45) A common myth is that managers are less ethical today than in the past.
46) The reality is that managers are more unethical than in the past.
47) One of the reasons the public believes business leaders are more unethical is the attention it
receives in the press.
48) Global supply chains are similar to biological systems in being resilient and resistant to
change but surprisingly vulnerable at the same time.
49) The strength of global supply chains is clearly illustrated by their response to such events as
unrest in the Middle East or an earthquake in Japan.
50) The boundaries of the global village are drawn by the major economic powers–the United
States, China, and Japan.
51) An organization can be considered “global” simply if it carries out trade with other countries.
52) An organization that hires employees from other countries but does not obtain financing
from a foreign source cannot be considered global.
53) Multinational corporations maintain significant operations in two or more countries
simultaneously.
54) Sony is an example of a multidomestic company.
55) John Deere is an example of a multidomestic company.
56) Transnational corporations run their businesses from their home country.
57) When organizations go global, they often start by simply exporting products to one or more
foreign countries.
58) After the global sourcing stage, companies that are going global often turn to exporting and
importing goods across international borders.
59) Licensing and franchising typically follow the export-import phase of globalization.
60) In a strategic alliance, companies join together to form a separate entity to produce a product.
61) Managers with a parochial view of the world tend to see things from the point of view of a
foreign culture.
62) French organizations have a very different view of status than American organizations.
63) According to Hofstede, countries such as Singapore and Japan are more collectivist than the
United States.
64) The United States is an example of a country with small power distance.
65) A society with high uncertainty avoidance relies on rules and trusts its social institutions to
deal with an uncertain future.
66) Cultures with a high assertiveness rating tend to have people who are timid and shy.
67) Future orientation is a measure of how successful a society is at delaying gratification.
68) Hofstede based his ratings on the traits of people of different nationalities with whom he was
personally acquainted.
69) Hofstede’s findings have received little support in the academic world and were not
confirmed by later studies.
70) In a short essay, explain the differences between a multidomestic corporation, a global
corporation, and a transnational corporation.
71) In a short essay, define parochialism and explain why it can be a problem for U.S. managers.
72) In a short essay, list and explain the first three of Hofstede’s dimensions of national culture.
73) In a short essay, list and explain the last two of Hofstede’s dimensions of national culture.
74) In a short essay, discuss the value of Hofstede’s values study to managers.
75) In a short essay, describe the steps a company takes in going global.
76) Which of the following best summarizes Blake Mycoskie’s (the founder of TOMS shoes)
business philosophy?
A) A business should be ethical but not socially responsible.
B) A business should be socially responsible but not ethical.
C) A business should be both ethical and socially responsible.
D) A business should not worry about being either ethical or socially responsible.
77) The socioeconomic view of social responsibility is that a for-profit organization’s
responsibility is ________.
A) to maximize stockholder wealth
B) to maximize both profits and the general welfare
C) to do what only the law requires
D) to maximize opportunities for citizens in developing countries
78) The classical view of social responsibility is that a for-profit organization’s responsibility is
________.
A) to help as many people as possible
B) to maximize both profits and the general welfare
C) to maximize profits only
D) to maximize opportunity for all
79) A company that meets its social obligation ________.
A) fulfills its economic responsibilities only
B) fulfills its legal and economic responsibilities only
C) goes beyond its legal and economic responsibilities and responds to some pressing social need
D) does not need to obey local laws
80) Which of the following is the best example of a company being socially responsive?
A) meeting hazardous materials standards
B) giving Christmas bonuses to worthy employees
C) displaying “think green” posters
D) building a community day-care center
81) The classical view of social responsibility holds that spending time, money, labor, or energy
to improve society’s welfare would ________.
A) deprive stockholders of resources that could be used to generate profits
B) not have any positive or negative impact on stockholders
C) help maximize profits for stockholders
D) show stockholders that the company knows best
82) The socioeconomic view of social responsibility states that a business ________.
A) is an economic agent only
B) has no responsibility
C) is a moral agent
D) is a harmful agent
83) The socioeconomic view is that management’s social responsibility goes beyond making
profits to include ________.
A) challenging norms within society and inciting people to rise up against injustice
B) protecting and improving society’s welfare
C) sacrificing its own welfare to advance the cause of justice
D) prosecuting those who break the law
84) When a company does the minimum that the law requires, it is meeting its ________.
