Question 1

L'Oreal has a foundation responsible for corporate philanthropy. This is a(n) ____ stance.
A) defensive
B) accommodative
C) proactive
D) reactive
E) participative

Accepted Answer

L'Oreal's foundation responsible for corporate philanthropy shows a proactive stance, as the company is taking proactive measures to contribute to social causes and make a positive impact on society.

Question 2

Which of the following is NOT one of the means by which businesses typically attempt to influence government?
A) Favors
B) Lobbying
C) Direct contributions to election campaigns
D) Political action committees
E) Personal contacts

Accepted Answer

The answer of Which of the following is NOT one...

Question 3

All of the following are common approaches that businesses use to influence government EXCEPT
A) personal contacts.
B) rebates.
C) lobbyists.
D) donations to PACs.
E) favors.

Accepted Answer

Rebates are not typically used as an approach to influence government. Personal contacts, lobbyists, donations to PACs, and favors are all commonly used by businesses to influence government.

Question 4

Which of the following is a basic area of government regulation of business?
A) Consumer protection
B) Safety and health of employees
C) Safety and health of consumers
D) Environmental protection
E) All of these choices

Accepted Answer

All of these choices are basic areas of government regulation of business. Consumer protection, safety and health of employees, safety and health of consumers, and environmental protection all fall under various government regulations and laws that businesses must comply with.

Question 5

For every pair of socks purchased from Bomba, the company donates one pair of socks to a homeless shelter. This is an example of the ______ approach to social responsibility.
A) reactive
B) obstructionist
C) proactive
D) accommodative
E) defensive

Accepted Answer

The proactive approach to social responsibility involves actively seeking out opportunities to contribute to the well-being of society and taking actions to address social issues. Bomba's practice of donating a pair of socks for every pair purchased exemplifies this approach.

Question 6

When the SEC brought charges against Bernard Madoff and his CFO, it was exercising its power of
A) political favors.
B) legislative intervention.
C) indirect regulation.
D) lobbying.
E) direct regulation.

Accepted Answer

The SEC's charges against Bernard Madoff and his CFO were an example of the agency's exercise of direct regulation. This refers to the authority granted by Congress to the SEC to create rules and regulations, oversee the disclosure of financial information, and enforce compliance with securities laws. The charges against Madoff and his CFO involved allegations of fraud and violations of securities laws, which fall squarely within the SEC's regulatory purview.

Question 7

The purpose of a political action committee (PAC) is to
A) lobby on behalf of trade associations.
B) circumvent laws regarding donations by businesses to election campaigns.
C) provide opportunities for personal contacts with legislators.
D) ensure that businesses do not attempt to bribe officials.
E) prevent businesses from getting excessive tax breaks.

Accepted Answer

Political action committees were created to allow businesses, labor unions, and other interest groups to donate money to political campaigns in a legal and transparent way. Prior to the creation of PACs, it was illegal for businesses and unions to directly donate money to candidates or parties. PACs enable these groups to donate a limited amount of money to candidates, but also have to disclose their donations and expenditures to the Federal Election Commission. However, some critics argue that PACs still allow businesses and other groups to influence politics and circumvent campaign finance laws.

Question 8

The ____ is not a government regulatory agency.
A) Securities and Exchange Commission
B) Federal Aviation Administration
C) Federal Communications Commission
D) American Civil Liberties Union
E) Environmental Protection Agency

Accepted Answer

The American Civil Liberties Union is a non-governmental organization that works to defend and preserve individual rights and liberties guaranteed by the Constitution and laws of the United States. It is not a government regulatory agency.

Question 9

A firm is taking a(n) ____ stance when it actively looks for ways to benefit society as well as meeting its obligations and responding to requests.
A) reactive
B) obstructionist
C) proactive
D) accommodative
E) defensive

Accepted Answer

A proactive stance means the firm is taking the initiative to do good for society, rather than just reacting to requests or meeting obligations.

Question 10

Which of the following is NOT an example of a formal approach to social responsibility?
A) Legal compliance
B) Ethical compliance
C) Evaluative compliance
D) Philanthropic giving
E) Ethics committee

Accepted Answer

Legal compliance, ethical compliance, philanthropic giving, and ethics committees are all examples of formal approaches to social responsibility. Evaluative compliance is not a recognized term or approach to social responsibility.

Question 11

Judith Cruz, the executive director of the Treasure Coast Food Bank, had a logistics problem. She contacted Wal-Mart to ask for management advice. Members from Wal-Mart's distribution team arrived at the food bank, helping it improve its warehousing, sorting, and routing, to allow more food deliveries per week. The food bank went from serving 42,000 meals per week to more than 100,000 meals. This is an example of the ____ approach to social responsibility.
A) reactive
B) obstructionist
C) proactive
D) accommodative
E) defensive

Accepted Answer

This is an example of the proactive approach to social responsibility, where a company or organization actively works to improve its impact on society beyond what is required by regulations or laws. Wal-Mart's distribution team took the initiative to help the food bank improve its operations, which resulted in a significant increase in the number of meals served.

Question 12

The Environmental Protection Agency is the agency charged with enforcement of many of the environmental laws in the United States. This agency represents a form of
A) indirect regulation.
B) direct regulation.
C) legislative mandate.
D) government coercion.
E) legislative intervention.

Accepted Answer

The Environmental Protection Agency enforces environmental laws directly, meaning that they have the power to directly regulate specific industries and activities to ensure compliance with these laws. This is different from indirect regulation, which involves setting standards and relying on market forces or other agencies to enforce them.

