Bus and Soc: Final
An amount of money for a project added into an appropriations bill by any member of the Senate or House of Representatives.
earmark
Costs of production borne not by the enterprise that causes them but by society.
externalities
Technology changes _________________________ human beliefs and institutions.
faster than
In the chapter 3 lecture, Mr. Lilly breaks down the consequences of business power into ______ categories.
four
According to Michael Posner, President of "Human Rights First," in many countries, ________________ have abdicated their responsibility to protect workers in the workplace.
governments
The technique of generating an expression of public, or "grassroots" support for the position of a company, industry, or any interest.
grassroots lobbying
During the 40 years of the Demographic Transition, a country's population will
grow rapidly.
Treaties between nations are
hard law.
Money raised and spent under the strict contribution limits and rules in federal election law.
hard money
The Kimberley Process Certification Scheme
has as its goal to stop the flow of so-called "blood" diamonds.
A message of express advocacy to voters that is not coordinated with a candidate.
independent expendature
The Legal Environment: According to your text, the legal environment (in which business operates) consists of
legislation, regulation, and litigation.
In 2009, sovereign wealth funds were the source of _______________ of global foreign direct investment.
less than a hundredth of a percent
According to Edwin M. Epstein, corporate political influence reached its nadir during the New Deal. This means that corporate political influence in the United States reached a ______ point during the 1930s.
low
In the late 1860s and early 1870s, Rockefeller was a ___________________ producer of refined petroleum products.
low-cost, high-volume
In a pre-industrial economy, having lots of children
makes good economic sense.
Soon after 1865 James B. Duke's father began ____________________________ named Pro Bono Publico.
making a brand of chewing tobacco
Exporting means
making your products in your home country, then shipping some of the products to overseas markets and selling them there.
On pages 133-134 of your text, the authors provide a list of eight principles regarding corporation social responsibility about which, they claim, there is widespread agreement. Mr. Lilly agrees with the authors that there is widespread agreement regarding
numbers 1, 2, 3, 4, and 6, but takes issue with their claims with regard to numbers 5, 7, and 8.
According to your text, in the period following the American Civil War, the state legislatures of Ohio, Texas, and Pennsylvania were dominated by
oil companies.
John Jacob Astor learned how to appraise and handle animal skins from a fur trader
on a sailing ship en route from London to America.
A political committee carrying a company's name formed to make campaign contributions. The money it gives to candidates comes from individual employees, not from the corporate treasury.
political action committee
The ____________ movement was a farmers' protest movement that began in the 1870s. Its members blamed social problems on industry and sought radical reforms such as government ownership of railroads.
populist
(The proposition that) managers can risk predictable but unwilled harms to people after weighing five factors: type of good and evil, probability, urgency, intensity of influence, and alternatives.
principle of proportionality
A belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.
service principle
Corporations that contribute to charities do so in many ways, including (Check all that apply):
services volunteered employee time cash products use of facilities
A philosophy of the late 1800s and early 1900s that used evolution to explain the dynamics of human society and institutions. The idea of "survival of the fittest" in the social realm implied that rich people and dominant companies were morally superior.
social darwinism
Statements of philosophy, policy, and principle found in nonbinding international agreements that, over time, gain legitimacy as guidelines for interpreting the "hard law" in legally binding agreements.
soft law
Statements of philosophy, policy, and principle found in nonbinding international conventions that, over time, gain legitimacy as guidelines for interpreting the hard law in legally binding agreements.
soft law
The two top recipients of foreign direct investment (FDI) dollars from transnational corporations in 2009 were
the United States and China.
The most famous consequentialist ethical principle in the modern world is
the Utilitarian Ethic.
According to economic theory, what should a government do when faced with an artificial monopoly? (1 point)
the government needs to make it illegal to be a monopolist or use your monopoly power to dictate terms to your customer, suppliers, or other business partners.
Which element(s) of the 1974 FECA Amendments were struck down as unconstitutional by the U.S. Supreme Court in 1976? (Check all that apply.)
the limits on campaign expenditures by candidates and their reelection committees.
According to your text, in the universe of business models, there are two distinct types as they relate to corporate responsibility,
the progressive model and the traditional model.
Among the risks that transnational companies face when they expand in a foreign country are: (Check all that apply)
the risk that demand for their products in the host country will not be as high as they expected. the risk that that the country will increase the tax it charges for repatriating profits back to the home office. the risk the country's government will expropriate its factories or other foreign facilities.
A company's culture is best described as - the shared assumptions, both spoken and unspoken, that animate a company's employees. - the written and/or oral history of the company. - the legacy of a company. - the artifacts left behind by a company.
the shared assumptions, both spoken and unspoken, that animate a company's employees.
(The theory that) business actions (should be) judged by the general ethical standards of society, not by a special set of more permissive standards.
theory of moral unity
How long did PETA have to exert pressure on Safeway to get them to capitulate to their demands?
three months
Under the _____________________, it would be ethically acceptable to impose the death penalty for shoplifting if the sum of the benefits to society were greater than the sum of the costs to society, where the cost to those put to death is included in the calculation.
utilitarian ethic
John D. Rockefeller's father, William Rockefeller,
was an itinerant quack doctor who sold worthless elixirs.
An office in Washington, D.C. set up by a corporation and staffed with experts advocating the firm's point of view to lawmakers and regulators.
washington office
In 1904, the United States Steel Corporation became the first company in human history with more than _____________ in assets.
$1 billion
According to the report "A Case Study of Unilever in Indonesia," of the $633 million of value created by Unilever's presence and activities in Indonesia in the year 2003, _______________ went to Unilever shareholders as profit. The remainder went to other groups.
$212 million, or 33%
So far, the Bill and Melinda Gates Foundation has given more than ____________ to nonprofit and charitable causes.
$25 billion
What did Mr. Lilly call this model in the chapter 1 lecture? - the Dominance Model - the Stakeholder Model - the Market Capitalism Model - The Conflict Model of Business, Government, and Society - the Wheel of Business, Government, and Society -None of these.
- The Conflict Model of Business, Government, and Society
Which of these primary stakeholder groups has the most limited (weakest) ability to influence the policies and actions of a business? - communities - employees - stockholders - customers -government
- communities
Among the values John D. Rockefeller emphasized in managing the company he founded was/were (check all that apply): - cost control - suppression of competitiors - centralized organization - efficiency
- cost control - suppression of competitiors - centralized organization - efficiency
Through his marketing efforts, James B. Duke was able to increase U.S. consumption of cigarettes from 2.9 billion per year in 1892 to ____ billion per year in 1903.
10
On the night of the incident, roughly ________ gallons of MIC were released from tank 610 into the atmosphere.
10,000
Between 1800 and the year 2000, real GDP per capita in constant 1990 dollars went up about
10-fold.
On the eve of the disaster, tank 610, one of three storage tanks in the MIC unit, sat filled with _________ gallons of MIC.
11,290
According to your text, the first cities were formed about
12,000 years ago.
The Code of Federal Regulations contains all the final regulations written by all federal agencies currently in effect. According to the authors of your text, it is _____________ pages long.
157,974
On October 1, 2008, just ____ days after the Metrolink accident, the Rail Safety Improvement Act of 2008 became law.
19
Many U.S. companies today maintain 24-hour toll free telephone and/or email hotlines for employees to report suspicious conduct they have observed within their firm. According to your text, between ________ percent of U.S. employees use such hotlines each year.
2 and 4
Based on information compiled by Citizens Against Government Waste, in 1999 there were ______ earmarks in federal bills passed by Congress.
2,838
According to your text, the total amount of goods and services produced in the _____ century exceeded all that was produced in prior human history (in all prior centuries combined)
20th
Per capita chicken consumption in the United States increased from 6.5 chickens per person per year in 1955 to _____ chickens per person per year in 2009.
30
Although Engineer Sanchez was not supposed to have his cell phone with him in the operator's compartment or turned on under railroad operating rules, Verizon Wireless records show that on each of the seven working days preceding the accident he had made calls and sent and received between _____________ text messages while operating trains.
30 and 125
When Jack Welch took over as CEO of General Electric, the company earned 85% of its revenues from manufacturing. By the time he left, this number had fallen to
30 percent or less.
The United Nations calculated that in 1991 there were __________ transnational corporations.
37,000
Bill Gates created the William H. Gates Foundation and endowed it with $94 million when he was about
38.
The Government Environment: According to your text, in 1930 government spending in the U.S. was _____ percent of GDP, but by 2009 it had grown to _____ percent of GDP.
3; 28
In the United States in 2009, corporate philanthropy was ____ percent of total philanthropic giving.
4.6
At 12:40 a.m. the tea break ended. By now the control room gauge showed the pressure in tank 610 was ___ pounds per square inch.
40
In 1810, average life expectancy at birth was less than ____ years in all but a few of the world's 200 countries.
40
According to your textbook, the Federal Aviation Administration has __________ employees.
41,700
According to your text, ____ nations have adopted the OECD Guidelines for Multinational Enterprises.
44
Two paths many companies travel along as they become more international are paths A and B. According to the chapter 11 lecture, path A has ____ step(s) and path B has ____ step(s).
4; 1
Although Engineer Sanchez was not supposed to have his cell phone with him in the operator's compartment or turned on under railroad operating rules, Verizon Wireless records show that on the day of the accident, while operating the train, he made ____ phone calls, sent ___ text messages, and received ___ text messages.
4; 21; 21
During the period 1999-2009, charitable giving by corporations in the United States has been about ___ percent of total charitable giving.
5
What was Martha Stewart's sentence at the conclusion of the federal criminal trial in which she was a defendant?
5 months imprisonment plus 5 months home confinement, and a fine of $30,000
According to official figures, the toxic gas cloud released at a Union Carbide pesticide plant in Bhopal India in 1984 killed _______ people and seriously injured __________.
5,295; 527,894
In 2009 the fatality rate per 100 million miles traveled was ____ for passenger trains compared with ____ for motor vehicles, but the passenger train figure includes not just passengers and railroad employees on the train but also people trespassing on train tracks and motorists killed at rail crossings.
6.07; 1.10
According to Mr. Lilly, the _________________________________ ends up being a checklist of all the places that government should intervene in markets to make their social welfare outcomes closer to perfect.
7 assumptions needed to prove the First Theorem of Welfare Economics
In 2004, when PETA got a shareholder resolution onto the KFC corporate ballot asking for a report to shareholders on actions taken to reduce cruelty toward chickens, _____ of KFC shareholders voted for it. It needed 50% to pass.
7.6%
In his first five years as CEO, Jack Welch closed _____ General Electric plants.
73
The United Nations calculated that in 2008 there were _________ transnational corporations.
82,000
At about __________ on the night of the accident, a supervisor ordered an operator, R. Khan, to unclog four filter valves near the MIC production area by washing them out with water.
9:30 p.m.
With the help of an old friend, attorney ______________, Kasky sued Nike in 1998 for false advertising, alleging it had made untrue statements about its labor practices.
Alan Caplan
Today in its planning, Royal Dutch Shell foresees that
All of these.
Merrill Lynch had a written policy that required its employees to hold client information in strict confidence. What instruction did Peter Bacanovic give Douglas Faneuil on the morning of December 27, 2001 in contradiction of (not in compliance with) this policy? (2 points)
Bacanovic gave Faneuil the instructions that when Stewart called back, he should tell her that the Waksals were selling all their shares.
The ______________________ decision overturned the ban on independent expenditures by corporations and unions, and the _____________________ decision overturned the ban on independent expenditures by individuals.
Citizens United v. Federal Election Commission; Buckley v. Valeo
According to your text, after more than 2,000 years of philosophical inquiry into ethics, we have finally arrived at a point where there is little dispute among ethical thinkers about the nature of right action.
False
According to your text, ethical training for employees is generally most effective when taught by outside training professionals. It is generally less effective when taught by company managers.
False
According to your text, regardless of how effective a company founder's values are (at helping the company succeed in the marketplace,) and even if they are widely shared within the company, those values rarely persist for long. Companies generally adopt completely new values with each generation (about every 20-30 years.) True or False
False
According to your text, the written codes of conduct of American companies today vary dramatically in their fundamental content and in the principles outlined.
False
Because of the Industrial Revolution, the absolute number of people in poverty in the world today is smaller than it was in 1820. True or False
False
Compensatory damages are intended to punish and deter similar actions in the future.
False
Corporations give far more money to charity in the United States each year than individuals do.
False
Countries import and export a lot less of their goods and services today than they did in 1960.
False
David Geffen's lies prevented him from experiencing any degree of success in his chosen field.
False
Dominance theory is the view that business power is exercised in a society in which other institutions also have great power, and its power is adequately counterbalanced and constrained by the power wielded by these other institutions.
False
During his presidency, Franklin D. Roosevelt's personal physician determined that he was legally insane, but the administration kept a tight lid on this fact and the American public didn't find out about it until many years later.
False
During the Great Depression, Americans' confidence in their business leaders' morality rose to an all-time high.
False
Even conservative opponents of corporate social responsibility look favorably upon corporate philanthropy.
False
Lobbyists are not permitted to attend subcommittee markup sessions when bills are put together in the House or Senate.
False
Pluralist theory is the view that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked. True or False
False
Rockefeller was known for his temper. He frequently shouted at his subordinates in the presence of witnesses. True or False
False
When the UK national contact point office asked both parties (Vedanta and Survival International) for evidence to support their positions, Vedanta submitted a "great deal" of information.
False
When the UK national contact point office offered to mediate the dispute between Vedanta Resources and Survival International, Vedanta Resources accepted.
False
Workers in the United States are known for having greater loyalty to their companies than workers in Japan.
False
According to Jeffrey Ballinger, monitoring by Nike and other groups such as the Fair Labor Association is a prime example of voluntary corporate responsibility being used to avoid real reform. Explain. What solution does Mr. Ballinger suggest? (2 points)
He suggests that Nike pay workers 75 cents per pair of shoe as that would be more than enough for the workers, being $210 million a year.
Why was Jack Welch given the nickname "Neutron Jack" while he was CEO of General Electric? (2 points)
He was given the nickname as people started comparing him to a neutron bomb when jobs started to vanish as a neutron bomb would leave buildings standing but killed everyone inside.
The utilitarian ethic was developed between the late eighteenth and mid-nineteenth century by a line of English philosophers, including
Jeremy Bentham and John Stuart Mill.
In which of these two countries is it easier to start a business?
New Zealand
A reasonable deduction from the near-universal adoption of the Golden Rule by ethical and moral tracts of the past 8,000 years is that humans have, in all places and times during this era, tended to often be hypocritical in their dealings with others; and whenever they have chosen to be so, it has tended to damage their relations with their neighbors and other members of their community.
True
According to the authors of your text, before World War II, most manufacturers, if they exploited foreign consumer markets at all, did so through exports and/or foreign sales offices. Very few operated foreign production facilities.
True
According to the authors of your text, before World War II, only a handful of large companies, such as Ford Motor, Singer, and Bayer had moved into the fourth tier of internationalization by operating foreign production facilities.
True
According to the authors of your text, the Dodd-Frank Act of 2010 is the biggest surge in economic regulation in the United States since the New Deal of the mid-1930s.
