country. A company increases debt in their home country. Both of these answers are correct: A company shifts their headquarters to a foreign country; and a company increases debt in their home country

Both of these answers are correct: A company shifts their headquarters to a foreign country; and a company increases debt in their home country

Which of the following statements is true about corporate social responsibility? Select one: Businesses should monitor and prevent social problems in advance of their becoming major issues. A company should seek maximum profits from its operations in order to provide the best for society. Corporations should be accountable for any actions that affect people, their communities, and the environment. 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

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

Which statement(s) below are true about global income? Select one: Income is how much one earns in a day or a year. Income at the bottom of the pyramid varies from place to place. Around 10 billion people globally sit at the bottom of the pyramid. Both of these answers are correct: Income is how much one earns in a day or a year; and income at the bottom of the pyramid varies from place to place

Both of these answers are correct: Income is how much one earns in a day or a year; and income at the bottom of the pyramid varies from place to place

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank: Select one: Influences the size of the nation's money supply. Influences the value of the dollar. Minimizes investor confidence about the nation's future. Both of these answers are correct: Influences the size of the nation's money supply; and influences the value of the dollar

Both of these answers are correct: Influences the size of the nation's money supply; and influences the value of the dollar

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are: Select one: Inter-departmental divisions. Geographical location areas. Boundary-spanning departments. Organizational maps

Boundary-spanning departments.

Customers can exercise economic stakeholder power by: Select one: Voting on a proposed merger for the company and a competitor. Boycotting products if they believe the goods are too expensive. Attending the company's annual meeting. Applying for a job with the company.

Boycotting products if they believe the goods are too expensive

How did Intel eliminate conflict minerals from their supply chain? Select one: Entirely through their own internal processes. The U.S. government stepped in to eliminate the conflict minerals. By collaborating with most suppliers in the chain including smelters, processors, and traders. Intel has not eliminated conflict minerals from their supply chain

By collaboration with most suppliers in the chain including smelters, processors, and traders

Deregulation has occurred in the following industries: Select one: Commercial airlines, sheet metal, and interstate trucking. Commercial airlines, railroads, and financial institutions. Commercial airlines, interstate trucking, and silicon chip manufacturing. Financial institutions, railroads, and silicon chip manufacturing

Commercial airlines, railroads, and financial institutions.

Past decisions of the courts, the original basis for the U.S. legal system, are called: Select one: Torts. Amendments. Legitimate actions. Common laws

Common Laws

The costs of corporate social responsibility may ultimately be passed on to the: Select one: Supplier through discounts. Consumer through high prices. Investor through stock splits. Taxpayers by the government

Consumer through high prices

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of: Select one: Corporate social stewardship. Corporate social responsiveness. Corporate/Business Ethics. Corporate/Global Citizenship

Corporate/Global Citizenship

Which argument says that stakeholder management realistically depicts how companies really work? Select one: Descriptive argument. Instrumental argument. Normative argument. Fiduciary argument.

Descriptive argument

Those in support of corporate social responsibility believe the practice: Select one: Lowers economic efficiency and profit. Discourages government regulation. Places responsibility on business rather than individuals. Imposes unequal costs among competitors

Discourages government regulation

A free enterprise system refers to: Select one: Economic assets that are privately owned and exchanged in an open market. Property ownership by a centralized government. A mix of privately owned and government controlled economic assets. An index of economic freedom

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

The purpose of the World Trade Organization is to: Select one: Impose barriers to free trade among nations. Eliminate barriers to free trade among nations. Develop trading partnerships between rich and poor nations. Decrease globalization and free trade

Eliminate barriers to free trade among nations

Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand. Select one: True False

False

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate. Select one: True False

False

Global corporate citizenship refers to putting an organization's commitment to social and environmental responsibility into practice locally. Select one: True False

False

In Europe, unions are prohibited by law to be on businesses' administrative boards. Select one: True False

False

Market stakeholders include nongovernmental organizations and business support groups. Select one: True False

False

Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. Select one: True False

False

The importing of foreign goods by U.S. firms is called foreign direct investment. Select one: True False

