Q&A Hero

Q: Which of the following statements about outsourcing the performance of value chain activities to outside specialists is FALSE? A. Outsourcing support services often has the disadvantage of raising fixed and variable costs. B. Outsourcing critics contend that shifting responsibility for performing value chain activities to outside specialists can hollow out a company's knowledge base and capabilities, leaving it at the mercy of outsider suppliers, and short of the resource strengths to be a master of its own destiny. C. Outsourcing the performance of certain value chain activities to able supplierscan add to a company's arsenal of capabilities and contribute to better strategy execution. D. The real debate surrounding outsourcing is not about whether too much outsourcing risks loss of control but about how to use outsourcing in a manner that produces greater competitiveness. E. Outsourcing can enable a company to heighten its strategic focus and concentrate its full energies and resources on even more competently performing those value chain activities that are at the core of its strategy and for which it can create unique value.

Q: Outsourcing critics contend that shifting responsibility for performing value chain activities to outside specialists: A. has the disadvantage of raising fixed costs and reducing variable costs and makes it harder to develop distinctive competencies. B. can hollow out a company's knowledge base and capabilities, leaving it at the mercy of outsider suppliers, and short of the resource strengths to be a master of its own destiny. C. results in less organizational flexibility and leads to sometimes exorbitant costs in collaborating with outside suppliers and strategic partners. D. slows down decision making on key strategic issues because outside suppliers have to be consulted first. E. lowers the morale of company employees, dampens a company's ability to implement best practices, and results in greater bureaucracy and slower decision making.

Q: Which of the following is NOT a reason why companies might use outsourcing to improve performance of strategy-critical activities? A. Improving a company's chances for outclassing rivals in the performance of strategy-critical activities and turning a core competence into a distinctive competence B. Promoting quick establishment of a total quality culture C. Speeding internal decision making and shortening the time it takes to respond to changing market conditions D. Capitalizing on the partnerships with outsiders to enhance its arsenal of capabilities and thus contribute to better strategy execution E. Helping decrease internal bureaucracies and flatten the organizational structure

Q: When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed, then it may also be able to: A. create a values-based corporate culture that excels in product innovation. B. decrease internal bureaucracies, flatten its organizational structure, and shorten the time it takes to respond to changing market conditions. C. devote more resources to its social responsibility strategy, better empower employees, and reduce employee turnover. D. better police compliance with ethical standards, lower overall operating costs, and create two or more distinctive competencies. E. reduce the potential for information overload and improve the quality of decision making in each domain.

Q: Outsourcing value chain activities has such strategy executing advantages as:A. less internal bureaucracy, speedier decision making, and quicker responses to changing market conditions.B. facilitating the empowerment of employees (because there are fewer things to do internally).C. promoting a total quality management culture.D. reducing the need to establish a strongly implanted corporate culture.E. reducing the strategic importance of building valuable core competencies.

Q: Which of the following is NOT part of organizing the work effort in ways that promote successful strategy execution? A. Facilitating collaboration with external partners and strategic allies B. Providing for cross-unit coordination and deciding which value chain activities to perform in-house and which ones to outsource C. Determining how much authority to centralize at the top and how much to delegate to down-the-line managers and employees D. Determining which functions and organizational units require superior intellectual capital E. Maintaining expertise and resource depth in performing those internally strategy-critical value chain activities that underpin its long-term competitive success and provide for the main building blocks in the organization structure

Q: Organizing a company's work effort to promote successful strategy execution involves: A. deciding how much to spend on training managers and employees. B. deciding which value chain activities to perform in-house and which to outsource, and making internally performed strategy-critical value chain activities the main building blocks in the organization structure. C. choosing an organization structure that is a tight fit with the corporate culture. D. hiring an inexpensive yet capable management team. E. instituting a compensation structure that reduces employee turnover and thus stabilizes the makeup of work teams.

Q: What is the rule for organizing the work effort to support good strategy execution? A. Match the firm's organizational structure to its unique strategy. B. Decide on how much to spend on training managers and employees. C. Choose an organization structure that is a tight fit with the corporate culture. D. Ensure the firm hires a capable management team. E. Learn how the collaborative partner does things.

