MULTIPLE CHOICE ANSWERS

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Question 1
Which of the following best describes the reasons that companies want to conduct social audits?
Companies exceed their legally prescribed duties and conduct social audits for a variety of reasons that lie along a vast spectrum.
A firm may want an official audit so it will be able to project a good image to hide corrupt ways.
A company may want to make its closest competitors look bad in order to attract more customers and increase market share.
Firms are genuinely interested in understanding performance in order to improve and achieve the best social performance possible.
A company may simply feel pressure to conduct an audit on its social responsibilities because many other companies are doing it.

Question 2
Which of the following is not something that can be done with a cookie?
Match Internet addresses with specific geographical locations.
Record the sequence in which a customer views pages of a web site.
Track how often a user visits a particular web site.
Provide customized web site content for a user.
Collect and store personal information about users.

Question 3
Which of the following best defines strategic philanthropy?
Any act of benevolence and goodwill, such as making gifts to charities, volunteering for community projects, and taking action to benefit others
Donating financial resources to help social causes and the community in general
Tying consumer purchases to the specific marketing objectives of a brand or product
The synergistic use of an organization’s core competencies and resources to address key stakeholders’ interests and to achieve both organizational and social benefits
Addressing the needs of various stakeholder groups through cooperative efforts intended to benefit the community and society

Question 4
What growing area of concern occurs when criminals obtain personal information that allows them to impersonate someone else and use their credit to obtain financial accounts and make purchases?
Identity theft
Consumer fraud
Privacy violation
Illegal impersonation
False pretenses

Question 5
How much of pretax profits may businesses in the United States declare as tax-deductible contributions?
2%
5%
10%
20%
None

Question 6
Abstaining from using, purchasing, or dealing with an organization is known as a(n)
boycott.
refusal.
economic demonstration.
pressurization.
avoidance.

Question 7
Which of the following situations may constitute quid pro quo sexual harassment?
A male coworker makes unwelcomed sexual advances toward a female coworker, which causes her to feel that her job is threatened.
A male manager suggests to one of his female employees that she will receive a raise if she wears shorter skirts and works “overtime” once a week.
Many male employees of a company make repeated remarks about how men are more intelligent than women, which makes the environment difficult for female employees.
A female employee asks one of her subordinates out to dinner over and over again even though he always tells her no, and he is beginning to feel uncomfortable around her.
A male employee often disseminates e-mails of a sexual nature to his coworkers that creates an awkward atmosphere for a couple of his female coworkers.

Question 8
Which of the following statements best describes the current view on genetically modified foods?
Many important companies in the United States and abroad are requiring the suppliers of their food to use genetic modification in order to decrease prices.
GM foods have gained wide acceptance throughout the world as people realize the improvements that can be made from genetic modifications.
Although a small group of consumers are boycotting GM foods, most countries have widely adopted and encouraged their development.
Several countries have opposed GM foods, and some large companies have stopped using them in their products.
Nearly all countries are banning the use of GM products.

Question 9
What is the main purpose of the Federal Insecticide, Fungicide, and Rodenticide Act?
Require all pesticides to be registered with the federal government
Ensure that all pesticides are 100 percent safe for the environment
Through federal control, limit who can sell harmful chemicals
Control the use of pesticides through federal regulation
Place the distribution, sale, and use of pesticides under federal control

Question 10
How can a social audit strengthen the link between social responsibility and profitability?
It may lead a company to seek continual improvement in its employment practices, resulting in more satisfied employees.
It can help a company see the impact it is having on its community as a whole.
It can pinpoint areas where improving operating practices can enhance the bottom-line and stakeholder relationships.
It demonstrates how well a company has performed in social matters compared to its core values and ethics policies.
It can strengthen management’s perception of the trade-off between profitability and social performance.

Question 11
How can cause-related marketing on a global basis best be described?
Most countries do not allow cause-related marketing; therefore, its use is not widespread.
This particular marketing tool is used exclusively in the United States.
Companies in Western European developed cause-related marketing, although it is beginning to gain acceptance in other select regions.
Cause-related marketing originated in Japan and has recently found its way to the United States and Europe.
Although cause-related marketing has its roots in the United States, it is gaining usage on a global scale.

