Learn Smart 9 Flashcards
Which of the following statements about corporate culture is true?
Company culture can be a powerful mechanism for communicating the degree to which a company is committed to its values
differences in which of the following cause variations in ethical standards across cultures
- religious beliefs
- social customs
- core values
The concept of corporate ____ is based on the idea that a corporation should balance the interest of all its stakeholders, including shareholders, employees, customers, and the local community.
social responsibility
Environmental sustainability strategies consist of deliberate and focused actions to conduct businesses in a fashion that does which of the following?
- protects natural resources and ecological support systems
- guards against practices that will ultimately endanger the planet
Short-termism at a company can do which of the following?
- undermine activities that promote long term success
- weaken the company’s brand
A Corporate social responsibility strategy can be defined as
the combination of socially responsible endeavors a company elects to pursue
Which of the following have been cited as reasons why a company has a moral obligation to act in a manner that benefits all stakeholders
- civic-mindedness
- ordinary decency
Examining which of the following are ways to determine whether a company is actually guided by its official code of ethics?
- the extent to which daily operations follow the code of ethics
- whether the company adheres to the code of ethics when crafting strategy
Cultural pressure at a company to hit goals at all costs
- can cause even honorable employees to behave unethically
- creates an environment in which workers have license to pursue any profitable strategy they can get away with
- virtually ensures that unethical employees will minimize the importance of observing ethical standards s
in the united states, publicly traded companies must have an official code of ethics or explain why they do not have one
in the united states, publicly traded companies must have an official code of ethics or explain why they do not have one
Ethical strategies are good business because they are likely to
- sustain the reputation of the company
- win the approval of suppliers, employees, and investors
Sustainable business practices can be defined as those practices that
are capable of meeting the needs of the present without compromising the needs of the future
Which of the following are actions a company should take according to integrative social contracts theory
- Adhere to local values and customs that define the boundaries of ethical behavior
- Uphold a small number of universal ethical principles that are applicable in all situations
In a world of ethical relativism
there are few absolutes for judging the conduct of a company in various markets
Which of the following statements is true concerning the thinking that the business of business is business not eithics?
- that type of thinking has been apparent in a number business scaldals covered in the media
- the type of thinking is dangerous it increases the likelihood that a company will adopt unethical strategies
A cultural norm at a company can be understood as
-the generally accepted methods of doing business on a day to day basis
Which of the following statements about corporate social responsibility (CSR) are true?
- CSR strategies are often linked to a company’s core values
- corporate citizenship is a term commonly used to describe CSR initiatives
- Many firms organize their CSR strategies around theme that are consistent with their production or market strategies
Business managers who are not deeply committed to ethical principles may nether less act ethically because they
- Wish to avoid scandal and disciplinary action
- hope to prevent their staff from thinking negatively of them
recognize the risks associated with unethical srategies
Which set of standards takes precedence in integrative social contracts theory?
universal ethical norms
Some people have argued that there is an implied social contract between a business and the members of society, according to which of the following
- the members of society agree not to unreasonably restrain a business’s pursuit of fair profit
- a business has a amoral responsibility to promote the general welfare and avoid doing harm
Ethical business strategies
-typically rise from managers
Adherents of the concepts of ethical relativism believe that
- given actions are ethically right or wrong depending on the ethical norms of the country in which they take place
- holding a common template for judging the ethics of business actions everywhere is ethically problematic
which of the following have been cited as reaason’s why a company has a moral obligation to act in a manner the benefits all stakeholders
- Civic-mindedness
- ordinary decency
Senior executives can take steps to ensure that a company abides by its code of ethics by asking if
there is anything in a proposed action that the SEC might consider
which of the following practices increase the likelihood that a company will pursue unethical business strategies?
- faulty oversight of daily business practices
- putting pressure on company managers to meet short term targets
The environmental sustainability strategies of ford and green mountain coffee roasters have shown that
a significant number of consumers will buy a company’s products in part to encourage environmentally sustainable business practices
Companies whose success depends on sustaining high morale and most are likely to pursue CSR strategies that
create a culture in the workplace that inspires dedication
Which of the following are losses from pursing unethical strategies that are difficult to measure?
the dissatisfaction of employees with a demand company reputation
Which of the following practices at the company Enron likely promoted unethical behavior among employees?
