Deck 10: Regulating Business Ethics and Responsibilities

Question 1

Government regulation of the communications industry has been criticized in the past,but now that the government has such strict controls over the Internet,the critics are becoming more vocal.

Answer 1

False

Question 2

Prior to an upcoming federal election in Canada,a provincial level newspaper is considering whether or not they should publicly endorse the Conservative Party of Canada.They know that such endorsement is a more direct way to influence policy than through lobbying activities.

Answer 2

False

Question 3

Democratic capitalist countries rely exclusively on market forces to regulate business practices.

Answer 3

False

Question 4

The demand for increasing legislation increases following a business scandal.

Question 5

In a highly competitive marketplace,market forces serve to regulate business practice.

Question 6

Tax expenditures refer to the government's own payment of taxes as part of doing business.

Question 7

Today,governments are less willing to provide bailouts for businesses,but are more willing to be participants in a bailout package that includes multiple stakeholders,such as employees.

Question 8

Manitoba Hydro cannot be considered a Crown corporation because it is operated by a provincial government,not the federal government.

Question 9

The British Petroleum disaster in the Gulf of Mexico led to demands for weaker government regulation in the petroleum industry.

Question 10

Many government-owned enterprises have been sold or dissolved as governments became disillusioned with their operation or concluded the private sector could operate such corporations more effectively.

Question 11

A government agency that independently regulates industry practice is an example of quasi-government regulation.

Question 12

Government regulation becomes more essential in the case of a competitive marketplace.

Question 13

Public-private partnerships (PPP) are seen by some as an example of government outsourcing.

Question 14

Self-regulation is the regulatory form imposed on business by the corporation itself,industry,and/or market forces.

Question 15

The government invests heavily in many businesses.Owning equity shares in a company is an example of public-private partnership.

Question 16

Businesses,not government,are the architects of economic growth.

Question 17

Many Alberta farmers have attempted to influence the Government of Alberta to dismantle the Alberta Wheat Board that oversees the price and sale of wheat in the province.One mechanism of furthering this agenda is using the media to influence Alberta voters.This action is not lobbying as it is an attempt to indirectly influence policy; lobbying is defined as attempts to directly,not indirectly,influence government.

Question 18

An organization in the nonprofit sector is more likely to be a chosen instrument of government involvement than a business in the technology sector.

Question 19

refers to the involvement of the Canadian government in the mining of gold in Canada to prevent the abuse of women and children working in the mines.

Question 20

The integration of corporate social responsibility (CSR) into business practice is a form of self-regulation.

Question 21

There is full transparency in the relationship between government and business.

Question 22

The organic food industry in Canada has an obligation to protect the interest of its consumers.This form of regulation is:

A) Laissez-faire market
B) Corporate self-discipline
C) Industry
D) Self-regulation involving stakeholders
E) Negotiated self-regulation

Question 23

Corporate agenda refers to an organization's procedures and protocols for corporate public relations.

Question 24

In 2008,many U.S.and British financial institutions received bailout money,causing an international financial crisis and economic recession.The Canadian economy was insulated from this situation as Canadian banks were not a part of the bailout rescue.

Question 25

The Alberta Teachers' Association cannot be considered a lobby group as they are not a for-profit enterprise.

Question 26

Non-governmental organizations (NGOs) are lobbying the provincial government to increase taxes on gasoline purchases as a means to reduce consumption and ameliorate environmental damage.A major oil and gas company responds with a television campaign highlighting that it is the individual's choice how they wish to conserve energy.The managerial department of the oil and gas company responsible for this television campaign is corporate public affairs.

Question 27

A company that manufactures natural food supplements and vitamins had just launched a new product line when it was announced by government that there were to be new restrictions on the sale of supplements and vitamins.The CEO chastised the manager of the corporate public affairs department for not monitoring government initiatives more closely.The manager responded that it was not his department's responsibility to try to forecast what government would do.The manager is correct that this is not part of the normal duties of a corporate public affairs department.

Question 28

The Canadian Standards Association is a non-profit organization servicing business,industry,and consumers.This form of regulation is:

A) Laissez-faire market
B) Corporate self-discipline
C) Industry
D) Self-regulation involving stakeholders
E) Negotiated self-regulation

Question 29

One form of privatization is the monopoly franchise.

Question 30

Business lobbying has grown in frequency and power over recent years.

Question 31

The morality of operating some government-owned business,such as liquor stores,is an ethical issue.

Question 32

Self-regulation refers to regulatory forces that are imposed and enforced by __________.

