Businesses and governments often clash over who should have access to personal data
found on devices such as smartphones and automobile black boxes.
In the “consumer self-help” approach to protecting consumer privacy rights, new
government regulations will protect the consumer online.
The doctrine of strict liability extends only to the retailer who is involved in selling the
product, not the manufacturer.
Black carbon is the second largest contributor to climate change, responsible for as
much as 18 percent of global warming.
The World Trade Organization conducts negotiations, called “cycles,” on various topics,
rotating its meetings among different cities.
Employment-at-will is a legal doctrine that means employees are hired and retain their
jobs at the sole discretion of the employer.
Managers, as major decision-makers, are one of the keys to whether a company will act
ethically or unethically.
Under the World Trade Organization’s most favored nation rule, member countries may
not discriminate against foreign products for any reason.
In the U.S., genetically modified foods were primarily used in fast-food restaurants.
Plants and animals living as a natural unified system are called an ecosystem.
The majority of large U.S. corporations do not have codes of ethics.
Beginning on a major scale in the 1960s, U.S. presidents issued executive orders and
Congress enacted laws intended to promote equal treatment of employees.
A Super PAC is a financial-incentive political strategy tool.
All overseas supplier factories that pay low wages are engaging in a highly unethical
social practice.
The two main types of investors that own shares of stock in U.S. corporations are
individuals and institutions.
A stakeholder map is a useful tool, because it enables managers to see quickly how
stakeholders feel about an issue and whether salient stakeholders tend to be in favor or
opposed.
The external environment of business is static.
Predatory pricing is a violation of antitrust laws.
The gap between those who have access to technology and those who do not is called
the digital divide.
The dominant feature of technology is change and then more change.
The term ‘supply webs” refers to the multiple steps taken to move a product or service
from the most distant supplier to the customer.
Current sustainability managers believe that the most important determinant of their
success is their subject-matter expertise.
The instrumental argument for the stakeholder theory of the firm says that companies
perform better if they consider the rights and concerns of multiple groups in society.
Critics have argued that honesty tests discriminate disproportionately against minorities.
Businesses and trade associations spend very little on lobbying.
Technology tends to ripple through society until it affects every community.
The construction industry has taken the lead in creating programs to revitalize
neighborhood housing.
About 20 percent of the world’s people have incomes below the international poverty
line.
Although many firms conduct business across national boundaries, most global
commerce is carried out by a small number of powerful firms.
Quality management emphasizes high quality and customer satisfaction through
continuous improvement of a company’s product or service at the final stages of the
production process.
How the general public perceives a business firm can have a major effect on its
performance.
Globalization directly and indirectly influences the politics, environment, geopolitics,
and economics of virtually every country in the world.
Emerging public issues are both a risk and an opportunity.
By setting a common standard for all firms, government can take the cost of pollution
control out of competition.
The stakeholder theory of the firm argues that a firm’s sole purpose is to create value for
its shareholders.
It is recommended that businesses use the same tactics to communicate with all
stakeholders.
It is impossible for multiple ethical climates to exist within one organization.
Recent reports indicate that sustainability is becoming a less strategic part of business.
Enlightened self-interest is the idea that the wealthiest members of society should be
charitable toward those less fortunate.
Some scholars have suggested that managers pay the most attention to stakeholders
possessing the least salience.
Dialogue between a single firm and its stakeholders is always sufficient to address an
issue effectively.
Richard M. Locke argues that global supply chains are best managed through a
combination of public and private governance because:
A. Government-enforced laws give legitimacy to demands for workplace changes.
B. Regulators benefit from record-keeping required by private companies’ codes of
conduct.
C. Public and private organizations are able to share the enforcement workload.
D. All of the above.
To influence government policymakers’ actions, an information strategy involves:
A. Business leaders speaking before government policymakers.
B. Government policymakers hiring special interest groups for fact-finding projects.
C. Businesses listening to government policymakers in order to develop a corporate
strategy.
D. Gaining support from other affected organizations.
According to a 2013 survey of senior supply chain managers, what is the leading reason
to invest in supplier social responsibility?
A. To reduce costs.
B. To satisfy government regulations.
C. To create a positive image and enhance brand equity.
D. To avoid disruptions of product supply.
Why does the inclusion of women on corporate boards improve company performance?
