Deck 3: Business, Stakeholders, Social Responsibility, and Sustainability

Question 1

Michael Novak believes imposing socialist or aristocratic ideals on business is destructive.

Answer 1

True

Question 2

Suppliers are not stakeholders in the corporation.

Answer 2

False

Question 3

Milton Friedman supports social spending by businesses if they can show a benefit to the shareholders.

Answer 3

True

Question 4

Michael Novak's "seven plus seven" responsibilities of a corporation relate to the social responsibilities of a corporation.

Question 5

R. Edward Freeman is a proponent of the stakeholder theory of the corporation.

Question 6

Stakeholders include employees and customers.

Question 7

Halfon and Friedman are in agreement on the social responsibility of a corporation.

Question 8

Decisions on corporate charitable contributions carry no ethical implications.

Question 9

Outsourcing manufacturing jobs from the United States to developing countries is an example of a utilitarianism application.

Question 10

A decision not to sell realistic-looking toy guns is an example of an ethical choice not mandated by law.

Question 11

Michael Novak does not believe businesses have external responsibilities.

Question 12

Novak equated stakeholder theory with serfdom.

Question 13

Freeman's stakeholder theory is grounded in ethical egoism.

Question 14

Robert Halfon is a proponent of stakeholder theory of the corporation.

Question 15

Robert Halfon sees activist movements as a threat to corporate property rights.

Question 16

Michael Novak believes corporations' role in society is the same as the role of nonprofit organizations.

Question 17

Employment contracts have an implied morals clause.

Question 18

Halfon and Freeman are in agreement on the basics of stakeholder theory.

Question 19

Michael Novak has seven internal responsibilities of business.

Question 20

Tocqueville was a proponent of socialism.

Question 21

Once begun, the regulatory cycle cannot be reversed.

Question 22

What group sold its Time Warner stock following the Ice-Body Count CD release?

A) NOW
B) NEA
C) Philadelphia municipal pension fund
D) Madonna

Question 23

Which of the following is not a principle in Kelly's economic democracy?

A) Enlightenment
B) Equality
C) Privilege
D) Evolution
E) All of the above are principles of economic democracy

Question 24

Who said, "I don't think that people in the media can say that advertising influences consumers to buy cars or shirts, and then argue that violence on television or in music has no impact"?

A) President Bush
B) Charlton Heston
C) CEO of Nicole Miller
D) David Geffen

Question 25

Who said, "Shareholder primacy is the wrench in the gears of evolution"?

A) R. Edward Freeman
B) Milton Friedman
C) Marjorie Kelly
D) Robert Halfon

Question 26

Who said, "What's good for me is good for all shareholders"?

A) The chairman of General Motors
B) Jeff Dachis of Razorfish
C) Bill Gates
D) Sir Alfred Coke

Question 27

Who said, "The task of management in today's corporation is akin to that of King Solomon"?

A) R. Edward Freeman
B) Milton Friedman
C) Marjorie Kelly
D) Robert Halfon

Question 28

Who spoke in protest of the Ice-CD at Time Warner's annual meeting?

A) Madonna
B) Charlton Heston
C) Jerry of Ben & Jerry's Ice Cream
D) David Geffen

Question 29

Who said, "Stakeholders are all those who deem themselves entitled to make demands on the system and to receive from it"?

A) R. Edward Freeman
B) Milton Friedman
C) Michael Novak
D) Marjorie Kelly

Question 30

The asbestos industry moved down the cycle very rapidly.

Question 31

Who said, "I don't condone cop killing. [But] to reach a more just and equitable society everybody's voice must be heard"?

A) Madonna
B) Nicole Miller
C) David Geffen
D) Jerry of Ben & Jerry's Ice Cream

Question 32

Which of the following is not considered a stakeholder?

A) Competitors
B) Suppliers
C) Customers
D) Shareholders
E) All of the above are considered stakeholders

Question 33

Which of the following were convicted of bank fraud and securities fraud?

A) John Rigas
B) Michael Rigas
C) Ellen Rigas
D) All of the above were convicted

Question 34

Who said, "The question is not about business, it's about responsibility"?

A) President Clinton
B) Charlton Heston
C) Tracy Morrow
D) David Geffen

Question 35

What past changes had Time Warner made based on public protests on content?

A) Withdrew Madonna's book
B) Withdrew Last Temptation of Christ
C) Corrected Porky Pig's stutter
D) All of the above

Question 36

Who said a corporation has no conscience?

A) The chairman of General Motors
B) Jeff Dachis of Razorfish
C) Bill Gates
D) Sir Alfred Coke

Question 37

Who said, "All businesses, forewarned, should be proactive, not reactive. They must be prepared to fight fire with fire and, if necessary, should be prepared to take their case all the way to the court"?

