BGSO Midterm

What are the two leading causes of climate change?

a. Answer i. Black carbon ii. Carbon dioxide

Nonmarket stakeholders include which of these groups?

a. Answer i. Business groups ii. Communities

Identify a nonmarket stakeholder in the discussion case Insuring Uber's App-On Gap.

a. The general public

Which of the following is not true about justice reasoning?

a. The reasoner is interested in the net value of benefits.

Ethical relativism argues that

"it depends." Ethical values are at least somewhat dependent on the context, cultural differences, etc.

Which of the following accurately define the term business?

- Answer: o A firm that provides a service for a profit. o Any organization that is engaged in making a product for a profit.

The term society is accurately defined by which of the following?

- Answer: o All of humankind o A collective social structure o Nations and communities

The general systems theory states that businesses must do what to survive?

- Answer: o Be willing to change and evolve o Form an interactive social system with society

Which of the following is true of stakeholders' interests using the stakeholder theory of a firm?

- Answer: All stakeholders' interests must be taken into account.

The argument in favor of the stakeholder theory of the firm that says that it is more effective as a corporate strategy is ....

- Answer: Instrumental

Since the Industrial Revolution, climate change caused by increasing concentrations of pollutants produced by human activity has had which effect?

A rise in the average surface temperature of the earth by about 1 degree Celsius.

In which ways do businesses interact with society?

Answer: i. Consumers buy products ii. Businesses employ workers iii. Businesses pay income taxes

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

Business is

Business today is arguably the most dominant institution in the world. The term business refers here to any organization that is engaged in making a product or providing a service for a profit.

Which term indicates that harm to society should be corrected?

Corporate social responsibility

The process of designing factories as an ecosystem is called ______.

Industrial ecology

The clean economy is most accurately defined as sectors of the economy that ______.

Make products with an environmental benefit.

The importance of a stakeholder to a firm is called stakeholder

Materiality

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

Salient

Moral development stages

Stage 1 (punishment avoidance, avoid harm, obedience to power) Childhood and Stage 2 (reward seeking, self-interest, own needs, reciprocity) adolescence, ego-centered reasoning; Stage 3 (social groups, friends, school, coworkers, family) early adulthood, adolescence, group-centered reasoning; stage 4 (society at large, customs, traditions, laws) adulthood, society-&law-centered reasoning; stage 5 (moral beliefs above and beyond specific social custom, human rights, social contract, broad constitutional principles) mature adulthood, principle-centered reasoning; stage 6 (universal principles, justice, fairness, universal human rights) mature adulthood, principle-centered reasoning.

Why do critics of the SOX Act believe the law is no longer effective?

The act has not totally eliminated fraudulent financial reports over the past 15 years.

phase of CSR w/ policy instrument

[corp. social stewardship, public relations][corp. social responsiveness, political lobbying.][corp/bus ethics, CEO leadership ethics][corp/global citizenship, sustainability audits/reports]

STAGES

[elementary, legal compliance][engaged, license to operate][innovative, bus. case][integrated, value proposition][transforming, market creation or social change]

Reason, nature of ethical problem, typical approach, attitude

[personal gain and selfish interest, selfish interest vs others' interests, egoistical mentality, "I want it"][competitive pressure on profits, firm's interest vs others' interests, bottom-line mentality, "we have to beat the others at all costs"][conflicts of interest, multiple obligations or loyalties, favoritism mentality, "help yourself and those closest to you"][cross-cultural contradictions, comp.'s interests vs diverse cultural traditions and values, ethnocentric mentality, "foreigners have a funny notion of what's right and wrong"]

Philosopher and moral value

[plato&aristotle, courage][st.thomas aquinas, faith][benjamin franklin, cleanness][robert solomon,honesty]

Researchers found that integrity-based ethics programs had what effects on employees?

a. i. They increased their sense of integrity ii. They enhanced their confidence in decision-making iii. They made it easier to deliver bad news to supervisors 1. (employees are more willing to seek ethical advice under a compliance-based program)

Public issues are considered broad in nature because they....

a. (reading) A public issue is any issue that is of mutual concern to an organization and one or more of its stakeholders. (Public issues are sometimes also called social issues or sociopolitical issues.) They are typically broad issues, often impacting many companies and groups, and of concern to a significant number of people. Public issues are often contentious-different groups may have different opinions about what should be done about them. They often, but not always, have public policy or legislative implications. b. Answer : are of concern to a significant number of people

The term stakeholder salience is correctly described by which statements?

a. (reading) Another variation of stakeholder analysis focuses on stakeholder salience. Some scholars have suggested that managers pay the most attention to stakeholders possessing greater salience. (Something is salient when it stands out from a background, is seen as important, or draws attention.). Stakeholders stand out to managers when they have power, legitimacy, and urgency. The more of these three attributes a stakeholder possesses, the greater the stakeholder's salience and the more likely that managers will notice and respond. b. Answer i. It refers to stakeholders standing out to managers when they have power, legitimacy, and urgency. ii. The greater the salience, the more the stakeholder will be noticed.

