Deck 10: Regulating Business Ethics and Responsibilities

Question 1

There are specific downsides to business being involved in politics.These downsides include all of the following,except:

A)Corporations permit employees to be involved in political activities without restriction.
B)Involvement may be perceived as bias
C)Conflicts of interest exist
D)Firms already have too much power
E)Businesses are not neutral

Answer 1

A

Question 2

Criticism of lobbying relates to all of the following reasons,except:

A)It offsets the influences of other groups
B)Costs of lobbying is passed on to consumers
C)It is a distasteful activity
D)Lobbyists present one-sided views
E)Lobbyists have unequal access to government

Answer 2

A

Question 3

Frank Nikomo is a former school teacher who developed a strong reputation nation-wide for his ability to reach youth with gang involvement.Frank has decided to leave retirement and offers his expertise to various teaching associations,such as the
Newfoundland and Labrador Teachers' Association,to help them lobby for funds to support social initiatives in schools.This is an exemplar of which type of business lobbyist?

A)Business interest group
B)Executive director
C)Consultant
D)Industry
E)Chief advocate

Answer 3

C

Question 4

Corruption of Canadian public officials was covered under the_______ until 1999.

A)Sarbanes-Oxley (2002)
B)Criminal Code of Canada
C)NAFTA
D)Integrity Framework
E)Corruption of Foreign Public Officials Act (CFPOA)

Question 5

In which of the following ways is business involved in politics?

A)Public expression of views on political issues
B)Business executives running for public office
C)Financing political parties
D)Public support of a candidate
E)All of the above

Question 6

The BP oil disaster in the Gulf of Mexico led to:

A)demands for greater regulation in the petroleum industry
B)the prosecution and conviction of BP executives
C)exhaustive lobbying for more relaxed environmental standards
D)an amoral CSR program at BP Oil
E)higher corporate taxation in the petroleum industry

Question 7

Privatization can take many forms.These forms include all of the following,except:

A)Divestiture
B)Monopoly franchise
C)Bailouts
D)Management contracts
E)Contracting out

Question 8

Which of the following arguments suggests business should stay out of politics?

A)Politics should be left to politicians,and business should be publicly neutral.
B)Business is already accused of exerting too much power in society,and the involvement of businesspersons in politics could upset the pluralistic balance in society.
C)Businesspersons are not necessarily qualified to deal with many of the social issues the government must address.
D)Business involvement might also be interpreted as being biased,thus having an adverse effect on customers or shareholders,or conflicts of interest might exist.
E)All of the above.

Question 9

The University of Toronto is evaluating its policies and procedures regarding campus safety.It decides to form a committee drawing on students,faculty members,local community members,and government to draft the policy.This is an example of which form of regulatory practice?

A)Laissez-faire market
B)Self-regulation involving stakeholders
C)Corporate self-discipline
D)Negotiated self-regulation
E)Industry

Question 10

Morality has been legislated through the legal system.Such laws include all of the following,except:

A)Conducting business with corrupt foreign regimes
B)Dishonest business practices
C)Corporate business responsibility
D)Preventing monopolistic behaviour
E)Employee health and safety

Question 11

In theory,the regulation of the economy and the business enterprise system should be done by the forces or influences of the marketplace.In practice this is not the way it works,and a mechanism is required to:

A)control monopoly and oligopoly powers
B)increase efficiency in production
C)control the transfer of income from consumers to producers
D)All of the above
E)None of the above

Question 12

Which of the following is not an argument against corporate involvement in politics?

A)Business has too much power already
B)Businesses are biased
C)Businesspersons are not necessarily qualified to deal with social issues
D)Business should be publicly neutral
E)Businesses are taxpayers

Question 13

The scope of government in society includes which of the following?

A)Government is a major promoter and subsidizer of business.
B)Government is a major purchaser of goods and services provided by business.
C)Government is a provider of financial capital through loans and grants.
D)Government is a rescuer of failed business corporations.
E)All of these roles accurately reflect the scope of government in society.

