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

Question 1

New environmentalism requires that the CEO be involved in company initiatives and practices.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

Suppliers are not stakeholders in the corporation.

Question 6

The asbestos industry moved down the cycle very rapidly.

Question 7

Tocqueville was a proponent of socialism.

Question 8

Freeman's stakeholder theory is grounded in ethical egoism.

Question 9

Employment contracts have an implied morals clause.

Question 10

Decisions on corporate charitable contributions carry no ethical implications.

Question 11

Herman Miller abandoned the use of rain-forest woods over the objections of customers and craftsmen.

Question 12

Herman Miller follows a policy of compliance with existing environmental laws.

Question 13

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

Question 14

Once begun, the regulatory cycle cannot be reversed.

Question 15

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

Question 16

Stakeholders include employees and customers.

Question 17

Jennings and Entine propose a model of social responsibility that includes truthfulness.

Question 18

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

Question 19

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

Question 20

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

Question 21

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 22

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 23

The default rate on subprime mortgage loans is no higher than the default rate for conventional loans.

Question 24

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 25

Fast-and-easy mortgage loans were largely undocumented loans.

Question 26

Countrywide was acquired by Bank of America.

Question 27

Who believes that putting shareholders first is the wrong approach to corporate governance?

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

Question 28

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 29

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 30

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 31

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 32

Countrywide went bankrupt.

Question 33

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 34

Reverse mortgages are a form of subprime lending.

Question 35

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 36

The subprime market did not begin until 2007.

Question 37

Craigslist is not required by law to screen ads placed on its online service for illegal conduct.

Question 38

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 39

Nonprofits are exempt from ethical issues because their intent is philanthropic.

Question 40

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 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

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 49

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 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

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 52

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 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

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 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

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 57

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 58

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 59

What percentage of total record sales is rap music?

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

Question 60

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 61

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 62

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

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

Question 63

How did Fannie Mae discover the flaws in its computer model for amortization?

A)The OFHEAO report disclosed them
B)Former employee Roger Barnes raised concerns
C)Both a and b
D)None of the above

Question 64

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 65

Where in the regulatory cycle would you place text messaging?

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

Question 66

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 67

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 68

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 69

The music industry's warning labels on CDs:

A)Represent a new regulation of rock music.
B)Are an unconstitutional infringement of free speech.
C)Are a means of halting the regulatory cycle.
D)Were voluntary and initiated originally because of industry self-examination.
E)None of the above

Question 70

Which of the following lists did Fannie Mae not make?

A)Fortune's Best Companies for Minorities
B)Best Companies for Working Mothers
C)Business Ethics Most Ethical Company in America
D)All of the above

Question 71

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 72

What was branded in the brains of Fannie Mae employees?

A)That ethics and integrity are critical to Fannie Mae's success
B)6.46
C)Compliance with SOX requirements
D)Diversity

Question 73

What was the amount of Fannie Mae's restatement of its revenue?

A)$125 million
B)$90 million
C)$115 million
D)$6.3 billion

Question 74

Why does John Mackey believe many people go into business?

A)To maximize profits
B)To lift wages of employees
C)To offer a service or product that meets a need
D)For personal wealth

Question 75

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 76

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

Question 77

Who created Fannie Mae?

A)Shareholders
B)The federal government
C)The Federal National Insurance Company
D)None of the above

Question 78

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 79

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 80

Fannie Mae's policies on amortization:

A)Met accounting standards.
B)Were developed by the CFO and controller.
C)Were adjusted for arbitrary volatility.
D)All of the above