The U.S. government strictly controls the use of GPS and similar tracking devices at the
federal level.
Civic engagement is a major way in which companies carry out their corporate
citizenship mission.
In most companies, a moral atmosphere cannot be detected.
A firm must constantly re-establish its brands in order to maintain their reputation.
Global corporate citizenship activities help companies create value, reputation, and
competitive advantage.
If all people relied on ethical relativism, there would be no universal ethical standards
on which people around the globe could agree.
In the issue management process, identifying the issue involves anticipating emerging
issues.
The capability of corporations to influence government, the economy, and society,
based on their organizational resources is called the big business principle.
Community relations departments work primarily on the national level to link the
corporation to community stakeholders.
The activism of institutional shareholders has often worsened company performance.
In the United States, immigrants are more likely than non-immigrants to start their own
business, having been responsible for 30 percent of small business growth.
Businesses and society are independent of one another.
Business must develop its own definition of what is right and wrong, apart from ethics.
When a company publishes the results of a social audit they are meeting the demands of
local governments’ taxation policies.
Only manufacturing jobs are being lost through globalization.
Some labor unions have exerted their influence through political action committees.
A cooperative government-business relationship on one issue does not guarantee
cooperation on another issue.
The industries most prone to corporate crisis include the fast food industry and
auto-makers.
The interests of different stakeholders often coincide.
One key role of the Chief Information Officer is to clearly define the value of
information and how to protect it against threats.
For stakeholder engagement to occur, both the business and the stakeholder must be
motivated to work with one another to solve the problem.
Environmental analysis is a method managers use to gather information about external
issues and trends.
Under the “right to be heard” protection, the consumer is to be assured satisfactory
quality and service at fair prices.
Today, more companies than ever, are turning to formal ethics audits to measure the
quality of their ethics programs.
In a business context, privacy rights refer to protecting an individual’s personal life
from unwarranted intrusion by his or her employer.
The paradox of the commons is that if all individuals attempt to maximize their own
private advantage in the short term, the commons will still remain productive in the
long run.
A diversity council is a group of managers and employees responsible for developing
and implementing specific action plans to meet an organization’s diversity goals.
Environmental intelligence is the acquisition of information gained from analyzing the
multiple environments affecting organizations.
An organization’s public relations programs may vary by country depending on the
culture, social mores, or political systems.
Monetary policies refer to policies that affect the supply, demand and value of the
nation’s currency.
According to the textbook, the heads of most public affairs departments are senior vice
president or vice president positions.
In the first stage of corporate citizenship, the elementary stage, managers are
uninterested and uninvolved with social issues.
Most scholars agree that business must participate in politics.
In non-democratic countries, the power of government may derive from a monarchy,
military dictatorship, or religious authority.
The Sarbanes-Oxley Act requires that firms maintain good financial practices, apart
from high ethical standards, in how they conduct and monitor business operations.
Personal values and moral character play key roles in improving a company’s ethical
performance.
Under the Resource Conservation and Recovery Act of 1976, the government regulates
hazardous waste from “cradle to grave.”
According to a recent Transparency International survey, Denmark and New Zealand
are two countries that are least likely to be subjected to bribery.
When the company that originally polluted a Superfund site can be identified, it is
required to pay for the cleanup.
These individuals hack into government or corporate computer networks and then
release information to try to embarrass those organizations or gain leverage against
these organizations:
A. Software pirates.
B. Comodohackers.
C. Hacktivists.
D. Data trafficking groups.
American Express established a consulting program that sent expert teams of
employees into nonprofits to solve organizational problems. This can be considered an
example of:
A. An in-kind contribution.
B. Skills-based volunteerism.
C. Community-based philanthropy.
D. Organizational support.
Why should business be ethical?
A. Most people want to act in ways that are consistent with their own sense of right and
wrong.
B. Ethical behavior protects business firms from abuse by unethical employees and
competitors.
C. Society’s stakeholders expect it from businesses.
D. All of the above.
Corporate power refers to:
A. The capability of competitors to influence legislation, trade, and the stock market,
based on their organizational resources.
B. The capability of politicians to influence corporations, employees, and unions, based
on their organizational resources.
C. The capability of corporations to influence government, the economy, and society,
based on their organizational resources.
