5. The degree to which a firm understands and addresses stakeholder demands can be referred to as a. a stakeholder orientation. b. a shareholder orientation. c. the stakeholder interaction model. d. a two-way street. e. a continuum. ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 33 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 6. Which of the following industries tends to generate a high level of trust from consumers and stakeholders? a. Insurance b. Technology c. Banks d. Mortgage lenders e. Financial services ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 32 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge
7. Which of the following is not a benefit that primary stakeholders tend to provide to organizations? a. Supplies of capital and resources. b. Expertise and leadership c. promotion d. Infrastructure e. Pro-bono bookkeeping ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 32 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 8. A stakeholder group that is absolutely necessary for a firm’s survival is defined as a. direct. b. tertiary. c. secondary. d. special-interest. e. primary. ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 32 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge
17. The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with a. Adam Smith. b. Theodore Levitt. c. Norman d. Herman Miller e. Milton Friedman. ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 40 LEARNING OBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility: Delineate a stakeholder orientation in creating corporate social responsibility NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 18. The originator of the idea of the invisible hand, is a fundamental concept in free market capitalism, was a. Adam Smith. b. Theodore Levitt. c. Norman Bowie. d. Herman Miller e. Milton Friedman. ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 40 LEARNING OBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge
19. Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory are they following most closely with this belief? a. Adam b. Theodore Levitt. c. Norman Bowie. d. Herman Miller e. Milton Friedman. ANSWER: e POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 40 LEARNING OBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension 20. In ascending order, Carroll's four levels of social responsibility are a. ethical, legal, economic, philanthropic. b. economic, ethical philanthropic, legal. c. economic, legal, ethical, philanthropic. d. legal, ethical, economic, philanthropic. e. ethical, legal, moral, economic. ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 37, Figure 2-3 LEARNING OBJECTIVES: 2.2: Define social responsibility NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge
27. The specific for implementing the stakeholder perspective do not include which of the following? a. Identifying stakeholder groups b. Identifying stakeholder issues c. Identifying and gaining stakeholder feedback d. Identifying and gaining government feedback e. Assessing organizational commitment to social responsibility groups ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 49 LEARNING OBJECTIVES: 2.6 - List the steps involved in implementing a stakeholder perspective in social responsibility and business ethics. NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 28. What are the four levels of social responsibility? a. Financial, religious, ethical, and philanthropic b. Ethical, philanthropic, selfish, and c. Economic, long-term, ethical, and philanthropic. d. Legal, economic, ethical, and philanthropic e. Economic, compliance, legal, and philanthropic ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 37, Figure 2-3 LEARNING OBJECTIVES: 2.2: Define social responsibility NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge
29. The model is founded in classic economic precepts. a. economic b. shareholder c. stakeholder d. board e. ISO ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 45 LEARNING OBJECTIVES: 2.5 - Explore the role of corporate governance in structuring ethics and social responsibility in business. NATIONAL STANDARDS: United States - BUSPROG: Ethics STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Knowledge 30. Which of the following are not typically secondary stakeholders? a. Television news anchors b. Special-interest groups c. Customers d. Trade associations e. Journalists ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 35, Figure 2-2 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension 31. Which of the following are not typically primary stakeholders? a. Customers b. Trade associations c. Employees d. Shareholders e. Suppliers ANSWER: b POINTS: 1
38. Discuss the difference between primary and secondary stakeholders in the stakeholder interaction model and give examples for each type. ANSWER: The stakeholder interaction acknowledges there are reciprocal relationships between the company and several primary and secondary stakeholders. The model also acknowledges the dialogue between the company's internal and external environments. Primary stockholders are essential to the company's survival and include: employees, shareholders, suppliers, community, government regulatory agencies and customers. Secondary stakeholders are not essential to the company's survival and include: special interest groups, the mass media, competitors and trade associations. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 32, primary and secondary stakeholders p. 33, stakeholder interaction p. 35, figure 2-2 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension 39. Why do some businesspeople and scholars question whether ethics should have a role in business? ANSWER: Many business people and scholars question the role of ethics and social responsibility in business. and economic responsibilities are generally accepted as the most important determinants of performance. "If this is well done," say classic economic theorists, "profits are maximized more or less continuously and firms carry out their major responsibilities to society." POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 39 LEARNING OBJECTIVES: 2.3: Examine the relationship between stakeholder orientation and social responsibility STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension