401: Managing for Sustainability MCQs - DIMR

DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

Prof. Sameer Patil www.dimr.edu.in

401: Managing for Sustainability MCQs

1. The acronym CSR stands for a. Corporate Search and Rescue

b. Corporate Social Responsibility

c. Corporate Sensitive Reliability

d. Corporate Social Reality

2. All those who are affected by or can affect the ~perations of the organisation are known as: a. Owners b. interested parties

c. stakeholders

d. stockholders

3. The stakeholder view of social responsibility states that organisations must respond to the needs of

a. employees and customers

b. shareholders and owners

c. all interested parties

d. all those who might sue the organisation

4. A firm is said to have good corporate social performance when: a. stockholders invest in socially responsible causes

b. charitable deductions are automatically deducted from pay without the consent of employees

c. the company has not been convicted of ethical violations for five consecutive years

d. stakeholders are satisfied with its level of social responsibility

5. A socially responsible mutual fund will only purchase stocks in companies that

a. have a no-smoking policy in place

b. have a culturally diverse management team

http://www.dimr.edu.in/



c. hire some job candidates who are HIV positive

d. have good social performance.

6. A whistle blower is an employee who a. exposes organisational wrongdoing

b. complains a lot to company management

c. engages in un-ethical behavior

d. referees disputes with other employees

7. Which one of the follciwing approaches to creating an ethical and socially responsible workplace is likely to be the most powerful?

a. Passing out buttons with the statement "Just Say No to Bad Ethics"

b. Placing posters about ethics throughout the organisation

c. Top management acting as models of the right behavior

d. Including a statement about ethics and social responsibility in the employee handbook

8. A recommended way of minimising unethical behaviour is for employees to a. write anonymous notes to ethical violators

b. immediately report all suspicious behaviour to top management

c. spend part of their vacation preparing a personal philosophy of ethics

d. confront fellow employees about ethical deviations

9. Corporate Social Responsibility (CSR) consists of which four kinds of responsibilities

a. Economic, ethical, societal, and altruistic

b. Economic, legal, ethical, and altruistic

c. Fiscal, legal, societal, and philanthropic

d. Economic, legal, ethical, and philanthropic




10. Which of the items listed is NOT a product of a "favourable corporate reputation"?

a. Charge more for its products and services

b. Attract, hire and keep higher quality applicants/employees

c. Enhance their access to better capital markets

d. Ignore the Foreign Corrupt Practices Act

11. Typical Codes of Conduct cover conduct described below. In the aftermath of Bhopal, the chemical industry wishing to demonstrate responsible corporate citizenship has added which additional behaviours set out below

a. Legal compliance

b. Continuous improvement, communication with external stakeholders and training of suppliers on the standards

c. Pollution prevention

d. Safe handling of chemicals from manufacture through disposal

12. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders? a. If firms only act in their own self-interest employees may feel exploited

b. If firms only act in their own self-interest government might put more regulation on them

c. If firms only act in their own self-interest customers might not like the image that the company portray

d. If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support

13. What is triple bottom line? a. An accounting tool that looks at the impact on people, planet and profits

b. A management strategy which states all the attention should be on profits

c. An accounting tool that looks at cost, profit and loss

d. A management strategy which focuses on corporate social responsibility




14. Why do alternative organisations run differently from conventional shareholder led approach?

a. They do not have shareholders

b. They are run in non-hierarchical ways which aim to provide a positive impact on society rather than to make profit

c. They prioritise corporate social responsibility.

d. They aim to give money to charities and good causes

15. Which of the following would most effectively act as the primary objective of a business organisation? a. To procure resources b. To make a profit

c. To communicate with shareholders

d. To mediate between the organisation and the environment

16. Which of the following does the term Corporate Social Responsibility relate to?

a. Ethical conduct

b. Human rights and employee relations

c. All of the above

d. None of the above

17. Who are organisational stakeholders? a. Customers

b. Community

c. Providers of finance

d. All of the above

18. The human activity, among the following, which causes maximum environmental pollution having regional and global impacts, is:




a. Urbanization

b. Industrialisation

c. Agriculture

d. Mining

19. The dimension of social responsibility refers to a business's societal contribution of time, money, and other resources.

a. Ethical

b. Philanthropic

c. Volunteerism

d. Strategic

20. Stakeholders are considered more important to an organisation when: a. they can make use of their power on the organisation

b. they do not emphasise the urgency of their issues

c. their issues are not legitimate

d. they can express themselves articulately

21. Better access to certain markets, differentiation of products, arid the sale of pollution-control technology are ways in which better environmental performance can:

a. increase revenue

b. increase costs

c. decrease revenue

d. decrease costs

22. Atmospheric issues include all of the following except: a. acid rain

b. global warming




c. air pollution

d. water quantity

23. In a organisation, decision making is delegated as far down the chain of command as possible

a. Decentralized b. Creative c. flexible

d. centralized

24. refers to a strategic process involving stakeholder assessment to create long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment.

