When boards of directors meet without management present, they are more likely to
have completely candid discussions about a company’s affairs.
Urgency refers to the extent to which a stakeholder’s actions are seen as proper or
appropriate by the broader society.
The term sector refers to broad divisions of a whole.
Public policy effects are always unintended consequences of an action.
The world’s natural resource basethe air, water, soil, minerals, and so forthis essentially
finite, or bounded.
In 2014, a Ponemon Institute study reported that businesses took an average of 60 days
to recover from a cyberattack.
When a supply chain audit is conducted, workers are usually willing to share their
experiences with the auditors.
Deceptive advertising is still legal in most countries.
According to utilitarian reasoning, an action is ethically preferred when its benefits
outweigh its costs.
Only in the last few years have scholars found a positive relationship between an
organization’s economic performance and attention to spiritual values.
The employment relationship confers rights and duties on both sides.
The term community is sometimes improperly used to refer to a range of groups that are
affected by an organization’s actions, whether or not they are in the immediate vicinity.
In the United States the government has tried to help narrow the digital divide by
subsidizing Internet upgrades for schools and providing free cell phones to citizens in
need.
Sexual harassment is limited to overt acts of individual coworkers or supervisors.
The major agency charged with enforcing equal opportunity laws and executive orders
in the United States is the Americans with Disabilities Council (ADC).
Technology is an unmistakable ethical force, but not an economic or social force, in the
world where we live.
Bribery is found in nearly every sector of the global marketplace, but can be worse in
some parts of the world.
Assurance that a supplier is in compliance with the relevant code of conduct is
determined by a supply chain audit.
The first United States federal laws to protect the environment involved protecting
navigable waterways.
In 2014, NATO ratified a change to its mission of collective defense by stating that a
cyberattack on one member nation would be declared an attack on all members.
Sexual and racial harassment will happen, and there is little a business can do to
eliminate the problem.
One problem with companies issuing product recalls is that the public is often unaware
of them.
Corporate charitable donations are defined as gifts of products or services.
Competitive intelligence enables managers in companies of all sizes to make informed
decisions in all areas of the business.
Understanding and responding to changing societal expectations is a business necessity.
In the United States, most ethics policies are primarily based on the company’s mission
and vision.
Consumers being able to check physical store inventory on their mobile phones is an
example of how businesses can use the concept of omnichannel.
A national health care policy is an example of an economic policy.
Corporate social responsibility is the idea that businesses interact with the
organization’s stakeholders for social good while they pursue economic goals.
A public issue exists when there is agreement between the stakeholders’ expectations of
what a business firm should do and the actual performance of that business firm.
A company can develop its own code of conduct or adopt an NGO or industrywide
code.
Land, even when properly cared for, is not a renewable resource.
Stock options represent the right to buy a company’s stock at a set price for a certain
period.
One of the most appealing arguments in favor of corporate social responsibility for
business supporters is that voluntary social acts may head off increased government
regulation.
An example of a Global Action Network, or GAN, is:
A. The World Trade Organization.
B. Nongovernmental organizations.
C. The Kimberley Process.
D. The Heritage Foundation.
Another term for corporate giving is corporate:
A. Welfare.
B. Goodwill.
C. Philanthropy.
D. Citizenship.
A reason for an increase in employee monitoring does not include:
A. To achieve greater efficiency at work.
B. To avoid lawsuits if employees act in inappropriate ways.
C. To make sure employees do not disclose confidential information.
D. To reduce the employer’s health insurance premiums.
In 2014, the percentage of Americans who believed that stem-cell research is morally
acceptable was:
A. 52 percent.
B. 60 percent.
C. 65 percent.
D. 27 percent.
The process of firms buying and selling the right to pollute is an example of which type
of environmental regulation?
