Business Ethics Midterm-Sanders

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Death Penalties
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Which of the following is not listed as a general issue involving social or ethical ramifications within the relationship between business and society.
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Business
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The collection of private, commercially oriented organizations, ranging in size from sole proprietorships to large corporations is referred to as:
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Geographic Location
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Which of the following characteristics of an industry does not add to the creation of visible and controversial social problems?
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Society
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A community, nation, or broad grouping of people having common traditions, values, institutions, and collective activities and interests is a:
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Interest Group
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A purposeful aggregation of people who represent a common cause or share common beliefs is called an:
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The Natural Environment
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Segments of business’s macro environment include all of the following except:
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Social Environment
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The demographics, lifestyles, and social values of a society determine the firm’s:
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Economic Environment
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Gross national product, inflation, interest rates, and unemployment rates are included in a finn’s:
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Political Environment
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The process by which laws are enacted and government officials are elected are a part of the:
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Technological Environment
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Technology-based advancements and progress in the applied sciences that help achieve a practical purpose is part of a firm’s:
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A Pluralistic Society
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Decentralization and diversity of power concentrations lead to:
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Pursuit of Self-interest
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Strengths of pluralism include all of the following except:
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Prevention of Concentrations of Power
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Which of the following is not a weakness of pluralism?
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Complexity
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The sheer numbers of relationships that business has with other segments of society indicate the of its social environment.
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A Special-interest Society
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Carrying the idea of a pluralistic society to an extreme leads to:
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Work at Cross-Purposes
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Because of the sheer member, and specificity of special interest groups, the groups often:
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Paper-View Programs
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Television raises our level of awareness about business in all of the following ways except:
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Corporations are seen as powerful, profit-seeking enterprises that have no redeeming values.
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Movies are a significant source of business criticism because:
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The Revolution of Rising Expectations
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The belief that each succeeding generation should have a higher standard of living that its predecessor and that major institutions should continually improve known as:
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A Social Problem
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A gap between society’s expectations of social conditions and the current social realities is recognized as:
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An Outgrowth of the Revolution of Rising Expectations:
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An entitlement mentality is:
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Victimization Philosophy
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This is a result of the growing numbers of individuals and groups who see themselves as having been victimized by society:
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Micro-level Power
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The business power wielded by an individual firm is known as:
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Individual
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CEOs such as Virginia Rometty or Tim Cook of Apple hold which level of power?
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Intermediate
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Which of the following is not a sphere of power indicated in the text?
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Social Contract
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The set of two-way understandings that characterize the relationships between major social institutions is called the:
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Power
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The ability to produce an effect or influence a situation is known as:
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The Institutional Level
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The levels of power include all of the following except:
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The Overall Corporate System
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The macro-level of business power resides in:
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Groups of Corporations Acting in Concert
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The intermediate level of business power is found in:
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Employment Contracts
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Which of the following is not an element of the social contract?
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Is “Inside” the Company, such as Employees and Owners
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An internal stakeholder is a person or group who:
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External Stakeholders
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The government, consumers, and members of the community are examples of:
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The Iron Law or Responsibility
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“In the long run, those who do not use power in a manner which society considers responsible will tend to lose it” is the description of:
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Big Business and Highly Visible Industries
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The examination of business and its relationship to society typically focuses on:
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Consumers
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The most important stakeholders of a business are typically its:
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Unintentional Power
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When a business affects the life of a member of the surrounding community without meaning to, the company has wielded?
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Ability to Survive and Thrive over the Long Term
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Sustainability, at a simple level, is about business’s:
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Seriously considering the impact of the company’s actions on society.
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The early definition of corporate social responsibility.
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Obligation and Accountability
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Corporate social responsibility emphasizes:
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The Marketplace
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The classical view of economics holds that a society can best determine its needs and wants through:
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The Classical Economic Model
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The traditional concept of business responsibility in the United States is based on:
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Legal Model
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The concept of business responsibility based on using laws to constrain business behavior is referred to as the:
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Stakeholder Model
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The concept of business responsibility that is based on concern for the various groups that are affected by a business is known as the:
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Owner Contra I
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Which of the following practices is not a modification of the classical economic model?
