Tuesday, July 17, 2018

Business Facts


A positive reputation allows a firm to attract a loyal customer base.

Members of the Public Relations Society of America are expected to adhere to the core values of advocacy, honesty, and fairness, among others.

Accompanying a firm's economic responsibility to its stockholders are its legal obligations.

Media is defined as a means of communication that widely reaches or influences people.

In the 2000s, ethnic minorities are underrepresented in movies.

The media is both a stakeholder of business and a profit-making enterprise.

The interests of different stakeholders often coincide.

Once a public affairs issue has been identified, its implications must be analyzed according to the issue management process.

The most fundamental media strategy for any organization is to design and manage an effective public relations program.

In 1998, the U.S. government entered into an agreement to regulate tobacco advertisements.

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

Putting all the emphasis on short-run maximum profits for stockholders can lead to policies that overlook the interests and needs of other stakeholders.

Excellent competitive intelligence can be a differentiating factor in the marketplace.

According to the stewardship principle, businesses act as trustees and should consider the interests of all who are affected by business decisions and policies.

Public affairs managers must possess language skills to be effective in an international media environment.

Grass "tops" refers to particularly influential people in the community.

Strong relationships between a corporation and its stakeholders are assets that add value.

Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.

Enlightened self-interest means that companies are socially aware without giving up their own economic self-interest.

The external environment of business is dynamic and ever changing.

The Internet has enabled the growth of stakeholder organizations.

The Federal Trade Commission serves as a public watchdog evaluating honesty in advertising.

A socially responsible company will balance the benefits to be gained against the costs of achieving those benefits.

Interactive stakeholder relationships are a source of competitive advantage for a firm.

Issue management is a structured and systematic process to aid organizations in identifying, monitoring, and selecting public issues that warrant organizational action.

Corporate social responsibility implies that harm to people and society should be acknowledged and corrected if possible.

Emerging public issues are a risk and an opportunity.

An expression of corporate philanthropy is when business firms and their employees unite in their efforts to extend financial aid to the poor and needy.

From business's point of view, freedom in decision making allows business to maintain initiative in meeting market and social forces.

Human rights issues have become more prominent and important for business.

One purpose of the public relations function is to promote a positive image for the firm in the media.

A business is any organization that is engaged in making a product or providing a service for a profit.

Being ethical includes developing a sense of trust, which promotes positive alliances among business partners.

Civic engagement is a major way in which companies carry out their corporate citizenship mission.

If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree.

The United States lags behind Europe in attention to social reporting.

Corporate citizenship partnerships can exist between companies and stakeholders in other countries.

Strategic philanthropy emphasizes the links between corporate contributions and business goals, such as creating demand for a product or service.

The basis for corporate citizenship does not rely on the generosity of a firm's senior management or their awareness of their role as trustees of the public's interests.

Business managers should use all three methods of ethical reasoning - utility, rights and justice - to better understand ethical issues at work.

According to utilitarian reasoning, if the net costs are greater than net benefits, the action is probably unethical because more harm than good would be produced.

Corporate citizenship involves transforming a concern for financial performance into a vision of corporate financial and social performance.

For managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass.

Employees would rather work for companies who share their personal moral values.
In the mid-2000s, corporate citizenship has become complicated and mandatory.

In a benevolence ethical climate, the interests of the company's employees and external stakeholders most likely would be given high priority.

Honesty, integrity and accuracy are absolute requirements of the accounting function.

When senior-level mangers signal employees that they believe ethics should receive high priority in all business decisions, a giant step is taken toward improving ethical performance throughout the company.

Corporate giving is an important way for a business to express its commitment to corporate citizenship.

Businesses are taking a more strategic approach to all kinds of corporate giving.

Managers, as major decision-makers, are one of the keys to whether a company will act ethically or unethically.

Triple bottom line reporting requires that a firm report financial data.

Corporate contributions are one way in which companies link themselves to the broader interests of the community.

Personal values and moral character play key roles in improving a company's ethical performance.

According to the U.S. Foreign Corrupt Practices Act, U.S. based companies are prohibited from paying bribes to foreign government officials, political parties or political candidates.

Companies with a code of ethics tend to have a higher price-earnings ratio.

Germany's public assistance programs for the needy are generous, compared to many other countries.

