Business Ethics Flashcards

question
Walmart has been called a "template for 21st century capitalism."
answer
False
question
A business is any organization that is engaged in making a product or providing a service for a profit.
answer
True
question
Businesses and society are independent of one another.
answer
False
question
The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.
answer
False
question
The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.
answer
True
question
The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.
answer
False
question
Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.
answer
False
question
Market stakeholders include nongovernmental organizations and the media.
answer
False
question
Government can be considered both a market and nonmarket stakeholder.
answer
True
question
The interests of different stakeholders often coincide.
answer
True
question
Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.
answer
True
question
Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
answer
False
question
Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society.
answer
False
question
A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed.
answer
True
question
The external environment of business is static.
answer
False
question
Which statement is not correct about the business-society interdependence?
answer
Actions by governments rarely significantly affect business.
question
Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory?
answer
All of the Above: -An industrial company installs new equipment in its plant to comply with environmental regulations. -A software company develops an application for a client. - A purchasing department employee negotiates a price on parts from a supplier.
question
Which of the following is the result of an inseparable relationship between business and society?
answer
Both A & B: - All business decisions have a social impact. - The vitality of business depends on society's actions and attitudes.
question
Which of the following statements is not true about the interactive social system?
answer
The boundary between business and society is clear and distinct.
question
A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
answer
Shareholders.
question
Corporations that run their operations according to the stakeholder theory of the firm create value by:
answer
All of the Above: - Innovating new products - Increasing their stock price. - Developing their employees' professional skills.
question
Which argument says that stakeholder management realistically depicts how companies really work?
answer
Descriptive argument.
question
The instrumental argument says stakeholder management is:
answer
More effective as a corporate strategy
question
The fiduciary duty of managers benefits a firm's:
answer
All of the Above: - Stockholders. - Customers. - Employees.
question
A number of European countries require public companies to include employee members on their boards of directors, so:
answer
That their interests will be explicitly represented.
question
Stakeholder groups can include:
answer
All of the Above: -Stockholders -The Media - Environmental Activist
question
Which one of the following is considered to be a nonmarket stakeholder of business?
answer
Media
question
Which of the following is not considered to be a nonmarket stakeholder?
answer
Creditors
question
All of the following are external stakeholders of the firm except:
answer
Managers
question
The phenomenon of a person or group holding multiple stakeholder duties is referred to as:
answer
Role Sets
question
A stakeholder analysis:
answer
Involves understanding the nature of stakeholder interests
question
The five types of stakeholders' power recognized by most experts are:
answer
Voting, economic, political, legal, and informational power
question
Which of the following statements is (are) correct about stakeholders' power?
answer
All of the Above: - Different stakeholders have different types and degrees of power. - Stockholders' voting power is limited to the percentage of stock owned by the stockholder. - It uses resources to achieve a desired decision or outcome.
question
Customers can exercise economic stakeholder power by:
answer
Boycotting products if they believe the goods are too expensive.
question
Which of the following is not an example of stakeholders' economic power?
answer
A social group protests a government's decision to raise taxes.
question
When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's:
answer
Legal Power
question
What stakeholder group(s) can exercise legal power?
answer
All of the Above: -Employees -Customers -Shareholders
question
What kind of power might a local community use to influence a company's decisions?
answer
All of the Above: - Publicizing an issue. - Lobbying government policy makers for regulations. - Challenging whether a business activity should continue to operate.
question
With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:
answer
Informational Power
question
Stakeholders have been able to form international coalitions more successfully through use of:
answer
Communications Technology
question
When something stands out from a background, is seen as important, or draws attention it is:
answer
Salient
question
Stakeholders stand out to managers when they exhibit:
answer
Power, legitimacy, and urgency
question
A stakeholder map is a useful tool because:
answer
Both A &B: - It enables mangers to see quickly how stakeholders feel about an issue. - It allows managers to evaluate what outcomes are likely regarding an issue.
question
Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:
answer
Boundary-spanning departments.
question
Interactions between business and society occur:
answer
Within a finite natural ecosystem.
question
Interactions between business and society occur:
answer
Within a finite natural ecosystem.
question
Interactions between business and society occur:
answer
Within a finite natural ecosystem.
