Deck 2: Managers, Society, and Sustainability

Question 1

Milton Friedman believed the requirement for managers to be focused on socially responsible actions was ________.

A) unethical
B) ethical
C) rational
D) logical
E) irrational

Answer 1

A

Question 2

Which of the following statements is true about social responsibility?

A) It is the managerial obligation to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem.
B) It is the managerial obligation to cater to the needs of the stockholders, while abiding by the laws of the society.
C) It is the managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization.
D) It is the managerial obligation to abide to societal laws when pursuing organizational goals.
E) It is the managerial obligation to ensure ethical decision making in an organization to benefit its customers.

Answer 2

C

Question 3

Social responsibility is the managerial obligation to take action that protects and improves both the welfare of society and the interests of the organization.

Answer 3

True

Question 4

The guiding premise of the Equal Employment Opportunity Commission is to ensure employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex.

Question 5

Billy has been asking about the pros and cons of social responsibility actions in his new role as Plant Manager. In your role as Vice President of Production, when you meet with him today regarding the firm's new social responsibility initiative, you could best summarize the need for social responsibility activities in the following sentence: "Regardless of which argument or combination of arguments managers embrace, we generally should make a concerned effort to ________ perform social responsibility activities beyond those ________ required."

A) voluntarily; generally
B) generally; legally
C) legally; voluntarily
D) voluntarily; legally
E) legally, generally

Question 6

Identify two of the federal agencies that enforce social responsibility legislation and explain their primary roles.

Question 7

The primary function of the Office of Federal Contract Compliance Programs is to ensure that employers holding federal contracts ________.

A) abide by the safety and health regulations of the Occupational Safety and Health Administration
B) improve safety conditions for workers by enforcing all safety and equipment standards
C) grant equal employment opportunity to people regardless of their race or sex
D) strive to reduce consumer misunderstanding of its products
E) abide by the environmental standards enforced by the Environment Protection Agency

Question 8

Today's managers are said to need to be committed to building an organization's local community and environment while working to accomplish the firm's goals. Which of the following is this statement really saying is the role today's managers need to be involved in during their daily actions?

A) Sustainability manager
B) Social responsibility citizen
C) Community manager
D) Good corporate citizen
E) Citizen for the community

Question 9

Adherence to legislated social responsibilities is the minimum standard of social responsibility performance that business managers must achieve.

Question 10

Today's focus on ecology conservation is known as ________.

A) urban affairs
B) going green
C) consumer affairs
D) green initiative
E) community affairs

Question 11

Empirical studies, conducted by various corporations in the United States, have demonstrated a definitive relationship between social responsibility and profitability.

Question 12

Being socially responsible requires businesses to have both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.

Question 13

Is social responsibility an important part of an organization's management practices? Justify your answer.

Question 14

Which of the following is the primary function of the Equal Employment Opportunity Commission?

A) It ensures that employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex.
B) It strives to reduce consumer misunderstanding of manufacturers' product design, labeling, and so on, by promoting clarity of these messages.
C) It formulates and enforces environmental standards in such areas as water, air, and noise pollution.
D) It regulates safety and health conditions in nongovernment workplaces.
E) It investigates and conciliates employment discrimination complaints that are based on race, sex, or creed.

Question 15

When Mohawk Home Company develops a new line of all natural fiber rugs, the company could be said to be ________.

A) socially redundant
B) socially respectful
C) socially responsible
D) socially obligated
E) socially normed

Question 16

Which of the following is an argument for business performing social responsibility activities?

A) Business institutions, as citizens, have the responsibility to become involved in certain social problems that are outside their normal areas of operation.
B) Social responsibility arises from social power.
C) The social costs and benefits of an activity, product, or service shall be thoroughly calculated and considered in deciding whether to proceed with it.
D) Because business is such an influential member of society, it has the responsibility to help maintain and improve the overall welfare of society.
E) Business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.

Question 17

Which of the following statements best aligns with Milton Friedman's argument against business performing social responsibility activities?