a. Eco-strategy b. Green marketing

c. Superfund reauthorization

d. Recycle and reprocess management

25. Sustainable development will not aim at: a. Social economic development which optrrruse the economic and societal benefits available in the present, without spoiling the likely potential for similar benefits in the future.

b. Reasonable and equitably distributed level of economic well-being that can be perpetuated continually.

c. Development that meets the need of the present without compromising the ability of future generations to meet their own needs.

d. Maximising the present day benefits through increased resource consumption




6. Which of the following statements in relation to sustainable development is not true? a. Sustainable development is defined as the development that meets the needs of present without compromising the ability of our future generations to meet their own needs.

b. Sustainability has the main objective of purely focussing on the natural

environment.

c. Sustainable development of various countries and the entire world is the only solution left with mankind to survive for a longer period on Earth.

d. Sustainable development not only considers the protection of the environment but also the maintenance of economic viability as well as the social and ethical considerations.

27. The term sustainability refers to a. Maintaining resource use at current or higher levels

b. Keeping the natural environment and human society in a happy, healthy and functional state

c. Holding or increasing the current quality of human life

d. Always focusing on fulfiling short-term needs

e. Opposing change from current policies 28. Social sustainability refers to what?

a. The concept of the enterprise supporting jobs and delivering income to communities in the long term

b. Stewardship of resources and managing and conserving the environment

c. The concept of the enterprise supporting jobs and delivering income to communities in the short term

d. Sharing benefits fairly and equitably and respecting the quality of life of communities and of human rights

29. The Brundtland definition comprises of which three parts? a. Development, Needs and Future Responsibility

b. Development, Issues and Future Generations




c. Development, Needs and Future Generations

d. Growth, Needs and Future Generations

30. What is the most commonly cited definition for, and accepted thinking about sustainable development?

a. Brundtland World on Committee Environment and Sustainable Development

b. Bruntland World Committee on Environment and Development

c. Brundtland World Commission on Environment and Sustainable Development

d. Brundtland World Commission on Environment and Development

31. Which one of the following characteristics is widely regarded as being an important aspect of sustainable development? a. Inter-generational equity

b. Increasing consumption expenditure

c. Intra-generational inequity

d. Increased levels of saving

32. A "green transport plan" is: a. An environmentally acceptable travel plan devised by a local authority for its area

b. An internationally agreed strategy for reducing the impact of international transport activity on the global environment.

c. A plan devised by a company or organisation to reduce the environmental impact of the transport demands generated by itself and its employees

d. The UK government's plan for a sustainable transport sector

33. Food, space, disease, natural disasters, climate, competition and predation are examples of what? a. Capacity Factors




b. Limiting Factors

c. Predation Factors

d. Sustainable Factors

34. Sustainable Development focuses on more use of: a. Renewable resources

b. Abiotic resources

c. Agricultural resources

d. Natural resources

35. Which of the following perspectives takes the strongest stance in support of sustainability? a. Communalist b. Free market

c. Deep ecology

d. Cornucopian

e. Accommodating

36. Social, economic and ecological equity is the necessary condition for achieving

a. Social development

b. Economic development

c. Sustainable development

d. Ecological development

37. 'Meeting the needs of the present compromising the ability of future generation to meet their own need'

is a. Brundtland

b. Mahatma Gandhi

c. Maathai




d. Sunderlal Bahugana

38. The idea of sustainable development was conceived in early a. 1950

b. 1960

c. 1970

d. 1980 39. The definition of sustainable development was expressed during the World Commission on

39 Environment and Development in 1987, chaired by a. Gro Harlem Brundtland

b. Murray Bookchin

c. Rees and WackernackeJ

d. John Elkington

40. Which of the following statement is correct? (a) Renewable resources should provide a sustainable yield (the rate of harvest should not exceed the rate of regeneration).

(b) For non-renewable resources there should be equivalent development of renewable substitutes.

(c) Waste generation should exceed the assimilative capacity of the environment a. (a) and (c)

b. (b) and (c)

c. (a) and (b)

d. None

41. Dematerialisation is being encouraged through the ideas of industrial ecology _and a. Ecodesign

b. Ecolabelling




c. Both (a) and (b)

d. None of the above

42. The ecological footprint is an tool for ecological resources a. Accounting

b. Management

c. Decision making

d. Financial

43. Eco-tracking tools need to be available which a. Do not allow you to trace environmental footprint

b. Avoids data collection

c. Set-up an environmental management system

d. Help in decision making

44. A sustainability rep~rt is the key platform for communicating ., and impacts whether positive or negative a. Sustainability performance

b. Management decisions

c. Financial analysis

d. Information

45. Adverse social impacts could be in the form of a. Loss of land

b. loss of structures

c. Loss of livelihood

d. All of the above

46. Who uses the Triple Bottom Line? a. Businesses




b. Non-profit organisations

c. Government entities

d. All of the above

47. Under which ISO Standard the Guidance on Social Responsibility was recognized?

a. ISO 26000

b. ISO 27000

c. ISO 22000

d. ISO 14000

48. Carbon footprints is used to determine the amount of offsets necessary by a business to sell their product as but is not used to determine carbon liability a. Carbon neutral

