Sustainable Business Practices
Study Guide Questions
Course Introduction
Sustainable Business Practices explores the strategies and frameworks that organizations use to achieve long-term profitability while minimizing their environmental impact and promoting social responsibility. The course examines the integration of sustainability into core business operations, including supply chain management, product development, and stakeholder engagement. Students will analyze case studies, evaluate sustainability reporting, and discuss the challenges and opportunities associated with adopting green initiatives. By the end of the course, learners will understand how businesses can drive positive change and create value for both shareholders and society through ethical and sustainable decision-making.
Recommended Textbook Business and Society Ethics Sustainability and Stakeholder Management 10th Edition by Carroll
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Chapter 1: The Business and Society Relationship
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Sample Questions
Q1) What is the difference between internal and external stakeholders?
Answer: The primary difference between internal and external stakeholders is their relationship to the firm. Internal stakeholders are considered to be "insiders"--that is, they have a direct impact on the decisions and operations of the firm. Owners and employees are the most widely recognized internal stakeholders. External stakeholders are those parties "outside" the firm--those who may be able to influence the decisions and actions taken inside the organization, but cannot directly implement them. The government, consumers, and community members are primary external stakeholders. For those familiar with the concept of line and staff functions within an organization, internal stakeholders can be thought of as analogous to the line, and external stakeholders as similar to staff functions.
Q2) Explain what is meant by spheres of power.
Answer: The concept of spheres of power recognizes that a person or organization may have different levels of influence in different areas of society. For example, the Pope is widely recognized to have authority and power relative to matters of organized religion. However, his power in the technological environment is largely non-existent. Similarly, the National Collegiate Athletic Association (NCAA) is extremely powerful in the field of intercollegiate athletics, but is not a factor in the ecological concerns.
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Chapter 2: Corporate Social Responsibility, Citizenship, and Sustainability
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Sample Questions
Q1) The marketplace in the classical view of economics, while being a good allocator of goods and services, does not do a good job of ensuring that business always acts fairly and ethically.
A)True
B)False
Answer: True
Q2) Which of the following is not a dimension of Carroll's corporate social performance model?
A) social responsibility categories
B) funding sources
C) philosophy of social responsiveness
D) issues
Answer: B
Q3) The CSR Pyramid is a stakeholder model--that is, each of its components addresses different stakeholders.
A)True
B)False
Answer: True
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Chapter 3: The Stakeholder Approach to Business, Society, and Ethics
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Sample Questions
Q1) The stakeholder view of the firm is now universally accepted.
A)True
B)False
Answer: False
Q2) Which of the following is not considered an important function of stakeholder management?
A) to lead
B) to understand
C) to analyze
D) to manage
Answer: A
Q3) Which of the firm's social responsibilities is not relevant in analyzing management's duties to stakeholders?
A) economic
B) legal
C) ethical
D) philanthropic
Answer: A
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Chapter 4: Corporate Governance: Foundational Issues
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Sample Questions
Q1) Business, by virtue of its place in society, has an inherent right to exist.
A)True
B)False
Q2) The dynamic process by which business seeks to perpetuate its acceptance is called
A) advertising.
B) marketing.
C) legitimation.
D) embedding.
Q3) Which of the following is not an argument against the use of golden parachutes?
A) The covered executives are already being well paid for their work.
B) The covered executives are given an incentive to run the company poorly.
C) The covered executives are being rewarded for failure.
D) The covered executives are giving themselves the golden parachutes.
Q4) Shareholder activism
A) was started by the counter culture during the 1960s.
B) has been around for more than sixty years.
C) is lead by the Roman Catholic church.
D) relies on large institutional investors to introduce most of the shareholder resolutions.
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Chapter 5: Strategic Management and Corporate Public Affairs
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Sample Questions
Q1) The deeply ingrained principles that guide all of a company's actions and decisions are the firm's
A) vision statements.
B) guiding lights.
C) core values.
D) mission statements.
Q2) The enterprise-level strategy may addresses the firm's
A) Obligations to stockholders.
B) Role in society.
C) Implications of cohesion.
D) Competition strategy.
Q3) Corporate public policy takes place primarily at the corporate level of strategy.
A)True
B)False
Q4) Which is not a pro of B Corporation status?
A) built in community
B) investor pressure
C) partners with similar values
D) good publicity
Page 7
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Chapter 6: Risk, Issue, and Crisis Management
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Sample Questions
Q1) Explain how the ranking and prioritization of issues would occur.
Q2) Evaluate the actions taken by Schwan Sales Enterprises, Inc. that allowed it to successfully manage its crisis with the ice cream it produced.
Q3) Issues management today can be considered a subset of the activities of
A) public affairs departments.
B) strategic planning staffs.
C) public relations departments.
D) various ad hoc committees.
Q4) The most rudimentary form of issue identification entails
A) subscribing to a news clipping service.
B) subscribing to a forecasting service.
C) assigning a member of the organization to continuously scan a variety of publications.