Q: Superior strategy execution capabilities are:A. easy for rivals to copy.B. socially simple..C. develop quickly.D. easy to achieve.E. hard to imitate.

Q: When it is difficult or impossible to out-strategize rivals (beat them with a superior strategy), the other main avenue to competitive advantage is to: A. do a better job of empowering employees and flattening the organization structure. B. outcompete rivals with a stronger corporate culture. C. out execute them (beat them by performing certain value chain activities in superior fashion). D. beat them with a healthy corporate culture based on such core values as high ethical standards, a strong sense of corporate social responsibility, and genuine concern for customer well-being. E. institute a more motivating and cost-efficient compensation and reward system.

Q: Accessing capabilities through an external source can be accomplished through all of these EXCEPT: A. outsourcing, but depends on what can safely be delegated to outside suppliers. B. joint ventures, which depend on how well the partners will work together. C. strategic alliances, which should be selected as much for management style, culture, and goals as for their resources and capabilities. D. learning-based collaborative partnerships for the purpose of learning how the partner does things, internalizing its methods, and thereby acquiring its capabilities. E. promoting qualified people with the right know-how in a timely and cost-effective manner.

Q: The strategic importance of deliberately trying to develop organizational competencies and capabilities is: A. lower costs for employee training. B. improved strategy execution and a potential for competitive advantage. C. an increased ability to reduce total operating costs. D. the added ease with which strategic fit and resource fit benefits can be captured. E. the enhanced ability to avoid the perils of outsourcing.

Q: In which one of the following instances is the training and retraining of employees likely to make the LEAST important contribution to good strategy execution? A. When a company shifts to a strategy requiring different skills, competitive capabilities, managerial approaches, and operating methods B. When an organization is striving to build skills-based competencies C. When technical know-how is changing so rapidly that a company loses its ability to compete unless its skilled people have cutting-edge knowledge and expertise D. When the chosen strategy calls for a deeper technological capability or building and using new capabilities E. When the strategy execution effort is based on tried-and-true operating practices that vary little from year to year

Q: When are capabilities-motivated acquisitions essential? A. When industry conditions, like technology advances are central to growth and rivalry is intense B. When first-mover advantages for products or services can be added to the portfolio lineup C. When the acquired firm can be purchased at a discount due to underperformance D. When a market opportunity can slip by faster than a needed capability can be created internally E. When the capabilities involve tacit knowledge and complex routines

Q: What is the advantage of acquiring capabilities through merger and acquisition? A. Speed, since developing new capabilities internally can take many years of effort B. Empowerment, since you can capture the essence of the capability and refocus the firm C. Price, as it is always cheaper to buy a whole company and pull out the capabilities individually D. Assets, as it the basis of the sale E. Investment, since resources and capabilities are considerable stronger

Q: Sometimes a company can short-circuit the task of building an organizational capability in-house by: A. putting in high-incentive bonuses to reward individual employees who train hard to develop the desired capability. B. launching an extensive training effort to develop the capability quickly with newly hired employees. C. either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise. D. using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed. E. empowering a team of employees to develop the capability however they best see fit.

Q: Which of the following is NOT accurate as concerns a company's competencies and capabilities? A. Competencies and capabilities that grow stale can impair competitiveness unless they are refreshed, modified, or even phased out and replaced in response to ongoing market changes and shifts in company strategy. B. Core competencies have to be tweaked and adjusted to keep them fresh and responsive to changing customer needs and market conditions. C. The imperatives of keeping capabilities in step with ongoing strategy and market changes make it appropriate to view a company as a bundle of evolving competencies and capabilities. D. Even after core competencies and competitive capabilities are in place and functioning, company managers can't relax. They still have to wrestle with when and how to recalibrate existing competencies and capabilities and when and how to develop new ones. E. When a company succeeds in hiring talented employees and training them properly, competencies and capabilities tend to develop quickly and, once put in place, can last for a decade or more.