The term social capital refers to the norms and networks that enable collective action.

8, The Sarbanes-Oxley Act requires that firms maintain high ethical standards in how they conduct and monitor business operations.

Corporate citizenship involves building partnerships with various stakeholders who allow the firm to integrate financial goals and social performance.

Ethical ideas are present in all societies, all organizations, and all individual persons.

Many community problems are people problems, involving hopes, attitudes, sentiments, and expectations for better human conditions.

In the first stage of corporate citizenship, the elementary stage, managers are uninterested and uninvolved with social issues.

Business managers need a set of ethical guidelines to help them:
Identify and analyze the nature of ethical problem.


A company that has just begun reporting to stakeholders is in which stage of the corporate citizenship process?
Innovative stage.


As part of a continuing company commitment to monitor its manufacturing facilities, Mattel formed:
The "Zero Tolerance" program.

Business executives are finding that a trusting, ethical relationship with a business partner is:
Often essential in conducting business.

The Sarbanes-Oxley Act:
Bans an auditing firm from providing the same client with non-auditing services.

People everywhere depend on ethical systems to tell them whether their actions are:
Right or wrong.

Business managers need a set of ethical guidelines to help them:
Identify and analyze the nature of the ethical problem.

Utilitarian reasoning primarily considers:
The end results of an action.

If a manager approaches ethical issues with a self-centered approach, emphasis will be on:
Economic efficiency.

The major focus of ISO 14001 is to:
Support environmental protection in balance with socioeconomic needs.

One of the most widespread and potentially powerful efforts to combat bribery was initiated by:
In 2002, the French Parliament passed the "new economic regulations" law which requires a social performance audit focusing on its impact on:

What percentage of Microsoft's annual contributions is dedicated to minority owned businesses?
5 percent.

The main drawback to utilitarian reasoning is that:
It is difficulty to accurately measure both costs and benefits.

Integrity-based ethics programs:
Combines concern for the law with an emphasis on employee responsibility.

Under the Sarbanes-Oxley Act, corporations are required to:
Have their CEO and CFO sign off on financial statements as accurate and fair.

The Institute for Corporate Ethics was created to:
Develop and conduct training programs for senior managers.

Corporate giving:
Is far below the 10 percent tax deduction permitted.

What company gives all of its earnings to charity?
Newman's Own.

The United Nations Global Compact is funded by:
Voluntary government and foundation contributions.

A member of the Chartered Financial Analyst Institute (CFA) must:
Promote the integrity of and uphold the rules governing global capital markets.

Novo Nordisk's "take action" project was a program designed to:
Promote exercise and healthy eating in schools.

According to the utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical because it produces:
The greatest good for the greatest number of people.

In a Gallup poll of people's confidence in social organizations, ranked last was:
Big business.

The Securities and Exchange Commission may begin an investigation on a company:
Based on the noisy withdrawal of the company's lawyer.

The term corporate citizenship has been used to refer to:
Businesses acting responsibly toward stakeholders.

The critical component in installing an effective ethics program is:
The integration of various ethics safeguards into a comprehensive program.

Companies in which two countries have taken the lead in social reporting?
Japan and United Kingdom.

Corporate citizenship involves:
Proactively addressing business and society issues.

People's ethical beliefs come from:
Their religious background, family, and education.

The recipients of the American Business Ethics Awards show that:
Firms can be financially successful and ethically focused.

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of:
Chaplains.

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the:
Transforming stage.

An ethics officer or ombudsperson is generally entrusted to:
Reduce the risks to the company of employee misconduct.

Corporate citizenship activities can be considered important contributors to a reinforcing cycle through which global companies create all of the following except:
Loyalty.

The first organization to be the recipient of the Living Economy Award was:
White Dog Café.

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:
Reduced.

What is the most critical social issue facing communities, according to community relations managers?
Education.

As business becomes increasingly global:
Cross-cultural contradictions will increase.

In the first stage of corporate citizenship:
Managers are uninterested and uninvolved with social issues.

If a manger approaches ethics with benevolence in mind, he or she would stress what?
Friendly relations with an employee.

The International Accounting Standards are essential for:
Integrating the European Union capital markets.

