Deck 10: Business Ethics, Environmental Sustainability, and Social Responsibility

Question 1

________ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization.

A) Non-management employees
B) Mid-level managers
C) Shareholders
D) Strategists such as CEOs and business owners
E) Governmental regulatory bodies

Answer 1

D

Question 2

Which of the following is NOT a way that companies can help create an ethical culture in their organization?

A) Outlining ethical expectations
B) Giving examples of ethical situations that commonly occur in their businesses
C) Providing code-of-conduct manuals
D) Creating interactive exercises that pose hypothetical ethical dilemmas
E) Discouraging whistle-blowing

Answer 2

E

Question 3

According to a study by the Institute of Business Ethics, companies that do not display ethical conduct consistently outperform companies that show a clear commitment to ethical conduct.

Answer 3

False

Question 4

Simply having a code of ethics

A) will ensure ethical business behavior.
B) eliminates the need for periodic ethics workshops.
C) is all that is necessary to sensitize people to workplace circumstances in which ethics issues may arise.
D) is insufficient to guarantee that employees behave in an ethical manner.
E) secures an ethics culture in the workplace.

Question 5

All of the following business actions are considered to be unethical EXCEPT

A) dumping banned or flawed products in foreign markets.
B) preventing environmental harm.
C) overpricing.
D) sexual harassment.
E) insider trading.

Question 6

A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.

Question 7

Many people consider it unethical for a firm to be socially irresponsible.

Question 8

Good ethics is not a prerequisite for good strategic management.

Question 9

A well written code of ethics ensures ethical business behavior.

Question 10

Bad ethics can derail all but the best strategic plans.

Question 11

Dumping banned or flawed products in foreign markets is considered to be an unethical business practice.

Question 12

Which of the following business actions is considered to be unethical?

A) Having satisfactory product or service safety
B) Selling products in foreign markets
C) Providing equal opportunities for women and minorities
D) Filing expense accounts
E) Misleading labeling

Question 13

Bad ethics can ________ strategic plans.

A) derail all but the best
B) derail even the best
C) derail only poorly-intentioned
D) derail only ill-conceived
E) never affect

Question 14

Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior.

Question 15

More and more firms believe that ethics training and an ethics culture

A) are socially irresponsible.
B) are admirable, but damage a firm's competitive positioning.
C) are costly and provide no practical benefit to the company.
D) create strategic advantage.
E) can tarnish the reputation of a firm.

Question 16

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies

A) only with a firm's strategists.
B) only with a firm's managers.
C) only with a firm's shareholders.
D) with both a firm's strategists and its managers.
E) with neither a firm's strategists nor its managers.

Question 17

CEOs and business owners should delegate the responsibility for ensuring that high ethical principles are espoused and practiced in an organization.

Question 18

Periodic ethics workshops can help sensitize people to workplace circumstances in which ethics issues may arise.

Question 19

A clear code of business ethics is a key ingredient in the establishment of an ethics culture.

Question 20

Business ethics, ________, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model.

A) social responsibility
B) social networking
C) fiscal irresponsibility
D) cultural indifference
E) market relations

Question 21

More and more firms believe that ethics training and an ethics culture create strategic advantage.

Question 22

Integrating ethical decision making into the performance appraisal process is one way that firms can align ethical and strategic decision making.

Question 23

Monitoring departmental and corporate performance regarding ethical issues can cause firms to misalign ethical and strategic decision making.

Question 24

History has proven that the lower the trust and confidence of people in the ethics of an institution or society, the greater its economic strength.

Question 25

Describe how organizations can create an ethics "culture."

Question 26

Discuss how business ethics, social responsibility, and sustainability are interrelated.

Question 27

________ refers to employees reporting any unethical violations they discover or see in the firm.

A) Whistle blowing
B) Bribery
C) Adultery
D) Sustainability
E) Stewardship

Question 28

Three individuals received $170 million for helping investigators obtain a record $16.65 billion penalty against Bank of America for inflating the value of mortgage properties and selling defective loans to investors.

Question 29

Firms can align ethical and strategic decision making by

A) omitting ethical considerations from long-term planning.
B) excluding ethical decision making from the performance appraisal process.
C) discouraging whistle blowing.
D) monitoring departmental and corporate performance regarding ethical issues.
E) demanding ethical considerations in long-term planning.

