Business Ethics Exam Questions
Course Introduction
Business Ethics examines the moral challenges and responsibilities faced by individuals and organizations in the business world. This course explores foundational ethical theories and their application to real-world issues such as corporate governance, social responsibility, environmental impact, employee rights, and global business practices. Through case studies and critical analysis, students will learn to identify ethical dilemmas and develop frameworks for decision-making that promote integrity, trust, and sustainable success in business.
Recommended Textbook
Strategic Corporate Social Responsibility Sustainable Value Creation 4th Edition by David Chandler
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15 Chapters
611 Verified Questions
611 Flashcards
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2
Chapter 1: What Is CSR?
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Sample Questions
Q1) Corporate social responsibility adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups.This statement reflects the ________ argument for CSR.
A)ethical
B)moral
C)rational
D)economic
Answer: D
Q2) By adopting a rational argument for corporate social responsibility,firms seek to
A)do the right thing from an ethical perspective.
B)to interpret evolving societal values and stakeholder expectations.
C)make larger societal contributions than simply creating profit.
D)go above and beyond the basic ethical and moral expectations of a society.
Answer: B
Q3) Since the early 19th century,managers have consistently paid attention to the interests of all stakeholders.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Driving Forces of CSR
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) According to the textbook,how does globalization affect the flow of information?
A)Because of globalization,information is communicated more effectively.
B)Globalization allows companies to operate in many countries.
C)Globalization provides more people access to newspapers.
D)Globalization does not affect the flow of information.
Answer: A
Q2) The earth's resources continue to replenish themselves as the human population grows.
A)True
B)False
Answer: False
Q3) Which of the following does the textbook NOT provide as an example of a corporation's sustainability efforts?
A)Sea World's program to nurse sick animals back to health
B)General Electric's Ecoimagination program
C)Unilever's firm-wide sustainable living program
D)Toyota's hybrid car
Answer: A
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4
Chapter 3: Corporate Rights and Responsibilities
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) Limited liability means that no one can sue a corporation.
A)True
B)False
Answer: False
Q2) The ________ is typically recognized as the earliest modern business corporation.
A)East India Company
B)Ford Motor Company
C)Lorillard Tobacco Company
D)Southern Pacific Railroad
Answer: A
Q3) Compared to European firms,US firms are
A)more likely to take a multiconstituency approach to CSR.
B)less likely to take a multiconstituency approach to CSR.
C)equally likely to take a multiconstituency approach to CSR.
D)much more socially responsible.
Answer: B
Q4) Describe the differences between Benefit Corporations and B Corps.Do you think either of these designations is necessary? Why or why not?
Answer: Answers will vary but should correctly describe each entity.
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Chapter 4: Stakeholder Theory
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Sample Questions
Q1) Simon Zadek identifies five stages of learning that organizations go through in developing a sense of corporate responsibility and four stages of intensity to measure the societal issues and public's expectations around the issues.Describe Zadek's model and use the model to analyze a real-life firm facing a corporate responsibility issue,clearly identiftying the firm's location and the issue's location on each axis of the model.
Q2) Ed Freeman famously defined a stakeholder as "any group or individual who can affect or is affected by the achievement of the organization's objectives." Discuss the strengths and weaknesses of this definition,providing examples to support your argument.
Q3) Why does the textbook's author not consider the natural environment a stakeholder?
A)The natural environment lacks agency.
B)Scientists have not presented enough evidence for human-caused global warming.
C)NGOs do not lobby for the natural environment.
D)Other stakeholders do not support the natural environment as an issue.
Q4) Putting yourself in the role of a CEO,describe the five steps of stakeholder prioritization,giving examples from your fictitious firm.
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6
Chapter 5: Corporate Stakeholder Responsibility
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) Companies are more likely to continue to act socially responsible if it is the right thing to do.
A)True
B)False
Q2) Firms who do not act responsibly always face negative consequences.
A)True
B)False
Q3) ________ occurs when stakeholders act to punish the firm for not meeting their expectations in relation to that issue.
