Deck 3: Corporate Social Responsibility and Business Ethics

Question 1

Economic,social,and psychological satisfaction in the place of employment is a typical claim of which stakeholder group?

A) Stockholders
B) Creditors
C) Employees
D) Society

Answer 1

C

Question 2

The process of reconciliation of the claims made on the firm is necessary because

A) The number of claims against any firm is so large
B) The government mandates that reconciliation be achieved
C) The claims of various groups often conflict
D) A firm is susceptible to liability suits

Answer 2

C

Question 3

Which of these is NOT a step in incorporating the interests of stakeholders into its mission statement?

A) Identification of stakeholders
B) Understanding the stakeholders' specific claims vis-à-vis the firm
C) Incorporating all the claims of various stakeholders into the mission with equal emphasis
D) Coordination of the claims with other elements of the company mission

Answer 3

C

Question 4

Security of pledged assets is a typical claim of which stakeholder group?

A) Stockholders
B) Employees
C) Creditors
D) Society

Question 5

Freedom to participate in collective bargaining is a typical claim of which stakeholder group?

A) Stockholders
B) Creditors
C) Employees
D) Society

Question 6

Participation in distribution of profits and election of board of directors are claims of which of these stakeholders vis-à-vis the firm?

A) Stockholders
B) Customers
C) Suppliers
D) Government

Question 7

A firm's claimants are sometimes collectively referred to as

A) Stockholders
B) Employees
C) Stakeholders
D) Customers

Question 8

The demands of stakeholder groups constitute one principal set of inputs to the company

A) Annual report
B) Credit report
C) Mission
D) Public relations message

Question 9

Which of these is NOT a principal set of inputs to the company mission?

A) Demands of stakeholder groups
B) Identification of CSR auditors
C) Managerial operating philosophy
D) Determinants of the product market offerings

Question 10

Freedom from arbitrary and capricious behavior on the part of company officials is a typical claim of which stakeholder group?

A) Stockholders
B) Creditors
C) Employees
D) Society

Question 11

Continuing source of business is a typical claim of which stakeholder group?

A) Stockholders
B) Employees
C) Suppliers
D) Society

Question 12

_______ have justifiable reasons for expecting (and often demanding)that the firm satisfy their claims in a responsible manner.

A) Board
B) Institutions
C) Stakeholders
D) Top management

Question 13

According to a survey of over 2000 board of directors,which of these stakeholders were perceived to be most important?

A) Stockholders
B) Employees
C) Customers
D) Society

Question 14

Competitors as a stakeholder would have which of the following claims on a firm?

A) Share in fringe benefits
B) Election of board of directors
C) Continuing source of business
D) Business statesmanship on the part of peers

Question 15

Fair competition is a:

A) Customer claim
B) Creditor claim
C) Union claim
D) Competitor claim

Question 16

The claims of various stakeholder groups often

A) converge
B) submerge
C) conflict
D) blend

Question 17

With regards to stakeholders' specific claims vis-à-vis the firm,the claims of various stakeholders groups

A) Are always in sync
B) Are never resolved
C) Must be ignored
D) Often conflict

Question 18

Adequate working conditions,freedom from arbitrary and capricious behavior on the part of company officials and share in fringe benefits are claims of which of these stakeholders?

A) Customers
B) Employees
C) Suppliers
D) Competitors

Question 19

Professional relationship in contracting for,purchasing and receiving goods and services represent the claim of which of these stakeholders vis-à-vis the firm?

A) Local communities
B) Customers
C) Suppliers
D) Creditors

Question 20

Which of these stakeholders,according to a survey of board of directors,was perceived to be least important?

A) Government
B) Society
C) Employees
D) Stockholders

Question 21

Which responsibilities reflect the company's notion of right and proper business behavior?

A) Ethical
B) Economic
C) Legal
D) Discretionary

Question 22

Managers need to know that,in the view of the general public,_______ and _______ responsibilities are required,_______ responsibility is expected and _______ responsibility is desired.