D) relying on the staff of the public affairs office to scan the environment.
Q5) The issues development process refers to the transformation of issues from a low-key and flexible stage to the regulation and litigation stage.
A)True
B)False
Q6) Discuss some of the relevant considerations when forming a crisis team.
Page 8
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Chapter 7: Business Ethics Essentials
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Sample Questions
Q1) Ethical behavior is generally considered to be on a higher plane than legal behavior.
A)True
B)False
Q2) The model of ethical management in which managers fail to take morality into account when making decisions is
A) immoral management.
B) moral management.
C) semi-moral management.
D) amoral management.
Q3) A doctrine or system regarding one's personal compass regarding right or wrong is called
A) ethics.
B) deontology.
C) morality.
D) moral philosophy.
Q4) Describe how a Venn diagram can help a manager evaluate moral dilemmas and come to decisions about those situations.
Q5) Briefly describe the process of moral development described by Kohlberg.
Q6) What is the distinction that the textbook draws between ethics and morality?
Page 9
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Chapter 8: Managerial and Organizational Ethics
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Q1) The motive behind managers' pressure on subordinates to perform is most likely the emphasis on economic success. Assuming this statement is true, relate this fact to Lawrence Kohlberg's observation that most adults operate at Level 2, the conventional level of moral development. What implications do these facts have for ethical behavior in organizations?
Q2) Principles approach does not consider more solid foundations for ethical decision making.
A)True
B)False
Q3) The concept of servant leadership states that leaders should seek first to serve their followers, and by doing so, they become great leaders. Evaluate this idea. Is it something that would work in the United States?
Q4) Ethical theories that focus on duties are called A) teleological.
B) virtue theories.
C) principled rights.
D) deontological.
Q5) Defend the idea of character education being provided by corporations.
Q6) Discuss and evaluate the Rawls principle of justice provided in the textbook.
Page 10
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Chapter 9: Business Ethics and Technology
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Q1) Which of the four categories of technology's undesirable side effects is most worrisome? Why?
Q2) One of the most serious invasion of privacy issues with respect to e-commerce is A) access to pornography sites.
B) downloading copyrighted material.
C) collection and use of personal information.
D) sharing medical information with unauthorized users.
Q3) Provide one example of how Internet technology has threatened businesses. Explain how ethics are being violated.
Q4) The public perception of the acceptability of embryonic stem cell research is evolving, with more people believing it is ethical.
A)True
B)False
Q5) At one time, it was assumed that the use of robotics in the workplace would lead to: A) more jobs
B) fewer jobs
C) no change in the number of jobs
D) higher tech jobs
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Chapter 10: Ethical Issues in the Global Arena
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Sample Questions
Q1) The two most widely used global standards are the UN Global Compact and the Caux Roundtable Principles. Compare and contrast the two for their approach to human, labor, and environment rights.
Q2) Peter Drucker has labeled the expanded global marketplace the
A) moral free space.
B) hypercompetitive economy.
C) transnational economy.
D) multinational competitive sphere.
Q3) Arguments against bribery include all the following except
A) you shouldn't compromise your beliefs.
B) bribery is illegal in the United States.
C) managers can deal with corrupt governments.
D) one should take a stand for honesty.
Q4) Global trade is:
A) speeding up.
B) slowing down.
C) doing about the same.
D) diminishing exponentially.
Q5) Provide an example of how the FCPA has cracked down on corrupt practices.
Page 12
Q6) Review the major causes of the Nestlé infant formula controversy.
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Chapter 11: Business, Government, and Regulation
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Sample Questions
Q1) Keeping people informed is an important social goal of government.
A)True
B)False
Q2) Given information from this chapter, can governments manage more ethically than capitalism?
Q3) One reason that government might regulate business is to control excessive competition. Government also regulates business to control natural monopolies. Which situation is worse--monopoly or excessive competition?
Q4) A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is called a(n)
A) natural monopoly.
B) market failure.
C) externality.
D) deregulated industry.
Q5) Early economic regulations and the government bodies that administered them were usually formed along industry lines.
A)True
B)False
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Chapter 12: Business Influence on Government and Public Policy
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Q1) PACs are uniformly well thought of in American society.
A)True
B)False
Q2) The National Association of Manufacturers (NAM):
A) receives accolades from its small and medium-sized members for focusing on their particular needs.
B) advocates for protectionist trade policies.
C) is the preeminent U.S. manufacturers association as well as the nation's largest industrial trade association.
D) is credited with helping create the gain in manufacturing jobs.
Q3) The National Federation of Independent Businesses (NFIB) attributes its newfound power to
A) the growth of multinational companies.
B) globalization.
C) its new status as a trade association.
D) the growth of small businesses in business news.
Q4) For large corporations today, political involvement is imperative.
A)True
B)False
Q5) Should PACs be outlawed? Why or why not?
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Chapter 13: Consumer Stakeholders: Information Issues
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Sample Questions
Q1) Which of the following is not a law that addresses information disclosure issues?