Failure to understand a firm's stakeholder concerns can result in...

a. (reading) Failure to understand stakeholder concerns and to respond appropriately will permit the performance-expectations gap to grow: the larger the gap, the greater the risk of stakeholder backlash or of missing a major business opportunity. Emerging public issues are both an opportunity and a risk. On one hand, correctly anticipating the emergence of a public issue can confer a competitive advantage. However, they also are a risk because issues that firms do not anticipate and plan for effectively can seriously hurt a company. b. Missed business opportunities

An example of a role set is when someone performs which actions?

a. (reading) Some individuals or groups may play multiple stakeholder roles. Some theorists use the term roles sets to refer to this phenomenon. b. Answer: i. Lives in the same community as their employer ii. Owns some company stock Works at a company

Which boundary-spanning department would most likely interface with union representatives?

a. (reading) boundary-spanning departments are departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society. Building positive and mutually beneficial relationships across organizational boundaries is a growing part of management's role. b. Shareholder Relations Investor Relations i. External and internal audit ii. SEC filings, compliance iii. Communications iv. Proxy election management c. Customers i. Customer service ii. Total quality management iii. Liability lawsuit defense iv. Recall management d. Community Relations, Corporate Citizenship (community) i. Corporate philanthropy ii. Partners with community-based organizations iii. Volunteerism, employee time contributions e. Corporate relations, corporate citizenship, corporate responsibility, external affairs (NGOs, suppliers) i. Environmental scanning ii. Stakeholder engagement iii. Social reporting and auditing f. Public relations, media relations, corporate communications (general public) i. Public relations ii. Brand management iii. Image advertising iv. Crisis management g. Environment, health and safety, sustainability (environment) i. EPA and state environmental compliance ii. Internal environmental auditing iii. Recycling, take-back h. Human Resources, Labor Relations (employees) i. Communications ii. Union negotiations iii. OSHA, EEOC, and labor law compliance iv. Diversity and family-work programs v. Health care i. Public Affairs, Governmental Affairs, Government Relations (Government) i. Public policy ii. Lobbying iii. Political action iv. Trade associations v. Advocacy ads vi. Grassroots mobilization j. Answer: Human Resources

During stakeholder analysis, what is the first question that must be answered once an issue is identified?

a. (reading) the first step of a stakeholder analysis is for managers of the focal organization to identify the issue at hand. Once the issue is determined, managers must ask four key questions: Who are the relevant stakeholders?, What are the interests of each stakeholder?, What is the power of each stakeholder?, How are coalitions likely to form? b. Who are the relevant stakeholders?

A customer posting a negative review of a purchased product is using which type of stakeholder power?

a. (reading) voting power means that the stakeholder has a legitimate right to cast a vote. Suppliers, customers, employees, and other stakeholders have economic power with the company. Suppliers, for example, can withhold supplies or refuse to fill orders if a company fails to meet its contractual promises. Governments exercise political power through legislation, regulations, or lawsuits. Stakeholders have legal power when they bring suit against a company for damages, based on harm caused by the firm. Stakeholders have informational power when they have access to valuable data, facts, or details and are able to bring their own information and perspectives to the attention of the public or key decision makers. b. Informational

The tragedy of the commons is best illustrated by which scenario?

a. A group of fishermen that each strive to maximize their own catch in their shared fishing area.

Why would businesses seek to discourage government regulation through acts of corporate social responsibility?

a. Absence of regulation provides businesses with increased freedom in their decision making.

Sustainability leaders found that they are most effective when they involve employees from which part of the organization?

a. All parts of an organization (HR, finance, manufacturing)

Market stakeholder relationships are based on

a. An economic transaction

Where can a company search for reliable stakeholder issues?

a. Answer i. 10-K filings ii. Websites iii. Mission statements

The widespread adoption of clean cookstoves would provide which benefits, according to the case Clean Cooking?

a. Answer i. A decrease in soot emissions ii. Reduced health risks

A firm practicing industrial ecology is best exemplified by which scenarios?

a. Answer i. A power company selling excess steam to a nearby pharmaceutical plant ii. An oil refinery removing sulfur and selling it to a sulfuric acid plant

Altruism is accurately characterized by which statements?

a. Answer i. Acting for the benefit of others ii. Sacrificing self-interest

The most critical characteristics of sustainability management are _____.

a. Answer i. Alignment of rewards and incentives ii. Top management commitment iii. Employee engagement

A business conflict of interest is exemplified by which scenarios?

a. Answer i. An agent receives a substantial fee for buying parts from a certain company. ii. An agent buy parts from a high-cost firm that donated a valuable gift to the agent. iii. An agent buys parts from the most cost-effective firm that gave money to the agent.

Which of the following are included in the U.S. Corp Sentencing Guidelines?

a. Answer i. Assigning a high-level, risk-free officer for compliance responsibility. ii. Enforcing standards through discipline, including response and prevention. iii. Establishing and training ethical standards to reduce criminal conduct.

