Deck 3: Social Responsibility, Ethics, and Strategic Planning

Question 1

Laws geared toward consumer protection became popular when Ralph Nader started the consumer
protection movement in the early 1960s.

Answer 1

True

Question 2

A code of ethics is a formal statement of the long-range goals and plans for a company.

Answer 2

False

Question 3

Innovation is the ability to do a lot with a little, gather needed resources, and build an organization.

Answer 3

False

Question 4

Strategic planning is the process of identifying the mission, goals, and objectives of a business.

Question 5

Over the past several years, the term social entrepreneur has emerged as a way to describe the use of business skills to marshal resources.

Question 6

Philanthropy is the bottom level of the social responsibility pyramid.

Question 7

A code of ethics that is supported and enforced by management will become a part of a company's culture.

Question 8

Virtue ethics deals with the consequences of one's own actions.

Question 9

When it comes to a code of ethics, companies should take a "three Ps" approach: Print it, post it, pray they read it.

Question 10

The mission statement is the foundation on which all other goals and strategies of a business are based.

Question 11

Social responsibility refers to the rules of moral values that guide decision-making.

Question 12

Social responsibility is the obligation of a business to maximize the positive impact it has on society and to minimize the negative impact.

Question 13

The long-term planning tools used for viewing a business and its environment in the broadest of terms are known as the operational plan.

Question 14

According to the Reality Check box titled "Green Can Be Gold," efforts of businesses to act in a socially responsible manner toward the environment are known as environmental marketing.

Question 15

Changes in ethical standards and values usually precede changes in laws.

Question 16

The last step in the strategic planning process involves the establishment of control systems.

Question 17

Milton Friedman emphasizes the philanthropic side of social responsibility.

Question 18

The philanthropic goodwill level on the social responsibility pyramid is concerned with a company's obligation to be ethical and to do what is right, just, and fair.

Question 19

Historically, the primary role of business has been economic.

Question 20

A hostile work environment in which work is unreasonably difficult is defined as a type of sexual harassment by the EEOC.

Question 21

A competitive advantage is the advantage that a business has over its competitors.

Question 22

An effective mission statement balances ideas and reality.

Question 23

A competitive advantage need not be sustainable in order to remain an advantage.

Question 24

External analysis assesses the strengths and weaknesses of a company.

Question 25

There is little connection between strategic planning and social responsibility.

Question 26

The step of strategic planning in which the manager identifies strengths, weaknesses, opportunities, and threats is known as environmental analysis.

Question 27

A competitive advantage must be sustainable over time in order to be a benefit to the business.

Question 28

Competitive advantage must be defined from the customer's perspective.

Question 29

If a small business cannot sustain a competitive advantage, the best recommendation is to view the business as a short-term investment rather than a long-term enterprise.

Question 30

When looking for a competitive advantage, one of the best tools for survival is looking at the mistakes of other businesses.

Question 31

An analysis of the external environment identifies opportunities and threats faced by a business.

Question 32

A company's competitive advantage could be defined as being the two things that the company does best that set it apart from the competition.

Question 33

A competitive advantage is relative, not absolute.

Question 34

The three generic competitive strategies by which a business can gain competitive advantage are lowering costs, differentiation, and focus strategies.

Question 35

The ability to adapt to change is a major determinant of business success or failure in a free enterprise system.

Question 36

The heart of the strategic planning process is the mission statement.

Question 37

Having a competitive advantage is critical. Businesses must do something better than the competition.

Question 38

A competitive advantage will cause customers to be more satisfied with one business, resulting in increased market share for that business.

Question 39

A small business may be significantly more affected by an environmental change than a larger business would be.

Question 40

Competitive advantage as a core of small business strategy is critical, but the inertia of the marketplace may also be relied on for survival.

Question 41

Small businesses concentrate on niches or narrow market segments.

Question 42

The Civil Rights Act of 1964 was established to provide what type of protection within the legal environment?

A) Consumer protection
B) Trade protection
C) Environmental protection
D) Employee protection

Question 43

Wilma has been described by others as a good corporate citizen. She contributes to the community by volunteering through her church and she strives to improve the quality of life in everyone she meets. Wilma possesses qualities within which level of the social responsibility pyramid?

A) Philanthropic goodwill
B) Ethical responsibility
C) Legal obligations
D) Economic responsibility

Question 44

Planning for the future is an exact science.

Question 45

Business plans and strategic plans support each other but accomplish different purposes.

Question 46

Focus strategies target a broad segment of the market.

Question 47

Which concept refers to the fact that a business has the obligation to impact society on four levels-economic, legal, ethical, and philanthropic?

A) Business responsibility
B) Moral obligation
C) Social responsibility
D) Ethical responsibility

Question 48

Strategic planning is providing the ________ game plan for a business.

A) Near-term
B) Long-term
C) Short-term
D) Intermediate-term

Question 49

Which level of social responsibility centers on making sure creditors are paid, a strong competitive advantage is maintained, and operations are efficient?

A) Economic responsibility
B) Legal responsibility
C) Ethical responsibility
D) Philanthropic responsibility

Question 50

The Sherman Antitrust Act was established to provide what type of protection within the legal environment?

A) Consumer protection
B) Trade protection
C) Environmental protection
D) Employee protection

Question 51

Art has always played by the rules and obeyed the law. He believes that law is society's codification of right and wrong. Art possesses qualities within which level of the social responsibility pyramid?