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question
Walmart has been called a "template for 21st century capitalism."
answer
False
question
A business is any organization that is engaged in making a product or providing a service for a profit.
answer
True
question
Businesses and society are independent of one another.
answer
False
question
The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.
answer
False
question
The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.
answer
True
question
The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.
answer
False
question
Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.
answer
False
question
Market stakeholders include nongovernmental organizations and the media.
answer
False
question
Government can be considered both a market and nonmarket stakeholder.
answer
True
question
The interests of different stakeholders often coincide.
answer
True
question
Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.
answer
True
question
Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
answer
False
question
Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society.
answer
False
question
A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed.
answer
True
question
The external environment of business is static.
answer
False
question
Which statement is not correct about the business-society interdependence?
answer
Actions by governments rarely significantly affect business.
question
Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory?
answer
All of the Above: -An industrial company installs new equipment in its plant to comply with environmental regulations. -A software company develops an application for a client. - A purchasing department employee negotiates a price on parts from a supplier.
question
Which of the following is the result of an inseparable relationship between business and society?
answer
Both A & B: - All business decisions have a social impact. - The vitality of business depends on society's actions and attitudes.
question
Which of the following statements is not true about the interactive social system?
answer
The boundary between business and society is clear and distinct.
question
A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
answer
Shareholders.
question
Corporations that run their operations according to the stakeholder theory of the firm create value by:
answer
All of the Above: - Innovating new products - Increasing their stock price. - Developing their employees' professional skills.
question
Which argument says that stakeholder management realistically depicts how companies really work?
answer
Descriptive argument.
question
The instrumental argument says stakeholder management is:
answer
More effective as a corporate strategy
question
The fiduciary duty of managers benefits a firm's:
answer
All of the Above: - Stockholders. - Customers. - Employees.
question
A number of European countries require public companies to include employee members on their boards of directors, so:
answer
That their interests will be explicitly represented.
question
Stakeholder groups can include:
answer
All of the Above: -Stockholders -The Media - Environmental Activist
question
Which one of the following is considered to be a nonmarket stakeholder of business?
answer
Media
question
Which of the following is not considered to be a nonmarket stakeholder?
answer
Creditors
question
All of the following are external stakeholders of the firm except:
answer
Managers
question
The phenomenon of a person or group holding multiple stakeholder duties is referred to as:
answer
Role Sets
question
A stakeholder analysis:
answer
Involves understanding the nature of stakeholder interests
question
The five types of stakeholders' power recognized by most experts are:
answer
Voting, economic, political, legal, and informational power
question
Which of the following statements is (are) correct about stakeholders' power?
answer
All of the Above: - Different stakeholders have different types and degrees of power. - Stockholders' voting power is limited to the percentage of stock owned by the stockholder. - It uses resources to achieve a desired decision or outcome.
question
Customers can exercise economic stakeholder power by:
answer
Boycotting products if they believe the goods are too expensive.
question
Which of the following is not an example of stakeholders' economic power?
answer
A social group protests a government's decision to raise taxes.
question
When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's:
answer
Legal Power
question
What stakeholder group(s) can exercise legal power?
answer
All of the Above: -Employees -Customers -Shareholders
question
What kind of power might a local community use to influence a company's decisions?
answer
All of the Above: - Publicizing an issue. - Lobbying government policy makers for regulations. - Challenging whether a business activity should continue to operate.
question
With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:
answer
Informational Power
question
Stakeholders have been able to form international coalitions more successfully through use of:
answer
Communications Technology
question
When something stands out from a background, is seen as important, or draws attention it is:
answer
Salient
question
Stakeholders stand out to managers when they exhibit:
answer
Power, legitimacy, and urgency
question
A stakeholder map is a useful tool because:
answer
Both A &B: - It enables mangers to see quickly how stakeholders feel about an issue. - It allows managers to evaluate what outcomes are likely regarding an issue.
question
Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:
answer
Boundary-spanning departments.
question
Interactions between business and society occur:
answer
Within a finite natural ecosystem.
question
Interactions between business and society occur:
answer
Within a finite natural ecosystem.
question
Interactions between business and society occur:
answer
Within a finite natural ecosystem.
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