BUSA 2106
A self-regulatory resource that assists its business members in becoming more efficient and up to date in marketing by relying on accurate consumer data and adjusting to new technology. National Advertising Division (NAD) Better Business Bureau (BBB) Troubled Asset Relief Program (TARP) Data and Marketing Association (DMA)
Data and Marketing Association (DMA)
"Values" are defined as _______________.
enduring beliefs and ideals that are socially enforced
Controls are used to safeguard business assets and resources, protect the reliability of organizational information, and _______________.
ensure compliance with regulations, laws, and contracts
Regarding capitalism during the Great Depression (1929-1945), for what did John Maynard Keynes argue? that government should control all the utilities the concept of the "invisible hand" the economy can best reach equilibrium without government intervention that there should be more government policies to stimulate economic growth
that there should be more government policies to stimulate economic growth
Adam Smith's idea of _______________ was critical to capitalism because it assumes that the market through its own inherent mechanisms will keep commerce (supply and demand) in equilibrium (balance). the "invisible hand"of the market synergy codependence interconnectivity
the "invisible hand"of the market
When the basic expectations about social responsibility are not met by company managers, _______________.
the confidence that investors have in the corporation will be severely tested
"Corporate governance" is defined as ____________.
the formal system of oversight of, accountability for, and control over organizational decisions and resources
Reputation management is ___________________.
the process of building and sustaining a company's good name and generating positive feedback from stakeholders
"Legitimacy" is gained through _______________, and then to communicate in an effective and respectful manner on the desire for change.
the stakeholder's ability and willingness to explore the issue from a variety of perspectives
Which of the following describes secondary stakeholders?
those that do not typically engage in direct transactions with the company
On what two characteristics is a stakeholder's urgency based?
time sensitivity and the importance of the claim to the stakeholder
What is the glue that holds organizations together and allows them to focus on efficiency, productivity, and profits?
trust
Which of the following is not an example of unfair competitive trade practices? copyright infringement stealing trade secrets trademark infringement truth-based advertising
truth-based advertising
Which of the following is NOT one of the four components of the reputation management process?
urgency
As fiduciaries, members of a company's Board of Directors are expected to ____________.
use both due care and loyalty in acting on behalf of the best interests of the organization
Boycotts and lawsuits are measures of which type of stakeholder power?
utilitarian power
________ involves financial control based on a decision's utility (usefulness).
utilitarian power
Utility companies that supply electricity, natural gas, water, or cable television are examples today of _______________. patent laws trusts monopolies self-regulatory agencies
monopolies
Satisfying the expectations of social responsibility is a _____________.
never-ending process of continuous improvement
Nonprofit, citizen-based groups that functions independent of government are called _________. regulatory agencies nongovernmental organizations (NGOs) monopolies nonprofit agencies
nongovernmental organizations (NGOs)
Which of the following is one of the four types of corporate social responsibility?
philanthropic
During which stage of social responsibility requirements do companies contribute to their communities and society and improve the quality of life?
philanthropic activities
The extent to which a stakeholder can gain access to coercive, utilitarian, or symbolic means to impose or communicate its views to an organization is known as _______________.
power
Whose continued association is absolutely necessary for a business' survival?
primary stakeholders
"Business ethics" refers to___________.
principles and standards that guide behavior in the business world
Which of the following is a benefit of regulation? lower administrative costs safer products higher profits fewer lawsuits
safer products
Which of the following refers to protection and support for consumers providing safe work conditions, equal opportunity, and healthcare? patent law economic regulation environmental regulation social regulation
social regulation
A company whose managers hold a strong _______________ orientation often becomes quite proactive in managing and changing conditions that yield economic benefits, including avoiding litigation and increased regulation.
social responsibility
Strategic _______________ is realized when a company has integrated a range of expectations, desires, and constituencies into its strategic direction and planning processes.
social responsibility
Which of the following is an example of a secondary stakeholder?
special-interest groups
Principles are defined as_____________.