Once a company enters the innovative stage of corporate citizenship, it will:
Begin reporting its efforts to stakeholders.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:
Operating under the compliance-based approach.

At the core of rights reasoning is the belief that:
Respecting others is the essence of human rights.

Factor conditions are strategic contributions focusing on:
The supply of trained workers, physical infrastructure, and natural resources.

A just or fair ethical decision occurs when:
Benefits and burdens are distributed equally.

Another term for corporate giving is corporate:
Philanthropy.

According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?
Stakeholder management.

When companies like Whole Foods Markets work to address community problems, their actions help build:
Social capital.

The idea of civic engagement involves:
The active involvement of businesses and individuals in improving communities.

Women in Community Service provides:
Job and life skills training to women who are on public assistance.

Cross-cultural contradictions arise due to:
Differences between home and host countries' ethical standards.

According to Clarence Walton, the key to ethical standards in business is:
Personal character.

The Kanebo Limited scandal is an example of a lapse in:
Accounting ethics.

Financial, social and environmental results are reported together in a firm's:
Triple bottom line report.

In a study conducted by the Council on Foundations, companies with high Corporate Philanthropy Index (CPI) scores:
Had better reputations and generated more admiration than others did.

The share of all giving made up by in-kind contributions of products and services has been:
Rising steadily over the past decade.

A form of public assistance to those who are unable to work and live an independent and self-sufficient life is called:
Welfare.

Foreign-owned corporations use foundations:
Less frequently than U.S. firms.

Which financial institution asked Wall Street finance companies to self-regulate?
The New York Stock Exchange.

As business becomes increasingly global:

A )  It must turn to national laws for guidance.
B )  Ethical issues become issues of free trade.
C )  A global code of conduct will emerge for businesses.
D )  Cross-cultural contradictions will increase.

Which of the following non-profit, locally funded and controlled organizations offer housing rehabilitation and financial services to neighborhood residents?

A )  Habitat for Humanity.
B )  Community Reinvestment Services.
C )  Community Business Program.
D )  Neighborhood Housing Services.

Novo Nordisk's "take action" project was a program designed to:

A )  Grant credit to underprivileged people in Mexico.
B )  Spread the benefits of technology.
C )  Promote exercise and healthy eating in schools.
D )  Promote environmental safety.

If a company acknowledges the need to build more coherent initiatives, it is in the innovative stage of becoming a corporate citizen.

A )  True
B )  False

Corporate citizenship is based on the principles of:

A )  Ethical business behavior.
B )  Environment commitment.
C )  Charity.
D )  Both A and B, but not C.

The main drawback to utilitarian reasoning is that:

A )  The majority may override the rights of those in the minority.
B )  Managers using this reasoning process often fail to consider the means taken to reach the end.
C )  It is difficulty to accurately measure both costs and benefits.
D )  Cost-benefit calculations can only be provided by accountants.

Ethical ideas are present in all societies, all organizations, and all individual persons.

A )  True
B )  False

Corporate citizenship has gained importance as a way to:

A )  Create competitive differentiation.
B )  Cement stakeholder loyalty.
C )  Build brand value.
D )  All of the above.

In the first stage of corporate citizenship:

A )  The company must learn how to tackle the problem and make the new policy work.
B )  Managers are uninterested and uninvolved with social issues.
C )  Supervisors and managers become familiar with new routines that are necessary to cope with a social problem.
D )  A company must institutionalize it new social policy and make it a part of standard operating procedures.

Mature adults typically base their ethical reasoning on broad principles and relationships such as:

A )  Human rights and constitutional guarantees of human dignity.
B )  Universal principles of justice.
C )  Customs and traditions show by others.
D )  Both A and B, but not C.

The share of all giving made up by in-kind contributions of products and services has been:

A )  Rising steadily over the past decade.
B )  Declining steadily over the past decade.
C )  Remaining relatively constant over the past decade.
D )  Declining sharply over the past decade.

8, The Sarbanes-Oxley Act requires that firms maintain high ethical standards in how they conduct and monitor business operations.

A )  True
B )  False

A giant step is taken toward improving ethical performance throughout the company when:

A )  The firm hires a university ethics professor to lecture employees on moral philosophy.
B )  The Justice Department launches an investigation of the firm's pricing practices.
C )  Senior-level managers signal to employees that they believe ethics is a high priority.
D )  A consumer hot line is created and staffed 24 hours a day.

