Deck 9: Acting Responsibly

Question 1

The accounting firm that audited Enron was Arthur Andersen.

Answer 1

True

Question 2

A good contemporary definition of "sustainable strategy" is that it can be carried out regardless of any negative impacts on the environment.

Answer 2

False

Question 3

"CEO duality" refers to the situation when the CEO is also the chair of the board of directors.

Answer 3

True

Question 4

The largest public pension fund in the U.S. is the California Public Employees Retirement System.

Question 5

The business practice of bribery is an example of an action that is ethically condemned through the world.

Question 6

Multinational corporations do not have difficulty establishing ethical obligations applicable to all their operations.

Question 7

Pepsi commenced business operations in Burma (later Myanmar) in 1991 and it still has not bowed to pressure to withdraw its business from that nation.

Question 8

The two leaders of Enron in the 1990s were Ken Lay and Dennis Kozlowski.

Question 9

Agency theory addresses the goal conflict that can exist between principals (owners) and their agents.

Question 10

Former Disney CEO Michael Eisner's compensation through stock options was far less than his compensation through salary.

Question 11

All publicly held corporations are required to have boards of directors.

Question 12

The recent Korn-Ferry study found that most corporate board vacancies are filled from recommendations of the board chair.

Question 13

The Federal Sentencing Guidelines for Organizations requires firms to establish codes of ethical conduct.

Question 14

The Brooks Sports Code of Conduct includes a stipulation against verbal harassment.

Question 15

The UN Global Compact requires firms to abolish child labour.

Question 16

TIAA-CREF is one of America's largest public pension funds for teachers and university professors.

Question 17

Corporate social responsibility describes the obligations that an organization has to serve its own interests.

Question 18

According to Archie Carroll, most middle managers are well intentioned but fail to take into account ethical considerations when they make decisions.

Question 19

Pepsi withdrew from its controversial activities in Burma due to pressure from protesters, including universities.

Question 20

The average Wal-Mart associate with a family of four lives below the poverty line.

Question 21

Tyco funds were used to furnish its executive's apartments with:

A) $77,000 piano
B) $32,500 chandelier
C) $105,000 bookcase
D) All of the above
E) None of the above

Question 22

Peter Drucker's book, The Unseen Revolution: How Pension Fund Socialism Came to America, is about the growing importance of:

A) Institutional investors
B) Chairs of boards of directors
C) Ethical codes of conduct
D) Performance evaluation

Question 23

Former Senator George Mitchell was named Chairman of the board of:

A) Accenture
B) Brooks
C) Disney
D) Pixar

Question 24

When Disney purchased _________, Steve Jobs became the largest shareholder.

A) Pixar
B) Microsoft
C) Universal
D) Brooks

Question 25

Which statements apply to Exxon?

A) Received environmental rewards
B) Developed strong policies on human rights
C) Was listed more than once as a "best company to work for"
D) All of the above
E) None of the above

Question 26

The "triple bottom line" refers to what "three p's"?

A) profit, profit, and profit
B) people, planet, and profit
C) publicity, potential, and power
D) prosperity, power, and plasticity

Question 27

"Agency problem" describes the conflict between:

A) customers and marketers
B) managers and owners
C) shareholders and owners
D) owners and clerical staff

Question 28

Dennis Kozlowski was the CEO of:

A) Tyco
B) Pepsi
C) Arthur Andersen
D) Brooks

Question 29

TIAA-CREF pension fund invests in corporations with what ratio of inside versus outside directors?

A) even
B) majority outside directors
C) majority inside directors
D) easy

Question 30

What reform law passed in 2002 dramatically impacted corporate financial disclosure?

A) Kennedy-Murtha
B) Taft Hartley
C) Sarbanes-Oxley
D) Simpson-Mazzoli

Question 31

Institutional investors in 2007 accounted for ___% of shares in the largest US corporations

A) 10
B) 25
C) 60
D) 85

Question 32

The four levels of corporate social responsibility are economic, ethical, philanthropic, and _________________

A) publicized
B) tangential
C) educational
D) legal

Question 33

According to Archie Carroll's "In Search of the Moral Manager," ethical standards are largely set by:

A) universal principles
B) religion
C) education
D) group standards

Question 34

Where did Accenture place its corporate location in 2000?

A) Bermuda
B) Connecticut
C) California
D) Illinois

Question 35

What percentage of firms have composed a "code of conduct?"

A) 10%
B) 25%
C) 50%
D) 75%

Question 36

What is the subject of the "Sullivan Principles?"

A) engineering mandates
B) accounting procedures
C) social responsibilities of corporations
D) hiring procedures at universities
E) corporate taxation

Question 37

Valerie Casey wrote guidelines for green design which later came to be called:

A) Green Planet
B) Designer's Accord
C) Environmental Design
D) Design Principles

Question 38

Which of the following is not true about Wal-Mart?

A) Approximately 46 percent of associates' children are either on Medicaid or uninsured.
B) Is subject to the largest civil rights class action suit ever filed against a private employer.
C) Imports all of its products.
D) Engaged in a number of charitable activities including the food bank, Second Harvest.

Question 39

Which of the following is not on Richard de George's seven standards for MNCs?

A) Multinationals should do no intentional harm.
B) Multinationals should pay their fair share of taxes.
C) Multinationals should operate according to the ethical behavior standards of their home country.
D) Multinationals should cooperate with local government in developing and enforcing just background institutions.

Question 40

Which of the following are typically included in corporate governance guidelines?

A) Board member selection criteria
B) Performance evaluation of the CEO
C) Performance self-evaluation of the board members
D) All of the above

Question 41

Which of the following topics are typically included in a code of conduct?

A) Harassment
B) Health and safety
C) Environmental stewardship
D) All of the above

Question 42

Discuss the reasons why individual shareholders do not have power to control management of the firms they own.

Question 43

List and discuss the three roles of boards of directors.

Question 44

Discuss any three of Microsoft's guidelines for corporate governance that were instituted in reaction to Sarbanes-Oxley.

Question 45

Describe five provisions which are typically found in a firm's code of conduct.

Question 46

Describe two internal forces for social responsibility.

Question 47

What is sustainable strategy?

Question 48

What is corporate governance? How does corporate governance monitor and control management decisions?

Question 49

Discuss some of the ways in which standards for corporate governance are changing.

Question 50

Discuss some of the ethical dilemmas you might encounter when working in another country.