Companies that are guided by enlightened self-interest tend to have what kind of interactions with their stakeholders?

a. Answer i. Being more open to stakeholder expectations ii. Cooperating with legislators iii. Working closely with government regulators

Command-and-control regulations include which environmental standards?

a. Answer i. Best available technology ii. Emission standards iii. Environmental quality standards

To balance the earth's carrying capacity with human demands, which strategies are recommended?

a. Answer i. Choosing less harmful products. ii. Technological innovation to produce food and energy. iii. Charging a premium for environmentally harmful goods.

The earth's most biodiverse regions, the rain forests, are currently threatened by which human activities?

a. Answer i. Commercial logging ii. Cattle ranching iii. Overpopulation

In the US, solid waste is disposed of in which ways?

a. Answer i. Composted ii. Incinerated iii. Recycled

The properties of competitive intelligence include

a. Answer i. Continuous ii. External information iii. Systematic

The EPA manages which types of environmental regulation?

a. Answer i. Cross-media ii. Water quality iii. Air quality

Identify actions a company can take to become an ecologically sustainable organization (ESO).

a. Answer i. Design long-lasting products ii. Make and transport goods efficiently iii. Minimize the use of energy

Identify the disadvantages of utility ethics.

a. Answer i. Difficulty in measuring costs ii. The means to reach the end are not always considered.

The clean economy is best exemplified by which industries?

a. Answer i. Energy-efficient construction ii. Electric vehicles iii. Alternative energy

Sustainable development is correctly characterized by which statements?

a. Answer i. Ensuring a better quality of life for all, now and in the future. ii. Meeting the needs of the present without compromising the needs of the future.

Environmental codes of conduct for specific industries include the ______.

a. Answer i. Equator principles ii. Marine stewardship council iii. Forest stewardship council 1. Leadership in Energy and Environmental Design (LEED).

Ocean acidity is caused by which factors?

a. Answer i. Excess carbon dioxide absorbed as carbonic acid ii. A concentrations of greenhouse gases in the atmosphere

How might imposing a carbon tax on harmful products benefit the environment?

a. Answer i. Firms could be incentivized to switch to more efficient production methods. ii. Individuals would probably purchase fewer harmful goods or services.

Utilitarian reasoning is characterized by which statements?

a. Answer i. Greatest good for the most people ii. Benefits outweigh costs iii. Cost-benefit analysis

The term stakeholder is correctly described by which of the following?

a. Answer i. Groups that affect an organization ii. Derives from having a claim on a business enterprise iii. Groups that are affected by an organization

What are the specific concerns regarding the financial costs to firms who implement corporate social responsibility (CSR)?

a. Answer i. Hidden costs are often passed on to stakeholders. ii. Unequal costs among competitors often develop.

The Montreal Protocol is accurately described by which statements?

a. Answer i. If everyone participates, the ozone layer should recover by 2050. ii. Member nations have until 2030 to phase out HCFCs. iii. An international agreement that seeks to reduce chlorofluorocarbon (CFC) emissions.

Businesses have taken steps to reduce their impact on climate change, such as _______.

a. Answer i. Improving fuel efficiency ii. Investing in new efficient technology

The Convention on Climate Change is accurately described by which statements?

a. Answer i. It aims to control the levels of greenhouse gases in the atmosphere. ii. It is an international treaty that seeks to reduce global warming. 1. (the Convention on Climate Change is hosted by the UN not the US) 2. It was negotiated in 1992.

Which statements are true regarding the primary professional association that supports ethical initiatives for executives?

a. Answer i. It changed their name to the Ethics and Compliance Officer Association 1. (the original name of the executive ethics non-profit was the Ethics Officer Association and was changed to the Ethics and Compliance Officer Association to reflect the increase in compliance-based leadership. ii. It represents over fifty countries. iii. The membership doubled from 2000 to 2004.

An ecologically sustainable organization (ESO) is accurately described by which statements?

a. Answer i. It does not alter the carrying capacity of the earth. ii. It operates under the principle of sustainable development.

Select all of the statements that are true about the SOX act.

a. Answer i. It enforces high ethical standards in business. ii. It makes executives responsible for the accuracy of financial reports.

Bribery is accurately described by which statements?

a. Answer i. It is a questionable or unjust payment that facilitates a transaction. ii. It is a payment often made to a government official.

Sustainability is accurately described by which statements?

a. Answer i. It is the process of preserving natural resources for future generations. ii. It is a major challenge for businesses.

The concept of a public issue is characterized by which statements?

a. Answer i. It often has public policy or legislative implications. ii. It is sometimes called a social or sociopolitical issue. iii. It is often highly contentious

The EPA is accurately described by which statements?

a. Answer i. It was created by the National Environmental Policy Act around 1970. ii. It is the main environmental regulatory agency in the US.

When determining a fair distribution, which human factors are taken into consideration?

a. Answer i. Needs ii. Abilities iii. Efforts

The major threats to marine ecosystems include ________.

a. Answer i. Ocean acidity ii. Coral reef destruction

Identify the purposes of corporate ethics reporting mechanisms.

a. Answer i. Offering a way for employees to report ethical violations. ii. Providing clarifications regarding expected ethical behavior. iii. Providing general information about corporate topics.

