Collins, Business Ethics 3e
SAGE Publishing, 2021
Test Bank
CHAPTER 12: ENVIRONMENTAL MANAGEMENT
Multiple Choice
1. When did the Industrial Revolution begin in the United States?
a. early 1700s
b. late 1700s
c. early 1800s
d. late 1800s
2. Climate change is defined as a long-term change in the Earth’s ______.
a. carbon dioxide (CO2) emissions
b. average atmospheric temperature
c. sea level
d. fossil fuel consumption
3. Greenhouse gas (GHG) serves as ______.
a. an atmospheric insulator
b. a fossil fuel
c. a synthetic-based energy source
d. a plant-based fuel source
Collins, Business Ethics 3e
SAGE Publishing, 2021
4. Which is one of the greatest challenges current business leaders must address?
a. greenhouse gas
b. environmental awareness
c. global sustainability
d. environmental regulation
5. What two components were essential to global warming as predicted by
meteorologist John Sawyer?
a. industrialization and deforestation
b. industrialization and CO2 emissions
c. population growth and decreased oxygen levels
d. depletion of ozone and CO2 emissions
6. According to the Centers of Disease Control and Prevention (CDC), people feeling
overwhelmed by the climate crisis and lack of meaningful action taken to address
climate change may develop ______.
a. respiratory-related disorders
b. cancer
c. suicidal or homicidal thoughts
d. anxiety and depression
7. Which of the following is among the likely scientific arguments made by a climate
scientist who opposes the idea of a human role in global warming?
a. Climate change models are not complex enough and alternative explanations have
not been conclusively ruled out.
Collins, Business Ethics 3e
SAGE Publishing, 2021
b. Humans have not significantly increased CO2 emissions over the last two centuries.
c. There is no significant evidence that global temperatures have been rising over the
last hundred years.
d. Most climate scientists are motivated by politics, not science.
8. Which of the following contributes the most to global greenhouse gases from human
beings?
a. oil
b. natural gas
c. coal
d. nuclear energy
9. What does the text mean when it says “Pollution has often been treated as an
externality”?
a. It was the responsibility of external stakeholders.
b. It is a public cost not included in product prices.
c. It was caused by sources other than the company.
d. It is an extra cost that must be considered when setting prices.
10. Which of the following statements about global warming and greenhouse gases
(GHG) is accurate?
a. CO2 emissions from fuel consumption at the time of the Industrial Revolution were
relatively high.
b. The United States consumes the most coal in the world by far.
c. Increasing levels of CO2 have created a thinner insulation layer around Earth.
Collins, Business Ethics 3e
SAGE Publishing, 2021
d. Greenhouse gases are necessary to make life on Earth possible.
11. In response to the federal government’s withdrawal from the Paris Agreement, a
number of U.S. states and cities formed associations that adopted Paris Agreement
goals. What is the name of this newly formed association?
a. The Governor’s Environment Council
b. The U.S. Climate Alliance
c. The Climate Leadership Council
d. The United Nations Environment Programme
12. Which of the following has been a consequence of government collapse due to the
inability to manage severe weather conditions?
a. Landmark legislation has been enacted in many underdeveloped countries.
b. Insurance companies no longer provide coverage in poor nations.
c. Environmental refugees have increased in number.
d. Greenhouse gas emissions have drastically fallen.
13. Which of the following is a projection of the bipartisan report Risky Business: The
Economic Risks of Climate Change in the United States?
2050.
Collins, Business Ethics 3e
SAGE Publishing, 2021
14. Kiara is in charge of the team that is designing an environmental concern and
sustainability plan for the company. Which of the following actions would have the
biggest environmental protection impact?
a. shifting from gas use to solar and wind for their factories
b. reducing the amount of packaging material employed for their products
c. shifting to recyclable materials for their product packaging
d. promoting their new environmental stands to both direct customers and the public at
large
15. Assuming that business continues as usual, what is the greatest climate change-
related economic risk to the Midwest region of the United States by the end of the 21st
century?
a. up to 70% loss in average annual crop yields
b. a 50% reduction in population due to migration to coastal areas
c. a 400% increase in health insurance premiums related to increased asthma
diagnoses
d. restrictive regulatory requirements will decrease regional gross domestic product
(GDP) by 7%
16. What constitutes an Americum?
a. North and South America
b. any continental grouping of people living an American lifestyle
c. the sum total of the American people’s greenhouse gas contribution in a year
d. any 350 million people living an American lifestyle
Collins, Business Ethics 3e
SAGE Publishing, 2021
17. In which of the following ways could the world go from five Americums to six?
a. The United States decreases its average standard of living.
b. The overall population of South America doubles.
c. 350 million more people in China begin living an American lifestyle.
d. Australia’s population beginning to reduce fossil fuel use.