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Philanthropy
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The most efficient use of corporate wealth to benefit the public is though contribution to charity and other worthy causes which is called:
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Paternalism
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The fact that business leaders in the late 19th century felt they had to show the large corporations were a force for social good is an example of:
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Emphasizes Specific Issues
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The modern era of corporate social responsibility (from the 1950s to today)
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Social
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Which of the following is not one of the responsibilities in Carroll’s four-part definition of corporate social responsibility?
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Economic
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The part of corporate social responsibility that focuses on fair prices and profits is:
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Legal
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The part of corporate social responsibility that focuses on fulfilling the social contract by following the law is:
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Ethical
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The part of corporate social responsibility that focuses on activities and practices that are expected by society, but not codified into law, is:
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Philanthropic
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The part of corporate social responsibility that focuses on business’s voluntary activities which are not normally expected of a firm is:
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Pyramid of Corporate Social Responsibility
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The _____ portrays the concurrent fulfillment of the firm’s economic, legal, ethical and philanthropic responsibilities.
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Obey the Preferred Laws
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The socially responsible firm should strive to do all of the following except:
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Business did not create today’s social problems, so it should not be expected to solve them.
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All of the following are arguments commonly made against corporate social responsibility except:
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It is in business’s long range interest to be socially responsible
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The first and primary argument for corporate social responsibility is:
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Business is best equipped to handle social problems
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Which of the following is not an argument commonly used in favor to corporate social responsibility?
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Stakeholder Approach
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The book, The Civil Corporation, identifies four ways in which business firms respond to social pressures. Which of the following is not one of those?
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Access to Capital
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According to the Business Case for CSR, a reason companies are becoming more socially responsible is all of the following except:
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Corporate Social Responsiveness
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________ is depicted as an action-oriented variant of CSR.
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Global Competitiveness
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The argument against CSR focuses on the consequences of the requirements that business must internalize costs that it formerly passed on to society in the form of dirty air and unsafe products, the costs of which might necessitate raising prices.
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Funding Sources
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Which of the following is not a dimension of Carroll’s corporate social performance model?
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Providing answers to specific social problems
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Carroll’s corporate social performance model can be used in all of the ways listed below except:
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Fortune Magazine
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Which entity publishes annual “World’s Most Admired Companies” rankings?
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Makes above average financial returns
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Which of the following is not a characteristic of a socially responsibly company?
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Broad
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The view of corporate citizenship that embraces all that is implied in the concepts of social responsibility, responsiveness, and performance is the view.
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Corporate Community Relations
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The narrow view of corporate citizenship focuses solely on:
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Fewer Government Regulations
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Benefits to companies of good corporate citizenship include all of the following except:
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Socially Responsible Firms are more financially profitable.
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The relationship between corporate social performance and financial performance is viewed from three different perspectives. The most popular view is based on the belief that:
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Sustainability
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The Triple Bottom Line concept focuses on economic, social, and environmental performance, the key elements of:
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Competitive with returns from other investments
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Financial returns from socially conscious investment funds are:
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Stakeholder
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For sustainable development to become a reality, which approach offers the best opportunity for this to happen?
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Responsiveness
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Some authors indicate that the corporate model needs redefinition because of all of the following except:
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They will need to, in order to be successful in the long run.
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Business organizations must address the legitimate needs and expectations of stakeholders because:
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Every stockholder is a stakeholder
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Which of the following statements is accurate?
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Stake
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An interest or share in something is referred to as:
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Right
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Any type of stake can be viewed as:
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An Option
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Which of the following is not recognized as a type of stake?