A) Legal; ethical; economic; discretionary
B) Economic; legal; ethical; discretionary
C) Ethical; economic; discretionary; legal
D) Legal; economic; discretionary; ethical

Question 23

Which of these incidents can be credited for the resurgence of environmentalism with formation of the Coalition for Environmentally Responsible Economics (CERES)?

A) Exxon Valdez
B) Johnson and Johnson's Tylenol case
C) Arthur Anderson incident
D) WorldCom

Question 24

Which of these represents the most basic responsibilities of business?

A) Economic
B) Political
C) Legal
D) Ethical

Question 25

The duty of managers,as agents of the company owners,to maximize stockholder wealth is referred to as ________ responsibilities.

A) Legal
B) Discretionary
C) Economic
D) Ethical

Question 26

_______ responsibilities are the most basic social responsibilities of the firm.

A) Legal
B) Ethical
C) Economic
D) Discretionary

Question 27

Each firm regardless of ____ must decide how to meet its perceived social responsibility.

A) Industry
B) National origin
C) Profitability
D) Size

Question 28

All of these are broad trends that are driving businesses to adopt CSR frameworks EXCEPT:

A) The resurgence of environmentalism
B) Increasing buyer power
C) The globalization of business
D) The technological developments

Question 29

In the case of corporate social responsibility,costs and benefits are both ______ and ______.

A) Social; political
B) Ethical; discretionary
C) Economic; social
D) Political; ethical

Question 30

Which of these are NOT outside stakeholders?

A) Customers
B) Stockholders
C) Creditors
D) Union

Question 31

Which of the following is NOT a type of social commitment that strategic managers need to consider?

A) Economic
B) Political
C) Legal
D) Ethical

Question 32

Public relations activities and good citizenship are examples of which responsibilities of a business organization?

A) Legal
B) Ethical
C) Discretionary
D) Economic

Question 33

Individuals and groups who are stockholders or employees of firms are called:

A) Outsiders
B) Insiders
C) Internal stakeholders
D) A special interest group

Question 34

Which of the following are inside stakeholders?

A) Board of directors
B) Customers
C) Suppliers
D) Creditors

Question 35

Through _______,managers attempt to enhance the image of their companies,products and services by supporting worthy causes.

A) Good citizenship
B) Public relations activities
C) Full corporate responsibilities
D) Social audits

Question 36

________ responsibilities reflect the form's obligations to comply with the laws that regulate business activities.

A) Discretionary
B) Economic
C) Political
D) Legal

Question 37

Which of these represent a pollution prevention strategy in an organization?

A) Automation of manufacturing facility
B) Transforming business from manufacturing to service operations
C) Changing the materials used or redesigning how operations are bid out
D) Creating a pollution pit and putting all waste in it monthly

Question 38

_______ is the idea that business has a duty to serve society in general as well as the financial interests of stockholders.

A) Corporate social responsibility
B) Discretionary responsibility
C) Ethical responsibility
D) Utilitarian responsibility

Question 39

_______ responsibilities are those that are voluntarily assumed by a business organization.

A) Legal
B) Ethical
C) Discretionary
D) Economic

Question 40

Which of these is NOT true about CSR and the bottom line?

A) Some CSR activities incur no dollar costs at all
B) Philanthropic activities of a corporation are undertaken at a discounted cost to the firm
C) Socially responsible behavior comes at a prohibitive cost especially given the regulations
D) Socially responsible practices may create savings and, as a result, increase profits

Question 41

Which of these refers to the moral principles that reflect society's beliefs about the actions of an individual or group that are right and wrong?

A) CSR
B) Social audit
C) Ethics
D) Utilitarian approach

Question 42

In addition to monitoring and evaluating firm social performance,managers use social audits for all of these EXCEPT

A) Scan the external environment
B) Obtain governmental subsidies for their operations
C) Institutionalize CSR within the firm
D) Determine firm vulnerabilities

Question 43

Approximately _____ percent of senior corporate auditors now report directly to the Board of Directors audit committee.

