The concept of corporate social responsibility is rooted in the meaning “to pledge
back,” creating a commitment to give back to society and the organization’s
stakeholders.
Government can be considered both a market and nonmarket stakeholder.
An ethical egoist acts for the benefit of others and sacrifices self-interest.
Globalization is accepted worldwide and creates little controversy.
A license to operate refers to a formal license every firm must obtain from local
municipalities in order to conduct business there.
Since the 1960s, growth in the numbers of institutional investors in the United States
has been phenomenal.
Sustainable development will require technology cooperation through long-term
partnerships between companies in developed and developing countries to transfer
environmental technologies.
A growing trend is for lead firms to work collaboratively with their suppliers to build
capabilities and create shared value.
Life-cycle analysis involves collecting information on the lifelong environmental
impact of a product, all the way from extraction of raw material, to manufacturing, to
its distribution, use and ultimate disposal.
Most nations in the world share similar political, social and economic beliefs.
Shareholders must rely exclusively on the board of directors to protect their interests.
Rewards and incentives are effective ways to make business people consider the
environmental impacts of their actions.
Global lead firms that depend on farmed, extracted, or mined resources run a relatively
high risk for human rights abuses by their suppliers.
The World Bank makes currency exchange easier for member countries so that they can
participate in global trade.
According to Bill Joy, Sun Microsystems’ chief scientist, by 2030, we are likely to build
machines a million times as powerful as the personal computer of today.
The term pay gap refers to the inequitable concentration of a group, such as minorities
or women, in a particular job category.
Stakeholders involved with one part of a company often may have little or no
involvement with another part of the company.
Workforce diversity represents both a challenge and an opportunity for businesses.
The world’s income is distributed equally among nations.
Marketing ethics include having concern for consumer health and safety issues.
Managers in the same company are likely to be at the same stages of moral reasoning at
any given time.
Lead firms sometimes create contradictory demands on suppliers, for example by
insisting on low costs as well as compliance with expensive environmental standards.
TRUE
Consumers make less rational choices when they have accurate information about a
product.
Creating and distributing viruses on other computers is called hacking.
The Occupational Safety and Health Act gives workers the right to a job “free from
recognized hazards that are causing or likely to cause death or serious physical harm.”
Many community problems are people problems, involving hopes, attitudes, sentiments,
and expectations for better human conditions.
The level of income inequality in the United States has fallen since the 1980s.
The Latin phrase, caveat emptor, meaning “let the seller beware” has put sellers on alert
to look after their own interests.
Being ethical includes developing a sense of trust, which promotes positive alliances
among business partners.
According to the latest government data, in about 30 percent of all married couples with
children, both parents worked at least part-time.
The collection of large amounts of consumer data by businesses creates ethical issues of
privacy and security.
Under the Family Medical Leave Act, companies that employ 50 or more people must
grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family
needs, including the birth or adoption of a baby.
The leading contributor to global warming is the burning of fossil fuels, which releases
carbon dioxide into the atmosphere.
The United Nations oversees all international agreements concerning regulations
between nations.
Ethical ideas are present in all societies, all organizations, and all individual persons.
Public policy is a plan of action undertaken by business to influence the government.
The core components upon which a company’s ethical performance depends include:
A. The values and virtues of the managers.
B. The personal character of the managers and employees.
C. The traditions, attitudes, and business practices built into a company’s culture.
D. All of the above.
Hackers who intend to profit from their actions are motived by:
A. The need for media attention.
B. A desire to retaliate against the government.
C. The thrill of it.
D. Financial incentives.
A recent study found that, compared to the 1980s, managers today place what
importance on moral values, such as honesty and forgiveness?
A. Less important.
B. About the same importance.
C. Slightly more important.
D. Triple the importance.
Firms that believe they can make decisions unilaterally, without taking into
consideration their impact on others are:
A. Interactive companies.
B. Proactive companies.
C. Reactive companies.
D. Inactive companies.
The activism of institutional investors in other countries has been spearheaded by:
A. U.S.-based pension and mutual funds that in recent years acquired large stakes in
foreign countries.
B. Foreign institutions that were granted new rights by their governments.
C. Managers who became less active in proxy battles on a global level.
D. The rising number of individual investors in public service companies.
Only after which of the following conditions is (are) met, should the whistle-blower go
public?