Question 30

Bribery involves

A) bestowing a gift to influence the recipient's conduct.
B) requiring employees to report any unethical violations they discover or see in the firm.
C) prohibiting love affairs between bosses and their subordinates.
D) encouraging firms to play a role in curing society of its ills.
E) forcing companies to take responsibility for the impact their actions have on society.

Question 31

Primary responsibility for ensuring ethical behavior rests with middle- and low-level managers, since they are in a position to influence many employees.

Question 32

Whistle blowing refers to employees reporting unethical behavior that they discover or see in the firm.

Question 33

Which of the following statements from the Wall Street Journal article "Is Office Romance Still Allowed" is true?

A) 23 percent of women disagree that harassment reports are overblown.
B) 71 percent of women have personally experienced sexual harassment.
C) 30 percent met their spouse or partner at work.
D) 47 percent of co-workers flirt.
E) 33 percent of millennials view their workplace as a dating pool.

Question 34

Workplace romance

A) is defined as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature.
B) is defined as illegal by the Equal Employment Opportunity Commission.
C) should be strictly forbidden by organizations.
D) simply happens so organizations should determine how to best manage the phenomenon.
E) is an intimate relationship between two employees, one of whom is not consenting.

Question 35

According to a recent Wall Street Journal article, ________ percent of all firms sampled had no restrictions on boss-subordinate love affairs at work.

A) 5
B) 13
C) 24
D) 39
E) 80

Question 36

Whistle blowers in the corporate world receive up to ________ percent of the proceeds of legal proceedings against firms for wrongdoing.

A) 10
B) 20
C) 25
D) 40
E) 15

Question 37

Within an organization, who is responsible for providing ethics leadership?

Question 38

Which of the following countries has a low bribery rate?

A) India
B) Liberia
C) Vietnam
D) Japan
E) Somalia

Question 39

Discuss a code of business ethics and its role in an organization.

Question 40

All of the following are reasons that workplace romance can be detrimental to workplace morale and productivity EXCEPT

A) favoritism complaints can arise.
B) personal arguments can lead to work arguments.
C) whispering secrets can lead to tensions and hostilities among coworkers.
D) increased quality and quantity of work can occur.
E) sexual harassment charges may ensue, either by the involved female or a third party.

Question 41

European firms are increasingly adopting explicit, American-style sexual harassment laws.

Question 42

In order to be considered bribery, the gift offered must be either money or a physical item.

Question 43

Why should companies have policies addressing workplace romance?

Question 44

In Europe, romantic relationships at work are frowned upon, and most firms have policies prohibiting the practice.

Question 45

Explain why it is important to encourage whistle blowing in a firm.

Question 46

If a firm has a bad sustainability record this will

A) help a firm in the market.
B) improve a firm's standing in the community.
C) increase investor scrutiny of the firm.
D) deflect the scrutiny of a firm by environmentalists.
E) release the firm from governmental reporting obligations.

Question 47

It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape.

A) more and more difficult for firms to make "green" claims when their actions are not substantive, comprehensive, or even true
B) increasingly easy for firms to get away with placing "green" terminology on their products without any oversight
C) customary for firms to use terms like "organic," "green," or "earth-friendly" when their products don't warrant it
D) more common for consumers to be cynical about corporate environmental claims
E) impossible for firms to omit "green" terminology from their labels

Question 48

What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution?

A) Economic
B) Ecological
C) Compensational
D) Benchmarking
E) Sociological

Question 49

Workplace romance and sexual harassment are synonymous.

Question 50

A document that discloses to shareholders information about a firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as

A) a code of ethics.
B) a sustainability report.
C) an EMS.
D) ISO 14000.
E) green terminology.

Question 51

Many firms use the ________ sustainability report as a benchmark guideline, and model to follow in preparing their own report.

A) Walmart
B) Exxon
C) Halliburton
D) Apple
E) Google

Question 52

In sports, bribery is lawful.

Question 53

A Wall Street Journal article reported that 80 percent of all firms sampled had no restrictions on relationships between a supervisor and a subordinate.

Question 54

Walmart has ________ suppliers.

A) 60,000
B) 28,000
C) 114,000
D) 47,000
E) 81,000

Question 55

It is ________ for a business to provide a sustainability report annually to the public.

A) good business
B) irresponsible
C) a decreasing trend
D) unethical
E) poor planning

Question 56

Most firms warn managers and employees that reporting an ethical violation by others could cause them to be discharged.

