Collins, Business Ethics 3e
SAGE Publishing, 2021
Test Bank
CHAPTER 13: COMMUNITY OUTREACH AND RESPECT
Multiple Choice
1. Who unified the trade route connecting East Asia with Christian Europe?
a. Genghis Kahn
b. Julius Caesar
c. Alexander the Great
d. Cleopatra
2. Blake is the CEO of Blake Bakes, Inc. headquartered in Pittsburgh, PA with six
additional locations in the greater Pittsburgh area. Blake Bakes Board of Directors has
just approved the opening a new location in Ontario, Canada. How will this change the
status of Blake Bakes?
a. It will be a global corporation.
b. It will be a multinational corporation.
c. It will be a public corporation.
d. It will be a private corporation.
3. When did the third globalization period begin?
a. Around 2000 when Internet capabilities made it easier to work together globally.
b. Around 1800 when companies entered global markets through multinational
corporations.
c. Around 1500 when western European nations searched the world for new resources.
d. Around 1900 when the Smoot-Hawley Tariff Act was passed.
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4. Which of the following organizations can assist a country seeking to negotiate a trade
agreement or settle a trade dispute?
a. United Nations (UN)
b. International Monetary Fund (IMF)
c. World Trade Organization (WTO)
d. International Organization for Standardization (ISO)
5. The economy of Brazil has been severely impacted as a result of the coronavirus
pandemic. Which organization can help Brazil increase employment rates and attain
financial stability?
a. United Way
b. World Trade Organization
c. World Bank
d. International Monetary Fund
6. Why were American multinational companies able to solidify U.S. world dominance in
the 20th century?
a. The United States established trade agreements with the majority of European
nations in the 19th century.
b. European nations’ economies were devastated after two world wars.
c. The GDP of the United States was far above European nations at the start of the 20th
century.
d. European countries prefer American-made products over European-made products.
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7. Production Corp is a company producing a non-recyclable plastic cap for another
American company. Production Corp uses a mold they purchased from Portugal. The
mold was made from steel produced in China. The plastic used to make the cap is
derived from Canadian crude oil. For this plastic cap to complete its global product life–
cycle, which of the following must occur?
a. The product with the cap is purchased by a consumer in Italy.
b. The cap ends up in a landfill in France.
c. The molding company ships the cap to their customer.
d. The manufacturer of the product attaches the cap to their product.
8. What did the East India Company use to become one of the most powerful
corporations in the world during the second globalization period?
a. unrestricted use of trade routes
b. local shareholders in every market
c. worldwide free trade agreements
d. its own army
9. Calondra has used the same accounting firm to prepare the corporate tax returns for
12 years because the firm has always found a way to exploit tax loopholes which lower
Calondra’s tax bill. Exploiting tax loopholes is an unintended consequence of which type
of political system?
a. totalitarianism
b. socialism
c. communism
d. capitalism
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10. McKinsey & Company was adversely affected by the political norms and risks of
conducting international business. What was the outcome?
a. The imperialistic attitude was not well received in the host country.
b. They were forced to pay fines and reparations.
c. Some of their employees were killed.
d. They are now linked by association to corruption.
11. How does the integrative social contract theory (ISCT) most benefit organizations?
a. It helps companies determine how to expand within the same country where the
company was founded.
b. It helps companies guide their behavior by thinking through conflicts between cultural
norms.
c. It provides a means for companies to work with local nonprofits.
d. It provides a means for companies to invest directly into their communities.
12. Every Friday night nearly every resident of Starfield, Texas attends high school
football games. What is this an example of?
a. a macrosocial contract
b. a microsocial contract
c. a community contract
d. an integrative social contract
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13. What is the foundation for the United Nations Global Compact (UNGC)?
a. abolishing child labor
b. establishing business standards
c. determining universal norms
d. prioritizing sustainability
14. Gambi is preparing the company’s annual public statement outlining the steps taken
to ensure that human trafficking is not in any part of the company business or in any of
its supply chains in compliance with which national policy?
a. The Global Slavery Index
b. The American Investment Act 2019
c. The United Nations Global Compact
d. The United Kingdom’s Modern Slavery Act 2015
15. When an American company pays bribes to the government in a host country,
where is the most damage done?
a. in the host country business, which has made an unethical deal
b. in the American business, which may suffer a loss of profitability
c. in the United States, which suffers loss of reputation
d. in the host country, where the bribes reinforce and grow unethical behavior
16. Where did the United States rank among the world’s nations in Transparency
International’s annual Corruption Perceptions Index in 2018?
a. 5th
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b. 10th
c. 18th
d. 34th
17. An American business manager makes a bribe to a foreign government official in a
host country where such a bribe is not illegal. What would happen?
a. The manager will be punished by the host country because it must enforce American
laws.
b. Even if caught, the manager will not be punished because he did not break the host
country’s laws.
c. If caught, the manager may end up in an American jail because the bribe breaks
American law even though it did not happen on American soil.
d. At most, the American manager will have to pay a fine in the United States.