True
According to your text, if Ralph Nader had not run for president in 2000, siphoning off 2.7% of the vote, Al Gore would have won that election instead of George W. Bush. True or False
True
According to your text, one of the general rules of the Western business world is that the seller of a product must not purposely deceive a buyer.
True
According to your text, the amount of animal cruelty implicit in the industry guidelines that KFC helped develop and now follows seems to have been tacitly accepted by KFC diners in that it has not produced a groundswell of demand for more humane treatment of chickens, but on the other hand it would be difficult to defend in an explicit media debate of industry practices. This is one reason KFC typically says "no comment," or words to that effect, when asked by the press for their reaction to PETA's latest stunt or demand. True or False
True
According to your text, today no national economy of any significance remains isolated from world markets. True or False
True
Aristotle believed that happiness is the ultimate goal of life, and that each person's happiness would be in proportion to and solely a function of the degree to which he or she has successfully developed character virtues such as courage, temperance, justice, and wisdom. True or False
True
As a manager, Jack Welch was blunt, impatient, and emotionally volatile.
True
At ExxonMobil, profit is an overriding goal, and every project must meet strict criteria for return on capital, echoing its founder's emphasis on cost control and efficiency. True or False
True
Atlanta druggist Asa Candler started the Coca-Cola Company in 1892. His business model was to make and sell the syrup to fountains, and let others add sparkling water and bottle it. He did not manufacture or sell any of the drinkable soft drink himself.
True
Baruch Spinoza and Immanuel Kant were Enlightenment philosophers who tried to identify and prove the validity of specific ethical principles exclusively through logical analysis, without reference to God's will.
True
Because of the checks and balances provided to each branch of the federal government under the doctrine of separation of powers, federal government action in the United States often requires cooperation among the branches. Divided opinion tends to result in government inaction.
True
Because the power of (Democratic and Republican) party leaders was reduced by the 1974 procedural reforms in Congress, since that time, Congressional legislators have become increasingly independent from these leaders, appealing directly to corporations and other special interest groups for campaign contributions. At the same time, reaching voters directly through television ads has become increasingly important to electoral success, because if you are not loyal to your party leaders, they will not put as much effort into helping you get elected. These two factors have combined to greatly increase the amount of dollars candidates raise and spend each year in elections.
True
Bill Gates read the entire World Book Encyclopedia at the age of 7 or 8.
True
Biographer Ida Tarbell believed that the vast wealth Rockefeller had amassed using cold-blooded business techniques inspired legions of copycats. True or False
True
Both Plato and Aristotle relegated the profit motive to the sphere of lower or base impulses. True or False
True
By 1905, the Standard Oil Trust was one of the most well-known and reviled monopolies in the country. True or False
True
By 2010, more corporations had signed on to the United Nations Global Compact than to the Sullivan Principles.
True
By the end of the 20th century, revolutionary changes in information technology and telecommunications, together with trade liberalization, made border-spanning production systems much more financially attractive in many industries than they had been previously.
True
Congress created the Federal Railroad Administration in 1966 to regulate railroad safety.
True
Congress passed the Interstate Commerce Act in 1887 to regulate railroads.
True
David C. Korten is a contemporary critic of business and a member of civil society. True or False
True
Donna Murdoch was, among other things, a securities broker and investment adviser.
True
During the 1850s in the United States, railroads sold bonds and offered stocks to raise capital so they could build their track systems, and a new investment banking industry was created. New York was the center of most of this financial activity.
True
During the 1930s, their was a popular feeling in the United States that the economic collapse of the Great Depression would not have occurred if business leaders had been more honest in the 1920s. True or False
True
During the Middle Ages, the Roman Catholic Church condemned usury, or the lending of money for interest. Despite this condemnation, by the 12th and 13th centuries, interest-bearing loans were common. Still, the Catholic Church did not officially renounce their condemnation of usury until 1917. True or False
True
During the Watergate investigations in 1974, the federal government learned that 21 corporations had violated the Tillman Act by making direct contributions totaling $842,000 to President Nixon's campaign for the presidency in 1972.
True
During the late 1960s and 1970s, the pendulum of power in national politics swung away from business and toward new groups who championed a liberal reform agenda. These new groups successfully lobbied for the creation of new federal agencies and the passage of new federal laws to protect the rights of consumers, the environment, racial minorities, and other previously powerless groups and causes.
True
During the period 1868-1900, organized labor emerged as an important counterweight to the power and influence of business in politics.
True
ExxonMobil has a centralized, authoritarian culture, echoing the preference for centralized organization of its founder. True or False
True
ExxonMobil is closely watched by environmental, civil rights, labor, and consumer groups, some of which are actively hostile toward the company. True or False
True
For 35 years several GE manufacturing plants in New York released polychlorinated biphenyls into the Hudson River.
True
In 1832 Congress passed a law that made it illegal to bring alcohol into Indian territories, but under Astor's instructions, Astor's men smuggled liquor into those territories as needed and continued to use it in negotiations with the Indians because he was obsessed with defeating his rivals. True or False
True
In 1859, John D. Rockefeller formed a successful partnership with two others in the produce business in Cleveland. The business boomed from supplying food to the Union army during the Civil War. True or False
True
In 1975, M.N. Buch, the Bhopal city administrator, tried to have the UCIL plant moved to a safer location - an industrial zone 15 miles away. Not only was he unsuccessful in this attempt, but he was soon removed from his position and transferred to forestry duties elsewhere in India.
True
In 1976, all federal regulation of routes run and fares charged by airlines was discontinued in the United States. This was an experiment in deregulation.
True
In 1996, Caremark International, a health care company, was caught giving kickbacks to physicians who referred patients to its clinics.
True
In his early business career (and perhaps later as well,) Rockefeller recorded every cent he earned and spent in a personal ledger. True or False
True
In the 50 year period from 1950-2000, mankind made more goods and services than they had made in all of human history before that time. True or False
True
In the late 1890s, Mother Jones toured Pennsylvania coal towns, giving speeches and urging the men to stand up to the companies and demand fair pay and fair treatment from them. True or False
True
In the period following the American Civil War, big business dominated both state and federal governments to a degree not seen before or since.
True
In the summer of 1877, a wave of violent strikes began in the railroad industry in the United States, then spread to other industries. President Rutherford B. Hayes was so terrified that the country would fall to a workers' revolution that he ordered federal troops to Washington, D.C. to protect the government. True or False
True
In total, federal and state governments in the United States gave the railroads 164 million acres of land, an area equal to the size of California and Nevada combined. True or False
True
It has been more than one hundred years since Congress passed the first law to limit corporate money in elections.
True
It is easier to convict a corporation of a crime than to convict the CEO of that corporation of the same crime.
True
Since taking over from Jack Welch as CEO, Jeffrey Immelt has managed GE in a way that is much more friendly toward environmental causes than the company ever was under Mr. Welch's leadership.
True
Since the Citizens United decision, some have suggested that we should pass a Constitutional Amendment defining a corporation as an artificial entity to which First Amendment rights do not apply.
True
So far, at least 1,535 companies that signed on to the Global Compact have been delisted for failing to post their required annual progress report for two consecutive years.
True
Social emotions enforce and motivate moral conduct.
True
Soft money contributions increased by more than 65% between 1996 and 2002, in large part because in 1996, the U.S. Supreme Court ruled that they could be used for so-called "issue ads" which allegedly present a political view or comment on an electoral race without expressly advocating the election or defeat of a given candidate. The intent of many of these ads to support or oppose a specific candidate was clear to most voters, but the ads avoided legal identifcation as express advocacy ads by avoiding key words and phrases such as "vote for" "defeat" and "support."
True
Sometime after 1896, shaken by the public's hatred of him, Rockefeller developed a nervous disorder and lost all his hair. True or False
True
Sometime after the South Improvement Plan, shaken by the public's hatred of him, Rockefeller developed a digestive ailment so severe that he could only eat a few bland foods. True or False
True
The Coca-Cola Company is a signatory of the United Nations Global Compact.
True
The Interstate Commerce Commission was abolished in 1995.
True
The traditional view in moral philosophy is that ethical decisions, particularly right ones, come from deliberate reasoning that relies on principles and maxims. However, evidence from study of the brain casts doubt on this assumption.
True
Timberland Co. executives backed a program allowing employees to take one week a year at full pay to work at local charities. However, line managers resisted giving their workers the time off.
True
To be our best selves, it would seem we need to be constantly reminded of the effects of our actions on others.
True
To stimulate demand for his cigarettes, Duke had workers hand out free samples to immigrants as they emerged from the New York Immigration Station to set foot in America for the first time. True or False
True
Today, both the New York and NASDAQ stock exchanges require all companies who want their stocks "listed" on these exchanges to have in place a written code of ethical conduct for its employees and procedures for enforcing it.
True
Under the U.S. Sentencing Guidelines for Corporations, to meet the threshold of demonstrating an "acceptable effort" toward ensuring that their company and employees obey the law, the top managers of a company must, among other things, take credible steps to exclude individuals with a history of illegal or unethical conduct from positions of substantial authority.
True
Under the doctrine of respondeat superior, created by the Supreme Court in 1909, corporations are liable for the actions of employees who commit a crime in the course of their employment when their act is for the benefit of the company.
True
Using other people as conduits to exceed political campaign contribution limits, as Magliocchetti apparently did, is a crime.
True
During the Great Depression, many conservative business executives argued publicly that the depression would correct itself without government action.
True
In his Principia Ethica, published in 1903, philosopher G.E. Moore took the position that people are endowed with a moral sense by which they intuitively know the difference between right and wrong.
True
Our ethical reasoning is largely guided by that subset of the universe of ethical maxims which we ourselves personally have bought into at a deep, subconscious level.
True
Over 40% of the restaurants in the Yum! Brands family are KFC restaurants. True or False
True
The Sullivan Principles called upon multinational countries with employees and facilities in South Africa to break South African law in certain specific ways.
True
The authors of your text subscribe to the theory of moral unity.
True
_________________ says that each person has a strong right to certain basic pursuits, liberties, and protections that we as a society will vigorously protect.
the Rights Ethic
According to your text, the first international code of conduct to engage a large number of corporations was
the Sullivan Principles.
(The proposition that) justice is the interest of the stronger.
(the) might equals right (ethic)
(The proposition that we should) treat others as ends in themselves, not as means to other goals.
(the) practical imperative
Honda has built and operates enough manufacturing facilities in North America to satisfy ____ of the annual demand for vehicles in the United States.
10%
Today, the Department of Homeland Security has about __________ employees.
145,000
The National Transportation Safety Board (NTSB) was established by Congress in
1967.
The National Highway Traffic Safety Administration was established in
1970.
The economic theory of monopoly was well-developed by 1748.
False
The ends-means ethic is compatible with deontological ethics.
False
According to your text, during what 100 year period did the printing press reshape European culture by creating a free market for ideas that undermined the Catholic church's monopoly on truth and doctrine?
1450-1550
According to your text, the median age in Zambia today is
17
By the _______ the railroads had grown into a large, aggressive presence that would soon invite government regulation.
1860s
Bill Gates founded Microsoft Corporation at age
19.
During the Great Depression, the official unemployment rate reached
25%.
According to your text, chickens were domesticated about _______ years ago.
4,000
According to Mr. Lilly, you must be able to influence a business in order to be a stakeholder of that business. True or False
False
According to the authors of your text, the traditional philanthropy model is dead. All philanthropy from now on will be what they call "new philanthropy."
False
According to your text, John D. Rockefeller was a gifted student, and was named valedictorian of his high school graduating class. True or False
False
Illegal actions by employees of Oracle Corporation in the 1980s and early 1990s, exposed by the Securities and Exchange Commission in 1993, ultimately led to failure and bankruptcy for the company.
False
In which of Shell's two newest planning scenarios do slowing economies, extreme weather events, and shortages of both energy and food cause political upheavals in several countries?
Scramble
In which of Shell's two newest planning scenarios does the world fumble its response to the energy challenge?
Scramble
An fMRI test detects and measures changes in blood flow and blood oxygen content related to neural activity.
True
Jeffrey Skilling, one of two former CEOs of Enron brought to trial on criminal charges for his role in the Enron scandal, was convicted on multiple counts of conspiracy and fraud and sentenced to 24 years and 4 months in prison.
True
John D. Rockefeller obsessed over every detail of strategy and every penny of cost and earnings. True or False?
True
Rockefeller continued to give generously to charities as head of the Standard Oil Trust. True or False
True
Thomas M. Garrett's principle of proportionality, laid out in his 1966 book, Business Ethics, allows managers to risk predictable but unwilled harms to people if they correctly weigh five factors.
True
Throughout the nineteenth century, U.S. corporations were permitted to make direct money contributions to the political campaign and re-election funds of political candidates and office holders in the United States.
True
Unfortunately, refrigeration units that cooled the MIC tanks had been shut down for _____________ to save electricity costs. Had they been running, as the MIC processing manual required, the heat rise from reaction with the water might have taken place over days instead of hours.
five months
When the state government of Madhya Pradesh (the Indian state in which Bhopal is located) learned that Union Carbide had set up a training school for the unemployed in Bhopal, it
flattened the facility with bulldozers.
Business entities in foreign countries controlled by parent transnational corporations.
foreign affiliates
Global GDP is currently
growing at about 4.4% per year.
John D. Rockefeller's father, William Rockefeller,
had to flee and live away from home to avoid arrest for raping a local woman.
According to your text, in the period following the American Civil War, the state legislatures of New York and California were controlled by
railroads.
Government activity that guides the behavior of citizens, groups, and corporations to reach economic or social goals.
regulation
Documentation and disclosure of how closely corporate operations conform to the goal of sustainable development.
sustainability reporting
The practice of a corporation publishing information about its economic, social, and environmental performance.
sustainability reporting
Economic growth that meets current needs without social and environmental impacts that harm future generations.
sustainable development
Libertarians tend to embrace: (Check all that apply)
the Conventionalist Ethic. the Principle of Equal Freedom.
The test of reversibility is closely-related to: (Check all that apply)
the Golden Rule. the principle of reciprocity.
The "New Deal" reforms of President Franklin D. Roosevelt were formulated in response to: (Check all that apply)
the Great Depression.
According to your text, the top (best paid) 5% of the world's population received about ____ percent of all income received in 2007.
33
During his first term in office (1980-1984,) President Ronald Reagan cut federal agency budgets by an average of
37%.
In 2005, General Electric set for itself a goal to
All of these.
In order to generate demand for his cigarettes in China, Duke
All of these.
In the months that followed the initial dialogue between Cheryl Batchelder and David Novak of Yum! Brands and Bruce Friedrich of PETA in 2001, KFC
All of these.
John D. Rockefeller went to great lengths to cut costs at his petroleum refinery. He
All of these.
Although most would agree the American Fur Company treated the Indians it bargained with unfairly, they would also agree it treated its white trappers quite fairly, and never exploited them. True or False
False
The Tillman Act of 1907 was repealed by Congress in 1947 and so is no longer in effect.
False
Currently, PACs are allowed to give up to _______ per election to an individual candidate.