Question 13

Laws that deal with how agrichemical companies dispose of hazardous wastes are examples of
A) consumer protection regulation.
B) fair labor practice.
C) environmental protection regulation.
D) safety and health regulation.
E) legislative intervention.

Accepted Answer

Laws that deal with how agrichemical companies dispose of hazardous wastes are examples of environmental protection regulation, because they aim to protect the environment from the harmful effects of these wastes. Consumer protection regulation is focused on protecting consumers from risks related to products or services, fair labor practice relates to ensuring fair treatment of workers, safety and health regulation refers to protecting employees from harm in the workplace, and legislative intervention refers to any actions taken by lawmakers to address issues.

Question 14

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular healthcare maintenance instead of only when they are sick. Wrigley is taking a(n) ____ approach to social responsibility.
A) proactive
B) offensive
C) defensive
D) participative
E) accommodative

Accepted Answer

Wrigley is funding a proactive approach to social responsibility by actively promoting a positive and beneficial behavior change among African Americans.

Question 15

The Food and Drug Administration (FDA) is an example of which of the following areas of government regulation?
A) Consumer protection
B) Safety and health of employees
C) Safety and health of consumers
D) Environmental protection
E) Investor related issues

Accepted Answer

The answer of The Food and Drug Administration (FDA) is...

Question 16

Which of the following statements about legal compliance is TRUE?
A) Legal compliance also guarantees ethical compliance.
B) Despite the name, legal departments are not usually involved with legal compliance issues.
C) Top management usually retains management of legal compliance issues.
D) Legal compliance is usually handled by a committee of managers from various functional areas.
E) Managing legal compliance is usually delegated to the appropriate managers.

Accepted Answer

Legal compliance is usually delegated to the appropriate managers who have the knowledge of the relevant laws and regulations. While legal compliance might contribute towards ethical compliance, it does not necessarily guarantee it. Legal departments are usually involved in legal compliance issues. Top management may oversee legal compliance, but delegation is more common. Legal compliance is usually handled by managers from various functional areas, not just a committee. Therefore, option E is the only true statement.

Question 17

The National Organization of Women works to influence legislators to support NOW's positions. NOW is a
A) political action committee.
B) government stakeholder.
C) public regulator.
D) lobbyist.
E) multinational corporation.

Accepted Answer

NOW is a lobbyist organization that works to influence legislators to support their positions on issues related to women's rights and equality.

Question 18

Business influence on government relies on all EXCEPT which of the following?
A) Lobbying
B) Social pressure
C) Cultural influence
D) Regulation
E) Personal contacts

Accepted Answer

Regulation refers to government control over businesses, so it is unlikely that businesses have influence over regulation. The other choices all involve ways in which businesses can exert influence on government decisions.

Question 19

Politicians caught in extramarital affairs usually deny wrong doing until there is physical evidence to contradict the politician's claims. This is an example of the ____ approach to responsibility.
A) defensive
B) accommodative
C) proactive
D) reactive
E) participative

Accepted Answer

The defensive approach to responsibility involves denying any wrongdoing and shifting blame or minimizing the severity of the situation until there is concrete evidence or external pressure to admit responsibility. This is the approach commonly taken by politicians caught in extramarital affairs.

Question 20

The firm using a(n) ____ approach to social responsibility meets its obligations and is also willing to respond to appropriate societal requests.
A) reactive
B) obstructionist
C) proactive
D) accommodative
E) defensive

Accepted Answer

An accommodative approach to social responsibility balances meeting obligations with responding to appropriate societal requests. This approach shows a willingness to engage with stakeholders and address their concerns. Reactive, obstructionist, and defensive approaches are more focused on avoiding or reacting to demands and do not prioritize social responsibility. A proactive approach goes beyond meeting obligations and actively seeks ways to benefit society.

Quiz 4: Responding to the Ethical and Social Environment

L'Oreal has a foundation responsible for corporate philanthropy. This is a(n) ____ stance.

Which of the following is NOT one of the means by which businesses typically attempt to influence government?

All of the following are common approaches that businesses use to influence government EXCEPT

Which of the following is a basic area of government regulation of business?

For every pair of socks purchased from Bomba, the company donates one pair of socks to a homeless shelter. This is an example of the ______ approach to social responsibility.

When the SEC brought charges against Bernard Madoff and his CFO, it was exercising its power of

The purpose of a political action committee (PAC) is to

The ____ is not a government regulatory agency.

A firm is taking a(n) ____ stance when it actively looks for ways to benefit society as well as meeting its obligations and responding to requests.

Which of the following is NOT an example of a formal approach to social responsibility?

The Environmental Protection Agency is the agency charged with enforcement of many of the environmental laws in the United States. This agency represents a form of

Laws that deal with how agrichemical companies dispose of hazardous wastes are examples of

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular healthcare maintenance instead of only when they are sick. Wrigley is taking a(n) ____ approach to social responsibility.

The Food and Drug Administration (FDA) is an example of which of the following areas of government regulation?

Which of the following statements about legal compliance is TRUE?

The National Organization of Women works to influence legislators to support NOW's positions. NOW is a

Business influence on government relies on all EXCEPT which of the following?

Politicians caught in extramarital affairs usually deny wrong doing until there is physical evidence to contradict the politician's claims. This is an example of the ____ approach to responsibility.

The firm using a(n) ____ approach to social responsibility meets its obligations and is also willing to respond to appropriate societal requests.