The public generally believes that a business has social responsibilities beyond merely
making a profit.
According to corporate charters, the legal line of authority for a company runs from the
state, to directors, to managers, and to shareholders of the company in this sequence.
When a company changes its philosophy of giving money to charitable organizations
from pure generosity to commercial objectives, it is called strategic philanthropy.
Change in the business environment is the work of 10 deep historical forces or streams
of related events.
Although the global population growth is slowing, it will be the highest in the most
developed regions.
On the surface level, corporate power shapes society over time through the aggregate
changes of industrial growth.
Demographic factors explain a lot about what individual qualities are associated with
ethical behavior.
In many fifth-tier companies, there is a strong trend toward more centralized authority
rather than more ‘statelessness.”
The broad duties of a business that are needed to obtain the support of society are called
its social contract.
Top managers are the strongest influence on the integrity of the company’s managers.
As MNCs moved into the fifth tier of internationalization, their strategic thinking was
more influenced by national boundaries.
Almost all FDI comes from multinational corporations.
A coalition refers to business interestsincluding corporations, trade associations, and
peak associationsunited to pursue a political goal.
When companies dominate an industry, they may engage in unfair or destructive
competition.
Congress passed the Securities Act of 1933 requiring companies to register securities
and provide financial statements and other information to buyers before their sale.
Predictable and strong forces in a pluralistic, free market society limit business power.
The Industrial Workers of the World (IWW), formed in 1905, proposed to represent all
workers of both sexes and all races in the fight to overthrow the capitalist system.
The countervailing forces model states that society is governed primarily by economic
forces.
When an implied covenant of good faith is breached, the employer’s ability to fire is
limitless.
According to the doctrine of neo-Darwinism, charity interferes with the natural
evolutionary process in which society sheds its less fit to make way for the better
adapted.
Civil regulation has fully compensated for lack of binding global regulation.
Competitive markets operate more efficiently when their participants have enough
information to make informed choices.
The environmental management system is an asset of methods and procedures for
aligning corporate strategies, policies, and operations with principles that protect
ecosystems.
A warranty is a contract in which the seller guarantees the nature of the product.
Within a pluralistic society, the authoritative entity has an overriding power over all
other entities.
Values based on assumptions of security and affluence are known as postmaterialist
values.
The economic environment consists of forces that influence market operations,
including overall economic activity, commodity prices, interest rates, currency
fluctuations, wages, competitors’ actions, and government policies.
When a court makes a monetary award to a plaintiff to correct concrete losses of his
business, this is called punitive damages.
Consumerism is a term that describes a society in which people define their identities
by acquiring and displaying material goods beyond what they need for subsistence.
Unlike command regulation, environmental taxes allow polluters to forgo, change, or
control production in any way that reduces compliance costs.
In the United States of 1850 to 1900, rapid industrial growth was taking place within a
highly-regulated capitalist system that in many ways seemed to bear out the socialist’s
nightmare of exploitation.
In 1907, Progressive reformers passed the Adamson Act, making it a crime for banks
and corporations to directly contribute to candidates in federal elections.
The pluralist theory of business power was supported by Karl Marx.
Exposure assessment establishes a link between a substance and human disease.
All corporate cultures have ethical dimensions.
A dose-response assessment is a qualitative estimate of how a toxic a substance is to
humans or animals at increasing levels of exposure.
Nonwage costs including payments for social security, health insurance, and payroll
taxes that employers must pay to cover disability, unemployment, and similar benefits
are known as externalities.
A business uses society’s resources to create new wealth.
The _____ movement was a turn-of-the-twentieth-century political movement that
associated moderate social reform with betterment.
A.socialistic
B.progressive
C.libertarian
D.populist
When a business hires a person in order to advocate a position to the government, it is
said to be indulging in:
A.corruption.
B.campaigning.
C.lobbying.
D.coalescing.
Identify the Act that prohibits consideration of economic factors in the decision to list a
species.
A.The United States Fish and Wildlife Service Act
B.The Land and Water Conservation Fund Act
C.The Driftnet Impact Monitoring, Assessment and Control Act
D.The Endangered Species Act
The four cardinal virtues identified by Plato are justice, temperance, courage, and:
A.wisdom.
B.respect.
C.honor.
D.benevolence.
The idea that there are no common ethical values but that each culture determines these
values is a basic tenet in:
A.ethical universalism.
B.ethical relativism.
C.reciprocity.
D.master morality.
Which of the following were formidable business adversaries that emerged during the
19thcentury?
A.Organized labor and the Anti-Saloon League
B.The Progressive movement and the Modern Whig Party
C.The Populist movement and the Progressive movement
D.The Anti-Saloon League and the Populist movement
Which of the following is the predominant greenhouse gas, which makes up about 85
percent of greenhouse gas emissions?
A.Chlorofluorocarbons
B.Nitrous oxide
C.Carbon dioxide
D.Methane
Natural rights are:
A.limited within a community.
B.unalienable rights.
C.relative to specific cultures.
D.codified into statutes.
Which of the following sectors includes jobs in retailing, transportation, and health
care?
A.Service
B.Manufacturing
C.Agricultural
D.Goods-producing
A company that uses business necessity as a justification must:
A.have programs to recruit from diverse groups and promote tolerance.
B.implement affirmative action.
C.practice systematic discrimination.
D.show how the practice in question is job-related and essential.
_____ regulation gives polluters financial motives to control pollution while also giving
them flexibility in how reductions are achieved.