specific and universal boundaries for behavior that should not be violated
The "stakeholder interaction model" is a conceptual tool that a manager may use to create a company-specific _______________ that names the primary and secondary stakeholders, identifies salient issues, and illuminates relationships and networks.
stakeholder map
Those who have a claim on some aspect of a company's products, industry, markets, and outcomes are referred to as _______________.
stakeholders
A _______________ gives a shareholder the right to buy or sell a stock at a set price for a certain amount of time.
stock option
Which of the following is an example of a primary stakeholder?
suppliers
_______________ are expenditures by government to develop and administer regulatory requirements, including the salaries of government workers, hiring inspectors, purchasing office supplies, and other overhead expenses. Costs of legal consultants Sustainability costs Administration and enforcement costs Compliance costs
Administration and enforcement costs
_______________ legislation attempts to provide fair competition to protect competitors and the public. Monopoly Antitrust Patent Trust
Antitrust
Which of the following concerns is the primary rationalization for the regulation of trusts and monopolies by the government? Without regulation, trusts and monopolies are able to reach equilibrium Because trusts and monopolies lack serious competition, they may either exploit their market dominance to restrict their output and raise prices or reduce quality to gain greater profits. Trusts and monopolies are more prone to "bait and switch" sales tactics Trusts and monopolies always use deceptive selling methods
Because trusts and monopolies lack serious competition, they may either exploit their market dominance to restrict their output and raise prices or reduce quality to gain greater profits.
How could regulation on businesses result in a "hidden tax" to customers? Consumers may have to pay for recycling products that have been used or disposed Businesses could absorb regulatory costs States could raise their sales taxes to compensate for higher regulatory costs Businesses often pass regulatory costs on to their customers in the form of higher prices
Businesses often pass regulatory costs on to their customers in the form of higher prices
Which of the following is least likely to be considered destructive or unfair competition? Collaborating with a competitor to establish prices so that each firm can ensure a certain level of profit Lowering prices significantly in an effort to drive competitors out of a market, and then raising prices afterwards Obtaining information through careful monitoring of the competitive environment Using a "bait and switch" method for selling products to customers
Collaborating with a competitor to establish prices so that each firm can ensure a certain level of profit
_______________ are expenditures by organizations to meet regulatory requirements, such as reporting activities. Administration and enforcement costs Costs of legal consultants Compliance costs Sustainability costs
Compliance costs
_______________ generate revenue and provide loyalty or positive or negative word-of-mouth promotion.
Customers
. _______________ creates a strong economy and protects competition to provide opportunity for organizations and individuals to be financially successful. Patent law Environmental regulation Economic regulation Social regulation
Economic regulation
Who are the principals and agents of a corporation?
Employees and stockholders, respectively
_________ is an unexpected organizational crisis that results from employee or manager behavior that significantly disrupts operations and threatens the company's continuity of operations.
Ethical misconduct disaster
______________ relies on the use of symbols that imply social acceptance, prestige, or some other attribute and can be used to generate awareness and enthusiasm for business actions.
symbolic power
Which of the follow describes patent laws? New technology that displaces an established technology and changes an industry or a unique new product that creates a completely new industry. Laws that grant the developer a period of time (usually 20 years) during which no other firm can use the same technology without the patent holder's consent. Organizations established to gain control of a product market or industry by eliminating competition. Protection and support for consumers providing safe work conditions, equal opportunity, and healthcare
Laws that grant the developer a period of time (usually 20 years) during which no other firm can use the same technology without the patent holder's consent.
______________ results when just one business provides a good or service in a particular market. Trust Monopoly Lower prices due to that company's efficiency Oligopoly
Monopoly
_______________ relates to a system of checks and balances that limit employees' and managers' opportunities to depart from policies and codes of conduct.
Oversight
A ____________ is an industry group that has self-regulatory programs as a preventative measure to stop or delay the development of laws and regulations that would restrict the association's business practices. Trade association Monopoly Political Action Committee (PAC) Non-governmental Organization (NGO)
Political Action Committee (PAC)
Which of these statements best describes the Better Business Bureau (BBB)? The BBB is a published list of companies to avoid doing business with due to their poor business practices The BBB is a federal government agency that helps resolve problems between businesses and consumers. The BBB is a state agency that helps resolve problems between businesses and consumers The BBB is a self-regulatory association that helps resolve problems between businesses and consumers.
