Deck 3: Corporate Social Responsibility, Ethics, and Sustainability

Question 1

The primary function of the Consumer Product Safety Commission is the regulation of safety and health conditions in nongovernment workplaces.

Answer 1

False

Question 2

Ethical managers strive for success within the confines of sound management practices that are characterized by fairness and justice.

Answer 2

True

Question 3

Organizations that take the social obligation approach usually achieve higher levels of social responsiveness than organizations that take the social responsibility approach.

Answer 3

False

Question 4

A whistle-blower is an employee who performs quality reviews within an organization and reports flaws in the processes.

Question 5

Certain business institutions become involved in certain social problems that are outside their normal areas of operation. This behavior is inconsistent with the Davis Model of Corporate Social Responsibility.

Question 6

Any individual or group that is directly or indirectly affected by an organization's decisions is called a stakeholder.

Question 7

A code of ethics is an informal statement that organizations release to help its employees obtain a basic understanding of ethics.

Question 8

Empirical studies, conducted by various corporations in the United States, have demonstrated a definitive relationship between corporate social responsibility and profitability.

Question 9

All companies should take social responsibility measurements in the quality-of-life area and the economic function area.

Question 10

According to the concept of corporate social responsibility, managers should regard societal goals as more important than organizational goals.

Question 11

The primary function of the Equal Employment Opportunity Commission is to ensure that employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex.

Question 12

A social audit is conducted to measure the present social responsibility activities of an organization.

Question 13

The social obligation approach considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.

Question 14

The greater the degree of effectiveness and efficiency in pursuing its social responsibilities, the more socially responsive the organization is said to be.

Question 15

Adherence to legislated social responsibilities is the minimum standard of social responsibility performance that business managers must achieve.

Question 16

The Davis Model of Corporate Social Responsibility proposes businesses to operate as two-way open systems, with open receipt of inputs from society and open disclosure of operations to the public.

Question 17

Consumer affairs and community volunteerism are considered areas of corporate social responsibility.

Question 18

The utilitarian principle advocates the view that people should act in a way they would expect others to act toward them.

Question 19

Controlling in the area of social responsibility does not entail assessments or measurements.

Question 20

Kant's categorical imperative proposes to act in such a way that the action taken under the circumstances could be a universal law, or rule, of behavior.

Question 21

Managers pursue sustainability because it serves as a catalyst for innovation.

Question 22

The Sarbanes-Oxley Act prohibits retaliation by employers against whistle-blowers.

Question 23

Managers who have successfully increased the value of the organization have fulfilled their social obligation towards ________.

A) stockholders
B) consumers
C) government agencies
D) employees and unions
E) banks and other lenders

Question 24

Which of the following statements is true about the social responsiveness approach?

A) It sees business as having societal goals, but lacking economic goals.
B) It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.
C) It sees business as having societal goals and the obligation to anticipate potential social problems, but lacking economic goals.
D) It considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.
E) It sees business as having both economic and societal goals.

Question 25

Tangarine, a detergent manufacturer, realizes that a malfunction of one of its automated machines has significantly altered the composition of the detergent. Continued exposure to this altered detergent can cause skin cancer in the long-term. The social obligation to which of its stakeholders is Tangarine violating?

A) the suppliers
B) the employees
C) the stockholder
D) the customers
E) the unions

Question 26

Which of the following arguments provided by Milton Friedman suggests that corporate social responsibility may be unethical?

A) Corporate social responsibility compels managers to spend money on some individuals that rightfully belongs to other individuals.
B) Corporate social responsibility is not mandated by law, which means that it has to be done by will, not by compulsion.
C) Empirical studies have not yet demonstrated a definitive relationship between corporate social responsibility and profitability.
D) Profitability and growth go hand-in-hand with responsible treatment of employees, customers, and the community.
E) Firms use corporate social responsibility to increase their brand awareness.

Question 27

Sustainability is the degree to which a person or entity can put its competitors out of business.

Question 28

The term triple bottom-line emphasizes that managers should focus on building organizations that are sustainable in economic, environmental, and societal activities.

Question 29

Lebron wants to file a complaint against EatFry, a fast-food restaurant, because he was rejected in a job interview with the firm. Lebron believes that he was discriminated because of race. Which of the following federal agencies should he approach?