b. Carbon dating

c. Carbon cutting

d. Carbon rating

49. Production, transformation and use of energy are the major problems of: a. Industrial activity

b. Sustainable development

c. Global warming

d. Acid rain

50. A chemical industry is not a cause of a. Air pollution

b. Noise pollution

c. Water pollution




d. Nuclear pollution

51. Electronic waste is the adverse effect of a. Industry

b. Agriculture c. Housing

d. Mining

52. Extraction of mineral and metal form the earth is: a. Agriculture

b. Transportation

c. Mining

d. Sustainable development

53. Underground and ope caste is a methods of a. Agriculture

b. Mining

c. Housing

d. Transportation

54. This is an effect of transportation a. Air emission

b. Material consumption

c. Solid waste generation

d. Acid mine drainage

55. In EIA hearing is made within a. 5 days

b. 10 days




c. 20 days

d. 30 days

56. What process may explain the decline in the number of tones of fish caught?

a. Bioremediation

b. Deforestation

c. Extinction

d. Overexploitation

e. Succession

57. Food, space, disease, natural disaters, climate, competition and predation are examples of what? a. Capacity factors b. Limiting factors.

c. Predation factors

d. Sustainable factors

58. Which is not a benefit of maintaining sustainable forest ecosystems? a. Empty space on which to build homes

b. Habitat for thousands of species

c. Reduction of erosion in watersheds

d. Regulation

59. In a kelp forest ecosystem, which species is a keystone species? a. Kelp

b. Otter

c. Fish

d. Rock

60. The top three ecological footprints in the world are




1. USA 2. Ireland 3. New Zealand 4. Australia 5. Canada 6. Denmark

a. 1,2,3

b. 2,4,6 c. 3,5,6 d. 1,2,6

Q.no Answer Q.no Answer Q.no Answer Q.no Answer

1 B 21 A 31 A 51 A 2 C 22 D 32 C 52 C 3 C 23 D 33 D 53 B

4 D 24 B 34 A 54 C 5 D 25 D 35 C 55 D 6 A 26 B 36 C 56 D 7 C 27 A 37 A 57 B

8 D 28 D 38 D 58 A 9 D 29 C 39 A 59 B

10 D 30 D 40 C 60 D

11 B 31 A 41 C

12 D 32 C 42 A

13 A 33 D 43 C

14 B 34 A 44 A

15 B 35 C 45 D

16 C 36 C 46 D

17 D 37 A 47 A

18 A 38 D 48 B

19 B 39 A 49 A

20 A 40 C 50 D




Part 2

Q.61. What is meant by the phrase CSR?

a) Corporate Social Responsibility b) Company Social Responsibility

c) Corporate Society Responsibility d) Company Society Responsibility

Ans: a

Q.62. What is meant by the phrase 'teleological ethics'?

a) Is used to judge is an action is right, fair and honest.

b) An action can only be judged by its consequences.

c) Developing the individual personal characteristics.

d) The key purpose of ethics is to increase freedom.

Ans: b

Q.63. For Karl Marx, where do our values come from?

a) They are a product of our upbringing and our parents.

b) They are a product of the economic system within which we live.

c) They are a product of social inequality.

d) They are a product of what we are taught at school.

Ans: b

Q.64. What does Milton Friedman believe to be the sole responsibility of business?

a) The only social responsibility of business is to its shareholders.

b) Managers should act in ways that balance the interest of society and shareholders.

c) The primary responsibility organizations have is to its employees.

d) The primary responsibility organizations have is to its stakeholders.

Ans: a

Q.65. What, according to Adam Smith, is the best way to promote collective interest?

a) Through government making decisions about what is in the public interest.

b) Through everyone working together to support each other.

c) Through everyone working on their own self-interest

d) Through individuals forgoing their personal interest for the good of the collective.

Ans: c

Q.66. Why, according to stakeholder theory, is it in companies' best interests to pay attention

to their stakeholders?

a) If firms only act in their own self-interest employees may feel exploited.

b) If firms only act in their own self-interest government might put more regulation on them.

c) If firms only act in their own self-interest customers might not like the image that the

company portray.




d) If firms only act in their own self-interest and inflict harm on stakeholders then society

might withdraw its support.

Ans: d

Q.67. What is the enlightened self-interest model of CSR?

a) That it is in an organization's own best interest to put itself first rather than its ethics.

b) That it is in an organization's best interest to consider what a shareholder would want.

c) That it is in an organization's own best interest to act in an ethical way.

d) That it is in an organization's own best interest to follow the legislation and abide by the

law.

Ans: c

Q.68. What is green washing?

a) Transforming products to be more ethical.

b) Making a product appear more ethical that it really is.

c) Converting the company to green production methods.

d) Convincing customers to buy ethically.

