How does the level of job-related stress and fatigue in the United States generally
compare to that in Japan?
a. The United States experiences a much higher level of stress-related symptoms from
work than does Japan.
b. Due to the relatively slack work effort in both the United States and Japan,
work-related stress and fatigue are uncommon.
c. Both countries experience nearly the same high levels of work-related stress and
fatigue problems.
d. The overall work-related stress and fatigue levels in the United States are moderate
compared to the high levels in Japan.
e. Although they are quite comparable, the United States workers experience slightly
more stress-related problems than Japanese workers.
What is an employee who reports individual or corporate wrongdoing to either internal
or external sources known as?
a. Tattletale
b. Ethics officer
c. Whistle-blower
d. Retaliator
e. Hostile worker
Corporate governance requires a system of ____ similar to the distribution of power
between the executive, legislative, and judiciary branches of the U.S. government.
a. decision-making authorities
b. division of labor
c. checks and balances
d. priorities and divisions
e. goals and values
What argument lies at the heart of environmental battles over endangered species
habitats throughout the world?
a. Most people realize that the loss of any one species will not threaten the entire
ecosystem or create a decline in biodiversity.
b. Global research indicates that declining numbers of plant species have little impact
on the overall ecosystem.
c. People argue that human beings are more important than any one species of plant or
animal.
d. There is a significant burden incurred by complying with endangered species laws,
and the laws do little to protect the species anyway.
e. People argue that there are few benefits received from biodiversity, and no regulation
is needed to protect endangered species.
Which of the following most closely exemplifies “groupthink”?
a. The CEO of a company is a strong supporter of family values, so the department
managers allow employees time off one day a week to attend a special event for their
children.
b. Two employees get together and come up with a scheme to cheat their company out
of a substantial amount of money by charging clients more for products than what is
recorded.
c. At a company meeting, a possible safety issue with one of the company’s products is
discussed, and the employees decide not to recall the item since the possibility of the
problem is probably slim.
d. An employee believes that her company’s newly proposed advertising campaign is
insulting to certain groups of people but decides not to discuss it with anyone.
e. An employee follows his own ethical principles in making business decisions because
he strongly believes in the source of those principles—his family and his religion.
Social responsibility reporting is valuable for a company as a means to do all of the
following except
a. communicate its values.
b. conceal its weaknesses.
c. highlight successes.
d. communicate its plans.
e. gain feedback for the future.
Who establishes the ethical tone for the entire firm?
a. Mid-level managers
b. Board of directors
c. Ethics officer
d. Employees
e. Chief Executive Officer
What is our economy primarily based on today?
a. Agriculture
b. Manufacturing
c. Hunting-gathering
d. Services
e. Information technology and services
Responsible competitiveness involves the positive effects of socially responsible
business practices on a nation’s
a. environmental impact.
b. technological innovation.
c. philanthropic activity.
d. economic success.
e. employee engagement.
Which of the following is not one of the steps in the process for planning and
implementing strategic philanthropy?
a. Engage
b. Collect
c. Research
d. Organize and design
e. Spend
In the United States, the major role that society delegates to government is to
a. keep prices of products low so that all consumers can purchase convenience and
luxury goods.
b. create more jobs.
c. encourage larger companies to conduct business in many other countries.
d. provide laws based on the Constitution and Bill of Rights and enforce those laws
through the judicial system.
e. encourage competition by providing economic support to smaller companies in order
to be competitive with powerful companies.
Which moral classification considers a decision right or acceptable if it accomplishes a
desired result such as pleasure, knowledge, career growth, or utility?
a. Ethical formalism
b. Consequentialism
c. Justice
d. Results theory
e. Egoism
Which of the following best describes the Better Business Bureau (BBB)?
a. The BBB is a self-regulatory association that helps resolve problems between
businesses and consumers.
b. The BBB is a federal government agency that helps resolve problems between
businesses and consumers.
c. The BBB is a state agency that helps resolve problems between businesses and
consumers.
d. The BBB is a published list of companies to avoid doing business with due to their
poor business practices.
e. The BBB is a network of agencies that assesses financial penalties against unethical
businesses.