The general systems theory is best described by which statement(s)?

a. Answer i. Plants interacting with soil, light, oxygen, and moisture ii. Organisms and their environment working together iii. Organisms interacting with their external environment

The three stages of corporate environmental responsibility in their correct order.

a. Answer i. Pollution prevention ii. Product stewardship iii. Clean technology

How can a business that is closing, offer a fair response to their stakeholders?

a. Answer i. Provide training for workers ii. Offer pay-out bonuses to managers. iii. Contribute funds to the local community

Identify the effects of acid rain.

a. Answer i. Reduced crop yields ii. Damage to lakes and rivers iii. Degraded forests

How does having a good reputation affect a company's ability to recruit employees?

a. Answer i. Reduced recruiting costs ii. Greater employee retention

The U.S. Foreign Corrupt Practice Act (FPCA) combats bribery by

a. Answer i. Requiring full disclosure of company transactions ii. Assessing civil penalties iii. Assessing criminal penalties

Competitive intelligence can be used to create business strategies for

a. Answer i. Research and development ii. Financial investing iii. Marketing

Identify the positive effects of economic development across the world.

a. Answer i. Rising incomes ii. Reduction in poverty

A compliance-based program is characterized by which statements?

a. Answer i. Seeks to avoid legal sanctions ii. Stresses punishment as a deterrent

A market-based cap-and-trade system is accurately described by which statements?

a. Answer i. The cap represents the legally permitted emission level. ii. A company can sell tradable permits for the amount they pollute under the cap.

CERLCA (the Superfund law) is accurately described which statements?

a. Answer i. The law required the original polluters that could be identified to pay for the cleanup. ii. The law covered costs of cleanup for unidentified original polluters. iii. It introduced a tax on petroleum and chemical companies.

The European Academy of Business in Society (EABIS) identified the most effective global leadership skills as

a. Answer i. The skill to engage with external stakeholders using connectedness ii. The ability to lead in the face of complexity iii. Understanding the changing business contexts

Sustainable development using technology cooperation is accurately described by which statements?

a. Answer i. The transfer of environmental technologies to developing countries. ii. Long-term partnerships between firms in developed and developing nations.

When a business applies resources to social programs, some argue that they risk lowering which business indicators?

a. Answer i. Their economic efficiency ii. Company profits

Which of the following are reasons some argue that managers are the stakeholders of a firm?

a. Answer i. They benefit from the company ii. They are impacted by a firm's decisions iii. They are employed by the firm

Which of the following are reasons some argue that managers are not the stakeholders of a firm?

a. Answer i. They promote stakeholder interests, not their own. ii. They act primarily for the company.

Why might an organization wish to engage in an environmental partnership?

a. Answer i. To draw on the unique strengths of each partner ii. To conserve resources iii. To improve environmental quality

Life-cycle analysis is accurately described by which statements?

a. Answer i. Tracking the environmental impact of a product from cradle to grave. ii. A method used to reduce a product's ecological footprint.

Explain the primary difference between internal and external stakeholders of a firm.

a. Answer: internal stakeholders directly contribute their effort and skill inside the firm.

Within stakeholder analysis, the focal organization is the...

a. Answer: one from whose perspective the analysis is conducted

A few theorists have called government a market stakeholder of business because...

a. Answer: some businesses sell directly to the government and receive payment for goods and services rendered.

A for-profit business model that blends social and financial goals for the purpose of solving social problems is called a(n)

a. B corporation

Identify the difference(s) between a B corporation and a benefit corporation.

a. B corporations are certified entities, but benefit corporations are incorporated. b. B corporations must achieve a minimum performance score to retain their status, but benefit corporations self-report their progress.

What is the current business trend in managing social, economic, and legal responsibilities?

a. Balancing the need to meet all social, economic and legal challenges

The Consumer Products Forum agreed to a goal of "zero net deforestation" by 2020 using which tactics?

a. Boycotting raw material purchases from companies that cause forest destruction.

A firm that distinguishes their reputation based on exemplary sustainability practices is leveraging which competitive advantage?

a. Brand differentiation

When individuals or groups play multiple stakeholder roles, this is called a(n)

a. Business role set

Corporate stakeholder engagement is defined as the process of ongoing relationships between

a. Businesses and government; businesses and customers

The practice of a firm producing net zero emissions of greenhouse gases is called ______.

a. Carbon neutrality

The maximum population that the Earth's ecosystem can support with current technology is called ________.

a. Carrying capacity

Why is ozone critical to life on Earth?

a. In the stratosphere, ozone absorbs dangerous ultraviolet light.

The characteristics of various business forces against the corresponding business forces.

a. Changing societal expectations i. Being good corporate citizens b. Globalization i. Companies doing business in many countries c. Growing emphasis on ethics i. Global human rights protection d. Evolving government regulations i. Dynamic regulatory controls e. Dynamic natural environment i. Sustainability f. New technology and innovation i. Fast-paced change

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

a. Compliance and integrity

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

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

When a firm faces criminal charges for ethics violations in the US, which rules are used to compute culpability?

a. Corporate Sentencing Guidelines

How does corporate social responsibility (CSR) differ from corporate citizenship?

a. Corporate citizenship means taking social actions, and CSR obligates firms to be socially responsible.