A) Consumer Product Safety Commission
B) Mining Enforcement and Safety Administration
C) Occupational Safety and Health Administration
D) Environmental Protection Agency
E) Equal Employment Opportunity Commission

Question 30

Managers can fulfill their social obligation towards government agencies by ________.

A) providing safe products
B) repaying debts to banks
C) abiding by the laws
D) increasing the value of the organization
E) providing safe working environments

Question 31

Managers can fulfill their social obligation towards consumers by ________.

A) abiding to the laws
B) providing safe working environments
C) repaying debts
D) increasing the value of the organization
E) providing safe products

Question 32

The primary function of the Office of Federal Contract Compliance Programs is to ensure that employers holding federal contracts ________.

A) abide by the safety and health regulations of the Occupational Safety and Health Administration
B) improve safety conditions for workers by enforcing all safety and equipment standards
C) grant equal employment opportunity to people regardless of their race or sex
D) strive to reduce consumer misunderstanding of its products
E) abide by the environmental standards enforced by the Environment Protection Agency

Question 33

Which of the following is the primary function of the Consumer Product Safety Commission?

A) It ensures that employers holding federal contracts abide by the product safety standards.
B) It strives to reduce consumer misunderstanding of manufacturers' product design, labeling, and so on, by promoting clarity of these messages.
C) It formulates and enforces environmental standards in such areas as water, air, and noise pollution.
D) It regulates safety and health conditions in nongovernment workplaces.
E) It investigates product safety concerns prior to the launch of a product.

Question 34

Which of the following is the primary function of the Equal Employment Opportunity Commission?

A) It ensures that employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex.
B) It strives to reduce consumer misunderstanding of manufacturers' product design, labeling, and so on, by promoting clarity of these messages.
C) It formulates and enforces environmental standards in such areas as water, air, and noise pollution.
D) It regulates safety and health conditions in nongovernment workplaces.
E) It investigates and conciliates employment discrimination complaints that are based on race, sex, or creed.

Question 35

Social responsiveness can be defined as ________.

A) the speed with which an organization adapts to the changing societal culture
B) an organization's effectiveness in abiding by the laws of the society
C) the degree of effectiveness and efficiency with which an organization fulfills its stockholders' needs while benefitting the stakeholders
D) the degree of effectiveness and efficiency an organization displays in pursuing its social responsibilities
E) the degree of effectiveness with which an organization can predict the changes in a society, such as the consumers changing preferences

Question 36

Which of the following statements is true about the social obligation approach?

A) It sees business as having both economic and societal goals.
B) It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems.
C) It sees business as having societal goals and the obligation to anticipate potential social problems, but lacking economic goals.
D) It considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.
E) It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.

Question 37

Which of the following statements is true about corporate social responsibility?

A) It is the managerial obligation to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem.
B) It is the managerial obligation to cater to the needs of the stockholders, while abiding by the laws of the society.
C) It is the managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization.
D) It is the managerial obligation to abide to societal laws when pursuing organizational goals.
E) It is the managerial obligation to ensure ethical decision-making in an organization to benefit its customers.

Question 38

In the Davis Model of Corporate Social Responsibility, Proposition 1 states that social responsibility arises from social power. This proposition is derived from the premise that ________.

A) business should consider the long- and short-term societal consequences of all business activities before technical feasibility and economic profitability
B) business must be willing to listen to what must be done to sustain or improve societal welfare
C) if a business possesses the expertise to solve a social problem with which it may not be directly associated, it should be held responsible for helping society solve that problem
D) business needs to completely finance activities that may be socially advantageous but economically disadvantageous
E) business has a significant amount of influence on critical social issues such as minority employment and environmental pollution

Question 39

Which of the following propositions of the Davis Model of Corporate Social Responsibility states that business cannot be expected to completely finance activities that may be socially advantageous but economically disadvantageous?

A) Proposition 5: Business institutions, as citizens, have the responsibility to become involved in certain social problems that are outside their normal areas of operation.
B) Proposition 1: Social responsibility arises from social power.
C) Proposition 3: The social costs and benefits of an activity, product, or service shall be thoroughly calculated and considered in deciding whether to proceed with it.
D) Proposition 4: The social costs related to each activity, product, or service shall be passed on to the consumer.
E) Proposition 2: Business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.

Question 40

The social responsibility approach sees business as having ________.

A) both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence
B) societal goals and the obligation to anticipate potential social problems, but lacking economic goals.
C) both societal and economic goals as well as the obligation to anticipate potential social problems
D) primarily economic purposes and confines social responsibility activity mainly to existing legislation
E) both economic and societal goals

Question 41

Which of the following statements is true about a social audit?

