The iron law of responsibility says that

Question 1

The emergence of a public issue indicates that:

Answer

A gap has developed between what stakeholders expect and what an organization is actually doing.

Technology is forcing ethics and business strategy closer together.

Consumers are unaware of how an organization’s actions affect them.

Communication is not clear.

Question 2

The issue management process has how may stages?

Answer

Three

Four

Five

Six

Question 3

Once an organization has implemented the issue management program, it must:

Answer

Use trade associations or consultants to follow high priority issues.

Study the results and make necessary adjustments.

Not limit the number of public issues the firm can address.

Pick a selected number of issues to address immediately.

Question 4

The “graying” of the population is an example of:

Answer

Customer environment.

Competitor environment.

Economic environment.

Social environment.

Question 5

The role of special interest groups is an important element in acquiring intelligence from the:

Answer

Customer environment.

Competitor environment.

Economic environment.

Social environment.

Question 6

An analysis of the stability or instability of a government is an example of scanning the:

Answer

Social environment.

Legal environment.

Geophysical environment.

Political environment.

Question 7

Legal environmental intelligence includes:

Answer

Patterns of aggressive growth versus static maintenance.

Analysis of local, state, national, and international politics.

Considerations of patents, copyrights, or trademarks.

Information regarding costs, prices, and international trade.

Question 8

A corporation’s issue management activities are usually linked to:

Answer

The board of directors.

Top management.

Both the board of directors and top management levels.

The strategic governance committee.

Question 9

Firms that believe they can make decisions unilaterally, without taking into consideration their impact on others are:

Answer

Interactive companies.

Proactive companies.

Reactive companies.

Inactive companies.

5 points

Question 10

Proactive companies are:

Answer

Much less likely to be blindsided by crises and negative surprises.

Much more likely to be blindsided by crises and negative surprises.

Just as likely to be blindsided by crises and negative surprises.

Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder.

Question 11

Stakeholder engagement is:

Answer

Any issue that is of mutual concern to an organization and one or more of its stakeholders.

Competitive intelligence being collected ethically and systematically.

The process of ongoing relationship building between a business and its stakeholders.

The acquisition of information gained from analyzing the multiple environments.

Question 12

Failure to understand the beliefs and expectations of stakeholders:

Answer

Causes a company’s profits to increase in the short run.

Causes a company’s profits to decrease in the short run.

Causes the performance-expectations gap to grow larger.

Increases the chance of a corporate buy-out.

Question 13

Customer environmental intelligence includes:

Answer

Demographic factors.

An analysis of the firm’s competitors.

New technological applications.

The cost of producing consumer goods.

Question 14

Stakeholder engagement is, at its core, a:

Answer

Program.

Relationship.

Process.

Systems model.

Question 15

Overtime, the nature of business’s relationship with its stakeholders often:

Answer

Remains static.

Evolves through a series of stages.

Becomes more hostile.

None of the above.

Question 16

Executive conscience, acts of charity, and philanthropic funding are examples of:

Answer

Corporate social stewardship.

Corporate social responsiveness.

Corporate/Business Ethics.

Corporate/Global Citizenship.

Question 17

All of the following are examples of the phases of Corporate Social Responsibility except:

Answer

Corporate/Global Citizenship.

Corporate Charity Principle.

Corporate Social Stewardship.

Corporate/Business Ethics.

Question 18

Corporate power refers to:

Answer

The capability of competitors to influence legislation, trade, and the stock market, based on their organizational resources.

The capability of politicians to influence corporations, employees, and unions, based on their organizational resources.

The capability of corporations to influence government, the economy, and society, based on their organizational resources.

The capability of CEOs to influence product development, employee morale, and currency indices, based on their organizational resources.

Question 19

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Answer

Corporate social stewardship

Corporate social responsiveness

Corporate/Business Ethics

Corporate/Global Citizenship

Question 20

Which of the following examples does not show a company guided by enlightened self-interest?

Answer

A company providing the best quality product at a fair price.

A company providing assistance to employees who attend evening college.

A company breaking past records by maximizing quarterly profits.

A company vice-president invited to attend a local community’s town planning meeting.

5 points

Question 21

This occurs when financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers) who traditionally lacked access to banking or related services.

Answer

Commercial banking

Macrofinancing

Microfinancing

Micro-entrepreneurship

Question 22

Scholars have found:

Answer

No relationship between social and financial performance.

A negative relationship between social and financial performance.

An inverse relationship between social and financial performance.

A positive association between social and financial performance.

Question 23

When a person or group of people identify a social need and use their entrepreneurial skills to address this need, this process is called:

Answer

Social stewardship.

Social entrepreneurship.

Social optimism.

Social responsibility.

Question 24

The iron law of responsibility says that:

Answer

In the long run, those who do not use power responsibly will lose it.

In the short run, sacrifice social goals for economic goals.

Law is most important, more than social or economic responsibility.

In the long run, economic responsibility leads to social responsibility.

Question 25

A social enterprise:

Answer

Adopts social benefit as its core mission

Adopts profit maximization as its core mission.

Can only be adopted by small firms

Does not use business strategies to improve environmental well-being

Question 26

When undertaking social initiatives, a company:

Answer

Must take out social responsibility insurance

Will always receive long-term profits

May sacrifice short-term profits.

Risks going bankrupt in nearly all cases

Question 27

A company who complies with the laws and regulations set by the government is:

Answer

Meeting the minimum level of social responsibility expected by the public.

Meeting the maximum level of social responsibility expected by the public.

Not meeting government expectation.

Following a practice of enlightened self-interest.

Question 28

Corporate social responsibility (CSR) means that a corporation should:

Answer

Always forgo profit for the sake of the environment.

Be held accountable for any of its actions that affect people, their communities, and their environment.

Abandon its other missions.

Put social responsibilities ahead of economic or legal responsibilities.

Question 29

The costs of corporate social responsibility may ultimately be passed on to the:

Answer

Employees through fewer health benefits.

Consumer through high prices.

Investor through stock splits.

Taxpayers by the government

Question 30

When businesses bring products and services to the many people in the world who have traditionally been beyond the reach of global commerce, they are said to be:

Answer

Serving the top of the triangle.

Reaching the bottom of the globe.

Serving the bottom of the pyramid.

Focusing on the ends of the supply chain.