Ans: b

Q.69. What is triple bottom line?

a) An accounting tool that looks at the impact on people, planet and profits.

b) A management strategy which states all the attention should be on profits.

c) An accounting tool that looks at cost, profit and loss.

d) A management strategy which focuses on corporate social responsibility.

Ans: a

Q.70. Why do alternative organizations run differently from conventional shareholder led

approach?

a) They do not have shareholders.

b) They are run in non-hierarchical ways which aim to provide a positive impact on society

rather than to make profit.

c) They priorities corporate social responsibility.

d) They aim to give money to charities and good causes.

Ans: b

Q.71. What does and Ethical Foundation for an organisation embody?

a) The structure, operational and conduct of the activities of the organization

b) The basic principles which govern the external and internal relations of the organization

c) Neither of the above

d) All of these

Ans: b




Q.72. What does the importance of ethical behaviour, integrity and trust call into question?

a) The extent to which managers should attempt to change the underlying beliefs and values

of individual followers

b) Who does what

c) What we do next

d) None of the above

Ans: a

Q.73. A ________ _________ sets out the purpose and general direction for the organisation?

a) Mission statement b) Purpose statement

c) Vision d) Profit statement

Ans: a

Q.74. Which of the following would most effectively act as the primary objective of a business

organisation?

a) To make a profit

b) To procure resources

c) To communicate with shareholders

d) To mediate between the organisation and the environment

Ans: a

Q.75. What is the purpose of a balanced scorecard?

a) To measure contribution of people to business growth

b) To combine a range of qualitative and quantitative indicators of performance

c) To relate business performance to customer satisfaction

d) To relate business performance to financial measures

e) All of the above

Ans: b

Q.76. Which of the following does the term Corporate Social Responsibility relate to?

a) Ethical conduct b) Environmental practice

c) Community investment d) All of the above

Ans: d

Q.77. Who are organisational stakeholders?

a) Government b) Employees

c) Customers d) All of the above

Ans: d

Q.78. What is Ethics to do with?

a) The wider community b) Business

c) Right and wrong d) Nothing

Ans: c




Q.79. Which of the following is an example of an area where business ethics apply?

a) Conduct of international operations

b) Nowhere

c) In the personal life of staff

d) None of the above

Ans: a

Q.80. Which legislation relates to the concept of business ethics?

a) Freedom of Information Act b) Food Act

c) Building regulations d) All of these

Ans: a

Q.81. The four types of social responsibility include:

a) legal, philanthropic, economic, and ethical

b) ethical, moral, social, and economic

c) philanthropic, justice, economic, and ethical

d) legal, moral, ethical, and economic

Ans: a

Q.82. The ________ dimension of social responsibility refers to a business's societal

contribution of time, money, and other resources.

a) Ethical b) Philanthropic

c) Volunteerism d) Strategic

Ans: b

Q.83. A stakeholder orientation includes all of the following activities except:

a) generating data about stakeholder groups

b) assessing the firm's effects on stakeholder groups

c) distributing stakeholder information throughout the firm

d) minimizing the influence of stakeholder information on the firm

Ans: d

Q.84. Stakeholders are considered more important to an organization when:

a) they can make use of their power on the organization

b) they do not emphasize the urgency of their issues

c) their issues are not legitimate

d) they can express themselves articulately

Ans: a




Q.85. A (n) ________ is a problem, situation, or opportunity requiring an individual, group,

or organization to choose among several actions that must be evaluated as right or

wrong.

a) Crisis b) ethical issue

c) indictment d) fraud

Ans: b

Q.86. Which moral philosophy seeks the greatest good for the greatest number of people?

a) Consequentialism b) Utilitarianism

c) Egoism d) Ethical formalism

Ans: b

Q.87. What type of justice exists if employees are being open, honest, and truthful in their

communications at work?

a) Procedural b) Distributive

c) Ethical d) Interactional

Ans: d

Q.88. A high-commitment approach to environmental issues may include all of the following

except:

a) risk analysis

b) stakeholder analysis

c) green-washing

d) strategic sustainability auditing

Ans: c

Q.89. Better access to certain markets, differentiation of products, and the sale of pollution-

control technology are ways in which better environmental performance can:

a) increase revenue b) increase costs

c) decrease revenue d) decrease costs

Ans: a

Q.90. Atmospheric issues include all of the following except:

a) acid rain b) global warming

c) air pollution d) water quantity

Ans: d

Q.91. To be successful, business ethics training programs need to:

a) focus on personal opinions of employees.

b) be limited to upper executives.

c) educate employees on formal ethical frameworks and models of ethical decision making.

d) promote the use of emotions in making tough ethical decisions.

Ans: c




Q.92. Most companies begin the process of establishing organizational ethics programs by

developing:

a) ethics training programs.

b) codes of conduct.

c) ethics enforcement mechanisms.

d) hidden agendas.

