Values And Ethics

1. Corporate social responsibility is the idea that businesses interact with the organization’s stakeholders for social good while they pursue economic goals. [Answer True or False]

Answer:

2. The capability of corporations to influence government, the economy, and society, based on their organizational resources is called the big business principle. [Answer True or False]

Answer:

3. Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse.

[Answer True or False]

Answer:

4. Corporate power says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it. [Answer True or False]

Answer:

5. Given the immeasurable power in the hands of the leaders of large, global corporations, social responsibility has become a worldwide expectation. [Answer True or False]

Answer:

6. Corporate power refers to: [Select the letter corresponding to the answer]

A. The capability of competitors to influence legislation, trade, and the stock market, based on their organizational resources.

B. The capability of politicians to influence corporations, employees, and unions, based on their organizational resources.

C. The capability of corporations to influence government, the economy, and society, based on their organizational resources.

D. The capability of CEOs to influence product development, employee morale, and currency indices, based on their organizational resources.

Answer:

7. The iron law of responsibility says that: [Select the letter corresponding to the answer]

A. In the long run, those who do not use power responsibly will lose it.

B. In the short run, sacrifice social goals for economic goals.

C. Law is most important, more than social or economic responsibility.

D. In the long run, economic responsibility leads to social responsibility.

Answer:

8. Corporations have a role in establishing their community’s: [Select the letter corresponding to the answer]

A. Tax base.

B. Safety.

C. Economic growth.

D. All of the above.

Answer:

9. Which of the following statements is true about corporate social responsibility? [Select the letter corresponding to the answer]

A. Businesses should monitor and prevent social problems in advance of their becoming major issues.

B. A company should seek maximum profits from its operations in order to provide the best for society.

C. Corporations should be accountable for any actions that affect people, their communities, and the environment.

D. Both A and C, but not B.

Answer:

10. Corporate social responsibility (CSR) means that a corporation should: [Select the letter corresponding to the answer]

A. Always forgo profit for the sake of the environment.

B. Be held accountable for any of its actions that affect people, their communities, and their environment.

C. Abandon its other missions.

D. Put social responsibilities ahead of economic or legal responsibilities.

Answer:

11. Ethics are primarily based on religious beliefs. [Answer True or False]

Answer:

12. Ethical ideas are present in all societies, all organizations, and all individual persons. [Answer True or False]

Answer:

13. If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree. [Answer True or False]

Answer:

14. Business must develop its own definition of what is right and wrong, apart from ethics. [Answer True or False]

Answer:

15. Being ethical includes developing a sense of trust, which promotes positive alliances among business partners.

[Answer True or False]

Answer:

16. A conception of right and wrong is: [Select the letter corresponding to the answer]

A. Impossible to know.

B. The definition of ethics.

C. Determined by power.

D. Based on stakeholder dialogue.

Answer:

17. People’s ethical beliefs come from: [Select the letter corresponding to the answer]

A. Legislative action and judicial decisions.

B. Reading the company’s profit and loss statements.

C. Their religious background, family, and education.

D. The organization’s code of ethics.

Answer:

18. People everywhere depend on ethical systems to tell them whether their actions are: [Select the letter corresponding to the answer]

A. Legal or illegal.

B. Right or wrong.

C. Financially attainable or not.

D. Logical and reasonable judgment.

Answer:

19. Businesses are expected to be ethical in their relationships with: [Select the letter corresponding to the answer]

A. Stockholders.

B. Customers.

C. Competitors.

D. All of the above.

Answer:

20. Why should business be ethical? [Select the letter corresponding to the answer]

A. Most people want to act in ways that are consistent with their own sense of right and wrong.

B. Ethical behavior protects business firms from abuse by unethical employees and competitors.

C. Society’s stakeholders expect it from businesses.

D. All of the above.

Answer:

21. Business executives are finding that a trusting, ethical relationship with a business partner is: [Select the letter corresponding to the answer]

A. Best left to not-for-profit companies.

B. Too costly to maintain.

C. Likely to cause legal problems.

D. Often essential in conducting business.

Answer:

22. Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: [Select the letter corresponding to the answer]

A. Increased.

B. Reduced.

C. Unaffected.

D. Decided by the company.