Q: Managerial actions to develop core competencies and competitive capabilities internally generally take one of two forms. What are they? A. Either strengthening the company's base of skills, knowledge, and experience or coordinating and integrating the efforts of various work groups and departments B. Either putting in high incentive bonuses to reward individual employees who train hard to develop the desired capability or launching an extensive training effort to develop the capability quickly with newly hired employees C. Either using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed or empowering a team of employees to develop the capability however they best see fit D. Either using developed dynamic capabilities or acquiring the capability from outside sources E. Either by enforcing close cross-business collaboration or by centralizing the performance of functions requiring close coordination at the corporate level

Q: Firms generally leverage the expertise of their talent pool in building capabilities by: A. updating existing capabilities. B. establishing a new arsenal of resource capabilities by phasing out existing capabilities. C. refreshing existing capabilities. D. augmenting or recombining well-established capabilities with existing resources. E. building resource capabilities from scratch so it is easy and less time-consuming.

Q: Which of the following is NOT one of the traits of core competencies and/or competitive capabilities? A. The key to leveraging core competencies into competitive advantage is concentrating sufficient effort and talent on deepening and strengthening them so the firm achieves dominating depth and gains the capability to outperform rivals by a meaningful margin. B. Core competencies have to be tweaked and adjusted to keep them fresh and responsive to changing customer needs and market conditions. C. Core competencies typically are lodged in the combined efforts of different work groups and departments. D. Core competencies generally grow out of company efforts to master a strategy-critical technology or to invent and patent a valuable technology. E. Core competencies tend to emerge gradually rather than blossom quickly.

Q: Why are well-conceived CSR strategies and sustainable business practices considered in the best long-term interest of shareholders?

Q: How do socially responsible actions and sustainable business practices lower costs related to human resources in a company?

Q: What is the essence of the business case for why a company should engage in socially responsible actions and environmentally sustainable business practices?

Q: What is the essence of the moral case for why a company should engage in socially responsible actions and environmentally sustainable business practices?

Q: Explain how environmental sustainability strategies go about improving a company's "Triple-P" performancepeople, planet, and profit. Why is it important for strategy-makers to find points of intersection between society and the company's ability to execute value chain activities or better serve customer needs?

Q: Define and discuss the programs commonly included under a company's corporate social responsibility strategy.

Q: Identify the five good reasons (actions) companies can choose in crafting social responsibility initiatives, environmental sustainability, and a good corporate citizenship strategy.

Q: Sustainability is a term used in various ways, but most often it concerns a firm's relationship to the environment and its use of natural resources. Define the term from a company's business practices and strategy perspective.

Q: Identify the three types of business costs of ethical failures. Provide examples for each type of cost.

Q: Apart from "the business of business is business, not ethics" kind of thinking, there are three other primary factors that contribute to a drive toward unethical business behavior. Identify and explain the three factors.

Q: What is the case for why business strategies should be ethical?

Q: Does a company have a duty to go beyond legal requirements and conform to the ethical norms of the societies in which it operates?

Q: Discuss briefly what is meant by the terms ethical universalism and ethical relativism. Where does integrated social contracts theory fit into the debate about ethical standards? Which of the three schools of thought stands on the strongest ground?

Q: Explain the difference between ethical universalism and integrated social contracts theory. Which school of thought is most inclusive? Explain the reasons for your answer.

Q: What is meant by integrated social contracts theory? What is its contribution to the debate about ethical standards?

Q: Ethical relativism equates to multiple sets of ethical standards. True or false? Explain your answer.

Q: What are the strengths and weaknesses of the beliefs and tenets underlying the school of ethical relativism?

Q: What are the differences between the school of ethical universalism and the school of ethical relativism?

Q: What are the strengths and weaknesses of the thesis that ethical standards are (or should be) universal?

Q: Identify and explain the three schools of thought about ethical standards for companies with international operations.

Q: What is the difference between ethics and business ethics?