Question 14

Corporations wishing to do business with the Government must certify that they:

A)have never lobbied against the government.
B)have not been charged with any of the offences anywhere in the world in the past ten years.
C)have never evaded,or attempted to evade,their tax obligations with the CRA.
D)have never been disbarred under NAFTA.
E)have never faced legal proceedings involving corruption allegations.

Question 15

Some toy companies,in response to a recent concern regarding product safety,are posting notices in their stores that all the products they sell have been tested for lead content.Not all the stores making this claim,however,are actually testing the toys.A consumer reports one such store for a violation of the Canadian Code of Advertising Standards.The Code is an example of which form of regulatory practice?

A)Negotiated self-regulation
B)Laissez-faire market
C)Corporate self-discipline
D)Industry
E)Quasi-government regulation

Question 16

There are significant implications regarding business-government relationships.Which of the following is not an implication?

A)Larger corporations have more access to government than smaller firms.
B)Government interference in the operation of businesses.
C)Lack of accountability between federal government and business regarding secret donations to political candidates.
D)Improper awarding of contracts.
E)Lack of transparency in the relationship.

Question 17

The Canadian Radio-Television Telecommunications Commissions exemplifies which form of regulation?

A)Self-regulation
B)Industry regulation
C)Mandated regulation
D)Negotiated regulation
E)Government-sponsored regulation

Question 18

Self-regulation refers to regulatory forces that are imposed and enforced by:

A)the government
B)professional associations
C)the corporation
D)market forces
E)the business community

Question 19

The four areas in which the government has a major influence on business ethics and responsibilities include all of the following,except:

A)by protecting the interests of business
B)by using regulation to manage large areas of business activity
C)by protecting the interests of various stakeholders
D)by prescribing legal rules of conduct
E)by implementing tariff and non-tariff barriers to trade

Question 20

Business involvement in politics takes all the following forms,except:

A)Executives running for office.
B)Public expressed of support for a candidate.
C)Publically expressed views on political issues.
D)Support of candidates of a foreign regime.
E)Financing of political parties.

Question 21

Democratic capitalist countries rely exclusively on market forces to regulate business practices.

Question 22

Self-regulation is the regulatory form imposed on business by the corporation itself,industry,and/or market forces.

Question 23

The Employment Insurance program,operated by the Federal Government,is designed to balance the premium revenues with the actual costs of the program.This priority is an example of which form of privatization?

A)Sale of government-owned enterprise.
B)Privatization of the financing of services that continue to be produced by the public sector.
C)Privatization of the provision of a service that continues to be financed by the public sector out of government revenues.
D)Load shedding.
E)Liberalization of public policy.

Question 24

Self-regulation is more likely to be accepted because it is voluntarily developed and adapted.

Question 25

Businesses,not government,are the architects of economic growth.

Question 26

The government as a protector of business interest can be seen in the tariff and non-tariff barriers that exist to shield Canadian industry from foreign competition.

Question 27

Doing business with the government is sometimes conducted in an inappropriate manner.

Question 28

The organic food industry in Canada has an obligation to protect the interest of its consumers.This form of regulation is:

A)Negotiated self-regulation
B)Industry
C)Corporate self-discipline
D)Laissez-faire market
E)Self-regulation involving stakeholders

Question 29

Self-regulation is criticized because it impairs business competition and innovation due to self-serving restraint by industry participants.

Question 30

One form of privatization is the monopoly franchise.

Question 31

Corporations wishing to do business with the Government must certify that they and any affiliates have not been charged with any of the offences anywhere in the world in the past ten years.

Question 32

The presence of the Canada Post outlet in the local drugstore is very convenient for Mary.Previously,she would have to travel several times a week to the government-operated post office,which was located in a different part of her community.When the government announced that it would franchise out postal services,she had been concerned that she would be paying the businesses user fees,but her costs
For mailing product have not changed at all.The franchising of postal outlets is an example of which form of privatization?

A)Privatization of the financing of services that continue to be produced by the public sector.
B)Privatization of the provision of a service that continues to be financed by the public sector out of government revenues.
C)Sale of government-owned enterprise.
D)Load shedding.
E)Liberalization of public policy.

Question 33

Corporations wishing to do business with the Government must certify that they and any affiliates have not been charged with any of the offences anywhere in the world in the past ten years.