A) the corporation
B) market forces
C) professional associations
D) the government
E) the business community

Question 33

Some toy companies,in response to a recent concern regarding product safety,are posting notices in their stores that all the products they sell have been tested for lead content.Not all the stores making this claim,however,are actually testing the toys.A consumer reports one such store for a violation of the Canadian Code of Advertising Standards.The Code is an example of which form of regulatory practice?

A) Laissez-faire market
B) Corporate self-discipline
C) Industry
D) Quasi-government regulation
E) Negotiated self-regulation

Question 34

Corporate welfare is any action by municipal,provincial,or federal governments that gives a specific corporation or an entire industry a benefit not offered to others.

Question 35

The University of Toronto is evaluating its policies and procedures regarding campus safety.It decides to form a committee drawing on students,faculty members,local community members,and government to draft the policy.This is an example of which form of regulatory practice?

A) Laissez-faire market
B) Corporate self-discipline
C) Industry
D) Self-regulation involving stakeholders
E) Negotiated self-regulation

Question 36

Privatization can result in increased competition.

Question 37

Ahmed recently purchased a new vehicle.At first he was delighted with his purchase,but soon he noticed that whenever there were strong winds a high pitched whistle sound would appear.He returned the car to his dealer who stated that seeking out the cause of this sound was not covered by the warranty.Ahmed contacted the Canadian Motor Vehicles Arbitration Plan and asked them to mediate between him and the dealer.This regulatory body operates as an external,third-party stakeholder that industry and consumer groups support to resolve disputes between consumers and the automobile industry.This is an example of which form of self-regulation?

A) Self-regulation involving stakeholders
B) Negotiated self-regulation
C) Mandated self-regulation
D) Industry self-regulation
E) Quasi-government regulation

Question 38

Doing business with the government is sometimes conducted in an inappropriate manner.

Question 39

Corporate lobbying is seen by many as an undesirable activity.

Question 40

Businesses are increasingly willing to accept corporate welfare.

Question 41

The Employment Insurance program,operated by the Federal Government,is designed to balance the premium revenues with the actual costs of the program.This priority is an example of which form of privatization?

A) Privatization of the financing of services that continue to be produced by the public sector.
B) Privatization of the provision of a service that continues to be financed by the public sector out of government revenues.
C) Load shedding.
D) Sale of government-owned enterprise.
E) Liberalization of public policy.

Question 42

Frank Nikomo is a former school teacher who developed a strong reputation nation-wide for his ability to reach youth with gang involvement.Frank has decided to leave retirement and offers his expertise to various teaching associations,such as the Newfoundland and Labrador Teachers' Association,to help them lobby for funds to support social initiatives in schools.This is an exemplar of which type of business lobbyist?

A) Business interest group
B) Consultant
C) In-house
D) None of the answers.
E) This is not an example of lobbying as it involves the public, not private, sector.

Question 43

Which of the following arguments suggests business should stay out of politics?

A) Politics should be left to politicians, and business should be publicly neutral.
B) Businesspersons are not necessarily qualified to deal with many of the social issues the government must address.
C) Business is already accused of exerting too much power in society, and the involvement of businesspersons in politics could upset the pluralistic balance in society.
D) Business involvement might also be interpreted as being biased, thus having an adverse effect on customers or shareholders, or conflicts of interest might exist.
E) All of the above.

Question 44

Business involvement in politics takes all the following forms,except:

A) Financing of political parties.
B) Public expressed of support for a candidate.
C) Publically expressed views on political issues.
D) Executives running for office.
E) Support of candidates of a foreign regime.

Question 45

The Government of British Columbia has requested bids from the private sector to manage the maintenance of the Royal Jubilee Hospital in Victoria.The belief is that the private sector is the best and most appropriate provider of this service.This arrangement for the provision of maintenance at the Royal Jubilee Hospital is an example of:

A) Chosen instrument
B) Mixed enterprise
C) Public-private partnership
D) Crown corporation
E) Quasi-government

Question 46

The Canadian Radio-Television Telecommunications Commissions exemplifies which form of regulation?

A) Self-regulation
B) Negotiated regulation
C) Mandated regulation
D) Industry regulation
E) Quasi-government regulation

Question 47

The corporate agenda includes all of the following,except:

A) Decreased government involvement in the economy
B) Reduced corporate taxation
C) Reduction of government expenditures
D) Increased trade barriers to protect Canadian business
E) Weakening union's right to organize

Question 48

Which of the following is an example of tax expenditure?

A) Accelerated depreciation
B) Inventory valuation adjustment
C) Capital gain exemptions
D) Business deductions
E) All of the above

Question 49

There are specific downsides to business being involved in politics.These downsides include all of the following,except:

A) Conflicts of interest exist
B) Business are not neutral
C) Firms already have too much power
D) Involvement may be perceived as bias
E) Corporations permit employees to be involved in political activities without restriction.