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Production View
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The view of the firm that recognizes just suppliers and customers as stakeholders is the:
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Primary Social Stakeholders
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A group of people who holds a direct stake in the firm is known as:
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Secondary Social Stakeholders
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A group of people who is able to influence the firm, but does not hold a direct stake in is known as:
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Primary Nonsocial Stakeholder
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A nonhuman species (such a the spotted owl) that holds a direct stake in a firm is called:
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Secondary Nonsocial Stakeholders
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A group of people who represent the interests of a nonhuman species (such as the natural environment) and does not have a direct stake in the firm is known as:
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A Definitive Stakeholder
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If we consider the stakeholder typology, and the three attributes of power, group number seven in the very center is called:
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A non-stakeholder
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If we consider the stakeholder typology, and the three attributes of power, group number one on the top outside is called:
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A Dormant Stakeholder
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If we consider the stakeholder typology, and the three attributes of power, group number one on the top outside is called:
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Nationality
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Which one of the following is not an attribute upon which managers judge the importance of stakeholders?
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Legitimacy
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The perceived validity or appropriateness of a stakeholder’s claim is referred to as:
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Urgency
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The degree to which a stakeholder’s claim requires immediate response is its:
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Multi-fiduciary Approach
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The view of stakeholders that sees them as more than just people or groups who can wield economic or legal power is the:
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Defirmitive Stakeholders
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Stakeholders that are perceived to have high levels of power, legitimacy, and urgency are referred to as:
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Stakeholder Synthesis Approach
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The view of stakeholders that recognizes the firms responsibilities to all stakeholders, but sees them as separate types of groups, with different duties to each, depending on whether they have an ownership stake or not is called the:
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It is judgmental
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Which of the following is not seen as a value of the stakeholder model of the firm?
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Maintaining strong relations with governmental stakeholders
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The challenges of stakeholder management include all of the following except:
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To Lead
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Which of the following is not considered an important function of stakeholder management?
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What do our stakeholders want?
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Which of the following is not listed as a question to ask in order to gain essential information needed for stakeholder management?
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Supportive
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Stakeholders who have a high potential for cooperation and a low for potential for threat to the firm are known as _________ stakeholders.
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Defend against them
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The recommended strategy for non-supportive stakeholders is to:
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Managers are not trained in this type of management
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Which of the following is not a valid criticism of stakeholder management?
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The transactional level
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Stakeholder management capability is thought of in three levels. Which is considered the highest level?
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Stakeholder Symbiosis
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Recognition that all stakeholders depend on each other for their success and financial well-being is a concept known as:
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Collaborate or Participate
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Which of the following is not a strategy or action alternative in best addressing stakeholders?
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Setting goals for stakeholders inclusion
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Which of the following is not a strategic step toward successful stakeholder management?
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Legitimation
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The dynamic process by which business seeks to perpetuate its acceptance is called:
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Individual Businesses
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The micro-level of legitimacy refers to achieving and maintaining by conforming to society expectations for:
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Business as a whole
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The macro level of legitimacy refers to the achievement and maintenance of legitimacy by:
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A company may seek to avoid detection that it is operating contrary to social norms
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Which of the following is not a method of obtaining the micro level of legitimacy?
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Corporate governance
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The method by which a firm is being governed, directed, administered, or controlled is:
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Charter
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The state-issued document that grants the corporation’s right to exist and stipulating the basic terms of its existence is an:
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Owners of the corporation
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Shareholders are:
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Board of directors
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The group that is elected by shareholders to govern and oversee management is the:
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Management
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The people hired by the board to run the company and operate it on a daily basis is:
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Do the actual work of operating the company
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Employees are the people hired by the company to:
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The proxy process
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The method by which shareholders elect boards of directors is known as:
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Agency Problem
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When the interests of management and owners are not aligned, there will likely be an:
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Reducing executive pay
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Boards have recently improved in all of the following ways except:
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Inside Directors
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Directors who have some sort of ties to the firm are termed:
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Outside Directors
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Directors who have no ties to the firm other than membership on the board are called:
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209 to 1
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Executive Excess reports that in 2011 the ratio of CEO pay to average workers’ pay was:
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The say on pay movement
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First began with regulations including a requirement to put a remuneration report to a shareholder vote.
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Clawback provisions
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Compensation recovery mechanisms that enable a company to recoup compensation funds is called:
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Being obsessed with self-preservation instead of making optimal decisions on behalf of shareholders
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A major criticism of CEOs and boards during the 1980s when corporate takeovers were regular occurrences, was:
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A poison pill
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A shareholder right plan aimed at discouraging or preventing a hostile takeover is known as:
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A golden parachute
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A contract in which a corporation agrees to make payments to key officers in the event of a change in the control of the corporation is called:
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The covered executives are given an incentive to run the company poorly.
