Deck 10: Business Ethicssocial Responsibilityenvironmental Sustainability

Question 1

Sustainability refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment.

Answer 1

True

Question 2

Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior.

Answer 2

True

Question 3

Primary responsibility for ensuring ethical behavior rests with middle- and low-level managers, since they are in a position to influence many employees.

Answer 3

False

Question 4

Most firms warn managers and employees that reporting an ethical violation by others, also known as whistle-blowing, could cause them to be discharged.

Question 5

More and more firms believe that ethics training and an ethics culture create strategic advantage.

Question 6

A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.

Question 7

Whistle-blowing refers to policies that require employees to report any unethical violations they discover or see in the firm.

Question 8

Many people consider it unethical for a firm to be socially irresponsible.

Question 9

A new wave of ethics issues has accentuated the need for strategists to develop a clear code of business ethics.

Question 10

Social responsibility refers to actions an organization takes that are legally required to protect or enhance the well-being of living things.

Question 11

History has proven that the lower the trust and confidence of people in the ethics of an institution or society, the greater its economic strength.

Question 12

Some of the largest payouts for class-action legal fraud suits ever were against Enron ($7.16 billion) and WorldCom ($6.16 billion).

Question 13

Good ethics is not a prerequisite for good strategic management.

Question 14

Having a code of ethics ensures ethical business behavior.

Question 15

Moving jobs overseas is not considered to be an unethical business practice.

Question 16

CEOs and business owners delegate the responsibility for ensuring that high ethical principles are espoused and practiced in an organization.

Question 17

Periodic ethics workshops can help sensitize people to workplace circumstances in which ethics issues may arise.

Question 18

Dumping banned or flawed products in foreign markets is considered to be an unethical business practice.

Question 19

According to a study by the Institute of Business Ethics, companies that do not display ethical conduct consistently outperform companies that show a clear commitment to ethical conduct.

Question 20

Bad ethics can derail all but the best strategic plans.

Question 21

In some foreign countries, paying bribes and kickbacks is acceptable.

Question 22

The EEOC recovered $376 million on behalf of office romance victims in 2009.

Question 23

Some strategists agree with Ralph Nader, who asserts that organizations have no obligation to do any more for society than is legally required.

Question 24

A bribe is a gift bestowed to influence another's conduct.

Question 25

Integrating ethical decision making into the performance appraisal process is one way that firms can align ethical and strategic decision making.

Question 26

The first social responsibility of any business must be to make enough profit to cover the costs of the future because if this is not achieved, no other social responsibility can be met.

Question 27

Ralph Nader believes that big firms like ExxonMobil, which has more assets than most countries, have an obligation to help society cure its many ills.

Question 28

Firms should strive to engage in social activities that have no economic benefits, to avoid their being viewed as public relations ploys.

Question 29

In 2011, Fortune magazine cited Kirin Holdings, Carlsberg, and Asahi Breweries as the three least admired companies from a social responsibility perspective.

Question 30

Social policy concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

Question 31

After decades of debate and struggle, firms have finally definitively determined the appropriate social policies.

Question 32

Corporate social policy should be reaffirmed or changed during strategy implementation.

Question 33

In Europe, romantic relationships at work are frowned upon, and most firms have policies prohibiting the practice.

Question 34

A recent Wall Street Journal article reported that 80 percent of all firms sampled had no restrictions on relationships between a supervisor and a subordinate.

Question 35

In 2011, Walt Disney, Starbucks, and Fiat were the three most admired socially responsible companies according to Fortune magazine.

Question 36

Corporate social policy should be designed and articulated during strategy formulation.

Question 37

Monitoring departmental and corporate performance regarding ethical issues can cause firms to misalign ethical and strategic decision making.

Question 38

European firms are increasingly adopting explicit, American-style sexual harassment laws.

Question 39

Royal Dutch Shell PLC and several other companies recently paid a combined $236 million settlement due to allegations that they bribed foreign officials.

Question 40

In order to be considered bribery, the gift offered must be either money or a physical item.

Question 41

The ISO 14000 family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance.

Question 42

Sustainability reports reveal how a firm's operations impact the natural environment.

Question 43

New Jersey's goal is to obtain 3 percent of its electricity from the sun and 12 percent from offshore wind by 2020.

Question 44

Alternative-energy firms are struggling to find new customers, since the federal stimulus package failed to include adding alternative-energy infrastructure.

Question 45

Like the United States, Japan is eager to rely on large-scale immigration to bolster its workforce.

Question 46

ISO, the world's largest developer of sustainability standards, is legally authorized to enforce their standards.

Question 47

Japan is providing incentives for its elderly to work until ages 65 - 75.

Question 48

While it is socially responsible to be a good steward of the natural environment, doing so will not enable a firm to gain competitive advantage.

Question 49

Some ways in which firm's are working to be more environmentally responsible include using solar power and selling organic and environmentally friendly products.

Question 50

Unlike the U.S., Japan has no law against discrimination based on age.

Question 51

Corporate recruiters are interested in hiring students who will help their firms find solutions to societal challenges, but they are having trouble finding students with these skills.

Question 52

Companies such as Wal-Mart are now monitoring not only the prices its vendors offer for products, but also how those products are made in terms of environmental practices.

Question 53

The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and Germany.

Question 54

California is the nation's second-largest producer of solar energy.