A. The unreported act would do serious and considerable harm to the public.
B. The employee has tried and failed to resolve the issue internally.
C. Reporting the problem publicly probably will not resolve the issue.
D. Both A and B, but not C.
Under U.S. laws:
A. Only private workers have the right to hold an election to choose what union they
want to represent them, if any.
B. Only public workers have the right to hold an election to choose what union they
want to represent them, if any.
C. Most private and public workers have the right to hold an election to choose what
union they want to represent them, if any.
D. Only the employer has the right to hold an election to choose what unions they want
to represent the workers within the organization, if any.
Which of the following illustrates the idea of sustainable development through
technology cooperation?
A. Worldwide conferences to encourage developing countries to invest in technological
joint ventures with other developing countries.
B. The development of long-term partnerships between companies in developed and
developing countries to transfer environmental technologies.
C. Advanced countries developing and selling at a profit environment technologies to
developing countries.
D. All countries developing their own environmental technology in order to solve their
own problems.
Being able to continue their activities indefinitely, without altering the carrying capacity
of the earth’s ecosystem, is a characteristic of:
A. Ecologically sustainable organizations.
B. Concerned citizens.
C. Codes of environmental conduct.
D. Environmental regulations.
Which of the following arguments opposes the idea of high executive pay?
A. High salaries provide an incentive for innovation and risk taking.
B. Not many individuals are capable of running today’s large, complex organizations.
C. Top athletes and entertainers make a lot of money, so top executives should, too.
D. High salaries divert resources that could be used to invest in the business.
This Act makes it a crime to circumvent antipiracy measures built into most commercial
software agreements between the manufactures and their users:
A. Software Business Piracy Act.
B. Digital Millennium Copyright Act.
C. Intellectual Property Millennium Act.
D. Copyright Act of 1998.
Customers can exercise economic stakeholder power by:
A. Voting on a proposed merger for the company and a competitor.
B. Boycotting products if they believe the goods are too expensive.
C. Attending the company’s annual meeting.
D. Applying for a job with the company.
At the core of rights reasoning is the belief that:
A. The company’s right to a profit must be protected.
B. Respecting others is the essence of human rights.
C. The right to join a union is no longer universally accepted.
D. Economic and political powers determine who is right.
Sustainable development:
A. Meets the needs of the present while compromising the ability of future generations
to meet their own needs.
B. Gives precedence to environmental over economic considerations.
C. Balances economic and environmental considerations.
D. Gives precedence to present needs over future needs.
Which of these statements is true regarding women in the United States workforce?
A. The percentage of working women declined slightly in 2013.
B. A lack of family-friendly business policies has made it difficult for working mothers.
C. The participation rates of women and men in the workforce have diverged.
D. Both A and B, but not C.
Cooperation between business and government often occurs when:
A. They encounter a common problem or enemy.
B. Business can afford it.
C. Business operates at arm’s length from the government.
D. Government has the support of the people.
According to a Harvard Business Review study, which of the following is not an area in
which corporate contributions are most likely to enhance a company’s competitiveness?
A. Context for strategy and rivalry.
B. Demand conditions.
C. Stakeholder management.
D. Factor conditions.
Which of the following gives the most in-kind contributions?
A. Pharmaceutical companies.
B. High-technology companies.
C. Grocery retailers.
D. Publishing houses.
Which type of business community consists of people who work near the company?
A. Site community.
B. Virtual community.
C. Community of interest.
D. Employee community.
In the U.S., the right to free speech:
A. Is an absolute privilege to all citizens.
B. Is a constant threat to every business.
C. Must be weighed against the consequences for the community.
D. Depends on state law.
Business depends on the community for:
A. Education.
B. Public services.
C. Transportation systems.
D. All of the above.
If someone is entitled to be treated in a certain way, this refers to a(n):
A. Relationship.
B. Obligation.
C. Duty.
D. Right.
Which of the following represents a type of corporate crisis?
A. Acts of God.
B. Management indecision.
C. Mechanical problems.
D. All of the above.
A thin layer of gas that protects the earth from excessive ultraviolet radiation from the
sun is:
A. Ozone.
B. Carbon dioxide.
C. Methane.
D. Oxygen.
The media control technique called bridging is exemplified by which of these phrases?
A. “We are undertaking a program to correct the situation.””
B. “Your listeners may not know that””.
C. “While that is true, what is important to know is””.
D. “This is important news because””.
What are the benefits of sequencing the human genome?
