55) What is the result of two or more firms collaborating on a wrongful act, such as price fixing?
A) Unfair pricing
B) Price gouging
C) Product collaboration
D) Collusion
E) Consumerism
56) What is the term for an employee who discovers an illegal or unethical activity and tries to
put an end to it by speaking up?
A) Whistle-blower
B) Inside trader
C) Obstructionist
D) Colluder
E) Accommodator
57) When a stakeholder uses confidential information to gain from the sale or purchase of a
stock, what ethical violation are they engaging in?
A) Whistle-blowing
B) Insider training
C) Social accommodation
D) Collusions
E) Gouging
58) What Act requires an organization’s chief financial officer to personally guarantee the
accuracy of all financial reporting?
A) Generally Accepted Accounting Principles (GAAP)
B) Securities and Exchange Commission (SEC)
C) Sarbanes-Oxley
D) False Claims Act of 1863
E) Whistle-Blower Protection
59) A company that does not act responsibly toward its customers may lose their trust and
ultimately their business.
60) The Consumer Bill of Rights is backed by numerous federal and state laws.
61) What is collusion?
62) Define consumerism.
63) Identify who is responsible for regulating advertising and what the key issues are.
64) What is insider trading? Why would an investor engage in it?
65) If a firm hides responsibility for wrongdoing, what type of stance are they taking toward
social responsibility?
A) Responsible
B) Obstructionist
C) Accommodative
D) Proactive
E) Moderate
66) What concept is supported by those who believe that corporations should help improve the
lives of citizens?
A) Social auditing
B) Government initiative
C) Collusion
D) Social responsibility
E) Social accommodation
67) What stance do firms who do as little as possible to solve social or environmental problems
take?
A) Social accommodation
B) Obstructionist
C) Defensive
D) Accommodative
E) Proactive
68) If a manager believes their job is to generate profits and is willing to do everything legally
required, but no more, what social responsibility stance is being taken?
A) Proactive
B) Accommodative
C) Defensive
D) Obstructionist
E) Social accommodation
69) Firms that meet, and occasionally exceed legal and ethical requirements take what type of
social responsibility stance?
A) Proactive
B) Social accommodation
C) Defensive
D) Accommodative
E) Obstructionist
70) Those firms who look for opportunities to contribute positively to society because of a
sincere desire to improve social welfare take what type of social responsibility stance?
A) Obstructionist
B) Accommodative
C) Social accommodations
D) Defensive
E) Proactive
71) What is the most common and direct way to provide direct financial support when taking a
proactive stance to social responsibility?
A) Set up a foundation
B) Reduce prices
C) Make a donation with each purchase
D) Use the Internet to solicit donations
E) Follow all laws set forth by the government
72) In business, ethical decisions are generally based on what?
A) Social responsibility
B) Individual ethics
C) Laws
D) Societal norms
E) Stakeholder returns
73) The proactive approach to social responsibility argues that profits should not be spent on
social programs.
74) The best stance toward social responsibility a company can take is a proactive one.
75) There is general consensus within the United States that social responsibility must take
precedence over profits.
76) Small businesses must answer many of the same social responsibility questions as big
businesses.
77) How do issues of social responsibility and ethics affect small business?
78) Identify two arguments against social responsibility as a business goal.
79) How does the government affect the idea of social responsibility in a planned economy?
A) The government requires higher stakeholder returns.
B) The government passes laws to make sure business interests do not damage society.
C) The government heavily regulates business activities to ensure the business supports social
ideals.
D) The government attempts to offset small business restrictions.
E) The government limits regulations in exchange for planned giving.
80) When the government dictates what organizations can and cannot do, what tactic is the
government using?
A) Social responsibility
B) Taxation
C) Stakeholder support
D) Regulation
E) Socialism
81) Where do government regulations evolve from?
A) Laws
B) The National Labor Relations Board
C) Indirect channels
D) The Foreign Corrupt Practices Act
E) Social beliefs
82) What government agency has the responsibility to handle investor-related issues?
A) SEC
B) Department of Labor
C) FTC
D) Environmental Protection Agency
E) EEOC
83) What government agency has the responsibility to oversee consumer-related concerns?