Ans: b

Q.93. For referent power to be effective, what must exist between individuals in the

relationship?

a) Antipathy b) Rivalry

c) History d) Empathy

Ans: d

Q.94. When a firm charges different prices to different groups of customers, it may be

accused of:

a) cultural relativism b) money laundering

c) facilitating payments d) price discrimination

Ans: a

Q.95. The ability to interpret and adapt successfully to different national, organizational, and

professional cultures is called:

a) national competitiveness. b) global development.

c) cultural intelligence. d) stakeholder sensitivity.

Ans: c

Q.96. Successful global initiatives addressing standards for business must begin and end with:

a) the role of corporate governance and shareholder power in corporate decision making.

b) social activism

c) the implementation of standardized ethics programs.

d) the consolidation of economic and environmental efforts.

Ans: a

Q.97. The social economy partnership philosophy emphasizes:

a) cooperation and assistance.

b) profit maximization.

c) competition.

d) restricting resources and support.

Ans: a

Q.98. Which of the following is not a driver of responsible competitiveness?

a) Policy drivers b) Development drivers

c) Business action d) Social enablers

Ans: b




Q.99. Which of the following is a problem presented by ethics audits?

a) They may be used to reallocate resources.

b) They identify practices that need improvement.

c) Selecting auditors may be difficult.

d) They may pinpoint problems with stakeholder relationships.

Ans: c

Q.100. The first step in the auditing process should be to secure the commitment of:

a) employees. b) top executives and directors.

c) stockholders. d) customers.

Ans: b

Q.101. Codes of conduct and codes of ethics

a) are formal statements that describe what an organization expects of its employees.

b) become necessary only after a company has been in legal trouble.

c) are designed for top executives and managers, not regular employees.

d) rarely become an effective component of the ethics and compliance program.

Ans: a

Q.102. Which of the following is NOT one of the primary elements of a strong organizational

compliance program?

a) A written code of conduct

b) An ethics officer

c) Significant financial expenditures

d) A formal ethics training program

Ans: c

Q.103. ______________ are standards of behaviour that groups expect of their members.

a) Codes of conduct. b) Group values.

c) Group norms. d) Organizational norms.

Ans: c

Q.104. In a ______________ organization, decision making is delegated as far down the chain

of command as possible.

a) Decentralized b) Creative

c) Flexible d) Centralized

Ans: d




Q.105. ____________ refers to a strategic process involving stakeholder assessment to create

long-term relationships with customers, while maintaining, supporting, and enhancing

the natural environment.

a) Eco-strategy

b) Green marketing

c) Superfund reauthorization

d) Recycle and reprocess management

Ans: b

Q.106. The hand-of-government refers to the

a) ability of the government to interfere in business negotiations

b) role of corporations to be profitable within the law

c) effect of national politics on business decisions

d) impact of changing government regulations

Ans: b

Q.107. An organisation's obligation to act to protect and improve society's welfare as well as

its own interests is referred to as

a) organisational social responsibility

b) organisational social responsiveness

c) corporate obligation

d) business ethics

Ans: a

Q.108. The view that business exists at society's pleasure and businesses should meet public

expectations of social responsibility is the

a) iron law of responsibility argument

b) enlightened self-interest argument

c) capacity argument

d) anti-freeloader argument

Ans: b

Q.109. Managerial ethics can be characterised by all of the following levels except

a) immoral management b) amoral management

c) demoral management d) moral management

Ans: c

Q.110. Which of the following is not one the underlying principles of the corporate

governance Combined Code of Practice?

a) Openness b) Integrity

c) Accountability d) acceptability

Ans: d




Q.111. External audit of the accounts of a limited company is required

a) because it is demanded by the company’s bankers

b) by the Companies Act 2006

c) at the discretion of the shareholders

d) to detect fraud

Ans: b

Q.112. Directors’ responsibilities are unlikely to include.

a) a fiduciary duty

b) a duty to keep proper accounting records

c) a duty to propose high dividends for shareholders

d) a duty of care

Ans: c

Q.113. A company may become insolvent if it

a) has negative working capital

b) cannot meet its budgeted level of profit

c) makes a loss

d) cannot pay creditors in full after realisation of its assets

Ans: d

Q.114. A director of a limited company may not be liable for wrongful trading if he or she

a) took every step to minimise the potential loss to creditors

b) increased the valuation of its inventories to cover any potential shortfall

c) introduced into the balance sheet an asset based on a valuation of its brands sufficient to

meet any shortfall

d) brought in some expected sales from next year into the current year

Ans: a

Q.115. Fraudulent trading may be

a) a civil offence committed by any employee

b) a criminal offence committed only by directors of a limited company

c) a civil and a criminal offence committed only by directors of a limited company

d) a civil and a criminal offence committed by any employee

Ans: d

Q.116. Disqualification of directors may result from breaches under the

a) Sale of Goods Act 1979

b) Financial Services Act 1986

c) Companies Act 2006 and Insolvency Act 1986

d) Health and Safety at Work Act 1974

Ans: c




Q.117. Directors may not be disqualified for

a) continuing to trade when the company is insolvent

b) persistent breaches of company legislation

c) paying inadequate attention to the company finances

d) being convicted of drunken driving

Ans: d

Q.118. Which of the following actions will not help directors to protect themselves from non-

compliance with their obligations and responsibilities?

