STR 581: Ch 9: Ethics, Corporate Social Responsibility

CSR and corporate sustainability strategies can serve the long-term interest of shareholders by _____.

1. lowering costs 2. increasing productivity

Differences in which of the following cause variations in ethical standards across cultures?

1. social customs 2. religious beliefs 3. core values

Which of the following are strengths of the concept of ethical universalism?

1. the concept of ethical universalism helps multinational companies set ethical standards that apply to all personnel 2. ethical universalism draws from the ethical views and traditions of numerous societies and cultures

business ethics

deals with the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel

Which set of standards takes precedence in integrative social contracts theory?

universal ethical norms

Which of the following statements accurately reflect how ethical standards vary among different cultures?

1. European managers, in contrast to Chinese managers, tend to emphasize business standards that protect workers' freedom of political opinion 2. Japanese managers, in contrast to managers in other countries, are likely to highly value showing respect for the collective good of society.

Which of the following examples show how a commitment to environmental sustainability strategies can offer opportunities for a company to develop new products or increase sales of existing products?

1. Nissan and Chevy created electric cars 2. General Electric expanded sales of wind turbines

Some people have argued that there is an implied social contract between business and the members of society, according to which of the following?

1. a business has a moral responsibility to promote the general welfare and avoid doing harm 2. the members of society agree not to unreasonably restrain a business's pursuit of fair profit

Which of the following resulted in tighter oversight of banks and mortgage companies?

1. a court settlement that included mechanisms for monitoring lending institutions 2. a lawsuit initiated by the attorneys general of almost every state

A company that is committed to environmental sustainability strategies can enhance revenues by ______.

1. adding energy-saving products to its line of core products 2. finding ways to sell rather than dispose of the byproducts of manufacturing

two reasons a company's strategy should be ethical

1. because a strategy that is unethical is morally wrong and reflect badly on the character of the company and its personnel 2. because an ethical strategy can be good business and serve the self-interest of shareholders

A crisis in the residential real estate market was caused in part by which of the following strategies by some banks and mortgage companies?

1. boosting fees earned on home mortgages by lending to high risk clients 2. disguising the nature of the loans and repackaging them for sale to investors

Which of the following actions can be effective ways to stop companies that practice socially irresponsible behaviors?

1. boycotting the companies' products and services 2. publicizing the bad behavior of companies 3. enacting legislation that makes the activity illegal

Cultural pressure at a company to hit goals at all costs ______.

1. creates an environment in which workers have license to pursue any profitable strategy they can get away with 2. can cause even honorable employees to behave unethically 3. virtually ensures that unethical employees will minimize the importance of observing ethical standards

Environmental sustainability strategies consist of deliberate and focused actions to conduct businesses in a fashion that does which of the following?

1. guards against practices that will ultimately endanger the planet 2. protects natural resources and ecological support systems

Which of the following have been cited as reasons why a company has a moral obligation to act in a manner that benefits all stakeholders?

1. ordinary decency 2. civic-mindedness

Which of the following statements about Whole Foods Market's environmental sustainability strategy are true?

1. the strategy is part of how the company operates its business every day 2. the strategy addresses the need to limit the negative impact of waste on the environment

Which of the following are actions a company should take according to integrative social contracts theory?

1. uphold a small number of universal ethical principles that are applicable in all situations 2. adhere to local values and customers that define the boundaries of ethical behavior

environmental sustainability strategies

entail deliberate and concerted actions to operate businesses in a manner that protects natural resources and ecological support systems, guards against outcomes that will ultimately endanger the planet, and its therefore sustainable for centuries.

Which of the following measures is most likely to reduce the practice of self-dealing in a company?

establishing an independent board to hold managers accountable for their actions

Under the concept of the triple bottom line, profit _______

includes the value the company creates and the costs it imposes on society

According to the concept of ethical universalism, fundamental concepts of right and wrong ______

transcend culture, society, and religion

Investing in measures that improve the environment beyond the company's boundaries is an example of a company practicing good corporate citizenship to protect the environment.

true

True or false: practicing ethical relativism can lead to prosecution of both companies and individuals.

true

Self-dealing refers to instances when managers ______.

use their position to promote their own private interests rather than the interests of the firm

Which of the following would be an example of a company shifting the environment cost of its business onto society?

a manufacturer disposes of waste in public waters that must be treated and cleaned with tax revenues

The global reporting initiative has created _____.

a standard framework for comparing company efforts toward achieving corporate social responsibility

CSR and environmental sustainability strategies are most likely to be effective when they _____.

are linked to a company's value chain or to its most important resources

In some cultures, the practices of bribing customs officials and paying kickbacks to customers have been justified on the grounds that they _____

are similar to tipping. server in a restaurant

Damage to a company's reputation that results from unethical behavior can _______.