A) Philanthropic goodwill
B) Ethical responsibility
C) Legal obligations
D) Economic responsibility

Question 52

The obligation of business to maximize the positive impact it has on society while minimizing the negative impact is called

A) Moral obligation
B) Business responsibility
C) Business ethics
D) Social responsibility

Question 53

The obligations of a business to maximize the positive effects it has on society and minimize the negative effects is referred to as

A) Ethics
B) Social responsibility
C) Strategic planning
D) Sustainability

Question 54

Differentiation means that a product or service is different than the product or service of the competition.

Question 55

As shown in Figure 3.1, which responsibility is at the highest level on the social responsibility pyramid?

A) Economic responsibility
B) Legal responsibility
C) Ethical responsibility
D) Philanthropic responsibility

Question 56

The view that a business must make a profit in order to survive and make other contributions is known as

A) Economic responsibility
B) Legal responsibility
C) Ethical responsibility
D) Philanthropic responsibility

Question 57

A single method to continuously differentiate a product will sustain a competitive advantage.

Question 58

_________ is a set of shared beliefs within an organization.

A) Ethics
B) Social responsibility
C) Strategic planning
D) Culture

Question 59

The level of social responsibility that has historically been the focus of business is

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

Question 60

The most difficult part of strategic planning is drafting a list of alternatives.

Question 61

Which level of social responsibility is concerned with a business doing well without the expectation of anything in return?

A) Economic responsibility
B) Legal obligations
C) Ethical responsibility
D) Philanthropic goodwill

Question 62

Consumer protection involves which of the following?

A) Setting safety standards and regulations for food and drugs
B) Enforcing laws that prevent monopolies
C) Setting minimum standards for air, water, and noise
D) Enforcing laws preventing discrimination

Question 63

The level of responsibility that leads to obedience of the law is what level of social responsibility?

A) Economic responsibility
B) Legal obligation
C) Ethical responsibility
D) Philanthropic goodwill

Question 64

The obligation of individuals and businesses to do what is right is known as

A) Economic responsibility
B) Legal responsibility
C) Ethical responsibility
D) Philanthropic responsibility

Question 65

In order to ensure a small business is free of sexual harassment, all but which of the following should be done?

A) Have a clearly written policy prohibiting sexual harassment
B) Hold mandatory training programs on policies and prevention
C) Implement a program to be used if complaints are received
D) Ignore complaints until the manager is certain a real problem exists

Question 66

A small business sponsoring a Little League team for the summer would be an example of which level of social responsibility?

A) Economic
B) Legal obligations
C) Ethical
D) Philanthropic goodwill

Question 67

Philanthropic activity is best suited to

A) Small companies
B) Medium-sized companies
C) Large corporations
D) Any sized company

Question 68

Which of the following does not apply to an ethical code that is written for a small business?

A) It should be written concisely and clearly.
B) It should apply equally to all employees.
C) It should be a reflection of the small business owner's ideals and beliefs.
D) It should not be included in an employee handbook.

Question 69

Economist Milton Friedman emphasized the fact that business had "one and only one social responsibility," that being

A) Economic responsibility
B) Legal responsibility
C) Ethical responsibility
D) Philanthropic responsibility

Question 70

________ is the ability to last and produce results into the future.

A) Sustainability
B) Innovation
C) Social impact
D) Entrepreneurship

Question 71

As a business manager, Sally focuses on employing only those individuals who have a strong character of honesty and integrity. This aligns most closely with which ethical perspective?

A) Idealism
B) Utilitarianism
C) Deontology
D) Virtue ethics

Question 72

The EPA was created to enforce laws regarding which regulations pertaining to business?

A) Consumer protection laws
B) Laws to protect competition
C) Laws to protect the environment
D) Laws to prevent discrimination

Question 73

A tool with which the owner of a business communicates ethical expectations to everyone associated with the business is called a

A) Code of conduct
B) Tool of ethics
C) Code of ethics
D) Tool of conduct

Question 74

The big idea that represents a dramatic leap from any solution that has existed previously is referred to as

A) Entrepreneurship
B) Social impact
C) Innovation
D) Aspiration

Question 75

Dealing with the consequences of one's own actions is referred to as

A) Idealism
B) Utilitarianism
C) Deontology
D) Virtue ethics

Question 76

The company New Leaf develops and sells eco-friendly paper in an industry that is notorious for both severe environmental impact and resistance to change. This company can be viewed as

A) Socially responsible
B) Economically responsible
C) Legally responsible
D) Fiscally responsible

Question 77

As seen in Figure 3.2, entrepreneurs typically have higher standards concerning unacceptable behavior than

A) Politicians
B) Lawyers
C) Clergy
D) Big business managers

Question 78

Philanthropic goodwill would be concerned with which of the following?

A) Reasonable profit
B) Meeting the legal requirements of all laws dealing with discrimination
C) Meeting obligations to society
D) Improving quality of life and promoting goodwill

Question 79

The rules of moral values that guide decision making, or one's understanding of right or wrong, are referred to as

A) Cultural values
B) Business ethics
C) Mission and vision
D) Social norms

Question 80

The minimum threshold of socially expected business behavior is which two levels of social responsibility?

A) Economic and philanthropic
B) Economic and legal
C) Ethical and legal
D) Ethical and philanthropic