A) R. Edward Freeman
B) Milton Friedman
C) Michael Novak
D) Robert Halfon

Question 38

What was the issue with the Ice-Body Count CD?

A) People objected because the lyrics suggested killing police officers
B) The lyrics were obscene
C) The CD was not selling
D) None of the above

Question 39

According to Milton Friedman, an executive imposes taxes on shareholders when:

A) He or she uses corporate funds for social causes.
B) He or she fails to take all available deductions.
C) He or she pays dividends.
D) All of the above

Question 40

Who would take issue with the philosophy, "Treat employees well because then stockholders will prosper"?

A) Immanuel Kant
B) Marjorie Kelly
C) Michael Novak
D) Both a and b
E) All of the above

Question 41

What percentage of total record sales is rap music?

A) 10%
B) 20%
C) 30%
D) 18%

Question 42

Which of the following is not a stakeholder in a business?

A) Suppliers
B) Customers
C) Employees
D) Community members
E) All of the above are stakeholders

Question 43

The Body Shop founder Anita Roddick said that she didn't care about making money; she only cared about making the world a better place. Into which school of social responsibility would you place Ms. Roddick?

A) Inherence
B) Enlightened self-interest
C) Invisible hand
D) Social responsibility

Question 44

The conflicting values in the Time Warner Ice-case are:

A) First Amendment rights and duty of business to its larger community.
B) Conflicts of interest and personal honesty.
C) There were no conflicting values because everyone agreed with Time Warner.
D) Purchasing conflicts and investments.
E) None of the above

Question 45

Which of the following's views is aligned most closely with the inherence school of social responsibility?

A) Milton Friedman
B) Anita Roddick of the Body Shop
C) Ben & Jerry
D) Both b and c
E) None of the above

Question 46

Who wrote the 2007 report on steroid use among major league baseball players?

A) Bud Selig
B) Fay Vincent
C) George Mitchell
D) Two newspaper reporters

Question 47

Nobel economist Milton Friedman said that the social responsibility of a business is to make money for its shareholders. Into which school of social responsibility would you place Dr. Friedman?

A) Inherence
B) Enlightened self-interest
C) Invisible hand
D) Social responsibility

Question 48

Which school of social responsibility most closely matches Freeman's Stakeholder Theory?

A) Inherence
B) Social Responsibility
C) Invisible Hand
D) Enlightened Self-Interest

Question 49

The conclusion of the 2007 report on steroid use among major league baseball players was:

A) That use was isolated and limited.
B) That use was pervasive and affected all clubs.
C) That use stopped in 1998.
D) That the union should be responsible for monitoring steroid use among players.
E) Both a and d

Question 50

Businesses must face social issues because:

A) It is the right thing to do.
B) They can affect profits.
C) The U.S. Constitution requires them to do so.
D) None of the above

Question 51

A company CEO said, "If it's legal, it's ethical. I do nothing more." Into which school of social responsibility would you place this CEO?

A) Inherence
B) Enlightened self-interest
C) Invisible hand
D) Social responsibility

Question 52

The enlightened self-interest school of social responsibility:

A) Holds that the primary responsibility of business is to accommodate the community.
B) Holds that the primary responsibility of business is to earn a profit.
C) Does not acknowledge the interest of others beyond shareholders.
D) Both b and c
E) None of the above

Question 53

Which player wrote a book that named names of baseball players who used steroids?

A) Jose Canseco
B) Mark McGwire
C) Curt Schilling
D) Sammy Sosa

Question 54

Who said that the social responsibility of business is to earn a profit?

A) Warren Buffett
B) Albert Carr
C) The Sadhu
D) Milton Friedman
E) None of the above

Question 55

Following Body Count:

A) Ice-T left the Time Warner label.
B) Ice-T became impoverished.
C) Ice-T became a detective on Law and Order.
D) a, b and c
E) a and c only

Question 56

When was Major League Baseball's first policy on steroid use issued?

A) 1988
B) 1991
C) 2005
D) 2007

Question 57

The definition of "stakeholder":

A) Is precise and definitive.
B) Is very limited.
C) Is not yet completed.
D) Was developed by Milton Friedman.
E) None of the above

Question 58

XYZ Corporation expects its managers and employees to testify at congressional hearings and appear before state legislatures to advocate policy positions on everything from taxes to activities in national parks. Into which school of social responsibility would you place XYZ Corporation?

A) Inherence
B) Enlightened self-interest
C) Invisible hand
D) Social responsibility

Question 59

When were the Congressional hearings on Major League Baseball players' steroids use held?

