Strategic Management Practice Test: Ethical Business Strategies, Social Responsibility, and Environmental Sustainability | Practice Test / Quiz / MCQs

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Strategic Management Practice Test: Ethical Business Strategies, Social Responsibility, and Environmental Sustainability

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Strategic Management Practice Test: Ethical Business Strategies, Social Responsibility, and Environmental Sustainability

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25 Questions

1. The business case for why companies should act in a socially responsible manner includes such reasons as

it is in the best interest of shareholders.it can lead to increased buyer patronage.it reduces the risk of reputation-damaging incidents.All of these.it generates internal benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).

2. Which of the following is not something a company should usually consider in crafting a strategy of social responsibility?

Making charitable contributions and donating money and the time of company personnel to community service endeavors.Actions to protect or enhance the environment Actions to create a workforce diversity programActions to ensure the company has an ethical strategy and operates honorably and ethically.Actions to benefit shareholders (such as raising the dividend or boost the stock price)

3. The major drivers of unethical managerial behavior include

widespread managerial belief in the ethical relativism school of thinking. ethically corrupt corporate cultures, heavy pressures on company managers to meet or beat performance targets, and overzealous pursuit of personal gain, wealth, and other self interests.intense competitive pressures.an aversion to ethical correctness on the part of top executives and a belief that unethical behavior is unimportant and probably won’t be discovered.greed, atheism, pervasive managerial immorality, and a general lack of scruples on the part of top executives regarding how customers and suppliers should be treated.

4. An immoral manager is one who

has no regard for so-called ethical standards in business and pays no attention to ethical principles in making business decisions—an immoral manager is driven by greed and self-gain and won’t hesitate to violate ethical principles if it is in his/her best interest to do so.is ethically unprincipled but nonetheless usually observes ethical standards for fear of getting caught and fired.is ethically-principled most of the time but who might stoop to unethical behavior if there’s low risk of discovery and the action or decision has a sizable positive effect on company profitability.strongly believes that it is ethical to do whatever is legal.believes that ethical standards violate the principle of moral free space and therefore are illegitimate.

5. Which of the following is not a key question that senior executives must ask whenever a new strategic initiative is under review?

Is it apparent that this proposed action is in harmony with our core values?Is there anything in the proposed action that could be considered ethically objectionable?Is what we are proposing to do fully compliant with our code of ethical conduct?Are any conflicts or concerns evident between the proposed action and our core values?Would the potential outcome of the proposed action pose a risk of embarrassment?

6. A company’s strategy needs to be ethical because

everyone is an ethics watchdog and somebody is sure to blow the whistle on the company’s unethical behavior. (1) a strategy that is unethical in whole or in part is morally wrong and reflects badly on the character of the company personnel involved and (2) an ethical strategy is good business and in the best interest of shareholders.unethical strategies are inconsistent with or else weaken the corporate culture. of the risks of getting caught and prosecuted by governmental authorities if an unethical strategy is used. of the dangers that top management will get embarrassed if the company’s unethical behavior is publicly exposed.

7. Companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel

base their standards of what is ethical and what is unethical on the Global Code of Ethical Conduct first developed in 1935 and since subscribed to by the governments of 180 countries.quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries where ethical standards vary considerably from country to country.have no fair way to judge the ethical correctness of the conduct of company personnel.have a one-size-fits-all set of ethical standards.end up allowing each company employee to determine what set of ethical standards to observe.

8. The notion of social responsibility as it applies to businesses concerns

a company’s duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.a company’s duty to put the public interest ahead of shareholder interests.societal expectations that all company stakeholders will be treated equally and fairly.a company’s duty to establish socially acceptable core values and to have a strictly enforced code of ethical conduct. the responsibility that top management has for ensuring that the company’s actions and decisions are in the best interest of society at large.

