Question 1

Rule-based governance

Accepted Answer

Rule-based governance relies on rules and regulations that are publicly verifiable and transparent. This means that the information used in decision-making is available to the public and can be evaluated for fairness and consistency. This type of governance is often used in developed nations where there is a greater emphasis on transparency and accountability. Implicit agreement (C) is more commonly associated with traditional or informal governance systems. Non-transparency (D) is generally seen as a weakness in governance, regardless of the type. Investment in building relationships (E) may be necessary for effective governance, but it is not a defining characteristic of rule-based governance. Developing nations (A) may or may not use rule-based governance systems.

Question 2

All of the following are considered primary stakeholders EXCEPT

Accepted Answer

While governments may have a significant impact on a company's operations and performance, they are not typically considered primary stakeholders in the traditional sense. Primary stakeholders are those who have a direct relationship with the company and who are essential to its success, such as customers, employees, shareholders, and creditors.

Question 3

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

Accepted Answer

The example of guaranteeing to maximize resource productivity and reducing the average payback period of investment is not provided as an organizational benefit received from being socially responsible in the given options.

Question 4

The first step in stakeholder analysis is to

Accepted Answer

The first step in stakeholder analysis is to identify primary stakeholders, or those groups or individuals who have a direct interest in the corporation and its activities. This helps to focus the analysis on those stakeholders who are most likely to be affected by strategic decisions and who have the most influence over the corporation.

Question 5

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 6

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 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 specifically cites Johnson & Johnson as an example of a company that considers its responsibilities to its primary and secondary stakeholders. In fact, the company has a well-known credo that emphasizes putting the needs of customers and other stakeholders first.

Question 8

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 analogy of frogs in boiling water to explain why executives at Enron engaged in unethical and illegal actions. The analogy suggests that just like a frog in boiling water, the executives' moral compass was gradually compromised until they found themselves in a morally compromised position.

Question 9

Being socially responsible

Accepted Answer

Being socially responsible can have a positive impact on a company's overall reputation, its standing in local communities, its relationship with consumers, and even its financial performance. Therefore, all of the above options are correct.

Question 10

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 11

The Dow Jones Sustainability Index includes

Accepted Answer

The Dow Jones Sustainability Index includes three dimensions of sustainability - environmental, economic, and social. Therefore, option C is the best choice.

Question 12

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

Accepted Answer

Providing daycare centers to employees goes beyond the basic economic, legal, and justice responsibilities of a company. It falls under the discretionary or philanthropic responsibility of a company, which involves contributing to the overall betterment of society.

Question 13

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 14

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 15

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.

Question 16

Friedman's position on social responsibility

Accepted Answer

The answer of Friedman's position on social responsibility
...

Question 17

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 2011 National Business Ethics Survey, 45% of employees surveyed had witnessed misconduct at work, while only 65% of those individuals reported it.

Question 18

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

Accepted Answer

As societal values change and progress, what may have been optional or discretionary responsibilities yesterday may be regarded as ethical obligations today. For example, companies that promote diversity and support the LGBTQ+ community may have been seen as discretionary actions just a few decades ago, but now they are viewed as necessary ethical practices in a socially responsible business.

Question 19

Which of the following statements is true concerning secondary stakeholders?

Accepted Answer

All of the statements are true concerning secondary stakeholders. They have an indirect stake in the corporation, may include non-governmental organizations and trade associations, lack written or verbal agreements with the corporation, and may not be systematically monitored like competitors.

Question 20

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

Accepted Answer

For a business to be sustainable, it must satisfy all four of Carroll's responsibilities which include economic, legal, ethical, and discretionary responsibilities. The economic responsibility involves maximizing profits and providing a return on investment to shareholders. The legal responsibility involves complying with all applicable laws and regulations. The ethical responsibility involves doing what is right, just, and fair while avoiding harm to stakeholders. Finally, the discretionary responsibility involves contributing to the well-being and improvement of society. Therefore, the best choice is E as all of the above fulfill the criteria for a sustainable business.

Quiz 3: Ethics and Social Responsibility in Strategic Management