The ____ model explicitly acknowledges the dialog that exists between a firm’s internal
and external environments.
a. output
b. input
c. societal
d. shareholder
e. stakeholder interaction
Concerns involving consumer privacy, website development, and online marketing
relate to which classification of ethical issue?
a. Conflict of interest
b. Honesty
c. Communications
d. Discrimination
e. Technology
What is the primary concern of a board of directors?
a. To make decisions about how to run the day-to-day affairs of the business
b. To monitor the decisions made by managers on behalf of the company
c. To determine whether or not to pay dividends to stockholders
d. To watch out for the interests of the employees
e. To develop short-term goals for the company
Groups that are fundamental to a company’s operations and survival are collectively
called
a. critical stakeholders.
b. primary stakeholders.
c. top stakeholders.
d. shareholders.
e. VIPs.
Overall, what do conclusions drawn from the Responsible Competitiveness Index (RCI)
indicate?
a. Social responsibility reduces the economic competitiveness of countries.
b. Social responsibility reinforces the economic competitiveness of countries.
c. Social responsibility reduces the technological competitiveness of countries.
d. Social responsibility improves the technological competitiveness of countries.
e. Social responsibility reduces the philanthropic activity of countries.
The Reactive-Defensive-Accommodative-Proactive Scale is best described by which of
the following?
a. A scale that determines the motivations businesses have for implementing social
responsibility programs
b. A scale that is used to rate a company’s overall efforts at developing and maintaining
good relationships with its employees and suppliers
c. Another name for a social responsibility audit
d. A method for assessing a company’s strategy and performance with one particular
stakeholder
e. A technique for firms to use in developing public relations strategies
Which of the following statements best describes the current view on genetically
modified foods?
a. GM foods have gained wide acceptance throughout the world as people realize the
improvements that can be made from genetic modifications.
b. Many important companies in the United States and abroad are requiring the
suppliers of their food to use genetic modification in order to decrease prices.
c. Although a small group of consumers are boycotting GM foods, most countries have
widely adopted and encouraged their development.
d. Several countries have opposed GM foods, and some large companies have stopped
using them in their products.
e. Nearly all countries are banning the use of GM products.
A behavioral simulation, or role play exercise, is a relatively new ethics training device
that
a. requires the use of technology, including video and the computer.
b. has been found to be less effective than traditional lecture training methods.
c. can only be used in small organizations.
d. focuses on legal issues in the workplace and the skills that employees need to resolve
legal concerns.
e. recreates the complexities of organizational relationships and aids the development of
analytical skills for resolving ethical issues.
Which of the following statements best describes international initiatives on privacy?
a. Although many other countries have regulations and restrictions on privacy and the
Internet, none are as stringent as those in the United States.
b. Russia is at the forefront of privacy regulation and has taken drastic measures to
protect the privacy of its citizens within Russia and around the world.
c. Japan has demonstrated relatively little concern about protecting the privacy of its
citizens and has few regulations about online privacy.
d. In the international realm of privacy regulation, the United States is not the strictest
but does attempt to protect its citizens’ privacy.
e. In general, European privacy regulations are less stringent than those of the United
States and Japan.
What must high-commitment organizations strive to do with respect to environmental
issues and the organization’s stakeholders?
a. Constantly keep all of their stakeholders satisfied
b. Prioritize claims by refusing to evaluate ones that are potentially insignificant
c. Avoid much negotiation in order to maintain a proper balance of power
d. Evaluate the latest information and maintain consistent communication with all
stakeholders
e. Remember that all stakeholders are equal and treat them as such regarding
environmental issues
Increasing amounts of carbon dioxide and methane in the earth’s atmosphere can result
in which negative environmental impact?
a. Acid rain
b. Air pollution
c. Greenhouse melting
d. Kyoto gases
e. Global warming
Specific development, pricing, promotion, and distribution of products that do less
harm to the environment are known as
a. green marketing.
b. earth friendly.
c. eco-labeling.
d. environmental designing.
e. nonpolluting promoting.
What is the real difficulty in conducting a risk analysis?
a. Identifying the environmental issues that might be related to any one type of
company or product
b. Identifying which stakeholder groups have concerns about various environmental
issues
c. Measuring the costs and benefits of environmental decisions, especially in the eyes of
interested stakeholders
d. Conducting government or industry research as part of the response to environmental
concerns
e. Determining the specific environmental factors that could impact a business decision
Shareholder resolutions
a. are regulated by the Federal Trade Commission.
b. may be brought to a proxy vote by any stakeholder.
c. are the least effective type of shareholder activism.
d. can only be developed by large, institutional investors.
e. may prompt a company to change its practices.
