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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Suppliers are not stakeholders in the corporation.

Answer 3

False

Question 4

There is agreement among the field of scholars on the definition of stakeholders.

Question 5

Stakeholder theory is grounded in ethical egoism.

Question 6

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

Question 7

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

Question 8

Countrywide was acquired by Bank of America.

Question 9

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

Question 10

Stakeholders include employees and customers.

Question 11

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

Question 12

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

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

Countrywide went bankrupt.

Question 17

Decisions on corporate charitable contributions carry no ethical implications.

Question 18

Milton Friedman follows the agency theory, that corporate managers are agents of shareholders.

Question 19

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

Question 20

Edward Freeman brought stakeholder theory into business strategy.

Question 21

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

Question 22

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 23

CVS pulled tobacco products from many of its stores.

Question 24

Fannie Mae no longer exists.

Question 25

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 26

The increase in minimum wage at Walmart did not affect existing employees.

Question 27

The subprime market did not begin until 2007.

Question 28

The CEO of Turing Pharmaceuticals is facing criminal charges for overpricing the company's prescription drugs.

Question 29

Chipotle declared bankruptcy.

Question 30

The New England Compounding Labs declared bankruptcy.

Question 31

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

Question 32

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 33

Solyndra declared bankruptcy.

Question 34

Companies that donate to Planned Parenthood experience backlash regardless of their donations to the group.

Question 35

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

Question 36

Taking voluntary action in the latency stage can reduce the amount of regulation an industry faces.

Question 37

Reverse mortgages are a form of subprime lending.

Question 38

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 39

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

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

Question 40

Ashley Madison declared bankruptcy.

Question 41

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 42

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 43

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. What risk does XYZ Corporation have because of this policy?

A) None because social responsibility involvement enhances the reputation of   XYZ
B) Backlash from those who feel differently about these issues
C) Shareholder sell-offs because of the positions taken
D) Both b and c

Question 44

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 45

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

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

Question 46

What percentage of total record sales is rap music?

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

Question 47

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 48

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

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

Question 49

Following Body Count:

A) Time Warner went exclusively into rap music.
B) Time Warner shifted strategically into family-oriented entertainment.
C) Time Warner released no more rap albums.
D) Both b and c

Question 50

Chipotle's setbacks in sales were:

A) The result of poor menu choices.
B) The result of food safety issues.
C) The result of employee wages.
D) The result of donations Chipotle made to certain groups.

Question 51

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 52

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 53

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 54

Which reflects Marjorie Kelly's financial model for corporations?

A) Profits = Revenues - Cost
B) Profits = Revenues - Employee Income + Cost of Materials
C) Profits = Revenues - Cost + Shareholder distributions
D) None of the above

Question 55

Who spoke in protest of the Ice-T CD at Time Warner's annual meeting?

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

Question 56

Which of the following's views is aligned most closely with those of Milton Friedman?

A) Robert Halfon
B) Anita Roddick of the Body Shop
C) Edward Freeman
D) Both b and c
E) None of the above

Question 57

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 58

John Mackey's views are similar to those of which of the following?

A) Milton Friedman
B) Robert Halfon
C) Marjorie Kelly
D) Jon Entine and Marianne Jennings

Question 59

The conflicting values in the Time Warner Ice-T 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 60

What was the issue with the Ice-T 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 61

Where in the regulatory cycle would you place text messaging?

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

Question 62

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 63

The Turing/Shkreli pricing model would be aligned with which person's views on social responsibility?

A) Marjorie Kelly
B) John Mackey
C) Milton Friedman
D)   Edward Freeman

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

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 66

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 67

Who were the stakeholders in the subprime mortgage market?

A) Mortgage lenders
B) Borrowers
C) Investors in mortgage-backed debt instruments
D) Both a and b
E) All of the above

Question 68

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 69

Who created Fannie Mae?

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

Question 70

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 71

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 72

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 73

Stakeholder Theory:

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

Question 74

The definition of "stakeholder":

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

Question 75

Place the following in the order of their progression in the regulatory cycle:   ​
Activism
Awareness
Latency
Regulation/Litigation

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 76

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 77

Stakeholders in the issue of increasing the minimum wage include:

A) All employees.
B) Customers.
C) Shareholders.
D) Both a and b
E) All of the above

Question 78

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 79

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 80

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

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