Question 1

In 2011, the Ethics Resource Center found that ________ percent of employees surveyed had witnessed misconduct at work and ________ percent had reported it.

Accepted Answer

According to the Ethics Resource Center's survey conducted in 2011, 45% of employees had witnessed misconduct at work, but only 65% of those employees had reported it.

Question 2

Rule-based governance

Accepted Answer

Rule-based governance relies on publicly verifiable information, meaning that decisions are based on objective criteria that can be evaluated by anyone. This promotes transparency and accountability, which are important components of effective governance. Rule-based governance can be found in both developed and developing nations, and does not necessarily require an investment in time and money to build relationships. Implicit agreement and non-transparency are not inherent characteristics of rule-based governance.

Question 3

The first step in stakeholder analysis is to

Accepted Answer

The first step in stakeholder analysis is to identify the primary stakeholders, who are those individuals or groups who have a direct stake in the organization and can influence or be influenced by its actions. Without identifying these primary stakeholders, it is not possible to conduct an effective stakeholder analysis.

Question 4

A 2012 survey of 169 CFOs at publicly traded companies in the United States found what percent intentionally misrepresented their economic performance primarily to influence stock price?

Accepted Answer

The survey found that 20% of CFOs intentionally misrepresented their economic performance primarily to influence stock price.

Question 5

All of the following are considered primary stakeholders EXCEPT

Accepted Answer

Governments are considered a secondary stakeholder because they are affected by a company's actions but do not directly engage with the company as customers, employees, shareholders or creditors do.

Question 6

The Dow Jones Sustainability Index includes

Accepted Answer

The Dow Jones Sustainability Index (DJSI) is a benchmark for measuring the sustainability performance of companies globally. The criteria for inclusion in the index are based on three dimensions of sustainability: environmental, economic, and social. Therefore, option C - environmental, economic, and social sustainability - is the best choice. Options A, B, D, and E do not include all three dimensions.

Question 7

Which of the following is NOT one of the examples provided as an organizational benefit received from being socially responsible?

Accepted Answer

The other options are all benefits that can result from a company being socially responsible. However, there is no guarantee that being socially responsible will lead to maximizing resource productivity and reducing the average payback period of investment. While it is possible that a socially responsible approach could lead to greater efficiency and cost savings over time, there are many factors that can affect resource productivity and payback periods, and simply being socially responsible does not guarantee these outcomes.

Question 8

Which of the following companies was cited by the text as an example of a company which does its best to consider its responsibilities to its primary and secondary stakeholders when making strategic decisions?

Accepted Answer

The text specifically cited Johnson & Johnson as an example of a company which considers its responsibilities to primary (customers, employees, shareholders) and secondary stakeholders (suppliers, communities, government) in its strategic decision making.

Question 9

As opposed to rule-based countries, relationship-based countries tend to

Accepted Answer

In relationship-based countries, business and governmental affairs often depend more on personal relationships and networks than on formal rules and procedures. This can lead to less transparency, as decisions are made based on personal connections rather than transparent criteria. It can also lead to a higher degree of corruption, as the reliance on personal relationships can facilitate corrupt practices.

Question 10

Which of the following statements is True concerning secondary stakeholders?

Accepted Answer

All of the statements are true concerning secondary stakeholders.

Question 11

As societal values evolve, it is likely that the ________ responsibilities of today may become the ________ responsibilities to tomorrow.

Accepted Answer

Discretionary responsibilities refer to voluntary responsibilities that a company takes on, beyond what is required by law or economics. As societal values evolve, what was once considered discretionary may become the new ethical standard that companies are expected to follow. Economic and legal responsibilities are more fixed, as they are driven by business realities and legal requirements that are less likely to change as quickly as societal values.

Question 12

According to a 2011 survey by the Ethics Resource Center, which was NOT cited as one of the most common questionable behaviors that employees engage in?

Accepted Answer

The answer of According to a 2011 survey by the...

Question 13

All of the following are considered secondary stakeholders EXCEPT

Accepted Answer

Suppliers are considered primary stakeholders because they directly engage in transactions with the company, providing essential goods and services needed for the company's operations.

Question 14

Being socially responsible

Accepted Answer

Being socially responsible can provide a company with a more positive overall reputation, open doors in local communities, enhance the company's reputation with consumers, and may have a positive effect on the firm's financial performance. Therefore, all of the options listed are correct.

Question 15

In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities?

Accepted Answer

In order for a business to be sustainable, it must satisfy all four of Carroll's responsibilities, which include economic, legal, ethical, and discretionary responsibilities. These responsibilities are interdependent and necessary for a business to operate in a sustainable and socially responsible way.

Question 16

Providing daycare centers to employees is an example of which of Carroll's responsibilities?

Accepted Answer

Providing daycare centers to employees is an example of discretionary responsibility, as it goes beyond economic, legal, and ethical obligations and is a voluntary action to improve employee welfare.

Question 17

Of the six values measured by the Allpot-Vernon-Lindzey Study of Values test, both U.S. and British executives consistently score highest on ________ values and lowest on ________ values.

Accepted Answer

According to the Allport-Vernon-Lindzey Study of Values test, U.S. and British executives consistently score highest on economic and political values, and lowest on social and religious values. Therefore, option C is the best choice as it matches these results accurately. Option A is incorrect because while executives score high on theoretical values, they do not score high on religious values, so only one of the two choices is correct. Option B is incorrect because executives do not score consistently high on economic values, and they do not score low on political values. Option D is incorrect because executives do not score low on aesthetic values; they score low on religious values. Option E is incorrect because only one of the two choices is correct - executives score high on economic but do not score high on religious values alone.

Question 18

Which of the following is one of the most common reasons given by surveyed executives for bending the rules to attain their objectives?

Accepted Answer

The answer of Which of the following is one of...

Question 19

Former Enron Vice President Sherron Watkins used the ________ analogy to explain why executives at Enron engaged in unethical and illegal actions.

Accepted Answer

Sherron Watkins used the frogs in boiling water analogy to explain why executives at Enron engaged in unethical and illegal actions. The analogy suggests that like frogs in boiling water who don't realize the gradual increase in temperature, Enron executives didn't realize the gradual decrease in ethical standards until it was too late.

Question 20

Friedman's position on social responsibility

Accepted Answer

Friedman's position, which emphasizes profit maximization as the primary responsibility of businesses, is increasingly being challenged by modern business executives who are adopting broader views on corporate social responsibility.

Quiz 3: Ethics and Social Responsibility in Strategic Management

In 2011, the Ethics Resource Center found that percent of employees surveyed had witnessed misconduct at work and percent had reported it.