MNGT FINAL CH'S 5,7,10,14
42. This company called its plan to tackle climate change "Plan A" because there is no "Plan B": A. Marks & Spencer, B. Walmart. C. Nike. D. Timberland.
A
44. An example of codes of environmental conduct that have been developed by and for specific industries include: A. The Equator Principles. B. The Forest Stewardship Principles, C. The Greenhouse Gas Protocol. D. A and B but not C.
D
39. The emerging trend in gathering audit information directly from workers using their mobile phones is called: A. Network-sourcing. B. Crowd-sourcing. C. Social networking. D. Mobile auditing.
B
23. Why is inequality an environmental problem? A. People in the richest countries consume many natural resources. B. People in the poorest countries often misuse natural resources. C. People in the richest countries have strong environmental values. D. Both A and B, but not C.
D
24. A member of the Chartered Financial Analyst Institute (CFA) must: A. Promote the integrity of and uphold the rules governing global capital markets. B. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. C. Maintain and improve their professional competence. D. All of the above.
D
26. In 2010, median compensation for directors at the largest U.S. corporations was (rounded to the nearest $10): A. $172,300. B. $193,240. C. $182,300. D. $212,510.
D
35. Ethics reporting mechanisms have been: A. Established to create an avenue for the company to obtain allegations of unethical conduct. B. Increasing in employee use and effectiveness. C. Wholly rejected by skeptical and weary employees. D. Both A and B, but not C.
D
39. Social investors seek to eliminate from their investment portfolios companies that: A. Pollute the environment. B. Discriminate against employees. C. Make dangerous products like tobacco or weapons. D. All of the above.
D
38. The activism of institutional investors in other countries has been spearheaded by: A. U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries. B. Foreign institutions that were granted new rights by their governments. C. Managers who have become active in proxy battles in the Netherlands, Austria, and Hong Kong. D. The rising number of individual investors in public service companies.
A
31. Which of the following is a key feature of effective boards of directors? A. Hold regular meetings without the CEO present. B. Fill all important positions on the board with managers with insider knowledge of the firm. C. Combine the duties of the board chairman and the chief executive. D. Ensure that no outside members are included on the board.
A
32. Which of the following organizations have developed standards to judge corporate performance? A. International Organisation for Standards. B. Global Development Initiative. C. Institute of Accountability. D. All of the above.
A
36. This Switzerland-based pharmaceutical firm was an early adopter of the Global Compact and used it to update its code of conduct. A. Novartis. B. Bayer. C. Johnson & Johnson. D. The Gap.
A
37. A reason for institutions becoming more assertive in promoting the interests of their member investors is: A. It is difficult for institutions to sell their holdings. B. Their members want them to. C. Institutions have greater flexibility in selling stocks. D. Institutions have nominated members on the finance committee of the board of directors.
A
37. The commitments of the Convention on Biological Diversity include: A. Developing national conservation strategies. B. Eliminating CFC production. C. Population control education. D. Massive irrigation projects in developing countries.
A
37. Typically, ethics training is offered to: A. Managers. B. To the rank-and-file. C. Both managers and the rank-and-file. D. The Board of Directors only
A
44. The Interactive Digital Software Association case exemplifies: A. The idea that laws can not always define proper action. B. The idea that ethical principles are broader than laws. C. Industries preempting legislation and voluntarily adopting ethically based practices. D. All of the above.
D
41. The mission of the Securities and Exchange Commission (SEC) is to: A. Protect shareholders' rights by making sure that stock markets are run fairly. B. Protect companies from hostile takeovers. C. Ensuring that institutional investors do not take control of company management. D. Ensuring that the federal treasury receives its share of the revenues from stock trading.
A
44. The Securities and Exchange Commission outlaws: A. Any manipulative or deceptive device used to trade stocks. B. Compensating company executives with stock options. C. Trading in stocks by institutions. D. Buying stock in a company for which you work.
A
18. The core idea(s) of sustainable development is (are): A. Economic development must be accomplished sustainably. B. Poverty is an underlying cause of environmental degradation. C. Affluence is an underlying cause of environmental degradation. D. Both A and B, but not C.
D
19. Investors may receive an economic benefit from the ownership of stock by receiving: A. Interest. B. Dividends. C. Capital gains. D. Both B and C, but not A.
D
22. Asian Forum on Corporate Social Responsibility gives awards for excellence in: A. Environmental management. B. Education. C. Poverty alleviation. D. All of the above.