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Which of the following is not an argument against the use of the golden parachute?
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Insider trading
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The practice of obtaining critical information from within a company and then using that information for ones own financial gain is:
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Limit the common practice of selective disclosure
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The securities and exchange commissions regulation FD is designed to:
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Selective Disclosure
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Companies that elected to provide meaningful information to shareholders and securities professionals without also informing small investors were practicing:
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Directors may be sued for breach of fiduciary duty
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Personal liability for corporate board member means that:
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Provide better protection for investors in public companies by improving the financial reporting of these companies
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The primary purpose of the Sarbanes-Oxley Act
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Stock price increases
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Which of the following is not on the ranking of red flags that signal board problems?
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Experience than title
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A new trend in board recruiting focuses more on:
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Audit committee
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The board committee responsible for assessing the adequacy of internal control systems and the integrity of financial statements is the:
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Ensure that published financial statements are not misleading
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The principle responsibilities of the audit committee are to:
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Seeking outside help in identifying potential risks
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Which of the following is a step to board repair?
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Nominating Committee
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The board committee that has the primary responsibility of ensuring that competent, objective directors are selected is:
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Evaluating executive performance and recommending terms and conditions of employment
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The board’s compensation committee has responsibility for:
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Public policy committee
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The board committee that is responsible for responding to social issues is the:
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Increasing diversity on boards
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Boards are now being tougher on CEOs for all of the following except:
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Has been around for more than sixty years
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Shareholders activism:
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Shareholder Resolutions
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One of the main ways in which shareholder activists communicate their concerns to management is through:
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Both full disclosure and transparency
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The fact that company information should be made at regular and frequent intervals and should contain information that might affect the investment decisions of shareholders is contained in the concept of:
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Corporate Social Performance
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Which of the following terms does not have the same basic meaning?
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A firm must give specific attention to issues in which basic questions of right, wrong, justice, fairness, or public policy reside
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The main idea behind corporate public policy is that:
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Ethics to strategy
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The concept of enterprise-level strategy is the idea that best links:
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Department-level
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Which of the following is not one of the levels of strategy mentioned in the textbook?
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Enterprise
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The overarching strategy level that asks what role the firm plays in society and what the firm stands for is the ________ level.
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Corporate
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The strategy level that asks what business the firm should be in is the _______level.
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Business-level
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________ strategy seeks to determine how a firm should compete in a given industry.
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Functional
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______ level strategy attempts to integrate the Finn’s activities to accomplish its goals.
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Role in society
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The enterprise-level strategy may addresses the firms:
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Broad or narrow markets
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Corporate-level strategy decisions include all of the following except:
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The extent to which a firm has studied its functional structure and made changes necessary to make its operations more efficient.
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All of the following represent examples of enterprise-level thinking except:
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Core values
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The deeply ingrained principles that guide all of a company’s actions and decisions are the firm’s:
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Problem identification
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Which of the following is not one of the steps in the strategic management process?
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Environmental Analysis
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Which of the following steps in the strategic management process informs all the rest?
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Revising budgets
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Management control includes all of the following steps except?
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Social audit
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A systematic attempt to identify, measure, monitor, and evaluate a Finn’s performance with respect to its social efforts, goals, and programs is a:
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Social impact statement
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Which of the following terms does not refer to the same thing?
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Planning and control system
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A social audit can be thought of as:
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Societal and public interest groups expectations
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The impetus of social performance reports has come from:
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With their competitive positions
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Social performance reports help companies:
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Planning
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Issues management and crisis management are ________ processes in corporate public policy.
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Political lobbying
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Public affairs management encompasses all of the following processes except:
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Increased pressure to meet quarterly earnings projections
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Which of the following is not a reason that the public affairs function grew in stature in the United States?
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Marketing
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Which of the following did not contribute to the development of the public affairs function?