Q: Which of the following builds a moral case for corporate social responsibility and environmentally sustainable business practices? A. Socially responsible actions and sustainable business practices can lower costs and enhance employee recruiting and workforce retention. B. Opportunities for revenue enhancement may also come from CSR and environmental sustainability strategies. C. C.Well-conceived CSR strategies and sustainable business practices are in the best long-term interest of shareholders. D. A business engages in ordinary decency and civic-mindedness, and contributes to society's wellbeing. E. A strong commitment to socially responsible behavior reduces the risk of reputation-damaging incidents.

Q: Which of the following is most likely to be morally valid from the perspective of ethical relativism? A. Bribing a government official to allow you to transfer gambling winnings to a tax haven B. Performing genital mutilations on nonconsenting female teens C. Employing as laborers children under the age of nine D. Agreeing to a country's policy of prohibiting the education of females E. Bribing a government official in an underdeveloped country to obtain a permit to build a hospital

Q: Which of the following is an activity a company engages in to enhance the quality of life for its employees in an attempt to fulfill its corporate social responsibility? A. It fires suppliers that use child labor. B. It provides work-at-home opportunities. C. It donates a percentage of its profits to a national charity. D. It pays to have litter removed from a state highway. E. It sells its products at a discounted price in underdeveloped countries.

Q: A company that promotes carpooling among its employees, has cut its printer-paper usage in half, and has installed solar panels on its roof is an example of a corporate social responsibility action to: A. promote workforce diversity. B. ensure the company operates honorably and ethically. C. support philanthropy and participate in community service. D. protect and sustain the environment. E. enhance workplace amenities and employee well-being.

Q: 64. A company that sets aside 2 percent of its pre-tax profits to build and then fund a cancer-recovery facility for teens is an example of a corporate social responsibility action to: A. enhance employee well-being. B. support philanthropy. C. protect and sustain the environment. D. ensure honorable and ethical action. E. promote workforce diversity.

Q: Which of the following companies incurs mainly internal administrative costs due to unethical practices? A. Company A loses its customer loyalty by selling low-quality products for a high cost. B. Company B's tax evasion practices are revealed, leading to a drastic fall in stock prices. C. Company C incurs penalties of $1.5 billion for discharging toxic wastes into a river. D. Company D must retrain its employees who are using their Twitter accounts to post workplace frustrations. E. Company E pays men higher wages than women while at the same time propagating messages of equality and fair play.

Q: An information technology multinational issues a public statement that the company's accounts had been falsified by billions of dollars over recent years to keep new investments flowing in. Following the news, the CEO is arrested and the company's stock price sharply declines. Which of the following has the company incurred? A. Only visible and internal administrative costs B. Visible but not intangible costs C. Visible and intangible costs D. Internal administrative costs but not visible costs E. Internal administrative costs but not intangible costs

Q: Studies done on the correlation of between good corporate behavior and good financial performance have generally found: A. no correlation B. a small positive correlation C. a small negative correlation D. a large positive correlation E. a large negative correlation

Q: Which of the following is FALSE as it concerns the merits of why acting in a socially responsible manner is good business? A. The higher the public profile of a company or brand, the greater the scrutiny of its activities and the higher the potential for it to become a target for pressure group action. B. Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders. C. To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage. D. Some employees feel better about working for a company committed to improving societya condition that can contribute to lower turnover and better worker productivity. E. Companies with deservedly good reputations for contributing time and money to the betterment of society are better able to attract and retain employees compared to companies with tarnished reputations.

Q: Which of the following is NOT a part of the business case for why companies should act in a socially responsible manner?A. Every business has a moral duty to be a good corporate citizen.B. Acting in a socially responsible manner reduces the risk of reputation-damaging incidents.C. Acting in a socially responsible manner is in the overall best interest of shareholders.D. To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage.E. Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).

Q: The business case for CSR and environmentally sustainable business practices suggests such actions could lead to all of the following EXCEPT: A. increased buyer patronage. B. shorter supply chain. C. lower costs and enhanced employee recruiting and workforce retention. D. opportunities for revenue enhancement and best long-term profits for shareholders. E. reduced risk of reputation-damaging incidents.

