Question 1

Which of the following statements is true concerning secondary stakeholders?

Accepted Answer

All of the statements provided are true regarding secondary stakeholders. They are indirectly affected by the corporation's activities, can include NGOs and trade associations, relationships with them are often not formalized, and they may not be systematically monitored by the corporation.

Question 2

The Dow Jones Sustainability Index includes

Accepted Answer

The Dow Jones Sustainability Index includes environmental sustainability, economic sustainability, and social sustainability. Environmental sustainability focuses on reducing negative environmental impacts, economic sustainability focuses on financial stability and growth, and social sustainability focuses on social responsibility and community development. These three pillars are commonly known as the Triple Bottom Line of sustainability.

Question 3

All of the following are considered secondary stakeholders EXCEPT

Accepted Answer

Suppliers are considered primary stakeholders as they have a direct relationship and impact on the business operations.

Question 4

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 if a frog is placed in boiling water, it will immediately jump out, but if it is placed in cold water that is slowly heated, it will not notice the temperature change and eventually boil to death. Similarly, Watkins argued that Enron executives became acclimated to unethical behavior over time, to the point where they did not even notice how far they had strayed from ethical business practices.

Question 5

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

Accepted Answer

To be sustainable, a business must not only fulfill its economic and legal responsibilities (generating profits, following laws and regulations), but also its ethical responsibility (treating stakeholders fairly and with respect) and discretionary responsibility (actively participating in socially responsible initiatives). Therefore, all of these responsibilities must be satisfied.

Question 6

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 7

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 cited Johnson & Johnson as an example of a company that considers its responsibilities to primary and secondary stakeholders when making strategic decisions. The company famously prioritizes customer safety and satisfaction, which has led to decisions like the recall of tainted Tylenol in the 1980s.

Question 8

Providing day-care centers to employees is an example of which of Carroll's responsibilities?

Accepted Answer

The answer of Providing day-care centers to employees is an...

Question 9

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

Executives often cite multiple reasons for bending rules, including organizational performance needs, ambiguous or outdated rules, commonality of the behavior, and pressure from others.

Question 10

According to a recent Harris Poll what percentage of U.S.adults believe that U.S.corporations owe something to their workers and the communities in which they operate and that they should sometimes sacrifice some profit for making things better for their workers and communities?

Accepted Answer

According to the Harris Poll, 95% of U.S. adults believe that corporations owe something to their workers and communities and should sometimes sacrifice profit for their betterment.

Question 11

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

Accepted Answer

As societal values evolve, what was once considered discretionary (or optional) may become an ethical responsibility. For example, 50 years ago it may have been optional for a company to recycle and reduce waste, but now it is considered an ethical responsibility to take care of the environment.

Question 12

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. Option C is the only choice that matches this finding.

Question 13

Friedman's position on social responsibility

Accepted Answer

Friedman's position, which emphasizes maximizing shareholder value, is increasingly being challenged by business executives who are adopting broader views of corporate responsibility.

Question 14

The Ethics Resource Center found that the percentage of employees who had engaged in one or more unethical and/or illegal actions during the past year was

Accepted Answer

The Ethics Resource Center reported that 48% of employees had engaged in one or more unethical and/or illegal actions during the past year.

Question 15

The first step in stakeholder analysis is to

Accepted Answer

The first step in stakeholder analysis is to identify primary stakeholders. Primary stakeholders are those who are directly affected by the company’s actions and decisions, such as customers, employees, shareholders, suppliers, and local communities. Once primary stakeholders are identified, the analysis can move on to assessing their interests and influence on the company.

Question 16

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 listed (A, B, C, and E) are all examples of organizational benefits received from being socially responsible. Option D does not relate to the benefits of being socially responsible.

Question 17

Being socially responsibility

Accepted Answer

Being socially responsible provides a company with a more positive overall reputation, opens doors in local communities, enhances the company's reputation with consumers, and can even result in cost savings to firms. Therefore, all of the above choices are correct.

Question 18

Rule-based governance

Accepted Answer

Rule-based governance relies on publicly verifiable information, meaning that the rules are clear and transparent and can be easily verified by the public. This is different from implicit agreement, which relies on unspoken understanding and can be subject to interpretation. Rule-based governance is not necessarily found only in developing nations, and while it may require an investment in time and money to establish, it is not inherently nontransparent.

Question 19

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

Accepted Answer

Surfing the web on company time was not cited as one of the most common questionable behaviors in the survey by the Ethics Resource Center.

Question 20

All of the following are considered primary stakeholders EXCEPT

Accepted Answer

Governments are considered as secondary stakeholders as they are affected by the actions of the company but do not directly engage in transactions with the company. The primary stakeholders of a company include customers, employees, shareholders, and creditors.

Quiz 3: Ethics and Social Responsibility in Strategic Management