Multiple Choice

Question 1
Which of the following serves as a support line function to key functional areas in an organization’s value chain?
A. Advertising
B. Manufacturing
C. Human resources management
D. Customer service

Question 2
From an ethical perspective, employees in each functional line area face ethical challenges and dilemmas that:
A. are common to the organization as a whole.
B. are unique to their departmental responsibilities.
C. are common to the industry.
D. can be both unique to their departmental responsibilities and common to the organization as a whole.

Question 3
What is the real ethical dilemma faced by the R&D department?
A. Product costs
B. Product quality
C. Production time
D. Product originality

Question 4
Marketers play the customer service card and therefore argue that since their customers are satisfied, the good outcome justifies the methods used to achieve that outcome no matter how misleading the messages or how unnecessary the product sold. This represents a __________ view of ethics.
A. utilitarian
B. universal ethics
C. descriptive
D. normative

Question 5
The finance function of an organization can be divided into all of the following areas EXCEPT which of the following?
A. Auditing function
B. Financial transactions
C. Accounting function
D. Marketing function

Question 6
The accounting profession is governed by a set of:
A. Generally Accepted Accounting Principles.
B. United States Accounting Principles.
C. International Financial Principles.
D. Corporate Ethical Principles.

Question 7
Illegal accounting practices include all of the following EXCEPT which one?
A. Taking questionable deductions
B. Overvaluing assets
C. Deferring receipts from one quarter to the next to manage tax liabilities
D. Underreporting income for tax purposes

Question 8
The least observed misconduct employees observed according to the NBES was:
A. misreporting of actual time worked.
B. abusive or intimidating behavior toward employees.
C. lying to employees and customers.
D. a situation that placed employee interests over organizational interests.

Question 9
Corporate __________ is/are the actions of an organization that are targeted toward the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all legal obligations.
A. social responsibilities
B. social obligations
C. conscience
D. citizenship

Question 10
Corporate __________ implies that an organization is run with an awareness of its obligation to society.
A. social responsibility
B. social obligation
C. conscience
D. citizenship

Question 11
The definition of corporate social responsibility assumes the corporation:
A. is operating in a competitive environment.
B. is committed to a retrenchment strategy.
C. complies with federal and state legal obligations.
D. is committed to a moderate growth strategy.

Question 12
The __________ approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders.
A. shareholder
B. social contract
C. economic
D. instrumental

Question 13
What approach to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of the corporation?
A. Shareholder approach
B. Social contract approach
C. Economic approach
D. Instrumental approach

Question 14
As early as 1969, it was recognized that corporations:
A. actions do not impact their external environment.
B. do not operate in an isolated environment.
C. can actually increase their profits by being socially responsible.
D. have a responsibility to shareholders before stakeholders.

Question 15
All of the following are major trends behind the CSR phenomenon EXCEPT for which one?
A. Sustainability
B. Globalization
C. The failure of the private sector
D. Knowledge

Question 16
The greatest period of reform in the U.S. produced all of the following EXCEPT for which one?
A. Unemployment laws
B. The minimum wage
C. Child labor laws
D. Sexual harassment laws

Question 17
Many if not most developing countries are governed by __________ regimes.
A. dysfunctional
B. effective
C. efficient
D. controlling

Question 18
Many CSR initiatives:
A. generate immediate financial gains to the organization.
B. do not generate long-term financial gains to the organization.
C. do not generate immediate financial gains to the organization.
D. generate enough financial gains to break even for the organization.

Question 19
Corporations pursue operational efficiency through detailed monitoring of their bottom line in all of the following areas EXCEPT:
A. ethical activities.
B. financial performance.
C. social activities.
D. environmental activities.

Question 20
A(n) __________ CSR encompasses philanthropic activities targeted toward programs that will generate the most positive publicity or goodwill for the organization.
A. Altruistic
B. Ethical
C. Economic
D. Strategic