FM116- Ch. 4 Quiz

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact. A. codes of conduct B. human acts and morality basics C. universal ethical standards D. greenwashing principles

A. codes of conduct

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave for ten days to it employees to volunteer at nonprofits or take part in activities that support environmental causes. Gives this information, the company's initiative is an example of ______. A. corporate philanthropy B. green marketing C. consumerism D. integralism

A. corporate philanthropy

Spacein, a hard drive manufacturer, is accused of deliberately creating flaws in its product design. News reports hint that the company has been doing this for years to reduce the time between consumer repurchases. In the context of social responsibility, Spacein has been accused of _____. A. planned obsolescence B. project mismanagement C. modular function deployment D. crash simulation

A. planned obsolescence

Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____. A. respect B. foresight C. subservience D. accountability

A. respect

Fresh Bean is an online grocery service. Its employees and customers, the farmers from whom the company obtains its products, and the people who live in the community where the company operates are FreshBean's _______. A. stakeholders B. shop stewards C. union organizers D. philanthropists

A. stakeholders

Adhering to a new act passed in 2002, the CEO of Pearsil & Pearsil, a real estate company, now personally certifies the validity of the company's financial statements. Given this information, the CEO most likely follows the _______. A. Blaine Act B. Sarbanes-Oxley Act C. Dawes Act D. Landrum-Griffin Act

B. Sarbanes-Oxley Act

An automobile company is asked to recall 20 batches of its sports utility vehicle after it is found that a defect in the exhaust system of the car causes it to emit more smoke than the level permitted. In this scenario, the car manufacturing company is exceeding its _____ emissions. A. Scope 1 B. Scope 3 C. Scope 2 D. Scope 4

B. Scope 3

The _____ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit. A. Blaine Act B. Dawes Act C. Sarbanes-Oxley Act D. Landrum-Griffin Act

C. Sarbanes-Oxley Act

Quinback Inc., a computer manufacturing company, annually donates 6% of its total profits to an orphanage. The company also provides free personal computers to children to promote learning among them. Given this information, Quinback Inc. most likely engages in ______. A. corporate responsibility B. consumerism C. corporate philanthropy D. freeganism

C. corporate philanthropy

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____. A. horizontal audit B. continuous audit C. social audit D. statutory audit

C. social audit

What is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard?

Consumerism

An American petroleum company is facing legal action because it discharges a significantly higher level of greenhouse gases than the level permitted by the Environmental Protection Agency. In this scenario, the company is guilty of increasing its ______. A. ecological debt B. liquid-to-gas ratio C. green procurement D. carbon footprint

D. carbon footprint

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____. A. trustworthiness B. assertiveness C. fairness D. citizenship

D. citizenship

Angorasia, an Asian country, supports a free market system. The flexible economy of the country makes it fairly easy of new sellers to enter the market, which in turn gives buyers a variety of choices in terms of products and services. Given this information, it can be said that Angorasia supports _____. A. protectionism B. neorealism C. integralism D. consumerism

D. consumerism

Jessica Marshall, the CEO of ABD Oil Drilling Inc., decides to set aside an amount of $10,000 from the company's annual profits to donate to local nonprofit organizations although the company already meets the mandated gov. requirement of contributing 4% of the company's revenue for social benefits. This donation by ABD Oil Drilling Inc. is an example of: A. stakeholder remuneration B. planned obsolescence C. economic opportunism D. corporate philanthropy

D. corporate philanthropy

Rene's boss asks her to perform a social audit of the company following mass media's harsh criticism of the company's ethical standards. In this case, Rene will first: A. quantify the involvement of the firm in societal development activities B. determine how to measure the achievement of goals during the social audit C. evaluate if the firm had achieved its initial social responsibility objectives D. establish the goals required to conduct the social audit

D. establish the goals required to conduct the social audit

T or F: Stakholders refer to groups of people who have a malicious intent toward an orgainzation and who often resort to harmful actions

False

In the context of social responsibility, who include employees and investors who have a personal interest in the performance and actions of an organization?

Stakeholders

T or F: Sustainable development means weaving environmentalism throughout the business decision-making process

True