An “outside director” on a company’s board of directors
a. worked for the company in the past, but is now retired or with another firm.
b. is unlikely to bring a diverse or unique perspective to board discussions and
decisions.
c. can only serve on one board at a time.
d. cannot chair the board’s audit or compensation committee.
e. has valuable expertise, but limited vested interest in the firm before assuming the
role.
Consumers can best be described as
a. those individuals who purchase many different products throughout their lives.
b. customers of any given organization.
c. every firm’s most important stakeholder.
d. those individuals who purchase, use, and dispose of products for personal and
household use.
e. those groups who purchase products from manufacturers and then improve the
products and sell them to others.
Which of the following categories of employment discrimination is not covered by Title
VII of the Civil Rights Act of 1964?
a. National origin
b. Gender
c. Religion
d. Disabilities
e. Race
Which of the following statements is true about credit-card fraud?
a. Because of high-tech security, credit-card fraud online occurs less frequently than
through mail-order catalogs.
b. Traditional storefront retailers have the worst problems with credit card fraud
because most allow you to swipe the credit card yourself.
c. Credit-card fraud is not a major issue for consumers who shop online.
d. Credit-card fraud is a major issue for businesses and consumers.
e. Credit-card fraud is 100 percent preventable through increased security measures, but
companies have not used resources to prevent this type of fraud.
Perhaps the strongest argument against high levels of compensation for CEOs is
a. the discrepancy between the highest paid executives and the median employee
wages.
b. that the job is relatively simple because most duties are delegated to other managers.
c. that the CEO has very little effect on the company’s performance.
d. the high turnover of executives throughout most large corporations.
e. that the CEO is usually just a figurehead, and the board of directors makes the
decisions.
Which of the following most closely describes the relationship between consumers and
businesses?
a. They are fundamentally connected by an economic relationship that often leads to
deeper attachment.
b. All consumers are closely affiliated with the ethical principles the companies they
buy from represent.
c. The relationships between consumers and businesses are purely economic in nature
through the exchange of value.
d. There really is no relationship between businesses and consumers.
e. “Let the buyer beware” describes the power that businesses now have over
consumers.
What concept governed employment up until the early 1900s?
a. Master-servant
b. Employment at will
c. Vesting
d. FLSA
e. Labor unions
Describe the transformation of the employee-employer contract over the past century.
Answer:
Answers will vary.
How could dramatic shifts in the acceleration and innovations derived from technology
spur imbalances in social existence?
Answer:
Answers will vary.
Describe two moral philosophies and how each would impact an employee’s decision in
a business situation.
Answer:
Answers will vary.
What are some issues to be considered before embarking on the downsizing process?
Answer:
Answers will vary.
Describe the differences between a compliance orientation and a values orientation to a
company’s control system.
Answer:
Answers will vary.
Why did Congress enact the Sarbanes-Oxley Act? What are the major provisions and
benefits of the Act?
Answer:
Answers will vary.
What caused the 2008-2009 financial crisis and what has the response to it meant for
corporate governance?
Answer:
Answers will vary.
Define fraud and describe three types of fraud relevant to business.
Answer:
Answers will vary.
What factors have contributed to increased concerns about the available quantities of
water?
Answer:
Answers will vary.
Describe the role that annual performance evaluations can play in creating a strong
ethical work climate.
Answer:
Answers will vary.
Explain how access to high-speed broadband connections can create high-tech “haves”
and “have-nots.”
Answer:
Answers will vary.
Describe the social responsibility continuum, including the two endpoints of the
continuum and the types of responsibilities and stakeholders considered at the
endpoints.
Answer:
Answers will vary.
List and describe five common issues related to corporate governance.
Answer:
Answers will vary.
What effect did the 2008-2009 financial crisis have on the Sarbanes-Oxley Act?
Answer:
Answers will vary.
Describe the differences between primary and secondary stakeholders.
Answer:
Answers will vary.
What advantages does self-regulation have over government regulations? Are there
ways in which government regulations are superior? Explain.
Answer:
Answers will vary.