False

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work. Select one: True False

False

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders. Select one: True False

False

To qualify as a B corporation, a business must be certified by a state government agency. Select one: True False

False

When a company publishes the results of a social audit they are meeting the demands of local governments' taxation policies. Select one: True False

False

Patterns of government taxing and spending that are intended to stimulate or support the economy are: Select one: International standards policies. Social assistance policies. Fiscal policies. Monetary policies

Fiscal policies

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally, it is called: Select one: Corporate Social Responsibility. Global Sustainability. Global Corporate Citizenship. Community Investing

Global corporate citizenship

The iron law of responsibility says that: Select one: In the long run, those who do not use power responsibly will lose it. In the short run, sacrifice social goals for economic goals. Law is most important, more than social or economic responsibility. In the long run, economic responsibility leads to social responsibility

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

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its: Select one: Investors. Customers. Board of Directors. Community.

Investors

The primary purpose of the International Monetary Fund is to: Select one: Lend foreign currency to member countries. Exchange one currency for another. Consolidate the debt facing Third World nations. Collect the interest on loans made by the World Bank to Third World nations

Lend foreign currency to member countries

Microfinance refers to banks: Select one: Lending money to a very small number of businesses. Lending money to low-income businesses. Lending very small amounts of money to wealthy businesses. Charging low fees for all business loans

Lending money to low-income businesses

When undertaking social initiatives, a company: Select one: Must take out social responsibility insurance. Will always receive long-term profits. May sacrifice short-term profits. Risks going bankrupt in nearly all cases

May sacrifice short-term profits

Policies that affect the supply, demand, and value of a nation's currency are: Select one: International standards policies. Social assistance policies. Fiscal policies. Monetary policies

Monetary policies

The instrumental argument says stakeholder management is: Select one: A more realistic description of how companies really work. More effective as a corporate strategy. Simply the right thing to do. Determined by the amount of stock owned in the firm.

More effective as corporate strategy

The term "race to the bottom" refers to: Select one: Seeking to mine valuable minerals from the bottom of the ocean. Moving production jobs to the country with the lowest labor cost. Efforts to deconstruct the assembly process in manufacturing industries. An old concept of globalization that is no longer relevant

Moving production jobs to the country with lowest labor cost

Government regulations help balance negative externalities such as: Select one: No smoking rules enforced to mitigate the effects of second-hand smoke. Gender controls over alcohol purchases and consumption. Drug testing at private businesses. Age restrictions for Social Security recipients

No smoking rules enforced to mitigate the effects of second-hand smoke

Which one of the following is considered to be a nonmarket stakeholder of business? Select one: Customers. Nongovernmental organizations. Creditors. Shareholders.

Nongovernmental Organization

A firm that would like to develop a global supply chain would: Select one: Manufacture components or supplies in other countries. Sell raw materials, components, or supplies produced at home abroad. Purchase raw materials, components, or supplies from sellers in other countries. Check products that were manufactured abroad for defects in their home country

Purchase raw materials, components, or supplies from sellers in other countries.

Concerns about corporate social responsibility are exemplified by which of these statements? Select one: Requires skills businesses may lack. Creates an imbalance between corporate power and its economic responsibility. Improves business value and reputation. A majority of stockholders are against it.

Requires skill businesses may lack

Representation on the World Bank's board of directors is based on: Select one: The size of the member nation's population. The size of the member nation's economy. The size of the member nation's land mass. Equal representation of all member nations

The size of member nation's economy

The most important agreement which codifies human rights is: Select one: The American Civil Liberties Act. The Versailles Treaty. The Universal Declaration of Human Rights. The U.S. Declaration of Independence

The universal declaration of human rights

Cooperation between business and government often occurs when: Select one: They encounter a common problem or enemy. Business can afford it. Business operates at arm's length from the government. Government has the support of the people

They encounter a common problem or enemy.