A. Alternative courses of action are more realistically considered.
B. Women bring different life experiences to discussions.
C. Women are more likely to raise multiple stakeholder concerns.
D. All of the above.
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.
As shown in Figure 2, in 2013 the countries with the highest and lowest percentages of
unionized labor, respectively, were:
A. Sweden, United States.
B. Japan, Mexico.
C. Norway, Austria.
D. United States, Denmark.
We are currently in which phase in the development of technology?
A. Industrial.
B. Service.
C. Information.
D. Semantic.
An identifying marker placed on a user’s computer hard drive during visits in order to
identify the user during each subsequent visit and to build profiles of their behavior
over time is called a:
A. Web beacon.
B. Deep packet.
C. Cookie.
D. Firewall.
In 2011, the Global Electoral Organization (GEO) discussed which critical election
administration issues?
A. How to disengage electoral stakeholders.
B. The role of the media in elections.
C. How to increase election disputes.
D. How to hide dark money contributions.
The issue management process has how may stages?
A. Three.
B. Four.
C. Five.
D. Six.
Which of the following is (are) core rights of consumers?
A. The right to safety.
B. The right to be represented.
C. The right to purchase.
D. All of the above.
Ethics policies typically cover all of the following issues except:
A. Developing guidelines for accepting or refusing gifts from suppliers.
B. Encouraging discriminatory personnel practices.
C. Avoiding conflict of interest.
D. Maintaining the security of proprietary information.
Which of these statements accurately describe(s) the “gig” (or sharing) economy?
A. Many companies have become more cost-efficient.
B. Risk has shifted from the worker to the company.
C. In many cases, income has decreased.
D. Both A and C, but not B.
Which ethical criterion is described by the idea that a company should strive for
efficiency?
A. Egoism.
B. Benevolence.
C. Principle.
D. Business-centered.
Among minority-owned firms in the mid-2010s, the most numerous were those owned
by:
A. Asians.
B. African-Americans.
C. Hispanics.
D. Native Americans.
Which law eliminated certain time restrictions for filing pay discrimination lawsuits?
A. Lilly Ledbetter Fair Pay Act of 2009.
B. Family and Medical Leave Act of 1993.
C. Equal Opportunity Employment Act of 1972.
D. Equal Pay Act of 1963.
A significant business disruption that stimulates extensive news media and social
networking coverage is called a(n):
A. Explosion.
B. Crisis management.
C. Corporate crisis.
D. Human error.
To help control political favoritism, there have been global efforts to:
A. Promote fairness in the electoral process.
B. Control the rapid decrease in campaign costs.
C. Diminish the role of political parties.
D. Discourage grassroots participation.
Bill Joy, Sun Microsystems’ chief scientist, warned that the rapid advances of
technology:
A. Solve every insurmountable problem in no time flat.
B. Move too fast, and can take on a life of its own.
C. Are the safest and most human friendly known to civilization.
D. Must be controlled by the companies that invest in them to protect society.
Which of the following is not true about the guidelines for sentencing environmental
wrongdoers set by the U.S. Sentencing Commission in the event of a violation?
A. The penalties reflect the severity of the offense and the company’s demonstrated
environmental commitment.
B. Businesses having an active compliance program would receive lighter sentences.
C. Businesses having no active compliance program would be granted an extension to
develop a program.
D. Businesses that promptly assisted any victims would receive lighter sentences.
Managers’ understanding of government regulations is:
A. Both a domestic and international issue.
B. Primarily a domestic issue.
C. Primarily an international issue.
D. An international issue only for large firms.
Deregulation has occurred in the following industries:
A. Commercial airlines, sheet metal, and interstate trucking.
B. Commercial airlines, railroads, and financial institutions.
C. Commercial airlines, interstate trucking, and silicon chip manufacturing.
D. Financial institutions, railroads, and silicon chip manufacturing.
Which of these factors has accelerated the current ecological crisis?
A. Population reduction.
B. World income equality.
C. Rapid industrialization.
D. All of the above.
Which stage of corporate environmental responsibility focuses on the full life cycle of a
product?