A) Social responsibility compels managers to spend money on some individuals that rightfully belongs to other individuals.
B) Social responsibility is not mandated by law, which means that it has to be done by will, not by compulsion.
C) Empirical studies have not yet demonstrated a definitive relationship between corporate social responsibility and profitability.
D) Profitability and growth go hand-in-hand with responsible treatment of employees, customers, and the community.
E) Firms use social responsibility to increase their brand awareness.

Question 18

Which of the following is the primary function of the Consumer Product Safety Commission?

A) It ensures that employers holding federal contracts abide by the product safety standards.
B) It strives to reduce consumer misunderstanding of manufacturers' product design, labeling, and so on, by promoting clarity of these messages.
C) It formulates and enforces environmental standards in such areas as water, air, and noise pollution.
D) It regulates safety and health conditions in nongovernment workplaces.
E) It investigates product safety concerns prior to the launch of a product.

Question 19

According to the concept of corporate social responsibility, a manager must strive to achieve societal as well as organizational goals.

Question 20

Haroon wants to file a complaint against EatFry, a fast-food restaurant, because he was rejected in a job interview with the firm. Haroon believes that he was discriminated against because of ethnicity. Which of the following federal agencies should he approach?

A) Consumer Product Safety Commission
B) Mining Enforcement and Safety Administration
C) Occupational Safety and Health Administration
D) Environmental Protection Agency
E) Equal Employment Opportunity Commission

Question 21

Managers who have successfully increased the value of the organization have fulfilled their social obligation towards ________.

A) stockholders
B) consumers
C) government agencies
D) employees and unions
E) banks and other lenders

Question 22

Social responsiveness can be defined as ________.

A) the speed at which an organization adapts to the changing societal culture
B) an organization's effectiveness in abiding by the laws of the society
C) the degree of effectiveness and efficiency with which an organization fulfills its stockholders' needs while benefitting the stakeholders
D) the degree of effectiveness and efficiency an organization displays in pursuing its social responsibilities
E) the degree of effectiveness with which an organization can predict the changes in a society, such as the consumers changing preferences

Question 23

Measuring the present socially responsible activities of an organization to assess performance in those areas is known as a/an ________.

A) social check
B) social audit
C) social benchmark
D) social target reading
E) social responsive mark

Question 24

Any individual or group that is directly or indirectly affected by an organization's decisions is called a stakeholder.

Question 25

Organizations not pursuing a social obligation approach to their business goals usually achieve higher levels of social responsiveness than organizations that take the social responsibility approach.

Question 26

Managers can fulfill their social obligation towards government agencies by ________.

A) providing safe products
B) repaying debts to banks
C) abiding by the laws
D) increasing the value of the organization
E) providing safe working environments

Question 27

Which of the following statements is true about a social audit?

A) It is the process of measuring the increase in a firm's brand awareness after it conducts social responsibility activities.
B) It is the process of forecasting the impact of an organization's social responsibility activities on society to decide its feasibility.
C) It is the process of measuring the increase in an organization's profits after it has conducted social responsibility activities.
D) It is the process of measuring the present social responsibility activities of an organization to assess its performance in this area.
E) It is the process of measuring the impact of an organization's social responsibility activities on society.

Question 28

Tangarine, a detergent manufacturer, realizes that a malfunction of one of its automated machines has significantly altered the composition of the detergent. Continued exposure to this altered detergent can cause skin cancer in the long term. Tangarine is violating the obligation to ________.

A) suppliers
B) employees
C) stockholders
D) customers
E) unions

Question 29

How can organizations meet its social obligations? Defend and support your answer.

Question 30

Which of the following statements is true about the concept of social responsibility?

A) It views business as having societal goals, but lacking economic goals.
B) It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.
C) It views business as having societal goals and the obligation to anticipate potential social problems, but lacking economic goals.
D) It considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.
E) It views business as not having economic or societal goals.

Question 31

Which of the following statements best describes Friedman's view of a firm's social responsibility obligation?

A) Friedman argued firms should perform social responsibility activities because businesses are a subset of society and therefore have a significant impact on the way society exists.
B) Friedman argued against firms social responsibility activities because government already takes care of society.
C) Friedman argued against businesses performing social responsibility activities because the real responsibility for management is to reach profit objectives and increase the wealth of government officials.
D) Friedman argued against businesses performing social responsibility activities because he saw these activities as setting up a conflict of interest between actions necessary to conduct business and maximize profits versus actions focused on taking care of society's welfare.
E) Friedman argued for social responsibility activities because these activities increase the wealth of the firm's owners.