D. The capability of CEOs to influence product development, employee morale, and
currency indices, based on their organizational resources.
When a business seeks to overturn a law after it has been passed or threatens to
challenge the legal legitimacy of the new regulation in the courts, this is called:
A. Accumulating.
B. Overturn lobbying.
C. Legal challenges.
D. Funneling.
When a government orders companies not to conduct business in another country
because of a war, human rights violations, or lack of a legitimate government; these
orders are called:
A. Government bailouts.
B. Political sanctions.
C. Economic sanctions.
D. Government stop-orders.
According to a recent survey, what percentage of firms would terminate a supplier if
serious violations were found?
A. 7 percent.
B. 26 percent.
C. 48 percent.
D. 97 percent.
The public has the ability to demand a certain level of performance from a firm through
which stakeholder networks?
A. Consumer advocacy groups.
B. Government agencies.
C. A firm’s employees.
D. Both A and B, but not C.
The law requiring that toys and infant products be tested before sale is called the:
A. Child Safety Act.
B. Strong Product Safety Bill.
C. Consumer Product Safety Improvement Act.
D. Uniform Safety Testing Bill.
Which organization brings together 250 nonprofit groups to espouse the consumer
viewpoint?
A. Consumers Union.
B. Consumer Federation of America.
C. National Consumer League.
D. Public Citizen.
Which of the following statements is not true about shareholders?
A. They are the legal owners of business corporations.
B. They own equal shares of company assets.
C. They are investors in the company.
D. Managers pay close attention to their needs and interests.
Which of these is not a current consumer law that protects individual privacy?
A. Internet “do not track” rules.
B. The FTC’s “do not call” list to avoid unwanted telemarketing calls.
C. Unwanted calls to a person’s mobile phone.
D. Children’s Online Privacy Protection Action of 2000.
The commitments of the Convention on Biological Diversity include:
A. Developing national conservation strategies.
B. Eliminating CFC production.
C. Population control education.
D. Massive irrigation projects in developing countries.
With the explosive growth of technologies that facilitate the sharing of information, this
kind of stakeholder power has become increasingly important:
A. Economic power.
B. Political power.
C. Informational power.
D. Legal power.
A reason for institutions becoming more assertive in promoting the interests of their
member investors is:
A. It is difficult for institutions to sell their holdings.
B. Institutional investors are rarely able to influence management policy.
C. Institutions have greater flexibility in selling stocks.
D. Institutions have nominated members on the finance committee of the board of
directors.
Which of these specializations was/were spurred by the rapid changes in technology
over the past few decades?
A. Smart manufacturing.
B. Wireless networks.
C. Processing of enormous amounts of data.
D. All of the above.
When the market fails to adjust for the full costs of a firm’s behavior, this is called:
A. Negative externalities.
B. Deregulation.
C. Market failure.
D. Re-regulation.
A firm that would like to develop a global supply chain would:
A. Manufacture components or supplies in other countries.
B. Sell raw materials, components or supplies produced at home abroad.
C. Purchase raw materials, components, or supplies from sellers in other countries.
D. Check products that were manufactured abroad for defects in their home country.
Over time, the nature of business’s relationship with its stakeholders often:
A. Remains static.
B. Evolves through a series of stages.
C. Becomes more hostile.
D. None of the above.
M-Commerce is facilitated primarily by:
A. Lap-tops.
B. Personal computers.
C. Mobile or cell phones.
D. The government.
Because of the risks and opportunities public issues present, organizations need:
A. A strong relationship with a lobbying firm or an in-house lobbying department.
B. Executives to be rewarded with substantial bonuses as part of total compensation.
C. A systematic way of identifying, monitoring, and selecting public issues.
D. Tougher government regulations and oversight by political action committees.
Departments, or offices, within an organization that reach across the dividing line that
separates the company from groups and people in society are:
A. Inter-departmental divisions.
B. Geographical location areas.
C. Boundary-spanning departments.
D. Organizational maps.
A conception of right and wrong is:
A. Impossible to know.
B. The definition of ethics.
C. Determined by power.
D. Based on stakeholder dialogue.
Environmental justice is a movement to:
A. Prevent inequitable exposure to risk, such as from hazardous waste.
B. Identify polluters and require them to pay for the cleanup of their toxic waste.
C. Reduce pollution at the source, rather than treat and dispose of waste at the “end of
the pipe.”
