1- Which of the following is an intangible or invisible cost that companies incur when ethical wrongdoing is disclosed?

Multiple Choice

• legal and investigative costs incurred by the company
• the costs of providing remedial education and ethics training to company personnel
• administrative costs associated with ensuring future compliance
• the costs of complying with often harsher government regulations
• the costs of taking corrective actions

2- Business ethics can be defined as

Multiple Choice

• the application of ethical principles and standards to the actions and decisions of business organizations and the conduct of their personnel.
• principles that are popular in conducting business, but not when crafting and executing a strategy.
• special standards that are only applicable in business situations.
• rules that each company makes about "what is right" and "what is wrong" for top management and the board of directors.
• the application of general ethical principles and standards to the various stakeholders of businesses.

3- Ethical business strategies and behavior are least likely to be present if there is

Multiple Choice

• constant heavy pressure on company managers to meet or beat short-term performance targets.
• a company culture that puts profitability and business performance ahead of ethical behavior.
• confusion over local ethical standards that conflict with those of the company.
• faulty oversight that implicitly allows the overzealous pursuit of personal gain, wealth, and self-interest.
• the "business of business is business, not ethics" kind of thinking.

4- Sustainable business practices are those that

Multiple Choice

• require that shareholders be prepared to accept lower returns to support environmental protection.
• have a close association with a sustainable competitive advantage.
• serve to meet the needs of the present without compromising the world's ability to meet future needs.
• consist of deliberate actions to lobby regulators to change laws protecting the environment.
• enable avoidance of tangible and intangible costs for ethical lapses.

5- The basic tenet of the school of ethical relativism states that

Multiple Choice

• what constitutes ethical or unethical behavior on the part of local businesspeople is properly governed by local ethical standards rather than the standards that prevail in other locations.
• the standards of what constitutes ethical and unethical behavior in business situations are partly universal, but are mainly governed by local business norms.
• many basic moral standards travel well across cultures and countries and really do not vary significantly according to local beliefs, mores, convictions, or circumstances.
• concepts of right and wrong as applied to business situations are always a function of each company's own set of values, beliefs, and ethical convictions.
• individuals and businesses have a basic right to "moral free space," and it is inappropriate to specify permissible and impermissible actions and behaviors.

6- Triple-bottom-line (TBL) reporting via the Global Reporting Initiative is emerging as an important way for companies like Starbucks to

Multiple Choice

• promote its exemplary corporate governance, climate change, and labor practices.
• make the results of Starbucks' CSR strategies apparent to its stakeholders and for its stakeholders to hold Starbucks accountable for its impact on society.
• become a part of an investment opportunity via mutual funds composed of of consumer product companies that excel on the basis of the triple-bottom-line.
• attract sustainably minded investors and creditors.
• minimize transparency regarding its coffee sourcing and roasting operations.

7- A company's corporate social responsibility strategy commonly does not include actions to

Multiple Choice

• maximize returns for shareholders.
• promote workforce diversity.
• protect and sustain the environment.
• ensure the company operates honorably and ethically.
• enhance employee well-being and make the company a great workplace.

8-Businesses have a moral obligation to act in a socially responsible manner because

Multiple Choice

• such an obligation reduces the need to oversee ethical lapses.
• the interests of shareholders depends upon the well-being of society.
• such actions can lead to increased buyer patronage.
• society at large influences the strategy and most long-term goals of a company.
• ordinary decency, civic-mindedness, and contributions to the well-being of society should be expected of any business.

9- A business should endeavor to be socially responsible in its actions and conduct under what set of circumstances?

Multiple Choice

• (1) reduced buyer patronage; (2) increasing the risk of reputation-damaging incidents; (3) pursuing internal benefits such as punishing staff for misdeeds; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) increased buyer patronage; (2) lowering the legal fees to handle reputation-damaging incidents; (3) pursuing internal benefits such as improved efficiency and workforce retention; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) increased competitive advantage; (2) lowering the legal fees to handle reputation-damaging incidents; (3) pursuing internal benefits such as improved efficiency and workforce retention; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) increased buyer patronage; (2) increasing the risk of reputation-damaging incidents; (3) pursuing internal benefits such as punishing staff for misdeeds; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) increased buyer patronage; (2) reducing the risk of reputation-damaging incidents; (3) pursuing internal benefits such as improved efficiency and workforce retention; (4) shareholder benefits based on apparent correlations between CSR and stock price and other measures of financial performance.