18. What goal did In the Intergovernmental Panel on Climate Change (IPCC) set in
2009 with respect to global warming?
a. cutting global CO2 emissions in half by 2020
b. reducing human CO2 emissions to preindustrial levels
c. returning global temperatures to preindustrial levels
d. keeping global temperatures at 2°C above preindustrial levels
19. What contribution did the Earth Summit in Rio de Janeiro make to efforts involving
human-caused climate change?
a. a nonspecific accord of good faith
b. plans to record a benchmark of global GHG emissions at the 1990 level
c. plans to reduce global GHG emissions by 5 percent overall
d. plans to freeze global GHG emissions at 1990 levels
Collins, Business Ethics 3e
SAGE Publishing, 2021
20. Why would the Kyoto Protocol have affected the United States in a different way
than it would have affected India?
a. The U.S. population is growing more rapidly than the Indian population.
b. India would have had to reduce emissions less because it is not pursuing an
industrialized path.
c. India would have received economic assistance to help with industrialization.
d. India would have been exempt from reducing emissions, unlike the United States.
21. How did the Paris Agreement differ from the Kyoto Protocol?
a. The provisions were binding on signatories.
b. Fewer countries participated.
c. It did not make GHG emissions a priority.
d. It was less strict on developing countries like China.
22. When did the Paris Agreement go into effect?
a. 1990
b. 2000
c. 2016
d. 2006
23. Which of the following statements about China’s development is accurate?
a. China will soon be the largest CO2 emitter.
Collins, Business Ethics 3e
SAGE Publishing, 2021
b. Between 1990 and 2013, the Chinese unemployment rate declined by almost 25
percent.
c. If China implements free market reforms, its economy will grow at an even more rapid
rate.
d. Through industrialization, China has lowered their extreme poverty rate to less than
one percent in 2018.
24. A company in a country with an emissions trading system (ETS) will hit its
government-mandated emissions limit before the allotted year is finished. What ethical
action is open to it?
a. Try to purchase extra emissions allotment from a low-carbon company.
b. Try to hide its extra emissions from investigators.
c. Shut down to avoid paying the government fines.
d. Lobby the government to change its cap-and-trade system.
25. When China enacts a low-carbon city, that city will ______.
a. have to develop and abide by CO2 emissions baselines and targets
b. have to be run almost entirely with green energy
c. be capped at a certain level of economic output
d. not be allowed to have fossil-fuel using industries
26. How does the United States differ from the European Union in terms of efforts to
reduce GHG emissions?
a. The United States has made a bigger reduction in its GHG emissions.
b. Internal politics has had a bigger effect on consistency of U.S. efforts to reduce GHG.
Collins, Business Ethics 3e
SAGE Publishing, 2021
c. The United States has chosen to place a carbon tax on companies, while the EU has
not.
d. The United States has managed to stay consistent with its 1990 GHG levels.
27. What actions did former President Barack Obama take to incentivize corporations to
address climate change?
a. reduced fuel efficiency standards and increased subsidies for compliant corporations
b. increased restrictive rules and established higher energy efficiency
c. adversarial regulation
d. governmental regulation
28. With respect to regulatory measures for GHG emissions, Republican leaders have
most worried that they ______.
a. won’t have any impact on global warming
b. won’t go far enough
c. will have a negative impact on business
d. will undermine a cap-and-trade system
29. Which of the following was TRUE of President Trump’s position or actions toward
climate change issues?
a. Trump supported a carbon tax.
b. Trump sought to strengthen Obama’s regulatory measures.
c. Trump publicly questioned the science behind climate change claims.
d. Trump sought to increase fuel efficiency standards.
Collins, Business Ethics 3e
SAGE Publishing, 2021
30. Where are large national and multinational corporations concentrating their efforts to
minimize climate change?
a. science-based targets associated with the Paris Agreement
b. the environmental, social and governance markets
c. influencing environmental legislation through engaging lobbying firms
d. developing green technology and increasing the number of green jobs
31. Which is true regarding solar energy use in the EU, China, and the United States?
a. Only a very small percentage consume solar energy.
b. Most energy consumed is solar energy.
c. Solar energy is promising because it is very affordable.
d. Solar energy costs continue to increase with each technological generation.
32. In response to former President Trump’s Paris Agreement withdrawal, conservative
Republicans formed which organization?
a. Climate Mayors (CM)
b. Climate Leadership Council (CLC)
c. U.S. Climate Alliance (USCA)
d. Emissions Trading System (ETS)
Collins, Business Ethics 3e
SAGE Publishing, 2021
33. Amazon Employees for Climate Justice led an employee walkout in 2019 with three
specific demands of the company. Which of the following demands were made by the
Amazon employees?
a. No more donations to politicians or groups which deny climate change.
b. End all contracts with vendors who are not committed to zero carbon emissions by
2030.
c. Commit to an all-electric fleet by 2029.
d. Require all senior executives to sign a commitment to abide by the goals of the Paris
Agreement.
34. Which of the following can an organization reasonably expect to happen if it
implements an EMS plan?
a. better competitive performance in the marketplace
b. elimination of environmental risk
c. a supplier chain that adheres to strict environmental standards
d. a negative carbon footprint
35. The Dow Jones Sustainability Index (DJSI) added which of the following index
options in 2019?
a. social reporting
b. labor practice indicators
c. operational eco-efficiency
d. fossil fuel free
36. What is used to assess companies involved in the SRI market?
a. Theory X
Collins, Business Ethics 3e
SAGE Publishing, 2021
b. balanced scorecard
c. SMART goals
d. triple bottom line
37. According to Nielsen, which of the following is true of companies that make
sustainability a priority?
a. The number of sustainable products is shrinking, but the market share of those
products is growing.
b. They show the same annual economic growth as companies that do not care about
sustainability.
c. Most consumers are willing to pay more for their products because they are
sustainable.
d. Baby boomers are more willing to support sustainable companies than are younger
generations.