D. Specifically restrict the use of dangerous pesticides which can pollute groundwater.
The SEC filed civil false-certification charges against which U.S. financial institution?
A. Wells Fargo.
B. Countrywide.
C. J.P. Morgan Chase.
D. Bear Stearns.
An example of a regulatory agency charged with enforcing social regulation is:
A. Federal Aviation Administration.
B. Federal Trade Commission.
C. Federal Communications Commission.
D. Internal Revenue Service.
The five types of stakeholders’ power recognized by most experts are:
A. Voting, economic, political, legal, and informational power.
B. Social, legal, environmental, economic, and political power.
C. Social, regulatory, voting, governance, and information power.
D. Economic, informational, legal, shareholder, and political power.
Which of the following statements is not true about environmental standards?
A. Regulatory agencies can establish standard allowable levels of pollutants.
B. The government has the power to command business firms to comply with certain
standards.
C. The government rarely interferes in a business’s choice of pollution technology.
D. They are the most widely used methods of regulation.
Which of these is not an objective of the Global Reporting Initiative (GRI)?
A. Combining long-term profitability with ethical goals, social justice, and
environmental care.
B. Measuring social performance across companies.
C. Providing tax incentives for global corporate citizens.
D. Reflecting the interests of business, labor, civil society, and financial markets.
Which of the following companies is being the most socially responsible?
A. A company trying its best to operate in a way which will help local students get
education and jobs.
B. A company halting its production of toxic gases after it discovered that people
objected to this practice and threatened legal action.
C. A company trying to maximize its profits and then contributing to an environmental
protection fund.
D. A company changing its product design to comply with regulatory mandates.
Which of the following is true about random drug testing of employees?
A. It screens randomly-selected employees at various times through the year.
B. It randomly tests selected applicants before hiring, as a part of a physical
examination.
C. It tests an employee believed to be impaired by drugs and unfit for work.
D. It regularly tests employees from randomly-selected job categories or job levels.
The board committee that administers and approves salaries and benefits of high-level
managers in a company is called the:
A. Executive committee.
B. Human resources committee.
C. Nominating committee.
D. Compensation committee.
Which of these statements is (are) true regarding the general public?
A. They deal with businesses through an economic exchange.
B. This organizational stakeholder consists of individuals and groups found in society.
C. They are unable to influence a firm’s reputation.
D. All of the above.
Compare and contrast the three levels of business political involvement.
Answer:Answers may vary.
Provide three arguments against corporate social responsibility.
Answer:Answers may vary.
Explain how Masdar is an example of a completely sustainable community.
Answer:Answers may vary.
Discuss the benefits and costs of globalization. Provide examples of how globalization
has helped or harmed individual nations and the world economy.
Answer:
Answers may vary.
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?
Answer:
Answers may vary.
Briefly describe the public policy process of a foreign country and its implication on the
business political activity in that country.
Answer:Answers may vary.
Define and provide an example of a business practicing enlightened self-interest.
Answer:Answers may vary.
Outline some of the major government agencies responsible for consumer related
issues. What is the major mission of each?
Answer:
Answers may vary.
Identify and compare the four reasons why governments turn to regulation as a way to
solve their problems.
Answer:Answers may vary.
How does the increase in technological innovation affect individual privacy and free
speech?
Compare and contrast economic policies with social assistance policies.
Answer:Answers may vary.
What defines an environmental problem that is inherently global in scope?
Supporters of the stakeholder theory of the firm make three core arguments for their
position. Define and provide examples of each.
Answer:Answers may vary.
How is the corporate Chief Information Officer (CIO) a ‘security guard” for the
organization? What are some of the important responsibilities of the CIO?
Answer:
Answers may vary.
Define ethical climate. Discuss the differences and similarities among the ethical
climates outlined in the textbook.
Answer:Answers may vary.
How does a person’s spirituality influence his/her ethical behavior? How have
organizations responded to increased attention to spirituality and religion at work
attempting to accommodate their employees?
Answer:
Answers may vary.