Q: The business case for why companies should act in a socially responsible manner includes such reasons as:A. it generates internal operating benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).B. it increases the risk of reputation-damaging incidents.C. it is not in the best interest of shareholders.D. it can lead to decreased buyer patronage.E. it can increase costs and reduce employee retention.

Q: Which of the following is NOT part of the moral case for why a company should actively promote the betterment of society? A. Every action a company takes can be interpreted as a statement of what it stands for. B. Most business leaders can be expected to acknowledge that socially responsible actions and environmental sustainability are important and that businesses have a duty to be good corporate citizens. C. In return for society granting a business a "license to operate" and not be unreasonably restrained in its pursuit of a fair profit, a business is obligated to act as a responsible citizen and do its fair share to promote the general welfare. D. Acting in a socially responsible manner is in the best financial interest of shareholders. E. Every business has a duty to do what's best for shareholders while operating honorably, provide good working conditions to employees, and be a good environmental steward.

Q: The moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stakeholders:A. is based on the principle of treating people fairly and with respect.B. is based on the conviction that improving the well-being of society ranks higher in priority and is certainly nobler than making a profit and serving the interests of shareholders.C. boils down to "it's the right thing to do."D. rests on the principle that a business is duty bound to fulfill its social contract to serve the interests of all stakeholders in a business enterprise.E. is based on the principle that business activities lack real legitimacy and have few socially redeeming qualities unless and until a company exerts a significant and sincere effort to give something back to the community.

Q: When a company's social responsibility initiatives become part of the way it operates its business every day, these initiatives are: A. likely to be fully effective in creating a competitive advantage. B. normally based on a corporate social agenda. C. ambiguous and rarely make a difference in the way the company does business. D. implausible to advance a positive, high-energy workplace environment. E. heavily dependent on encouraging employee morality.

Q: Sourcing a supply from a small, women-owned business is an example of a corporate social responsibility action to: A. enhance employee well-being. B. support philanthropy. C. protect and sustain the environment. D. ensure honorable and ethical action. E. promote workforce diversity.

Q: Which of the following statements regarding a company's social responsibility and sustainability strategy is FALSE?A. A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5 percent (or more) of pretax profits on social responsibility initiatives.B. Social responsibility strategies that have the effect of both providing valuable social benefits and fulfilling customer needs in a superior fashion can lead to competitive advantage.C. A few companies have integrated social responsibility and/or environmental sustainability objectives into their missions and overall performance targets. They view social performance and environmental metrics as an essential component of judging the company's overall future performance.D. Unless a company's social responsibility initiatives become part of the way it operates its business every day, the initiatives are unlikely to be fully effective.E. While the strategies and actions of all socially responsible companies have sameness in the sense of drawing on the same categories of socially responsible behavior, each company's version of being socially responsible is unique.

Q: What is the function of the Global Reporting Initiative? A. It promotes greater transparency and facilitates benchmarking CSR efforts across firms and industries. B. It promotes and establishes mutual funds investment opportunities comprised of companies that excel on the basis of the triple bottom line. C. It promotes greater awareness of the Dow Jones World Index, which comprises companies that are engaged in environment sustainability. D. It promotes corporate governance, climate change, and labor practices. E. It is a nonprofit reporting organization that ranks companies on habitat protection.

Q: Which of the following is NOT something a company should consider in crafting an environmental sustainability strategy? A. Actions to protect the environment that will guard against the ultimate endangerment of the planet B. Actions to maintain ecological support systems for future generations C. Actions to provide for the longevity of natural resources D. Actions to couple environmental degradation and economic growth E. Actions to contain the adverse effects of greenhouse gases

Q: An environmental sustainability strategy consists of a company's deliberate actions to: A. operate in an honorable manner, provide good working conditions for employees, and to actively work to enhance the quality of life in the local communities where it operates and in society at large. B. meet the current needs of customers, suppliers, shareholders, employees, and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet. C. protect and enhance natural resources and ecological support systems, taking into account the current consumption for the current generation. D. apply universal norms regarding the protection of the environment to its everyday operations and to function below the levels required by prevailing environmental regulations. E. balance commonly held views about what constitutes environmentally appropriate actions against its ability to make a profit.