A)The CSR sweet spot
B)The CSR danger zone
C)The CSR threshold
D)CSR optimization
Q4) For long-term success,a firm should focus on its organizational stakeholders.
A)True
B)False
Q5) The textbook argues that the CSR cause would be advanced considerably if stakeholders are caring,informed,transparent,and educated.Describe what that statement means,citing examples to support your response.
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Chapter 6: Who Owns the Corporation?
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Sample Questions
Q1) Shareholders definitively own the corporation in which they invest.
A)True
B)False
Q2) Since their inception in the United States,corporations have all been limited liability.
A)True
B)False
Q3) Carl Icahn,a major institutional investor who has had public battles with the management of firms such as Netflix and Apple,is considered which type of activist investor?
A)Impact activist
B)Professional activist
C)Social activist
D)Takeover activist
Q4) A limited liability company is,in the eyes of the law,a person.
A)True
B)False
Q5) Would you think twice about investing in a "sin fund" if historical returns showed greater growth potential than SRI funds? What is the justification for your decision?
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Chapter 7: The Pursuit of Profit
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Sample Questions
Q1) Assuming a company found a profitable niche in serving the fourth tier (the 4 billion people at the bottom of the economic pyramid),how might such a breakthrough help the firm sell to the developed world at the top of the economic pyramid?
Q2) ________ are the best hope for social progress in developing countries.
A)Educational institutions
B)For-profit firms
C)Healthcare institutions
D)Transportation infrastructure improvements
Q3) According to the textbook,________ are becomingly increasingly important in developing countries for conducting business.
A)business school graduates
B)elements of technological infrastucture,such as fixed landlines
C)mobile phones
D)NGOs
Q4) Research has shown that consumers at the bottom of the pyramid (BOP)have different aspirations than do other consumers.
A)True
B)False
Q5) Is it OK for a for-profit company to profit from poverty? Why or why not?
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Chapter 8: Incentives and Compliance
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Sample Questions
Q1) Walmart is today considered a market leader on sustainability.
A)True
B)False
Q2) After the devastation of Hurricane Katrina in 2005,________ was/were the first source of relief for residents.
A)the federal government
B)Walmart
C)the state government
D)churches and charitable organizations
Q3) The goal of behavioral economics is to explain human action in terms of ________ rather than ________.
A)theoretical assumptions; empirical examination
B)empirical examination; theoretical assumptions
C)profit maximization; profit optimization
D)profit optimization; theoretical assumptions
Q4) According to Richard Thaler,all nudging should be ________ and ________.
A)efficient; used for the common good
B)transparent; efficient
C)transparent; used for the common good
D)well intentioned; efficient
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Chapter 9: Accountability
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Sample Questions
Q1) The real cost of a gallon of gasoline,after accounting for all costs and removing all existing subsidies,is estimated to be less than $1.
A)True
B)False
Q2) In general,dichotomous measures of corporate social responsibliity are unhelpful to those who advocate for CSR because
A)such measures reflect the biases of the measuring organization.
B)CSR is more complicated than a simple yes or no.
C)all firms contain good and bad.
D)all of the above.
Q3) ISO (International Organization for Standardization)26000 was developed as
A)a mandatory corporate social responsibility standard applied in Europe.
B)a guide.
C)a mandatory standard in Europe and a voluntary standard for the rest of the world.
D)a corporate social responsibility standard that only applies in Scandinavian countries.
Q4) Why is the measurement of corporate social responsibliity such a pressing and contentious area within the overall CSR debate?
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11
Chapter 10: Strategy + CSR
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Sample Questions
Q1) Firms that sell based on price are likely
A)to pay greater attention to corporate social responsibility.
B)to have the resources to mount an effective corporate social responsibility campaign.
C)to attract less attention from consumers on issues unrelated to price.
D)to be big and thus attract greater attention from interest groups.
Q2) The ________ perspective assumes a zero-sum game and a confrontational view.