$5,000
(Is carried out by asking yourself) would you be willing to change places with the person or persons affected by your actions?
(the) test of reversability
Could this act be turned into a universal code of behavior?
(the) test of universability
(The idea that) ethical behavior stems from character virtues built up by habit.
(the) virtue ethic
An emerging form of philanthropy that relies on market forces to achieve results.
philanthrocapitalism
Charitable giving of money, property, or work for the welfare of society.
philanthropy
The belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society.
theory of amorality
The Environmental Protection Agency was established in
1970.
The Consumer Product Safety Commission was established in
1972.
The Nuclear Regulatory Commission was established in
1974.
Shortly after 10:04 a.m. on Thursday, December 27, 2001, Ann Armstrong, Martha Stewart's administrative assistant, wrote in her phone log
"Peter Bacanovic thinks ImClone is going to start trading downward."
A clause in the Constitution, Article VI, Section 2, setting forth the principle that when the federal government passes a law within its powers, the states are bound by that law.
(the) supremacy clause
(The proposition that) a person has the right to freedom of action unless such action deprives another person of a proper freedom.
(the) principle of equal freedom
Royal Dutch Shell operates in approximately ____ countries.
130
Getting approval from the Bolivian government to start a new business is a 15-step process that takes an average of ___ days and costs the applicant as much in fees as the average Bolivian earns in a year.
51
According to your text, Nike uses about 700 factories in ___ countries employing 800,000 workers.
56
According to your text, what triggered the Industrial Revolution?
All of these.
In 1776, ________________ published his theory of capitalism, writing that free markets harnessed greed for the public good and protected consumers from abuse.
Adam Smith
Of the 5 color-coded continental groups that Hans Rosling shows in his video "200 countries, 200 years in four minutes," the group that still has the farthest to go to get to the rich and healthy corner is
Africa South of the Sahara.
The Body Shop was started in 1976 by
Anita Roddick.
Jack Welch was the Chief Executive Officer of General Electric from
April 1981 to September 2001.
During (Ulysses S.) Grant's second term as president, the most famous political scandal involving members of his administration was known as the
Credit-Mobilier scandal.
In 1972, Weatherford chose to incorporate in the state of
Delaware because incorporation laws there are business-friendly.
Today, the largest single federal executive agency by annual budget is the
Department of Homeland Security.
In his last years Rockefeller was weak and frail and exercised by having attendants toss him up and down in a blanket. True or False
False
In the year of the incident, most of UCIL's revenues came from selling
Eveready batteries.
C. Wright Mills was a sociologist who believed strongly that American society was, in his day, a pluralistic society.
False
FDI stands for
Foreign Direct Investment.
According to both the lecture and the text (Table 11.1), the largest multinational firm in the world in 2008 measured by the dollar value of their foreign assets was
General Electric.
Siemens is headquartered in
Germany.
What lie did David Geffen tell on the resume he gave to the William Morris Agency?
He said he had earned a theater arts degree from UCLA.
Mary Lease and Mary "Mother" Jones seem to have held similar beliefs about the relationships between business, government, and society that existed in their day. True or False
True
The leading advocate of social Darwinism was
Herbert Spencer.
The following firms are at tier 5 in Figure 11.1: (Check all that apply)
IBM Unilever Siemens Nestle Alcatel-Lucent Air France-KLM
According to the authors of your text, big miners such as Rio Tinto and BHP Billiton now rate _______________ investment climate the worst of any mineral-rich country in the world.
Indonesia's
According to your text, who is PETA dominated by?
Ingrid Newkirk
In 1887 Congress established the _____________________________ to regulate the railroads at the federal level.
Interstate Commerce Commission
Strong public support for American business collapsed again in the mid-1960s. True or False
True
In 2010, the company that gave the second-most to charity was
Merck.
These companies have arrived at step A4 by following path A to become some of the most international companies in the world. (Check all that apply)
Nestle IBM Siemens
According to the information presented in the lecture, what was the annual cost of complying with federal regulations on business in 2004, as a percent of GDP?
None of these.
The only comprehensive global code of corporate conduct promoted by governments is the
OECD Guidelines for Multinational Enterprises.
In 2010, the company that gave the most to charity was
Pfizer.
According to The Communist Manifesto, under capitalism the working class is exploited by the owners of capital, who pay low wages for dehumanizing work and then usurp for themselves the value of what the workers toil to create. True or False
True
When Anita Roddick was pioneering how to run a corporation in a socially responsible way, she drew inspiration from (check all that apply):
Scandanavian business practices. progressive academics. the Quakers.
The UCIL plant in Bhopal manufactured two similar pesticides using MIC as an ingredient marketed under the names
Sevin and Temik.
Phil Knight received his M.B.A. from
Stanford.
____________ requires its 55 state-owned companies to produce a yearly sustainability report based on Global Reporting Initiative guidelines.
Sweden
Nestle is headquartered in
Switzerland.
The largest U.S. charitable foundation in terms of total assets is
The Bill and Melinda Gates Foundation.
After the terrorist attacks on the World Trade Center in 2001, the George W. Bush administration combined 22 existing federal agencies into one big new agency called the Department of Homeland Security.
True
What was the basis of (argument behind) Nike's motion to have Mark Kasky's 1998 lawsuit against them dismissed? (2 points)
The basis were that Kasky's case argued questions that were part of a public debate about sweatshops and protect by the first amendment.
According to the chapter 3 lecture, what are the three most common intended positive consequences of the use of business power?
The three most common intended positive consequences of the use of business power are that consumers get products at a fair price, employees get wages and salaries, and that shareholders get profit.
When ready, new administrative rules in their final form are printed in the Federal Register.
True
Ben & Jerry's was originally founded on a progressive business model, but it was subsequently acquired by ____________, a company founded on a traditional business model.
Unilever
A system of structures, policies, procedures, and controls used by corporations to promote ethical behavior and ensure compliance with laws and regulations.
ethics and compliance
During (Ulysses S.) Grant's first term as president, the most famous political scandal involving members of his administration was known as the
Whiskey Ring scandal(s).
According to Mr. Lilly, profits are the _______ and competition is the _______ that gets businesses to continuously innovate to try to make the step up function in value between inputs and outputs as high as possible.
carrot; stick
According to the lecture, for legal purposes, Vendanta Resources is
a British company.
John D. Rockefeller's first job was as
a bookkeeper for a Cleveland firm.
Of the categories shown in Figure 11.6 in your book, China would be classified as
a developing economy.
Lobbying is defined as
advocating a position to government.
In the United States, the progressive movement took place _______ the populist movement.
after
James B. Duke was born _______ John Jacob Astor.
after
Examples of companies with corporate responsibility committees on their boards of directors include: (Check all that apply)
all of them
Examples of companies with staffed "Vice President of Corporate Responsibility" positions include: (Check all that apply)
all of them
The Seventeenth Amendment to the U.S. Constitution: (Check all that apply)
changed the system by which U.S. senators were elected, wresting it from the control of state legislatures and converting it to election by popular vote.
A regulatory agency in the executive branch run by a single administrator.
executive agency
A production cost not paid by a firm or its customers, but by members of society.
external cost
A method used to map activity in neural networks during ethical decision making.
functional magnetic resonence imaging
Shortly after 1892 and before 1900, General Electric built a near-monopoly in the
incandescent light bulb market.
According to your text, since 1820, the absolute number (count) of persons in poverty in the world has
increased
One indication of the effectiveness of PETA's campaign against KFC is the change in the number of stores KFC operates since the campaign began. Between the start of the campaign and 2010, the number of KFC outlets
increased by 37%.
A regulatory agency run by a small group of commissioners independent of political control.
independent commission
Corporate political action committees collect the money they give to candidates from
individual employees of the corporation.
Payments in excess of a wronged party's actual losses to deter similar actions and punish a corporation that has exhibited reprehensible conduct.
punitive damages
A school of thought that rejects ethical perfection, taking the position that human affairs will be characterized by flawed behavior and ought to be depicted as they are, not as we might wish them to be.
realist school
In 1837 the American Fur Company's steamboat St. Peters carried _______________ up the Missouri River, killing more than 17,000 natives.
smallpox
Which of these federal agencies have the power to disapprove the sale of a new genetically modified crop? (Check all that apply):
the U.S. Department of Agriculture the Environmental Protection Agency the Food and Drug Administration
LDCs (Less-Developed Countries) are
the poorest nations on earth.
The saying "Your right to swing your fist ends where my nose begins" is an expression of
the principle of equal freedom.
In Mr. Kasky's lawsuit against Nike, Superior Court Judge David A. Garcia gave judgment in favor of Mr. Kasky.
False
After the Austin v. Michigan Chamber of Commerce decision, corporations began writing increasingly large soft money checks to national party committees, which gave the money to state party committees that used it to broadcast ads for and against candidates.
True
In the past, most company mission statements centered on profits and products. Many still limit themselves to this narrow focus.
True
Recent research in brain science provides a scientific basis for the _____________________ set forth by philosopher G.E. Moore more than a century ago.
intuition ethic
According to your text, John D. Rockefeller's father, William Rockefeller, once said
"I cheat my boys every chance I get. I want to make them sharp."
At its peak, WorldCom had annual revenues of
$39 billion.
The power of judges to review legislative and executive actions and strike down laws that are unconstitutional or acts of officials that exceed their authority.
(the power of) judicial review
The general rule that federal courts should defer to agency rules that are based on reasonable interpretations of ambiguous statutes.
(the) Cheveron doctrine
The average of three ratios: foreign assets to total assets, foreign sales to total sales, and foreign employment to total employment.
(the) transnational index
(The course of action that produces) the greatest good for the greatest number (is the most ethical course of action from among all alternatives.)
(the) utilitarian ethic
According to your text, the Industrial Revolution in the West was facilitated by a set of interlocking ideologies, including (check all that apply):
- Darwinism - constitutional democracy - capitalism - social Darwinism - the Protestant Ethic - progress
According to the lecture in its interpretation of Figure 11.2, the top ____ of the transnational corporations owned 9% of the foreign assets, generated 16% of the foreign sales, and employed 11% of the foreign workers in 2008.
0.1%
Although Nestle was started in Switzerland and still has its worldwide headquarters and some of its manufacturing facilities there, today it derives only _____ of its annual revenues from its home country.
1.9%
Ninety-six (96) percent of the companies whose interests are represented by the U.S. Chamber of Commerce have fewer than ____ employees.
100
The Bhopal accident effectively destroyed the Union Carbide Company. In 1984, the year of the gas leak, it had 98,400 employees and sales of $9.5 billion. By 2000 it had only __________ employees and sales of
11,000; $5.9 billion.
Because of either Mr. Khan's failure to insert a slip blind in the piping to which he had connected a water hose as required by plant procedure, or the introduction of water into the system elsewhere that night, _______________ gallons of water entered tank 610, starting a powerful exothermic (heat building) reaction in the tank.
120 to 240
Based on information compiled by Citizens Against Government Waste, in 2005 there were _______ earmarks in federal bills passed by Congress.
13,997
In his first five years as CEO, Jack Welch eliminated ______ workers from General Electric payrolls.
132,000
Total government spending (federal, state, and local) in the United States as a percent of GDP has increased from about ____ percent in 1930 to about ____ percent today.
13; 40
Pursuant to the settlement reached between the Indian Government and Union Carbide in 1989, a total of _________ death claims were paid. This doesn't square with the official death toll set forth by the Indian government. It would appear that Greenpeace's estimate of 16,000 dead may be closer to the true number.
14,824
How much did it cost Bjorn Soderberg's company in Nepal, per month, to teach 15 people to read and write?
15 Euros
According to Mr. Lilly, beginning in about ______, the U.S. Supreme Court made it clear that corporations were to be treated as legal persons.
1819
Currently, experts believe that the most rapid rate of increase of the human population will be during the period
1900-2075.
Asset concentration levels among the top 200 U.S. corporations reached their highest level ever in
1929
According to your text, the ongoing pubic relations "war" between KFC and PETA began in
2003.
James Cash Penney's first business, a butcher shop, went bankrupt when he was ___ years old.
23
Bill Gates was a billionaire by the time he was
31
According to your text, the Organization for Economic Cooperation and Development is a group of ____ nations that works to further economic growth by expanding trade amongst its members.
33
In 2008, the output of the 100 largest multinational firms was approximately ____ of world GDP.
4%
According to your text, the average life expectancy at birth in Zambia today is
45
At the time of the incident, the MIC unit operated with ___ workers per shift, _____________ the number anticipated by its designers.
6; half
In the 2008 elections, the National Federation of Independent Businesses gave ___ percent of its campaign contributions to Republican candidates.
83
According to estimates done by his staff which Huey Long talks about in the video of one of his 1935 speeches, in 1935 4% of the American people owned _____ of the wealth.
85%
According to your text, among the social values that can serve as boundaries on managerial power are norms of
All of these.
Currently, each PAC can contribute no more than $50,000 in total (to all recipients combined) per two-year election cycle.
Currently, each PAC can contribute no more than $50,000 in total (to all recipients combined) per two-year election cycle.
All businesses in the United States want and lobby for the same things from government. They never disagree on what government should do in a given situation.
False
All the workers' unions formed in the United States between 1850 and 1900 were radically and avowedly socialist. True or False
False
At the time of the incident, Union Carbide owned a 60 percent majority interest in UCIL.
False
In 2004, federal prosecutors charged Bernard Ebbers with nine counts of criminal conspiracy, securities fraud, and filing false documents with the SEC. But in 2005, Mr. Ebbers was found not guilty on all counts and allowed to go free.
False
In the United States, the legal rights of someone who has been convicted of a serious crime are no different than those of a person who has never been convicted of a crime.
False
In the lecture, Mr. Lilly agrees with the authors of your textbook that there are two very distinct and separate classes of reasons for government regulation of business.
False
Today, corporations are once again permitted to give money, drawn from their profits or corporate bank accounts, directly to the re-election campaigns of federal officials such as members of Congress.
False
Utilitarianism is an example of deontological ethics.
False
What has Nike's product strategy been from the beginning? (2 points)
It's product strategy has always been to design innovative, fashion-able footwear and apparel for affluent markets, and then have contractors in low-wage countries manufacture it.
People who subscribe to (agree with) the view that great leaders change the course of history might say that the territory of the United States might have very different geographic boundaries were it not for ____________________ singular lust for fur riches.
John Jacob Astor's
Justice _________________________ wrote the dissenting opinion in Citizens United v. Federal Election Commission, which contained, among other things, these observations: "Corporations have no consciences, no beliefs, no feelings, no thoughts, no desires," (and therefore should not receive the same level of protection for their political speech as flesh and blood individuals) and (with this decision) "politicians who fear that a certain corporation can make or break their reelection chances may be cowed into silence about that corporation."
John Paul Stevens
Contemporary philosopher ______________ speculates that rational persons debating how society should be structured while operating behind a "veil of ignorance" regarding what their place in society will be would follow two rules in the design of any society.
John Rawls
In his classic essay On Liberty, ________________ argued that if we value human liberty and happiness, we should vigorously protect free speech, even when that speech makes us uncomfortable.
