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Business Ethics
Q:
Assume that you manage the public affairs office for a large American financial investment firm. Your company has decided to pay incentive bonuses to individuals for the number and volume of investment exchanges made. Using the knowledge that you have gained so far in this class (i.e., from all chapters and discussions), develop a policy on incentive bonuses for the firm's public affairs office.
Q:
Competitive advantage of nations means that a country has a cluster of similar companies in industries that give the country a special advantage over other countries.
(A) True
(B) False
Q:
What is meant by a public affairs strategy?
Q:
With the collapse of the Communist Party rule in the former Soviet Union and its satellites in Eastern Europe, only a few real central state control systems remain,
(A) True
(B) False
Q:
Compare the public affairs office of today with its predecessor from twenty years ago.
Q:
China is a Communist country with central planning that has no market economy.
(A) True
(B) False
Q:
Explain Porter and Kramer's perspective that interdependence between business and society takes two forms.
Q:
________ holds that international trade is based on gains from trade.
(A) Initialization
(B) Competitive theory
(C) Comparative advantage
(D) Unfair advantage
(E) Central state control
Q:
Name some issues that businesses encounter daily that involve highly visible public and ethical issues. What happens to these issues in the long term?
Q:
The ________ Act directed companies operating in America to set up whistleblower hotlines for employees to report potential corporate abuse.
(A) Fair Trade
(B) Sherman Anti-Trust
(C) Wheeler-Lea
(D) Sarbanes-Oxley
(E) McCain-Romney
Q:
Explain the relationship of ethics to strategic management.
Q:
A ________ occurs when a country imports more than it exports.
(A) trade deficit
(B) trade embargo
(C) trade surplus
(D) trade ban
(E) retaliation
Q:
What is a "value shift" and how does it come about?
Q:
The EU has three important systems that improve trade for member countries, and those who conduct business in the EU. Describe how the EU benefits from these systems.
Q:
What is a "benefit corporation?" Why do you think such an entity was created?
Q:
What is the World Bank?
Q:
What does a sustainability report attempt to measure? What is the benefit of integrated reporting?
Q:
Discuss the concepts of trade deficit and trade surplus and describe the relationship between the two.
Q:
Why would a firm elect to perform a sustainability report, when it is not required? What benefits can accrue from a sustainability report?
Q:
Explain competitive theory.
Q:
Identify the four elements of democracy.
Q:
Describe what the text means by "focus on management sustainability."
Q:
Which statements about grease payments, bribes, and offsets are true?
(A) Grease payments involve small amounts of money paid to facilitate employees to do their jobs, usually paid to lower-level employees.
(B) Bribes are given to business and government officials for the purpose of getting or maintaining business, usually paid to high-level officials to buy products.
(C) All are considered illegal in the U.S. However, under U.S. law, grease payments are not considered illegal in foreign countries.
(D) Contingences are government requests to fund non-business projects as a prerequisite to conducting business.
(E) Offsets and extortion are basically the same thing.
Q:
Describe some of the types of evidence that a firm displays enterprise-level strategic thinking.
Q:
Which statements about the WTO, World Bank, and IMF are true?
(A) The IMF acts as a monitor of global currency exchange by helping to maintain a system of payments between all countries by setting the fixed value of each currency.
(B) The WTO administers trade agreements, develops trade rules, and settles trade disputes between member nations.
(C) The World Bank is a lending institution that provides loans and technical assistance to poor countries so that they can conduct trade in the global economy.
(D) The World Bank provides loans to poor countries, and the IMF provides currency exchange services and loans to help with the balance of payments between countries to pay for trade.
(E) The WTO sets and enforces trade rules without providing any financial services.
Q:
Name the categories of concerns considered by strategic management. Why should these concerns be part of corporate strategy?
Q:
Which statements about the types of trade barriers are true?
(A) Subsidies are government funds given to business to lower its cost.
(B) Levees are a tax on imports and exports, making them more expensive.
(C) Quotas set limits on imports and exports, driving up product prices.
(D) Bans prohibit the import or export of products.
(E) All countries welcome free trade and place few restrictions on business activity.
Q:
According the text, the overriding questions that enterprise-level strategy needs to address is, "What do we stand for?" Why is that question considered so important?
Q:
Describe how corporate public policy fits into strategic management.
Q:
Which statements about who benefits and pays the cost of protectionism are true?
(A) Although the global economy is moving toward more free trade, it is mixed with protectionism because international trade policy is driven by domestic politics.
(B) Society pays the cost of protectionism through decreased efficiency in the allocation and utilization of the country's resources.
(C) Society benefits through the government collecting more taxes though keeping foreign goods out of the country.