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

a. Corporate power.

The act of bribery is an economic force that

a. Corrupts the financial exchange

Both large and small businesses have adopted sustainable practices to what advantage?

a. Cost savings from operational efficiency, opportunity to serve emerging economies, reduction of regulatory risk

Match the strategic radar screens with their characteristics.

a. Customer i. Includes demographic factors b. Competitor i. Includes information on the number and strength of rivals c. Economic i. Includes information about costs, prices, and international trade d. Technological i. Provides faster access to information through handheld electronic devices e. Social i. Includes cultural patterns, values, beliefs, trends, and conflicts in society f. Political i. Includes the structure, processes, and actions of all levels of government g. Legal i. Includes patents, copyrights, trademarks, and considerations of intellectual property h. Geophysical i. Relates to an organization's dependency and impact on natural resources.

Ethical challenges for information technology employees include:

a. Data privacy and copyright protection

The primary goals of stakeholder dialogue include

a. Defining a common definition of the problem Identifying solutions for mutual gain

Corporation's boundary-spanning departments with the groups they interact with.

a. Departments of investor relations i. Shareholders b. Departments of human resources i. Employees

An example of a firm taking action that abuses the iron law of responsibility is ________.

a. Discouraging union membership.

The five stages of global corporate citizenship in their correct order.

a. Elementary b. Engaged c. Innovative d. Integrated e. Transforming

Which specific corporate ethics reporting mechanism allows employees to report ethical concerns anonymously?

a. Employee helpline

The concept of providing stakeholders value that results in a firm's long run self-interest is called ____.

a. Enlightened self-interest

In the context of management systems, match the terms with their related goals.

a. Environmental analysis i. The goal is to develop a company strategy to minimize the threat of external issues. b. Environmental intelligence i. The goal is to help an organization avoid crisis and to spot opportunities, if done well.

The effort to prevent inequitable exposure to environmental risk is called ______.

a. Environmental partnership

Business collaborations that seek to improve environmental conditions are called ______.

a. Environmental partnerships

The most significant motivator of corporate social reporting is:

a. Ethical concerns

Which of the ethical safeguards tends to be the most costly and time-consuming?

a. Ethics training

True or false: All stakeholders listed in an analysis will be relevant in every management situation.

a. False because not all stakeholders listed will be relevant in every management situation.

Integrated reporting provides the firm's results for which types of company performance?

a. Financial, social, environmental

The primary reason that tradable permit programs have been successful is because ______.

a. Firms can comply with regulations using the most cost-effective method.

When a firm correctly anticipates and addresses a public issue, the firm often...

a. Gains a competitive advantage

Type of change matched to the six forces of business

a. Globalization i. Global b. Evolving government regulations i. Political c. Dynamic natural environment i. Ecological d. New technology and innovation i. Technological e. Growing emphasis on ethics i. Ethical f. Changing societal expectations i. Social

Match the drivers of stakeholder engagement with the correct company oriented description.

a. Goal i. Improves corporate reputation b. Motivation i. Needs stakeholder expertise or resources c. Organizational capacity i. Has support from company leaders and adequate funding

Match the issue management process step with its correct description on the right

a. Identify issue i. Create awareness by tracking media, opinions, and legislation b. Analyze issue i. Understand how an issue is likely to evolve c. Generate options i. Identify and evaluate alternative responses to issues d. Take action i. Design and implement a plan to address issues e. Evaluate results

According to systems theory, business, society, and the natural environment must interact in what way to survive?

a. In relationship to each other

Match the stage of the business-stakeholder relationship with its correct description.

a. Inactive i. Company ignores stakeholder concerns b. Reactive i. Company takes action only when forced c. Proactive i. Firms scan the external environment to anticipate stakeholder concerns. d. Interactive i. Firms actively engage with stakeholders with trust, respect, and openness

According to the Foundation for Public Affairs, the majority of corporate budgets used for remediation of public issue since the mid-2000's has

a. Increased slightly or stayed the same

Population growth is predicted to be the slowest for countries in which stage of economic development?

a. Industrialized i. (developing nations are expected to have the highest population growth)

When an organization builds ethical safeguards into its daily routines, this is called

a. Institutionalizing ethics

The argument in favor of the stakeholder theory of the firm that says that it is more effective as a corporate strategy is

a. Instrumental

The main drawback to utilitarian reasoning is that:

a. It is difficulty to accurately measure both costs and benefits.