a) keeping themselves fully informed about company affairs

b) ensuring that regular management accounts are prepared by the company

c) seeking professional help

d) including a disclaimer clause in their service contracts

Ans: d

Q.119. Co-ording to Cadbury (2002), corporate governance is an issue of power and:

a) Rights b) Accountability

c) Profit d) Appropriability

Ans: b

Q.120. The OECD argues that corporate governance problems arise because:

a) Ownership and control is separated

b) Managers always act in their own self interest

c) Profit maximization is the main objective of organizations

d) Stakeholders have differing levels of power

Ans: a

Q.121. The Institute of Chartered Accountants in England and Wales considers argue that

one particular stakeholder group should have primacy over all other groups. Which

stakeholder group are they referring to?

a) Customers b) Managers

c) Shareholders d) Society

Ans: c

Q.122. An organization that is owned by shareholders but managed by agents on their behalf

is conventionally known as the modern:

a) Conglomerate b) Corporation

c) Company d) Firm

Ans: b




Q.123. The modern corporation has four characteristics. These are limited liability, legal

personality, centralized management and:

a) Fiduciary duty b) Stakeholders

c) Shareholders d) Transferability

Ans: d

Q.124. What makes a corporation distinct from a partnership?

a) If the members of a corporation die, the corporation remains in existence providing it

has capital

b) If the members of a corporation die, the corporation ceases to exist

c) A corporation cannot own property

d) A corporation cannot be held responsible for the illegal acts of its employees

Ans: a

Q.125. The term 'asymmetry of information' means information in a corporation is:

a) Transferable to all stakeholders

b) Not transferable to all stakeholders

c) Not equally transparent to all stakeholders

d) Equally transparent to all stakeholders

Ans: c

Q.126. The view that sees profit maximization as the main objective is known as:

a) Shareholder theory b) Principal-agent problem

c) Stakeholder theory d) Corporation theory

Ans: c

Q.127. Where an organization takes into account the effect its strategic decisions have on

society, this is known as:

a) Corporate governance

b) Business policy

c) Business ethics

d) Corporate social responsibility

Ans: d

Q.128. Which intervention resulted from the Enron scandal?

a) The Hampel Committee

b) The Sarbannes-Oxley Act

c) The Greenbury Committee

d) The Cadbury Committee

Ans: b




Q.129. Executive pay in the UK was reviewed by:

a) The Greenbury Committee

b) The Hampel Committee

c) The Cadbury Committee

d) The Higgs Committee

Ans: a

Q.130. In Japan, some corporations operate within the philosophy of 'kyosei'. The term

'kyosei' means:

a) No man shall be richer than another man

b) All stakeholders are equal

c) Living and working for the common good

d) If the corporation is bad, society is bad

Ans: c

Q.131. When managerial self-dealings are excessive and left unchecked,

a) they can have serious negative effects on share values

b) they can impede the proper functions of capital markets.

c) they can impede such measures as GDP growth.

d) all of the above

Ans: d

Q.132. Corporate governance structure

a) varies a great deal across countries.

b) has become homogenized following the integration of capital markets.

c) has become homogenized due to cross-listing of shares of many public corporations.

d) none of the above

Ans: a

Q.133. In a public company with diffused ownership, the board of directors is entrusted with

a) monitoring the auditors and safeguarding the interests of shareholders.

b) monitoring the shareholders and safeguarding the interests of management.

c) monitoring the management and safeguarding the interests of shareholders.

d) none of the above

Ans: c

Q.134. The key weakness of the public corporation is

a) too many shareholders, which makes it difficult to make corporate decision.

b) relatively high corporate income tax rates.

c) conflicts of interest between managers and shareholders.

d) conflicts of interests between shareholders and bondholders.

Ans: c




Q.135. When company ownership is diffuse,

a) a "free rider" problem discourages shareholder activism.

b) the large number of shareholders ensures strong monitoring of managerial behavior

because with a large enough group, there's almost always someone who will to incur the

costs of monitoring management.

c) few shareholders have a strong enough incentive to incur the costs of monitoring

management.

d) both a) and c) are correct

Ans: d

Q.136. In many countries with concentrated ownership

a) the conflicts of interest between shareholders and managers are worse than in countries

with diffuse ownership of firms.

b) the conflicts of interest are greater between large controlling shareholders and small

outside shareholders than between managers and shareholders.

c) the conflicts of interest are greater between managers and shareholders than between

large controlling shareholders and small outside shareholders.

d) corporate forms of business organization with concentrated ownership are rare.

