Full file at
1.Thosewhohaveaclaimin someaspectofafirm'sproducts,operations,markets,industry,andoutcomesareknown as
a. shareholders. b. stockholders. c. stakeholders. d.claimholders.
e.special-interestgroups.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p.31
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
2.Stakeholders'poweroverbusinessesstemsfromtheir a.abilitytowithdraworwithholdresources.
b.abilitytogenerateprofits. c.mediaimpact.
d.politicalinfluence. e.stockownership.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p.32
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics:
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
Full file at
3.Whichofthefollowingdonottypicallyengageintransactionswithacompanyandthusarenotessentialforits survival?
a.Employees
b.Secondarystakeholdersc.Primarystakeholders
d.Investors
e.Customers
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.32
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
4.Afirmthatmakesuseofa
recognizesotherstakeholdersbeyondinvestors,employees,andsuppliers,and
Full file at
explicitlyacknowledgesthetwo-waydialogthatexistsbetweenafirm'sinternalandexternalenvironments. a.stakeholdermodelofcorporategovernance
b.stakeholderbias c.codeofethics
d.stakeholderinteractionmodel e.corporateinterfacemodel
ANSWER:d
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.33
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
Full file at
5.Thedegreetowhichafirmunderstandsandaddressesstakeholderdemandscanbereferredtoas a.a stakeholderorientation.
b.a shareholderorientation.
c.the stakeholderinteractionmodel. d.atwo-waystreet.
e.acontinuum.
ANSWER:a
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.33
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
6.Whichof thefollowingindustriestendstogeneratea highleveloftrustfromconsumersandstakeholders?
a.Insurance
b.Technology c.Banks
d.Mortgagelenders e.Financialservices
ANSWER:b
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.32
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
7.Whichofthefollowingis nota benefitthatprimarystakeholderstendtoprovidetoorganizations?
a.Suppliesofcapitalandresources. b.Expertiseandleadership
c.Word-of-mouthpromotion d.Infrastructure
e.Pro-bonobookkeeping
ANSWER:e
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.32
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
8.A stakeholdergroupthatis absolutelynecessaryforafirm’ssurvivalis definedas
a.direct.
b.tertiary.
c.secondary.
d.special-interest. e.primary.
ANSWER:e
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.32
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
9.Whenunethicalactsarediscoveredin afirm,in mostinstances a.theyare causedbyunwillingparticipants.
b.thecauseisduetoexternalstakeholders.
c.theperpetratorsarecaughtandprosecuted.
d.therewasknowingcooperationorcomplicityfromwithinthecompany. e.thecauseisacorruptBoardofDirectors.
ANSWER:d
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.30
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
10.Whichofthefollowingis nota methodtypicallyemployedbyfirmswhenresearchingrelevantstakeholdergroups?
a.Surveys
b.Focusgroups
c.Internetsearches d.Pressreviews
e.Guessing
ANSWER:e
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.35
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
11.Astakeholderorientationcanbeviewedasa(n)
a.necessityforbusinesssuccess. b.continuum.
c.polarizingconcept.
d.good marketingploy. e.expensiveproposition.
ANSWER:b
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.36
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
12.Shareholdersprovideresourcestoan organizationthatarecriticaltolongtermsuccess.Whichof thefollowingdoes thebooksuggestthatsuppliersoffer?
a.Thepromiseofcustomerloyalty
b.Materialresourcesand/orintangibleknowledge c.Infrastructure
d.Revenue
e.Leadershipskills
ANSWER:b
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.32
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
13.Whichofthefollowingis notassociatedwiththestakeholderinteractionmodel?
a.Involvesatwo-wayrelationshipbetweenfirmandstakeholders b.Recognizestheinputofinvestors,employees,and suppliers
c.Explicitlyacknowledgesdialoguewith afirm'sinternalenvironment d.Explicitlyacknowledgesdialoguewithafirm'sexternalenvironment
e.Identifiesthemassmedia,specialinterestgroups,competitors,andtradeassociationsas primarystakeholders
ANSWER:e
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.36
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
14.Thefirstofthethreeactivitiesthatareassociatedwiththestakeholderorientationis the a.organization-widegenerationofdata.
b.organization'sresponsivenesstointelligence. c.setof consumerattributesidentified.
d.organizationalstrategyoftargetmarkets.
e.humanrelationsdepartment'ssetof priorities.