A. Command.
B. Control.
C. Market-based.
D. Emissions charges.
Experts attribute the growth of nongovernmental organizations to:
A. The creation of global stock exchanges and enhanced currency transactions.
B. The globalization of marketing and converging consumer preferences.
C. Greater openness in many societies.
D. All of the above.
Which of these channels represents a traditional media outlet?
A. Blogs.
B. Cell phones.
C. Television.
D. Podcasts.
A leadership role in addressing emerging management issues in often taken by:
A. The public affairs department.
B. The government relations department.
C. The department of sustainability or environmental, health and safety.
D. All of the above.
Which of the following examples does not show a company guided by enlightened
self-interest?
A. A company providing the best quality product at a fair price.
B. A company providing assistance to employees who attend evening college.
C. A company breaking past records by maximizing quarterly profits.
D. A company vice-president invited to attend a local community’s town planning
meeting.
The purpose of the World Trade Organization is to:
A. Impose barriers to free trade among nations.
B. Eliminate barriers to free trade among nations.
C. Develop trading partnerships between rich and poor nations.
D. Decrease globalization and free trade.
Building a positive and ethical reputation requires a firm to:
A. Offer products that are somewhat better than their competitors.
B. Convey a compelling story about the firm and what it stands for.
C. Avoid attention from the news media.
D. Pay opinion leaders to write positive reviews.
Which of the following is true about the U.S. government’s PRISM program?
A. Technology companies could voluntarily turn over individual private
communications.
B. The clandestine program was hidden by Edward Snowden.
C. Critics of the program called it an unwarranted intrusion by Big Brother.
D. Google challenged the program rules and won.
In the United States, which of the following agencies enforces the laws prohibiting
deceptive advertising?
A. Congress.
B. Consumer Product Safety Commission.
C. Federal Trade Commission.
D. Department of Justice.
Ethical challenges for information technology employees include:
A. Data privacy.
B. Laptop speed.
C. Copyright protection.
D. Both A and C, but not B.
This law tightened regulation on issuers of complex securities, especially those related
to subprime mortgages:
A. Sarbanes-Oxley Act.
B. Dodd-Frank Act.
C. Affordable Care Act.
D. Securities and Exchange Act.
Global social audit standards concentrate on:
A. Internally focused economic benefits for the firm.
B. Externally focused social benefits for the environment.
C. Externally focused social benefits for key stakeholders.
D. All of the above.
Business executives are finding that a trusting, ethical relationship with a business
partner is:
A. Best left to not-for-profit companies.
B. Too costly to maintain.
C. Likely to cause legal problems.
D. Often essential in conducting business.
As communications improve and people around the world are able to witness the
horrors of natural disasters, terrorism, and war, international relief efforts by
corporations are becoming:
A. Less important.
B. More important.
C. Obsolete because of social media.
D. A liability because of negative media.
Which type of supplier audit is being used when a company hires and trains its own
staff of auditors?
A. External.
B. Third-party.
C. Factory.
D. Internal.
Which of these activities is not considered to be a marine ecosystem threat?
A. Overfishing.
B. Ocean pollution.
C. Coastal development.
D. Ocean alkalinity.
When working well, the issue management process:
A. Is static and never pulls in additional information that would disturb the balance.
B. Generates two specific options for each issue.
C. Minimizes dialogue with the stakeholders and focuses on short-term survival.
D. Continuously cycles back to the beginning and repeats.
Some companies have created a department of corporate citizenship to:
A. Adopt the United Nations’ Global Compact Principles.
B. Decentralize under common leadership wide-ranging corporate citizenship functions.
C. Centralize under common leadership wide-ranging corporate citizenship functions.
D. Narrow the job of the public relations office.
Emphasizing key points and guiding the media reporter to them is called:
A. Hooking.
B. Bridging.
C. Flagging.
D. Gapping.
Which country recently enacted new laws to counter bribery and corruption?
A. Russia.
B. Somalia.
C. Brazil.
D. Argentina.
The explosive use of social media is an example of:
A. Customer environment.
B. Competitor environment.
C. Economic environment.
D. Social environment.
What method(s) did the businesses opposed to Arkansas’ “religious freedom” laws use
to influence lawmakers?