John Stuart Mill
What does pure capitalism mean in the context of the First Theorem of Welfare Economics? (3 points)
Pure capitalism means in the context would mean to have 100% private ownership of the means of production, zero government regulations, and zero taxes.
____________________ says that it is O.K. to pay workers dirt poor wages because doing so is in service to a noble process - the culling and shaping of the human race into something more perfect.
Social Darwinism
What are the two "simple values" that guide the work of the Bill and Melinda Gates Foundation? (2 points)
The two simple values that guide the work of Bill and Melinda Gates Foundation are that all lives-- no matter where they are being led-- have equal value and to whom much is given, much is expected.
According to Rich Applebaum, Professor of Sociology at U.C. Santa Barbara, the world economy has changed in a fundamental way in the past 25 years. How exactly has it changed, according to Professor Applebaum? (2 points) [Hint: The answer is found toward the end of the chapter 6 lecture.]
The world economy has changed in a fundamental way in the past 25 years as it started with general motors with workers in their own factories producing things. Now companies perfer to outsources to global supply chains.
According to Auret van Heerden, President and CEO of the Fair Labor Association, any (global) brand (marketer) that does decide to become transparent (with regard to the labor practices of its suppliers) is likely to receive some criticism from skeptical (progressive) consumers of that information.
True
According to biographer Allan Nevins, Rockefeller was able to justify his company's ruthless actions because he believed that if the oil industry consisted of many small firms, it would go through a constant process of half-dying, reviving, and again half-dying. He saw his one big firm as more efficient and orderly, and he felt in his heart that God prefers efficiency and order over chaos. True or False
True
According to the authors of your text, Botswana now has one of the fastest-growing economies in the world.
True
According to your text, Martha Stewart was one of Peter Bacanovic's most important clients.
True
According to your text, the Chicago School is synonymous with neoliberalism. True or False
True
The officers of a corporate PAC, who get to decide how to spend the money collected by the PAC, must all be employees of the corporation that established the PAC.
True
The only purpose to which Machiavelli sought to justify the use of unscrupulous methods in order to achieve important means, in his book The Prince, was the preservation of the state.
True
The originator of modern socialist doctrine, Francois-Noel Babeuf, was beheaded by the French government in 1797 for advocating the violent overthrow of that government. True or False
True
The power of judicial review is one of the check-and-balance powers the judicial branch of our federal government has over the legislative and executive branches.
True
The stubborn resistance of Southern Democrats to civil rights legislation in the 1960s eventually led in 1974 to an uprising of junior legislators, who passed procedural reforms to democratize Congress, taking power from the party leaders and spreading it widely.
True
While MNCs are widely mistrusted and still act badly at times, the progressive community now has more appreciation of the need to bring them into the fold of cooperation with governments and NGOs to address issues such as poverty, fresh water shortages, and climate warming.
True
Yum! Brands is the world's largest quick-service restaurant corporation. True or False
True
Yum! Brands was created in 1997 when PepsiCo spun off its KFC, Pizza Hut, and Taco Bell chains as a separate corporation. True or False
True
According to your text, the most aggressive business lobby is the
U.S. Chamber of Commerce.
According to both the lecture and the text (Table 11.1), the largest multinational firm in the world in 2009 measured by annual revenues was
WalMart.
The presidency of ________________ was so beset by scandals that Congress was considering impeaching him when he died of a stroke in 1923.
Warren G. Harding
What proposal by President George Washington in or around 1794 stunned Astor?
What stunned Astor was that Washington proposed to befriend the Indians by setting up government fur-trading posts which would be run with benevolent policies. These posts would compete with Astor and other private traders.
The cause of river blindness, or onchocerciasis, is a
a parasitic worm.
The Business Roundtable is an example of
a peak association.
The United States Chamber of Commerce is an example of
a peak association.
In 1981, ___________________ leak from UCIL's Bhopal plant killed one worker.
a phosgene (mustard gas)
In __________________, no entity or interest has overriding power.
a pluralistic society
In the years between 1952 and 1960, Dwight D. Eisenhower was _________________ president with a cabinet dominated by political appointees from __________________.
a probusiness; business
Which of the following do the authors of your text list as among the benefits of federal regulation? (Check all that apply.) According to your authors, regulation has:
all of them
The Ends-Means Ethic and the Utilitarian Ethic have at least one thing in common, which is that they
are both examples of consequentialist ethical principles.
Verification by audit that information in a corporate sustainability report is reliable.
assurance
The required annual report of a company participating in the Global Compact. It explains how the company is implementing the 10 principles.
communication on progress
According to your text, in 1934 Senator Huey Long introduced a plan to redistribute wealth by collecting annual taxes on __________________________ and then giving every family a $5,000 initial gift followed with a guaranteed annual income of $2,500.
corporate assets and large fortunes
A set of values, norms, rituals, formal rules, and physical artifacts that exist within a company.
corporate culture
The duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets.
corporate social responsibility
Rockefeller insisted on having a statement of the exact net worth of the Standard Oil Trust prepared for him
daily.
The two-year period between federal elections.
election cycle
Training employees to make decisions based on ethical values.
ethics approach
The idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods.
fair trade
Funds invested by a parent MNC for starting, acquiring, or expanding an affiliate in a foreign nation.
foreign direct investment
In the 1990s, Shell's planners saw change in the global business environment caused by what three dominant forces?
globalization, technological change, and liberalization
___________________ is often the first function to be distributed across multiple countries as a company becomes more multinational.
manufacturing
In classical economic theory, which is the basis for the market capitalism model of chapter 1, a business is socially responsible if it:
maximizes profits while operating within the law.
In early June 2002, the Associated Press broke the story that Martha Stewart was being investigated, setting off a three-week decline in the share price of Martha Stewart Living Omnimedia. What were Ms. Stewart's paper losses on her personal holdings of Martha Stewart Living Omnimedia stock during this three week period?
more than $462 million
An entity headquartered in one country that does business in one or more foreign countries.
multinational corp
According to Rich Applebaum, Professor of Sociology at U.C. Santa Barbara, Patagonia is a manufacturer in
name only.
Protections and entitlements that can be inferred by reason from the study of human nature.
natural rights
Getting approval from the New Zealand government to start a new business there takes _________ and costs the applicant $160 in fees.
one day
Of the studies done to see if companies that are more socially responsible are also more profitable, most show a(n) ____________ correlation between responsibility and profitability. This means that most studies found that the companies that were more socially responsible were generally ______ profitable.
positive; more
A form of social behavior in which people behave supportively in the expectation that this behavior will be given in return.
reciprocity
In general, human beings: (Check all that apply)
sometimes seek to dissuade others from behaving selfishly by presenting an argument that the other's behavior is ethically wrong. seek to make sense of the world. want to see themselves as moral persons. want to be seen by others as moral persons.
After her husband died, Mary Jones moved to Chicago and
started a dressmaking business.
A form of corporate philanthropy in which charitable activities reinforce strategic business goals.
strategic philahthropy
In 1969, there was a growing demand in India and throughout Asia for pesticides because of _________________________________, a type of planned agriculture that requires intensive use of pesticides and fertilizers on special strains of food crops.
the "green revolution"
___________________ says that in business, anything that is legal is also ethical.
the Conventionalist Ethic
According to your text, the advent of the railroads in the 1820s shortened the travel time from New York to Chicago from three weeks to
three days.
A group representing the interests of an industry or industry segment.
trade association
The American Boiler Manufacturers Association is a
trade association.
The American Petroleum Institute is a
trade association.
The National Turkey Federation is a
trade association.adw
Which are more politically influential, peak associations or trade associations?
trade associations
The state in which company social strategies, structures, and processes are visible to external observers.
transparency
An accounting of a firm's economic, social, and environmental performance.
triple bottom line
Contributions by corporate PACs more than __________ between 1986 and 2008.
tripled
People who have become infected with river blindness typically got it when they
were bitten by certain species of black flies.
A group that represents the political interests of many companies and industries.
peak association
The National Federation of Independent Businesses is a
peak association.
According to Mr. Lilly, when standards of living increase,
people are able to live longer, happier, healthier lives.
According to Mr. Lilly, the good outcomes advocates of the market capitalism model claim unregulated or lightly regulated markets will produce for society are - only achievable with high tax rates and extensive government regulation. - a fiction. - a fantasy. - critically dependent on the existence of competition and choice in all markets. - an outright lie.
- critically dependent on the existence of competition and choice in all markets.
According to Mr. Lilly, the wealth a business creates is - divided into three components: profit, taxes, and consumer surplus. - divided into two components: profit and taxes. - equal to the profit a business earns. - usually less valuable than what it destroys. -divided into two components: profit and consumer surplus.
- divided into three components: profit, taxes, and consumer surplus.
In 2008, U.S. corporations on average gave about ____ of their pretax income to charity.
1%
The Federal Railroad Administration has estimated that when the new systems and regulations mandated by the Rail Safety Improvement Act of 2008 are fully implemented, railroads will have to spend an additional ____________ hours per year completing safety paperwork required by the new rules.
1,729,848
This question has two parts. Be sure to answer both parts: 1. What is your textbook's definition of civil regulation? (2 points) 2. Are PETA's actions in its dealings with KFC since 2003, as described on pages 112-120 of the original textbook, an example of civil regulation, as defined in your textbook? Explain. (4 points)
1. Regulation by nonstate actors based on social norms or standards enforced by social or market sanctions.2. Peta's actions in dealing with KFC since 2003 would be classified as civil regulation. Peta is not part of the government and is instead run by nonstate actors based around social norms, in this case animal rights, who are making demands on company. Those who fail to comply loose reputation and receive financial damage.
Around the world _____________ Coca-Cola brand drinks are consumed daily.
1.6 billion
New administrative rules usually take effect ____________ after they are printed in the Federal Register in their final form.
60 days
The average Mexican citizen drinks _____ Coca-Cola branded beverages per year.
665
A 1789 law permitting foreign citizens to litigate, in a federal court, wrongful actions occurring anywhere in the world that violate international law or U.S. treaties.
Alien Tort Claims Act
Listed below are four of the seven assumptions needed to prove the First Theorem of Welfare Economics. Which of these are unrealistic assumptions, according to Mr. Lilly? [Select all that apply]
All markets are frictionless. Consumers have perfect information.
Listed below are four of the seven assumptions needed to prove the First Theorem of Welfare Economics. Which of these assumptions are strong assumptions? [Select all that apply]
All markets are frictionless. Consumers have perfect information.
According to the authors of your text, the progressive movement
All of these.
Between 1895 and 1904, an unprecedented merger wave produced mega-firms in roughly 300 industries. A 1904 study of the 92 largest firms in America found that
All of these.
According to your text, the sweatshop labor issue "exploded" shortly after ________, when the leader of a human rights group testified before Congress that clothing for WalMart's Kathie Lee apparel line was made at a Honduran factory where children worked 14 hours per day.
April 1996
Which of the following companies are operated based on a progressive business model, according to the authors of your text? (Check all that apply)
Bertelsmann Johnson & Johnson Patagonia, Inc.
Phil Knight's original partner in the business that was to become Nike was ______________, the track coach at the University of Oregon.
Bill Bowerman
The __________________________________________ prohibited issue ads funded by corporate independent expenditures within 30 days before a primary election and 60 days before a general election.
Bipartisan Campaign Reform Act of 2002 (BCRA)
According to your text, the country with the highest rate of HIV/AIDs infection in the world today is
Botswana.
In the 1976 case of ____________________, the U.S. Supreme Court invalidated the expenditure limits (but not the contribution limits) in the 1974 FECA Amendments, ruling that giving and spending money in political campaigns are forms of expression protected by the First Amendment guarantee of free speech.
Buckley v. Valeo
In 1981, the __________, a group of 200 CEOs of the largest corporations, published a Statement of Corporate Responsibility which said, among other things, that "a corporation...must be a thoughtful institution which rises above the bottom line to consider the impact of its actions on all."
Business Roundtable
The _____________________ is a peak association whose members are all Chief Executive Officers of major U.S. corporations.
Business Roundtable
According to Mr. Lilly, the primary decisionmaker responsible for Merck's decision to go forward with the development of Ivermectin for treatment of human river blindness was
CEO Dr. P. Roy Vagelos.
In 2009 in the case of ________________________________, the U.S. Supreme Court ruled that both the BRCA's prohibition against corporations directly funding issue ads and its prohibition against corporations making independent expenditures on express advocacy ads were unconstitutional restrictions on "free speech" in violation of the First Amendment, and it struck both provisions of that law down.
Citizens United v. Federal Election Commission
ExxonMobil acquired Russian oil company Yukos Oil in 2003, greatly increasing their oil reserves. True or False
False
Which of the co-conspirators in the case of Martha Stewart was the first to admit the truth to government investigators?
Douglas Fanueil
Today, largely due to pressure by Rainforest Action Network, 69 of the world's largest banks subscribe to the
Equator Principles.
In 1999, or a little bit before that, Nike helped to start a voluntary CSR initiative called the ____________________ to enforce a code of conduct and monitoring scheme to end sweatshop labor.
Fair Labor Association
Agency heads of executive agencies can only be removed by the President for just cause.
False
The South Improvement Plan was a failure and a defeat for Mr. Rockefeller, from which he never recovered, either emotionally or financially. True or False
False
When the U.S. Supreme Court reviewed the case of Buckley v. Valeo, it said that the speech restrictions contained in the 1974 FECA Amendments shall be subject to strict scrutiny (because they were restrictions on political rather than commercial speech). To survive strict scrutiny, a speech law must pass two tests. Describe those two tests. (2 points)
First it must serve a compelling government interest, not simply respond to a passing need or solve a minor problem, but address a matter of highest importance. Second, a speech regulation must be narrowly tailored, that is, it must restrict on as much expression as is necessary to achieve its objective.
When General Motors spent $415 million to build a new transmission plant in Brazil in 2012 that was an example of
Foreign Direct Investment.
The theory that the sole responsibility of a corporation is to optimize profits while obeying the law.
Friedmanism
What famous philosopher set forth the principle known as the categorical imperative?
Immanuel Kant
Standard Oil of New Jersey was incorporated in 1882 by - Rex Tillerson - John D. Rockefeller - Edward Harriman - Mikhail Khodorkovsky
John D. Rockefeller
The Body Shop was originally founded on a progressive business model, but it was subsequently acquired by __________, a company founded on a traditional business model.
L'Oreal
In The Prince, philosopher _______________ argued that worthwhile ends justify efficient means; and that when ends are of overriding importance or virtue, unscrupulous means may be employed to reach them.
Niccolo Machiavelli
Does ExxonMobil have the largest daily crude oil output of any company in the world today? Yes or No
No
What percent of his yearly profit does Bjorn Soderberg invest in corporate social responsibility?
None of these.
The colorful populist Senator who, during the 1930s, gave speeches in which he used the metaphor of a "barbecue table" from which the "financial masters of America have taken...90 percent of the food placed thereon by God" was
Senator Huey Long.
What were Ms. Stewart's sales proceeds on the 3,928 shares of ImClone stock she sold on December 27, 2001?
approximately $228,000
Some Indian tribes were hopelessly mired in debt to the American Fur Company. One of these tribes was the Winnebagos. True or False
True
Under current law, individuals can funnel far more than $2,500 per election to an individual candidate they really want to see elected, such as a candidate for President.