Question 32

First Tee is a national not-for-profit organization based in St. Augustine, Florida, and is the official charity of the PGA Tour. The goal of First Tee is to build character among youth through the game of golf. Experiences in the program emphasize building core values like honesty, integrity, and respect for others within youth. This is an example of ________.

A) philanthropy
B) sporting events
C) social events
D) market relief
E) social challenge

Question 33

________ is a measure of usage of the environmental resources an organization consumes.

A) Environmental audit
B) Environmental benchmark
C) Environmental footprint
D) Environmental reading
E) Environmental mark

Question 34

The social responsibility approach views business as having ________.

A) the obligation to anticipate potential social problems
B) societal goals and the obligation to anticipate potential social problems, but lacking economic goals
C) both societal and economic goals as well as the obligation to anticipate potential social problems
D) primarily economic purposes and confines social responsibility activity mainly to existing legislation
E) both economic and societal goals

Question 35

Making donations to causes that do not somehow protect and enhance the continuity of the organization seems ________.

A) unfounded
B) socially irresponsible
C) fair
D) underdeveloped
E) competitive

Question 36

Choose three types of stakeholders and identify the social obligation managers owe to them. Defend and support your answer.

Question 37

Define the term "social audit." List the basic steps in conducting a social audit.

Question 38

________, a popularly used component of social responsibility, is the promotion of welfare of others through generous monetary donations to social causes.

A) Problem-solving
B) Economic function
C) Philanthropy
D) Problem-recognition
E) Quality-of-life

Question 39

The greater the degree of effectiveness and efficiency, the more socially responsive the organization is said to be.

Question 40

Managers can fulfill their social obligation towards consumers by ________.

A) abiding by the laws
B) providing safe working environments
C) repaying debts
D) increasing the value of the organization
E) providing safe products

Question 41

Many management theorists and practitioners claim that the immediate payoff of sustainability is usually ________.

A) increased labor productivity
B) higher energy costs
C) bigger social problems
D) improved business
E) increased value

Question 42

An organization decides to rid itself of contaminated waste by dumping it into a river. If this dumping renders the river toxic and unusable for drinking water, fishing or recreation, the entity would be considered ________.

A) contaminated
B) responsible
C) acceptable
D) unsustainable
E) sustainable

Question 43

PepsiCo, a food and beverage manufacturer, began measuring the footprint of carbon emissions of its orange juice brand, Tropicana, in an effort to become more sustainable. Which of the following areas does this study focus on?

A) the economy
B) the environment
C) the society
D) the performance
E) the business

Question 44

Manga, a fashion and apparel company, opens a new factory in India using eco-friendly energy and materials during construction. This is an example of ________.

A) being successful across multicultural markets
B) improvement of the quality-of-life of the communities in which the organization exists
C) problem-recognition
D) hiring organization members to help the organization become more sustainable
E) problem-solving

Question 45

The three sustainability gauges for organizational development - economy, environment, and society - considered collectively are commonly referred to as the ________.

A) triple bottom-line
B) triple threat
C) long-term tests
D) global best practices
E) protection areas

Question 46

A company focused on not only offering goods and services customers value but also ensuring the community and other environmental factors surrounding the company do not suffer from the firm's actions is said to be ________.

A) educational
B) sustainable
C) occupational
D) self-sufficient
E) responsive

Question 47

Sam's Club, a discount retail division of Wal-Mart, specializes in the sale of products like jewelry, clothes, and food. The management at Sam's Club decided to increase sustainability by decreasing energy costs. One solution to decrease energy costs was a new milk jug to increase the shelf life of milk at stores, thereby reducing energy costs. This is an example of ________.

A) increased profit
B) increased quality-of-life
C) increased social investment
D) increased innovation
E) increased productivity

Question 48

In building a sustainable organization, management should strive to make the organization sustainable in three areas - ________.

A) the economy, performance, and society
B) the business, the environment, and society
C) the economy, the environment, and business
D) the economy, business, and performance
E) the economy, the environment, and society

Question 49

________ emphasizes that managers should focus on building organizations that are sustainable in economic, environmental, and societal activities.

