Chapter 4

Question 1

1. 
   

   Which of the following is NOT an example of a stakeholder group that an organization must satisfy to assure long-term survival?

   Answer
   

   		investors
   		customers
   		the media<
   		employees
   		governments

1 points  

Question 2

1. 
   

   The Rainforest Action Network, a national advocacy group, launched a bruising PR campaign to stop Home Deport from selling old-growth lumber. After two years of bad publicity and resistance to new store locations, Home Depot surrendered. Today, its suppliers are working with environmental and forestry groups to certify that their wood products are not from endangered areas. Home Depot used a(n) ____ strategy to respond to demands that it be socially responsible.

   Answer
   

   		proactive
   		accommodative<
   		predictive
   		defensive
   		offensive

1 points  

Question 3

1. 
   

   The Department of Defense doesn't classify pilferage as a major problem, as its annual inventory losses run $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to ____.

   Answer
   

   		magnitude of consequences<
   		magnitude of influence
   		location immediacy
   		probability of response
   		all of these

1 points  

Question 4

1. 
   

   When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, they were acting in the role of ____.

   Answer
   

   		overt constituents
   		covert constituents
   		secondary shareholders
   		secondary stakeholders<
   		functional customers

1 points  

Question 5

1. 
   

   To encourage more ethical decision making in an organization, its managers should ____.

   Answer
   

   		carefully select and hire new employees
   		establish a specific code of ethics
   		create an ethical climate
   		train employees in how to make ethical decisions
   		do all of these<

1 points  

Question 6

1. 
   

   For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. But that wasn't enough for AIDS prevention groups, which were outraged by GSK's decision to use the World Trade Organization's (WTO’s) patent protection rules to take action against governments importing lower-cost versions of these drugs. AIDS prevention groups saw GSK’s use of WTO regulation as acting at which level of social responsibility?

   Answer
   

   		economic
   		fiscal
   		legal X
   		discretionary
   		accommodative

1 points  

Question 7

1. 
   

   Historically, ____ responsibility means making a profit by producing a product valued by society. It has been the most basic social responsibility of a business.

   Answer
   

   		discretionary
   		ethical
   		legal
   		fiscal
   		economic<

1 points  

Question 8

1. 
   

   When addressing issues of high ____ , managers are more aware of the impact their decisions have on others, they are more likely to view the decision as an ethical decision, and they are more likely to worry about doing the right thing.

   Answer
   

   		social consensus
   		ethical intensity<
   		temporal immediacy
   		proximity of effect
   		ethical temporality

1 points  

Question 9

1. 
   

   Anglo American
   South Africa is experiencing an AIDS epidemic. Life expectancy in that country is 48 years; life expectancy has not been that low in the United States since 1909. Thirty percent of the population is HIV positive. The largest employer by far in South Africa is Anglo American, a mining conglomerate. This company estimates that between 25 and 30 percent of its employees are HIV positive. Dr. Brian Brink, an employee of Anglo American, decided Anglo could help arrest the growth of AIDS by providing its 130,000 South African employees with free anti-AIDS medicine. Anglo American’s executives agreed. The decision to provide the drug makes Anglo one of the largest customers for AIDS medicine in the world. Anglo provides clinics staffed with company-employed doctors and nurses to provide for the medical needs of its employees. Anglo not only had to pay for the medicine (which costs twice the salary of an average miner), it had to set up a system to dispense it and monitor treatment. Anglo also supplies education, counseling, and disease testing as well as condoms to all of its employees. Anglo’s decision to fight AIDS has sent a palpable wave of relief, optimism, and hope throughout South Africa. Other companies have followed Anglo American’s lead.
   
   Refer to Anglo American. Even though Anglo American would not have been considered unethical if it had not begun the fight against AIDS, it chose to assume a social role of ____, the highest level of social responsibility.

   Answer
   

   		legal responsibility
   		equitable responsibility
   		discretionary responsibility<
   		moral responsibility
   		economic responsibility

1 points  

Question 10

1. 
   

   Shell Oil Company's plan to sink an abandoned offshore oil-storage buoy had a massive effect on employee motivation and recruitment. The number of qualified people applying for jobs at Shell plummeted, and many employees looked for positions in other companies. The plan caused much greater harm than Shell’s managers had ever imagined it would. In other words, the plan had a much greater ____ than predicted.

   Answer
   

   		synergistic effect
   		impact proximity
   		concentration of synergy
   		magnitude of consequences<
   		temporal munificence

1 points  

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