Q: A company's environmental sustainability strategy consists of its deliberate actions to: A. shelter the environmental impacts from the company's resources and competitive capabilities. B. provide for the defense of natural resources usage within cross-border commitments. C. moderate assurance for ecological support systems for future generations. D. guard against ultimate endangerment of the business. E. operate the business in a manner that promotes the longevity of sustainability effects.

Q: Triple-bottom-line (TBL) reporting is emerging as an important way for companies to: A. conceal their initiatives and accomplishments in the areas of diversity, environment, community, and ethics to increase profitability. B. make the results of their CSR strategies apparent to stakeholders and for stakeholders to hold companies accountable for their impact on society. C. minimize transparency and facilitate benchmarking CSR efforts across firms and industries. D. minimize the use of standard reporting frameworks and metrics. E. attract profit-oriented investors.

Q: The three dimensions of performance are often referred to in terms of the "three pillars" and include all of the following EXCEPT: A. a company's efforts to improve the lives of its internal and external stakeholders. B. the various social initiatives that make up the CSR strategies. C. a firm's ecological impact and environmental practices. D. the economic impact (value and costs) that the company has on society. E. a company's efforts to reduce research and development funding to boost profits.

Q: The "triple bottom line" refers to what three performance metrics a company should simultaneously succeed in? A. Economic, social, and environmental B. Pay, power, and performance C. Planning, execution, and results D. Legal, social, and economical E. Legal, social, and environmental

Q: How do good corporate citizens function? A. They pursue discretionary activities that contribute to the betterment of society, especially in areas where government has chosen not to focus its efforts or has fallen short. B. They are active participants in the political processes. C. They identify up-and-coming managers who have a future in local- or state-level politics. D. They create a democratic workplace where the voices of lower-level employees are heard through representation on the board of directors. E. They seek to replace government functions with more efficient, market-driven solutions.

Q: Striving to be socially responsible entails touching such bases as: A. what actions to take to moderate workforce diversity and make the company a great place to work. B. whether to shrink charitable contributions and trim down the time commitment of company personnel to community service endeavors to increase earnings. C. what, if any, actions to take to protect or enhance the environment (beyond what is legally required). D. exerting conscious efforts to ensure that all elements of the company's strategy are executed diligently. E. prioritizing stock repurchases over dividends.

Q: A company's social responsibility strategy typically comprises all of the following EXCEPT: A. actions to enhance workforce diversity and make the company a great place to work. B. making charitable contributions and donating money and the time of company personnel to community service endeavors. C. actions to protect or enhance the environment. D. conscious efforts to ensure that all elements of the company's strategy are ethical and that its actions protect or enhance the environment (beyond what is legally required). E. actions to keep the company's profits at a reasonable and acceptable level to ensure the company's products/pricing will not be viewed by the general public as obscenely high or exorbitant.

Q: Which of the following activities by a company does NOT conform to the norms of corporate social responsibility? A. Conducting vocational programs inside the company's premises for the underprivileged B. Encouraging employees to use all means possible to exceed targets and providing heavy compensation to employees who generate profits C. Providing work-from-home options to working mothers residing in distant locations D. Involving company personnel in cleaning and restoring state parks E. Manufacturing energy-saving bulbs

Q: Which of the following is NOT something a company should usually consider in crafting a strategy of social responsibility? A. Actions to benefit shareholders such as raising the dividend or boosting the stock price B. Making charitable contributions and supporting community service endeavors and reaching out to make a difference in the lives of the disadvantaged C. Actions to ensure the company has an ethical strategy and operates honorably and ethically D. Actions that promote good stewardardship (by protecting and enhancing) the environment E. Actions to enhance workforce diversity

Q: Which of the following is NOT generally on a company's menu of actions to consider in crafting a strategy of social responsibility? A. Actions to ensure that the company's strategy is ethical and that ethical principles will be observed in operating the business B. Making charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes C. Actions to look out exclusively for the best interests of its owners, the shareholders D. Actions to protect or enhance the environment (apart from what is required by governmental authorities) E. Actions to create a work environment that enhances employee well-being and makes the company a great place to work

Q: The notion of social responsibility as it applies to businesses is concerned with:A. a company's duty to put the public interest ahead of shareholder interests.B. societal expectations that all company stakeholders will be treated equally and fairly.C. a company's duty to establish a loyal workforce.D. the responsibility that top management has for ensuring that the company's actions and decisions are in the best interest of stakeholders at large.E. a company's duty to operate in an honorable manner and provide good working conditions for employees.