Question 55

The percentage of persons age 65 or older will reach 20 percent in the United States in 2018.

Question 56

ISO 14001 is a technical standard and as such replaces technical requirements embodied in statutes or regulations.

Question 57

Firms can continue to get away with placing "green" terminology on their products and labels because there are still no legal or generally accepted definitions of terms like "organic," "green," "safe," or "earth-friendly."

Question 58

Orphan drugs offer pharmaceutical companies no economic incentive for profitable development and distribution.

Question 59

Employee wellness cannot be a part of sustainability.

Question 60

General Electric achieved $20 billion in sales by 2011 in eco-friendly technologies.

Question 61

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies with

A) only a firm's strategists.
B) only a firm's managers.
C) only a firm's shareholders.
D) both a firm's strategists and its managers.
E) neither a firm's strategists nor its managers.

Question 62

_______ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization.

A) Non-management employees
B) Mid-level managers
C) Shareholders
D) Strategists such as CEOs and business owners
E) Governmental regulatory bodies

Question 63

More and more firms believe that ethics training and an ethics culture

A) are socially irresponsible.
B) are admirable but damage a firm's competitive positioning.
C) are costly and provide no practical benefit to the company.
D) create strategic advantage.
E) can tarnish the reputation of a firm.

Question 64

________ refers to policies that require employees to report any unethical violations they discover or see in the firm.

A) Whistle-blowing
B) Bribery
C) Adultery
D) Sustainability
E) Stewardship

Question 65

Simply having a code of ethics

A) will ensure ethical business behavior.
B) eliminates the need for periodic ethics workshops.
C) is all that is necessary to sensitize people to workplace circumstances in which ethics issues may arise.
D) is insufficient to guarantee that employees behave in an ethical manner.
E) secures an ethics culture in the workplace.

Question 66

Which of the following business actions is considered to be unethical?

A) Satisfactory product or service safety
B) Selling products in foreign markets
C) Providing equal opportunities for women and minorities
D) Filing expense accounts
E) Misleading labeling

Question 67

Which of the following companies ranks among those against whom some of the largest payouts for class-action legal fraud suits ever were judged?

A) AOL Time Warner
B) Walt Disney
C) Starbucks
D) Herman Miller
E) Edison

Question 68

Under the U.S. Dodd-Frank Act, employees are encouraged to report possible acts of bribery and are awarded ________ percent of any financial sanctions against companies.

A) 5-10
B) 10-30
C) 25-30
D) 30-40
E) 40-60

Question 69

All of the following business actions are considered to be unethical EXCEPT

A) moving jobs overseas
B) preventing environmental harm
C) overpricing
D) sexual harassment
E) insider trading

Question 70

A highly ethical company that does an excellent job on social responsibility and environmental sustainability issues, GM spent ________ million in the last quarter of 2010 to give its U.S. union employees profit-sharing payments.

A) $42
B) $135
C) $200
D) $339
E) $500

Question 71

Sustainability refers to the extent that an organization's operations and actions _______ the natural environment.

A) protect
B) mend
C) preserve
D) reflect good stewardship of
E) All of the above

Question 72

Bribery involves

A) bestowing a gift to influence the recipient's conduct.
B) requiring employees to report any unethical violations they discover or see in the firm.
C) prohibiting love affairs between bosses and their subordinates.
D) encouraging firms to play a role in curing society of its ills.
E) forcing companies to take responsibility for the impact their actions have on society.

Question 73

A code of business ethics is

A) a document that provides behavioral guidelines that cover daily activities and decisions within an organization.
B) concerned with what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, and other groups.
C) a report that reveals how the firm's operations impact the natural environment.
D) a set of strict regulations requiring firms to conserve energy.
E) a series of voluntary standards in the environmental field.

Question 74

Business ethics, _______, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model.

A) social responsibility
B) social networking
C) fiscal irresponsibility
D) cultural indifference
E) None of the above

Question 75

Unethical activities that plague online commerce include all of the following EXCEPT

A) inappropriate gifts
B) spreading viruses
C) identity theft
D) internet fraud
E) hacking into company computers

Question 76

The U.S. Justice Department is ________ bribery.

A) increasing its prosecutions of
B) relaxing its opposition to and regulations against
C) employing a "don't ask, don't tell" philosophy toward
D) indifferent to
E) accepting of different cultural attitudes toward

Question 77

Which of the following is NOT a way that companies can help create an ethical culture in their organization?

A) Outlining ethical expectations
B) Giving examples of ethical situations that commonly occur in their businesses
C) Providing code-of-conduct manuals
D) Creating interactive exercises that pose hypothetical ethical dilemmas
E) Discouraging whistle-blowing

Question 78

Bad ethics can _______ strategic plans.

A) derail all but the best
B) derail even the best
C) derail only poorly-intentioned
D) derail only ill-conceived
E) never affect

Question 79

Ethics training programs should contain which of the following?

A) Messages from the CEO or business owner emphasizing ethical business practices
B) The development and discussion of codes of ethics
C) Procedures for discussing unethical behavior
D) Procedures for reporting unethical behavior
E) All of the above

Question 80

Firms can align ethical and strategic decision making by

A) omitting ethical considerations from long-term planning.
B) excluding ethical decision making from the performance appraisal process.
C) discouraging whistle-blowing.
D) monitoring departmental and corporate performance regarding ethical issues.
E) all of the above