9. The best available evidence indicates that the average manager in the whole population of managers is

ethically immoral and unprincipled, especially when the chances of being discovered are slim; however, in public, the average manager is prone to give every appearance of being ethically principled and to profess support for ethically correct behavior.ethically corrupt.ethically amoral most of the time but may slip into a moral or immoral mode based on a variety of impinging factors and circumstances.ethically moral and is fairly steadfast in taking ethically correct positions. mostly ethical.

10. The moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stakeholders

is based on the conviction that improving the well-being of society ranks higher in priority and is certainly more noble than making a profit and serving the interests of shareholders.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.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.is based on the principle of treating people fairly and with respect.boils down to “it’s the right thing to do.”

11. The three categories of managers that stand out with regard to the beliefs and commitments they have to ethical and moral principles in business affairs are:

ethically-principled managers, ethically-unprincipled managers, and ethically-neutral managers.ethically responsible managers, ethically irresponsible managers, and ethically unconcerned managers.mostly ethical managers, somewhat unethical managers, and ethically corrupt managers.moral managers, amoral managers, and immoral managers.ethical managers, socially responsible managers, and crooked managers.

12. By some accounts, the population of managers is said to be

about 20% highly ethical, 60% mostly ethical, and 20% mostly unethical.about 15% highly ethical, 50% mostly ethical, and 35% ethically corrupt. about one-third highly ethical, one-third mostly ethical, and one-third mostly unethical.composed of mostly ethically moral managers but perhaps a third of all managers slip into an immoral or unethical mode in certain circumstances.distributed among moral, immoral, and amoral managers in a bell-shaped curve, with immoral managers and moral managers occupying the two tails of the curve, and amoral managers, especially the intentionally amoral managers, occupying the broad middle ground.

13. The ethical culture approach to dealing with or managing ethical conduct

is perfectly suited for companies that have had a code of ethics for 10 years or more and that want to spend little top management time exhorting company personnel to be ethical in the actions and behavior.is favored at companies whose managers want to maintain the appearance of an ethical culture to help shield the company from scandal, adverse publicity, and possible unethical conduct on the part of company personnel.is favored at companies whose managers are amoral yet highly concerned about maintaining the appearance of being ethically upstanding.works well in companies desirous of pursuing light ethics compliance.is favored at companies where top managers are very concerned about gaining employee buy-in to the company’s ethical standards, business principles, and corporate values and see the company’s code of ethics and/or its statement of corporate values as integral to the company’s identity and ways of operating.

14. The school of ethical universalism holds that

concepts of right and wrong are absolute and leave no room for deviation from country to country or circumstance to circumstance.all societies and countries apply essentially the very same set of universally-defined ethical principles of right and wrong in judging individual behavior.concepts of right and wrong are universal within countries but not across countries and cultures.some concepts of what is right and what is wrong resonate with peoples of most societies regardless of local traditions and cultural norms—hence common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances.concepts of right and wrong are governed by the Global Code of Ethical and Social Morality.

15. Which of the following represents a justifiable reason for why a company’s strategy should be ethical?

A strategy that is unethical in whole or in part is morally wrong.An unethical strategy reflects badly on the character of the company personnel involved.An ethical strategy is good business and is in the best interest of shareholders.All of these.Pursuing an unethical strategy damages a company’s reputation and can have costly consequences.

16. Ethical principles as they apply to business conduct and business decisions

are generally less stringent than the ethical principles for society at large because it is well understood that businesses should not be expected to operate any differently than what the law requires of them.deal chiefly with the behaviors that a company’s board of directors expects of all company personnel in both their conduct on-the-job and their conduct off-the-job. deal chiefly with standards a company has (and that are elaborated in its code of ethics) about what is right and wrong insofar as the conduct of its business is concerned and about what behaviors are expected of company personnel.involve the rules a company’s top management and board of directors make about “what is right” and “what is wrong.”are not materially different from ethical principles in general.

