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 litmus test of a company’s code of ethics is

the degree to which it is connected to a company’s statement of core values.determined by the ethical behaviors expected of company personnel in the course of doing their jobs.the extent to which a company’s approach to ethical behavior mirrors the ethical principles for society at large.the extent to which it is embraced in crafting strategy and in the day-to-day operations of the business.based on the rules a company’s top management and board of directors make about “what is right” and “what is wrong.”

2. Which of the following is not something a company should consider in crafting an environmental sustainability strategy?

Actions to provide for the longevity of natural resourcesMaking contributions to the Global Environmental Council which are distributed based on a competitive basisAll of theseActions to protect the environment that will guard against the ultimate endangerment of the planetActions to maintain ecological support systems for future generations

3. The strength of integrated social contracts theory is that it

puts no absolute limits on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside. correctly recognizes all soundly-reasoned ethical standards are universal.accommodates the best parts of ethical universalism and ethical relativism. recognizes the importance of allowing local ethical norms to always take precedence over universal ethical norms.recognizes that individuals and businesses have a basic right to “moral free space” and that it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors.

4. 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.

5. Which of the following statements is false as concerns the various approaches company managers can take in dealing with or managing ethical conduct?

Companies that adopt a compliance mode usually do such things as making the company’s code of ethics a visible and regular part of communications with employees, having ethics training programs, appointing a chief ethics officer or ethics ombudsperson, inThe main objective of the compliance approach is to protect against adverse publicity and any damaging consequences brought on by headlines in the media, outside investigation, threats of litigation, punitive government action, or angry or vocal shareholders.Companies using the damage control approach usually make some concession to window-dressing ethics, going so far as to adopt a code of ethics (so their executives can point to it as evidence of their ethical commitment should any ethical lapses on the comCompanies using the unconcerned or non-issue approach ascribe to the view that ethics has no place in the conduct of business and that companies should not be morally accountable for their actions.One of the weaknesses of the compliance approach is that moral control resides in the company’s code of ethics and in the ethics compliance system rather than in an individual’s own moral responsibility for ethical behavior and in strong peer pressures fo

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

about 20% highly ethical, 60% mostly ethical, and 20% mostly unethical.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.about 15% highly ethical, 50% mostly ethical, and 35% ethically corrupt.

7. The damage control approach to dealing with or managing ethical conduct

is favored at companies whose managers are intentionally amoral, but who are wary of scandal and adverse public relations fallout that could cost them their jobs or tarnish their careers.is appropriate for companies whose managers are highly concerned about having ethically upstanding reputations.is perfectly suited for ethically-principled companies where company personnel are highly accustomed to behaving in an ethical fashion (because at such companies any ethical lapses are easily subject to damage control).is well-suited for companies with no history of ethical problems.is prevalent at companies whose executives are moral and want to put on a public face of being ethically-principled.

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

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 favored at companies whose managers are moral and have ethically upstanding reputations.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 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).is appropriate for companies who have a deeply-planted ethical culture.

9. Business ethics concerns

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.developing a special set of ethical standards for businesses to observe in conducting their affairs.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. the application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel.what ethical behaviors should be expected of company personnel in the course of doing their jobs.

10. Which one of the following is false as concerns the merits of why acting in a socially responsible manner is “good business”?

Some employees feel better about working for a company committed to improving society—a condition that can contribute to lower turnover and better worker productivity.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.Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders.To the extent that a company’s socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage.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.

11. 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).what actions to take to enhance workforce diversity and make the company a great place to work.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.whether to make charitable contributions and donate money and the time of company personnel to community service endeavors.All of these.

12. Unethical managerial behavior tends to be driven by such factors as

the pervasiveness of immoral and amoral businesspeople.overzealous pursuit of personal gain, wealth, and other selfish interests.All of these.heavy pressures on company managers to meet or beat earnings targets.a company culture that puts the profitability and good business performance ahead of ethical behavior.