The BBB is a self-regulatory association that helps resolve problems between businesses and consumers.
_______________ is grounded in effective and mutually beneficial relationships with customers, employees, investors, competitors, government, the community, and others who have a stake in the company.
Social responsibility
_______________ refers to the process of involving stakeholders who may be affected by an organization's decisions or that may influence the content or implementation of the organization's decisions.
Stakeholder engagement
What is the definition of regulation? Changing or deleting existing laws or regulations to provide less oversight of business activities, operation, and outcomes The act of creating and enforcing rules for a specific purpose New technology that displaces an established technology and changes an industry or a unique new product that creates a completely new industry The law used to prevent businesses from restraining trade and monopolizing markets
The act of creating and enforcing rules for a specific purpose
_______________ is associated with the development of social conditions that allow societal welfare and fulfillment to be achieved
The common good
How should a company communicate after a crisis?
The company should always ask stakeholders to help them resolve the crisis.
Which of the following best describes the stakeholder model of corporate governance?
The managers have responsibilities to many stakeholders including employees, suppliers, government agencies, communities, and groups with which it interacts.
Which of the following best describes the rationale (or reason for) of the "stakeholder interaction model?"
This model involves a two-way relationship between a business and a multitude of stakeholders.
What is the primary concern of a Board of Directors today?
To monitor the decisions made by managers on behalf of the company
Which of the following best describes how managers should work within the regulatory environment? Businesses should try to follow some of the laws that apply to doing business. Companies should maintain their primary focus of making a profit. Top managers must take responsibility and be accountable for assessing legal risks and developing corporate programs that promote and reward acceptable conduct. Businesses should hesitate to punish employees who have committed an illegal or unethical act in order to protect the reputation of the company
Top managers must take responsibility and be accountable for assessing legal risks and developing corporate programs that promote and reward acceptable conduct.
The _______________ attempted to improve conditions during the Great Recession (2009-13) by obtaining ownership of stocks and assets of banks and financial companies that were devastated by the financial crisis. Sarbanes-Oxley Act Sherman Antitrust Act Troubled Asset Relief Program (TARP) Better Business Bureau (BBB)
Troubled Asset Relief Program (TARP)
An organization often has a governing authority, known as _______________, to provide oversight and control and make sure the organization stays focused on objectives in an ethical, legally, and socially responsible manner.
a board of directors
Which is the following is a vision statement?
a description of a company's current and future objectives to help align decisions with their philosophy and goals
The "Reactive-Defensive-Accommodative-Proactive Scale" is best described by which of the following?
a method for assessing (measuring) a company's strategy and performance for each stakeholder
The degree to which a firm understands and addresses stakeholder demands can be referred to as_______________.
a stakeholder orientation
A "code of conduct" refers to _______________.
a written collection of the rules, principles, values, and expectations of employee behavior.
When a company accepts responsibility and does all that is required, it is engaged in a(n) _______________ strategy on the "Reactive-Defensive-Accommodative-Proactive Scale."
accommodative
Effective shareholder activism includes __________________.
alliances with social movements or public interest groups
Which of the following describes "social capital?"
an "asset" that resides in relationship and is characterized by mutual goals and trust
What is the definition of a trust? a market type in which just one business provides a good or service in a given market. the slashing of prices to drive out competitors an organization established to gain control of a product market or industry by eliminating competition a risky financial product that uses misleading advertising to attract customers.
an organization established to gain control of a product market or industry by eliminating competition
A shareholder is __________________.
anyone who purchases a company's stock
A company committed to implementing the stakeholder perspective in its social responsibility strategy begins by _______________.
assessing the corporate culture
A(n)_______________ is the key connection between risk and control and corporate governance.
audit
The outcomes associated with positive stakeholder relationships are___________________.