True
Mother Jones rose to prominence as an organizer for the
United Mine Workers.
According to your text, the largest mining corporation in India is
Vedanta Resources.
What is your text's definition of the doctrine of the mean?
Virtue is achieved through moderation. Avoid behavior that is excessive or deficient of a virtue.
The Tillman Act is
a federal statute.
According to your text, basic rights that are now widely accepted and protected in Western nations include: (Check all that apply)
a right to be free from unequal application of laws a right to freedom of religious worship a right to be free from arbitrary, unjust police actions a right to privacy a right to freedom of expression
Rockefeller's "South Improvement Plan" was
a scheme in which the railroads raised their published rates for oil and kerosene shipments (applicable to all) but gave hefty secret rebates and drawbacks (proportional to shipments) to Rockefeller and his co-conspirators only.
According to your text, in the 40 year period from 2010 to 2050, Africa is projected to increase its population by
almost 1 billion, or 93%.
During the 5-year period before the accident the communications between UCIL's Bhopal plant and the Union Carbide parent in the United States were
almost nonexistent.
The decade of the 1920s was a decade of widespread ___________________________ American businesses and businessmen by the general public.
approval for and acceptance of
Indirect lobbying activity designed to build friendly relations with lawmakers, officials, and staff.
background lobbying
In an industrial society, having lots of children
becomes both unnecessary and a hindrance to a better lifestyle.
The act of a corporation cloaking its lack of social responsibility by insincere membership in the UN Global Compact.
bluewashing
Another emergency measure that might have been used on the night of the incident, transferring MIC from tank 610 to one of the other storage tanks, was foreclosed because
both of those tanks were too full, in violation the UCIL procedure manual.
An agreement to exchange something of value for an official act.
bribery
Fund-raising by an individual who solicits multiple contributions for a candidate, then "bundles" the checks and passes them on.
bundling
The study of good and evil, right and wrong, and just and unjust actions in business.
business ethics
The underlying idea or theory that explains how a business will create value by making and selling products or services in the market.
business model
In 1867, Mary Jones' husband and four children were killed
by yellow fever.
Marsha Dickson, Professor of Fashion and Apparel Studies at the University of Delaware, has surveyed consumers across the U.S. regarding their attitudes towards socially responsible business practices and has found that one of the biggest problems is that consumers
can't tell which companies' clothes were made responsibly and which weren't.
Mark Kasky's father ran a ______________ business.
car repair
The idea that actions are right or wrong in and of themselves, independent of and in spite of any consequences they might cause or do cause is called
deontological ethics.
The following four models are basic alternatives for seeing the BGS relationship. As abstractions, they oversimplify reality. Each model can be both descriptive and prescriptive ; that is, it can be both an explanation of how the BGS relationship does work and, in addition, an ideal about how it should work.
descriptive and prescriptive
The United States is considered a ________________ country.
developed
Brazil is considered a ______________ country.
developing
According to your text, Rockefeller always said that the greatest philanthropy of all was
developing the earth's natural resources and employing people.
The theory that ethical values are created by cultural experience. Different cultures may create different values and there is no universal standard by which to judge which values are superior.
ethical relativism
The theory that because human nature is everywhere the same, basic ethical rules are applicable in all cultures. There is some room for variation in the way these rules are followed.
ethical universalism
John D. Rockefeller was nicknamed "The Deacon" by his classmates because
he faithfully attended a Baptist church and memorized hymns.
In 1882 Rockefeller's company's main product was
illuminating oil.
According to your text, when tobacco shop proprietors refused to place any orders for his new hand-rolled cigarettes in St. Louis, Missouri, Duke got them to place orders by
instructing his agents to hire a young, redheaded widow to call on the tobacconists.
Voluntary, aspirational statements by MNCs that set forth standards for foreign operations.
international code
Foreign Direct Investment is
investment in plant, property, and equipment in a foreign country.
Rockefeller's South Improvement Plan was a plan to "rationalize" the oil refining business in the sense that
it would enable Rockefeller to buy out most or all of his competitors, eliminate the excess refining capacity, and thereby eliminate the cut-throat price competition that was eating into the profits of every oil refiner.
Protections and entitlements conferred by law.
legal rights
A brief statement of the basic purpose of a corporation.
mission statement
(The proposition that) punishment should be evenhanded and proportionate to transgressions.
retributive justice
A decree issued by an agency to implement a law passed by Congress.
rule
What does plutocracy mean?
rule by the rich
Through ________________, candidates attempt to get elected, and they collect campaign contributions so they can run expensive TV ads and convince voters to vote for them.
the electoral process
Philosopher G.E. Moore was an advocate of
the intuition ethic.
According to economic theory, what is the solution to the problem of public goods? (2 points)
the solution is to raise taxes above zero and have government provide the socially optimal amount of each public good.
Plutocracy is rule by the
wealthy.
A foundation is essentially an organization with a pool of money for giving to nonprofit and charitable causes.
True
A recent study of publicly held corporations entitled "Corporate Lobbying and Financial Performance" found that heavy spending on lobbying was positively correlated with both profitability and share price.
True
Abbott Laboratories built their current ethics and compliance program after the FBI uncovered a 10-year fraud perpetrated by employees of the company to cheat customers. Abbott ended up paying about $614 million in fines pursuant to this investigation.
True
In New York, in order to create demand for his new machine-rolled Cameo and Cross Cut brands, Duke hired people to visit tobacco shops and demand those brands. True or False
True
In State Farm Mutual Automobile Insurance Company v. Campbell, the Supreme Court suggested that a ratio of punitive damages to compensatory damages greater than 4-to-1 is suspect and a ratio of 10-to-1 or higher probably could never be justified.
True
In addition to publishing regulatory rules, federal administrative agencies publish even larger volumes of guidance in documents such as memoranda, circulars, compliance manuals, and advisory opinions.
True
In his 1850 book Social Statics, philosopher Herbert Spencer argued that every man's freedoms extend to just short of the point at which they would deny another person of one of their proper freedoms.
True
When Union Carbide CEO Warren M. Anderson arrived in Bhopal on Thursday, three days after the incident, the state government of Madhya Pradesh
charged him with criminal negligence, placed him under house arrest, and then asked him to leave the country.
In 1881, at the age of 24, James B. Duke took a major business risk by hiring 10 new workers to manufacture a new product, for which there was at the time little demand:
cigarettes
Google's ethics code contains a variant of the
disclosure rule.
(The proposition that) the benefits and burdens of company life should be distributed using impartial criteria.
distributive justice
One of the beliefs of the new Progressives is that businesses have too much power. This is consistent with __________ theory that we learned about in chapter 3.
dominance
On the night of the incident, the flare tower built to burn off toxic gases before they reached the atmosphere was
down for maintenance and inoperable.
On the night of the incident, the vent gas scrubber was
down for maintenance and inoperable.
So far, the Federal Aviation Adminstration has written ____________________ pages of rules on commercial space transport.
fewer than 1,000
The website ashleymadison.com makes its money by providing a forum for users to
find others interested in having an extra-marital affair with them.
When we judge our own actions and the actions of others using a different yardstick; and in particular, when we judge ourselves more leniently than we judge others, we are being
hypocritical.
What was the immediate financial benefit to Samuel Waksal of selling 135,000 shares of ImClone stock on December 27, based on insider information, rather than waiting until the information was known to the general public? Assume he sold his shares for an average price of $60 a share, but could have gotten only the December 31, 2001 opening price if he had waited until after the announcement.
$1,972,350
In the 1850s in the United States, only a handful of manufacturing facilities cost more than $1 million to build. By comparison, railroad lines were frightfully and unprecedentedly expensive to build. According to your text, many of the 30 U.S. railroad companies that completed track systems during that decade needed ___________________ in up-front capital to build their track system, and the smallest at least $2 million.
$10 - $35 million
In the United States, corporations give about _______ billion a year to charity.
$14-15
Bill Gates gave his foundation ___________ of Microsoft stock in 2000.
$16 billion
A study jointly funded by Unilever and Oxfam International found that, of the $633 million in value generated by Unilever Indonesia's operations between 2002 and 2006, only _________________ was captured by Unilever as profits. The rest went to other parties.
$212 million, or 34%
Since developing Ivermectin for use in humans, which Merck now calls Mectizan, Merck has given away more than 2.5 billion tablets of the drug in 37 countries at a cost of
$3.9 billion.
The constitutional arrangement that separates the legislative, executive, and judicial functions of the national government into three branches, giving each considerable independence and the power to check and balance the others.
(the doctrine of) separation of powers
A method of ethical reasoning in which insight comes from answering a list of questions.
(the) critical quest
According to Mr. Lilly, the wealth a business creates - is divided between two groups: the owners of the business and consumers. - is divided between two groups: the owners of the business and landowners. - is divided between two groups: the owners of the business and government. - goes entirely to the owners of the business. - is divided between three groups: the owners of the business, landowners, and consumers. - is divided between three groups: the owners of the business, landowners, and government. - is divided between three groups: the owners of the business, the consumers of the business's products, and the government.
- is divided between three groups: the owners of the business, the consumers of the business's products, and the government.
According to your text, the poor performance of the Russian economy in the early 1990s was due in large part to the fact that its ________________ were not well-developed. This illustrates the principle that free market economies depend on the support of many types of institutions. If any one of these classes of support institutions is absent or functioning poorly, the free market economy itself is likely to perform poorly. - leaders - labor and housing markets - banks and insurance companies - grocery and produce markets - stock and bond markets
- labor and housing markets
In the chapter 1 lecture, Mr. Lilly presented this image as his representation of which model of the Business, Government, Society relationship? - the Stakeholder Model - the Market Capitalism model - the Dominance Model - None of these. - the Countervailing Forces Model
- the Market Capitalism model
According to your text, in what year does the United Nations project world population to peak and then begin to decline?
2075
Of the years shown in figure 2.3, "World Poverty and Income Inequality since 1820," the year with the lowest proportion of the total population in poverty was
2007
In 2009, there were 713 deaths due to train operations in the United States. Of these, ____ were people trespassing on the railroad tracks at the time.
446
According to your text, the median age in Japan today is
45
According to Shell's Blueprint scenario, what level of greenhouse gas concentration (in the atmosphere) avoids catastrophic climate change?
450 parts per million
In 1980, the year Nike went public, it had a _____ global market share in the market for athletic shoes.
50%
In a period only slightly longer than one hundred years, European diseases introduced into the Americas by European explorers and settlers killed ________ of native Americans in South, Central, and North America.
50%-90%
Until the 1930s, most chicken farming in the United States was done on individual farms with relatively small flocks. In the 1920s for example, the average U.S. chicken farm raised only about _____ chickens at a time.
500
In 1997, an inspection report by the human rights group Vietnam Labor Watch reported that a supervisor had forced ____ women to run twice around the 1.2-mile factory boundary under a hot sun for failing to wear regulation shoes. Twelve of them fainted and required hospitalization.
56
Based on information compiled by Citizens Against Government Waste, in 1991 there were ____ earmarks in federal bills passed by Congress.
564
The share of world income going to the top 20% of the population increased from ____ in 1820 to ____ in 1992.
57%; 72%
In 1892, the American Tobacco Company, with James B. Duke as its president, controlled _____ of the U.S. market for cigarettes.
98%
Which of the following companies were founded based on a traditional business model? (Check all that apply)
AutoNation National City Corp. AGCO Corporation
As of 2008, per capita GDP in Cote du Ivoire is more than $7,000 per person per year.
False
In 1863, Rockefeller took $4,000 of the money he had earned from his share of the produce business and invested it in a
Cleveland petroleum refinery.
According to Mike Mesko, Director of Sourcing at Patagonia, workers are poorly treated at all factories in China. There are no "good factories" in China from a human rights standpoint.
False
According to Mr. Lilly, when you look at your authors' description of "destructive competition," you find that it is what John Stuart Mill called natural monopoly.
False
According to the authors of your text, American politics today is dirtier than the politics of most other nations and dirtier than in past eras.
False
According to the information presented in the lecture, public goods are "goods manufactured by government and given for free to those who need them."
False
John Jacob Astor was born in _____________ and emigrated to the United States in 1783.
Germany
The ____________________ is a set of uniform standards for sustainability reporting.
Global Reporting Initiative
__________________ believed that business is most responsible when it makes money efficiently, not when it misapplies its energy on social projects.
Milton Friedman
Under current law, there are no dollar limits on the overall amount of money that PACs may raise and spend in a given year or election cycle. There are limits on some of the individual components of their fundraising and spending, but no cap on the total amount raised or spent.
True
Under current law, wealthy individuals can write large soft money checks to 501(c) and 527 nonprofit groups, who can then use these checks to make issue ads and run them on television.
True
The four most basic traits of an ethical character - justice temperance, courage, and wisdom. They were identified by Plato.
cardinal virtues
According to your text, in the period following the American Civil War, the state legislatures of West Virginia and Kentucky were dominated by
coal companies.
Payments awarded to redress actual, concrete losses suffered by injured parties.
compensatory damages
(The proposition that) victims should receive fair compensation for damages.
compensatory justice
Training employees to follow rules in laws, regulations, and policy.
compliance approach
The idea that actions are right or wrong, in whole or in part, based on their consequences.
consequentialism
The Ends-Means Ethic is a form of
consequentialist ethical reasoning.
Direct interaction with government officials or staff in meetings, phone calls, or e-mail.
contact lobbying
Codes of conduct arise from many sources, including: (Check all that apply)
corporations. NGOs. international organizations such as the UN. industry associations. governments.
According to your text, since 1820, the proportion (percentage) of the world population in poverty has
decreased
An agreement between a prosecutor and a corporation to delay prosecution while the company takes remedial actions.
deferred prosecution agreement
The idea that actions are right and wrong in themselves independently of any consequences.
deontological ethics
The removal or substantial reduction of the body of regulation covering an industry.
deregulation
According to your text, the new global dimension of CSR makes it the duty of a multinational corporation to __________ as a way to overcome the failure of weak governments to fight human rights abuses, corruption, ecological insult, and poverty. [Select all that apply.]
extend its home country standards outward to its foreign operations and to its supply chain voluntarily compensate for regulatory deficits in the international regulatory framework and/or in the regulatory framework of the developing countries they operate in following a growing body of international norms enforced by various mechanisms of civil regulation
Congress has given ____________________________ the power to hold unlawful (federal) agency actions that are arbitrary, capricious, unconstitutional, in excess of agency jurisdiction, or unsupported by evidence.
federal courts
Elections for president, vice president, senator, and representative. The 435 representatives are elected every two years, the president and vice president every four years, and the 100 senators every six years (with one-third of the senators up for election biennially).
federal elections
An amendment to the Constitution added in 1791 as part of the Bill of Rights. It protects the rights of free speech, a free press, freedom to assemble or form groups, and freedom to contact and lobby government.
first amendment
The Dodd-Frank Act of 2010 creates ______ new federal agencies.
five
How long did PETA have to exert pressure on Burger King to get them to capitulate to their demands?
five months
According to the report "A Case Study of Unilever in Indonesia," of the $633 million of value created by Unilever's presence and activities in Indonesia in the year 2003, Unilever shareholders as a group captured the biggest fraction of that value, and the second-biggest fraction went to
government.
