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

Home > Marketing Management 101 > Quizzes > Strategic Management Practice Test: Ethical Business Strategies, Social Responsibility, and Environmental Sustainability

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

Fast practice, instant feedback. Timer auto-submits when time’s up.

Avg score: 29% • Most missed: “Which of the following is not a particularly sound or valid reason why a company…”

Study First Challenge a Friend Stats

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

Time left 00:00

25 Questions

1. According to integrated social contracts theory,

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 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 All of the above.universal ethical norms always take precedence over local ethical norms.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

2. 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

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. the lack of strong compliance procedures to deter morally corrupt company personnel from deliberately flaunting cultural norms and engaging in unethical behavior.greater susceptibility to ethical scandal. that the locus of moral control is the company’s code of ethics.

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

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.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. recognizes the importance of allowing local ethical norms to always take precedence over universal ethical norms.accommodates the best parts of ethical universalism and ethical relativism. correctly recognizes all soundly-reasoned ethical standards are universal.

4. 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.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 foCompanies 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.

5. 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 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.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. 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.

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

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

7. 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?

8. The strength of the beliefs underlying the moral case for an ethical strategy

involves managers with high ethical principles and standards who are advocates of a corporate code of ethics and strong ethics compliance and are genuinely committed to certain corporate values and business practices.begins with managers who themselves have strong character (for example, who are honest, have integrity, and truly care about they conduct a company’s business).starts with managers who understand there is big difference between adopting values statements and codes of ethics that serve merely as window dressing and those that truly paint the white lines for a company’s actual strategy and business conduct.all of the above.starts with managers who walk the talk in displaying the company’s stated values.

9. One of the big difficulties and challenges that a company encounters in using the “damage control” approach to managing ethics-related issues and ethics conduct is

a proliferation of ethical rules and guidelines to avoid public scandal. how to discreetly signal employees that the company’s code of ethics will be lightly enforced if at all.that the locus of moral control is shifted to individual employees.writing a code of ethics that looks strong but is really pretty weak in terms of ethical principles.credibility problems with stakeholders and susceptibility to ethical scandal.

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

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. (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.everyone is an ethics watchdog and somebody is sure to blow the whistle on the company’s unethical behavior. of the dangers that top management will get embarrassed if the company’s unethical behavior is publicly exposed.

11. An environmental sustainability strategy consists of a company’s deliberate actions to

apply ethical principles of right and wrong regarding the protection and enhancement of natural resources and ecological support systems as set forth in the Global Code of Ethical Behavior adopted by 150 nations of the world.meet the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet.apply universal norms regarding the protection of the environment to its everyday operations and to establish guidelines regarding what actions are ecology sound based on the findings of the scientific community.operate in an honorable manner, provide good working conditions for employees, and to actively work to enhance the quality of life in the local communities where it operates and in society at large.balance commonly held views about what constitutes environmentally appropriate actions against its ability to make a profit.

12. The business case for an ethical strategy

focuses primarily on costs that are difficult to quantify (for example, customer defections and adverse effects on employee productivity) but can often be the most devastating.starts with managers who understand there is big difference between adopting values statements and codes of ethics that serve merely as window dressing and those that truly paint the white lines for a company’s actual strategy and business conduct.starts with numerous ethical rules and guidelines and an environment where employees rely on these rules for moral guidance.begins with ethical guidelines that help send the message that management takes the observance of ethical norms seriously and that behavior falling outside ethical boundaries will have negative consequences.emphasizes that pursuing unethical strategies not only damages a company’s reputation but can also have costly consequences that are wide ranging.

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

All of these.An ethical strategy is good business and is in the best interest of shareholders.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.Pursuing an unethical strategy damages a company’s reputation and can have costly consequences.

14. The major drivers of unethical managerial behavior include

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.intense competitive pressures.widespread managerial belief in the ethical relativism school of thinking. 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.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.

15. 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. 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.”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.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.

16. 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.works well in companies desirous of pursuing light ethics compliance.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.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.

17. Which of the following is not accurate as concerns the damage control approach to dealing with or managing ethical conduct?

Company executives that practice the damage control approach are prone to look the other way when shady or borderline behavior occurs—adopting a kind of “See no evil, hear no evil, speak no evil” stance.Companies that practice the damage control approach often have a code of ethics that exists mainly as nice words on paper, but company personnel do not operate within a strong ethical context—there’s a notable gap between talking ethics and walking ethicsThe damage control approach is well-suited for companies with no history of ethical problems. Executives at companies that practice the damage control approach are prone to making token gestures to police compliance with codes of ethics; they also rely heavily “spin” to help extricate the company from claims that the company’s strategy has unethicThe damage control approach is favored at companies whose managers are intentionally amoral, but are wary of scandal and adverse public relations fallout that could cost them their jobs or tarnish their careers.

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

Making contributions to the Global Environmental Council which are distributed based on a competitive basisActions to maintain ecological support systems for future generationsActions to protect the environment that will guard against the ultimate endangerment of the planetActions to provide for the longevity of natural resourcesAll of these

19. The school of ethical universalism holds that

concepts of right and wrong are universal within countries but not across countries and cultures.concepts of right and wrong are governed by the Global Code of Ethical and Social Morality. all societies and countries apply essentially the very same set of universally-defined ethical principles of right and wrong in judging individual behavior.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 absolute and leave no room for deviation from country to country or circumstance to circumstance.

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

business managers are more corrupt on average than government officials.corruption in emerging country markets is relatively low compared to the rest of the world.bribery occurs most often in the automotive industry, the drug and pharmaceutical industry, and in the apparel industry.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.

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

whether to make charitable contributions and donate money and the time of company personnel to community service endeavors.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.All of these.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.

22. According to the school of ethical universalism,

concepts of what constitutes ethical behavior and unethical behavior are dictated by subjectively-provable moral principles but not by objectively-provable moral principles.concepts of what is ethical and what is unethical are universal and absolute, leaving no room for deviation from country to country or circumstance to circumstance. to the extent there is common moral agreement about right and wrong actions and behaviors across multiple cultures and countries, there exists a set of universal ethical standards to which all societies, all companies, and all individuals can be held accountable.concepts of right and wrong are universal within countries/societies but not across countries or cultures.all societies and countries are obligated to apply universally-defined ethical principles of right and wrong as set forth in the Global Code of Ethical Behavior adopted by 150 nations of the world.

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

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.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.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.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.

24. The strength of the beliefs underlying ethical universalism is that

ethical universalism recognizes the obvious—basic moral standards vary significantly according to local cultural beliefs, local religious beliefs, and social mores. ethical standards are objectively-determined by religious and moral experts.what is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical is (or should be) grounded in religious doctrine and applied strictly to all business situations.it leaves no room for thinking that concepts of right and wrong can be varying shades of gray—they are always absolute and unambiguous.it draws upon the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical business behavior and what constitutes unethical business behavior no matter what country market or culture a company is operating in.

25. 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.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. societal expectations that all company stakeholders will be treated equally and fairly.

⚡ Recently practiced quizzes in this topic

Live quiz activity

Bachelor of Mass Media in Advertising (BMM Advertising) Practice Test: Copywriting International Marketing Practice Test Questions Bachelor of Mass Media in Advertising (BMM Advertising) Practice Test: Media Planning and Buying Basic Marketing Practice Test Modern Marketing Glossary Pricing Exam Marketing Practice Test: Developing and Managing Products Marketing Practice Test: Decision Support Systems and Marketing Research FBLA Advertising Review Marketing Management Practice Test Questions: All Topics

25 Questions

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

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

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.

25 Questions

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

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

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.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com