A) Restructured bottom-line
B) Safe harbor bottom-line
C) Bottom-line synergy
D) Triple bottom-line
E) Competitive bottom-line

Question 50

Remmington Steel Co. is a steel manufacturing company. In order to decrease work-related injuries, Remmington replaced all of its old machinery and equipment, restricted workers' access to dangerous machinery, and made safety costumes mandatory for workers at all times. Since these activities are part of a companywide objective aimed at decreasing work-related injuries, Remmington could be said to be achieving sustainability by ________.

A) problem-solving
B) setting sustainability goals
C) problem-recognition
D) social investment
E) quality-of-life

Question 51

________ is the degree to which a person or an entity can meet its present needs without compromising the ability of other people or entities to meet their needs in the future.

A) Accountability
B) Reliability
C) Sustainability
D) Maintainability
E) Scalability

Question 52

________ is an ecology-oriented certification program run by the U.S. Green Building Business Council, that rates the ecology impact of buildings of all types.

A) Sustainability Market Programs
B) Green Initiative
C) Green Building = Green Money
D) Energy efficient
E) LEED (Leadership in Energy and Environmental Design)

Question 53

In the sustainability area, organization members who contribute to the accomplishment of sustainability goals must be ________.

A) encouraged
B) refocused
C) rewarded
D) shunned
E) disciplined

Question 54

Which of the following areas is an organization focusing on when it minimizes waste by not overproducing goods and generating a fair profit for stakeholders?

A) the economy
B) the customer
C) the environment
D) the government
E) the society

Question 55

Which of the following areas does an organization focus on when it maintains the wellbeing and protection of the communities in which it does business?

A) the economy
B) the customer
C) the environment
D) the government
E) the society

Question 56

Which of the following areas does an organization focus on when it emphasizes performing behavior akin to protecting natural resources like air, water, and land?

A) the economy
B) the customer
C) the environment
D) the government
E) the society

Question 57

A sustainable organization is an organization that has the ability to ________.

A) be profitable during challenging economic periods
B) meet its present needs without compromising the ability of future generations to meet their needs
C) produce high-quality products at reasonably low prices when the economy is unsupporting
D) increase its brand awareness by conducting social responsibility activities on a large scale
E) innovate continuously and produce high-quality innovative products on a consistent basis

Question 58

Setting sustainability goals is a critical component of an organization's sustainability effort. Such goals set clear targets on which all organization members can focus. One main factor in reaching sustainability goals is ________.

A) tracking progress
B) anticipating progress
C) conducting progress
D) ensuring progress
E) predicting progress

Question 59

When Apple donates computers for educational purposes, the company is said to be working towards enhancing its ________ efforts.

A) redundant
B) philanthropic
C) obligation
E) philosophical

Question 60

Which of the following is the most often-used reason why managers should build sustainable organizations?

A) Establishing orderly uses for resources increases the organization's profit.
B) Guiding the activities of organization members helps attain organizational objectives.
C) Determining the organization's objectives helps in attaining its goals.
D) Increased sustainability commonly results in more profitable organizations.
E) Determining the organization's actions leads to an increase in the profitability.

Question 61

Roger believes in the statement, "what you give, you receive." He shows respect to everyone he knows and meets every day and expects them to show him respect. Roger's behavior is consistent with ________.

A) the utilitarian principle
B) the golden rule
C) the deontological principle
D) Kant's categorical imperative
E) the four-way test

Question 62

Which of the following acts was passed amid outcries of public outrage over outrageous management practices discovered at several companies including Enron, WorldCom, and Tyco?

A) Gramm-Leach-Bliley Act
B) Financial modernization Act
C) Sarbanes-Oxley Act
D) Patriot Act
E) Freedom of Information Act

Question 63

Which of the following suggests that an organization is acting unethically?

A) The customers are unhappy with one of the products manufactured by the organization.
B) The public pressures legislators and other government officials to enforce existing regulations.
C) The organization loses its customers to competitors due to lack of after-sale services for its products.
D) The public pressures the organization to conduct social responsibility activities.
E) The union members of the organization declare a strike to demand a hike in salaries.