A social performance audit involves:

A )  Measuring a firm's corporate activities on an ideal socially responsible scale.
B )  Comparing the resulting rating of a firm's actions against those of other, similar organizations.
C )  A corporate ratings approach.
D )  All of the above.

What company gives all of its earnings to charity?

A )  Seventh Generation.
B )  The Body Shop.
C )  Newman's Own.
D )  Patagonia.

Corporate giving is an important way for a business to express its commitment to corporate citizenship.

A )  True
B )  False

A just or fair ethical decision occurs when:

A )  The rights of all affected are considered.
B )  The greatest good for those with power is achieved.
C )  Benefits and burdens are distributed equally.
D )  All of the above.

Financial, social and environmental results are reported together in a firm's:

A )  Annual report.
B )  Code of business conduct.
C )  Triple bottom line report.
D )  Employee newsletter.

The critical component in installing an effective ethics program is:

A )  To allow all employees the freedom to act as they wish.
B )  In hiring an expensive ethics consultant.
C )  The integration of various ethics safeguards into a comprehensive program.
D )  Maintaining the position as the industry sales leader.

Most philosophers believe that the ancient Romans developed the first ethical theory, which was based on values and personal character.

A )  True
B )  False

Which of the following organization's code of ethics advocates "loyalty to your organization, justice to those whom you deal and faith in your profession?"

A )  Institute for Supply Management.
B )  Institute of Certified Public Accountants.
C )  Financial Accounting Standards Board.
D )  Association for Computing Machinery.

Business executives are finding that a trusting, ethical relationship with a business partner is:

A )  Best left to not-for-profit companies.
B )  Too costly to maintain.
C )  Likely to cause legal problems.
D )  Often essential in conducting business.
Foreign-owned corporations use foundations:

A )  More frequently than U.S. firms.
B )  Less frequently than U.S. firms.
C )  About as often as U.S. firms.
D )  Only for setting up disaster relief.

Which of the following principles of corporate citizenship strive for a competitive return on investment?

A )  Consumer Relations.
B )  Investor Relations.
C )  Employee Relations.
D )  Supplier Relations.

According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?

A )  Context for strategy and rivalry.
B )  Demand conditions.
C )  Stakeholder management.
D )  Factor conditions.

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of:

A )  Philosophers.
B )  Chaplains.
C )  Financial advisors.
D )  Ombudspersons.

Integrity-based ethics programs:

A )  Seeks to avoid legal sanctions.
B )  Combines concern for the law with an emphasis on employee responsibility.
C )  Threatens employees with punishment for non-compliance with the ethics program.
D )  Are predominately implemented within the European Union.

Being ethical includes developing a sense of trust, which promotes positive alliances among business partners.

A )  True
B )  False
Which country(ies) enacted legislation to protect whistle-blowers:

A )  United Kingdom.
B )  Israel.
C )  Ghana.
D )  Both A and B, but not C.

Which ethics policies are most popular amongst European and Canadian companies?

A )  Statements of the company's values and mission.
B )  Policies focusing on legal compliance.
C )  Instrumental policies.
D )  Both A and C, but not B.

Accounting ethics.
The Kanebo Limited scandal is an example of a lapse in:

Bans an auditing firm from providing the same client with non-auditing services.
The Sarbanes-Oxley Act:
Based on the noisy withdrawal of the company's lawyer.
The Securities and Exchange Commission may begin an investigation on a company:
Begin reporting its efforts to stakeholders.
Once a company enters the innovative stage of corporate citizenship, it will:
Benefits and burdens are distributed equally.
A just or fair ethical decision occurs when:
Big business.
In a Gallup poll of people's confidence in social organizations, ranked last was:
Businesses acting responsibly toward stakeholders.
The term corporate citizenship has been used to refer to:

Chaplains.
As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of:
Combines concern for the law with an emphasis on employee responsibility.
Integrity-based ethics programs:
Cross-cultural contradictions will increase.
As business becomes increasingly global:

Develop and conduct training programs for senior managers.
The Institute for Corporate Ethics was created to:
Differences between home and host countries' ethical standards.
Cross-cultural contradictions arise due to:

Economic efficiency.
If a manager approaches ethical issues with a self-centered approach, emphasis will be on:
Education.
What is the most critical social issue facing communities, according to community relations managers?