1. make creditors hesitant to loan funds to the company 2. create challenges for recruiting talented staff in the future 3. encourage employees to leave the company

In some cultures, the practices of bribing customs officials and paying kickbacks to customers have been justified on the ground that they _____

are similar to tipping a server in a restaurant

When activist groups criticized Nike for the working conditions in the Asian factories that produced Nike footwear, company chairman Phil Knight _____.

began to monitor working conditions in the factories that made Nike products

Which of the following statements about corporate culture is true?

company culture can be a powerful mechanism for communicating the degree to which a company is committed to its values

Companies whose success depends on sustaining high morale are most likely to pursue CSR strategies that ______.

create a culture in the workplace that inspires dedication

Cultural norms at Enron ______

created ruthlessness among employees who undermined the company's stated values of integrity and respect

True or false: ethical principles in business differ substantially from general ethical principles in society.

false

True or false: integrative social contract theory permits people working for companies to pay bribes or kickbacks under certain circumstances.

false

True or false: participating in community service activities and donating to charities are the two main requirements of maintaining good corporate citizenship.

false

Short-termism can be defined as the tendency for managers to ____.

focus excessive attention on near-term performance objectives

What is a downside to an unethical business strategy?

it reflects badly on the character of the company and its employees

Companies that prohibit payment of bribes and kickbacks in countries where these practices are customary risk ______.

losing business to competitors willing to engage in these practices

The possible consequences of a company's missing a financial target include _______.

1. decreased stock prices 2. a lower credit rating

In some countries it is common to pay bribes to government officials to accomplish which of the following?

1. win a government contract 2. facilitate an administrative ruling 3. obtain a license or permit

Multinational companies whose ethical standards vary from country to country ______.

may be sending the message to employees that the company does not have ethical standards of its own

When ethical principles are deeply ingrained in a company's culture, _____

employees tend to abide by the company's business principles and values

Corporate social responsibility

refers to a company's duty to operate in an honorable manner, provide good working conditions for employees, encourage workforce diversity, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.

Which of the following should take the lead in ensuring that a company's strategic initiatives are in line with the company's code of ethics?

senior executives

Social activists in industrialized countries who focus on the issue of child labor claim that corporations ________

should not obtain products from foreign suppliers that use underage workers

Which of the following statement associating sustainable business practices with financial performance is true?

studies have shown that there is a small but positive correlation between good corporate behavior and good financial performance.

A corporate social responsibility strategy can be defined as ________.

the combination of social responsible endeavors a company elects to pursue

Which of the following are losses from pursuing unethical business strategies that are difficult to measure?

the dissatisfaction of employees with a damaged company reputation

Which of the following are losses from pursuing unethical business strategies that are difficult to measure?

the dissatisfaction of employees with a damages company reputation

A cultural norm at a company can be understood as _______.

the generally accepted methods of doing business on a day-to-day basis

Which of the following statements about the consequences of pursuing unethical business strategies is true?

the more serious the ethical offense, the more costly the damage

ethical universalism

the most fundamental concepts of right and wrong are universal and transcend culture, society, and religion.

short-termism

the tendency for managers to focus excessive attention on short-term performance objectives-is that it doesn't create value for customers or improve the firm's competitiveness in the marketplace; that is, it sacrifices the activities that are the most reliable drivers of higher profits and added shareholder value in the long run

In a world of ethical relativism _________

there are few absolutes for judging the conduct of a company in various markets

In a world of ethical relativism, ________

there are few absolutes for judging the conduct of a company in various markets

Senior executives can take steps to ensure that a company abides by its code of ethics by asking if _____.

there is anything in a proposed action that the SEC might consider objectionable

Senior executives can take steps to ensure that a company abides by its code of ethics by asking if _______.

there is anything in a proposed action that the SEC might consider objectionable

In general, business ethics consists of _______

The application of ethical principles and standards to the actions and decisions of business organizations

Which of the following statements about corporate social responsibility are true?