A.Command-and-control
B.Market incentive
C.Cap-and-trade
D.Voluntary
For the largest companies in each era, economies of scale and _____ in markets led to
high profits and prolonged their dominance.
A.monopolistic competition
B.perfect competition
C.monopoly
D.oligopoly
Epidemiological studies:
A.have high statistical power.
B.are totally reliable and valid.
C.do not measure human deaths.
D.measure real human illness.
The process of deciding which regulatory action to take regarding specific risks is
called:
A.risk assessment.
B.contingent valuation.
C.cost-benefit analysis.
D.risk management.
A price that incorporates a modest profit and is adequate to maintain a merchant in the
social station to which they are born is known as:
A.just price.
B.market price.
C.promotional price.
D.cost price.
_____ is an economic ideology with a bundle of values including private ownership of
means of production, the profit motive, free competition, and limited government
restraint in markets.
A.Capitalism
B.Socialism
C.Communism
D.Democracy
All of the following are norms of social values EXCEPT:
A.duty.
B.justice.
C.economics.
D.piety.
A manager makes ethical decisions based on what he feels he can get away with given
his power in the organization’s hierarchy. He is using the principle of the:
A.categorical imperative.
B.intuition ethic.
C.might-equals-right ethic.
D.disclosure rule.
_____ is a situation when submission to sexual activity is required to get or keep a job.
A.Stalking
B.Business necessity
C.Quid pro quo
D.Hostile environment
_____ was a philosophy of the late 1800s and early 1900s that used evolution to explain
the dynamics of human society and institutions.
A.Social Darwinism
B.Universal Darwinism
C.Neo-Darwinism
D.Neural Darwinism
The _____ institutionalized the idea that whites were superior to blacks by creating
segregated schools, restrooms, and water fountains.
A.Northern Black codes
B.Jim Crow laws
C.Nuremberg Laws
D.Blue laws
Identify the ethical principle that states that managers are responsible for the
consequences when they create situations leading to both good and evil effects.
A.The principle of proportionality
B.The principle of justice
C.The principle of utility
D.The principle of equal freedom
Which of the following Acts prohibits employers from discriminating against applicants
or employees based on hereditary information?
A.The Employment Non-Discrimination Act
B.The Biologics Control Act
C.The Emergency Medical Treatment and Active Labor Act
D.The Genetic Information Nondiscrimination Act
Which of the following is a variant of strategic philanthropy in which charitable
contributions are based on purchases of a product?
A.Altruism
B.Checkbook philanthropy
C.Venture philanthropy
D.Cause-related marketing
Which of the following is true about the OECD Guidelines?
A.An informal process exists to “encourage” observance of the guidelines.
B.Each government that joins in the guidelines sets up an office, called a “national
contact point.”
C.Observance of the guidelines is obligatory.
D.There are legal sanctions and penalties for violations of the guidelines.
Which of the following are awarded to deter similar actions and punish a corporation
that has exhibited malicious and willful misconduct?
A.Compensatory damages
B.Nominal damages
C.Punitive damages
D.General damages
According to the theory of deep ecology:
A.people feel depressed when their home environment changes.
B.human interference with nature is now excessive and must be drastically reduced.
C.human beings have duties not only towards fellow humans but also towards nature.
D.rural life is superior to city life.
The theory that humans are separate from nature because they have the power of reason
and, unlike plants and animals, have souls is known as the theory of:
A.dualism.
B.atomism.
C.emergentism.
D.humanism.
Which of the following is an economic system in which private individuals and
corporations own the means of production and, motivated by the desire for profit;
compete in free markets under conditions of limited restraint by government?
A.Utilitarianism
B.Capitalism
C.Socialism
D.Fascism
Exporting a product at a price below the price it normally sells for in its home market is
known as:
A.structural adjustment.
B.dumping.
C.free trade.
D.offshoring.
Laws that prohibited stores from opening on Sundays were called:
A.soft laws.
B.tort laws.
C.hard laws.
D.blue laws.
Which Act, did the Progressive reformers pass in 1907, making it a crime for banks and
corporations to directly contribute to candidates in federal elections?
A.The Bipartisan Campaign Reform Act
B.The Hatch Act
C.The Tillman Act
D.The Federal Election Campaign Act
According to Aristotle, which of the following is true?
A.Courage, temperance, justice, and wisdom are “external goods”.
B.Trade was a lower form of acquisition because it was activity that did not contribute
to inner virtue.
C.”External goods” were superior to “goods of the soul”.
D.Profit motive was to be supported.
Which of the following is true regarding the waves of innovation that have taken place
since the beginning of the Industrial Revolution?
A.The first wave of innovation started in 1685.
B.In the first wave of innovation, electricity came into general use.
C.The second wave of innovation began in 1845 and ended in 1900.
D.The second wave of innovation was powered by aviation.
What is the European Union (EU)?
How does the cultural environment create change in the relationships between business,
governments, and societies?
What was the doctrine of liberty of contract? What was its greatest flaw?
Discuss Plato’s and Aristotle’s views on commercial activity.
Define environmental management system. What are its core elements?
Describe the views of the old Progressives and the new Progressives. What are the three
basic beliefs that prompt them to act?
What was the scenario during the first wave of federal regulation of business?
Discuss the OECD Guidelines for Multinational Enterprises.
Explain what the Global Reporting Initiative (GRI) is intended to accomplish.
What is an agrarian society?
What is a strategy? Discuss the implementation of a CSR strategy.
What is the difference between primary and secondary stakeholders? Give examples.
What are the three national movements that aimed to protect consumers in the United
States?
What is a peak association?