Firms can be financially successful and ethically focused.
The recipients of the American Business Ethics Awards show that:
Friendly relations with an employee.
If a manger approaches ethics with benevolence in mind, he or she would stress what?

Had better reputations and generated more admiration than others did.
In a study conducted by the Council on Foundations, companies with high Corporate Philanthropy Index (CPI) scores:
Have their CEO and CFO sign off on financial statements as accurate and fair.
Under the Sarbanes-Oxley Act, corporations are required to:

Identify and analyze the nature of ethical problem.
Business managers need a set of ethical guidelines to help them:
Identify and analyze the nature of the ethical problem.
Business managers need a set of ethical guidelines to help them:
Innovative stage.
A company that has just begun reporting to stakeholders is in which stage of the corporate citizenship process?
Integrating the European Union capital markets.
The International Accounting Standards are essential for:
Is far below the 10 percent tax deduction permitted.
Corporate giving:
It is difficulty to accurately measure both costs and benefits.
The main drawback to utilitarian reasoning is that:

Japan and United Kingdom.
Companies in which two countries have taken the lead in social reporting?
Job and life skills training to women who are on public assistance.
Women in Community Service provides:

Less frequently than U.S. firms.
Foreign-owned corporations use foundations:
Loyalty.
Corporate citizenship activities can be considered important contributors to a reinforcing cycle through which global companies create all of the following except:

Managers are uninterested and uninvolved with social issues.
In the first stage of corporate citizenship:

Newman's Own.
What company gives all of its earnings to charity?

Often essential in conducting business.
Business executives are finding that a trusting, ethical relationship with a business partner is:
Operating under the compliance-based approach.
A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

Personal character.
According to Clarence Walton, the key to ethical standards in business is:
Philanthropy.
Another term for corporate giving is corporate:
Proactively addressing business and society issues.
Corporate citizenship involves:
Promote exercise and healthy eating in schools.
Novo Nordisk's "take action" project was a program designed to:
Promote the integrity of and uphold the rules governing global capital markets.
A member of the Chartered Financial Analyst Institute (CFA) must:

Reduce the risks to the company of employee misconduct.
An ethics officer or ombudsperson is generally entrusted to:
Reduced.
Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:
Respecting others is the essence of human rights.
At the core of rights reasoning is the belief that:
Right or wrong.
People everywhere depend on ethical systems to tell them whether their actions are:
Rising steadily over the past decade.
The share of all giving made up by in-kind contributions of products and services has been:

Social capital.
When companies like Whole Foods Markets work to address community problems, their actions help build:
Stakeholder management.
According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?
Support environmental protection in balance with socioeconomic needs.
The major focus of ISO 14001 is to:

The "Zero Tolerance" program.
As part of a continuing company commitment to monitor its manufacturing facilities, Mattel formed:
The New York Stock Exchange.
Which financial institution asked Wall Street finance companies to self-regulate?
The Organization for Economic Cooperation and Development.
One of the most widespread and potentially powerful efforts to combat bribery was initiated by:
The active involvement of businesses and individuals in improving communities.
The idea of civic engagement involves:
The community.
In 2002, the French Parliament passed the "new economic regulations" law which requires a social performance audit focusing on its impact on:
The end results of an action.
Utilitarian reasoning primarily considers:
The greatest good for the greatest number of people.
According to the utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical because it produces:
The integration of various ethics safeguards into a comprehensive program.
The critical component in installing an effective ethics program is:
The supply of trained workers, physical infrastructure, and natural resources.
Factor conditions are strategic contributions focusing on:
Their religious background, family, and education.
People's ethical beliefs come from:
Transforming stage.
Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the:
Triple bottom line report.
Financial, social and environmental results are reported together in a firm's:

Voluntary government and foundation contributions.
The United Nations Global Compact is funded by:

Welfare.
A form of public assistance to those who are unable to work and live an independent and self-sufficient life is called:
White Dog Café.
The first organization to be the recipient of the Living Economy Award was:

5 percent.
What percentage of Microsoft's annual contributions is dedicated to minority owned businesses?


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