Question 12
What is the main legislation to regulate atmospheric emissions?
Pollution Prevention Act
Clean Air Act
NAAQS
Environmental Protection Act
Pure Atmosphere Act

Question 13
Consumers can best be described as
every firm’s most important stakeholder.
customers of any given organization.
those individuals who purchase, use, and dispose of products for personal and household use.
those individuals who purchase many different products throughout their lives.
those groups who purchase products from manufacturers and then improve the products and sell them to others.

Question 14
Which of the following terms is not commonly used to describe the elimination of employment positions?
Layoffs
Rightsizing
Erosion
Downsizing
Workforce reduction

Question 15
Initiatives in workplace diversity focus on
developing a workforce that is 50% men and 50% women.
understanding the ways in which people from different generations communicate and make decisions.
reducing lawsuits related to affirmative action.
recruiting and retaining a diverse workforce as a business imperative.
meeting the legal guidelines of equal opportunity.

Question 16
The Nutrition Labeling and Education Act of 1990 can be most closely attributed to which right of the Consumer Bill of Rights?
Right to fair treatment
Right to safety
Right to be heard
Right to choose
Right to be informed

Question 17
Which of the following is not one of the benefits of conducting a social audit?
The auditing process ensures that a firm will not face challenges related to its social responsibility efforts in the future.
The auditing process provides a mechanism to assess risks and detect problems.
The auditing process helps document a firm’s compliance with legal requirements.
It gives a company a chance to resolve issues before they result in negative publicity or fines and litigation.
This process can strengthen relationships with the company’s stakeholders by satisfying their demands for increased transparency.

Question 18
What is the Kyoto Protocol?
A United States law that regulates the emission of harmful gases into the atmosphere without a permit
An alliance of scientists worldwide working to prove the harmful effects certain gases can have on the environment
Specific international standards that every nation must comply with in regards to emission of gases
Standards that every nation must comply with in regards to the emission of pollutants into streams and drinking water supplies
A controversial treaty proposed among industrialized nations to slow global warming

Question 19
What is the study of ethical issues in the fields of medical treatment and research, including medicine, nursing, law, philosophy, and theology called?
Medical ethics
Genome project
Bioethics
Genetic ethics
Biotechnology

Question 20
Which of the following most closely describes the relationship between consumers and businesses?
All consumers are closely affiliated with the ethical principles the companies they buy from represent.
There really is no relationship between businesses and consumers.
They are fundamentally connected by an economic relationship that often leads to deeper attachment.
The relationships between consumers and businesses are purely economic in nature through the exchange of value.
“Let the buyer beware” describes the power that businesses now have over consumers.

Question 21
What impact has information services and the Internet had on consumers and businesses?
The Internet and other information services have not had a substantial impact on consumers and businesses.
Laws and regulations represent the influence businesses have on consumers and vice versa—whether or not information is more readily available does not impact the laws governing consumers’ rights.
Greater information services and the Internet have shifted power back to businesses since they can now obtain more information about their customers.
The balance of power between consumers and business has remained the same because businesses have obtained greater access to information about their competitors.
They have shifted the balance of power between consumers and businesses because consumers are able to compare prices, read independent rankings, and obtain greater product knowledge.

Question 22
In the ACORN model for handling generational diversity in the workplace, the “N” stands for
not limiting employees’ right to speak out.
never forgetting that all employees are valuable.
notifying people early of workplace reduction plans.
noticing the problems when generations talk to one another.
nourishing retention to keep the best employees.