18. The purpose of the Anti-Bribery Convention is to ______.
a. have developed nations criminalize the payment of bribes in developing nations
b. criminalize bribery worldwide
c. hold developing nations accountable for allowing bribery of government officials
d. criminalize bribes made in developed nations
19. Where are most sweatshops located?
a. Eastern Europe and East and South Asia
b. Asia and Central and South America
c. South America and Africa
d. Africa and Eastern Europe
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20. Which of the following arguments might a utilitarian make when defending
sweatshops?
a. The sweatshop worker is being given an opportunity to rise to management and get
out of poverty.
b. Sweatshop conditions are not a violation of the countries where they are housed.
c. The closure of a sweatshop would harm its workers by dooming them to greater
poverty.
d. The workers in a sweatshop enjoy their work due to cultural differences.
21. When determining whether or not a company is serious about its ethical and social
performance, what should you look for?
a. a company who has registered UNGC status in their home country
b. a company who has been delisted from the UNGC
c. a company with UNGC certification
d. a company who is a current UNGC signatory
22. How does the Social Accountability International (SAI) help to ensure that a supplier
or company subsidiary is sweatshop or child labor-free?
a. by training auditors, inspectors, and compliance officers
b. by conducting unannounced audits of participating companies
c. by levying financial penalties on offending organizations
d. by representing companies who belong to the Fair Labor Association (FLA)
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23. As of 2020, how many nations have agreed to operate according to the United
Nations Global Compact?
a. 160+
b. 180+
c. 200+
d. 220+
24. What kind of question would be asked to assess land and property community
impacts?
a. Will the land purchase and sourcing of food commodities make housing and food
scarce or too expensive for locals?
b. Does the purchase of land cause a legal concern?
c. Have local developers been given first right of refusal?
d. Has the appropriate permits be signed off on by local officials?
25. The United Nations Global Compact (UNGC) Principles seeks to improve the
______.
a. moral nature of conducting business around the world
b. access that developed nations have to developing-nation workers
c. quality of life of labor migrants around the world
d. environmental laws applied at the national level around the world
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26. What happens if a UNGC signatory does not live up to the standards of the
compact?
a. It is delisted.
b. It is fined based on the severity of the failure.
c. It is excluded from the United Nations.
d. No action is taken.
27. Which of the following is true about corporate social responsibility (CSR)?
a. It is only practiced in western societies.
b. It is a universal norm found in all cultures and religions.
c. It is the main focus of the Fair Labor Association (FLA).
d. It is required by all publicly traded companies in the United States.
28. Camaratta is using the Better World Shopping Guide. What is Camaratta likely
trying to find?
a. a company to hold accountable for a high carbon footprint
b. products of companies that respect social justice
c. a volunteer project to join in the community
d. a list of places that need charitable donations
29. Investment decisions are being increasingly influenced by ______.
a. long-term stock growth or decline
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b. employee turnover rate
c. profit margins
d. nonfinancial disclosures
30. Which of the following companies must change an aspect of their business in order
to pass the MSCI KLD 400 Social Index screening?
a. An alternative energy company that has equitable pay and board composition rules.
b. A company that scores high on the social index “governance screen.”
c. A farming company that has highly ethical employment practices and produces
genetically modified crops.
d. A company with a superior record on human rights but with a high stock price.
31. Why might a business manager join the Rotary?
a. to network with other business leaders
b. to gain political influence in the community
c. to learn best practices for environmental behavior
d. to find new customers
32. Which of the following is a professional networking and service organization that
conducts outreach to college and university students?
a. United Way
b. Rotaract
c. Better Business Bureau
d. Chamber of Commerce
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33. How does the Better Business Bureau differ from Rotary International?
a. It puts a greater focus on improving the local community.
b. It is international instead of domestic.
c. It is more focused on improving business conduct than community service projects.
d. There is less networking between business members.
34. How does the Businesses for Social Responsibility differ from the Better Business
Bureau and Rotary International?
a. It focuses on smaller businesses rather than larger corporate entities.
b. Its members are managers and employees, not actual businesses as a whole.
c. Its members are more focused on longevity and financial success.
d. Its members receive services in return for dues.
35. Why must one be careful about joining business associations that support lobbying
efforts?
a. Many lobbying groups are highly influenced by social group relativism.
b. Many lobbying groups are highly influenced by utilitarianism.
c. Most lobbying groups use illegal means, such as cash donations to politicians, to
achieve their goals.
d. Most lobbying groups are thoroughly partisan in their political nature.