ANSWER:a
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.33
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
15.Publichealthandsafetyandsupportof localorganizationsareissuesmostrelevanttowhichstakeholdergroup?
a.Investors
b.Community c.Suppliers
d.Customers e.Employees
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:p. 34, Table2-1
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
16.Minimizingtheuseof energyandreducingemissionsandwasteareissuesof importancetowhichstakeholder?
a.Environmentalgroupsb.Suppliers
c.Employees
d.Industryleaderse.Investors
ANSWER:a
POINTS:1
DIFFICULTY:Easy
REFERENCES:p. 34, Table2-1
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
17.Theideathatthe missionofbusinessistoproducegoodsandservicesata profit,thusmaximizingitscontributionto societyisassociatedwith
a.AdamSmith.
b. TheodoreLevitt. c. Norman Bowie. d.HermanMiller
e.MiltonFriedman.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p.40
LEARNINGOBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility: Delineate a stakeholder orientation in creating corporate social responsibility
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
18.Theoriginatorof theideaof theinvisiblehand,whichis afundamentalconceptin freemarketcapitalism,was a.AdamSmith.
b. TheodoreLevitt. c. Norman Bowie. d.HermanMiller
e.MiltonFriedman.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p.40
LEARNINGOBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
Full file at
19.Someeconomistsbelievethatifcompaniesaddresseconomicandlegalissues,theyaresatisfyingthedemandsof society,and thattryingto anticipateand meetadditionalneedswouldbealmostimpossible.Whicheconomist’s theoryaretheyfollowingmostcloselywiththis belief?
a.AdamSmith.
b. TheodoreLevitt. c. Norman Bowie. d.HermanMiller
e.MiltonFriedman.
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p.40
LEARNINGOBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Comprehension
20.Inascendingorder,Carroll'sfourlevelsofsocialresponsibilityare 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,Figure2-3
LEARNINGOBJECTIVES: 2.2: Define social responsibility
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
Full file at
21.Thetermusedtoexpresshowa firmmeetsits stakeholderexpectationsof its economic,legal,ethical,and philanthropicresponsibilitiesis
a.reputation.
b.corporatecitizenship.
c.corporateethicalaudit. d.ethicalcitizenship.
e.fiduciaryduties.
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.37
LEARNINGOBJECTIVES: 2.2: Define social responsibility
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
22.In corporategovernance,istheprocessof auditingandimprovingorganizationaldecisionsandactions.a.profit
b.loyalty
c.accountability d.control
e.diligence
ANSWER:d
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.43
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
23.Accountability,oversight,andcontrolallfallunderthedefinitionandimplementationofcorporate a.profit.
b.loyalty. c.care.
d.governance. e.diligence.
ANSWER:d
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.43
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
24.Majorcorporategovernanceissuesnormallyinvolvedecisions.(Choosetheresponsethatismostcorrect)
a.strategic-level b.tactical-level
c.divisional-level d.marketing-level e.accounting-level
ANSWER:a
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.44
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
Full file at
25.Whichof thefollowingisamajorethicalconcernamongcorporateboardsof directors?
a.Compensation
b.The non-traditionaldirectorshipapproach c.Dividendreporting
d.Corporatesocialaudits e.Debtswaps
ANSWER:a
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.44, bonuses p.46
p.48
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
26.OnepolicytoaddresstheissueofexecutivepaywasimplementedbyJ.P.Morgan,itstatedthat
a.thereshouldbe no limiton whattopexecutivescanearn.
b.managersshouldearnnomorethantwentytimesthepayofotheremployees. c.topmanagersshouldmakethesameamountasotheremployees.
d.employeescandeterminehowmuchmanagersmake.
e.thegovernmentshoulddeterminetheworthofeachmanager’sservice.
ANSWER:b
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.48
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
27.Thespecificstepsfor implementingthe stakeholderperspectivedonotincludewhichofthe following?
a.Identifyingstakeholdergroups b.Identifyingstakeholderissues
c.Identifyingand gainingstakeholderfeedback d.Identifyingandgaininggovernmentfeedback
e.Assessingorganizationalcommitmentto socialresponsibilitygroups
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p.49
LEARNINGOBJECTIVES: 2.6 -Listthestepsinvolvedinimplementinga stakeholderperspectiveinsocial responsibilityandbusinessethics.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
28.Whatare the fourlevelsofsocialresponsibility?
a.Financial,religious,ethical,andphilanthropic
b.Ethical,philanthropic,selfish,andshort-sighted c.Economic,long-term,ethical,andphilanthropic. d.Legal,economic,ethical,andphilanthropic
e.Economic,compliance,legal,andphilanthropic
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 37,Figure2-3
LEARNINGOBJECTIVES: 2.2: Define social responsibility
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
Full file at
29.Themodelisfoundedinclassiceconomicprecepts. a.economic
b. shareholder c. stakeholder d.board
e.ISO
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p.45
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Knowledge
30.Whichofthefollowingarenottypicallysecondarystakeholders?
a.Televisionnewsanchors b.Special-interestgroups
c.Customers
d.Tradeassociationse.Journalists
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 35,Figure2-2
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS: Blooms:Comprehension
31.Whichofthefollowingarenottypicallyprimarystakeholders?
a.Customers
b.Tradeassociationsc.Employees
d.Shareholders e.Suppliers
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:p. 35,Figure2-2
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
32.Whydo criticsarguethathighcompensationforboardsof directorsisabadthing?
a.Itistooexpensivefor the organization.
b.It couldcauseconflictsofinterestbetweenthedirectorsandtheorganization. c.Itisnotfairtopoorlycompensatedemployees.
d.Highpaywillrendertheboardlesscomplacent.
e.Boardof directorcompensationisnotamajorissue.