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: Select one: Innovative stage. Integrated stage. Transforming stage. Engaged stage

Transforming Stage

A business is any organization that is engaged in making a product or providing a service for a profit. Select one: True False

True

A social audit is a systematic evaluation of an organization's social, ethical, and environmental performance. Select one: True False

True

Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms. Select one: True False

True

Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world. Select one: True False

True

Government and business together establish the regulatory rules under which business operates in society. Select one: True False

True

Government can be considered both a market and nonmarket stakeholder. Select one: True False

True

In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority. Select one: True False

True

Monetary policies refer to policies that affect the supply, demand, and value of the nation's currency. Select one: True False

True

Predatory pricing is a violation of antitrust laws. Select one: True False

True

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society. Select one: True False

True

Under the World Trade Organization's most favored nation rule, member countries may not discriminate against foreign products for any reason. Select one: True False

True

Regulation can be argued as justified based on: Select one: Collective market theory. Utilitarian and justice grounds. The life cycle of regulation. Tradition

Utilitarian and Justice grounds

Organizations founded with a core mission to create and sustain social value are called social: Select one: Entrepreneurships. Non-profits. Ventures. Capitalists

Ventures

The five types of stakeholders' power recognized by most experts are: Select one: Voting, economic, political, legal, and informational power. Social, legal, environmental, economic, and political power. Social, regulatory, voting, governance, and information power. Economic, informational, legal, shareholder, and political power.

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: Select one: Strict law enforcement. High environmental standards. Weak health and safety regulations. Strong worker unions

Weak health and safety

Interactions between business and society occur: Select one: Within a finite natural ecosystem. Only during an environmental crisis. When business employees and the community are of similar cultural backgrounds. When legislation is passed requiring interaction

Witin a finite a natural ecosystem

Economists reported that the costs of regulatory compliance were highest for: Select one: Vehicle safety. Antitrust issues. Worker safety. Consumer protection

Worker safety

What stakeholder group(s) can exercise legal power? Select one: Employees. Customers. Shareholders. All of these answers are correct

all of these answers are correct

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called: Select one: Corporate power. CEO power. Corporate citizenship. Corporate media

corporate citizenship

Philanthropic funding and public relations are two examples of corporate social responsibility: Select one: Drivers of the Corporate Social Responsiveness phase. Policy instruments of the Corporate Social Stewardship phase. Policy instruments of the Corporate Social Responsiveness phase. Drivers of the Charity Principle phase

policy instruments of corporate social stewardship phase

A society where economic power is concentrated in the hands of government officials and political authorities is called: Select one: A central state control system. A social democracy. A political control system. A military dictatorship

A central state control system

According to the United Nations, a feature of democracy is: Select one: Fair elections. An independent media. A government with power balanced among executive, legislative, and judicial branches. All of these answers are correct

All of these answers are correct

A stakeholder map is a useful tool because: Select one: It enables managers to quickly see how stakeholders feel about an issue. It can help managers evaluate possible outcomes regarding an issue. It helps managers discourage or dissolve stakeholder coalitions. Both of these answers are correct: It enables managers to quickly see how stakeholders feel about an issue, and It can help managers evaluate possible outcomes regarding an issue

Both of these answers are correct: It enables managers to quickly see how stakeholders feel about an issue, and It can help managers evaluate possible outcomes regarding an issue

A market stakeholder is exemplified by which of the following? Select one: Government agencies. Creditors. Activist groups. Nongovernmental organizations.

Creditors

The most significant motivator of corporate social reporting is: Select one: Government reporting requirements. Ethical concerns. Financial concerns. Employee demand

Ethical Concerns

Critics of globalization support the spread of American ideals and culture throughout the rest of the world. Select one: True False

False

Stakeholders stand out to managers when they exhibit: Select one: Integrity, power, and legitimacy. Power, legitimacy, and urgency. Integrity, loyalty, and power. Legitimacy, loyalty, and urgency

Power, legitimacy and urgency

An argument against corporate social responsibility is that it imposes unequal costs among competitors. Select one: True False

True

At the beginning of the 20th century, no country in the world had universal suffrage. Select one: True False

True

Cost-benefit analysis is often used to determine the costs of regulation. Select one: True False

True