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36. Which of the following companies are better corporate citizens, according to The
Better World Shopping Guide?
a. Walmart
b. New Belgium Brewing
c. Kraft
d. Heinz
37. Sophie is a 26-year-old millennial and is considering two job offers. One of the offers
is a department manager at Walmart and the other offer is a brand manager for Seventh
Generation. If Sophie is a typical millennial, which of the following will greatly influence
the decision?
a. the company’s social performance reputation
b. the company’s level of community involvement
c. the company’s policies on promoting from within
d. the company’s policies on tuition reimbursement
38. A journalist who wants to write a story about a social entrepreneur would follow–up
on which of the following story ideas?
a. an attorney who donates legal services to immigrants seeking citizenship
b. a t-shirt designer who sells shirts then donates 10% of profits to a charity
c. the owner of a company who sells blankets sewn by refugees
d. a nonprofit executive director whose association seeks to increase literacy
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39. Which of the following qualifies as social entrepreneurship?
a. A for-profit company that donates a small portion of its profits to philanthropic causes.
b. A hybrid business model that seeks to drive social change.
c. A manager who works to help nonprofits and charities develop a long-term vision.
d. A manager, particularly in finance, who works as a consultant for social
organizations.
40. If you purchase a product listed as “fair trade,” you can be confident that ______.
a. the maker or seller is not living in poverty
b. the product was produced with sustainable practices
c. the supply chain of the product was entirely free of unethical practices
d. a Western-level price was paid to the maker of the product
41. How does the fair trade system differ from the free trade system?
a. The seller can sell product based on what the market will allow.
b. The buyer must undergo much harsher analysis of internal company processes.
c. The buyer and seller do not have as much freedom to agree on a price.
d. The buyer and seller are both from countries that abide by developed-country laws
and standards.
42. If a “fair trade premium” is paid by a buyer of coffee, that money goes to ______.
a. the seller’s family
b. the host country government
c. a producer cooperative
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d. a local environmental protection nonprofit
43. The Zain Group employs women in multiple African nations that rent family-shared
headsets to help access business information and reduce travel costs. This business
opportunity works to address poverty through ______.
a. enabling free trade
b. encouraging widespread social entrepreneurship
c. purchase of fair trade products
d. providing support to people living at the bottom of the pyramid
44. What need initially brought about the development of social entrepreneurship?
a. nonprofits that realized the need for long-term funding
b. business leaders who grew unhappy with the pure pursuit of profits
c. the failure of domestic American charities to address international needs
d. the failure of nonprofits to address local concerns instead of broad national or
international ones
45. People who take the Gates Foundation’s “Giving Pledge,” are promising to do which
of the following?
a. direct 10% of business profits to fund global health charities
b. start a charitable foundation focused on literacy
c. donate a minimum of one million dollars to environmental organizations annually
d. donate a majority of their wealth to philanthropy
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46. What is a recommended strategy for keeping point–of-sale customer giving
campaigns healthy and viable?
a. Ask for relatively high dollar amounts to make a big impact.
b. Have recipients of the charitable giving present.
c. Run them only for short amounts of time.
d. Target only high-disposable-income customers.
47. What is an in-kind donation?
a. donations of equity or value in a company instead of cash
b. noncash donations of products
c. giving through a third party instead of directly to those in need
d. donations of time and effort instead of cash or products
48. When, and only when, is an in-kind donation tax deductible?
a. The recipient is government certified as being in need.
b. The donation is made through a 501(c)(3) organization.
c. The donation is made through the organization’s own proprietary foundation.
d. The recipient receives the donation directly, with no third party involved.
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49. Ricardo, a veteran, owns a small business and wants to hire veterans with
disabilities returning from active duty in combat zones, but lacks the skills to help them
and is concerned about meeting production goals. Which of the following solutions
would be most helpful to Ricardo?
a. become a member of the United Way
b. reach out to networking groups for guidance
c. calling the Department of Veteran’s Affairs center for a broader pool of applicants
d. partnering with a nonprofit organization that provides specialized training
50. Atu has been tasked with giving $50,000 worth of the company’s money to charities
that will have a big impact on those in need. Why might Atu choose to give the money to
the United Way instead of distributing the money personally?
a. The United Way can give internationally; Atu’s company cannot.
b. Using the United Way will have a bigger impact on improving the company’s
reputation.
c. The United Way will match the funds and increase the amount being given.
d. The United Way is better informed and able to get the money to charities that will do
the most good.
51. How does giving money through Kiva differ from giving through GlobalGiving or the
United Way?
a. Kiva has a political dimension, while the others do not.
b. Money committed goes to other nonprofits, not individuals.
c. Money committed is a loan, not a straight donation.
d. The giver cannot take credit for money given through Kiva.