Question 34

The demand for increasing legislation increases following a business scandal.

Question 35

In a highly competitive marketplace,market forces serve to regulate business practice no regulation is necessary.

Question 36

In 2000,the Government of Canada introduced its Integrity Framework to deal with the lack of action on this issue.

Question 37

Many government-owned enterprises have been sold or dissolved as governments
became disillusioned with their operation or concluded the private sector could operate such corporations more effectively.

Question 38

Businesspersons and organizations are often critical of what they perceive to be costly and inappropriate social programs directed at individuals.On the other hand,businesses rarely turn down tax incentives and loan guarantees that enable them to lower costs and increase their returns to shareholders.The term _______ is derogatively applied to businesses that accept such financial offerings from government.

A)load shedding
B)corporate evader
C)corporate welfare
D)corporate agenda
E)social welfare

Question 39

The corporate agenda includes all of the following,except:

A)Reduction of government expenditures
B)Increased trade barriers to protect Canadian business
C)Reduced corporate taxation
D)Weakening union's right to organize
E)Decreased government involvement in the economy

Question 40

The taxi industry is one of the most regulated in Canada.

Question 41

One type of lobbyist is a consultant who specializes in government-business relations and is paid by a corporation,a group of corporations,or a business association to make contact with government,or to tell business how to influence government.

Question 42

Corporate agenda refers to an organization's procedures and protocols for corporate public relations.

Question 43

The corporate tax rate for corporations has been lowered and is now perceived to be lower than the rate paid by individuals.

Question 44

Corporate welfare is any action by municipal,provincial,or federal governments that gives a specific corporation or an entire industry a benefit not offered to others.

Question 45

The Alberta Teachers' Association cannot be considered a lobby group as they are not a for-profit enterprise.

Question 46

The corporate agenda sometimes involves the weakening of unions and workers' right to organize.

Question 47

It is argued that politics should be left to politicians,and business should be publicly neutral.

Question 48

It is argued that Canadian business is very involved and influential in politics and is portrayed as having powerful influences on public policy without much accountability.

Question 49

Businesses are increasingly willing to accept corporate welfare.

Question 50

The Kimberly Process (2000)refers to the involvement of the Canadian government in
the mining of gold in Canada to prevent the abuse of women and children working in the mines.

Question 51

Corporate lobbying is seen by many as an undesirable activity.

Question 52

In-house lobbying capability is often referred to as government relations or public affairs staff.

Question 53

The British Petroleum disaster in the Gulf of Mexico led to demands for weaker government regulation in the petroleum industry.

Question 54

Many Canadians believe that large corporations and high income individuals pay too much in taxes.

Question 55

A federal government policy has facilitated tax compliance through its signing of tax information exchange agreements (TIERs)which enabled countries to exchange information about taxpayers.

Question 56

Business lobbying has grown in frequency and power over recent years.

Question 57

The integration of corporate social responsibility (CSR)into business practice is a form of self-regulation.

Question 58

Prior to an upcoming federal election in Canada,a provincial level newspaper is considering whether or not they should publicly endorse the Conservative Party of
Canada.They know that such endorsement is a more direct way to influence policy than through lobbying activities.

Question 59

Businesses are not legally permitted to finance political parties in Canada.

Question 60

CSR is criticized as failing to live up to its promise; some corporations have been accused of participating only for appearances or on a token basis.

Question 61

List some of the criticisms of government regulation.

Question 62

Why is the partnership between the federal government's Canadian International Development Agency (CIDA)and IAMGOLD Corporation and Plan Canada (a private aid NGO)to implement a social responsibility project in Burkina Faso controversial?

Question 63

Businesspersons advocate for self-regulation.Why?

Question 64

How does the trend toward privatization provide opportunities for business?

Question 65

Why are some people so critical of lobbying?

Question 66

Discuss the degree and influence of Canadian business in politics.

Question 67

What types of corruption are covered under the Corruption of Foreign Public Officials Act (CFPOA)?

Question 68

Compare privatization to deregulation.

Question 69

Outline the major components of a corporate agenda?