Lead firms often choose to develop their supplier’s capabilities when the supplier has a
strong management team, many resources, and high technical knowledge.
Firms are more likely to have a sophisticated political strategy when the company is a
frequent target of public scrutiny.
The term diversity refers to variation in the important human characteristics that
distinguish people from one another.
In many countries, the political environment has a select few participants.
In North America, mobile phones were first used primarily for m-commerce purposes.
In Europe, unions are prohibited by law to be on businesses’ administrative boards.
Legal environment includes the structure, processes, and actions of government at the
local, state, national, and international levels.
Government and business together establish the regulatory rules under which business
operates in society.
Employees in the United States have the right to organize and bargain collectively.
Electronic business exchanges between businesses and businesses and between
businesses and their customers emerged during the service phase of technological
development.
A social audit is a systematic evaluation of an organization’s social, ethical, and
environmental performance.
The normative argument for the stakeholder theory of the firm says that the stakeholder
view is simply a more realistic description of how companies really work.
When a manager directly employs a lobbyist to represent the company’s political
strategy in Washington this is called aggressive organizational involvement in politics.
Companies are learning that it is important to take a strategic approach to the
management of public issues, both domestically and globally.
Various stakeholder groups often use far different tactics than businesses to influence
government officials, elections, and regulation.
A business is any organization that is engaged in making a product or providing a
service for a profit.
Honesty, integrity and accuracy are absolute requirements of the accounting function.
The community relies heavily on business, but business is not mutually dependent on
the community.
Deforestationcutting down and not replacing treescontributes to global warming.
Industry ‘self-regulation” includes carrying out government mandated recalls.
Ethics training is typically the most costly element of an ethics program.
The public scrutiny following a corporate crisis can have a political, legal, financial,
and governmental impact on its business.
Labor unions have been an active participant in United States politics for decades.
In 2015, social network users in the U.S. spent over 76 hours per month on networking
sites.
An organization that purchases goods or services from another company is known as a
supplier.
It is illegal in the United States to offer stock trade tips to clients based on public
information.
Electronic medical records are guaranteed to be 100 percent accurate.
Consumer advocacy groups in the United States actively promote and speak for the
interests of millions of consumers.
In a benevolence ethical climate, the interests of the company’s employees and external
stakeholders most likely would be given high priority.
The United States has the most Internet users, more than any other country.
Stakeholder partnerships, high-tech communication networks, and sustainability audits
are examples of:
A. Corporate social stewardship.
B. Corporate social responsiveness.
C. Corporate/Business Ethics.
D. Corporate/Global Citizenship.
BSR (formerly Business for Social Responsibility) helps its 300 member companies:
A. Lobby Congress for socially responsible legislation.
B. Discover tax shelters for social program expenditures.
C. Conduct social audits.
D. Develop sustainable business strategies.
Recently released workplace statistics for high tech companies reveal:
A. A majority of their workers are white or Asian.
B. Women are more likely to be in technical roles.
C. Pinterest is the only high tech company surveyed with a majority female workforce.
D. No high tech company surveyed had a female CEO or COO.
Which of these conditions raise environmental concerns for supply chain managers?
A. The distance of transporting goods from their source to the consumer.
B. Efficiency within the supply chain.
C. The consolidation of carbon emissions.
D. Both A and B, but not C.
Companies that reduce pollution and hazardous waste, reuse or recycle materials, and
operate with greater energy efficiency achieve a competitive advantage due to:
A. Technological innovation.
B. Product differentiation.
C. Green marketing.
D. Cost savings.
The main drawback to utilitarian reasoning is that:
A. The majority may override the rights of those in the minority.
B. Managers using this reasoning process often fail to consider the means taken to reach
the end.
C. It is difficulty to accurately measure both costs and benefits.
D. Cost-benefit calculations can only be provided by accountants.
Positive reputation can be valued as an intangible corporate:
A. Asset.
B. Liability.
C. Charity.
D. Expense.
Which of these situations is not a reason for a firm to communicate through the media?
A. Repairing a damaged image.
B. Ignoring or downplaying an organizational crisis.
C. Managing its public relations.
D. Engaging with multiple stakeholders.
The iron law of responsibility says that:
A. In the long run, those who do not use power responsibly will lose it.
B. In the short run, sacrifice social goals for economic goals.
C. Law is most important, more than social or economic responsibility.
D. In the long run, economic responsibility leads to social responsibility.
A society where economic power is concentrated in the hands of government officials
and political authorities is called:
A. A central state control system.
B. A social democracy.
C. A political control system.
D. A military dictatorship.
The relevance and importance of stakeholders and their issues is known as:
A. Stakeholder salience.
B. Competitive intelligence.
C. Stakeholder materiality.
D. Organizational capacity.
Which of the following actions can a company take to effectively manage diversity and
inclusion?
A. Do not actively recruit ethnic minority workers.
B. Set up a diversity council to monitor the company’s goals.
C. Fire existing workers and replace them with ethnically diverse workers.
D. All of the above.
A technological application that uses biological systems or living organisms to make or
modify products or processes for specific use is called:
A. Biosphere outcome.
B. Metatechnology.
C. Biology.
D. Biotechnology.
Which of the following is not a function of board committees?
A. The executive committee works closely with top managers on business matters.
B. The audit committee reviews the company’s financial reports.
C. The compensation committee administers and approves salaries and benefits.
D. The finance committee works closely with the human resources department to fund
employee salaries.
What is one reason that firms partner with communities to increase economic
development?