13. According to integrated social contracts theory,

universal ethical principles or norms leave some “moral free space” for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined commonly held views about what is morally right and wrong form a contract with society that is binding on all individuals, groups, organizations, and businesses in terms of establishing right and wrong and in drawing the line between ethical and unethicauniversal ethical norms always take precedence over local ethical norms.All of the above.universal ethical principles apply in those situations where most all societies—endowed with rationality and moral knowledge—have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of wh

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

(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 dangers that top management will get embarrassed if the company’s unethical behavior is publicly exposed.everyone is an ethics watchdog and somebody is sure to blow the whistle on the company’s unethical behavior. of the risks of getting caught and prosecuted by governmental authorities if an unethical strategy is used.

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

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.mostly ethical. ethically moral and is fairly steadfast in taking ethically correct positions. 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.

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

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. 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.works well in companies desirous of pursuing light ethics compliance.is favored at companies whose managers are amoral yet highly concerned about maintaining the appearance of being ethically upstanding.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.

17. Paying bribes and kickbacks to grease business transactions

is acceptable to immoral managers but not to amoral managers. is ethically acceptable according to the principle of ethical universalism and ethically unacceptable according to the principle of ethical relativism.violates ethical principles of right and wrong in all countries.is one of the thorniest ethical problems that multinational companies face because paying bribes is normal and customary in some countries and ethically or legally forbidden in others.is more acceptable in dealing with a company’s suppliers than in dealing with a company’s customers.

18. Moral managers

are ethically principled.see themselves as stewards of ethical behavior and believe it is important to exercise ethical leadership.view what is legal as the ethical minimum and have a habit of operating at well above what the law requires. pursue success within the letter and spirit of what is considered ethical and legal.All of the above.

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

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

20. An intentionally amoral manager is one who

deliberately and maliciously violates ethical principles on a regular basis.is ethically-principled most of the time but who knowingly and willingly stoops to unethical behavior if there’s low risk of discovery and the action or decision has a sizable positive effect on company profitability.views the observance of high ethical standards (doing more than what is required by law) as too Sunday-schoolish for the tough competitive world of business, even though observing some higher ethical considerations may be appropriate in life outside of business.believes business and ethics are not to be mixed because different rules apply in business as compared to other realms of life.strongly believes that whatever is legal is also ethical.

21. Based on data from the Global Corruption Report sponsored by Transparency International,

corruption in emerging country markets is relatively low compared to the rest of the world.the ethically “cleanest” industries are public works contracts and construction, the arms and defense industry, and the oil and gas industry. corruption among public officials and in business transactions is widespread across the world. business managers are more corrupt on average than government officials.bribery occurs most often in the automotive industry, the drug and pharmaceutical industry, and in the apparel industry.

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

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.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“It’s the right thing to do.”Acting in a socially responsible manner is in the overall best interest of shareholders.

23. The school of ethical relativism holds that

concepts of right and wrong as they apply to business behavior are always varying shades of gray, never absolute (i.e. black or white). when there are cross-country or cross-cultural differences in what is deemed fair or unfair, what constitutes proper regard for human rights, and what is considered ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere.what constitutes ethical or unethical conduct varies according to the religious convictions of each society or each culture within a country.concepts of right and wrong are always a function of each individual’s own set of values, beliefs, and ethical convictions.concepts of right and wrong are always governed by business norms in each country, culture, or society.

24. Moral managers

view what is legal as also ethical. are skeptical about ethics and ethical standards but feel obligated to observe the company code of ethics.see themselves as stewards of ethical behavior and believe it is important to exercise ethical leadership; they are ethically principled and pursue success within the letter and spirit of what is considered ethical and legal.are ethically-principled as long as they see such behavior being in their own self-interest.try to stay within ethical bounds for fear of being caught doing something unethical and having their careers ruined.

25. One of the big difficulties or challenges that a company encounters in using the “ethical culture” approach managing ethics-related issues and ethics conduct is

the lack of strong compliance procedures to deter morally corrupt company personnel from deliberately flaunting cultural norms and engaging in unethical behavior.that the locus of moral control is the company’s code of ethics. relying too heavily on peer pressures and cultural norms to enforce the espoused ethical standards and underutilizing compliance enforcement procedures.overemphasizing the creation of a work climate where everyone is an ethics watchdog and whistle-blowing is required. greater susceptibility to ethical scandal.

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❤ 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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