A) social responsiveness goal
B) economic responsibility
C) ethical responsibility
D) social obligation
85) A factory that has adhered to all pollution control standards has ________.
A) been socially responsive
B) been economically responsible
C) been ethical
D) met its social obligation
86) Social responsiveness refers to the capacity of a firm to ________.
A) address some pressing public need
B) follow all government regulations
C) differentiate between right and wrong
D) be a role model for other organizations
87) When a firm advertises that it only uses recycled paper products, it is ________.
A) meeting its social obligation
B) being cynical
C) being socially responsive
D) paying attention to the bottom line
88) Proponents of the socioeconomic view of social responsibility believe that being socially
responsive is ________.
A) good for business
B) bad for business
C) neither good nor bad for business
D) bad for any business in a competitive market
89) ________ dictates that being socially responsible is the “right thing to do.”
A) A public image
B) An ethical obligation
C) A public expectation
D) A dilution of purpose
90) Supporters of social responsibility claim that being socially responsible ________.
A) increases short-term profits
B) decreases long-term profits
C) increases long-term profits
D) decreases short-term profits
91) Supporters of socially responsible businesses claim that by becoming socially responsible,
businesses can expect ________.
A) less government regulation
B) more government regulation
C) more strict enforcement of laws
D) more government interference
92) Since businesses have more power and resources than ordinary individuals, supporters of
social responsibility claim that businesses have ________.
A) a good reason to ignore the needs of ordinary individuals
B) no reason to act in a socially responsible way
C) more reason to act in a socially responsible way
D) less reason to act in a socially responsible way
93) Most studies have shown that companies that engage in social involvement ________.
A) receive a small positive benefit
B) receive an enormous positive benefit
C) experience a small negative effect
D) experience an enormous negative effect
94) People who doubt that there is a relationship between company performance and social
involvement think that this could account for any positive performance effect seen in companies
that practice social involvement.
A) The only companies that practice social involvement are highly unsuccessful companies that
try to use social involvement to improve their image in the marketplace.
B) The only companies that practice social involvement are highly ambitious companies that use
social involvement as a way to network and gain access to wealthy clients.
C) The only companies that practice social involvement are highly successful companies that can
afford to waste time and energy on social involvement as a “luxury.”
D) The only companies that practice social involvement are highly ambitious companies that use
social involvement as a learning tool for their training programs.
95) Suppose that a study shows that companies that were not socially involved tended to be less
profitable than socially involved companies. Which of the following can be concluded?
A) Social involvement definitely causes a company’s profits to decrease.
B) Social involvement definitely causes a company’s profits to increase.
C) Social involvement may cause a company’s profits to increase.
D) Social involvement may cause a company’s profits to decrease.
96) The argument against social responsibility that states that pursuing goals other than making
profits diverts a company away from its primary goal of making profits is known as ________.
A) possession of resources
B) too much power
C) lack of skills
D) dilution of purpose
97) One prominent argument against being socially responsible makes the claim that business
managers are ________ to address social concerns.
A) too impractical
B) not competent
C) too wealthy
D) too out of touch
98) Those arguing against being socially responsible might make the claim that costs for social
goals are ultimately ________.
A) paid for by the people being helped
B) paid for by companies in the form of tax breaks
C) paid for by consumers in the form of higher prices
D) are never paid by anyone
99) Which of the following is NOT an argument against the idea that companies should be
socially responsible?
A) costs
B) too much power
C) violation of profit maximization
D) public expectations
100) “Lack of accountability” argues against a firm being socially responsible by saying that
once actions are taken there is no one ________.
A) to take responsibility if things go wrong
B) to take credit if things work out well
C) to speak to the media to put a spin on actions taken
D) to follow up afterward
101) Which of the following best defines sustainability for a company?
A) running the company with a strategy that is both profitable and good for the environment
B) running the company with a strategy that is profitable whether or not it is good for the
environment
C) running the company with a strategy that is good for the environment even if it is not
profitable
D) running the company with a strategy that does not change the environment in any way
102) What does Wal-Mart’s business policy say about the company’s belief in sustainability?
A) Wal-Mart must believe that global climate change is a hoax.
B) Wal-Mart must believe that environmental issues are important.
C) Wal-Mart must believe that global climate change is a left-wing conspiracy.
D) Wal-Mart must believe that global climate change is a right-wing conspiracy.