17. Striving to be socially responsible entails touching such bases as

what, if any, actions to take to protect or enhance the environment (beyond what is legally required).exerting conscious efforts to ensure that all elements of the company’s strategy are ethical and actions to make the company a great place to work.what actions to take to enhance workforce diversity and make the company a great place to work.whether to make charitable contributions and donate money and the time of company personnel to community service endeavors.All of these.

18. Which of the following is not generally on a company’s menu of actions to consider in crafting a strategy of social responsibility?

Actions to ensure that the company’s strategy is ethical and that ethical principles will be observed in operating the businessMaking charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes, and reaching out to make a difference in the lives of the disadvantagedActions to protect or enhance the environment (apart from what is required by governmental authorities) Actions to look out exclusively for the best interests of shareholders Actions to create a work environment that enhances employee well-being and makes the company a great place to work

19. Which one of the following is not part of the moral case for why a company should actively promote the betterment of society?

Acting in a socially responsible manner is in the overall best interest of shareholders. 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. 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.“It’s the right thing to do.”Every business has a moral duty to take corporate citizenship into consideration and to do what’s best for shareholders within the confines of discharging its duties to operate honorably, provide good working conditions to employees, be a good environment

20. The unconcerned or non-issue approach to dealing with or managing ethical conduct

is prevalent at companies whose executives ascribe to the view that notions of right and wrong in business matters are defined entirely by the prevailing laws and government regulations.is appropriate for companies who have a deeply-planted ethical culture.is favored at companies whose managers are moral and have ethically upstanding reputations.is favored at companies whose managers fear scandal and are desirous of containing any adverse fallout from claims of unethical actions by company personnel.is perfectly suited for ethically-principled companies where company personnel are highly accustomed to behaving in an ethical fashion (because at such companies, ethical behavior is mostly a non-issue).

21. Which of the following should be on a company’s menu of actions to consider in crafting a strategy of social responsibility?

All of these.Actions (over and above what is required) to protect or enhance the environment, including both those environmental problems stemming from the company’s own business activities and those problems outside the company’s immediate sphere of operationsActions to create a work environment that enhances employee well-being and makes the company a great place to workActions to ensure that the company’s strategy is ethical and that ethical principles will be observed in operating the businessHow much and what kinds of resources it will allocate to charitable contributions, community service endeavors, various worthy causes, and helping the disadvantaged

22. Business ethics concerns

the application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel.developing a special set of ethical standards for businesses to observe in conducting their affairs.developing a consensus among companies worldwide as to what ethical principles that businesses should be expected to observe in the course of conducting their operations.picking and choosing among the consensus ethical standards of society to arrive at a set of ethical standards that apply directly to operating a business. what ethical behaviors should be expected of company personnel in the course of doing their jobs.

23. The contention that ethical standards should be governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not are the basic principles of

the school of ethical universalism.the School of Morally Correct Thinking and Behavior based in Rome, Italy.integrated social contracts theory. the Global Code of Ethical and Social Morality developed by the United Nations. the school of ethical relativism.

24. A company’s social responsibility strategy is typically comprised of all but which one of the following elements?

Making charitable contributions and donating money and the time of company personnel to community service endeavorsActions to protect or enhance the environmentActions to enhance workforce diversity and make the company a great place to workActions to keep prices low enough that the company’s profits will not be viewed by the general public as obscenely high or exorbitantConscious efforts to ensure that all elements of the company’s strategy are ethical and actions to protect or enhance the environment (beyond what is legally required)

25. Integrated social contracts theory maintains that

there should be no absolute limits put on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside. each country/culture/society has commonly held views about what constitutes ethically appropriate actions/behaviors; these common standards of what is ethical and what is not combine to form a “social contract” that all individuals in that country/cultureadherence to universal ethical norms always take precedence over local ethical norms.few nations or cultures have common moral agreement on what is ethically right and wrong.there is no such thing as “moral free space”—all ethical standards are determined by societal norms, and individuals have an implied social contract to live up to these standards.

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

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Without work one finishes nothing. - Ralph Waldo Emerson
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