Question 23
What is another name for a genetically modified crop?
Altered crop
FlavSavr
High-yield crop
Improved crop
Transgenic crop

Question 24
Which of the following was not included in John F. Kennedy’s Consumer Bill of Rights?
Right to be heard
Right to fair treatment
Right to be informed
Right to choose
Right to safety

Question 25
Which of the following types of employees must be paid for overtime work under governmental labor standards and pay provisions?
Professionals
Executives
Outside sales people
Secretaries
Administrators

Question 26
Which of the following statements is true about credit-card fraud?
Credit-card fraud is 100 percent preventable through increased security measures, but companies have not used resources to prevent this type of fraud.
Credit-card fraud is a major issue for businesses and consumers.
Traditional storefront retailers have the worst problems with credit card fraud because most allow you to swipe the credit card yourself.
Credit-card fraud is not a major issue for consumers who shop online.
Because of high-tech security, credit-card fraud online occurs less frequently than through mail-order catalogs.

Question 27
What is a “living wage”?
Level of wages designed to help individuals live comfortably
Ethical obligation to pay employees a reasonable wage
Federal minimum wage that can be paid to employees
Required wage to keep employees above the area’s poverty level
Average wage paid by a particular industry in a specific region

Question 28
What is the main purpose of the Occupational Safety and Health Administration?
To oversee the regulations intended to improve and maintain the health and safety of all employees
To help employees seek restitution if they have suffered as a result of poor working conditions
To threaten all companies with the possibility of fines and other punishment if any employees are injured or killed
To improve the overall quality of the workforce in the United States and to increase global competitiveness
To conduct surprise inspections of businesses to see what laws they are violating

Question 29
What did the Employee Retirement Income Security Act (ERISA) of 1974 do?
It developed standards for the minimum wages a company could pay its employees in order to fulfill Social Security retirement obligations.
It mandated that companies create a financially sound employee pension plan for full and part-time employees.
It set uniform minimum standards to assure that employee benefit plans are established and maintained in a fair and financially sound manner.
It detailed what benefits a company must offer its employees.
It implemented a plan for job-sharing and flextime arrangements with employees who are paid on an hourly basis.

Question 30
What is ISO 14000?
International regulatory body that is responsible for punishing companies who are not in compliance with global environmental standards
National environmental standards that promote a cleaner and safer environment for all Americans
The required standard for reporting information about environmental performance to stakeholders
A comprehensive set of environmental standards that encourage a cleaner, safer, and healthier world
A standardized auditing process that evaluates a company’s environmental performance

Question 31
What type of product is a television?
Durable
Recyclable
Consumable
Unsalable
Disposable

Question 32
According to research, corporate success is slowly evolving to include four equal and complementary goals, which includes becoming all of the following except a(n) __________ of choice.
consumer
employer
neighbor
supplier
investment

Question 33
Which of the following best describes the importance of corporate philanthropy in the 1980s?
Many firms began to establish separate foundations to make donations to charitable causes during the 1980s.
The cost-cutting nature of businesses in this decade left corporate philanthropy as a low priority for most organizations.
Most business leaders understood the benefits of well-managed corporate philanthropy initiatives and implemented formal programs.
Most companies took a haphazard approach to corporate philanthropy causing little good to come as a result.
The public first began to question the role of business in society, and many individuals called for corporations to give back to society.

Question 34
By the 1980s, what type of analogy was being used to describe the workplace?
Master-servant
Prison
Social club
Athletic team
Family

Question 35
What does saying “technology has a self-sustaining nature” mean?
The money received from new technologies will fund additional future advances.
Technology acts as a catalyst to spur even faster development.
Technology helps companies meet stakeholders’ needs more efficiently.
People begin to rely on technology and cannot function without it.
Technology has become an indispensable aspect of life and society.

Question 36
What argument lies at the heart of environmental battles over endangered species habitats throughout the world?
There is a significant burden incurred by complying with endangered species laws, and the laws do little to protect the species anyway.
People argue that there are few benefits received from biodiversity, and no regulation is needed to protect endangered species.
Most people realize that the loss of any one species will not threaten the entire ecosystem or create a decline in biodiversity.
Global research indicates that declining numbers of plant species have little impact on the overall ecosystem.
People argue that human beings are more important than any one species of plant or animal.

