The Golden Rule of ethics suggests to managers that it is acceptable to treat workers as
simply factors of production that should be manipulated in the manager’s best interest.
_____ is the inherent authority of the state governments to regulate economic and social
relationships for the welfare of the citizens.
A.Prohibitionism
B.Martial law
C.Eminent domain
D.Police power
Which of the following is a criticism of cost-benefit analysis?
A.It disciplines thinking and always dictates choices.
B.Fixing precise values of costs and benefits is difficult and controversial.
C.They compromise ecosystems deserving conditional, not absolute, protection.
D.Benefits and costs of a program often fall on the same party.
Bribes paid by managers of one corporation to managers of another are legal under the
Foreign Corrupt Practices Act (FCPA).
Classical ideology focused solely on the _____ circle of social responsibility.
A.intermediate
B.outer
C.neutral
D.inner
_____ regulations do not require legal compulsions or sanctions.
A.Voluntary
B.Market incentive
C.Required disclosure
D.Command-and-control
The idea that business is preeminent in American society, primarily because of its
control of wealth, and that its power is both excessive and inadequately checked is
based on the _____ theory of business power.
A.dominance
B.state autonomy
C.pluralist
D.agonism
According to ____, corporate social responsibility creates administrative expenses,
distracts executives, confuses economic goals with other goals, and subtracts from
social welfare when the corporation is less efficient.
A.radical Progressives
B.progressive civil societies
C.conservative economists
D.moderate Progressives
The 80 percent rule is met if a company has hired:
A.at least 10 percent of black applicants if it has hired 20 percent of all white
applicants.
B.at least 10 percent of white applicants if it has hired 20 percent of all black
applicants.
C.minorities at the rate of at least 80 percent of the rate at which it hires from the
demographic group.
D.minorities at the rate of at least 20 percent of the rate at which it hires from the
demographic group.
Which of the following statements about the Industrial Revolution is true?
A.It started in the late 1800s.
B.It first started in the United States.
C.It transformed the agrarian economies into industrial economies.
D.It did not require any specific conditions to be present.
Which of the following is true regarding the common elements of diversity programs?
A.Leadership from the top is critical.
B.Changing the organization structure disrupts diversity efforts.
C.Measuring progress does not require data collection.
D.Training programs are not very popular.
A treated or untreated wastewater discharge from an industrial facility is known as a(n):
A.spill.
B.surface runoff.
C.effluent.
D.condensible.
A holder of stock options can buy shares from the company at a specified future date,
called the _____ date.
A.withdrawal expiration
B.inception
C.vesting
D.annuitization
Which of the following statements about a CSR review is false?
A.It explores regulatory requirements, but cannot examine competitors’ initiatives.
B.It involves an engagement of stakeholders to reveal expectations in society.
C.It can begin with a definition of CSR to provide a focus.
D.It involves a discovery of core values.
Which of the following refers to a set of free market policies imposed on developing
nations by the IMF and the World Bank as loan conditions?
A.Structural adjustment program
B.Autarky
C.The Bretton Woods system
D.Washington Consensus
A(n) _____ society is one that has multiple groups and institutions through which
power is diffused.
A.oligarchic
B.totalitarian
C.pluralistic
D.power elite
The practice of a corporation publishing information about its economic, social, and
environmental performance is known as:
A.sustainability accounting.
B.global indexing.
C.global reporting initiative.
D.sustainability reporting.
Identify the corporate culture level that encompasses formal statements of belief and
intention.
A.Espoused values
B.Artifacts
C.Enacted values
D.Tacit underlying values
If a company issues ethics guidelines that include the statement: “If an action feels
wrong, don’t do it,” the company is applying the:
A.intuition ethic.
B.ends-means ethic.
C.equal freedom principle.
D.theory of justice.
This is an independent director who chairs regular board meetings of other independent
directors.
A.Inside director
B.Lead director
C.Internal director
D.Vocational director
_____ power is the ability of a company to influence events, activities, and people by
virtue of control over resources.
A.Legal
B.Technological
C.Economic
D.Social
The theory of _____ valued nature primarily as a commodity to be used in
wealth-creating activity that increased the vigor, welfare, and comfort of society.