Ans: b

Q.137. In what country do the three largest shareholders control, on average, about 60

percent of the shares of a public company?

a) United States b) Canada

c) Great Britain d) Italy

Ans: d

Q.138. The public corporation

a) is jointly owned by a (potentially) large number of shareholders.

b) offers shareholders limited liability.

c) separates the ownership and control of a firm's assets.

d) all of the above

Ans: d

Q.139. Periodic ethics audits

a) Are required by the Indian stock exchange

b) A method of fostering ethics

c) A method of quantitative assessment

d) Always use external consultants

Ans: b




Q.140. Political intrusion into business

a) May be desirable in some circumstances

b) Is anathema

c) Politics should have no say in how business is conducted

d) state legislation over-rides Federal Legislation

Ans: a

Q.141. The reach of codes is

a) Restricted to those obliged to conform by virtue of membership

b) Applicable to all

c) Applicable to the public only

d) the same as the reach of the law

Ans: a

Q.142. East India Company

a) Was always a management agency for the British government

b) had a continuous trade monopoly until 1873

c) Went out of existence at the time of Indian independence

d) Largely set commercial and management practices for India

Ans: d

Q.143. Quantification in ethics may be done by

a) Putting monetary value on prospective actions

b) Comparing the value of one action with another

c) Both A and B

d) Neither A or B

Ans: c

Q.144. When communicating a code of conduct

a) Focus on values that should guide decision making

b) Provide the same code of conduct to all departments regardless of its length.

c) Refrain from changing the code of conduct regularly

d) Fewer employees will read the code if it is short

Ans: a

Q.145. The __________ approach to formal corporate ethics initiatives is proactive and

inspirational.

a) Rules b) Compliance

c) Principles d) Values

Ans: d




Q.146. The _________ approach to formal corporate ethics initiatives focuses on meeting

required behavior norms or obeying the letter of the law

a) Rules b) Compliance

c) Principles d) Values

Ans: b

Q.147. Which of the following is associated with the classical view of social responsibility?

a) economist Robert Reich

b) concern for social welfare

c) stockholder financial return

d) voluntary activities

Ans: c

Q.148. How many stages are in the model of an organization social responsibility

progression?

a) 3 b) 4

c) 5 d) 6

Ans: b

Q.149. The belief that a firm pursuit of social goals would give them too much power is

known as what argument in opposition to a firm being socially responsible?

a) Costs

b) lack of skills

c) lack of broad public support

d) too much power

Ans: d

Q.150. Social obligation is the obligation of a business to meet its _______________.

a) social and technological responsibilities

b) economic and legal responsibilities

c) technological and economic responsibilities

d) economic and social responsibilities

Ans: b

Q.151. Under the concept of social obligation, the organization ________________.

a) does what it can to meet the law, and a little bit more for stakeholders

b) fulfills its obligation to the stakeholders, which makes it fulfill the law, too

c) does the minimum required by law

d) fulfills its obligation to the law and its stakeholders

Ans: c




Q.152. Social responsiveness refers to the capacity of a firm to adapt to changing

_________________.

a) societal conditions b) organizational conditions

c) societal leaders d) organizational managers

Ans: a

Q.153. Applying social criteria to an investment decision refers to ________________.

a) socioeconomic view b) social responsiveness

c) social responsibility d) social screening

Ans: d

Q.154. Which of the following is a basic definition of ethics?

a) moral guidelines for behavior

b) rules for acknowledging the spirit of the law

c) rules or principles that define right and wrong conduct

d) principles for legal and moral development

Ans: c

Q.155. Reasoning at the ______________ level of moral development indicates that moral

values reside in maintaining the conventional order and the expectations of others.

a) Preconventional b) Conventional

c) Principled d) arrival

Ans: b

Q.156. A personality measure of person’s convictions is _______________.

a) moral development b) ego strength

c) locus of control d) social desirability

Ans: b

Q.157. Which of the following organizational structural characteristics would most likely

result in managerial ethical behavior?

a) few job descriptions

b) formal rules

c) mixed messages from authority figures

d) All of these

Ans: b

Q.158. Global organizations must __________ their ethical guidelines so that employees know

what is expected of them while working in a foreign location

a) Clarify b) Provide

c) Establish d) broaden

Ans: a




Q.159. _____________ is a document that outlines principles for doing business globally in

the areas of human rights, labor, the environment, and anticorruption.

a) A code of ethics

b) The Global Compact

c) The Foreign Corrupt Practices Act

d) Global Ethics

Ans: b

Q.160. A _____________ is a formal statement of an organization primary values and the

ethical rules it expects its employees to follow

a) mission statement b) statement of purpose

c) code of ethics d) vision statement

Ans: c

Q.161. CSR field is closely linked with that of

e) Sustainable revolution.

f) Sustainable improvement.

g) Sustainable development.

h) None of the above.

Ans: c

Q.162. CSR considers

a) Impact of the company’s actions on society.

b) Impact of company’s success.

c) Impact of company’s failure.

d) Impact of company’s wind up.