A)focused
B)industry
C)resources
D)strategic CSR
Q3) According to Prahalad and Hamel,a firm's capability must meet three criteria to be truly considered a core competency.Which of the following is NOT one of the criteria?
A)It should be applicable to multiple markets.
B)It should emphasize the external context in which the firm operates.
C)It should be valued by the consumer.
D)It should be difficult for a competitor to imitate.
Q4) Define SWOT analysis and provide an example of how such an analysis could be applied to a specific business.
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Page 12
Chapter 11: CSR as a Strategic Filter
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Sample Questions
Q1) In the 1990s,Nike's brand was damaged when it was discovered that some of its products were manufactured in sweatshop factories.Since the 1990s,Nike has repaired its brand reputation.According to the textbook,Nike's business strategy before the 1990s did not employ
A)ethical managers.
B)a CSR filter.
C)the appropriate public relations firm.
D)a strategic planning director.
Q2) Leaders of all organizations constantly grapple with the tradeoffs between ________ and ________.
A)methods; results
B)losses; profit
C)profit maximization; profit optimization
D)methods; strategies
Q3) ________ and ________ are two common competitive business strategies described in the textbook.
A)Low-cost,differentiation
B)Differentiation,virtuous cycle
C)Virtuous cycle,environmental
D)Environmental,industry perspective
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Chapter 12: Strategic CSR
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Corporate social responsibility allows executives to address stakeholder concerns in ways that carry strategic benefits for the firm.
A)True
B)False
Q2) Starbuck's Coffee and Farmer Equity (C.A.F.E.)Practices do NOT include guidelines for coffee farmers in which area?
A)Product quality
B)Educational requirements for suppliers
C)Social responsibility
D)Environmental leadership
Q3) In what decade did the Fair Trade label first appear?
A)1960s
B)1970s
C)1980s
D)1990s
Q4) Should Starbucks form partnerships with farmers in Guatemala? Why or why not?
Q5) Ethical behavior is not a prerequisite assumption for strategic CSR.
A)True
B)False
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Chapter 13: Sustainability
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40 Flashcards
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Sample Questions
Q1) China accounts for ________ of the world's increase in the carbon dioxide emitted since 2000.
A)one quarter
B)one third
C)one half
D)two thirds
Q2) The United Nation's Basel Convention is an important government-level initiative.What does it regulate?
A)Carbon emissions
B)E-waste
C)Recycling efforts
D)Water conservation
Q3) Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.
A)True
B)False
Q4) The concept of natural capital fits in the rational argument for CSR.
A)True
B)False
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Chapter 14: Implementing CSR
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Sample Questions
Q1) Which oil company led the way in corporate social responsibility auditing and reports in 1995 following two separate NGO-orchestrated campaigns?
A)BP
B)Chevron
C)Exxon
D)Shell
Q2) What does the Dodd-Frank Act of 2010 illustrate?
A)The ineffectiveness of legislative oversight of the financial system
B)The Iron Law of Social Responsibility
C)That market abuses in the global financial system will occur on a cyclical basis
D)The logic of the too-big-to-fail approach to financial system regulation
Q3) Over the medium to long term,firms implementing strategic corporate social responsibility should have executive buy-in and establish a CSR vision.
A)True
B)False
Q4) Why are ethics codes and employee training important? What are some of the challenges associated with ethics codes?
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16
Chapter 15: Sustainable Value Creation
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/11748
Sample Questions
Q1) A strategic CSR perspective argues that employees shoud be treated as ________ rather than as ________.
A)family members; work acquaintances
B)costs; assets
C)assets; costs
D)partners; coworkers
Q2) When Henry Ford offered a $5-a-day minimum wage for all his workers,he
A)broke a race barrier of the day.
B)created a virtuous circle.
C)created a larger market for his cars.
D)Henry Ford did all of these things with the $5-a-day minimum wage.
Q3) The underlying principles of strategic CSR suggest that any problem with capitalism,as currently practiced,is the pursuit of profit over nonfinancial considerations.
A)True
B)False
Q4) What does it mean for an organization to be ethical? What is the difference between an unethical and an illegal act?
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17