Exam 1

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

-All business decisions have a social impact and the vitality of business depends on society's actions and attitude

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

-Business people do not have the skill set to solve societal problems -The private sector is not mandated to solve these issues

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

-fostering trust in the marketing system -embracing ethical values -doing no harm

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

A company breaking past records by maximizing quarterly profits

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

Analyzed

Positive reputation can be values as an intangible corporate:

Asset

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive

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

Communications technology

Legal environmental intelligence includes

Considerations of patents, copyrights, or trademarks.

The costs of corporate social responsibility may ultimately be passed on to the:

Consumer through high prices

When working well, the issue management process

Continuously cycles back to the beginning and repeats

Which of the following are examples of an ethical criterion?

Corporate driven

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

Corporate power

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees

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

Customer

Ethical challenges for information technology employees include:

Data privacy and copyright protection

Those in support of corporate social responsibility believe the practice

Discourages government regulation

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

Engaged

A national health care policy is an example of an economic policy

False

Businesses and society are independent of one another.

False

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

The use of social media to conduct stakeholder engagement has:

Increased the ability to share information amongst employees and partners

A stakeholder analysis

Involves understanding the nature of stakeholder interests

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

Legal Power

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

Networks

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

Nongovernmental organizations

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

Paternalistic programs

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

Policy instruments of the corporate social social stewardship phase

Stakeholder engagement is, at its core, a:

Relationship

Public issues are also sometimes referred to as:

Social issues and sociopolitical issues

The issue management process is a

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

A business is any organization that is engaged in making a product or providing a service for a profit

True

The interests of different stakeholders often coincide

True

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

Ventures

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

False

Global social audit standards concentrate on:

-internally focused economic benefits for the firm -externally focused social benefits for the environment -externally focused social benefits for key stakeholders

To qualify as a B corporation, a business must be certified by a state government agency

False

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

Transforming stage

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

institutionalizing ethics

Which of the following companies is being the most socially responsible?

A company trying its best to operate in a way which will help local students get education and jobs

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

Both the board of directors and top management levels

Integrity-based ethics program

Combine concern for the law with an emphasis on employee responsibility

A market stakeholder is exemplified by which of the following?

Creditors

The most significant motivator of corporate social reporting is:

Ethical concerns

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

Social

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders.

Regulatory activity is often cyclical

True

Contemporary issue management:

Is an interactive, forward thinking process.

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

ethical climate

Cost-benefit analysis is often used to determine the costs of regulation

True

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

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

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance expectations gap to grow larger

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions

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

Egoism

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

Eight strategic radar screens

The main reason a number of European countries require public companies to include employee members on their boards of directors is so that:

Employees' interests will be explicitly represented.

An issue's public profile indicates to managers:

How significant an issue is for the organization, but it does not tell them what to do.

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

Investors

Proactive companies are

Much less likely to be blindsided by crises and negative surprises

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

Reactive

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

Requires skills businesses may lack

The core mission of a social entrepreneur is to create and sustain social rather than economic value

True

Which of the following statements is true about the interactive social system?

-Business and society need, as well as influence, each other. -Business and society are both separate and connected. -Business is a part of society, and society penetrates far and often into the business.

What kind of power might a local community use to influence a company's decisions?

-Publicizing an issue -lobbying government policy makers for regulations -challenging whether a specific business activity should continue

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

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

The iron law of responsibility says that:

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

External stakeholders of a firm

-suppliers -customers -shareholders

The most effective ethics programs utilize

-written policy -quick reference guides -posters

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

B Corporation

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Corporate/Global citizenship

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

Dialogue

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate

False

Global corporate citizenship refers to putting an organization's commitment to social and environmental responsibility into practice locally

False

Government and business together establish the regulatory rules under which business operates in society

False

Market stakeholders include nongovernmental organizations and business support groups

False

Public policy is a plan of action undertaken by business to influence the government

False

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

Forum Empresa

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

Friendly relations with an employee

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally, it is called

Global Corporate Citizenship

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

Political

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

Stakeholder materiality

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

Study the results and make necessary adjustments

A cooperative government-business relationship on one issue does not guarantee cooperation on another issue

True

An argument against corporate social responsibility is that it imposes unequal costs among competitors

True

Government can be considered both a market and nonmarket stakeholder

True

Monetary policies refer to policies that affect the supply, demand, and value of the nation's currency

True

New improved mining equipment that was found to increase cases of black lung disease because it generated higher levels of dust in the mines is an example of negative externalities

True

Stakeholders involved with one part of a company may have little or no involvement with another part of the company

True

By law, the financial records of publicly held companies are required to be:

audited by a certified professional accounting firm

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

compliance and integrity

Business managers need a set of ethical guidelines to help them

identify and analyze the nature of the ethical problem

Which statements are correct about the business-society interdepenence?

-Business activities impact other activities in society. -Business is a part of society. -Business is separated from the rest of society by clear boundaries.

When undertaking social initiatives, a company

May sacrifice short term profits

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

Operating under the compliance-based approach

Stakeholder groups can include

-shareholders -business support groups -environmental activists

The emergence of a public issue indicates that:

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

The drivers of stakeholder engagement are

Goals, motivation, and operational capacity

BSR helps its 300 member companies:

Develop sustainable business strategies

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

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

The components of a typical issues management process include:

-Identify issue, take action, scan for new issues -Generate options, predict the firm's profitability, evaluate results -Identify issue, analyze issue, allow the government to take action

According to Barlow v. A.P. Smith Manufacturing

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

In Europe, unions are prohibited by law to be on businesses' administrative boards

False

The external environment of business is static

False

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders

False

The term corporate power means that in the long run, those who do not use power in ways that society considers responsible will tend to lose it

False

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

Inactive

Most ethics or compliance officers are entrusted to

Act as a liaison between the company and their temporary employees

instrumental argument for stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society

True

The principles and standards of ethical supply chain management conduct includes the principle

protect confidentiality

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

Evolves through a series of stages

Corporate citizenship refers to a set of beliefs stating that socially responsible behavior is a good idea

False

The fiduciary duty of managers benefits a firm's:

-Shareholders, customers, employees

All of the following are commitments of the principles of the code of professional conduct of the american institute of certified public accountants

-the public interest -Due care -objectivity and independence

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

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

5 types of stakeholders' power recognized by most experts are:

Voting, economic, political, legal, and informational power

Which of the following statements is true about corporate social responsibility

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

Which of these are objectives of the global reporting initiative (GRI)

-Combining long-term profitability with ethical goals, social justice, and environmental care. -measuring social performance across companies -reflecting the interests of business, labor, civil society, and financial markets

Companies demonstrate global corporate citizenship by:

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

Good corporate citizens

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

Ethics policies typically cover all of the following issues

-developing guidelines for accepting or refusing gifts from suppliers -avoiding conflict of interest -maintaining the security of proprietary info

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

-innovating new products -increasing their stock price -developing their employees' professional skills

Which of the following are examples of stakeholders' economic power?

-local community boycotts a grocery store suspected of inaccurate weight scales -an equal rights group refuses to do business with a company that has a discriminatory hiring policy -Supplier halts shipments to a business customer that demanded very low prices

A member of the Chartered Financial Analyst Institute must

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

One of the most appealing arguments in favor of corporate social responsibility for business supporters is that voluntary social acts may head off increased government regulation

True

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

informational power

Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse.

True

In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority

True

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

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