A) It is the process of measuring the increase in a firm's brand awareness after it conducts social responsibility activities.
B) It is the process of forecasting the impact of an organization's social responsibility activities on the society to decide its feasibility.
C) It is the process of measuring the increase in an organization's profits after it has conducted social responsibility activities.
D) It is the process of measuring the present social responsibility activities of an organization to assess its performance in this area.
E) It is the process of measuring the impact of an organization's social responsibility activities on the society.

Question 42

A firm that is participating in long-range community planning is conduction a social responsibility measurement in the ________ area.

A) problem-solving
B) economic function
C) social investment
D) problem-recognition
E) quality-of-life

Question 43

Which of the following occurs during the controlling process?

A) establishing orderly uses for all the organization's resources
B) guiding the activities of organization members to help attain organizational objectives
C) determining how the organization will achieve its objectives
D) making things happen as they were planned to happen
E) determining how the organization will get where it wants to go

Question 44

Remington Steel Co. is a steel manufacturing company that has seen an increased number of work-related injuries in its factories and, recently, an accident that resulted in the death of a worker. To correct this problem, Remington replaced all its old machinery and equipment, restricted workers' access to dangerous machinery, and made safety costumes mandatory for workers at all times. This resulted in a drastic decrease in work injuries. By performing these activities, Remington conducted a social responsibility measurement in the ________ area.

A) problem-solving
B) economic function
C) problem-recognition
D) social investment
E) quality-of-life

Question 45

Planning social responsibility activities involves ________.

A) establishing all organizational resources that emphasize the attainment of the organization's social objectives
B) determining how the organization will achieve its social responsibility objectives
C) guiding the activities of organization members to help attain the organization's social responsibility objectives
D) making things happen as they were planned to happen
E) determining and reporting progress in the attainment of social responsibility objectives

Question 46

________ is defined as the process of determining how the organization will achieve its objectives, or get where it wants to go.

A) Influencing
B) Organizing
C) Planning
D) Controlling
E) Implementing

Question 47

Which of the following activities performed by an organization indicates that it is conducting a social responsibility measurement in the social investment area?

A) putting in money and human resources to solve community social problems
B) participating in long-range community planning
C) conducting studies to pinpoint social problems
D) ensuring worker safety
E) dealing fairly with employees and customers

Question 48

The social responsibility measurement in the ________ area includes performing tasks like producing goods and services that people need, paying fair wages, and ensuring worker safety.

A) problem-recognition
B) quality-of-life
C) social investment
D) economic function
E) problem-solving

Question 49

Which of the following activities indicates that the organization is conducting a social responsibility measurement in the economic function area?

A) creating jobs for society
B) dealing fairly with employees and customers
C) investing money to solve community social problems
D) conducting studies to pinpoint social problems
E) participating in long-range community planning

Question 50

Organizing for social responsibility activities entails ________.

A) making things happen as they were planned to happen
B) guiding the activities of organization members to help attain the organization's social responsibility objectives
C) determining how the organization will achieve its social responsibility objectives
D) establishing for all organizational resources logical uses that emphasize the attainment of the organization's social objectives
E) determining and reporting progress in the attainment of social responsibility objectives

Question 51

In which of the following stages of performing social responsibility activities does a manager lead, communicate, motivate, and work with groups to attain the organization's social responsibility objectives?

A) influencing
B) controlling
C) implementing
D) planning
E) organizing

Question 52

Which of the following activities indicates that the organization is conducting a social responsibility measurement in the quality-of-life area?

A) conducting studies to pinpoint social problems
B) ensuring worker safety
C) dealing fairly with employees and customers
D) participating in long-range community planning
E) producing goods and services that people need

Question 53

A firm that is involved in assisting community organizations dedicated to education, charities, and the arts is conducting a social responsibility measurement in the ________ area.

A) problem-solving
B) economic function
C) social investment
D) problem-recognition
E) quality-of-life

Question 54

Which of the following is an example of an organization undertaking social responsibility measurements in the social investment area?

A) Blanc Co., a mobile manufacturer, donates $10 million to Lance Armstrong Cancer Foundation.
B) Caterpillar, the world's largest manufacturer of construction and mining equipment, replaces its old machinery and equipments to reduce workers injuries.
C) Glance, a textile manufacturing company, increases its workers pay after its union declared a strike to demand pay hikes.
D) Glasco Computers, a computer hardware manufacturer, makes sure that it abides by the law while catering to its customers' needs.
E) UCB, a fashion and apparel company, opens six factories in different locations in China.