Ans: a

Q.163. CSR includes

a) Economic responsibilities.

b) Legal responsibilities.

c) Ethical responsibilities.

d) Philanthropic responsibilities

Ans: Above all

Q.164. The four types of social responsibility include:

e) legal, philanthropic, economic, and ethical

f) ethical, moral, social, and economic

g) philanthropic, justice, economic, and ethical

h) legal, moral, ethical, and economic

Ans: a




Q.165. Stakeholders are the individuals or groups that

a) Have an interest in and are affected by company’s actions.

b) Have a mere interest in an Organization.

c) Are affected by company’s actions

d) Above all.

Ans: a

Q.166. What does Milton Friedman believe to be the sole responsibility of business?

e) The only social responsibility of business is to its shareholders.

f) Managers should act in ways that balance the interest of society and shareholders.

g) The primary responsibility organizations have is to its employees.

h) The primary responsibility organizations have is to its stakeholders.

Ans: a

Q.167. Stakeholders are considered more important to an organization when:

e) they can make use of their power on the organization

f) they do not emphasize the urgency of their issues

g) their issues are not legitimate

h) they can express themselves articulately

Ans: a

Q.168. What, according to Adam Smith, is the best way to promote collective interest?

e) Through government making decisions about what is in the public interest.

f) Through everyone working together to support each other.

g) Through everyone working on their own self-interest

h) Through individuals forgoing their personal interest for the good of the collective.

Ans: c

Q.169. Why, according to stakeholder theory is it in companies' best interests to pay

attention to their stakeholders?

e) If firms only act in their own self-interest employees may feel exploited.

f) If firms only act in their own self-interest government might put more regulation

on them.

g) If firms only act in their own self-interest customers might not like the image that

the company portray.

h) If firms only act in their own self-interest and inflict harm on stakeholders then

society might withdraw its support.

Ans: d




Q.170. What is the enlightened self-interest model of CSR?

e) That it is in an organization's own best interest to put itself first rather than its

ethics.

f) That it is in an organization's best interest to consider what a shareholder would

want.

g) That it is in an organization's own best interest to act in an ethical way.

h) That it is in an organization's own best interest to follow the legislation and abide

by the law.

Ans: c

Q.171. What is green washing?

e) Transforming products to be more ethical.

f) Making a product appear more ethical that it really is.

g) Converting the company to green production methods.

h) Convincing customers to buy ethically.

Ans: b

Q.172. What is triple bottom line?

e) An accounting tool that looks at the impact on people, planet and profits.

f) A management strategy which states all the attention should be on profits.

g) An accounting tool that looks at cost, profit and loss.

h) A management strategy which focuses on corporate social responsibility.

Ans: a

Q.173. Why do alternative organizations run differently from conventional shareholder led

approach?

e) They do not have shareholders.

f) They are run in non-hierarchical ways which aim to provide a positive impact on

society rather than to make profit.

g) They priorities corporate social responsibility.

h) They aim to give money to charities and good causes.

Ans: b

Q.174. What does the importance of ethical behaviour, integrity and trust call into question?

e) The extent to which managers should attempt to change the underlying beliefs and

values of individual followers

f) Who does what

g) What we do next

h) None of the above

Ans: a




Q.175. A ________ _________ sets out the purpose and general direction for the

organization?

e) Mission statement f) Purpose statement

g) Vision h) Profit statement

Ans: a

Q.176. Which of the following would most effectively act as the primary objective of a

business organization?

e) To make a profit

f) To procure resources

g) To communicate with shareholders

h) To mediate between the organization and the environment

Ans: a

Q.177. What is the purpose of a balanced scorecard?

f) To measure contribution of people to business growth

g) To combine a range of qualitative and quantitative indicators of performance

h) To relate business performance to customer satisfaction

i) To relate business performance to financial measures

j) All of the above

Ans: b

Q.178. Which of the following does the term Corporate Social Responsibility relate to?

e) Ethical conduct f) Environmental practice

g) Community investment h) All of the above

Ans: d

Q.179. Who are organizational stakeholders?

e) Government f) Employees

g) Customers h) All of the above

Ans: d

Q.180. What is Ethics to do with?

e) The wider community

f) Business

g) Right and wrong

h) Nothing

Ans: c




Q.181. Which of the following is an example of an area where business ethics apply?

e) Conduct of international operations

f) Nowhere

g) In the personal life of staff

h) None of the above

Ans: a

Q.182. Which legislation relates to the concept of business ethics?

e) Freedom of Information Act

f) Food Act

g) Building regulations

h) All of these

Ans: a

Q.183. A stakeholder orientation includes all of the following activities except:

e) generating data about stakeholder groups

f) assessing the firm's effects on stakeholder groups

g) distributing stakeholder information throughout the firm

h) minimizing the influence of stakeholder information on the firm

Ans: d


Documents

401: Managing for Sustainability MCQs - DIMR