Collins, Business Ethics 3e
SAGE Publishing, 2021
AACSB Standard: Social Impact
52. How does the text define “strategic philanthropy”?
a. The partnering of a company and the government to coordinate philanthropic giving
so that it has the biggest impact in a specific geographic region.
b. Planning on the part of a company so that giving does not damage the company’s
resources over the long term.
c. The partnering of a company and nonprofit organization to achieve a communal good
that also benefits the company.
d. Philanthropic giving by a company that contributes directly to the company’s value or
profit.
53. Which of the following scenarios qualifies as strategic philanthropy in a competitive
context social dimension?
a. An international coffee supply company donates money to struggling entrepreneurs
who open new restaurants in a major city.
b. A credit card company gives money to a nonprofit that donates used medical supplies
to international groups.
c. A hedge fund manager donates some of the employees’ time to tutor elementary
school children at a local public school.
d. A community giving nonprofit funds to a water treatment facility in a foreign
developing country.
54. Work-life balance refers to achieving ______.
a. the same ethical behaviors in both work and personal life
b. the appropriate balance between the intensity of work and quality of personal life
c. the appropriate balance between time spent working and one’s personal life
d. a solid integration of one’s work into one’s personal life
Collins, Business Ethics 3e
SAGE Publishing, 2021
55. What did Aristotle determine to be the meaning and purpose of life?
a. helping others
b. achieving happiness
c. learning about the world
d. learning to love
56. According to the Organization for Economic Co-operation and Development
(OECD), of the 30 developed nations, which country averages the highest score in the
“very–long work hour” category?
a. Columbia
b. Mexico
c. United States
d. Turkey
57. What does Erik Erikson’s conception of happiness have in common with Aristotle’s?
a. Both equate happiness almost exclusively with experiencing love.
b. They both see wealth as a key determiner of happiness.
c. They both see happiness as a balance between various factors.
d. Neither emphasizes work as an important component of happiness.
Collins, Business Ethics 3e
SAGE Publishing, 2021
58. Which of the following is true regarding the current state of work-life balance among
businesses in the United States?
a. Few, if any, organizations make consideration of work-life balance a priority.
b. Among OECD nations, the United States is the only country without a national paid
parental leave policy.
c. Federal legislation has guaranteed workers a minimum amount of telecommuting
time and vacation time based on a standardized “work–life balance” calculation.
d. The clear majority of companies now offer on-site day care, 16 paid weeks of
maternity leave, and in-house counseling services for new mothers.
59. What type of employee is most likely to benefit from community involvement by their
organization?
a. managers
b. adversarials
c. fence-sitters
d. go-getters
60. How does the text define philanthropy?
a. Any voluntary action that assists a nonprofit organization or people in need.
b. The donation of time to assist a nonprofit organization or people in need.
c. The donation of money or property to assist a nonprofit organization or people in
need.
d. The possession of goodwill toward those in a more disadvantaged position.
Collins, Business Ethics 3e
SAGE Publishing, 2021
61. Less than three months after the coronavirus pandemic appeared in Wuhan, China,
the World Health Organization established a Solidarity Response Fund for the most
vulnerable populations in nations with the weakest health systems. The fund represents
which type of community involvement ?
a. global giving
b. strategic
c. issues-related
d. voluntary
62. Salesforce.com’s “1/1/1 Model” gives which of the following in 1 percent quantities
to philanthropic purposes?
a. time, money, and intention
b. stock shares, profits, and products
c. employees’, managers’, and customers’ time
d. stock shares, products, and employees’ time
63. The process for authentic engagement between the company and the community
closely parallels which process?
a. managing-environmental-change
b. strategic-planning
c. outreach decision-making
d. community-involvement
Collins, Business Ethics 3e
SAGE Publishing, 2021
64. What lesson can be learned from the way the company Timberland uses its
community service projects?
a. Engaging in community service is correlated with higher profits.
b. Community service is the best way to engage and turn around problem employees.
c. Community service can double as manager training for employees.
d. Community service is a way to bring executive management closer to low-level
employees.
65. With respect to business, what do the media, activists, NGOs, and government
agencies all have in common?
a. They impose structural restrictions on business behavior.
b. They enable unethical behavior by businesses.
c. They hold businesses accountable for social consequences of their activities.
d. They partner with businesses on community service projects.
66. From a manager’s perspective, which is true about stakeholders?
a. Underprivileged stakeholders tend to hold the most sway in organizational decision–
making.
b. Stakeholders with a financial link to the company tend to be the priority.
c. Stakeholders with legitimate power have the greatest organizational influence.
d. All stakeholders should be considered a priority.
67. Based on the typology developed by Ronald Mitchel, Bradley Agle, and Donna
Wood, which of the following would qualify as a high-legitimacy stakeholder?
Collins, Business Ethics 3e
SAGE Publishing, 2021
a. a well-known and loved volunteer firefighters’ association president
b. a labor union for the company’s industry during an economic boom
c. a single customer who will lose her home if an issue with the company is not resolved
d. a government regulator who is about to audit the company
68. When looking at the stakeholder characteristics of power, legitimacy, and urgency,
______.
a. power should be given the most attention
b. the presence of any one characteristic should be carefully considered by managers
c. urgency should be given the most priority
d. manager should not fail to neglect personal affiliation or emotional connection
69. Tamyra pursues an interactive strategy for managing stakeholders. What is Tamyra
likely to do that managers pursuing reactive or proactive strategies will likely not?
a. Ask for help from internal managers.
b. Feel panic or anxiety at the arrival of a problem.
c. Determine solutions to problems before they arrive.
d. Give stakeholders more of a say in solving problems.