both long-term and short-term in nature
Which of the following created formalized safeguards for unsuspecting consumers?
consumer protection laws
Which of the following refers to unique advantages that differentiate a firm from its competitors?
core competencies
_________________ are shared values, attitudes, and beliefs that characterize members of an organization.
corporate culture
Which of the following is the process of handling a high-impact event characterized by ambiguity and the need for swift action?
crisis management
Which of the following is most closely related to developing long-term relationships with customers?
customer loyalty
Self-regulation is an effort to _______________. enhance governmental authority in overseeing business practice train executives in ethics and leadership so they are more skilled in the workplace demonstrate legal compliance and social responsibility to stakeholders and preclude further governmental regulation develop industry standards for pricing
demonstrate legal compliance and social responsibility to stakeholders and preclude further governmental regulation
Milton Friedman rejected the conclusion of John Maynard Keynes (Keynesian economics) and believed in _______________ because he thought the system could reach equilibrium (balance) without government intervention. consumer activity deregulation regulation synergy
deregulation
Which of the following describes risk management?
dodging uncertainty while ensuring that company leadership is taking the appropriate steps to move the organization forward toward its goals
To generate a measurement of the costs of regulation, economists generally classify regulations as _______________. economic or social standardized or industry-specific ethical or legal safety-related or environment-related
economic or social
Employee commitment stems from _______________.
employees who are empowered with training and autonomy
Many studies have identified a positive relationship between social responsibility and _______________.
financial performance
What is "Stage 1" of social responsibility requirements?
financial viability
Which step for utilizing a stakeholder framework may include satisfaction or reputation surveys?
gaining stakeholder feedback
"Social capital" enables _______________.
internal and external transactions and processes
Which stakeholder is the primary focus of the shareholder model of corporate governance?
investors
How did Adam Smith's economic philosophy differ from Milton Friedman's economic philosophy?
it emphasized the common good
The most basic principles of a nation have been codified into _______________ to require that companies and managers conduct themselves in ways that conform to society's expectations.
laws and regulations
Because no government system is perfect ______________. the "invisible hand of competition" has replaced many business and economic regulations legal and regulatory systems are constantly evolving and changing in response to social institutions, including business companies do not have to worry about meeting every law and regulation, since they are likely to change self-regulatory mechanisms have created less of a need for government oversight
legal and regulatory systems are constantly evolving and changing in response to social institutions, including business
Organizations must show that they have exceeded their _______________ before they can address their ethical purposes and standards.
legal responsibilities
In the U.S., the major actions that society delegates to government is to ______________. encourage larger companies to conduct business in many other countries create more jobs provide laws that are logically deduced from the U.S. Constitution and the Bill of Rights and to enforce these laws through the judicial system. keep prices of products low so that all consumers can purchase convenience and luxury good
provide laws that are logically deduced from the U.S. Constitution and the Bill of Rights and to enforce these laws through the judicial system.
Which of the following is a responsibility of the Public Accounting Oversight Board (PCAOB)? regulate the offering and provision of consumer financial products improve the quality of financial data accessible to government officials keep the financial system stable through market monitoring, threat identification, promotion of market discipline, and responsiveness to risk provides oversight audits of public companies
provides oversight audits of public companies
Which of the following is a responsibility of the Public Accounting Oversight Board (PCAOB)? regulate the offering and provision of consumer financial products provides oversight audits of public companies keep the financial system stable through market monitoring, threat identification, promotion of market discipline, and responsiveness to risk improve the quality of financial data accessible to government officials
provides oversight audits of public companies
A(n) _______________ is an agent who is legally authorized to act on behalf of another person/party.
proxy
When a company is denying responsibility and doing less than is required with a particular stakeholder, it is engaged in a(n) _______________ strategy on the "Reactive-Defensive-Accommodative-Proactive Scale."
reactive
Employees that work in a strong ethical culture are more likely to do which of the following?
report observed misconduct
Which of the following is a theory stating that the value of a resource is viewed relative to its potential to create competitive differentiation or customer value?
resource advantage theory