Question 55

Which of the following statements is true about organizing?

A) It is the process of determining how the organization will achieve its objectives.
B) It is the management process of guiding the activities of organization members to help attain organizational objectives.
C) It is the process of making things happen as they were planned to happen.
D) It is the process of establishing orderly uses for all the organization's resources.
E) It is the process of determining how the organization gets where it wants to go.

Question 56

Which of the following activities performed by an organization indicates that it is conducting a social responsibility measurement in the problem-solving area?

A) ensuring worker safety
B) conducting studies to pinpoint social problems
C) dealing fairly with employees and customers
D) producing goods and services that people need
E) investing human resources to solve community social problems

Question 57

The social responsibility measurement in the ________ area includes tasks like making an effort to preserve the natural environment.

A) problem-solving
B) economic function
C) social investment
D) problem-recognition
E) quality-of-life

Question 58

________ is defined as the management process of guiding the activities of organization members to help attain organizational objectives.

A) Implementing
B) Organizing
C) Controlling
D) Planning
E) Influencing

Question 59

Manga, a fashion and apparel company, opens a new factory in India. By performing this activity, Manga conducted a social responsibility measurement in the ________ area.

A) social investment
B) quality-of-life
C) problem-recognition
D) economic function
E) problem-solving

Question 60

As applied to the social responsibility area, influencing is the process of ________.

A) determining how the organization will achieve its social responsibility objectives
B) guiding the activities of organization members to help attain the organization's social responsibility objectives
C) making things happen as they were planned to happen
D) determining and reporting progress in the attainment of social responsibility objectives
E) establishing for all organizational resources logical uses that emphasize the attainment of the organization's social objectives

Question 61

Which of the following actions suggests that an individual is following Kant's categorical imperative?

A) Acting in a way you would expect others to act toward you.
B) Taking actions that would be viewed as proper by a disinterested panel of professional peers.
C) Acting in a way that results in the greatest good for the greatest number of people.
D) Taking actions that abide by the laws of the state.
E) Acting in a way that the action taken under the circumstances could be a universal law of behavior.

Question 62

________ is a formal statement that acts as a guide for the ethics of how people within a particular organization should act and make decisions.

A) A social audit
B) A whistleblower's policy
C) Corporate governance
D) A code of ethics
E) A mission statement

Question 63

The Sarbanes-Oxley Act supports ________ as a vehicle for both discouraging deceptive management practices while encouraging ethical management practices.

A) shoulder surfing
B) whistle-blowing
C) phishing
D) crowdsourcing
E) nearshoring

Question 64

Which of the following statements is true about the Sarbanes-Oxley Act of 2002?

A) It prohibits any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company.
B) It allows for the full or partial disclosure of previously unreleased information and documents controlled by any public enterprise.
C) It requires financial institutions to keep records of cash purchases of negotiable instruments and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.
D) Areas covered under this act include maintaining generally accepted accounting practices and ensuring company structure and processes that enhance integrity and reputation.
E) It encourages commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.

Question 65

Consider how the Federal Reserve Board sets interest rates. The Fed examines the relevant economic data and makes a judgment about the present and future state of the economy. If economic activity seems to be slowing down, the Fed might decide to lower interest rates as a means for stimulating economic growth. If the economy seems to be growing too fast and the inflation rate is increasing, they might choose to raise interest rates. Lowering or raising interest rates, in and of itself, is neither good nor bad; the rightness of the act depends on the consequences. This action is consistent with the ________.

A) utilitarian principle
B) golden rule
C) virtue ethics principle
D) deontological principle
E) Kantian principle

Question 66

Which of the following scenarios can be justified by Kant's categorical imperative?

A) Rahman is a 9 year old boy who works in a manufacturing plant in India for 2 cents an hour to support his family.
B) Bobby committed his first crime when he was 14 years old and required money to support his family.
C) Joey killed a burglar who sneaked into his house and tried to kill him.
D) Karol lied to her parents of Leon because she did not want them to know that she was pregnant.
E) Percy stole his friend's iPod because his parents did not have the money to afford it.

Question 67

Roger believes in the statement, "what you give, you receive." He shows respect to everyone he knows and meets everyday and expects them to show him respect. Roger's behavior is consistent with ________.