A. To expand environmental sustainability.
B. To develop workplace skills.
C. To control the rate of entrepreneurship.
D. To avoid paying higher taxes.
When suppliers endure audit after audit by different lead firms, this is called:
A. Crowd-sourced auditing.
B. Third-party auditing.
C. Audit chaos.
D. Audit fatigue.
In some cases, businesses have banded together to agree on how they will treat their
customers. This is called:
A. Code of regulation.
B. Consumer affairs doctrine.
C. Voluntary industry codes of conduct.
D. Industry action standards.
Under the Sarbanes-Oxley Act, corporations are required to:
A. Have executives vouch for the accuracy of a firm’s financial reports.
B. Have their audit committee comprised of only executives employed by the firm.
C. Collect reimbursements from the U.S. government if financial restatements occur.
D. All of the above.
Corporations that run their operations according to the stakeholder theory of the firm
create value by:
A. Innovating new products.
B. Increasing their stock price.
C. Developing their employees’ professional skills.
D. All of the above.
What is one drawback of conducting supplier audits?
A. Workers trust the auditors to the point of giving away company secrets.
B. Audits scale so well across the supply chain that only general averages can be
collected.
C. On-site inspections are expensive.
D. On-site inspections are so fast that teams must conduct hundreds of them in a single
day.
The share of all giving made up by in-kind contributions of products and services has
been:
A. Rising steadily over the past decade.
B. Declining steadily over the past decade.
C. Remaining relatively constant over the past decade.
D. Declining sharply over the past decade.
Media training is especially important for which company roles?
A. Board of directors.
B. Individual contributors.
C. General Counsel.
D. Both A and C, but not B.
Which of the following is (are) true about child care assistance in the workplace?
A. It helps reduce employee absenteeism and tardiness.
B. It aids in recruiting workers by making the company more attractive to parents.
C. It helps retain talented employees.
D. All of the above.
The “agency problem” arises when:
A. Owners manage the company on their own behalf.
B. There is no separation of ownership and control in a company.
C. Managers act in their own interest, rather than in the interest of shareholders.
D. Shareholders act in their own interest, rather than in the interest of the board.
Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what
dimensions of diversity?
A. Primary.
B. Secondary.
C. Tertiary.
D. Legal.
Which of the following describe why the consumer movement exists?
A. Services have become less specialized.
B. Some product advertising claims have been inflated.
C. Some businesses have violated the public’s privacy.
D. Both B and C, but not A.
As an additional employee benefit to promote spirituality, companies have begun to
provide employees with the services of:
A. Philosophers.
B. Chaplains.
C. Financial advisors.
D. Ombudspersons.
According to an annual Gallup poll, which occupation was consistently ranked the
highest for honesty and ethics?
A. Congressional members.
B. Car salespeople.
C. Nurses.
D. Clergy.
Regulation can be argued as justified based on:
A. Collective market theory.
B. Utilitarian and justice grounds.
C. The life cycle of regulation.
D. Tradition.
In 2014, of the following nations, the fastest growing stock market was in:
A. United States.
B. Japan.
C. India.
D. Indonesia.
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 eight years.
C. They account for about seven percent of the earth’s surface.
D. They account for somewhere between 40 to 75 percent of the earth’s species.
Explain the process called stakeholder analysis. Include a description of its four key
questions.
Answer:Answers may vary.
Do you believe companies are ever justified in treating women or minority employees
differently, with respect to wages, benefits, job assignments, or promotions? If not, why
not? If so, under what conditions, and why?
Answer:
Answers may vary.
Commercial buildings and industrial facilities account for a major share of a company’s
environmental impact. Identify one business that has implemented green building
standards and describe the advantages they have gained from their efforts.
Answer:Answers may vary.
Describe how a firm might implement the “Say No Toolkit” to help combat corruption.
How could potential employee resistance be overcome? Could there be any downsides
to using the tool? In what ways could the firm benefit?
Answer:
Answers may vary.
Evaluate public opinion influencing strategies used by business organization, such as
public service announcements, image advertisements, paid content, and event
sponsorship.
Answer:Answers may vary.
What is a stakeholder map? Why is it a useful tool?
Answer:
Answers may vary.
Describe the ethical challenges regarding one of the following scientific breakthroughs:
genetically modified foods, human genome or stem cell research. Do the potential
benefits of this breakthrough outweigh the potential costs?
Answer:
Answers may vary.
Not all ethics issues in business are the same. Discuss the distinct ethical issues across
three different organizational functions. Highlight details of the professional codes of
conduct for each.
Answer:Answers may vary.
Identify and provide an example for each of the five major legal rights afforded to
shareholders.
Answer:Answers may vary.
How do firms develop a distinctive and positive reputation? How can the general public
affect a company’s reputation? Identify an organization that has recovered from having
a bad reputation and explain how the firm restored public confidence.
Answer:Answers may vary.
Briefly discuss the meaning of ethics.
Answer:Answers may vary.
Compare and contrast the relationships a firm may have with market and non-market
stakeholders.
Answer:Answers may vary.
Because of the movement towards quality management, companies are now focusing
on the customer. How does this occur? How could a specific industry be even more
socially responsible to its customers?
Answer:Explain.
Answers may vary.
What have businesses done to manage personal information about their employees and
customers?
Explain why some companies are establishing their own forms of private regulation.
Answer:Answers may vary.
Describe the role of an organization’s public affairs department and describe who would
be in charge of that department.
Answer:Answers may vary.
Provide three arguments in favor of corporate social responsibility.
Answer:Answers may vary.
Discuss the value of a recognizable brand. What can a company do to foster brand
appeal? What can customers do to voice dissatisfaction with a company’s products?
Answer:
Answers may vary.