Q: The essence of socially responsible business behavior is that a company: A. should balance strategic actions to benefit shareholders against the duty to be a good corporate citizen. B. undertake actions that add value to shareholders. C. respect societal expectations that shareholders should be rewarded for providing risk capital. D. should work toward shareholders' expectations of maximum return. E. should provide jobs to the local community rather than outsourcing them.

Q: How does a company's unethical behavior risk doing direct damage to a company's creditors? A. It could result in diminished business reputation. B. It could lead to default on loans due to potential business fallout. C. It could result in lower stock prices and lower returns. D. It could lead to shunning by customers E. It could make recruiting and retaining talented employees difficult.

Q: Internal administrative costs which are incurred by companies for ethical wrongdoing include all of the following EXCEPT:A. costs attached to adverse effects on employee productivity.B. costs of remedial education and ethics training to company personnel.C. costs incurred in taking corrective actions.D. administrative costs associated with future compliance.E. legal and investigative costs.

Q: Visible costs that are incurred by companies and imposed for ethical wrongdoing include all of the following EXCEPT: A. government fines and penalties. B. civil penalties arising from class-action lawsuits or other litigation. C. lower dividends for shareholders. D. lower stock prices. E. legal and investigative costs.

Q: The business case for an ethical strategy: A. focuses primarily on costs that are difficult to quantify (for example, customer defections and adverse effects on employee productivity) but can often be the most devastating. B. emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide-ranging. C. starts with numerous ethical rules and guidelines and an environment where employees rely on these rules for moral guidance. D. starts with managers who understand there is a big difference between adopting values statements and codes of ethics that serve merely as window dressing and those that truly paint the white lines for a company's actual strategy and business conduct. E. begins with ethical guidelines that help send the message that management takes the observance of ethical norms seriously and that behavior falling outside ethical boundaries will have negative consequences.

Q: The strength of the beliefs underlying the moral case for an ethical strategy relates to all EXCEPT which of the following? A. It begins with managers who themselves have strong character (for example, who are honest, have integrity, and truly care about how they conduct a company's business). B. It starts with managers who walk the talk in displaying the company's stated values. C. It involves managers with high ethical principles and standards who are advocates of a corporate code of ethics and strong ethics compliance and are genuinely committed. D. It starts with managers who understand there is a big difference between adopting values statements superficially and truly accepting a company's actual strategy and business conduct. E. It starts with mangers that involve themselves in creating strategies based on risks and loss of reputation that implementing an unethical strategy can cost.

Q: Which of the following is NOT a particularly sound or valid reason why a company's strategy should be ethical? A. An unethical strategy reflects badly on the character of the company personnel involved. B. Senior executives fear public embarrassment if caught doing something perceived as unethical. C. An ethical strategy is in the self-interest of shareholders, partly because an unethical strategy can damage a company's reputation and partly because unethical behavior can be very costly in terms of fines and penalties. D. Customers shun companies known for their shady behavior and ethically upstanding company personnel are repulsed by a work environment where unethical behavior is condoned. E. A strategy that is unethical in whole or in part is morally wrong.

Q: Which of the following is NOT true regarding the effect of ethical standards on a company's strategy? A. An unethical strategy reflects badly on the character of the company personnel involved. B. A strategy that is unethical in whole or in part is morally wrong. C. Pursuing an unethical strategy damages a company's reputation and can have costly consequences. D. An ethical strategy is good business and is in the best interest of shareholders. E. An ethical strategy results in higher employee turnover.