A) the utilitarian principle
B) the golden rule
C) the deontological principle
D) Kant's categorical imperative
E) the four-way test

Question 68

Which of the following was passed amid outcries of public outrage over outrageous management practices discovered at several companies including Enron, WorldCom, and Tyco?

A) Gramm-Leach-Bliley Act
B) Financial modernization Act
C) Sarbanes-Oxley Act
D) Patriot Act
E) Freedom of Information Act

Question 69

The study of ethics in management can be approached from many different directions. A practical approach is to view ethics as catalyzing managers to ________.

A) abide by the laws
B) fulfill stockholders needs
C) encourage workforce diversity
D) discourage whistleblowing
E) take socially responsible actions

Question 70

In business, ethics can be defined as ________.

A) the capacity to reflect on customer preferences in the corporate decision-making process
B) the capacity to reflect on competitive strategies in the corporate decision-making process
C) the capacity to reflect on values in the corporate decision-making process
D) the capacity to reflect on production bottlenecks in the corporate decision-making process
E) the capacity to reflect on workforce diversity in the corporate decision-making process

Question 71

Which of the following actions suggests that an individual is following the golden rule?

A) Acting in a way you would expect others to act toward you.
B) Taking actions that would be viewed as proper by a disinterested panel of professional peers.
C) Acting in a way that results in the greatest good for the greatest number of people.
D) Taking actions that abide by the laws of the state.
E) Acting in a way that the action taken under the circumstances could be a universal law of behavior.

Question 72

Which of the following is an example of whistle-blowing?

A) Niobi, an employee of Glesnt Co., complains to her project manager about the sexual advances that Brent, her supervisor, makes on her.
B) Rupert files a product liability suit against SilkSmooth Co., a shampoo manufacturer, because its use caused his hair to fall.
C) Joan, an employee of Pierce International-a financial services firm, reports illegal accounting practices to the Security and Exchange Commission.
D) Linda files a complaint to the Employee Equal Opportunity Commission against Jueruie Co. after she was rejected in the interview based on her gender.
E) Noa, a customer of Cone Inc., complains about the bad customer-service it received for the products.

Question 73

________ can be categorized as "outside" stakeholders of an organization.

A) Stockholders
B) Managers
C) Employees
D) Customers
E) Shareholders

Question 74

Susanne does not lie. She does not lie even in situations where telling the truth would hurt an individual or lying could make someone feel better. In her words, "Lying is immoral. Nothing can justify lying to someone." Susanne's behavior is consistent with ________.

A) the utilitarian principle
B) the golden rule
C) the consequentialist principle
D) Kant's categorical imperative
E) the four-way test

Question 75

Which of the following suggests that an organization is acting unethically?

A) The customers are unhappy with one of the products manufactured by the organization.
B) The public pressures legislators and other government officials to enforce existing regulations.
C) The organization looses its customers to competitors due to lack of after-sale services for its products.
D) The public pressures the organization to conduct social responsibility activities.
E) The union members of the organization declare a strike to demand a hike in salaries.

Question 76

Individuals following the ________ act in a way that results in the greatest good for the greatest number of people.

A) golden rule
B) deontological principle
C) utilitarian principle
D) virtue ethics principle
E) Kantian principle

Question 77

Which of the following is one of the questions asked by the managers while conducting the four-way test?

A) Is the proposed action or decision legal?
B) Is the decision truthful?
C) Would I feel comfortable explaining to a national TV audience why I took this action?
D) Is this decision beneficial for me?
E) Is this decision improving employee productivity?

Question 78

Brenda works as an accountant in a software firm. She notices that the company has inflated its balance sheet to show profits, when in reality it is under loss. Brenda reports this inconsistency to the CFO and then to the local authorities, when the CFO refused to take action. Which of the following explains Brenda actions?

A) crowdsourcing
B) phishing
C) whistle-blowing
D) shoulder surfing
E) pharming

Question 79

________ is the act of an employee reporting suspected misconduct or corruption believed to exist within an organization.

A) Phishing
B) Crowdsourcing
C) Shoulder surfing
D) Pharming
E) Whistle-blowing

Question 80

"Established laws are generally considered minimum standards for ethics." Which of the following standards is based on the preceding statement?

A) the legal test
B) the utilitarian principle
C) Kant's categorical imperative
D) the golden rule
E) the four-way test