(D) Consumers pay higher prices, with fewer product choices, to finance business profits and employee wages.
(E) Isolationism and protectionism tend to work against each other.
Q:
Which statements about U.S. business ownership and government–business relations are true?
(A) Governments of major goods-producing countries all behave similarly regarding business and government interaction.
(B) The EU and Japan governments do not engage in business ownership.
(C) EU and Japanese governments are more like referees with business, much like in the U.S.
(D) Democracies are generally more open to capitalism with free enterprise.
(E) The U.S. government generally does not own any business enterprises, does not have joint business ownership, and doesn't even invest in company stocks.
Q:
The public affairs function as we know it today was an outgrowth of:
a. the Depression
b. environmental laws.
c. a leading professional trade organization.
d. the social activism begun decades ago.
Q:
Which statements about the types of businesses in the global economy are true?
(A) An American domestic company conducts business in just one state.
(B) An international company is based in one country but transacts business in other countries.
(C) A multinational company (MNC) has significant direct investment operations in more than one country.
(D) Many domestic companies are importers, and they don't buy or sell foreign products locally.
(E) A direct investment refers to owning operating facilities in other countries.
Q:
In the future, the public affairs function:
a. will wane in popularity
b. will become a lightning rod
c. will become a bridge between strategic management and corporate social performance
d. None of these choices is correct.
Q:
________assess the underlying moral justification for businesses' actions and the consequences of those actions.
(A) Ethical quandaries
(B) Ethical imperialism
(C) Ethical dilemmas
(D) Environmental impact studies
(E) Ethical impact statements
Q:
Value-based enterprises:
a. avoid entanglement with stakeholders
b. actively seek out stakeholders and work cooperatively with them
c. publish a mission statement of their core values
d. do not engage in public affairs
Q:
________are designed to eliminate trade barriers to create free trade between countries and groups of countries.
(A) trade deficits
(B) Trade agreements
(C) Trade embargos
(D) Trade resolutions
(E) Business communities
Q:
Public Affairs activities and functions include all of these EXCEPT:
a. community relations
b. public relations
c. public advertising
d. government affairs
Q:
Which of the following is not true of the EU?
(A) The EU has its laws (all countries must follow) and state law (each country/state has its own laws) similar to U.S. federal and state laws.
(B) The EU has a common currency, the euro, similar to the U.S. dollar.
(C) The EU has a central back system under the European Central Bank (ECB), similar to the U.S. Federal Reserve.
(D) The EU has a president with similar powers of that of the U.S. president.
(E) It is comprised of, at the writing of the textbook, 27 countries.
Q:
One of the major impediments to the advancement of effective sustainability reporting has been:
a. the low regard in which corporations hold sustainability and reporting.
b. the lack of effective sustainability measures corporations may take.
c. the lack of any standardized measures.
d. All of these choices.
Q:
Which of the following is not part of the World Bank Group?
(A) the Trilateral Commission.
(B) the International Bank for Reconstruction and Development
(C) the International Development Association
(D) the International Finance Corporation
(E) The Multilateral Investment Guarantee Agency
Q:
Three broad ways corporations intersect with society include each of the following except:
a. generic social issues
b. value chain social impacts
c. strategic social integration
d. social dimensions of competitive context
Q:
The overall management process that strives to identify corporate purpose and to position a firm relative to its market environment is
a. corporate public affairs
b. collaborative / problem-solving strategy
c. strategic management
d. social performance report
Q:
The _______ deals with the global rules of trade between member nations and ensures smooth and predictable operations.
(A) World Health Organization
(B) International Trade Commission
(C) World Trade Organization
(D) United Federation of Free Markets
(E) Global Business Group
Q:
_______ refers to the act of exporting goods and services to foreign countries at very low prices, sometimes even below cost, in order to increase market share and potentially leading to putting competitors out of business and then raising prices.
(A) Importing
(B) Dumping
(C) Retaliating
(D) Safeguarding
(E) Cheating
Q:
The growth of Public Affairs in the U.S. has grown for all of these reasons EXCEPT:
a. the growing magnitude and impact of government
b. the static nature of the political system
c. the growing recognition by business that it was being outflanked
d. the need to be more active in politics
Q:
Which is not a pro of B Corporation status?
a. built in community
b. investor pressure
c. partners with similar values
d. good publicity
Q:
Central state control does not allow, or limits, private ownership of businesses, and markets are closed because only the government operates all business.
(A) True
(B) False
Q:
Ceres is a national network of investors, organizations and other public interest groups working with companies to promote:
a. corporate international strategy
b. sustainability
c. strategic management initiatives
d. public affairs departments
Q:
List and describe the state court system (in order of hierarchy).