A) 30
B) 55
C) 75
D) 90

Question 44

The Sarbanes-Oxley Act includes provisions restricting the corporate control of all of these EXCEPT

A) Attorneys
B) Customers
C) Executives
D) Accounting firms

Question 45

According to research,the primary vehicle for achieving superior financial performance from social responsibility is via

A) Gift giving
B) Global marketing efforts
C) Internal audit effects
D) Reputation effects

Question 46

One of the most contentious social responsibility issues confronting multinational firms pertains to

A) Animal welfare
B) Children
C) Working conditions
D) Human rights

Question 47

Much of the impetus for social investing originated with

A) Educational systems
B) Religious organizations
C) Small businesses
D) Governmental regulations

Question 48

Which of these is true about Sarbanes-Oxley Act?

A) The CEO and CFO must verify every report containing the company's financial statements
B) The directors and executive officers are required to trade the company's 401(k) plan, profit sharing plan and retirement plan during the black out period
C) Companies are required to extend personal loans to its executives and directors
D) The Act requires that the audit committee must be composed entirely of inside officers

Question 49

Which of these is NOT true about social audit?

A) Given the availability of complete information and programs, to be comprehensive and accepted by the general public, a social audit must be conducted by the company itself
B) A social audit attempts to measure a company's actual social performance against the social objectives it had set for itself
C) The social audit may be used for more than simply monitoring and evaluating firm social performance
D) Once the social audit is complete, it may be distributed both internally and externally

Question 50

The most significant change in the restructuring of governance structure due to the Sarbanes-Oxley Act is the

A) Elimination of the external board members
B) Heightened role of corporate internal auditors
C) Removal of CFO from any overseeing role related to final financial statements
D) Creation of inside corporate accountants reporting to external accounting firms

Question 51

If a company must restate its financial statements,per the Sarbanes-Oxley Act,the

A) CEO and CFO must relinquish any bonus or incentive-based compensation
B) CEO and CFO must resign
C) CFO is prosecuted for falsifying information while CEO is charged a penalty
D) CEO must find a new board of directors for the company

Question 52

Large-scale social investing can be broken down into the two broad areas of

A) Domestic and global
B) Stockholder and stakeholder investing
C) Guideline portfolio investing and shareholder activism
D) Ethical and economic responsibilities

Question 53

A major consequence of the 2000-2002 accounting scandals was the ______ .

A) Sherman Antitrust Act
B) Waxman-Hatch Act
C) Enron Act
D) Sarbanes-Oxley Act

Question 54

Which of these is the largest and fastest growing segment of social investing?

A) Guideline portfolio investing
B) Global investing
C) Stockholder activism
D) Ethical and economic responsibilities

Question 55

Which law revised and strengthened auditing and accounting standards?

A) Federal Fair Packaging and Labeling Act
B) Sarbanes-Oxley Act
C) Truth in Lending Act
D) National Environmental Policy Act

Question 56

The CSR debates have surfaced in a more positive way in the last 30 years due to which of these?

A) Government mandates
B) Competitive pressures
C) New businesses set up shop with altruism in mind
D) Declining shares of U.S. businesses in the global markets

Question 57

Which of these attempts to measure a company's actual social performance against the social objectives it has set for itself?

A) Social audit
B) Mission statement
C) Sarbanes-Oxley Act
D) Discretionary responsibilities

Question 58

A major consequence of the Sarbanes-Oxley Act has been the

A) Political fallout in the Congress
B) Outsourcing of jobs in lower wage countries
C) Super growth in accounting firms in the U.S.
D) Restructuring of the governance structure of American corporations

Question 59

Recent research has found that,on balance,______ relationships can be expected from CSR.

A) Negative
B) Positive
C) No
D) Inverse

Question 60

A form of engagement in which companies provide on-going and sustained commitments to a social project or issue refers to

A) CSI
B) CSR
C) Social audit
D) Economic responsibilities

Question 61

Managers who take the ______ approach judge how consistent actions are with equity,fairness and impartiality in the distribution of rewards and costs among individuals and groups.