A) 1988
B) 1991
C) 2005
D) 2007

Question 60

Who wrote Game Of Shadows?

A) Jose Canseco
B) George Mitchell
C) Two newspaper reporters
D) Fay Vincent

Question 61

Which of the following is not one of Novak's seven internal responsibilities of a corporation?

A) To create new wealth
B) To defeat envy
C) To make charitable contributions
D) To create new jobs

Question 62

Rain forest chic:

A) Is a Ben & Jerry's flavor of ice cream.
B) Is a label for branding strategies that focus on social responsibility.
C) Is a slogan for the Body Shop.
D) Is a Friedman term for social responsibility.

Question 63

Who were "Friends of Angelo"?

A) Friends of Angelo were the members of Countrywide's board.
B) Friends of Angelo were those who received favorable and expedited mortgage decisions through Angelo Mozilo.
C) Members of Countrywide's staff who received favorable mortgage terms.
D) None of the above

Question 64

Milton Friedman's view on executive compensation is:

A) That government should control it.
B) That there should be established ranges.
C) That shareholders should undertake controls if they deem it necessary.
D) None of the above

Question 65

Social responsibility by a business:

A) Is a doctrine developed by economist Milton Friedman.
B) Requires a business to examine how its decisions affect its stakeholders, not just its shareholders.
C) Is not part of a discussion of business ethics.
D) None of the above

Question 66

Why does a company act voluntarily in implementing procedures and equipment beyond the statutory requirements?

A) To avoid criminal penalties if there is ever a misstep
B) For purposes of good relations with regulators and community
C) To maximize shareholder value over the long term
D) Both b and c
E) a, b and c

Question 67

Freeman's Stakeholder Theory:

A) Requires business to consider other groups beyond shareholders when making decisions.
B) Is a free market theory.
C) Require property rights before allowing input on a decision.
D) Both b and c
E) None of the above

Question 68

Which of the following is not a stage in the regulatory cycle?

A) Awareness
B) Activism
C) Latency
D) Ethical options
E) All of the above are stages

Question 69

Place the following in the order of their progression in the regulatory cycle:

A) I, II, III, IV
B) II, III, I, IV
C) III, I, II, IV
D) III, II, I, IV
E) None of the above is the correct order

Question 70

Where in the regulatory cycle would you place text messaging?

A) Latency
B) Awareness
C) Activism
D) Regulation/Litigation

Question 71

What resulted when Whole Foods CEO John Mackey took a position via a Wall Street Journal op-ed piece opposing health care legislative reform?

A) John Mackey was fired
B) Whole Foods had boycotts from those wanted health care reform
C) Whole Foods was only boycotted by those who opposed health care reform
D) Whole Foods was boycotted by both groups

Question 72

Who said, "All sensible businessmen prefer to be truthful, but they seldom feel inclined to tell the whole truth"?

A) Marjorie Kelly
B) Adam Smith
C) Michael Novak
D) Albert Carr

Question 73

Which of the following are not stakeholders under Freeman's theory?

A) Customers
B) Employees
C) Community
D) Both a and c
E) All of the above are stakeholders

Question 74

The Arthur D. Little study on cloth diapers vs. disposable diapers found that:

A) Cloth diapers are better and more environmentally friendly.
B) Cloth diapers are cheaper and better for babies.
C) Cloth diapers use more resources than disposable diapers.
D) Disposable diapers are more expensive than cloth diapers.
E) None of the above

Question 75

What was the impact of the Community Reinvestment Act on Fannie Mae?

A) It had to stop purchasing mortgage loans.
B) It could only purchase loans that were not high credit risks.
C) It enabled Fannie Mae to expand its portfolio substantially.
D) None of the above

Question 76

Who said, "A business is not a church; not a state; not a welfare agency; not a religious association; not a political institution"?

A) Adam Smith
B) Marjorie Kelly
C) Michael Novak
D) Albert Carr

Question 77

In which stage of the regulatory cycle do scientific studies document an evolving issue?

A) Latency
B) Awareness
C) Activism
D) Regulation/litigation

Question 78

Whom does Marjorie Kelly believe should be rewarded the most for the creation of wealth in a corporation?

A) The shareholders
B) The executive team
C) The employees
D) a and b
E) All of the above

Question 79

As the regulatory cycle progresses:

A) Options increase and cost decreases.
B) Options decrease and cost decreases.
C) Options decrease and cost increases.
D) Options increase and cost increases.

Question 80

What is the order of the stages in the regulatory cycle?

A) Latency, awareness, activism, and regulation/litigation
B) Latency, activism, awareness, regulation/litigation
C) Latency, activism, regulation/litigation, awareness
D) Latency, regulation/litigation, awareness, activism