Ethics and Social Responsibility
Mock Exam
Course Introduction
This course explores fundamental ethical theories and their application to real-world situations, emphasizing individual and organizational responsibilities within society. Students will examine ethical decision-making frameworks, analyze contemporary social issues, and consider the impact of personal and corporate choices on stakeholders and communities. Through case studies and critical discussions, the course fosters a deeper understanding of how ethical principles guide behavior and policy in various professional and social contexts, ultimately preparing students to navigate complex moral challenges with integrity and social awareness.
Recommended Textbook
Business and Society Stakeholders Ethics Public Policy 15th Edition by Anne Lawrence
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Page 2
Chapter 1: The Corporation and Its Stakeholders
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Sample Questions
Q1) Which argument says that stakeholder management realistically depicts how companies really work?
A) Descriptive argument.
B) Instrumental argument.
C) Normative argument.
D) Fiduciary argument.
Answer: A
Q2) When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals,this is an exercise of a stakeholder's:
A) Legal power.
B) Voting power.
C) Economic power.
D) Political power.
Answer: A
Q3) The external environment of business is static.
A)True
B)False
Answer: False
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3
Chapter 2: Managing Public Issues and Stakeholder Relationships
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Sample Questions
Q1) Stakeholder engagement is,at its core,a:
A) Program.
B) Relationship.
C) Process.
D) Systems model.
Answer: B
Q2) The relevance and importance of stakeholders and their issues is known as:
A) Stakeholder salience.
B) Competitive intelligence.
C) Stakeholder materiality.
D) Organizational capacity.
Answer: C
Q3) Firms that generally act only when forced to do so,and then in a defensive manner are:
A) Interactive companies.
B) Proactive companies.
C) Reactive companies.
D) Inactive companies.
Answer: C
Page 4
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Chapter 3: Corporate Social Responsibility and Citizenship
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Sample Questions
Q1) One of the most appealing arguments in favor of corporate social responsibility for business supporters is that voluntary social acts may head off increased government regulation.
A)True
B)False
Answer: True
Q2) BSR (formerly Business for Social Responsibility)helps its 300 member companies:
A) Lobby Congress for socially responsible legislation.
B) Discover tax shelters for social program expenditures.
C) Conduct social audits.
D) Develop sustainable business strategies.
Answer: D
Q3) Global social audit standards concentrate on:
A) Internally focused economic benefits for the firm.
B) Externally focused social benefits for the environment.
C) Externally focused social benefits for key stakeholders.
D) All of the above.
Answer: D
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Chapter 4: Business in a Globalized World
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Sample Questions
Q1) Assets that a person accumulates and owns at a certain point in time are called:
A) Income.
B) Equity.
C) Wealth.
D) Microfinance.
Q2) According to the United Nations,how many transnational corporations operate in the global economy?
A) 49,000.
B) 104,000.
C) 290,000.
D) 900,000.
Q3) A society where economic power is concentrated in the hands of government officials and political authorities is called:
A) A central state control system.
B) A social democracy.
C) A political control system.
D) A military dictatorship.
Q4) Discuss the benefits and costs of globalization.Provide examples of how globalization has helped or harmed individual nations and the world economy.
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Chapter 5: Ethics and Ethical Reasoning
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Q1) What are the four methods of ethical reasoning? Discuss the limitations of each of the four methods.
Q2) All of the following values are present in most ethical decisions <u>except</u>:
A) Be fair and just.
B) Be kind.
C) Act responsibly.
D) Be honest.
Q3) Business cannot expect to be profitable while adhering to ethical principles of conduct.
A)True
B)False
Q4) Under the Sarbanes-Oxley Act,corporations are required to:
A) Have executives vouch for the accuracy of a firm's financial reports.
B) Have their audit committee comprised of only executives employed by the firm.
C) Collect reimbursements from the U.S. government if financial restatements occur.
D) All of the above.
Q5) How does a person's spirituality influence his/her ethical behavior? How have organizations responded to increased attention to spirituality and religion at work attempting to accommodate their employees?
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Chapter 6: Organizational Ethics
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Q1) When attempting to build ethical safeguards into the company,businesses can take the following specific approaches:
A) Institutional and Legal.
B) Legal and Practical.
C) Compliance and Integrity.
D) Value-based and Consequentialism.
Q2) By law,the financial records of publicly held companies are required to be:
A) Managed by an accounting department of at least five CPAs.
B) Summarized in the employee manual for new hires.
C) Reviewed quarterly by the IRS.
D) Audited by a certified professional accounting firm.
Q3) Discuss the importance of ethics training at different levels of an organization.Is it more important for mangers to receive ethical training? Why or why not?
Q4) Ethics training is typically the most costly element of an ethics program.
A)True
B)False
Q5) Define bribery.Explain why certain countries are less likely to participate in such acts.
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Chapter 7: Businessgovernment Relations
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Q1) Economists reported that the costs of regulatory compliance were highest for:
A) Vehicle safety.