A) Social justice
B) Economic man
C) Moral rights
D) Utilitarian

Question 62

Which of these approaches is also referred to as deontology?

A) Utilitarian
B) Moral rights
C) Economic man
D) Social Justice

Question 63

Which of these is NOT an implementing principle essential to the social justice approach?

A) Distributive-justice
B) Fairness
C) Liberty
D) Natural duty

Question 64

In which of the principles of successful collaborative social initiatives is a mutually beneficial relationship created between the partners?

A) Contribute specialized services to a large-scale undertaking
B) Identify a long-term durable mission
C) Contribute "what we do"
D) Assemble and value the total package of benefits

Question 65

Ethics refers to

A) Economic principles
B) Moral principles
C) Legal principles
D) Political principles

Question 66

Managers who adopt the ______ approach judge the effects of a particular action on the people directly involved,in terms of what provides the greatest good for the greatest number of people.

A) Economic man
B) Utilitarian
C) Moral rights
D) Social justice

Question 67

Which of these is NOT a principle of successful collaborative social initiatives?

A) Eliminate government influence
B) Leverage core capabilities: contribute - "what we do"
C) Identify a long-term durable mission
D) Contribute specialized services to a large scale undertaking

Question 68

The term social initiative describes initiatives that take a

A) Collaborative approach
B) Combative approach
C) Corporate approach
D) Global approach

Question 69

When Starbucks sources much of its bean supply directly from producers,thereby ensuring that those farmers receive fair compensation without being exploited by powerful middlemen,it is an example of which CSI principle?

A) Weigh government influence
B) Hiring, motivation and retention
C) Contribute "what we do"
D) Building and cementing valuable partnerships

Question 70

With regards to CSR business have all of these support options except:

A) Donation of cash or material
B) Creation of a functional operation within the company to assist explained charitable efforts
C) Development of a collaborative approach
D) Outsource the function to a competitor

Question 71

According to the _____ principle,individuals should not be treated differently on the basis of arbitrary characteristics such as race,sex,religion or national origin.

A) Natural duty
B) Difference
C) Fairness
D) Distributive-justice

Question 72

Beyond enhanced reputation,CSR activities

A) Have been found to be a total resource drain
B) Potentially have no other impact in an organization
C) Can be a tool to attract, retain and develop managerial talent
D) Have been responsible for bailing firms from regulatory compliance

Question 73

At present,the public's perception of the ethics of corporate executives in America is

A) Near its all-time low
B) At the highest level
C) Moderately high
D) Non-existent

Question 74

Philanthropy without active engagement

A) Is the best corporate move to satisfy the governmental regulations
B) Helps organizations win the competitive war on consumerism
C) Has been criticized as narrow and self-serving
D) Is like mission without vision

Question 75

Managers who subscribe to the ______ approach judge whether decisions and actions are in keeping with the maintenance of fundamental individual and group rights and privileges.

A) Utilitarian
B) Social justice
C) Economic man
D) Moral rights

Question 76

Which of these is NOT an ethical approach for executives to consider?

A) The utilitarian approach
B) The moral rights approach
C) The Sarbanes-Oxley approach
D) The social justice approach

Question 77

The utilitarian approach focuses on

A) Motives
B) Feelings
C) Actions
D) Reactions

Question 78

Which of these is a social challenge that will demand attention for years to come?

A) Competitive environment
B) Police brutality
C) Corporate profitability
D) Substandard education

Question 79

Which principle holds that social and economic inequities must be addressed to achieve a more equitable distribution of goods and services?

A) Liberty
B) Difference
C) Distributive-justice
D) Fairness

Question 80

For the past 28 years ABC,Inc.has made a significant investment of time,money and other resources to increase the literacy rate in adult Americans.This represents which of these principles of successful collaborative social initiatives?

A) Weight government influence
B) Identify a long-term durable mission
C) Assemble and value the total package of benefits
D) Leverage core capabilities