Question 64

What does it really mean to say "sustainability is the future of business?" Defend and support your answer.

Question 65

________ is a formal statement that acts as a guide for the ethics of how people within a particular organization should act and make decisions.

A) A social audit
B) A whistle blower's policy
C) Corporate governance
D) A code of ethics
E) A mission statement

Question 66

Which of the following guidelines indicates that in order to be ethical, corporate behavior must respect the dignity of human nature?

A) the Utilitarian standard
B) the Rights standard
C) the Virtue standard
D) the Markkula principle
E) the Behavioral standard

Question 67

The study of ethics in management can be approached from many different directions. A practical approach is to view ethics as catalyzing managers to ________.

A) abide by the laws
B) fulfill stockholders needs
C) encourage workforce diversity
D) discourage whistle-blowing
E) take socially responsible actions

Question 68

________ is a guideline that determines behavior to be ethical if it reflects high moral values.

A) The utilitarian principle
B) The golden rule
C) The consequentialist principle
D) The virtue standard
E) The four-way test

Question 69

In business, ethics can be defined as the capacity to reflect on ________ in the corporate decision-making process.

A) customer preferences
B) competitive strategies
C) values
D) production bottlenecks
E) workforce diversity

Question 70

Which of the following actions suggests that an individual is following the golden rule?

A) a person treating others in a way he/she would expect to be treated
B) taking actions that would be viewed as proper by a disinterested panel of professional peers
C) acting in a way that results in the greatest good for the greatest number of people
D) taking actions that abide by the laws of the state
E) acting in a way that the action taken under the circumstances could be a universal law of behavior

Question 71

What is sustainability? Why is building sustainable organizations important?

Question 72

________ indicates that behavior can be considered ethical if it provides the most good for the greatest number of people.

A) The golden rule
B) The deontological principle
C) The utilitarian standard
D) The virtue standard
E) The Kantian principle

Question 73

Within their organizations, ________ must take responsibility for creating and sustaining conditions in which employees are likely to behave ethically, as well as creating and sustaining efforts aimed at minimizing conditions in which employees might be tempted to behave unethically.

A) lawyers
B) employees
C) managers
D) corporations
E) businesses

Question 74

While managers have historically focused on profits as the primary gauge for evaluating organizational performance, today managers are evaluating performance by examining three sustainability gauges. These include:

A) environment, economy, profitability
B) society, economy, profitability
C) economy, environment, society
D) economy, profitability, marketability
E) environment, society, marketability

Question 75

Business behavior that reflects honesty in advertising about the worthiness of a product or paying suppliers a fair price for their goods is an example of the ________.

A) Sarbanes-Oxley standard
B) Utilitarian standard
C) Virtue standard
D) Golden rule
E) Rights standard

Question 76

Behavior where the actions reflect virtues like honesty, fairness, and compassion is an example of the ________.

A) rights standard
B) virtue standard
C) four-way test
D) decision-making process
E) golden rule

Question 77

Sustainability is said to be worthwhile as these efforts result in an increase in which of the following areas:

A) profits, innovation, productivity
B) productivity, innovation, marketability
C) profits, innovation, marketability
D) marketability, innovation, productivity
E) profits, productivity, responsibility

Question 78

Which of the following are best categorized as "outside" stakeholders of an organization?

A) Stockholders
B) Managers
C) Employees
D) Customers
E) Shareholders

Question 79

A manager's actions to build organizations that are sustainable in economic, environmental, and societal activities are commonly referred to as ________.

A) triple bottom line
B) three-goal winners
C) triple goal line
D) triple income line
E) three bottom line

Question 80

The Federal Reserve Board (the Fed) examines the relevant economic data and makes a judgment about the present and future state of the economy in order to set interest rates. If economic activity seems to be slowing down, the Fed might decide to lower interest rates as a means for stimulating economic growth. If the economy seems to be growing too fast and the inflation rate is increasing, it might choose to raise interest rates. Lowering or raising interest rates, in and of itself, is neither good nor bad; the rightness of the act depends on the consequences. This action is consistent with the ________.

A) utilitarian standard
B) golden rule
C) virtue standard
D) deontological principle
E) Kantian principle