A) Department of Labor
B) FTC
C) Equal Employment Opportunity Commission
D) SEC
E) National Labor Relations Board
84) Which of the following allows for financial sanctions against businesses or business officials
who engage in bribery?
A) Sarbanes-Oxley Act
B) SEC Act
C) U.S. Foreign Corrupt Practices Act
D) NRA
E) Political Action Committees
85) In what way can the government use indirect regulation to affect social responsibility?
A) Enacting laws
B) Supporting shareholders
C) Imposing fines to violators
D) Providing tax incentives
E) Cooperating with foreign governments
86) In what way can a business or industry represent themselves before political bodies in order
to influence the government?
A) Personal contacts
B) Financial gifts
C) Lobbying
D) Offering favors
E) Voting
87) If an individual business person wanted to present his or her opinion on a piece of
legislations, what method might be used?
A) Voting
B) Lobbying
C) Favors
D) Personal contacts
E) Political action committee meetings
88) What types of organizations are used to solicit money that then is distributed to political
candidates?
A) Lobbies
B) Government agencies
C) Stakeholders
D) Ethical compliance leaders
E) Political action committees
89) When a business hires a staff to formally represent the organization before a political body,
in efforts to influence that political body, the business is
A) using personal contacts.
B) starting a political action committee.
C) lobbying.
D) asking for favors.
E) campaigning.
90) Soliciting favors from an organization or politician, or other influence tactics to gain support
are often legal.
91) Government will most often influence organizations through the establishment of laws and
rules that dictate what organizations can and cannot do.
92) Discuss the difference between lobbying and using Political Action Committees as a means
to influence government.
93) Which of the following is a way to tell how an organization is doing in meeting its social
responsibility goals?
A) Governmental mandate
B) Executive summary
C) Social audit
D) Government initiative
E) Financial report
94) Because of the influence of a more sophisticated and educated public, what approach should
corporations take to develop social responsibility plans?
A) The same approach they take when developing any other business strategy
B) Create new legal and implied requirements
C) Develop an informal plan and use it to see what work before incorporating those ideas to a
formal plan
D) Increase ethical understanding and training for leadership
E) Increase philanthropic giving
95) Which of the following is an informal dimension for managing social responsibility?
A) Legal compliance
B) Whistle-blowing
C) PAC committees
D) Ethical compliance
E) Philanthropic giving
96) What is the extent to which an organization conforms to local, state, federal, and
international laws known as?
A) Government agency support
B) Social responsibility
C) Legal compliance
D) Political action
E) Free-trade
97) What is the extent to which members of an organization follow basic ethical and legal
standards of behavior?
A) Social responsibility
B) Norms
C) Values
D) Ethical compliance
E) Legal compliance
98) Which of the following is the act of awarding funds or gifts to charities?
A) Ethical compliance
B) Political action
C) Lobbying
D) Informal dimensions of giving
E) Philanthropic giving
99) Which of the following best supports an organization’s stance in terms of social
responsibility and ethical leadership?
A) Philanthropic giving
B) Organizational leadership practices
C) Line and staff members
D) Stakeholders
E) Government intervention
100) To ensure efforts are producing the desired benefit, what must a socially responsible
business use?
A) Government regulation
B) The concept of control to social responsibility
C) Ethics policies
D) Internet campaigns
E) Senior leadership task forces
101) When conducting a corporate social audit, what must be evaluated?
A) Efforts of competitors
B) General goals that are flexible, based on need
C) The resources devoted to each goal
D) The strength of the leadership team
E) International laws and regulation
102) The use of formal committees, training, and codes of conduct help to ensure standards of
________ within an organization.
A) ethical compliance
B) philanthropic giving
C) organizational leadership
D) social responsibility
E) legal compliance
103) A whistle-blower is an outsider who reports publicly on the wrongdoings of companies.
104) Most firms use outside auditors to conduct their social audit.
105) Most philanthropic giving in the United States is targeted towards the arts.
106) Discuss ways in which an organization can help to ensure all members of the organization
participate in ethical compliance.