A. Filed a lawsuit.
B. Made public announcements.
C. Hired private lobbyists.
D. Both B and C, but not A.
Which of the following is true about corporate boards?
A. Corporate boards average 12 members.
B. About half of the directors are “outside” directors.
C. Only one-third of all companies have at least one woman on their board.
D. About 13 percent of board members are Latino.
The primary goal(s) of the Food and Drug Administration include:
A. Ensuring the safety and effectiveness of a wide range of consumer products.
B. Prohibiting unfair or deceptive advertising.
C. Reviewing and approving new products before they are released to consumers.
D. Both A and C, but not B.
Under what legal doctrine does a firm bear legal responsibility for injuries caused by
something it made or sold, whether or not it was negligent or breached a warranty?
A. Strict liability.
B. Product liability.
C. Consumer liability.
D. Supplier liability.
Since the mid-1950s the proportion of American workers represented by unions has:
A. Decreased.
B. Increased.
C. Remained about the same.
D. Grown only in the manufacturing sector.
Recipients of the corporate ethics awards show that:
A. Awards are based on economic power, not ethical performance.
B. Firms can be financially successful and ethically focused.
C. Being legally compliant results in receiving an ethics award.
D. Improving ethical performance is very costly, but bolsters a firm’s reputation.
An emerging business model that attempts to strategically balance the interests of all
stakeholders to solve social and environmental problems is called:
A. Balanced Corporation.
B. B Lab.
C. B Corporation.
D. CSR Corporation.
Which of the following statements is true about corporate social responsibility?
A. Businesses should monitor and prevent social problems in advance of their
becoming major issues.
B. A company should seek maximum profits from its operations in order to provide the
best for society.
C. Corporations should be accountable for any actions that affect people, their
communities, and the environment.
D. Both A and C, but not B.
Which civic need(s) does a community depend on businesses to provide through taxes
and monetary donations?
A. Schools.
B. Health care.
C. The arts.
D. All of the above.
Past decisions of the courts, the original basis for the U.S. legal system, are called:
A. Torts.
B. Amendments.
C. Legitimate actions.
D. Common laws.
Engaging interactively with stakeholders carries a number of potential benefits.
Discuss.
Answer:Answers may vary.
What is insider trading?
Give an example and explain why stakeholder materiality is important to both the
company and its stakeholders.
Answer:Answers may vary.
Three critical factors have combined to accelerate the ecological crisis facing the world
community and to make sustainable development more difficult. Explain and discuss
these three factors.
Answer:Answers may vary.
Describe two tactics used to promote each of the three types of corporate political
strategies.
Answer:Answers may vary.
The Gap, General Motors and Patagonia are presented as three examples of firms
capturing the extraordinary complexity of the business-supplier relationship. Identify
the major components of these examples as a model for other firms to follow in
managing its supplier stakeholder relationship.
Answer:Answers may vary.
Describe the activities and primary skills used in each of the six periods of technology
development.
Answer:Answers may vary.
Describe a current trend in corporate governance, providing a real example.
Answer:Answers may vary.
Discuss the social, ethical, and environmental issues that affect suppliers. Provide three
examples of suppliers that are currently raising concerns for their lead firms.
Answer:Answers may vary.
Discuss what factors have fueled technological growth and development.
Answer:Answers may vary.
How do the three types of corporate political strategies differ from each other?
Answer:
Answers may vary.
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?
Answer:
Answers may vary.
Income inequality has grown in the United States since the 1980s. In what ways do
businesses contribute to this trend? What, if anything, can businesses do to reduce
income inequality?
Answer:
Answers may vary.
In your opinion, what are the most pressing and significant concerns facing
communities today? Why do you think so? How would a business’ community relations
department address that concern?
Answer:
Answers may vary.