1. CSR strategies are often linked to a company's core values 2. "corporate citizenship" is a term commonly used to describe CSR initiatives 3. many firms organize their CSR strategies around these that are consistent with their production or marketing strategies

Examining which of the following are ways to determine whether a company is actually guided by its official code of ethics?

1. whether the company adheres to the code of ethics when crafting strategy 2. the extent to which daily operations follow the code of ethics

Companies that prohibit the payment of bribes and kickbacks in countries where these practices are customary risk _____.

losing business to competitors willing to engage in these practices

Ethical universalism ________

allows for a single set of standards

The term "triple bottom line" refers to which of the following performance metrics?

1. economic 2. social 3. environmental

Corporate social responsibility programs commonly include actions that ______.

1. enhance employees well-being 2. sustain the environment 3. promote diversity in the workforce

Companies with a reputation for social responsibility and sustainable business practices _____.

1. enhance their ability to retain employees 2. generally have lower costs for staff training and recruitment

In some countries it is common to pay bribes to government officials in order to accomplish which of the following?

1. facilitate an administrative ruling 2. obtain a license or permit 3. win a government contract

Which of the following practices increase the likelihood that a company will pursue unethical business strategies?

1. faulty oversight of daily business practices 2. putting pressure on company managers to meet short term targets

Research has shown a link between product boycott announcements and ____.

declining stock prices

Which of the following is a reason for a business to establish an ethical business strategy?

to provide a competitive advantage, serving the self-interest of shareholders

Ethical business strategies ______

typically arise from managers with strong moral characters

Which of the following statements best describes the Clorox company's corporate social agenda?

The company has linked its corporate social agenda with actions that support philanthropy and improve the quality of life.

Which of the following are examples of environmental strategies that demonstrate good corporate citizenship?

pressuring other companies in the supply chain to adopt environmentally sound practices

Cultural pressure at a company to hit goals at all costs ______.

1. virtually ensures that unethical employees will minimize the important of observing ethical standards 2. creates an environment in which workers have license to pursue any profitable strategy where can get away with 3. can cause even honorable employees to behave unethically

Short-termism at a company can do which of the following?

1. weaken the company's brand 2. undermine activities that promote long-term success

Ethical strategies are good business because they are likely to _________.

1. win the approval of suppliers, employees, and investors 2. sustain the reputation of the company

Sustainable practices can be defined as those practices that ________.

are capable of meeting the needs of the present without compromising the needs of the future

Adherents of ethical universalism are likely to believe that _______

common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople

Companies that cross ethical boundaries to meet short term goals are likely to _______.

continue to take unethical steps to meet requirements

Integrative social contracts theory ______

gives managers clear guidance when considering differences in ethical standards among countries

Unilever's repackaging of products in order to use less plastic has _______.

helped the company reduce the amount of waste that accumulates in landfills

ethical relativism

holds that a "one-size-fits-all" template for judging the ethical appropriateness of business actions and the behaviors of company personnel is total inappropriate. - whether certain actions or behaviors are ethically right to wrong depends not he ethical norms of the country or culture in which they take place

An environmental sustainability strategy can enhance a company's competitive advantage by ______.

promoting the company's reputation among environmentally conscious consumers

Integrative social contracts theory

provides a middle position between the opposing views of ethical universalism and ethical relativism - ethical standards a company should try to uphold are governed by both (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on behaviors in all situations and (2) the circumstances of local cultures, traditions, and values that further prescribe what constitutes ethically permissible behavior.

A corporate social responsibility strategy can be defined as _________.

the combination of socially responsible endeavors a company elects to pursue

sustainable busienss practices

those that meet the needs of the present without compromising the ability to meet the needs of the future

Examples of Unilever's sustainable business practices include ______.

1. showing overseas suppliers farming methods that reduce the use of pesticides and maximize annual yields 2. tracking agricultural indicators in the food-processing division of the corporation

Which of the following would be examples of sustainable business practices?