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.46
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
33.Boardmembersbeinglinkedtomorethanonecompanyisanexampleof a.strategicphilanthropy.
b.stakeholdercommitment. c.interlockingdirectorate.
d.conflictof interest. e.anillegalactivity.
ANSWER:c
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.47
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
34.Whatisthe firststepinimplementinga stakeholderperspectiveinanorganization?
a.Identifyingresourcesanddeterminingurgency b.Identifyingstakeholdergroups
c.Identifyingstakeholderissues
d.Assessingthecorporateculture
e.Assessingorganizationalcommitmentto socialresponsibility
ANSWER:d
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.49
LEARNINGOBJECTIVES: 2.6 -Listthestepsinvolvedinimplementinga stakeholderperspectiveinsocial responsibilityandbusinessethics.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
Full file at
35.Astakeholderorientationisnot completeunlessitincludes a.clearaccountingprocedures.
b.majorfinancingactivities. c.marketingstrategy.
d.feedbackfromspecial-interestgroups.
e.activitiesthatactuallyaddressstakeholderissues.
ANSWER:e
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.36
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
36.Compareandcontrastthestakeholderandshareholdermodelsofcorporategovernance.
ANSWER:Theshareholdermodelof corporategovernanceisfoundedon classiceconomic precepts,includingthe goalofmaximizingwealthfor investorsandowners. The stakeholdermodelofcorporategovernanceadoptsa broaderviewofthepurposeof businessandanswerstoallstakeholders.
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.45
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Knowledge
37.Whyisethicalmisconductmoredifficulttoovercomethanpoorfinancialperformance?
ANSWER:Lostfinancescanberegainedbutlossofreputationandshareholderconfidencecould be deadly.
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.31
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
Full file at
38.Discussthedifferencebetweenprimaryandsecondarystakeholdersin thestakeholderinteractionmodelandgive examplesforeachtype.
ANSWER:Thestakeholderinteractionmodelacknowledgestherearereciprocalrelationships betweenthecompanyandseveralprimaryandsecondarystakeholders. Themodel alsoacknowledgesthedialoguebetweenthecompany'sinternalandexternal environments. Primarystockholdersareessentialtothecompany'ssurvivaland include: employees,shareholders,suppliers,community,governmentregulatory agenciesandcustomers. Secondarystakeholdersarenotessentialtothecompany's survivalandinclude: specialinterestgroups,the massmedia,competitorsandtrade associations.
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p.32,primaryandsecondarystakeholdersp.33, stakeholderinteractionmodel
p.35, figure2-2
LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
39.Whydo somebusinesspeopleandscholarsquestionwhetherethicsshouldhavearoleinbusiness?
ANSWER:Manybusinesspeopleandscholarsquestionthe roleofethicsandsocialresponsibility inbusiness. Legalandeconomicresponsibilitiesaregenerallyacceptedas themost importantdeterminantsof performance. "Ifthisiswelldone,"sayclassiceconomic theorists,"profitsaremaximizedmoreorlesscontinuouslyand firmscarryout their majorresponsibilitiestosociety."
POINTS:1
DIFFICULTY:Easy
REFERENCES:p.39
LEARNINGOBJECTIVES: 2.3: Examine the relationship between stakeholder orientation and social responsibility
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension
Full file at
40.Discussthreecorporategovernanceissues,whytheyaredefinedasissues,andhowyouwouldsolvethem.Use examplesin youranswer.
ANSWER:Studentscouldchoosefromanyof severaltopicslistedinthetextandinTable2-4
CorporateGovernanceTopicsonpage43. Moststudentswillchooseexecutive compensationasonetopicsinceitwasdiscussedfrequentlyin thetextandis thefirst issuelistedinthetable. Compensationisan issuebecausemostpeoplebelieve executivesare notworthmillionsofdollarsinannualsalaryandbonuses. Students
maysiteJP Morgan'spolicylimitingexecutivepaytotwentytimesthepayof anyother employee. Thereareseveralotherissuesincluding
POINTS:1
DIFFICULTY:Moderate
REFERENCES:p. 43, Table2-4
p.47-48, examplegiveninanswer
LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness.
NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics
STATESTANDARDS:UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities
KEYWORDS:Blooms:Comprehension