A) Equal Credit Opportunity Act
B) Credit Collection Limitation Act
C) Truth-in-Lending Act
D) Fair Credit Reporting Act
Q2) What role are the cigarette companies now playing in the ethical issues surrounding smokeless tobacco?
Q3) The most recent trend in sex-appeal advertising campaigns is:
A) to target the Christian right.
B) to target feminists.
C) to target sex workers.
D) to target younger and younger girls.
Q4) Some people say that even uninformative advertising is beneficial to consumers and the economy. Evaluate this argument.
Q5) Plot placement is a response to
A) the TiVo effect.
B) consumer reports.
C) age compression.
D) self-regulatory guidelines.
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Chapter 14: Consumer Stakeholders: Product and Service Issues
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Q1) A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to
A) strict liability.
B) absolute liability.
C) relative liability.
D) market share liability.
Q2) One concern about product liability is the size of the financial awards won in court.
A)True
B)False
Q3) With respect to service, consumers are concerned with which of the following?
A) performance
B) building time
C) provider attributes
D) durability
Q4) Business's response to consumerism over time has been one of A) benign neglect.
B) rapid response.
C) ineffective action, followed by improved responses.
D) extreme care.
Page 16
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Chapter 15: Sustainability and the Natural Environment
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Sample Questions
Q1) Which country releases 3.3 billion tons of carbon dioxide each year due to deforestation?
A) Russia
B) Indonesia
C) the United States
D) less developed countries
Q2) One approach to resolving air pollution problems, intended to reduce a particular pollutant over an entire industrial region by treating all emission sources as if they were under one bubble is called
A) emissions trading.
B) blanket controls.
C) comprehensive emissions regulation.
D) the clean air provision.
Q3) Industrial waste, urban and agricultural runoff, and overharvesting are forms of water pollution.
A)True
B)False
Q4) Is economic growth an appropriate goal for business?
Q5) Describe the basic problems of producing toxic substances.
Q6) What are the likely effects of degraded marine environments?
Page 17
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Chapter 16: Business and Community Stakeholders
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Q1) Responsibility is considered a standard of excellence in corporate community involvement.
A)True
B)False
Q2) Which of the following is not a way in which companies can benefit from volunteer programs?
A) developing strong ties with local government officials
B) developing employee skills
C) recruiting and retaining employees
D) improving the company's reputation
Q3) Companies can benefit from volunteer programs that they sponsor in all of the ways shown below except
A) improving employee skills and training.
B) increasing productivity at work.
C) encouraging teamwork.
D) developing leadership skills.
Q4) Monitoring the company's community involvement projects entails making adjustments when needed.
A)True
B)False
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Chapter 17: Employee Stakeholders and Workplace Issues
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Sample Questions
Q1) Private corporations have not had to recognize employee rights because A) they are exempted from doing so by federal law.
B) society has honored the corporation's private property rights.
C) employees have never demanded them.
D) management has been separated from ownership.
Q2) Employee rights can be based on any of the following except
A) economic grounds.
B) religious grounds.
C) legal grounds.
D) ethical grounds.
Q3) The new social contract is being driven by A) the employee rights movement.
B) technology.
C) deregulation.
D) global competition.
Q4) Workers' trust in their employers is
A) at an all-time high.
B) a reciprocal relationship.
C) based on the employee rights movement.
D) higher in small companies than in large firms.
Page 19
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Chapter 18: Employee Stakeholders: Privacy, Safety, and Health
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Sample Questions
Q1) Background checks are not concerning to privacy advocates.
A)True
B)False
Q2) To preserve employee rights, companies should
A) require reasonable suspicion before drug testing.
B) disclose surveillance.
C) obtain consent before collecting employee information.
D) All of these.
Q3) Monitoring of employees in the workplace
A) has become the norm in businesses today.
B) is driven by concerns over workplace violence.
C) requires the express consent of employees.
D) is done primarily through video cameras.
Q4) Describe the rights of both employers and employees under the Family and Medical Leave Act (FMLA).
Q5) Knowing the pros and cons of drug testing, is it justified? Make a case to support your answer.
Q6) Workplace violence is a rare occurrence in the United States.
A)True
B)False Page 20
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Chapter 19: Employment Discrimination and Workplace
Diversity
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Q1) Discuss the concept of color bias. Have you ever experienced this, or seen it happen?
Q2) The Equal Pay Act of 1963 prohibits discrimination in pay based on A) age.
B) sex.
C) seniority.
D) skills.
Q3) Either a man or a woman can be the victim of sexual harassment.
A)True
B)False
Q4) The Civil Rights Act of 1964 grew out of A) Lyndon Johnson's "Great Society."
B) the protests and boycotts formed in the 1950s and 1960s.
C) slavery.
D) pressure from the Roman Catholic church.
Q5) Describe the two types of commonly recognized sexual harassment.
Q6) Briefly explain how reverse discrimination evolved from affirmative action.
Q7) The Supreme Court has weakened the anti-retaliation claim of Title VII.
A)True
B)False
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