A. Pollution prevention stage.
B. Clean technology stage.
C. Product stewardship stage.
D. Green management stage.
Which of these statements accurately describe codes of conduct?
A. Most early codes of conduct were developed by individual companies.
B. The adoption rate of industry-specific codes of conduct is currently decreasing.
C. Standard-setting organizations have failed to influence industries and individual
firms.
D. The costs of building common industry standards have become prohibitive.
Average corporate giving in the Unites States:
A. Was lower in the 1980s than it is now.
B. Is far below the 10 percent tax deduction now permitted.
C. Has increased steadily in the past decade.
D. All of the above.
A stakeholder map is a useful tool because:
A. It enables mangers to see quickly how stakeholders feel about an issue.
B. It allows managers to evaluate what outcomes are likely regarding an issue.
C. It helps managers discourage or dissolve stakeholder coalitions.
D. Both A and B, but not C.
Businesses are expected to be ethical in their relationships with:
A. Stockholders.
B. Customers.
C. Competitors.
D. All of the above.
A CIO is the company’s:
A. Chief intelligence officer.
B. Chief information officer.
C. Coordinator of international operations.
D. Controller of internal overhead.
The growing diversity in the U.S. workforce is due to:
A. Millennials entering the workforce.
B. Immigration from other countries.
C. Shifting patterns of work and retirement.
D. All of the above.
Which of these statements is true about ecologically sustainable organizations?
A. Making and transporting products using minimal energy.
B. Using more natural resources than they replenish.
C. Designing products with limited durability.
D. A and B, but not C.
Anti-spam legislation was passed by which country making it a crime to send
unsolicited e-mail messages to people’s private e-mail addresses or cell phones:
A. China.
B. Japan.
C. United Kingdom.
D. Germany.
The unspoken understanding among employees of what is and is not acceptable
behavior is called:
A. Ethical climate.
B. Efficiency.
C. Success.
D. Rites and rituals.
A survey of hiring managers indicated that millennials were:
A. More technologically adept than their seniors.
B. Narcissistic and hard to retain.
C. Expected to stay in their jobs less than three years.
D. All of the above.
Describe the four elements of a complete assessment of the return on social investment.
How might each of these elements be measured? Which would be the hardest to
measure, and why do you think so?
Answer:
Answers may vary.
What is a social audit?
What are the key features of effective boards of directors?
Answer:
Answers may vary.
How do governments seek to cooperate with or oppose business? Does it matter
whether the government is legitimately elected or has illegitimately acquired power?
Answer:
Answers may vary.
What is competitive intelligence? Why is it important to the public affairs function?
Answer:
Answers may vary.
Do you think businesses should voluntarily undertake environmental efforts, beyond
those required by law? Why or why not?
Answer:
Answers may vary.
Explain why a business should seek to balance its economic, legal and social
obligations.
Answer:Answers may vary.
Who are the major participants in the political process and are they cooperative or
adversarial in their relations with each other?
Answer:
Answers may vary.
Describe a collaborative partnership between a business and community that attempts to
address a social problem. What strengths does each party bring to the collaboration?
Answer:
Answers may vary.
Construct a comprehensive ethics program using four of the five ethical safeguards
identified in the textbook.
Answer:Answers may vary.
What is meant by the Earth’s carrying capacity? How can it be measured?
Discuss why businesses should be ethical.
Answer:Answers may vary.
What new challenges emerge when public relations strategies take on a global
perspective?
Answer:
Answers may vary.
Why is the management and regulation of information technology a challenge for
governments and businesses? What are some advantages of the two entities working
together?
Answer:
Answers may vary.
Why do firms create public relations departments? Outline the structure and activities
of a typical department.
Answer:Answers may vary.
Discuss the issue of digital divide. Is it lessening or widening with more technological
innovation? How have businesses, government bodies, and nonprofit organizations met
the digital divide challenge?
Answer:
Answers may vary.
Global corporate citizenship is more than espoused values; it requires action. Discuss
some of the ways forward-thinking companies are changing to improve their ability to
act as responsible citizens.
Answer:Answers may vary.
There are four reasons stated in the textbook as to why ethical problems occur in
business. Identify the nature of each ethical problem and the typical approach taken in
response to the problem.
Answer:Answers may vary.