B) Antitrust issues.
C) Worker safety.
D) Consumer protection.
Q2) How do governments seek to cooperate with or oppose business? Does it matter whether the government is legitimately elected or has illegitimately acquired power?
Q3) Public policy is a plan of action undertaken by business to influence the government.
A)True
B)False
Q4) Which of the following is <u>not</u> an example of a social regulatory agency?
A) Consumer Product Safety Commission.
B) Equal Employment Opportunity Commission.
C) National Highway Traffic Safety Administration.
D) National Labor Relations Board.
Q5) Predatory pricing is a violation of antitrust laws.
A)True B)False
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Chapter 8: Influencing the Political Environment
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Sample Questions
Q1) Which of the following is <u>not</u> a constituency-building strategy tool?
A) Expert witness testimony.
B) Advocacy advertising.
C) Public relations.
D) Legal challenges.
Q2) Firms in the chemical industry,which must contend with frequently changing environmental regulations and the risk of dangerous accidents,usually have:
A) No defined political strategy.
B) A sophisticated political strategy.
C) A political strategy focused on intellectual property rights.
D) A political strategy focused on licensing rights.
Q3) Describe the role of an organization's public affairs department and describe who would be in charge of that department.
Q4) When a manager directly employs a lobbyist to represent the company's political strategy in Washington this is called aggressive organizational involvement in politics.
A)True
B)False
Q5) How do the three types of corporate political strategies differ from each other?
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Chapter 9: Sustainable Development and Global Business
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Sample Questions
Q1) Land,even when properly cared for,is not a renewable resource.
A)True
B)False
Q2) Which of the following statements is <u>not</u> true about the population?
A) Over the next century, population growth is expected to be greatest in developed nations.
B) For many thousands of years, population growth was gradual.
C) Industrial production would have to quintuple over the next 40 years in order to maintain the same living standard that people have now, given expected population growth.
D) Just 10,000 years ago, the earth was home to no more than 10 million humans, scattered in small settlements.
Q3) Explain how Masdar is an example of a completely sustainable community.
Q4) Life-cycle analysis involves collecting information on the lifelong environmental impact of a product,all the way from extraction of raw material,to manufacturing,to its distribution,use and ultimate disposal.
A)True
B)False
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Chapter 10: Managing for Sustainability
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Sample Questions
Q1) What are the appropriate civil and criminal penalties for companies that violate environmental laws? What types of guidelines exist for sentencing environmental wrongdoers?
Q2) When businesses form voluntary,collaborative partnerships with environmental organizations and regulators to achieve specific objectives this is called:
A) Inter-organizational alliances.
B) Environmental partnerships.
C) Cross-functional teams.
D) Command and control.
Q3) The first United States federal laws to protect the environment involved protecting navigable waterways.
A)True
B)False
Q4) Which of these statements is true about ecologically sustainable organizations?
A) Making and transporting products using minimal energy.
B) Using more natural resources than they replenish.
C) Designing products with limited durability.
D) A and B, but not C.
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Chapter 11: The Role of Technology
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Sample Questions
Q1) Technology tends to ripple through society until it affects every community.
A)True
B)False
Q2) The information phase of technology primarily requires:
A) Providing services.
B) Intellectual and electronic skills.
C) Manual and machine skills.
D) The same skills as needed in previous phases.
Q3) The phase of technology that focuses on building material goods and manual labor is:
A) Agrarian.
B) Service.
C) Industrial.
D) Information.
Q4) Another name for unsolicited commercial emails is:
A) Spam.
B) Junk e-mail.
C) UCE.
D) All of the above.
Q5) Define technology and describe its three primary features.
Page 13
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Chapter 12: Regulating and Managing Information Technology
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Sample Questions
Q1) A CIO is the company's:
A) Chief intelligence officer.
B) Chief information officer.
C) Coordinator of international operations.
D) Controller of internal overhead.
Q2) Which country recently required all video-streaming sites to be approved by the government or risk having their content banned?
A) Iran.
B) Pakistan.
C) North Korea.
D) China.
Q3) Discuss the global impact of cybercrime and explain how some international and national groups are fighting it.
Q4) Cybersecurity experts recommend including which essential elements for an incident-response plan for cyberattacks?
A) Support from executive leadership.
B) Involvement by all functional departments.
C) Focus on how to respond to a breach.
D) All of the above.
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Chapter 13: Shareholder Rights and Corporate Governance
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Q1) A reason for institutions becoming more assertive in promoting the interests of their member investors is:
A) It is difficult for institutions to sell their holdings.
B) Institutional investors are rarely able to influence management policy.
C) Institutions have greater flexibility in selling stocks.
D) Institutions have nominated members on the finance committee of the board of directors.
Q2) When boards of directors meet without management present,they are more likely to have completely candid discussions about a company's affairs.