38. After 16-year-old climate change activist Greta Thunberg said “How dare you” while
speaking to the United Nations General Assembly about not taking appropriate actions
to address climate change, what occurred?
a. Amazon Employees for Climate Justice staged a walk out.
b. The United States rejoined the Paris Agreement.
c. Project Drawdown was launched.
d. Energy Star created certification of energy efficient products.
39. Miriam wants to implement a sustainability program for a mid-sized paper goods
production company, but knows much of upper management is skeptical about global
warming and environmental issues. What case should Miriam next make to convince
upper management to adopt the plan?
a. Emphasize how sustainability improves business and shareholder approval.
Collins, Business Ethics 3e
SAGE Publishing, 2021
b. Emphasize that the company can better avoid regulatory problems if they adopt the
plan.
c. Offer personal financial incentives, particularly bonus packages, for those who come
on board.
d. Don’t waste time trying to convince management, but go to lower-level employees to
make the case.
40. If Miriam implements a sustainability program and its associated changes at the
company, what will likely happen?
a. higher savings but slower growth over the long term
b. initial savings that increase over time
c. a quick improvement in stock value
d. high up-front costs but long-term savings
41. Manuel is a farsighted, cost-conscious manager. What is the most effective
approach to persuade Manuel’s employees to embrace environmental management?
a. Pointing out the financial risks and financial costs associated with environmental
disasters.
b. Sharing success stories of other managers who adopt eco-friendly principles.
c. Emphasizing the long-term savings realized by adopting energy-efficient technologies
and reducing waste.
d. Reinforcing the importance of complying with government regulations.
42. What lesson is the text trying to impart when relating the 2015 experience of the
company British Petroleum?
a. The up-front investments in sustainability can be costly.
b. Long-term investment in sustainability brings higher profits.
c. Shareholders tend to abandon companies that aren’t sustainable.
Collins, Business Ethics 3e
SAGE Publishing, 2021
d. Failure to invest in environmental responsibility can be very damaging to a company.
43. Which of the following convinced Coca-Cola to become a sustainability leader?
a. a desire to be more attractive to shareholders
b. an environmental and economic threat
c. the increasing burden of governmental regulation
d. an internal company democratic process
44. Which of the following best represents the relationship between the media and
sustainable companies?
a. Magazines often report on environmental programs, but television and radio typically
ignore them.
b. Media typically reports only on profitability and novelty of product.
c. Companies can get a lot of free publicity from media if committed to sustainability.
d. The media will typically not punish unsustainable companies if they are very
profitable.
45. What is the number one solution identified in Project Drawdown?
a. wind turbines
b. refrigerant management
c. plant-rich diet
d. solar farms
Collins, Business Ethics 3e
SAGE Publishing, 2021
46. St. Louis Foods, a wholesale food supplier, recently announced that their
greenhouse gas emission reduction efforts are expanding to Scope 3. Which of the
following indicates that St. Louis Foods was successful?
a. a reduction in absolute-value chain emissions
b. a decrease in electric utility bills
c. a decrease in emissions from their processing plant
d. a decrease in the number of non-organic products sold
47. Which of the following is TRUE of Walmart?
a. It is the largest private user of electricity.
b. It is the largest private polluter in the world.
c. Its continued disinterest in sustainability has damaged consumer relations.
d. It has focused on short-term sustainability goals, not long-term goals.
48. While interviewing for an operations manager position at a trucking company, you
learn that the company has set a goal to convert the entire fleet of trucks from diesel to
electric by the year 2025. Which greenhouse gas emission scope does this goal reflect?
a. Scope 1
b. Scope 2
c. Scope 3
d. Scope 4
49. How does Energy Star certification differ from LEED certification?
Collins, Business Ethics 3e
SAGE Publishing, 2021
a. It is administered by the government.
b. It is more difficult to attain.
c. It makes no promises to be environmentally friendly.
d. It is not available to private commerce.
50. Which of the following is true about Energy Star certification?
a. Energy star certification signals to consumers that the manufacturer is committed to
pollution control.
b. More than 70% of an Energy Star certified product components must be made of
renewable sources.
c. Energy Star certification is a sustainability program initiated as a result of the Paris
Agreement.
d. Energy Star certification requires that most products use 30% less energy than
required by federal standards.
51. How does the text define “renewable energy”?
a. Natural processes continuously replenished by nature at a higher rate than they are
consumed.
b. Energy sources repeatedly producible by humans at no net cost to the environment.
c. Natural processes including wind, solar, and hydroelectric that can be used as energy
sources.
d. Energy sources excluding fossil fuels and fuels that generate net waste.
52. How much of the global electricity was generated from renewable sources in 2018?
a. a very small amount