The thought experiment used by John Rawls that examined how individuals would
formulate principles if they did not know what their future position in society would be
is called
a. Equality principle
b. Utilitarian veil
c. Liberty principle
d. Universal principle
e. Veil of ignorance
Which of the following is a major ethical concern among corporate boards of directors?
a. Compensation
b. The non-traditional directorship approach
c. Dividend reporting
d. Corporate social audits
e. Debt swaps
Power distance dimension refers to the “power inequality” between superiors and
subordinates. Which of the following countries probably ranks high on the power
distance scale? a. Saudi Arabia
b. Austria
c. England
d. Denmark
e. Sweden
When unethical acts are discovered in a firm, in most instances
a. they are caused by unwilling participants.
b. the cause is due to external stakeholders.
c. the perpetrators are caught and prosecuted.
d. there was knowing cooperation or complicity from within the company.
e. the cause is a corrupt Board of Directors.
Which of the following is nota method typically employed by firms when researching
relevant stakeholder groups?
a. Surveys
b. Focus groups
c. Internet searches
d. Press reviews
e. Guessing
Stakeholder assessment is an important part of a approach to environmental issues.
a. low-commitment
b. medium-commitment
c. high-commitment
d. hands-off
e. hands-on
involves tricking individuals into revealing their passwords or other valuable corporate
information.
a. Shoulder surfing
b. Remote hacking
c. Social engineering
d. Physical hacking
e. Dumpster diving
The term used to express how a firm meets its stakeholder expectations of its economic,
legal, ethical, and philanthropic responsibilities is
a. reputation.
b. corporate citizenship.
c. corporate ethical audit.
d. ethical citizenship.
e. fiduciary duties.
Which of the following is notassociated with the stakeholder interaction model?
a. Involves a two-way relationship between firm and stakeholders
b. Recognizes the input of investors, employees, and suppliers
c. Explicitly acknowledges dialogue with a firm’s internal environment
d. Explicitly acknowledges dialogue with a firm’s external environment
e. Identifies the mass media, special interest groups, competitors, and trade associations
as primary stakeholders
The establishment of an ethics committee within an organization
a. is usually highly informal.
b. is usually organized around general business topics.
c. might raise ethical concerns or resolve ethical dilemmas.
d. usually always succeeds.
e. usually increases ethical tension.
A__________-based culture encourages employees to express concerns, bring up ethica
l issues, and take aproactive approach toward resolving conflicts.
a. Values
b. Profits
c. Consumers
d. Shareholders
e. Stakeholders
Which of the following do nottypically engage in transactions with a company and thus
are not essential for its survival?
a. Employees
b. Secondary stakeholders
c. Primary stakeholders
d. Investors
e. Customers
The idea that the mission of business is to produce goods and services at a profit, thus
maximizing its contribution to society is associated with
a. Adam Smith.
b. Theodore Levitt.
c. Norman Bowie.
d. Herman Miller
e. Milton Friedman.
The ultimate ‘stick” associated with the FSGO is fines or probation, which involves
on-site observation by consultants, monitoring of the company’s ethical compliance
efforts, and
a. reporting to the U.S. Sentencing Commission on the company’s progress in avoiding
misconduct.
b. installation of an ethics hotline.
c. payment of any penalties levied.
d. appointment of an appropriate high-level manager to oversee the company’s program.
e. divestiture of all assets.
Which of the following is nota criticism of or charge against multinational corporations
(MNCs)?
a. They transfer jobs overseas, where wage rates are lower
b. They increase the gap between rich and poor nations
c. They pay excessively high taxes everywhere
d. They exploit the labor markets of host countries
e. They have an unfair advantage when competing with local businesses
Public health and safety and support of local organizations are issues most relevant to
which stakeholder group?
a. Investors
b. Community
c. Suppliers
d. Customers
e. Employees