Chapter 11 – Managing Environmental Issues
1. (p. 245) By setting a common standard for all firms, government can take the cost of pollution
control out of competition.
2. (p. 245) The first United States federal laws to protect the environment involved protecting
navigable waterways.
3. (p. 245) The EPA has identified carbon monoxide as the sole indicator of the overall level of
air pollution.
4. (p. 248) The Safe Drinking Water Act of 1974 requires permits for most point sources of
pollution, such as industrial emissions.
Chapter 11 – Managing Environmental Issues
5. (p. 249) Under the Resource Conservation and Recovery Act of 1976, hazardous waste must
be treated before disposal in landfills.
6. (p. 249) Efforts to prevent inequitable exposure to risk, such as from hazardous waste, are
sometimes referred to as the movement for environmental justice.
7. (p. 250) Superfund has been regarded as a public policy success in the cleanup of toxic waste
sites.
8. (p. 251) The Clean Air Act of 1990 incorporated the concept of tradable allowances as a key
part of its approach to pollution reduction.
9. (p. 254) Emissions of nearly all major pollutants have increased substantially since 1970.
Chapter 11 – Managing Environmental Issues
10. (p. 255) Environmental regulations, such as energy conservation, depress the economy.
11. (p. 257) Most big companies are still in the pollution prevention stage of corporate
environmental responsibility.
12. (p. 257) An ecologically sustainable organization is a business that addresses environmental
issues only when they pose an immediate threat.
13. (p. 259) Effective environmental management requires an integrated approach that involves
all parts of the business organization.
14. (p. 259) Cross-functional teams are usually a poor way to solve environmental problems.
15. (p. 259) Rewards and incentives are effective ways to make business people consider the
environmental impacts of their actions.
Chapter 11 – Managing Environmental Issues
16. (p. 245) The Environmental Protection Agency (EPA) was created:
Difficulty: Hard
17. (p. 245) In the United States, the federal government regulates which of the following major
areas of environmental protection?
Chapter 11 – Managing Environmental Issues
Difficulty: Easy
18. (p. 245) Which of the following statements is true of air pollution?
Difficulty: Hard
19. (p. 247) Which of the following statements is not true with respect to acid rain?
Chapter 11 – Managing Environmental Issues
20. (p. 248) Which of the following is not true about water pollution?
Difficulty: Medium
21. (p. 248) Which country has made the greatest progress in reducing its solid waste stream?
Difficulty: Medium
22. (p. 249) Which of the following is true about the Toxic Substances Control Act?
Difficulty: Medium
23. (p. 249) The Resource Conservation and Recovery Act of 1976 (amended in 1984) does not
require:
Chapter 11 – Managing Environmental Issues
24. (p. 249) Environmental justice is a movement to:
Difficulty: Hard
25. (p. 250) Which of the following statements is (are) true about the Comprehensive
Environmental Response Compensation and Liability Act (CERCLA)?
Difficulty: Medium
26. (p. 250-251) Which of the following statements is not true about environmental standards?
Difficulty: Medium
27. (p. 251-252) Which of the following is (are) true about emission fees?
Chapter 11 – Managing Environmental Issues
28. (p. 254) Which of the following is not true about the guidelines for sentencing environmental
Difficulty: Medium
29. (p. 254) Which of the following is not a possible cost of environmental regulation?
Difficulty: Hard
30. (p. 255) Environmental regulations stimulate some sectors of the economy by:
Chapter 11 – Managing Environmental Issues
31. (p. 256) Environmental regulations hurt the economy in the following way (s):
Difficulty: Hard
32. (p. 256) Which of the following is indicative of a firm in the pollution prevention stage of the
corporate environmental responsibility model?
Difficulty: Medium
33. (p. 256) Subaru Automotive of America’s effort to minimize waste is an example of:
Difficulty: Medium
34. (p. 256) Which of the following is the most advanced stage of corporate environmental
responsibility?
Chapter 11 – Managing Environmental Issues
35. (p. 256) Businesses in the clean technology stage:
Difficulty: Hard
36. (p. 257) Which of the following is not true about “green” management practices?
Difficulty: Hard
37. (p. 257) Companies in the United Kingdom and Japan are motivated to “go green” due to:
Difficulty: Medium
38. (p. 257) Being able to continue their activities indefinitely, without altering the carrying
capacity of the earth’s ecosystem, is a characteristic of:
Chapter 11 – Managing Environmental Issues
39. (p. 258) When businesses form voluntary, collaborative partnerships with environmental
organizations and regulators to achieve specific objectives this is called:
Difficulty: Easy
40. (p. 259) Effective environmental management requires an integrated approach that involves:
Difficulty: Hard
41. (p. 260) Some researchers believe that business firms moving towards ecological
sustainability results in:
Difficulty: Easy
42. (p. 261) Companies that reduce pollution and hazardous waste, reuse or recycle materials,
and operate with greater energy efficiency achieve a competitive advantage due to:
Chapter 11 – Managing Environmental Issues
43. (p. 261) When companies develop a reputation for environmental excellence, and they
produce and deliver products and services designed to attract environmentally aware
customers, this is called:
Difficulty: Medium
44. (p. 262) When environmentally proactive companies seek out imaginative, innovative new
methods for reducing pollution and increasing efficiency, they are adopting which strategy?
Difficulty: Medium
45. (p. 262) Companies that cultivate a vision of sustainability must adopt sophisticated strategic
planning techniques to:
Difficulty: Hard
46. (p. 247, 250-252) Briefly describe acid rain. Do you think a command-and-control or market-
based regulatory approach would work better to reduce acid rain emissions, and why?
Chapter 11 – Managing Environmental Issues
47. (p. 252-254) What is the appropriate amount of civil and criminal enforcement for those
companies who violate environmental laws? What types of guidelines exist for sentencing
environmental wrongdoers?
48. (p. 256 – 257) Moving towards more proactive environmental management is called the
“greening” of management. Using this process, discuss what organizational approaches have
been used by a specific company of your choice. Did “green” management improve the
company’s strategic competitiveness?
49. (p. 258) Do you think businesses should voluntarily undertake environmental improvement
efforts, beyond those required by law? Why or why not?
50. (p. 259) Describe the environmental management practices of a business firm with which
you are familiar. Which stage of the corporate environmental responsibility model best fits
this firm, and why? Looking again at this same firm, what steps might its managers take to
improve its environmental performance? In answering this question, consider the various
elements of effective environmental management.
51. (p. 260-262) Discuss the following statement: “Effective environmental management makes
firms more competitive.”
Chapter 11 – Managing Environmental Issues
52. (p. Entire chapter) Cost-benefit analysis seeks to weigh the relative costs and benefits of various
alternatives, to see which one gives the “best value.” Of the various areas of environmental
protection discussed in this chapter (air, water, and land), which one do you think has been the
best value? Which has been the worst value? On what basis do you think so?