When business lobbyists encourage constitutents and members of the public to contact lawmakers or officials to advocate an action, this is called
grassroots lobbying.
Although the Tillman Act applied only to federal elections, about ______________ the states eventually passed similar laws banning corporate donations to candidates for state and local office.
half
How long did PETA have to exert pressure on McDonalds to get them to capitulate to their demands?
less than a year
According to the authors of your text, progressivism was ________ radical than populism and had __________ appeal.
less; wider
In a licensing arrangement, the ______________ typically agrees to abide by a long list of rules written by the _______________, such as only selling the product within a limited geographic area and keeping the quality of the product they manufacture above certain standards.
licensee; licensor
The Bipartisan Campaign Reform Act of 2002 (BCRA) was aimed at
limiting the use and influence of soft money contributions by corporations, unions, and wealthy individuals.
The economic policy of lowering tariffs and other barriers to encourage trade and investment.
liveralization
Advocating a position to government.
lobbying
Weatherford makes
machinery used for oil and natural gas drilling and provides services to energy companies.
In classical economic theory, a business is socially responsible if it: [Hint: Look on page 125 of the original text/129 of the custom text, then listen to what Mr. Lilly says while the slide entitled "1971: The Committee for Economic Development's Position Statement" from the chapter 5 lecture is showing.]
maximizes profits (which is what shareholders generally want them to do) while obeying the law.
In 1803 the territory of the United States ________________ with the Louisiana Purchase.
more than doubled
Which of the following is an example of a public good, according to Mr. Lilly? (Check all that apply)
national defense fire protection for a neighborhood police protection for a neighborhood
One reason the Norms on the Responsibilities of Transnational Corporations were never adopted by the UN Human Rights Commission is that
nations were skeptical of giving corporations the legal authority to enforce Western human rights standards in non-Western countries.
In Colonial days, Americans adopted the then-revolutionary doctrine of ________________, which held that all persons were created equal and entitled to the same opportunities and protections.
natural rights
According to your text, observed change in the business environment is the result of ______ deep historical forces that have been at work for centuries.
nine
An agreement in which U.S. attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime, cooperate, and compensate victims.
nonprosecution agreement
Sometime between 1997 and 2003, in response to growing public criticism of the conditions for workers in its subcontractors' factories, Nike became the only shoe company in the world to eliminate the use of _______________ in shoe construction.
polyvinyl chloride
Money that is unregulated as to source or amount under federal election law.
soft money
____________________ says that a thing is ethical if you would have no qualms revealing your actions to the tv-viewing public, close members of your family such as your parents, spouse, and/or children, or a judge.
the Disclosure Rule
The defendant in the first Alien Tort Claims Act case to go to trial was
the Drummond Company.aaaaaaaaaaaaa
In 1905, Mother Jones helped launch _________________________, a radical union dedicated to overthrowing American capitalism.
the International Workers of the World
Of the many utopian communities founded in the United States between 1820 and 1850, one of the longest lasting was
the Oneida Community in New York.
Conservatives tend to embrace: (Check all that apply)
the Organization Ethic.
Examples of deontological ethical principles include: (Check all that apply)
the Ten Commandments. the Golden Rule. the Categorical Imperative the Rights Ethic.
Investigations related to the Watergate scandals found that 21 corporations had violated __________________________ by giving direct contributions totaling $842,000 to the Nixon campaign.
the Tillman Act
The first major piece of U.S. legislation passed to curb the influence of corporations on politics in America was
the Tillman Act.
As of 2010, more corporations had signed on to _____________________________ than any other global corporate responsibility initiative.
the United Nations Global Compact
What is Mr. Lilly's definition of power?
the ability to affect something or someone
According to the position statement issued by the Committee for Economic Development in 1971, corporations' core or inner-circle of duties is to
their stockholders.
By the late 1860s, (daily) refining capacity in the United States was ________________ (daily) oil production. This caused vicious price wars (in the markets for refined oil products, such as lubricating oil and kerosene.)
three times greater than
In order to generate demand for cigarettes when he first started making them, James B. Duke
took out a full-page newspaper ad in Atlanta, Georgia of a famous actress holding Duke cigarettes in her outstretched hand.
According to your text, opponents of corporate social responsibility are found ______________________ of the political spectrum shown in Figure 5.1.
toward the left and right edges
To go into effect, a constitutional amendment requires a ______________ approval in both the House and Senate and ratification by ______________ of state legislatures within seven years.
two-thirds; three-fourths
When the United Auto Workers tested the 1947 Taft-Hartley Act by making independent expenditures on television ads in the 1954 elections, the Supreme Court __________ the independent expenditure ban in a close 5-4 decision.
upheld
Which of the following statements about the costs and benefits of federal regulation of business in the United States is best supported by the available evidence?
we cannot say with any degree of certainty whether the costs exceed the benefits or vice-versa.
According to economic theory, what should a government do when faced with a natural monopoly? (3 points)
when faced with a natural monopoly, the government should1. permitting one firm to supply the entire market but 2. making it illegal for that firm to charge more than a specified price. The government's economists will attempt to set the maximum price at the price the market would set if the industry had lots of competitors. If they can find this price, all the benefits of having competition in the market will be recaptured, at least according to the economic theory.
A nonviolent economic offense of cheating and deception done for personal or corporate gain in the course of employment.
white-collar crimes
According to Mr. Lilly, stakeholder theory essentially argues that
with great power to affect the welfare of others comes an inescapable moral duty to consider the effects of your actions on those others.
With the new Bonsack machines, Duke was able to cut his manufacturing costs from $.80 per thousand cigarettes to _____ per thousand.
$.30
According to lead prosecutor Karen Patton Seymour, every $1 decline in the stock price of Martha Stewart Living Omnimedia decreased Ms. Stewart's personal net worth by
$30 million.
In the U.S. in 2009, total philanthropic giving was
$304 billion.
In 2006, Warren Buffett gave ___________ worth of Berkshire Hathaway stock to the Bill & Melinda Gates Foundation.
$31 billion
In 1969, Phil Knight paid a design student at Portland State University _______ to design the Nike "swoosh" logo.
$35
As of the year reported on in the lecture (from tables 11.1 and 11.2 in the text,) General Electric had _____________'s worth of foreign assets; that is, assets located in a country other than the United States.
$401 billion
In late 1986 the Indian government filed a $3.3 billion civil lawsuit against Union Carbide in an Indian Court. In 1989, they settled this lawsuit for
$470 million.
If Martha Stewart had waited until the morning of December 31, 2001 to sell her shares, instead of selling on December 27, how much less would she have gotten for them?
$49,708
Soft money receipts by Democratic and Republican National Party committees increased from $87 million in 1992 to _____ million in 2002.
$495
Over his lifetime, Rockefeller gave approximately ____________ to charity.
$550 million
In 2009, the Federal Railroad Administration submitted a proposed rule setting standards for the design, functioning, certification, and maintenance of positive train control systems in the U.S. to the OIRA. It also submitted a 167 page study of the projected costs and benefits of positive train control. It estimated the benefits at __________________ and the costs at between __________________.
$608 to $931 million; $10 and $14 billion.
A little before 9:48AM on Thursday, December 27, 2001, Aliza Waksal sold all 39,472 shares of the ImClone stock in her Merrill Lynch account for $2,472,837, or approximately ________ per share.
$62.65
If you had invested $1,000 in GE stock when Jack Welch took the reins as CEO and held it for the 20 years he held that position, it would have been worth about
$67,490.
The Federal Aviation Administration has an annual budget of
$7.3 billion.
A study of the overall compliance burden calculated that the total cost of compliance with federal regulations in the year 2000 was _____ billion, or ____ percent of GDP. This is how much money business spent to follow all the rules imposed by federal agencies.
$876; 8.6
A set of 27 principles for sustainable development that emerged from the 1992 Earth Summit, a UN Conference of 172 nations and 2,400 NGOs held in Rio de Janeiro.
(the) Rio Declaration
A program that gave federal regulators power to exchange funds for an ownership interest in banks and corporations.
(the) Troubled Asset Relief program
(The proposition that you should) act only according to that maxim by which you can at the same time will that it should become a universal law.
(the) categorical imperative
A clause in Article I, Section 8 of the Constitution that gives Congress the power "to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." It has been interpreted to give the federal government wide power to regulate business.
(the) commerce clause
(The proposition that) business is like a game with permissive ethics and actions that do not violate the law are permitted.
(the) conventional ethic
(The proposition that you should) test an ethical decision by asking how you would feel explaining it to a wider audience such as newspaper readers, television viewers, or your family.
(the) disclosure rule
(The proposition that) virtue is achieved through moderation (so one should) avoid behavior that is excessive or deficient of a virtue.
(the) doctrine of the mean
(The proposition that) the ends justifies the means.
(the) ends-means
A daily government publication containing proposed rules, final rules, notices of public meetings by regulatory agencies, and presidential executive orders.
(the) federal reigster
Do unto others as you would have them do unto you.
(the) golden rule
(The proposition that) what is good or right is understood by an inner moral sense based on character development and felt as intuition.
(the) intuition ethic
(The proposition that one should) be loyal to the organization (for which one works or to which one belongs.)
(the) organization ethic
(The proposition that) when both good and evil consequences result from a decision, a manager has acted ethically if the good outweighs the evil, if his or her intention is to achieve the good, and if there is no better alternative.
(the) principle of double effect
A 1977 code of conduct that required multinational corporations in South Africa to do business in a nondiscriminatory way.
(the) sullivan prince
(The proposition that) each person should act fairly toward others in order to maintain the bonds of community.
(the) theory of justice
According to your text, among the institutions that support markets are: (Select all that apply) - regulatory institutions that protect the public and investors from dishonesty, danger, and fraud. - political institutions that make economic policy, collect taxes, provide social safety nets, and check and balance business power. - cultural institutions that impart values, habits, and norms to the members of society. - judicial institutions that protect property rights and encourage investment by making dispute resolution predictable. - financial institutions that mobilize capital for saving, borrowing and lending.
- regulatory institutions that protect the public and investors from dishonesty, danger, and fraud. - political institutions that make economic policy, collect taxes, provide social safety nets, and check and balance business power. - cultural institutions that impart values, habits, and norms to the members of society. - judicial institutions that protect property rights and encourage investment by making dispute resolution predictable. - financial institutions that mobilize capital for saving, borrowing and lending.
According to your authors' back of the envelope calculations, if KFC just barely meets its animal handling guidelines (so this is sort of a worst-case scenario,) then approximately ___________ of the chickens served in its restaurants each year either die from being boiled alive or are alive when they hit the throat cutter.
1.4 million
By converting itself from a U.S.-based corporation to a corporation chartered in Bermuda in 2002, Weatherford was able to lower its corporate tax rate from 35% to about
11%.
Soon workers sensed the presence of MIC. Their eyes watered. At _________ someone spotted a small, yellowish drip from overhead piping. The supervisor suggested fixing it after the regular 12:15AM tea break.
11:45 p.m.
In 1992, Jeffrey Ballinger published an article in Harper's Magazine critical of Nike. It revealed that an Indonesian woman named Sadisah earned $1.03 per day making Nike shoes. The Nikes she made sold for $80 in the United States, yet the cost of her labor per shoe was only
12 cents.
In ancient Greece, the largest factory in Athens employed _____ workers.
120
According to your text, scholars have done at least _______ studies to see if companies that are more socially responsible are also more profitable.
127
By the ______ large, dominant trusts (what today we would call monopolies) in many industries grew by absorbing competitors, colluding in cartels, and choking competition in other ways. This behavior would soon invite government regulation.
1880s
Congress passed the Sherman Antitrust Act to outlaw monopolistic practices by business trusts in
1890.
In _____, the Supreme Court ordered the breakup of the Standard Oil Trust under the Sherman Antitrust Act, holding that its monopoly position was an undue restraint on trade.
1911
Of the three years 1929, 1947, and 1996, the percentage of U.S. corporate wealth controlled by the 200 largest U.S. non-financial corporations was the highest in
1929
Union Carbide established an Indian subsidiary named Union Carbide India Ltd. (UCIL) in
1934.
The Equal Employment Opportunity Commission was established in
1964.
The Occupational Health and Safety Administration was established in
1970.
The MIC manufacturing unit at UCIL's Bhopal plant began operation in
1980.
In _____, under pressure from the Indian government, the management of UCIL's Bhopal plant was taken away from the American ex-pats (Union Carbide employees from the United States) who had been running it up to then and turned over entirely to Indian managers.
1982
In _____, an Indonesian union newspaper published a study of bad working conditions in a plant making Nike footwear.
1988
In _____ Nike adopted a "Code of Conduct" requiring its contractors to certify compliance with local minimum wage, child labor, health, safety, worker's compensation, forced labor, environmental, and discrimination laws.
1992
Of the years shown in figure 2.3, "World Poverty and Income Inequality since 1820," the year with the most unequal distribution of income, as measured by the Gini index, was
2007
Federal government spending in the United States as a percent of GDP has increased from about 3% in 1930 to somewhere between ___________ percent today.
25 and 28
A little over a month after the South Improvement Plan was implemented, Rockefeller controlled a little more than _____ of U.S. oil refining capacity.
25%
The IBM Global Business Services group recently conducted a study examining the corporate social responsibility policies of around ____ companies.
250
In 2009, there were 713 deaths due to train operations in the United States. Of these, ___ were train passengers killed in accidents.
3
General Mills gives a higher-than-average ___ percent of its pretax domestic (U.S.) profits to charity each year.
5
According to your text, about _____ banks, pension funds, hedge funds and insurers have signed the Principles for Responsible Investing.
560
Between 1860 and 1890, the capital invested in manufacturing plants in the United States increased by
650 percent, from $1 billion to $6.5 billion.
In 2008, the Wall Street Journal checked the degree claims of 358 senior executives and directors at publicly traded companies and found ____ cases of false claims.
7
In 1997, a disgruntled Ernst & Young employee leaked a confidential spot inspection report on a Vietnamese shoe factory. It showed violations of Vietnamese labor law and said that ____ percent of the employees suffered respiratory problems from breathing toxic vapors at levels that violated both Vietnamese and U.S. standards.
77
Assume the following are correct regarding the Anheuser-Busch InBev company as of 2010. Calculate their transnationality index (TNI.)
87.9%
Between 1820 and 1992, the average real per capita income of the top 20% of the population increased
9.7-fold.
According to both the chapter 11 lecture and the text, of the 100 largest transnational corporations in 2008, ____ were headquartered in the United States, Europe, or Japan.
90
By 1882 Rockefeller's company produced ___ percent of the nation's refining output.
90
At the peak of its success, Standard Oil had more than ___ of the American oil market. - 70% - 50% - 60% - 80% - 90%
90%
According to your text, James B. Duke
All of these.
During the late 1960s and early 1970s, social critics attacked American business for ______________________, and found an increasingly receptive audience.