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As one of many publics
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Public relations deals with government
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Strategic affairs analysis
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Planning for the turbulent social ethical stakeholder environment encompasses each of the following except:
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Corporate public affairs
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The management function responsible for monitoring and managing the business environment is:
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Government relations
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Which of the following activities is a major function in corporate public affairs?
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Smooth relationships with external stakeholders
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The “product” of the public affairs department is:
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The CEO
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The chief public affairs officer of the firm should likely be:
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Strong
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A 2012 study showed that public affairs relationships with senior management were:
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The static nature of the political system
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The growth of Public Affairs in the US has grown for all of these reasons except:
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Strategic management
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The overall management process that strives to identify corporate purpose and to position a Finn relative to its market environment is:
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The lack of any standardized measures
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One of the major impediments to the advancement of effective sustainability reporting has been:
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Public advertising
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Public affairs activities and functions include all of the following except:
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Actively seek out stakeholders and work cooperatively with them
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Value-based enterprises:
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Will become a bridge between strategic management and corporate social performance
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In the future, the public affairs function:
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The social activism begun decades ago
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The public affairs function as we know it today was an outgrowth of:
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Improving stakeholder management
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The issues management process are both focused on:
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To increase the organization’s social responsiveness to stakeholders
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The ultimate objective of issues and crisis management is:
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Eliminating issues
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Which of the following is not an element of the issues management process?
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Issues are legitimate and urgent stakeholder concerns
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The conventional approach to issues management includes all of the following except:
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Issues management is narrowly focused on public policy issues
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Which of the following is not a characteristic of the strategic management approach to issues management?
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How broadly the idea of issues in conceived to be.
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The principal distinction between the conventional and strategic management approaches to issues management is?
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At what level of the Finn issues identification takes place
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Which of the following is not a feature that distinguishes the conventional approach to issues management approach?
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Financial
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Which of the following issues have always been part of the business process?
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Social, ethical, and political
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The most dramatic growth in importance of issues has been in ________ issues.
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Portfolio approach
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The approach to issues management in which each issues is viewed as separate from all others is the:
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Prioritize issues
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One of the benefits of the portfolio approach is that it helps:
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Resolve
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Once an issue becomes public and subject to debate and media exposure, it becomes more difficult to:
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Trade-offs are not yet needed
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Emerging issues have all of the following characteristics except:
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Personal stakes
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When managers consider issues that affect their firm, they often ignore:
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Issues are so complex that firms have little chance to resolve them favorably
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Which of the following is not an assumption we make when we use issues management?
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Planning and implementation
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Which of the following is not an assumption we make when we use issues management?
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Monitoring
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Planning aspects of the issues management process include all of the following except:
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Formulation of responses
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The implementation phase of the issues management process does not include:
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Environmental Scanning
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One thing that is common to all techniques used for identification of issues is:
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Assigning a member of the organization to continuously scan a variety of publications
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The most rudimentary form of issue identification entails:
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Publication of an in-house newsletter that is disturbed throughout the company.
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The immediate result of environmental scanning is often:
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Leading crisis
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All of the following are predictors of social change except:
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The terms of the debate are clearly defined
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An emerging issues is characterized by all of the following except:
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Leading economic indicators
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Which of the following is not one of Molitor’s leading forces?
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Getting the people who are confronted with new issues in touch with top managers
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The most important thing in issue identification is:
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Who can best afford to resolve the issue?
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Key questions proposed to use in analyzing issues includes all of the following except:
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How much impact will it have
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Questions and dimensions can be used to rank or prioritize issues. Which of the following is not included?
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Assigning the issues management function to a team, usually within the public affairs department.
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The next stage of formalization beyond having a single person managing issues is:
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Continual control of responses to ensure that they remain on track
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The evaluation, monitoring, and control of issues involves:
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Resolution
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Which of the following is not a stage in the issues development process?
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Public affairs departments
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Issues management today can be considered a subset of the activities of:
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Better reputations
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Companies that adopt issues management processes typically develop:
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Felt need stage
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The best stage at which to address a developing issue is at the:
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Johnson & Johnson/Tylenol case
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The case that is generally agreed to have “made” crisis management is the:
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Issuing a statement
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When Tiger Woods crashed his Cadillac Escalade into a fire hydrant and a tree, he made several errors in managing that crisis. Which of the following is not one of his mistakes?