70. Which of the following is least associated with unilateral decision making?
a. reactive stakeholder strategy
b. interactive stakeholder strategy
c. proactive stakeholder strategy
d. delegating stakeholder strategies
Collins, Business Ethics 3e
SAGE Publishing, 2021
71. Which of the following is recommended for the initiation phase of a multi-stakeholder
dialogue?
a. beginning with your perspective on the problem and proposing a solution
b. excluding problem stakeholders that will cause disruptions
c. meeting with each stakeholder independently
d. using an independent third-party facilitator
72. During the acquaintance phase of an issue-driven, multi-stakeholder dialogue, what
is the most important role for the organization manager who has called the meeting?
a. listening to stakeholders and being able to paraphrase their perspectives
b. representing the organization’s perspective with confidence
c. proposing empathetic solutions
d. serving as facilitator for the stakeholder’s dialogues with each other
73. In an issue-driven multi-stakeholder dialogue, how does the second agreement
phase differ from the first agreement phase?
a. Solutions are introduced.
b. Consensus is reached on what the problem is.
c. The manager now speaks, and the stakeholders remain silent.
d. Stakeholders become more engaged in the process.
Collins, Business Ethics 3e
SAGE Publishing, 2021
74. How should the implementation phase begin in an issue-driven multi-stakeholder
dialogue?
a. with agreement that any solution reached is binding on all stakeholders
b. by allowing any unhappy stakeholders to withdraw from the dialogue
c. with agreement that solutions should only be reached by consensus
d. with recognition that every stakeholder may have to sacrifice something
75. In Julia Roloff’s six phases of issues-driven multi-stakeholder dialogues, which of
the following phases is likely to last the longest?
a. implementation
b. consolidation
c. initiation
d. acquaintance
76. How would the institutionalization phase differ from the extinction phase in an issue–
driven multi-stakeholder dialogue?
a. It allows stakeholders to withdraw from the dialogue of their own volition.
b. It prolongs implementation of the issue solution.
c. It presumes work with the same stakeholders on future, different issues.
d. It restarts the dialogue process when the previous solution proves unsatisfactory.
Collins, Business Ethics 3e
SAGE Publishing, 2021
77. As the business manager, what should Carlos do to ensure continued dialogue in
the acquaintance phase of issues-driven multistakeholder dialogues?
a. make sure the most prominent stakeholder groups participate
b. take the lead in demonstrating empathy toward the other stakeholders
c. keep the channels of communication open
d. explain the importance of using unilateral decision-making
78. How does the text recommend that an organization find out if its outreach efforts are
being noticed by the community?
a. Have the organization’s own employees take informal surveys.
b. Give the Corporate Philanthropy Index survey to multiple stakeholders.
c. Poll clients and customers about their experience with the organization.
d. Search for media reporting about the organization.
79. What is the purpose of the Global Reporting Initiative (GRI)?
a. provide businesses with a mean and standard for self-reporting social performance
b. create labor laws that are enforced rigidly on a global scale
c. measure and report on the progress made by developing countries in adopting
developed country standards
d. allow workers in developed countries to whistleblow about unfair labor practices
80. GRI’s economic standards measure ______.
a. base financial performance
b. impact on host country GDP
c. economic impact in a company’s close community
Collins, Business Ethics 3e
SAGE Publishing, 2021
d. economic impact throughout society
True/False
1. One ethical risk associated with doing business globally is differences in political and
regulatory norms.
2. Corporate citizenship has a legal obligations dimension.
3. When operating abroad, American businesses are obligated to obey both U.S. laws
and host nation laws.
4. The clear majority of businesses represented by the U.S. Chamber of Commerce are
small businesses.
Collins, Business Ethics 3e
SAGE Publishing, 2021
5. The United Way seeks to link businesses interested in philanthropy with nonprofits
that perform that function.
6. Many companies that grant sabbaticals to employees require that those employees
work on projects unrelated to their job during that time.
7. Strategic philanthropic partnerships should be weighted so that the nonprofit benefits
far more than the company.
8. A stakeholder with a high level of power is one who has a high standing in the
community.
9. In the acquaintance phase of issues-driven multi-stakeholder dialogues, it is okay for
stakeholders to bring in “experts” to speak on the issue with authority.
10. If an issue-driven multi-stakeholder dialogue goes through the institutionalization or
extinction phase, the organization manager chooses to dissolve the group and cease
communication with the stakeholders.
Short Answer
1. What is the purpose of the Foreign Corrupt Practices Act (FCPA)?
2. Describe the nature and prevalence of sweatshops.
3. Who does the Better Business Bureau serve and with what services?
Collins, Business Ethics 3e
SAGE Publishing, 2021
4. Contrast philanthropy with volunteerism.
5. Describe the first agreement phase of issues-driven multi-stakeholder dialogues.
Essay
1. Kiara, an American business manager, has paid a government official for a work
permit for some employees in a foreign host country. This kind of bribe is very common
in the host country and is not even prosecuted by the law. Why is this behavior
unethical?
Collins, Business Ethics 3e
SAGE Publishing, 2021
2. Explain how corporate citizenship affects employee and customer relations.
3. How does giving skills compare to giving money or products?
4. Tech Knowledge Software (TKS) corporation is in the process of identifying a local
community organization to form a strategic partnership. A preliminary list has been
drafted, and now they have asked you to recommend how they should proceed with
narrowing down the list. What is your recommendation?
Collins, Business Ethics 3e
SAGE Publishing, 2021
5. Neda is a top-level manager at a mid-sized financial services company. The number
and variety of stakeholders who reach out to her with problems or issues is truly large,
and Neda is having trouble deciding which ones to give time and attention to. How
should Neda analyze and respond to stakeholder demands?