Question 37
What is our economy primarily based on today?
Information technology and services
Agriculture
Services
Manufacturing
Hunting-gathering

Question 38
Which of the following is one of the arguments for banning human cloning?
Human cloning does not have the potential to enhance human life in any way and therefore is not worth the money it costs.
When cloning is used to treat a patient, an actual fully developed human must be destroyed.
Cloning has the potential to revolutionize the treatment of diseases and create replacement organs.
Cloning is unethical because it involves humans meddling with nature.
Banning human cloning could threaten important research, especially in the areas of infertility and cancer treatment.

Question 39
Which of the following is not one of the steps in the process for planning and implementing strategic philanthropy?
Engage
Spend
Organize and design
Collect
Research

Question 40
How does the financial auditing concept of materiality relate to the social auditing process?
Users of a social audit could be misled if the audit fails to include material measures of stakeholders’ perspectives.
If the company does not consider customers to be important stakeholders, they should not be included in the social audit.
Tight internal control must be in place to ensure the overall reliability of the contents of the social audit.
It is important that every issue of concern to every stakeholder be included in the audit in order to make it complete.
There must be a way to independently verify the accuracy of the information about a company’s social responsibility efforts.

Question 41
Which of the following is not one of the direct benefits associated with strategic philanthropy?
Strategic philanthropy should ease government regulations on the company.
Companies may find their employee recruitment practices to be more effective and enhanced.
Companies should experience enhanced customer loyalty.
Companies with a strategic approach to philanthropy experience rewards in the workplace.
Companies receive a tax deduction on their charitable contributions.

Question 42
Why is it difficult for the government to hire and retain forensic computer experts to control the activities of cyber criminals?
The highly skilled experts are hired away by firms who pay much higher salaries than the government.
Crimes committed online seem mild and unimportant compared to other types of white-collar crime.
The government does not have the jurisdiction to seek out and punish those who commit online crimes.
The government is not concerned with these issues and leaves the control up to the private sector.
There are less than fifty high-caliber forensic computer experts in the country.

Question 43
Up until the twentieth century, how did people generally think of the environment?
In terms of how natural resources could be harnessed to meet the need for food, shelter, and recreation
As a beautiful natural resource that needed to be protected from actions that harmed its beauty
As resources that should be used in unlimited quantities to satisfy the need for shelter, food, and transportation
As a resource that dictates how people should live their lives
As nature including wildlife, trees, oceans, rivers, and mountains

Question 44
What documents should a firm review as part of its social audit?
Firm’s ethics statement or statement of values
Marketing materials and workplace policies as well as ethical policies related to supplier standards
All formal and informal documents of the firm’s policies concerning areas covered by the audit
All formal documents that make explicit commitments to social responsibility
Company’s current mission statement and strategic objectives only

Question 45
What does the “engage” step of the process for planning and implementing strategic philanthropy consist of?
Creating interest in all the company’s stakeholders in order to increase their support of the strategic philanthropy process
Deciding what resources and dollars should be spent on certain strategic philanthropy efforts
Classifying funding opportunities according to the level of need and alignment with organizational competencies
Collecting information covering the internal organization and programs that might intersect with the competencies of the company
Gaining the interest and support of management early on so as to ease the approval process in the future

Question 46
Which of the following indicators are most useful for assessing employee issues?
Turnover and satisfaction
Ethical climate and promotion policy
Patronage and interview
Salaries and seniority
Job classification and turnover

Question 47
Among the highest-return investments a nation can make are investments in
research and development.
other nations.
nonprofit organizations.
corporations.
foreign stock markets.

Question 48
Which government agency enforces regulations designed to protect the public from unreasonable risk of injury from consumer products?
Privacy Protection Agency
Consumer Information Bureau
Deceptive Trade Practices Commission
Consumer Product Safety Commission
Federal Anti-Injury Institute

Question 49
Which division of the Federal Trade Commission works to protect consumers against unfair, deceptive, and fraudulent practices?
Bureau of Consumer Protection
Deceptive Trade Practices Commission
Privacy Protection Agency
Consumer Information Bureau
Consumer Product Safety Commission

Question 50
What should be the first step in conducting a social audit?
Interview all of the stakeholders and gather their input together
Determine the final report format of the audit
Review current mission statement and strategic objectives of the firm
Secure the commitment of the firm’s top management or board
Get every employee involved in the process