A)True
B)False
Q3) Which of the following arguments supports the concept of high executive compensation?
A) Inflated executive pay helps U.S. firms compete with foreign rivals.
B) High executive pay drives away talented middle managers who feel unfairly compensated.
C) High salaries provide an incentive for innovation and risk-taking.
D) There is currently a surplus of qualified executive candidates.
Q4) What is insider trading? Explain how the courts have defined this practice.
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Chapter 14: Consumer Protection
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Sample Questions
Q1) Online shoppers always run the risk that:
A) They might have to pay state and local taxes on goods purchased.
B) Their favorite Web sites provide a large variety of products and services.
C) The government might become overly involved in protecting consumer privacy.
D) Information they reveal in the course of a sales transaction might be misused.
Q2) Advertising that is targeted to particular customers,based on their observed online behavior,is called:
A) Targeted advertising.
B) Tracking advertising.
C) Behavioral advertising.
D) Online advertising.
Q3) One reason for business efforts to reform product liability laws is the increasing cost of insuring against liability suits.
A)True
B)False
Q4) Consumers make less rational choices when they have accurate information about a product.
A)True
B)False
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Chapter 15: Employees and the Corporation
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Q1) Discuss working conditions around the world.What challenges face multinational corporations? What approaches are companies using to establish fair labor standards? Are there circumstances under which some approaches might work better than others?
Q2) Only after which of the following conditions is (are)met,should the whistle-blower go public?
A) The unreported act would do serious and considerable harm to the public.
B) The employee has tried and failed to resolve the issue internally.
C) Reporting the problem publicly probably will not resolve the issue.
D) Both A and B, but not C.
Q3) Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?
A) False Standards Act.
B) Economic Priorities Act (as amended in 1999).
C) U.S. False Claims Act (as amended in 1986).
D) Fair Labor Standards Act.
Q4) Employees in the United States have the right to organize and bargain collectively.
A)True
B)False
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Page 17
Chapter 16: Managing a Diverse Workforce
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Sample Questions
Q1) Under the Family and Medical Leave Act (FMLA),passed in 1993:
A) Companies that employ 100 or more people must grant unpaid, job protected leaves of up to 12 weeks to employees faced with serious family needs.
B) Companies that employ 50 or more people must grant unpaid, job protected leaves of up to 36 weeks to employees faced with serious family needs.
C) Companies that employ 50 or more people must grant unpaid, job protected leaves of up to 12 weeks to employees faced with serious family needs.
D) Companies that employ 50 or less people are required to do more for expectant and new parents.
Q2) Which of the following is (are)true about child care assistance in the workplace?
A) It helps reduce employee absenteeism and tardiness.
B) It aids in recruiting workers by making the company more attractive to parents.
C) It helps retain talented employees.
D) All of the above.
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18
Chapter 17: Business and Its Suppliers
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Sample Questions
Q1) Lead firms often choose to develop their supplier's capabilities when the supplier has a strong management team,many resources,and high technical knowledge.
A)True
B)False
Q2) Studying the underlying cause of repeated supplier violations is called:
A) Capability-building.
B) Supplier scoring.
C) Root cause analysis.
D) Supply chain auditing.
Q3) According to a recent survey,what percentage of firms would terminate a supplier if serious violations were found?
A) 7 percent.
B) 26 percent.
C) 48 percent.
D) 97 percent.
Q4) Assurance that a supplier is in compliance with the relevant code of conduct is determined by a supply chain audit.
A)True
B)False
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Chapter 18: The Community and the Corporation
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Sample Questions
Q1) Many companies have turned to technology to improve the amount and effectiveness of employee volunteerism.
A)True
B)False
Q2) Social capital refers to the norms and networks that enable collective action.
A)True
B)False
Q3) Habitat for Humanity is considered a:
A) Corporation.
B) Government division.
C) Nongovernmental organization.
D) Program for the homeless.
Q4) Another term for corporate giving is corporate:
A) Welfare.
B) Goodwill.
C) Philanthropy.
D) Citizenship.
Q5) Describe a collaborative partnership between a business and community that attempts to address a social problem.What strengths does each party bring to the collaboration?
Page 20
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Chapter 19: The Public and Corporate Reputation
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Sample Questions
Q1) A customer tweeting about a recent bad shopping experience is using which type of media communication?
A) Paid content.
B) Public service announcement.
C) User-generated content.
D) Event sponsorship.
Q2) The variety of communications channels for public relations departments has decreased due to combined technology options.
A)True
B)False
Q3) Brand management often involves conveying what about a product or service?
A) The solutions provided.
B) The disadvantages of the product or service.
C) The expected experience.
D) Both A and C, but not B.
Q4) Building a positive and ethical reputation requires a firm to:
A) Offer products that are somewhat better than their competitors.
B) Convey a compelling story about the firm and what it stands for.
C) Avoid attention from the news media.
D) Pay opinion leaders to write positive reviews.
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