Question 50

The Government of Saskatchewan owns and operates Saskatchewan Government Insurance (SGI),which provides insurance for automobile owners in the province.SGI is an example of a:

A) Chosen instrument
B) Mixed enterprise
C) Public-private partnership
D) Crown corporation
E) Quasi-government

Question 51

Morality has been legislated through the legal system.Such laws include all of the following,except:

A) Dishonest business practices
B) Preventing monopolistic behaviour
C) Employee health and safety
D) Conducting business with corrupt foreign regimes
E) Corporate business responsibility

Question 52

Which of the following is not an argument against corporate involvement in politics?

A) Business should be publicly neutral
B) Businesspersons are not necessarily qualified to deal with social issues
C) Business has too much power already
D) Businesses are biased
E) Businesses are taxpayers

Question 53

Bombardier,a Canadian company that through its subsidiaries manufactures products as diverse as Skidoos and Lear Jets,has received consider financial support from the Canadian government,through offerings such as loans and grants over many years.Bombardier can,in this context,be considered a:

A) Chosen instrument
B) Mixed enterprise
C) Public-private partnership
D) Crown corporation
E) Quasi-government

Question 54

In which of the following ways is business involved in politics?

A) Financing political parties
B) Public support of a candidate
C) Public expression of views on political issues
D) Business executives running for public office
E) All of the above

Question 55

Criticism of lobbying relates to all of the following reasons,except:

A) It offsets the influences of other groups
B) It is a distasteful activity
C) Lobbyists present one-sided views
D) Lobbyists have unequal access to government
E) Costs of lobbying is passed on to consumers

Question 56

The government has determined that it is in society's interest to ensure that consumers are protected from security fraud.There are laws that require stock exchanges,for example,to develop their own agencies to investigate allegations of insider trading.The provincial securities commission is an example of a ____________ that operates under __________ form of regulatory control.

A) self-regulatory organization; quasi-government self-regulation
B) government-regulatory organization; quasi-government self-regulation
C) self-regulatory organization; mandated self-regulation
D) government-regulatory organization; mandated self-regulation
E) None of the answers.

Question 57

The presence of the Canada Post outlet in the local drugstore is very convenient for Mary.Previously,she would have to travel several times a week to the government-operated post office,which was located in a different part of her community.When the government announced that it would franchise out postal services,she had been concerned that she would be paying the businesses user fees,but her costs for mailing product had not changed at all.The franchising of postal outlets is an example of which form of privatization?

A) Privatization of the financing of services that continue to be produced by the public sector.
B) Privatization of the provision of a service that continues to be financed by the public sector out of government revenues.
C) Load shedding.
D) Sale of government-owned enterprise.
E) Liberalization of public policy.

Question 58

Privatization can take many forms.These forms include all of the following,except:

A) Divestiture
B) Contracting out
C) Monopoly franchise
D) Management contracts
E) Bailouts

Question 59

The expenditure level,of all three levels of the Canadian government,is roughly equal to _____ percent of GNP.

A) 10
B) 25
C) 40
D) 55
E) 60

Question 60

Businesspersons and organizations are often critical of what they perceive to be costly and inappropriate social programs directed at individuals.On the other hand,businesses rarely turn down tax incentives and loan guarantees that enable them to lower costs and increase their returns to shareholders.The term _________ is derogatively applied to businesses that accept such financial offerings from government.

A) corporate agenda
B) social welfare
C) load shedding
D) corporate welfare
E) None of the answers.

Question 61

Discuss quasi-government regulation.Provide examples in the Canadian economy.

Question 62

Summarize three ways in which businesses are involved in politics.

Question 63

How does the trend toward privatization provide opportunities for business?

Question 64

The federal government does not impact the influence of business dealings by:

A) requiring that contacts with senior government officials be recorded.
B) requiring senior officials who leave public service to wait three years before becoming a lobbyist.
C) cleaning up the process of awarding of contracts.
D) protecting public-service whistleblowers.
E) reforming the financing of political parties.

Question 65

Outline the major components of a corporate agenda?

Question 66

Discuss the degree and influence of Canadian business in politics.

Question 67

Discuss laissez-faire market regulation.

Question 68

What is meant by a public-private partnership (PPP)?

Question 69

There are significant implications regarding business-government relationships.Which of the following is not an implication?

A) Government interference in the operation of businesses.
B) Larger corporations have more access to government than smaller firms.
C) Improper awarding of contracts.
D) Lack of transparency in the relationship.
E) Lack of accountability between federal government and business regarding secret donations to political candidates.

Question 70

Why are some people so critical of lobbying?

Question 71

With the use of specific examples,discuss the morality of operating some government-owned business corporations.