A.capitalism
B.socialism
C.altruism
D.utilitarianism
Which ethical principle asserts that right actions are found in the area between extreme
behaviorslabeled as excess on the one hand and deficiency on the other?
A.The principle of equal freedom
B.The Doctrine of the Mean
C.The categorical imperative
D.The theory of justice
_____ exists on a wide spectrum ranging from coercion at one extreme to weak
influence at the other.
A.An ideology
B.Justice
C.Power
D.Pluralism
According to ____, corporate social responsibility is an insufficient doctrine that
substitutes poorly for tougher laws and regulations, allowing corporations to form a
smoke screen of virtue behind which their “inviolable core” of profit seeking behavior
is untouched.
A.progressive civil societies
B.radical Progressives
C.conservative economists
D.moderate Progressives
Business groups say that the Alien Tort Claims Act:
A.brings justice for the oppressed.
B.victimizes the world’s poor “by imposing an enormous tax on investment in
developing countries at a time the world desperately needs such investment.”
C.will restrict U.S. officials from going to different corners of the globe and exploiting
the local populations.
D.gives “people in foreign countries comfort that U.S. corporations will abide by
international standards.”
Cost-benefit analysis:
A.forces methodical consideration of each impact of a policy on social welfare.
B.disciplines thinking and always dictates choices.
C.injects untenable calculation into emotional arguments.
D.that reveals marginal abatement costs rarely helps regulators find efficient levels of
regulation.
A(n) _____ is a government entity that invests the savings of a nation.
A.angel investor
B.private investor
C.central bank
D.sovereign wealth fund
The popular theoretician of the rising capitalist spirit was _____ who published the first
annual “Poor Richard’s Almanack”, an eclectic book of facts, information, and self-help
advice.
A.Thomas Jefferson
B.Adam Smith
C.Benjamin Franklin
D.John Locke
All of the following statements about a functional magnetic resonance imaging (fMRI)
are true EXCEPT:
A.it is a method used to map activity in neural networks during ethical decision making.
B.it can pinpoint neural activity to within 1 micrometer in the brain.
C.it measures changes in blood flow and blood oxygen content related to neural
activity.
D.it works by detecting shifts in magnetic properties of hemoglobin.
A Washington Office is:
A.set up by a corporation to pursue a political goal.
B.set up by a corporation and staffed with experts in advocating the firm’s point of view
to lawmakers and regulators.
C.an office that represents the political interests of many companies and industries.
D.an office that represents the interests of an industry or industry segment.
Which of the following is a measure of social globalization?
A.Telephone traffic
B.The number of embassies in a country
C.Tariff rates
D.Import barriers
As a response to the economic depression in 1932, President Franklin D. Roosevelt
proposed the ____, a series of programs to bring “Relief, Recovery, and Reform.”
A.New Deal
B.Square Deal
C.Fair Deal
D.New Frontier
Which of the following is a relevant categorization of stakeholders according to their
orientation to the firm?
A.Confrontational, neutral, or supportive
B.High, medium, or low influence
C.Neutral, low, or medium influence
D.Feminists, investors, or environmentalists
Which of the following are used as refrigerants, aerosol propellants, foams, and
solvents?
A.Herbicides
B.Placebos
C.Carbon monoxides
D.Chlorofluorocarbons
Discuss the theory of dualism.
What is the First Amendment and how is it critical to business? What rights are
guaranteed by the First Amendment?
What is the 80 percent rule? Explain an example.
Explain the flow of authority granted by the powers of a charter of a corporation.
Explain what is meant by the organization ethic in ethical decision-making and give a
business example of the application of this concept.
Explain the environmental Kuznets curve. Discuss the factors that explain it. What are
the factors that underlie pollution reductions?
Explain what a corporate charter allows a corporation to do.
What is an independent regulatory commission? How did the first independent
regulatory commission come into existence?
What is meant by the rights ethic in ethical decision-making?
What is meant by a “Washington office”?
What are the Bretton Woods institutions?
Discuss how institutions support markets.
What are the two major perspectives on business power?
Define disparate treatment, disparate impact, and business necessity.
Discuss the four cardinal virtues of Plato.
Explain how a company can do a social audit when it decides to evaluate its impact on
society.
Discuss the evolution of social responsibility during the late 19th and early 20th
centuries.
Explain what is meant by corporate philanthropy and how it is expressed.