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Crisis regulation stage
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Which one of the following is not one of the four stages of a crisis?
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The goal of crisis management
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The crisis resolution stage is:
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Keep arm’s length from your audience
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All of the following are part of the ten steps of crisis communication except:
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Walmart and Home Depot
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The companies that stood out for their excellent handling of the hurricane Katrina crisis in 2005 were:
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Building company assets
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The Enron Era brought about a broad range of legal and ethical charges that include all of the following except:
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Ethical lending
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The Wall Street financial scandals involved all of the following except:
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At work was down slightly
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An NBES Survey concluded that ethical misconduct:
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Reporting ethical problems more frequently and fervently
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There is no doubt that media are:
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Difficult to assess because the media keeps ethics scandals in the public eye
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Public opinion polls regarding business ethics are:
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The contexts in which corporate decisions are made
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The former CEO of Bendix Corporation blames the apparent decline in business’s ethical behavior on:
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Oversight of senior managers
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One of the functions of corporate governance is:
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Ethics
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The discipline that deals with what is good and bad and with moral duty and obligation is:
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Morality
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A doctrine or system of moral conduct is called:
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Concerned with right and wrong behavior within a business contract
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Business ethics is:
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Equality
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Concepts of right and wrong are increasingly being interpreted today to include all of the following except:
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Normative Ethics
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The area of ethics that is concerned with supplying and justifying a coherent moral system of thinking and judging is called:
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Rights and duties approach
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Which of the following is not one of the major approaches to thinking about business ethics:
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Learning what is occurring in the realm of moral behaviors and practices
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The focus on descriptive ethics is on:
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Conventional Approach
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The approach to business ethics in which we compare a decision or practice to prevailing norms of acceptability is the:
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Adhering to the law
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The minimum standard of ethical behavior can be thought of as:
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Awareness of the moral implications of a situation
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Which of the following is not an element of making ethical judgements?
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Lasping into ethical relativism
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The most serious danger of using the conventional approach to business ethics is:
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What happened?
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All of the following are questions that capture the central meaning of ethics except?
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What ought to be?
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The normative question of ethics is a what is?
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Practical
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The ethics question “how do we get from what is to what ought to be?” is:
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A balance
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The challenge in all managerial situations is take what can be done and what should be done and find:
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Semi-moral management
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Which of the following is not a model of ethical management provided in the textbook?
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Immoral management
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The model of ethical management that implies a positive and active opposition to what is right is called:
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Can we make money in this action?
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The key operating question of amoral management is:
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Moral management model
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The “integrity strategy” espoused by Lynn Sharp Paine is similar to the:
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Intentional amoral management model
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Managers who believe that business decisions are not subjected to moral constraints tend to utilize the:
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Unintentional amoral management model
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Managers who simply fail to consider moral questions when making business decisions use the:
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Ambivalence
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Which of the following is not a structural aspect of unconscious accounting bias?
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The three models exhibit a skewed curve, weighted toward either moral or immoral management models, depending on the society being studies.
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The population hypothesis regarding ethical management models is:
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That individuals managers utilize all three of the models at different times and situations
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The individual hypothesis regarding ethical management models is:
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Law and order morality
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Lawrence Kolhberg’s model of moral development includes all of the following except:
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Scientific
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Which of the following is not a source of manager’s values that is external to the firm?
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Awareness of the moral implications of a situation
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Difficult to assess because the media keeps ethics scandals in the public eye
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Moral obligation
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The sense that concern for fairness, justice, and due process to people, groups, and communities should be woven into managerial decision-making is called:
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Being able to see economic and moral relationships
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Moral imagination is:
question

Managerial Competence
answer

An element of moral judgment is all of the following except:
question

Managerial Competence
answer

An element of moral judgment is all of the following except:
question

Managerial Competence
answer

An element of moral judgment is all of the following except:

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