Which type of business is more likely to believe that a culture of ethics encourages workers to speak up?

a. Large and more mature businesses

A company called Trends plans to close a manufacturing plant in Community A and relocate it to Community B, where labor costs are lower. Which stakeholders are likely to oppose this plan?

a. Local government in Community A b. Employees in Community A

On a stakeholder map, a stakeholder appearing in the bottom right quadrant has

a. Low power, in support of the issue

In 2017, the Ethics and Compliance Initiative reported that the most unethical practice at work was

a. Lying to employees and external stakeholders b. (abusive behavior 2nd, internet abuse 3rd, conflicts of interest 4th)

Why are the values held by managers especially important in the workplace?

a. Managers service as organizational role models.

Why is addressing economic performance no longer enough for business?

a. Many investors link economic performance to social issues.

When undertaking social initiatives, a company:

a. May sacrifice short-term profits.

Acid rain is caused by fossil-fuel by-products combined with what?

a. Natural water vapor

In addition to saying it's the right thing to do, this argument for the stakeholder theory of the firm claims that all stakeholders contribute value to the organization.

a. Normative

Which element of stakeholder salience refers to the degree of broad societal acceptance.

a. Notes: stakeholder urgency refers to the level of demand for immediate action. A stakeholder coalition is a group of stakeholders with a common purpose. Stakeholder power indicates the degree of influence over decisions. b. Answer: legitimacy

According to the Global Footprint Network, human society is using resources faster and creating more waste at the unstainable rate of ______________.

a. One and a half times the capacity

Environmental analysis refers to scanning for public issues

a. Outside the organization

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

a. Paternalistic programs

One factor in determining the moral intensity of an ethical issue is how close the decision maker feels to the people affected by the decision, a factor that is known as

a. Proximity

A major trend in corporate social reporting is _______.

a. Publishing a single integrated report that combines legally required financial data with social and environmental results.

Make a concerned effort to balance the needs of all stakeholders.

a. Rapid industrialization

Which of the following are sources from which ethical principles that guide right and wrong conduct are derived?

a. Religious beliefs, role models, family institution b. (not natural environments)

The correct definition of ethical egoist is a manager or employee who always puts

a. Self-interests first

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

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

What was the major public issue that Coca-Cola started addressing in 2018?

a. Single-use plastic bottle waste

What is the primary purpose for government requiring an independent certification of B corporations?

a. So the firm proves they are socially responsible, not just making a claim.

What term is used to define the organizations created by social entrepreneurs?

a. Social ventures

A firm called Star performs a stakeholder analysis of their supplier Deliveries, their competitor ShineOn, and their creditor LoanMe. Which firm is the focal organization?

a. Star because LoanMe, ShineOn, and Deliveries are stakeholders, not a focal organization.

Good corporate citizens:

a. 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

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

a. Study the results and make necessary adjustments.

A fruit grower has received many complaints about its heavy use of pesticides. Which stakeholders would likely form a coalition to support the grower?

a. Suppliers who provide pesticides b. Competitors who use similar pesticides

What advantage does competitive intelligence offer managers?

a. The ability to make informed decisions

The material sustainability issues of a firm are best described by which statements?

a. These are sustainability issues that are particularly relevant to a business.

The iron law of responsibility is defined as _______.

a. Those who do not use power in a socially responsible way will tend to lose power.

What is the primary motivation for companies to develop employee ethics programs?

a. To comply with laws and regulations

What is the purpose of the firm under the shareholder theory of the firm

a. To maximize its long-term market value

What is the primary purpose of the RepTrak model?

a. To quantify how CSR is used across various industries and nations.

Which U.S. law regulates hazardous materials from cradle to grave?

a. Toxic Substances Act

The belief that when people freely use shared resources and that their freedom will lead to resource destruction is called ___________.

a. Tragedy of the commons

True or false: The purpose of environmental analysis is for a firm to identify, monitor, and evaluate public issues that may require action from the firm.

a. True b. Environmental analysis provides a framework for companies to scan, watch, and analyze public issues that they can proactively respond to.

In the United States, when did the idea of corporate social responsibility first begin?

a. Twentieth century

The role of chief sustainability officer is described by which statement(s)

a. Typically reports to CEO, supervises staff across functional areas, req. strong interpersonal skills

According to Nestle's Stakeholder Materiality Matrix in Figure 2.3, the priorities of issues for stakeholders are shown

a. Vertically from the lowest priority on the bottom to the highest priority on the top

The type of ethical reasoning that theorizes that having good moral values direct an individual to good behavior is called

a. Virtue ethics

product stewardship focuses on

all environmental impacts associated with the product's life cycle

right vs wrogn

choosing to act in an unethical or ethical manner. the unethical choice is clearly unethical. GM faulty ignition switches

air quality includes

clean air act, clean air act amendments

brand differentiation

cleaning products with no harmful ingredients

cause marketing is

commonplace--this is when a company donates to charity after a product is purchased

When managers are flexible, creative, and willing to learn from mistakes, they are addressing which aspect of emerging public issues.

complexity

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of:

conflict of interest

reasons that frequently trigger ethical problems in business.

conflicts of interest, personal gain and selfish interest

Select all of the external stakeholders.

customers, competitors

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

descriptive argument

When a supplier refuses to fill an order, it is using which type of stakeholder power?