All of these.
According to your text, Nike has really cleaned up its act because of all the negative publicity activists have been able to generate about conditions in its subcontractors' factories. Labor conditions are now considered acceptable in all those factories, even by the activists' own standards.
False
According to your text, ideologies are (individual) enduring beliefs about which fundamental choices in personal and social life are correct. True or False
False
According to your text, lobbyists perform no valuable functions. All they do is distort political outcomes in a way that is contrary to the principles of democracy.
False
According to your text, most business lobbyists routinely engage in dishonesty. They simply can't be effective in their jobs otherwise.
False
According to your text, most large multinational corporations follow only one code of conduct.
False
Alexander Hamilton, the United States' first secretary of the treasury, believed that an agrarian economy of landowning farmers was the ideal social order. True or False
False
Alexander Hamilton, the United States' first secretary of the treasury, wrote that God placed genuine virtue in farmers, His chosen people. True or False
False
Although global population growth is slowing, it will be highest in the most-developed regions, narrowing the wealth gap between high-income and low-income countries. True or False
False
Anita Roddick was a huge fan of the ways that large companies have been integrating corporate social responsibility into their strategies and practices since the early 2000s. She felt it was a powerful force for good in the world.
False
As of 2008, per capita GDP in Burundi is more than $7,000 per person per year.
False
At ExxonMobil, having fun is part of the job. True or False
False
Because corporations are treated as legal persons, they have the right to invoke the Fifth Amendment when prosecutors ask them to turn over documents related to a crime, and refuse to turn over the documents.
False
Because the costs were greater than the projected benefits, the OIRA rejected the FRA's proposed 2009 rule regarding positive train control and the rule never went into effect.
False
Because the country was in a severe depression, the U.S. Supreme Court was very supportive of Franklin D. Roosevelt's New Deal reforms from the very beginning.
False
Between 1820 and 1992, the average real per capita income of the top 20% of the population increased dramatically, while that of the bottom 80% fell slightly. True or False
False
Both executive agencies and independent regulatory commissions must submit copies of proposed rules to OIRA, the Office of Information and Regulatory Affairs, for review.
False
CEOs of corporations and other corporate employees never stoop to engaging in lobbying personally. They always hire professional lobbyists to do it.
False
Captain Hazelwood was on the bridge when the ExxonValdez oil tanker ran aground in Prince William Sound in 1989. True or False
False
Charitable giving is an example of an externally-mandated action taken by a corporation in pursuit of the fulfillment of its social responsibilities.
False
China spends a much higher share of its GDP on government spending than the United States does. True or False
False
Companies participating in the OECD Guidelines for Multinational Enterprises must post an annual progress report on the Global Compact website.
False
Contributions by labor union PACs more than tripled between 1986 and 2008.
False
During the year the incident took place, the safe operation of UCIL's Bhopal plant was closely supervised by employees of Union Carbide, UCIL's American parent corporation.
False
Evidence from brain research suggests that neural circuits involved in both emotions and reasoning are activated when a person considers an ethical dilemma, but that the rational circuits tend to dominate the process.
False
Historians generally believe that, during the period 1865-1890, large corporations and their leaders had very little influence over the actions of federal legislators. Rather, our government was a government of the people, by the people, and for the people during this period.
False
In 2009, an expansive four-year study entitled "Lobbying and Policy Change: Who Wins, Who Loses, and Why" found incontrovertible evidence that the billions of dollars corporations spend on lobbying efforts and campaign contributions translate directly into political influence in Washington. The corporations who spent the most almost always got what they wanted from the federal government, whereas environmental and other public interest groups, which have far smaller budgets, rarely got what they wanted.
False
Italian philosopher Niccolo Machiavelli was an advocate of the Might-Equals-Right ethic.
False
Jack Welch was a big believer in having a diverse workforce. In 2000, of the top 31 GE executives, almost 40% were women and 30% were non-white.
False
Jack Welch was a poor student at the University of Massachusetts at Amherst. He barely graduated.
False
Jack Welch's father was a loud, overbearing man who dominated his wife almost to the point of abusing her.
False
John D. Rockefeller never concealed the fact that he had acquired an oil refiner. If he owned a firm, everybody knew it. True or False
False
John Jacob Astor gave away an immense share of his wealth to charity before his death in 1848. True or False
False
KFC owns the farms where the chickens served in its restaurants are raised. True or False
False
Like the Old World theologians, Benjamin Franklin taught that the accumulation of personal wealth was sinful. True or False
False
Lobbyists are not permitted to assist in drafting proposed legislation.
False
Lobbyists are not permitted to testify at legislative hearings conducted in the House or Senate.
False
Lobbyists are not permitted to testify at rule-making hearings conducted by federal administrative agencies.
False
Lobbyists never meet with a legislator's staff.
False
Lobbyists never read documents, monitor agency actions, or write papers to support their positions.
False
Malcolm L. Stewart, the government's lawyer in Citizens United v. Federal Election Commission, did an excellent job in presenting his case to the Supreme Court.
False
Members of Congress typically have appointments booked at 15- to 30-minute intervals.
False
Merck, a U.S.-based company gave slightly more to charity in the United States in 2010 than they gave in all other countries combined.
False
One hundred percent of the people infected with river blindness are blind.
False
Positive train control allows the engineer in the cab to directly control his own train without interference from outside operators.
False
Rockefeller's South Improvement Plan was illegal. True or False
False
So far, activists in progressive NGOs have been very satisfied with the effectiveness of the OECD Guidelines for Multinational Enterprises in the countries that have adopted them. Their only wish is that more countries would adopt the guidelines.
False
St. Thomas Aquinas believed that if a person earned great wealth through hard work it was a sign of God's approval. True or False
False
The "Case Study of Unilever in Indonesia" provides evidence for the proposition that, if all a company does is make goods and/or services at a profit and obey the law, all of the value created by the company will be captured by the shareholders of the company as profit. No one else will receive any benefit.
False
The "Footprint Chronicles" is a project at Patagonia aimed at finding ways to more effectively hide from their customers potentially embarrassing information about Patagonia's supply chain and specifically how the workers who make Patagonia clothes are treated and paid in the factories of its suppliers.
False
The (original) Federal Election Campaign Act of 1971 limited individual contributions to candidates for federal elective office in a variety of ways.
False
The Environmental Protection Agency is one of the smallest federal agencies in the United States in terms of its annual budget.
False
The House ethics committee, acting on the evidence gathered by congressional staff on the activities of the seven members of the defense appropriations subcommittee, publicly censured Representative Peter Visclosky for apparently trading earmarks for campaign contributions, which is illegal, while exonerating the other six members.
False
The Tillman Act limited the amounts that wealthy individuals could give, from their own money, to the reelection campaigns of candidates for federal political office per candidate per election.
False
The U.S. Chamber of Commerce and the National Association of Manufacturers find themselves on opposite sides of most issues.
False
The United States spends a much higher share of its GDP on government spending than France does. True or False
False
The authors of your text are enthusiastic supporters of the conventionalist ethic.
False
The authors of your text subscribe to the theory of amorality.
False
The breakup of the Standard Oil Trust by the Supreme Court was a financial disaster for Rockefeller. True or False
False
The categorical imperative is compatible with consequentialism.
False
The commissioners in independent commissions can be removed by the President for any reason.
False
The conventionalist ethic is compatible with the theory of moral unity presented in chapter 7.
False
The country of Botswana is located in the continent of Asia.
False
The great political reforms of the Progressive movement ended business's political dominance, and a new era of fair and balanced representation in government was ushered in, with business no longer the dominant player.
False
The only actions of others we find objectionable are those that produce a clear and present reduction in our personal welfare.
False
The populist movement had strong support from the urban middle class and professionals. True or False
False
The teachings of Christianity are most consistent with the theory of amorality.
False
Thomas Jefferson, the United States' first Secretary of State, believed that industrial growth would increase national power and designed a grand scheme to promote manufacturing and finance. True or False
False
Thomas Jefferson, the United States' first Secretary of State, was an arrogant, aloof leader who mistrusted the wisdom of common citizens. True or False
False
Toward the end of the middle section of chapter 8 (specifically, on pages 258-259 of the custom text or 252-253 of the original text,) the authors of your text lean toward the conclusion that deontological ethics will be more useful to the modern business manager than consequentialism.
False
Under House rules, a registered lobbyist may take a legislator or his staff out for a meal (at a restaurant) and pay for that meal provided that: 1) Congressional business is discussed at the meal, 2) the cost per person does not exceed $50, and 3) the lobbyist fully reports the meal's cost, purpose, and attendees to the House ethics committee within 30 days of the meal.
False
Under House rules, members of the House and their staffs cannot accept any gifts from persons who are not registered lobbyists, no matter how slight their dollar value.
False
Under current law, if a corporation establishes a Political Action Committee (PAC), it may contribute up to $1,000 per candidate and up to $25,000 per election of its own money to candidates through that committee.
False
When Rockefeller saw the public's reaction to the South Improvement Plan, it caused him to revise his opinion about the ethical correctness of the plan. True or False
False
When WorldCom went bankrupt in 2002, it was the second-largest bankruptcy in American history. Only the Enron bankruptcy was larger.
False
When the South Improvement Plan was implemented and people learned the details of the plan, most people liked it - they were in favor of it - especially in the oil regions. True or False
False
What novel, three-part definition of commercial speech did the California Supreme Court create in its decision in Kasky v. Nike in 2002? (3 points)
For speech to be commercial speech, it had to (1) come from a business, (2) be intended for an audience of consumers, and (3) make representation of facts related to products.
GDP stands for
Gross Domestic Product.
Stonyfield Farm was originally founded on a progressive business model, but it was subsequently acquired by __________, a company founded on a traditional business model.
Groupe Danone
According to David Rothkopf, the 6,000 members of the transnational power elite are most likely to have earned their degrees from
Harvard, Stanford, or the University of Chicago.
People who subscribe to (agree with) the view that great leaders change the course of history might say that it was ____________________ of the American Tobacco Company who turned cigarette smoking from a local custom confined largely to the American South to a worldwide health disaster.
James B. Duke
What testimony did Larry Stewart, an expert ink analyst, give at the criminal trial of Martha Stewart and Peter Bacanovic? Why was this "important evidence for the prosecution?" (2 points)
Larry Stewart's testimony at the criminal trail was two pens had been used on the work sheet. One was made by a cheap paper mate pen, the other by an expensive foreign pen. This provided the evidence that the @60 was added after December 27.
Examples of multinational firms that have taken path B toward internationalization include: (Check all that apply)
McDonalds KFC Coca-Cola
The ______________ Movement of 1870-1896 was a movement primarily composed of farmers who wanted, among other things, government-ownership of railroads to stop them from using their monopoly power to charge exorbitant rates to ship crops.
Populist
Which country ranked #1 in the World Bank's 2011 Ease of Doing Business rankings? (Note: In the video lecture, the relevant slide is mislabeled 2010. This was corrected in the PowerPoint version of the lecture.)
Singapore
_______________________ has invested at least $1 billion to develop its La Loma mine in northeast Columbia. This is an example of foreign direct investment.
The Drummond Company
The idea that actions are right or wrong, in part or in whole, based on their consequences is called
The idea that actions are right or wrong, in part or in whole, based on their consequences is called
Rich Applebaum, Professor of Sociology at U.C. Santa Barbara, says that to solve today's global labor problems, we will need a three-pronged approach, which he calls a "three-legged stool." What are the three legs of the stool? Which leg is the weakest and why? (5 points) [Hint: Rich is interviewed in "guest lecturer video #5," the last guest lecturer video within the chapter 6 lecture. The title of that video is "What's Done in Our Name? Social Responsibility and the Patagonia Supply Chain."]
The three legs of the stool are international law regulation (treaties, standards, etc.), the right of workers to create unions and the right to go on strike, and the third and weakest leg is corporate social responsibility. This is because most businesses are not going to be transparent and in order for a business to be corporately responsible they need to be transparent.
What three policies did Congress require the government-run trading posts to follow in their dealings with the Indians?
The three policies that Congress required government trading posts to follow while dealing with Indians were that trade goods be sold at cost, the use of liquor was prohibited, and that payment of fair prices for furs.
What two desirable qualities does a Pareto Optimal allocation of resources have? Explain or define these qualities. (4 points)
These two desirable qualities are 1. Allocative efficiency: it would not be possible to tweak the mix of goods and service made in such a way as to make one person better off without making someone else worse off2. Productive efficiency: all goods and services will be made as cost effectively as possible without compromising quality.
In 1907, progressive reformers were successful in getting the _____________________ Act passed, making it a crime for banks and corporations to directly contribute to candidates in federal elections, and this is still the law today.
Tillman
________________ usually try to remain below the public's radar and influence politics through private, direct contact with legislators and their staffs. (Check all that apply)
Trade associations
According to Mr. Lilly, the period immediately following the Civil War (1865-1900) was the worst the U.S. has ever seen in terms of monopoly power, abuse of labor, and corruption of politics by moneyed interests. True or False
True
According to the authors of your text, before World War II, most foreign direct investment was made in poor countries by multinationals engaged in plantation agriculture, mining, or petroleum extraction.
True
According to the authors of your textbook, the text you are reading is a journey into the criteria for answering questions such as: 1. When is a corporation socially responsible? 2. How can managers know their responsibilities? 3. What actions are ethical or unethical? and 4. How responsive must a corporation be to its critics? True or False
True
According to the chapter 4 lecture, PETA (People for the Ethical Treatment of Animals) is a new progressive organization. True or False
True
According to the chapter 4 lecture, the Occupy Wall Street movement is a new progressive movement. True or False
True
According to your authors, Plato believed that insatiable appetites existed in every person. These could be controlled only by inner virtues painstakingly acquired through character development. The pursuit of money was one such appetite. True or False
True
According to your authors, in agrarian societies, the desire for riches was suspect due to the popular belief that there was only a fixed and finite amount of wealth to be had. If one person had more, other people would by necessity have less. True or False
True
According to your text, civil society advocates global income redistribution, among other things. True or False
True
According to your text, ideologies are locked in a Darwinian struggle. Many once strong ideologies such as socialism and monarchy have few if any adherents today, having been swept aside by competing ideologies such as capitalism and democracy. True or False
True
According to your text, in Japan, corporate responsibility means paternalism toward workers and there is little tradition of philanthropy.
True
According to your text, in the future, non-Western populations will be stronger economically, militarily, and politically (than they are today) and will push to expand their influence. This may result in a shift in values away from Western values and ideologies and toward non-Western values and ideologies. True or False
True
According to your text, the global justice movement, also known as the antiglobalism movement, first achieved high visibility in 1999 when 50,000 activists gathered to protest World Trade Organization meetings in Seattle. True or False
True
According to your text, values and ideologies are among the ideas present in a society. True or False
True
After the Austin v. Michigan Chamber of Commerce decision, the prohibitions on corporate contributions and corporate independent expenditures remained in place.
True
After the Civil War, business money went disproportionately to the Republican party, which promoted a doctrine of laissez-faire capitalism.