Q:
The chief public affairs officer of the firm should likely be:
a. the Director of Public Relations
b. the Director of Public Affairs
c. the CEO
d. the Director of Community Relations
Q:
Of the three types of mergers, _______ tend to have the least potential for restraint of trade and monopoly because the lines of business are different.
(A) hostile takeovers
(B) backward vertical merger
(C) forward vertical merger
(D) conglomerates
(E) forward vertical merger
Q:
A _______ is a combination of a company with another company in an unrelated industry.
(A) flat takeover
(B) hostile takeover
(C) conglomerate merger
(D) horizontal merger
(E) vertical merger
Q:
Which is not a stakeholder group?
a. community stakeholder
b. social activist shareholder
c. family stakeholder
d. employee stakeholder
Q:
________occur when one company does not want to be acquired.
(A) Acquisition under duress
(B) Hostile takeovers
(C) Merger
(D) Integrated market merger.
(E) Vertical merger
Q:
Which of the following activities is a major function in corporate public affairs?
a. government relations
b. issues management
c. public relations
d. consumer affairs
Q:
The ________ Act prohibits anticompetitive mergers, price discrimination, director interlock, and tying contracts.
(A) Clayton
(B) Sherman
(C) Federal Grace Commission
(D) Gramm-Rudman
(E) Roosevelt-Taft
Q:
The management function responsible for monitoring and managing the business environment is
a. corporate public affairs.
b. corporate public relations.
c. corporate social responsibility.
d. corporate social responsiveness.
Q:
Planning for the turbulent social/ethical stakeholder environment encompasses each of the following EXCEPT
a. strategic management process
b. strategic affairs analysis
c. integrated social reporting
d. public affairs management
Q:
Which of the following is not the objectives of the antitrust laws?
(A) To protect competition.
(B) To protect consumers.
(C) To encourage domination of one company over another.
(D) To protect small business from large businesses.
(E) To prevent predatory pricing.
Q:
Public relations deals with government
a. as one of many concerns
b. as its exclusive focus.
c. primarily through lobbying efforts.
d. primarily through campaign contributions.
Q:
The U.S. District Courts are the trial courts of the federal court system.
(A) True
(B) False
Q:
Which is not a step of strategic management?
a. strategy evolution
b. environmental analysis
c. strategic control
d. brand management
Q:
The Supreme Court can overturn statutes passed by Congress.
(A) True
(B) False
Q:
Antitrust laws are only at the federal level; states cannot have their own antitrust laws.
(A) True
(B) False
Q:
Which of the following is not a reason that the public affairs function grew in stature in the United States?
a. the growing magnitude and impact of government
b. the changing nature of the political system
c. increased pressure to meet quarterly earnings projections
d. the increasing influence of competing interests
Q:
Antitrust investigations closely examine competitive effects to ensure that adequate competition will continue.
(A) True
(B) False
Q:
Public affairs management encompasses all of the following processes except
a. environmental analysis.
b. issues management.
c. crisis management.
d. political lobbying.
Q:
Although both the Department of Justice and the Federal Trade Commission are antitrust enforcement agencies, only the Federal Trade Commission has an antitrust division.
(A) True
(B) False
Q:
Which is not a con of B Corporation status?
a. protection from investor pressures
b. lack of oversight
c. investor weariness
d. legal uncertainty and brand erosion
Q:
Large companies are required by law to file a Premerger Notification and Report Form with the DOJ and FTC of proposed mergers.
(A) True
(B) False
Q:
Sustainability reports help companies
a. By disrupting their communications systems
b. Managing their finances
c. Isolating their performance
d. With their competitive positions
Q:
Exclusive territory occurs when a producer allows only one distributor to sell in an area.
(A) True
(B) False
Q:
The impetus of social sustainability reports has come from
a. Societal and public interest groups expectations
b. Financial investment advisors
c. Marketing firms
d. Domestic companies
Q:
All of the following are used to describe social performance reports except
a. CSR reports
b. Corporate citizenship reports
c. Social audits
d. Sustainability reports
Q:
When a company merges with another company, moving away from the customer, it makes a forward vertical merger.
(A) True
(B) False
Q:
A social audit can be thought of as
a. the first step in planning
b. a narrow list of activities
c. planning and control system
d. a brief experimentation
Q:
There are three types of mergers (and acquisitions): horizontal, vertical, and conglomerate.
(A) True
(B) False
Q:
Which of the following terms does not refer to the same thing?
a. social audit
b. social responsibility report
c. integrated reports
d. social impact statement
Q:
The Sherman Antitrust Act requires premerger notification and approval, and it allows states to sue businesses for price-fixing.
(A) True
(B) False