D
27. The board committee that administers and approves salaries and benefits of high-level managers in a company is called the: A. Executive committee. B. Human resources committee. C. Nominating committee. D. Compensation committee.
D
30. A systematic evaluation of an organization's social, ethical, and environmental performance is called a(n): A. Corporate social responsibility review. B. Stakeholder audit. C. Independent social review. D. Social audit.
D
31. According to the scholar Simon Zadek six benefits of social audits include all of the following except. A. Helping businesses know what is happening within their firm. B. Understanding what stakeholders think about and want from the business. C. Strengthen the loyalty and commitment of stakeholders. D. Outperforming competitors financially in a businesses' industry.
D
35. Which of the following arguments opposes the idea of high executive pay? A. High salaries provide an incentive for innovation and risk taking. B. Not many individuals are capable of running today's large, complex organizations. C. Top athletes and entertainers make a lot of money, so top executives should, too. D. High salaries divert resources that could be used to invest in the business.
D
38. Which of the following is a typical practice in an ethics audit procedure? A. The auditor notes any deviations from the company's ethics standards that become evident during the ethics audit. B. The auditor brings deviations to the attention of the audit supervisor. C. Department managers are required to file a report with the auditor on the corrective action they took to deal with the deviation. D. All of the above.
D
39. The Sustainability Consortium organized to advance life-cycle analysis for thousands of products includes all of the following companies except: A. Walmart. B. Dell. C. Alcoa. D. Google.
D
40. Ethisphere Magazine recognizes and rewards ethical leadership and business practices worldwide according to their: A. Regulatory Percentage Track (RPT). B. Ethics and Leadership Radar (ELR). C. Quality Measurement (QM). D. Ethical Quotient (EQ).
D
41. A 2011 survey of business firms by KPMG found: A: A steep increase in corporate social reporting. B. A decrease in corporate social reporting. C. A majority of firms using the Global Reporting Initiative. D. A and C, but not B.
D
42. Reports filed with the SEC provide information on a company's: A. Sales and earnings. B. Depreciation by line of business. C. Details of foreign operations. D. All of the above.
D
42. Which of the following is not a motivation for publishing a corporate social report? A. Ethical concerns. B. Economic considerations. C. Stakeholder engagement. D. Avoiding transparency.
D
30. How are directors (members of corporate boards) selected? A. Shareholders elect the directors from a list of candidates. B. The company's CEO appoints the directors. C. The nominating committee elects the directors. D. Shareholders with the greatest proportional ownership in the company become directors.
A
19. Which of the following is an example of a nonrenewable resource? A. Coal. B. Fresh water. C. Timber. D. Fish. Answer: A
A
20. If a manger approaches ethics with benevolence in mind, he or she would stress what? A. Friendly relations with an employee. B. Company rules and procedures. C. Laws and professional codes. D. Economic efficiency.
A
20. With respect to fresh water, according to one estimate, if it were possible to eliminate pollution, capture all available fresh water, and distribute fresh water equitably: A. Demand would exceed supply within a hundred years. B. There would be a balance between demand and supply within a hundred years. C. Supply would exceed demand within a hundred years. D. None of the above.
A
21. Which ethical criterion is described by the idea that a company should strive for efficiency? A. Egoism. B. Benevolence. C. Principle. D. Business-centered.
A
22. Which of the following statements is not true about the population? A. The world population will peak at over 11 billion people around the year 2100. B. For many thousands of years, population growth was gradual. C. Industrial production would have to quintuple over the next 40 years in order to maintain the same living standard that people have now, given expected population growth. D. Just 10,000 years ago, the earth was home to no more than 10 million humans, scattered in small settlements.
A
23. The directors of a company are a central factor in corporate governance because they: A. Exercise formal legal authority over company policy. B. Have the highest stake in the performance of the company. C. Have a moral responsibility to fulfill the needs of both the company's employees and customers. D. Inherited the business from their predecessors.
A
25. The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called: A. Ecological footprint. B. Technological innovation. C. Sustainable development. D. Consumption footprint.
A
25. Which of the following is true about corporate boards? A. Corporate boards average 12 members. B. About half of the directors are "outside" directors. C. Only one-third of all companies have at least one woman on their board. D. Ethnic minority board members make up about one out of three directors.