True
After the Great Chicago Fire of 1871, Mary Jones attended meetings of the Knights of Labor, an early union. Through these associations and her own prior experiences, she came to the conclusion that workers were enslaved by their corporate employers and by the corrupt politicians and judges who did their bidding. True or False
True
After the comment period ends, regulators must reconsider and rewrite the regulation to incorporate public comments.
True
Although corporations are barred by the Tillman Act from contributing from their treasuries to federal campaigns, a series of advisory opinions issued by the Federal Election Commission in 1978-79 opened the door for them to give unlimited soft money contributions to the national Democratic and Republican parties.
True
Although ethical stories and dilemmas activate the same regions of experimental subjects' brains, there is considerable individual variation in perceptions of right and wrong.
True
An unwritten rule of Washington politics is that campaign contributions entitle the corporations or lobbyists who make them to access in the form of more meetings with the Congressman per year than persons who have given no contributions.
True
As a lobbyist, Magliocchetti advised his clients to open facilities in the sponsoring member's districts to create jobs there when earmarks were funded.
True
As part of their competitive strategy, the fur companies tended to trap all the beaver in a given area as quickly as possible so that none would be left for their competitors. This caused beaver populations to drop to near zero in many areas in the United States. Once all the beaver in a given area had been taken, the trappers would move on to another area. True or False
True
During World War II, American industry wrapped itself in patriotism, and by the end of the war, Americans were far more favorably disposed toward business than they had been during the 1930s. True or False
True
During the Civil War, some corrupt army purchasing agents accepted bribes to purchase shipments of bad meat at full price.
True
During the late 1960s and early 1970s, liberals in Congress got a lot of new laws passed and a lot of new federal agencies created to protect nature, consumers, and workers from abuses by businesses. True or False
True
During the period 1988 to the present, some companies wearied of politicians who pressured them for money, and shut down their political action committees.
True
Epictetus argued that inner virtue was a higher reward than external riches or worldly success.
True
Even today, The Coca-Cola Company only produces 21 percent of its "unit case volume," the measure it uses to calculate output, in its own syrup manufacturing and bottling plants. The rest is produced by separate businesses called "bottlers," some of which are partly owned by The Coca-Cola Company, and some of which are not.
True
Executive pay is linked to environmental performance at British Petroleum and Dow Chemical.
True
For the licensor, licensing involves entering into a contract with a licensee, in which the licensee agrees to pay you a royalty in exchange for the right to manufacture and sell your branded products in a given territory or store.
True
GE manufacturing plants in New York stopped releasing polychlorinated biphenyls into the Hudson River when they were outlawed in 1977.
True
Immanuel Kant was an extreme perfectionist. He walked the same route each day at the same time, appearing at places along the route so punctually that neighbors set their clocks by him.
True
In 1916, Mother Jones caused a riot by 200 wives of streetcar workers with an inflammatory speech, telling them "You ought to be out raising hell." True or False
True
In 2009, the Brotherhood of Locomotive Engineers and Trainmen sued Metrolink, seeking a court order to prevent it from installing video cameras in its locomotive cabs. It argued that the cameras were punitive in nature and breached the right to privacy found in the California constitution. It lost this lawsuit.
True
In 2010, the House of Representatives investigated seven members of the defense appropriations subcommittee. Magliocchetti's clients had given these seven members $834,000 in campaign contributions, and had received $245 million of earmarks from them.
True
In U.S. legal tradition, so-called commercial speech receives less protection from restriction by government than other types of speech, such as political speech.
True
In early America, localities set their own time according to the sun's overhead transit, but this resulted in a patchwork of time zones that made railroad scheduling difficult; so in 1882, the General Time Convention met and standardized the time of day. True or False
True
In the 1930s, many U.S. business executives hated President Franklin D. Roosevelt. They said he was bringing communism to the United States with his New Deal reforms, such as the establishment of the Social Security system.
True
In the 1960s, several states tried to pass laws requiring warning labels on cigarette packs. Each state required a different warning. The tobacco companies supported a bill in Congress that, when passed, required a uniform warning label on packs of cigarettes throughout the country and made the regulation of warning labels on cigarettes off-limits to state governments.
True
In the 1976 case of Buckley v. Valeo, the U.S. Supreme Court upheld the FECA limits on individual contributions, and permitted the prohibitions on corporate contributions (to political candidates' election campaigns) and corporate independent expenditures (in support of those candidates) to remain in place, but it struck down FECA's limits on independent expenditures by individuals.
True
In the 1980s, a fierce human rights coalition pushed foreign corporations out of very profitable markets in apartheid-era South Africa. True or False
True
It is a crime for a member of the House of Representatives to exchange an official act, such as sponsoring an earmark, for a campaign contribution.
True
Jack Welch believes that managers should confront reality and adapt to the world as it is, not as they wish it to be.
True
Jack Welch didn't believe his company owed a duty of loyalty to its employees. He wanted all GE managers to prove their value every day, and said people who knew they could be fired worked harder.
True
Jack Welch was born in 1935 to working-class Irish parents in a small Massachusetts town.
True
James B. Duke's American Tobacco Company was one of the firms whose stock price was included in Charles Dow's original index of stock market performance in 1896.
True
John D. Rockefeller could have served in the Union army during the Civil War if he had chosen to, but chose instead to pay someone else to serve in his place. True or False
True
Juries are more inclined to convict corporations than individuals.
True
Lewis Cass, U.S. Secretary of War in 1831 and the man in charge of enforcing Congress's 1832 prohibition against bringing alcohol into Indian territories, was paid $35,000 by the American Fur Company between 1817 and 1834. It is possible Secretary Cass was deliberately lax in his enforcement of this law because of these payments. True or False
True
Lies harm others by causing them to act in a way which, unbeknownst to them, is contrary to their own best interests.
True
Life in high density growing environments frustrates chickens' natural instinctive behaviors. True or False
True
Like populism, the progressive movement was, at its root, an effort to use government reforms to limit and control perceived abuses of power by big business. True or False
True
Lots of companies include the disclosure rule as a helpful guide to their employees in their ethics training brochures or manuals.
True
Managers at ExxonMobil face a Darwinian promotion system. True or False
True
Many companies now use integrity tests to predict whether job applicants are inclined to behaviors such as rule breaking, fraud, cheating, and theft. Over many years these tests have been shown to work well.
True
Many companies recognize the intuition ethic in their conduct codes.
True
Michael Posner, President of "Human Rights First" would like to see consumers reward the leader companies that decide to be among the first to become transparent regarding labor practices in their suppliers' factories.
True
Most corporate PACs contribute less than $50,000 during each two-year election cycle.
True
One of the competitive methods used by employees of the Standard Oil Trust was to bribe railroad agents to deliberately misroute the shipments of competitors. True or False
True
Outgoing U.S. President Dwight D. Eisenhower warned the nation in his farewell speech that, unless we guard against it, defense contractors are likely to obtain an inappropriately large degree of influence over our national spending decisions.
True
Over 100 firms became signatories to the Sullivan Principles.
True
Political etiquette (in the U.S.) requires that lobbyists and elected officials not discuss legislation and campaign contributions in the same meeting.
True
Political etiquette requires that campaign contributions and prospective legislative actions should not be discussed at the same meeting, nor should prospective legislative actions be discussed at a meeting where a campaign contribution is given.
True
Public announcements of big corporate mergers or acquisitions can trigger rapid, large, upward price movements in the shares of the acquisition target.
True
Railroads pioneered professional management teams, division structures, and modern cost accounting - all innovations adopted later by other industries. True or False
True
Real GDP is inflation-adjusted GDP. True or False
True
Reduction in federal oversight of the savings and loan industry (in the early 1980s) led to corruption and fraud costing taxpayers more than $100 billion (in the '80s and '90s.)
True
Rockefeller was an intense negotiator who drove a hard bargain. True or False
True
Rockefeller's employees at the Standard Oil Trust were fanatical about customer service. True or False
True
Shortly after Roosevelt revealed his plan to increase the number of justices in the Supreme Court from nine to 15, the U.S. Supreme Court reversed its position on the Commerce Clause, upholding the National Labor Relations Act in its first decision of 1937.
True
Since 1993 there have been more than 150 DPAs and NPAs, most with well-known companies including Aetna, Boeing, Chevron, Fiat, Monsanto, Pfizer, and Sears.
True
Since 2009, Bill Gates and Warren Buffett have persuaded at least 40 other billionaires besides themselves to pledge to give the majority of their wealth to charity, either during their lifetime or at death.
True
Socrates introduced the idea of a moral law higher than human law, an idea that activists today use to demand supralegal behavior from transnational corporations.
True
Sometime after 1969 but before 1975, the Indian government pressured UCIL to stop importing chemical ingredients. It was in response to this pressure that the company proposed to manufacture methyl isocyanate (MIC) at the Bhopal plant rather than importing it from Union Carbide facilities in other countries.
True
St. Augustine and St. Thomas Aquinas both taught that one's behavior both in business and in other pursuits had to be consistent with God's will and commandments for one to achieve salvation and life after death.
True
St. Thomas Aquinas, the Roman Catholic Church's most definitive theologian during the middle ages, exhorted merchants to charge a just price, a price just high enough to maintain them in the social station into which they had been born. True or False
True
Standard Oil's (abuse of its) power so offended public values that in 1890 Congress passed the Sherman Antitrust Act (specifically) to outlaw its (type of) monopoly. True or False
True
The 2010 defense spending bill contained 1,100 earmarks.
True
The 2010 defense spending bill contained an earmark for 10 cargo planes the Air Force did not request. These types of earmarks are usually added by legislators to create jobs in their districts and states.
True
The 2010 defense spending bill contained an earmark for an extra destroyer the Navy never asked for. These types of earmarks are usually added by legislators to create jobs in their districts and states.
True
The Bill & Melinda Gates Foundation has spent more than $3.8 billion on basic vaccinations for newborns in countries with low GDPs, preventing an estimated 3.4 million deaths so far. That's about $1,118 per prevented death.
True
The Chinese commission that manages state-owned firms for the central government recently issued a set of CSR guidelines for the companies it oversees.
True
The Might-Equals-Right Ethic goes beyond the Conventionalist Ethic by saying that anything I have the power to do in business is ethical to do - even things that are illegal.
True
The New Progressives seek to enact modest reforms through government. True or False
True
The authors of your textbook believe the Socialist Party (of the United States) made a tactical mistake when they labeled World War I an imperialist war and said that labor would refuse to shed its blood for wealthy capitalists. True or False
True
The coal companies used ruthless tactics to fight the United Mine Workers' attempts to unionize coal miners. Miners who shook a union organizer's hand were fired, and hired thugs beat up troublemakers. True or False
True
The extensive cooperation between genetically unrelated individuals that characterizes human society is rare in the rest of the animal kingdom.
True
The extensive cooperation between genetically unrelated individuals that characterizes human society would not be possible without the human capacity both to experience feelings about social and ethical norms and to grapple with ethical principles rationally.
True
The money that corporate PACs give to candidates is mostly collected from the employees and managers of that corporation, and not one penny of it can come from the corporation's own funds.
True
The toxic gas cloud released at a Union Carbide pesticide plant in Bhopal India in 1984 is the worst sudden industrial accident ever in terms of human life lost.
True
True or False?: Any California citizen can sue a corporation on behalf of the public for an unlawful business practice.
True
Under House rules, a trade association or other lobbyist can, as often as they like, pay for and provide food for one or more legislators, as long as the food is provided at a private reception (not a restaurant,) no forks are present, and certain foods associated with full "meals," such as hot dogs, are not served.
True
Under current law, corporations can give unlimited amounts of their own money to so-called 501c and 527 organizations, who can then use the money to develop and buy TV time for advertisements advocating the election or defeat of specific candidates.
True
Vedanta claims to be a socially responsible corporation and its sustainability reports seem to confirm this.
True
When Jack Welch first started working at General Electric, he was so aggressive and competitive in weekend softball games with his co-workers that he alienated them, so he stopped going to the games.
True
When Rockefeller first entered the oil business, the Pennsylvania oil regions were the only source of crude oil (at least in America.) True or False
True
When the Civil War between 1861 and 1865 decimated the power base of Southern agriculture, a major counterweight to the power of Northern industry vanished.
True
Years ago philosopher Sissela Bok defined a lie as an intentionally deceptive message in the form of a statement.
True
Google.org, the business unit of Google devoted to charity work, focusses its attention on three primary problems. What are they? (Check all that apply)
climate change emerging pandemics energy shortages
When a country goes through the Demographic Transition, its _____________ first declines; and then about 40 years later its _____________ declines.
death rate; birth rate
The study of good and evil, right and wrong, and just and unjust.
ethics
A zero percent Gini index on income in the world population would indicate that
everyone's income in the world is exactly the same.
A government in which powers are divided between a central government and subdivision governments. In American government, the specific division of powers between the national and state governments is set forth in the Constitution.
federal system
Generally, a company that has a monopoly on a product will end up keeping a __________ share of the wealth it creates per time period than a company that faces stiff competition.
greater
More than half of the increase in government spending as a percent of GDP in the U.S. from 1930 to 2012 is explained by increases in
health care, pensions, and welfare programs.
Master ethical principles that underlie all other ethical principles. All variations of ethical principle must conform to them.
hypernorms
The exchange of a gratuity for an official action in the past or future when that action might have been or might be taken even without the exchange.
illegal gratuity
According to Mr. Lilly, the Stakeholder Model of the Business, Government, Society relationship
is the newest of the four models presented in chapter 1 and was pretty much invented in 1984.
The Cultural Environment: According to your text, the culture of the advanced West promotes a core ideology of
markets, individualism, and democracy.
In the five years from 1980 to 1984, although more than 1,000 Indians were employed at UCIL's Bhopal plant, only _______________ was employed there and they left in 1982.
one American
A 100% Gini index on income for the world population would indicate that
one person in the population earns all the income and everyone else in the population has zero income.
How long did PETA have to exert pressure on Albertson's to get them to capitulate to their demands?
one week
According to your text, in the 1860s, steamship technology cut the time required for a trans-Atlantic voyage down from one month to
one week.
The National Association of Manufacturers is a
peak association.
According to Mr. Lilly, two good examples of technologies developed by business that produced benefits beyond those intended by business and beyond what the firms could capture as profits are ___________ and the Internet.
railroads
A government entity that invests the savings of a nation.
sovereign wealth
_____________________ is closely related to the Intuition Ethic.
the Disclosure Rule
The (philosophical) basis of all cost-benefit analysis is
the Utilitarian Ethic.
In Rawls' Theory of Justice, the first rule for the design of a just society is "each person is to have an equal right to the most extensive basic liberty compatible with a similar liberty for others." This rule is very similar to one of the other ethical principles we learned about in chapter 8. Which one?
the principle of equal freedom
After the Supreme Court's Citizens United v. Federal Election Commission decision,
the prohibition on corporate contributions to the re-election funds of federal candidates remained in place but the prohibition on corporate independent expenditures was overturned.
What two characteristics do Public Goods have?
they are non-excludable and non-rivalrous
During the presidential election of 1896, candidate William McKinley raised __________________ campaign money as/than any prior candidate had ever raised in U.S. history.
twice as much