- encouraging employees to operate outside of company policy to raise revenues
- pursuing an aggressive performance evaluation process that led to dismissal if employees who did not bring enough revenue
- celebrating the wealth of high performing employees to motivate other employees to match the star teams work results
the possible consequences of a companys missing a financial target include
- decreased stock prices
- a lower credit rating
In some cultures, the practices of bring customs officials and paying kickbacks to customers have been justified on the grounds that
are similar to tipping a server in a restaurant
Which of the following statements best describes the clorox companys corporate social agenda
the company has linked its corporate social agenda with actions that support philanthropy and improve the quality of life.
which of the following examples illustrates how socially responsible policies can save a company money in other areas?
- a company offering insurance benefits to a full time and part time employees and having lower rates of employee turnover
- a company investing in a program that helped employees quit smoking and saving millions in health care costs
A company that is committed to environmental sustainability strategies can enhancer revenues by
- Adding energy-saving products to its line of core products
- finding ways to sell rather than dispose of the by products of manufacturing
Which of the following are indicators used to help rank companies in the dow jones sustainability world index for socially conscious investors
- corporate governance
- labor practices
- climate change mitigation
Examples of unbelievers sustainable business practices include
- showing overseas suppliers farming methods that reduce the use of pesticides and maximize annual yields
- tracking agricultural indicators in the food processing division of the corporation
The global reporting initiative has created
a standard framework for comparing company efforts toward achieving corporate social responsibility
Companies that cross ethical boundaries to meet short-term goals are likely to
continue to take unethical steps to meet requirements
A crisis in the residential real estate market was caused in part by which of the following strategies by some banks and mortgage companies
- disguising the nature of the loans and repacking them for sale to investors
- boosting fees earned on home mortgages by lending to high risk clients
which of the following examples show how a commitment to environmental sustainability strategies can offer opportunites for a company to develop new products or increase salses of existing products?
- General electric expanded sales of wind turbines
- nissan and chevy created electric cars
Which of the following stratements about the consequences of pursuing unethical business strategies is true?
the more serious the ethical offense the more costly the damage
self-dealing refers to instances when managers
use their position to promote their own private interests rather than the interests of the firm
Companies that place the little importance onoperating in a socially responsible manner may be vulnerable to criticism from pressure groups whose tactics include
- promoting product boycotts
- generating negative publicity in the media
Unilevers repackaging of product in order to use less plastic has
helped the company reduce the amount of waste that accumulates in landfills
Tighter oversight of banks and mortgage companies resulted from which of the following ?
- a court settlement that included mechanisms for monitoring lending institutions
- a lawsuit initiated by the attorneys general of almost every state
Companies with a reputation for social responsibility and sustainable business practices
- enhance their ability to retain employees
- generally have lower costs for staffing training and recruitment
An Environmental sustainability strategy can enhance a companys competitive advantage by
promoting the companys reputation among environmentally conscious customers
Corporate social responsibility programs commonly include actions that
- sustain the environment
- promote diversity in the workforce
- enhance employee well being
Which of the following are strengths of the concept of ethical universalism
- the concept of ethical universalism helps multinational companies set ethical standards that apply to all personnel
- ethical universalism draws from the ethical views and traditions of numerous societies and cultures
Although many people would agree that child labor is lamentable, others have noted that which of the following are true?
- labor opportunities for children are preferable to a life of begging, drug trafficking, or prostitution
- many poor families throughout the world required financial contributions from their children in order to survive
When activist groups criticized nike for the working condition’s in the asian factories that produced nike footwear, company chairman phil knight
began to monitor working conditions in the factories that made nike products
Which of the following should take the lead in ensuring that a company’s strategic initiatives are in line with the companys code of ethics
senior executives
research has shown a link between product-boycott announcements and
declining stock prices
which of the following are losses from pursuing unethical business strategies that are difficult to measure?
the dissatisfaction of employees with a damaged company reputation
which of the following are considered tabgible, monetary costs of pursuing enethical business strategies?
- fees for ethics training of personnel
-government imposed fines
legal fines
Which of the following measures is most likely to reduce he practice of self dealing a company?
establishing an independent broad to hold managers accountable for their actions
Integrative social contracts theory
gives managers clear guidance when considering differences in ethical standards among countries
Damage to a companys reputation that results from unethical behavior can
- make creditors hesitant to loan funds to the company
- encourage employees to leave the company
- create challenges for recruiting talented staff in the future
Social activist in industrialized countries who focus on the issue of child labor claim that corporations
should not obtain products form foreign suppliers that use underage workers
ethical universalism
allows for a single set of standards
In some countries it is common to pay bribes to government officials in order to accomplish which of the following?
- win a government contract
- facillitate an administrative ruling
- obtain a license or permit