A
26. Which of the following organization's code of ethics advocates "loyalty to your organization, justice to those whom you deal and faith in your profession?" A. Institute for Supply Management. B. Institute of Certified Public Accountants. C. Financial Accounting Standards Board. D. Association for Computing Machinery.
A
27. A new imperative for governments, businesses and society is to: A. Preserve the global commons and assure its continued use. B. Assure fair access to the global commons for all individuals. C. Equalize the usage of the global commons among all nations of the world. D. Avoid the use of the global commons in order to preserve it for future use.
A
28. A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is: A. Operating under the compliance-based approach. B. Practicing "tone at the top." C. Operating under the integrity-based approach. D. Operating under the instrumental policy approach.
A
29. Depletion of the ozone layer, destruction of the rain forests, and species extinctions all have an impact on: A. All of society. B. A particular region. C. A particular nation. D. Only developing countries.
A
44. Sanford Limited, a small fishing company in New Zealand, made the following commitment(s) in its first triple bottom line report released in 2007: A. To ensure that its operations were the best in the industry. B. To maximize positive social outcomes and economic growth and prosperity. C. To avoid going overboard with its social mission. D. All of the above
B
45. The most successful global businesses in coming years will be those companies that: A. Develop short-term partnerships between companies in developing countries to transfer environmental technologies. B. Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action. C. Avoid fully accounting environmental costs in calculating measures of production such as the gross domestic product (GDP). D. Produce products with a limited useful life.
B
17. Which of the following is not true about institutional investors? A. Institutions invest their funds by purchasing shares of stock in corporations. B. The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s. C. The U.S. government became an institutional shareholder when it acquired ownership of Citigroup and General Motors during the 2008 and 2009 bailouts. D. Institutions accounted for 62 percent of the value of all equities owned in the U.S. in 2005.
B
18. Institutional investors are sometimes referred to as: A. Main Street investors. B. Wall Street investors. C. Inside investors. D. Outside investors.
B
24. According to Philip H. Mirvis' and Bradley K. Googins' model, how many stages are there of global corporate citizenship? A. Three. B. Five. C. Seven. D. Twelve.
B
28. The Ronald McDonald House charity, operated by McDonald's has been criticized for: A. Providing homes-away-from home for the families of seriously ill children being treated in hospitals. B. Diverting attention away from the company's contributions to the nation's obesity epidemic. C. Using company profits to fund social missions. D. Paying employees low wages.
B
29. Integrity-based ethics programs: A. Seeks to avoid legal sanctions. B. Combines concern for the law with an emphasis on employee responsibility. C. Threatens employees with punishment for non-compliance with the ethics program. D. Are predominately implemented within the European Union.
B
32. In the United States and Latin America, ethics policies were found to be primarily: A. Informational - providing guidance for recommended ethical activity with the company. B. Instrumental - providing rules and procedures for employees to follow to adhere policy and law. C. Social - providing a framework for ethical interaction between employees and customers. D. General - providing basic definitions of ethical decision-making.
B
35. Which of the following is not true about rain forests? A. They are the planet's richest areas in terms of biological diversity. B. They will be severely depleted within the next 8 years. C. They account for about 7 percent of the earth's surface. D. They account for somewhere between 40 to 75 percent of the earth's species.
B
36. Which of the following is not a typical use of an ethics reporting mechanism? A. To provide interpretations of proper ethical behavior involving conflicts of interest and the appropriateness of gift giving. B. To give employees an opportunity to discuss the appropriate rating on their annual performance reviews without management's influence. C. To create an avenue to make known to the proper authorities allegations of unethical conduct. D. To give employees and other corporate stakeholders a way to discover general information about a wide range of work-related topics.
B
38. Life-cycle analysis involves: A. Accurately recording the production costs at each stage of a product's life cycle. B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. C. Reducing recycling costs for disposable products. D. Increasing productivity while improving the environment.
B
41. Recipients of the corporate ethics awards show that: A. Awards are based on economic power, not ethical performance. B. Firms can be financially successful and ethically focused. C. Being legally compliant results in receiving an ethics award. D. Improving ethical performance is very costly, but bolsters a firm's reputation.
B
42. One of the most widespread and potentially powerful efforts to combat bribery was initiated by: A. The Global Forum on Fighting Corruption. B. The Organization for Economic Cooperation and Development. C. International Labour Organization. D. The U.S. Foreign Corrupt Policy Act.