1. a corporation conducts a study in order to choose a production site where manufacturing will have the least impact on the environment 2. a corporation enters into business relationships only with suppliers that have taken steps to minimize their carbon footprint

In the business world, the term "sustainability" ________.

1. has been used interchangeably with the term "corporate social responsibility" 2. is used to refer to the relationship of a company to its environment and its use of natural resources

Adherents of the concept of ethical relativism believe that _______

1. holding a common template for judging the ethics of business actions everywhere is ethically problematic 2. given actions are ethically right or wrong depending on the ethical norms of the country in which they take place

Which of the following are indicators used to help rank companies in the Dow Jones Sustainability World index for socially conscious investors?

1. labor practices 2. climate change mitigation 3. corporate governance

Which of the following examples illustrate how socially responsible policies can save a company money in other areas?

1. a company offering insurance benefits to full-time and part-time employees and having lower rates of employee turnover 2. a company investing in a program that helped employees quit smoking and saving millions in health care costs

Damage to a company's reputation that results from unethical behavior can ____.

1. make creditors hesitant to loan funds to the company 2. encourage employees to leave the company 3. create challenges for recruiting talented staff in the future

Examples of environmental sustainability strategies include efforts to _____.

1. not threaten the stock of edible fish in the oceans 2. recuse the use of pesticides and fertilizers

Business managers who are not deeply committed to ethical principles may nevertheless act ethically because they ________

1. hope to prevent their staff from thinking negatively of them 2. wish to avoid scandal and disciplinary action 3. recognize the risks associate with unethical strategies

Although many people would agree that child labor is lamentable, others have noted that which of the following are true?

1. labor opportunities for children are preferable to a life of begging, drug trafficking, or prostitution 2. many poor families throughout the world require financial contributions from their children in order to survive

Which of the following are considered tangible, monetary costs of pursuing unethical business strategies?

1. legal fees 2. government imposed fines 3. fees for ethics training of personnel

Corporate social responsibility programs commonly include actions that ______.

1. promote diversity in the workforce 2. enhance employee well-being 3. sustain the environment

Ethical business managers _______.

1. provide an example to other employees by consciously living by the company's business principles 2. understand that there is a difference between simply having a code of ethics and seeing that the company follows it

Which of the following practices at the company Enron likely promoted unethical behavior among employees?

1. pursuing an aggressive performance evaluation process that led to dismissal of employees who did not bring in enough revenue 2. encouraging employees to operate outside of company policy to raise revenues 3. celebrating the wealth of high-performing employees to motivate other employees to match the star team's work results

Business managers who are not deeply committed to ethical principles may nevertheless act ethically because they ______

1. recognize the risks associated with unethical strategies 2. hope to prevent their staff from thinking negatively of them 3. wish to avoid scandal and disciplinary action

Examples of environmental sustainability strategies include efforts to ______.

1. reduce the use of pesticides and fertilizers 2. not threaten the stock of edible fish in the oceans

Which of the following sanction US companies that pay bribes and kickbacks?

1. securities and exchange commission 2. justice department 3. organization of economic cooperation and development

Which of the following sanction US companies that pay bribes and kickbacks?

1. securities and exchange commission 2. organization of economic cooperation and development 3. justice department

Which of the following statements is true concerning the thinking that the "business of business is business, not ethics?"

1. that type of thinking has been apparent in a number of business scandals covered in the media 2. that type of thinking is dangerous because ti increases the likelihood that a company will adopt unethical strategies

Which of the following statements about official codes of ethical conduct is most accurate?

In the US, publicly traded companies must have an official code of ethics or explain why they do not have one

The environmental sustainability strategies of Ford and Green Mountain Coffee Roasters have shown that ______.

a significant number of consumers will buy a company's products in part to encourage environmentally sustainable business practices

CSR strategy

defined by the specific combination of socially beneficial activities the company opts to support with its contributions of time, money, and other resources

Which of the following statements concerning the relationship between business and the environment is true?

maintaining the finite supply of the world's natural resources is crucial to the long term economic interests of corporations

self-dealing

occurs when managers take advantage of their position to further their own private interests rather than those of the firm.