A. Provides early diagnosis of diseases.
B. Allows the development of generic drug-therapies.
C. Spurs new ways to prevent illnesses.
D. A and C only, not B.
The practice of adapting the job to the worker is called:
A. Social contracts.
B. Living wages.
C. Electronic monitoring.
D. Ergonomics.
Microfinance refers to:
A. Banks lending money to a very small number of businesses.
B. Banks lending money to low-income businesses.
C. Banks lending very small amounts of money to wealthy businesses.
D. Banks charging low fees for all business loans.
In some economically developed countries and most developing countries around the
world genetically modified food was:
A. Looked upon with caution but generally accepted.
B. Welcomed as a way to increase crop yields.
C. Rejected by most governments.
D. Viewed with extreme caution.
Increased cyber activity by which country prompted NATO officials to brand them as
“patriotic hackers”?
A. Russia.
B. Iran.
C. Iraq.
D. Mexico.
Factor conditions are strategic contributions focusing on:
A. The supply of trained workers, physical infrastructure, and natural resources.
B. Policies that create a more productive environment for competition.
C. The demand for a product or service.
D. All of the above.
Which of the following statements is not true about the organization Consumer
Reports?
A. It is involved in activities promoting the interests of consumers.
B. It conducts extensive tests on selected consumer products and services.
C. It is supported by the federal government.
D. It publishes the results of tests online, with ratings on a brand-name basis.
A just or fair ethical decision occurs when:
A. The rights of all affected are considered.
B. The greatest good for those with power is achieved.
C. Benefits and burdens are distributed equally.
D. All of the above.
Public policy tools involve a combination of:
A. Incentives and political favors.
B. Penalties and prison terms.
C. Incentives and penalties.
D. Political favors and prison terms.
The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that
different people and groups:
A. May honestly and genuinely use different sources of information.
B. May rank various rights in different ways.
C. May not share the same meaning of justice.
D. All of the above.
What are the four methods of ethical reasoning?
Define the general public. How do firms and the public affect one another?
Answer:
Answers may vary.
In 2015 only 5 percent of chief executive officers of the S&P 500 companies were
women. What factor best explains this fact: women’s education and job experience,
discrimination against women by companies, preferences of women employees,
different family roles and responsibilities between women and men, or something else?
Why do you think so?
Answer:
Answers may vary.
Discuss some of the voluntary initiatives undertaken by businesses around the world in
order to incorporate sustainable development into their everyday business practices.
Answer:Answers may vary.
Government regulations come in different forms. Discuss the major types of
government regulations of business.
Answer:Answers may vary.
Discuss the importance of ethics training at different levels of an organization. Is it
more important for mangers to receive ethical training? Why or why not?
Answer:
Answers may vary.
Discuss the three forms of gifts typically made by corporations and their foundations.
Which form of gift do you think is most valuable, and why?
Answer:
Answers may vary.
Discuss the pros and cons of the new social contract from the viewpoint of an employer
and employee. What duty does an employer have to provide job security to its workers?
Answer:
Answers may vary.
Explain the concept of the “right to be forgotten.” What are its implications to
governments, businesses and individuals?
Answer:
Answers may vary.
Define technology and describe its three primary features.
Answer:Answers may vary.
Compare and contrast the world’s political and economic systems and their effects on
globalization.
Answer:Answers may vary.
Government regulations ban both sexual and racial harassment. Discuss both kinds of
harassment and why they are a concern to employers. What can companies do to
combat sexual and racial harassment?
Answer:
Answers may vary.
Describe the three types of supplier audits: internal, third-party and crowd-sourced.
Answer:Answers may vary.
Consumer advocates argue that consumers are entitled to five core rights. What are
they? Explain each.
Answer:Answers may vary.
Identify and discuss the five steps to the Issues Management Process.
Answer:Answers may vary.
Define a corporate crisis. Outline an effective crisis management plan for a public
relations manager.
Answer:Answers may vary.
Describe the roles of the World Bank, International Monetary Fund, and World Trade
Organization as international financial and trade institutions.
Answer:Answers may vary.
Under what conditions might a lead firm choose to develop a supplier rather than
replace them?
Answer:
Answers may vary.
Who do you believe should be primarily responsible for the advancement of minorities
in the workplace: the individual, the government, or businesses? Why?
Answer:
Answers may vary.
Provide an example where employee whistle-blowing is justified and an example where
it is not. Provide support for each example.
Answer:Answers may vary.