B
45. Which of the following is not an instance of "insider trading"? A. An auditor using nonpublic information about the company to invest in its stock. B. A marketing executive briefing stock analysts on the company's sales performance. C. The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company. D. A stock broker passing an "inside tip" to a client, but not trading for his or her own account.
B
17. According to a survey conducted by The Economist in 2008, how many respondents say corporate citizenship can help increase their companies' profits? A. 11%. B. 25%. C. 74%. D. 91%.
C
18. If a manager approaches ethical issues with a self-centered approach, emphasis will be on: A. Integrity. B. Social relationship. C. Economic efficiency. D. Laws.
C
23. All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except: A. The Public Interest. B. Objectivity and Independence. C. Due Process. D. Due Care.
C
23. This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile. A. Business for Social Responsibility. B, Canadian Business for Social Responsibility. C. Forum Empresa. D. Fundacion Empresa y Sociedad.
C
24. Rapid economic development is often accompanied by: A. Increasing population growth. B. Greatly decreased crop yields. C. Rising incomes, bringing higher rates of both consumption and waste. D. Decreasing incomes, bringing rates of both consumption and waste.
C
27. Building ethical safeguards into a company's everyday routines is called: A. Change management. B. Justifying ethics. C. Institutionalizing ethics. D. Ethical awareness.
C
27. 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: A. Innovative stage. B. Integrated stage. C. Transforming stage. D. Engaged stage.
C
30. A giant step is taken toward improving ethical performance throughout the company when: A. The firm hires a university ethics professor to lecture employees on moral philosophy. B. The Justice Department launches an investigation of the firm's pricing practices. C. Senior-level managers signal to employees that they believe ethics is a high priority. D. A consumer hot line is created and staffed 24 hours a day.
C
30. Scientists believe that if the Montreal Protocol is honored the ozone layer will recover by: A. 2015. B. 2035. C. 2050, D. Never.
C
32. By 2010, out of the 100 largest US companies, how many had separated the positions of CEO and board chairman? A. Seven. B. Fifteen. C. Thirty-one. D. Sixty. Answer: C
C
32. By promoting the use of clean cookstoves in developing nations, a global alliance hopes to reduce: A. Deforestation, B. The burning of fossil fuels. C. Black carbon. D. Methane.
C
33. The major focus of ISO 14001 is to: A. Link economic, environmental and social responsibility. B. Build accountability in the public sector. C. Support environmental management standards. D. Structure effective dialogue with stakeholders.
C
34. The Carbon Disclosure Project found that: A. Companies that invested in climate change lost total revenue. B. Companies in the railroad industry could not help the environment. C. Companies could help the environment and their investors simultaneously. D. Companies that were "carbon performance leaders" returned less total return to their investors than their peers.
C
36. Which of the following is not an argument for high executive compensation? A. High salaries provide an incentive for innovation and risk-taking. B. High salaries are necessary to attract and retain top talent. C. Inflated executive pay helps U.S. firms compete with foreign rivals. D. Well-paid managers are being compensated for outstanding performance.
C
37. The Universal Declaration of Human Rights states that each person: A. Has a right to life, liberty and the pursuit of happiness. B. Is created equal in the eyes of the government. C. Has the right to a standard of living adequate for the health and well-being of himself and of his family. D. Has the right to a standard of living that meets each countries' minimum wage law.
C
40. When a company decides to publicize information collected in a social audit, this is called: A. Environmental auditing. B. Corporate financial reporting. C. Corporate social reporting. D. Stakeholder management.
C
41. The idea that companies have a continuing responsibility for the environmental impact of their products or services, even after they are sold is called: A. Life-cycle analysis. B. Product life responsibility. C. Extended producer responsibility. D. Extended producer commitment,
C
43. In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called the: A. U.S. Corporate Sentencing Guidelines. B. McCain-Feingold Act. C. Sarbanes-Oxley Act. D. Securities and Exchange Act.
C
45. Which of the following is not an example of a white-collar crime? A. Embezzlement. B. Check fraud. C. Theft. D. Money laundering.
C
16. In which year was the first World Summit on Sustainable Development held? A. 1982. B. 1985. C. 1990. D. 1992.
D
18. Good corporate citizens: A. Strive to conduct all business dealings in an ethical manner. B. Make a concerned effort to balance the needs of all stakeholders. C. Work to protect the environment. D. All of the above.
D