economic a. Because a supplier not filling an order does not refer to taking a legal action (legal), shareholders have voting power, not suppliers (voting), governments, not suppliers, have political power (political).

technological innovation

electronic sensors to reduce water usage

land, species, and habitat inclue

endangered species act, hazardous materials transport act

_____ principles are guides to moral behavior.

ethical

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/F: 4 out of 5 Millennials believe that business should completely avoid social involvement, according to a 2014 survey.

false

True or false: In all parts of the world, humans are consuming water at a slower pace than it is being replenished by nature.

false

strategic planning

forecasting external influences and trends that lead to opportunities for the firm

law

formal written rules denoting right and wrong conduct

The drivers of stakeholder engagement are:

goals, motivation, and operational capacity

Ethical universalism argues that

humans are basically the same and should adhere to similar ethical rules. What is right in one country, is right in another country.

Environmental Analysis

i. A method managers use to gather information about external issues and trends

Identify the benefits of stakeholder engagement.

i. Access to information in stakeholder networks ii. Raising awareness of emerging issues

Companies that are guided by enlightened self-interest tend to have what kind of interactions with their stakeholders?

i. B corporations are certified entities, but benefit corporations are incorporated. ii. B corporations must achieve a minimum performance score to retain their status, but benefit corporations self-report their progress.

How can management choose amongst different ethical approaches that do not lead to the same conclusion?

i. Consider the organization's culture and ethical climate. ii. Assign priorities to each ethical approach.

The phases of corporate social responsibility in chronological order.

i. Corporate social stewardship ii. Corporate social responsiveness iii. Corporate/business ethics iv. Corporate/global citizenship

The scope of the U.S. Foreign Corrupt Practice Act (FPCA) covers

i. Countries that have U.S. affiliates ii. Across a range of industries

A recent BSR survey found that the goal of most corporate citizenship managers is to integrate corporate social responsibility with a company's __________.

i. Culture ii. Values iii. Operations

According to the eight radar screens, challenges to acquiring environmental intelligence can include

i. Customer environment, competitor environment, economic environment, technological environment, social environment, political environment, legal environment, geophysical environment b. Answer i. Organizational reporting relationships ii. Cultural traditions in the workplace

Why is it difficult to be sure if a business made the most ethical decision?

i. Different sources of information may be used. ii. The priority of human rights may be ranked differently. iii. Different values may be applied to make the decision.

The negative effect(s) of corporate power can include _______.

i. Employment reduction ii. Price-fixing iii. Political manipulation

A social audit is a systematic evaluation of an organization's performance related to which business goal(s)?

i. Environmental ii. Ethical iii. Social

Some economic impacts of bribery include

i. Funds for roads and hospitals siphoning off to pay corrupt officials ii. Companies indicted for bribery typically paying fines and legal fees

Visionary CEOs clearly see citizenship as an opportunity to create which benefits for their organizations?

i. Gain a competitive advantage ii. Create value for the firm

The U.K. Bribery Act prohibits bribery of which individuals?

i. Government officials ii. Private executives

The positive effect(s) of corporate power can include _______.

i. Helpful products ii. Economic opportunities iii. Useful technologies

Describe some negative ecological impacts of the agricultural "green revolution."

i. Higher rates of waste ii. Contamination caused by pesticides

The benefit(s) of publishing social audit performance results include(s)________.

i. Identifying stakeholder needs ii. Improving the firm's overall performance iii. Helping businesses gauge social progress

The type of ethics policy that provides ethical rules for employees to follow is called a(n)

i. Instrumental policy

Identify ways that the U.K. Bribery Act is stricter than the U.S. Foreign Corrupt Practices Act (FCPA).

i. It contains a strict liability clause for failure to prevent bribery. ii. There is no exemption for "facilitating payments". iii. It does not require evidence of the intent to corrupt.

The search for competitive intelligence sometimes causes which boundaries to be crossed?

i. Legal ii. Ethical

Identify the most basic human rights.

i. Life, safety, property ii. Freedom, free speech iii. Due process, be informed

Which statement(s) below are accurate regarding B corporation certification?

i. Performance is evaluated by the organization's impact on the community, employees, consumers, and the environment. ii. They must meet independent, social and environmental performance standards. 1. To be certified as a B corporation, the organization must be assessed by the nonprofit B labs, not C labs.

What are the major global issues created by fresh water shortages throughout the world?

i. Regional conflict over water rights. ii. Decline in local economies.

Companies progress through the stages of a business-stakeholder relationship in what way?

i. Remaining in one stage ii. Backward in the sequence iii. One stage to the next, in order

Researchers have consistently found that most managers typically rely on criteria associated with reasoning at

i. Stage 3 early adulthood ii. Stage 4 adulthood

Major corporations influence the community in what way(s)?

i. Tax base ii. Job creation iii. Standard of living

The Global Reporting Initiative (GRI) Guidelines are characterized by which of these statements?

i. The Guidelines provide common metrics for firms to compare their performance with other firms. ii. Many global business representatives work together to develop the Guidelines.

Environmental intelligence

i. The acquisition of information gained from analyzing the multiple environments affecting organizations.

