Deck 5: Managing Business

Question 1

______ or ______ statements are statements outlining corporate aims, beliefs and values, which increasingly include social, ethical and environmental goals.

Answer 1

Mission or value

Question 2

Risk analysis and management is one of the key components of business ethics management. According to Sison (2000), this is because the language of risk assessment has encouraged firms to spell out the risks that firms run by ignoring ethics, in terms of...?

A) Potential reputational damage.
B) Possible monetary impact.
C) Likelihood of punitive governmental regulations.
D) The firm's ability to attract and retain the best staff.

Answer 2

B

Question 3

Crane et al identify four main types of ethical codes. Read the following carefully and choose which of the following is not one of these four main types.

A) Professional codes of ethics (e.g., marketing).
B) Industry codes of ethics (e.g., financial services industry).
C) Organizational codes of ethics (code for a single organization).
D) Accreditation codes of ethics (e.g. use of the Fairtrade mark).

Answer 3

D

Question 4

Donaldson (1996) proposes principles for organizations working internationally and needing to address cultural differences when developing their ethical codes. What are these principles? Please select all that apply.

A) Respect for key principles of the major religious traditions.
B) Respect for local traditions.
C) The belief that context matters when deciding what is right and wrong.
D) Respect for core human values, which determine an absolute threshold.

Question 5

Match the ethics-related term to its correct description.
-Ethics education

A) Training and learning related to ethics, provided within, typically, a business or university setting.
B)The direct attempt to formally or informally manage ethical issues
C) The managers, officers and committees responsible for managing ethics within an organisation.
D) Individuals or organisations that manage aspects of business ethics via an outsourcing agreement or provision of specialist training

Question 6

Match the ethics-related term to its correct description.
-Business ethics management

A) Training and learning related to ethics, provided within, typically, a business or university setting.
B)The direct attempt to formally or informally manage ethical issues
C) The managers, officers and committees responsible for managing ethics within an organisation.
D) Individuals or organisations that manage aspects of business ethics via an outsourcing agreement or provision of specialist training

Question 7

Match the ethics-related term to its correct description.
-Ethics governance processes

A) Training and learning related to ethics, provided within, typically, a business or university setting.
B)The direct attempt to formally or informally manage ethical issues
C) The managers, officers and committees responsible for managing ethics within an organisation.
D) Individuals or organisations that manage aspects of business ethics via an outsourcing agreement or provision of specialist training

Question 8

Match the ethics-related term to its correct description.
-Ethics consultants

A) Training and learning related to ethics, provided within, typically, a business or university setting.
B)The direct attempt to formally or informally manage ethical issues
C) The managers, officers and committees responsible for managing ethics within an organisation.
D) Individuals or organisations that manage aspects of business ethics via an outsourcing agreement or provision of specialist training

Question 9

Match the following reasons that firms should engage in social accounting
-Internal and external pressure

A) Firms are responding to new expectations that they disclose their operations.
B) Social accounting provides firms a clearer picture of their relative strengths and vulnerabilities.
C) Social accounting helps provide information to the wider world, and helps managers make more informed decision making
D) Social accounting helps ensure that companies answer for the consequences of their actions.

Question 10

Match the following reasons that firms should engage in social accounting
-Identifying risks

A) Firms are responding to new expectations that they disclose their operations.
B) Social accounting provides firms a clearer picture of their relative strengths and vulnerabilities.
C) Social accounting helps provide information to the wider world, and helps managers make more informed decision making
D) Social accounting helps ensure that companies answer for the consequences of their actions.

Question 11

Match the following reasons that firms should engage in social accounting
-Improved stakeholder management.

A) Firms are responding to new expectations that they disclose their operations.
B) Social accounting provides firms a clearer picture of their relative strengths and vulnerabilities.
C) Social accounting helps provide information to the wider world, and helps managers make more informed decision making
D) Social accounting helps ensure that companies answer for the consequences of their actions.

Question 12

Match the following reasons that firms should engage in social accounting
-Enhanced accountability and transparency

A) Firms are responding to new expectations that they disclose their operations.
B) Social accounting provides firms a clearer picture of their relative strengths and vulnerabilities.
C) Social accounting helps provide information to the wider world, and helps managers make more informed decision making
D) Social accounting helps ensure that companies answer for the consequences of their actions.

Question 13

Which of the following is not one of the issues that Zadek et al (1997) have proposed as the key principles of good social accounting?

A) Continuous improvement.
B) External verification.
C) Protecting the integrity of confidential data.
D) Management policies and systems.

Question 14

Which of the following is a scheme to tackle the specific aspect of reporting assurance in social accounting?

A) ISO 26000
B) SA 8000
C) AA 1000S
D) ISO 14001

Question 15

Treviño et al (1999) identify four main ways of approaching the formal organization of business ethics management. Match the label with the correct description.
-Compliance orientation

A) Main emphasis is on preventing, detecting, and punishing violations of the law.
B) Approach is based on defining organizational values and encouraging employee commitment to certain ethical aspirations.
C) The focus is on satisfying stakeholders such as customers, the community and shareholders.
D) Primary orientation is (or is perceived to be) towards shielding top management from blame for ethical problems or legal violations.

Question 16

Treviño et al (1999) identify four main ways of approaching the formal organization of business ethics management. Match the label with the correct description.
-Values orientation

A) Main emphasis is on preventing, detecting, and punishing violations of the law.
B) Approach is based on defining organizational values and encouraging employee commitment to certain ethical aspirations.
C) The focus is on satisfying stakeholders such as customers, the community and shareholders.
D) Primary orientation is (or is perceived to be) towards shielding top management from blame for ethical problems or legal violations.

Question 17

Treviño et al (1999) identify four main ways of approaching the formal organization of business ethics management. Match the label with the correct description.
-External orientation

A) Main emphasis is on preventing, detecting, and punishing violations of the law.
B) Approach is based on defining organizational values and encouraging employee commitment to certain ethical aspirations.
C) The focus is on satisfying stakeholders such as customers, the community and shareholders.
D) Primary orientation is (or is perceived to be) towards shielding top management from blame for ethical problems or legal violations.

Question 18

Treviño et al (1999) identify four main ways of approaching the formal organization of business ethics management. Match the label with the correct description.
-Protection orientation

A) Main emphasis is on preventing, detecting, and punishing violations of the law.
B) Approach is based on defining organizational values and encouraging employee commitment to certain ethical aspirations.
C) The focus is on satisfying stakeholders such as customers, the community and shareholders.
D) Primary orientation is (or is perceived to be) towards shielding top management from blame for ethical problems or legal violations.

Question 19

Codes of ethics are typically applicable globally and do not need altering depending on the country or region in which multinational enterprises operate.

Question 20

The AA1000s Assurance standard was the first attempt to provide a coherent and robust basis for assuring a public report and its underlying processes, systems and competences.

Question 21

What are some essential distinguishing elements of social accounting? Choose all that apply.

A) Its focus on issues other than (but not necessarily excluding) financial data.
B) Its move firmly away from quantitative data.
C) Its intended audience extending beyond (but not excluding) shareholders.
D) Its status as a voluntary rather than a legally mandated practice (at least in most jurisdictions).

Question 22

A voluntary statement that commits an organization, industry, or profession to specific beliefs, values, and actions and/or that set out appropriate ethical behaviour for employees is often called a _______.

Question 23

Which of the following is an environmental management system drafted by the European commission which involves strong employee involvement and compliance with environmental legislation ensured by government supervision?

A) ISO26000
B) GRI
C) ISO14001
D) EMAS

Question 24

______________ describes businesses efforts to minimize the negative environmental impact of a firm's products throughout their lifecycle.