10-Socially responsible strategies that create value for customers and lower costs

Multiple Choice

• can improve profits and shareholder value at the same time that they address other stakeholder concerns.
• support the moral case for socially responsible business practices.
• rarely benefit shareholders.
• are usually linked to a company's production activities.
• are invariably difficult to achieve.

11- You have been asked to justify to your top management team several reasons why the exercise of social and environmental responsibility may also be good business for your company. You would say that, "A strong visible social responsibility or environmental sustainability strategy gives our company an edge..."

Multiple Choice

• in taking advantage of opportunities in the present without concern for the future.
• in passing the environmental and social costs on to consumers in order to increase profits.
• in appealing to consumers who prefer to do business with companies that are good corporate citizens.
• in meeting the short-term interests of shareholders.
• in avoiding scrutiny for reputation-damaging incidents.

12-Short-termism involves

Multiple Choice

• managers assessing only the short-term costs of complying with government regulations.
• managers focusing excessively on short-term performance objectives at the expense of long-term strategic objectives.
• managers developing short-term corporate social responsibility strategies and failing to develop long-term sustainability strategies.
• managers overly focusing on long-term performance and disregarding both the day-to-day business and short-term goals.
• managers taking advantage of their position to further their own private interest rather than those of the firm.

13-In 2020 amidst a global pandemic, Smithfield Foods, one of the nation's largest meat-packing companies, came under public scrutiny for refusing to disclose the number of positive novel coronavirus cases among its employees and for its decision to export large amounts of meat to China while publicly warning about a looming meat shortage in the United States. Smithfield Foods's chief executive, Kenneth Sullivan, responded to critics of the company's actions by saying, "Processing plants were no more designed to operate in a pandemic than hospitals were designed to produce pork. In other words, for better or worse, our plants are what they are. Four walls, engineered design, efficient use of space, etc." How would you characterize Smithfield Foods' ethical strategy?

Multiple Choice

• Its ethical strategy constitutes good business and pursues the best interests of all stakeholders.
• Its ethical strategy is likely to lead to lower employee morale, higher employee absenteeism, and higher employee cynicism.
• Its ethical strategy will enhance its reputation because "the business of business is business."
• Its ethical strategy is morally wrong.
• Its ethical strategy will automatically result in damage to a company's reputation and produce costly consequences.

14- In late June 2020, CrossFit's founder and CEO Greg Glassman outraged customers, sponsors, trainers, and affiliated gym owners when he wrote a controversial tweet about George Floyd, comparing Floyd's killing and the subsequent Black Lives Matter demonstrations to the novel coronavirus pandemic. Then, Glassman made offensive comments while on a call with CrossFit gym owners (the audio of which was leaked to BuzzFeed), including, "We're not mourning for George FloydI don't think me or any of my staff are." As a result, among the intangible costs to CrossFit are

Multiple Choice

• (1) decreased buyer patronage, (2) decreasing the risk of reputation-damaging incidents, (3) pursuing internal benefits such as punishing staff for misdeeds, (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) increased buyer patronage, (2) lowering the legal fees to handle reputation-damaging incidents, (3) pursuing internal benefits such as improved efficiency and workforce retention, (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) reduced buyer patronage, (2) increasing time spent to repair reputation-damaging incidents, (3) reprimands for or dismissal of the CEO, (4) pursuing a greater commitment to diversity to earn back the trust of stakeholders.
• (1) increased competitive advantage, (2) lowering the legal fees to handle reputation-damaging incidents, (3) pursuing internal benefits such as improved efficiency and workforce retention, (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.
• (1) increased employee morale, (2) reducing the risk of reputation-damaging incidents, (3) pursuing internal benefits such as improved efficiency and workforce retention, (4) shareholder benefits based on apparent correlations between CSR and stock price and other measures of financial performance.

15- Self-dealing occurs when managers

Multiple Choice

• entrust their employees to behave ethically and implement self-regulating processes.
• try to overcome ethical issues by implementing a code of conduct and control the adherence.
• refuse to accept oversight by the company's corporate board.
• focus excessive attention on short-term performance objectives at the expense of longer-term strategic objectives.
• take advantage of their position to further their own private interests rather than those of the firm.