Question 57

A sustainability report reveals how a firm's operations impact the ________ environment.

A) market
B) competitive
C) operating
D) industry
E) natural

Question 58

Whistle blowers in the corporate world receive 100 percent of the proceeds of legal proceedings against firms for wrongdoing.

Question 59

In some foreign countries, paying bribes and kickbacks has historically been acceptable.

Question 60

A bribe is a gift bestowed to influence a recipient's conduct.

Question 61

Special natural environment issues include all of the following EXCEPT

A) ozone depletion.
B) destruction of animal habitats.
C) pollution control.
D) spreading computer viruses.
E) developing biodegradable products and packages.

Question 62

Which is NOT a reason why preserving the environment should be a permanent part of doing business?

A) Public opinion demanding that firms conduct business in ways that preserve the natural environment has been weakening.
B) Environmental advocacy groups now have over 20 million Americans as members.
C) Federal and state environmental regulations are changing rapidly and becoming more complex.
D) Liability suits and fines against firms having environmental problems are on the rise.
E) Consumer demand for environmentally safe products and packages is high.

Question 63

A proactive environmental policy is likely to lead to

A) higher cleanup costs.
B) conservation of energy.
C) reduced customer loyalty.
D) numerous liability suits.
E) higher medical costs.

Question 64

The ISO is based in Geneva, Switzerland.

Question 65

Sustainability refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment.

Question 66

Through its Green Power Partnership, the ________ works with organizations to increase the use of green power as a percentage of total electricity use.

A) SEC
B) ERA
C) FCC
D) EPA
E) FTC

Question 67

The ________ is a network of the national standards institutes of 162 countries, one member per country.

A) ISO
B) EMS
C) UN
D) EPA
E) IMF

Question 68

Sustainability reports reveal how a firm's operations impact the natural environment.

Question 69

Preserving the environment should be a permanent part of doing business for which of the following reasons?

A) Consumer demand for environmentally safe products and packages is low.
B) Public opinion demanding that firms conduct business in ways that preserve the natural environment is weak.
C) Federal and state environmental regulations are fairly simple and static.
D) Many consumers, suppliers, distributors, and investors shun doing business with environmentally strong firms.
E) More lenders are examining the environmental liabilities of businesses seeking loans.

Question 70

________ refers to a series of voluntary standards in the environmental field.

A) ISO 14001
B) EMS 14000
C) UN 5000
D) SEC 100
E) A sustainability report

Question 71

Some ways in which firms are working to be more environmentally responsible include using solar power and developing green products and packages.

Question 72

Companies such as Walmart are now monitoring not only the prices its vendors offer for products, but also how those products are made in terms of environmental practices, as well as safety and infrastructure soundness.

Question 73

Despite greater interest in sustainability, uniform standards defining environmentally responsible company actions are only slowly being incorporated into the legal landscape.

Question 74

It has gotten easier for firms to get away with placing "green" terminology on their products and labels because there are still no legal or generally accepted definitions of terms like "organic," "green," "safe," or "earth-friendly."

Question 75

In an effort to manage ecological challenges, many companies are

A) moving environmental affairs from the staff side of the organization to the line side.
B) moving environmental affairs from the line side of the organization to the staff side.
C) making the chief operating officer report directly to the corporate environmental group.
D) omitting an environmental representative from their board of directors.
E) purging environmental values from their mission statements.

Question 76

While it is socially responsible to be a good steward of the natural environment, doing so will not enable a firm to gain competitive advantage.

Question 77

A sustainability report discloses various kinds of information to shareholders. Which of the following is NOT one of them?

A) Labor practices
B) Product sourcing
C) Energy efficiency
D) Business ethics practices
E) Net income

Question 78

All of the following statements are true EXCEPT

A) ISO is the world's largest developer of sustainability standards.
B) ISO standards are widely accepted all over the world.
C) ISO has legal authority to enforce its regulations' implementation.
D) ISO standards are voluntary.
E) ISO itself does not regulate or legislate.

Question 79

All of the following are mentioned by the authors as environmental strategies that a firm might adopt EXCEPT

A) reinvesting in environment-damaging businesses.
B) including an environmental representative on their board of directors.
C) implementing bonuses for favorable environmental results.
D) incorporating environmental values in mission statements.
E) conducting regular environmental audits.

Question 80

ISO standards are legally binding.