Global population growth impacts the environment in what ways?

i. The consumption of natural resources is increased. ii. Pollution is increased.

What critical steps must be taken to advance sustainable development?

i. There must be a fair and equitable distribution of benefits gained by sustainable practices. ii. Economic development must conserve natural resources. iii. The nature of consumption must change to favor quality over quantity of goods owned.

What role does social media play in stakeholder engagement?

i. Tracks customer suggestions ii. Identifies problems iii. Shares information

A new public issue often indicates a performance-expectations gap between what stakeholders expect and

i. What a company is currently doing ii. What a company wants to do

The annual EPA report Toxics Release Inventory (TRI) is an example of which environmental policy type?

info disclosure

ethics

informal definition of right and wrong behavior

clean technology

innovating technology that supports sustainability

iso 140000 was developed by

iso

Corps have duties that go beyond

lawful execution of their economic function

pollution prevention does what?

minimizing or eliminating waste before it is created

Which of the following is an example of a business?

o A woman permitted to sell homemade tortillas by the roadside. o A major oil refinery o An organization that provides tax assistance and financial services (all of these are the answer)

Where do our ethical frameworks come from?

o Formal "rules" § Laws § Regulations o Informal "norms" § Religion § Philosophy § Culture § Background and experiences

Descriptive Argument

o The descriptive argument says the stakeholder view is simply a more realistic description of how companies really work. Managers have to pay keen attention, of course, to their quarterly and annual financial performance. In order to produce consistent results, managers have to be concerned with producing high-quality and innovative products and services for their customers, attracting and retaining talented employees, and complying with a plethora of complex government regulations. As a practical matter, managers direct their energies toward all stakeholders, not just owners.

Instrumental Argument

o The instrumental argument says that stakeholder management is more effective as a corporate strategy. A wide range of studies have shown that companies that behave responsibly toward multiple stakeholder groups perform better financially, over the long run, than those that do not. These findings make sense, because good relationships with stakeholders are themselves a source of value for the firm. Attention to stakeholders' rights and concerns can help produce motivated employees, satisfied customers, committed suppliers, and supportive communities, all good for the company's bottom line.

Normative Argument

o The normative argument says that stakeholder management is simply the right thing to do. Corporations have great power and control vast resources; these privileges carry with a duty toward all those affected by a corporation's actions. Moreover, all stakeholders, not just owners, contribute something of value to the corporation. Any individual or group who makes a contribution/risk, has a moral right to some claim on the corporation's rewards.

cross-media pollution inclues

oil pollution act, pesticide control act

A stakeholder's ability to use resources to make an event happen is measured by the amount and type of their

power

cost savings does what

reducing pollution and waste

An online shopping firm performs a stakeholder analysis to guide the firm in updating its website technology. Which stakeholder would be irrelevant?

retailers

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

role sets

The core mission of a social entrepreneur is to create and sustain ______.

social value

Owners of an organization are called...

stockholders & stakeholders

When environmentally proactive companies seek out imaginative, innovative new methods for reducing pollution and increasing efficiency, they are adopting which strategy?

tech innovation

the CERES Principles and Roadmap was developed by

the coalition for environmental responsible economies

business charter for sustainable development was developed by

the international chamber of commerce

right vs right

the moral dilemmas of mgmt are clashes among different conflicting moralities. Not one "right" solution. competing virtues of honesty, fairness, respect, objectivity, responsibility

According to utilitarian reasoning, an action is ethically preferred when its benefits outweigh its costs.

true

Companies are learning that it is important to take a strategic approach to the management of public issues, both domestically and globally.

true

Ethical ideas are present in all societies, all organizations, and all individual persons.

true

Personal values and moral character play key roles in improving a company's ethical performance.

true

Stakeholder materiality is a method companies use to prioritize the relevance of the stakeholders and their issues.

true

T/F : The consequences of foreign bribery deny U.S. companies the ability to compete in a fair and transparent marketplace.

true

T/F: According to the Global Reporting Initiative (GRI), when companies consider sustainability, they must consider economic, environmental, social, and governance areas of their performance and impacts.

true

T/F: As businesses have become more committed to citizenship, specialized consultancies and professional associations for managers with responsibility in this area have emerged.

true

T/F: Ethical dilemmas are highly complex and go beyond the language of the law.

true

T/F: Stakeholder engagement should include both internal, as well as external, stakeholders and emphasize issues that directly affect corporate strategy.

true

T/F: Supporters of market-based mechanisms to protect the environment believe that the market provides better control than mandated government regulations.

true

T/F: the most sustainable organizations tie the compensation of their managers, including line managers, to environmental achievement and take steps to recognize these achievements publicly.

true

True or false: Stakeholder expectations are a mixture of people's opinions, attitudes, and beliefs about what constitutes reasonable business behavior.

true

reduction of regulatory and liability

voluntary reporting of emissions ahead of regulation

water quality includes

water pollution control act, safe drinking water act

greenhouse gas protocol was developed by

world resource institute & world business council for sustainable development