41. What is meant by the phrase CSR?
A. Corporate Social Responsibility
B. Company Social Responsibility
C. Corporate Society Responsibility
D. Company Society Responsibility
Answer
A. Corporate Social Responsibility
42. 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.
Answer
B. An action can only be judged by its consequences
43. 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.
Answer
C. Through everyone working on their own self interest
44. Why, according to stakeholder theory, is it in companies’ best interests to pay attention to theirstakeholders?
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.
Answer
D. If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
45. 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.
Answer
C. That it is in an organization’s own best interest to act in an ethical way.
46. 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.
Answer
B. Making a product appear more ethical that it really is.
47. 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.
Answer
A. An accounting tool that looks at the impact on people, planet and profits.
48. A ___ sets out the purpose and general direction for the organisation?
A. Mission statement
B. Purpose statement
C. Vision
D. Profit statement
Answer
A. Mission statement
49. Which of the following would most effectively act as the primary objective of a businessorganisation?
A. To make a profit
B. To procure resources
C. To communicate with shareholders
D. To mediate between the organisation and the environment
Answer
A. To make a profit
50. 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. All of the above
Answer
B. To combine a range of qualitative and quantitative indicators of performance
51. 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
Answer
D. All of the above
52. Who are organisational stakeholders?
A. Government
B. Employees
C. Customers
D. All of the above
Answer
D. All of the above
53. What is Ethics to do with?
A. The wider community
B. Business
C. Right and wrong
D. Nothing
Answer
C. Right and wrong
54. 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
Answer
A. Conduct of international operations
55. Which legislation relates to the concept of business ethics?
A. Freedom of Information Act
B. Food Act
C. Building regulations
D. All of these
Answer
A. Freedom of Information Act
56. 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
Answer
A. legal, philanthropic, economic, and ethical
57. The ___ dimension of social responsibility refers to a business’s societal contribution oftime, money, and other resources.
A. Ethical
B. Philanthropic
C. Volunteerism
D. Strategic
Answer
B. Philanthropic
58. 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
Answer
A. they can make use of their power on the organization
59. A ___ is a problem, situation, or opportunity requiring an individual, group, ororganization to choose among several actions that must be evaluated as right or wrong.
A. Crisis
B. ethical issue
C. indictment
D. fraud
Answer
B. ethical issue
60. Which moral philosophy seeks the greatest good for the greatest number of people?
A. Consequentialism
B. Utilitarianism
C. Egoism
D. Ethical formalism
Answer
B. Utilitarianism
61. What type of justice exists if employees are being open, honest, and truthful in theircommunications at work?
A. Procedural
B. Distributive
C. Ethical
D. Interactional
Answer
D. Interactional
62. 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
Answer
C. green-washing
63. Better access to certain markets, differentiation of products, and the sale of pollution-controltechnology are ways in which better environmental performance can:
A. increase revenue
B. increase costs
C. decrease revenue
D. decrease costs
Answer
A. increase revenue
64. Most companies begin the process of establishing organizational ethics programs bydeveloping:
A. ethics training programs.
B. codes of conduct.
C. ethics enforcement mechanisms.
D. hidden agendas.
Answer
B. codes of conduct.
65. 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
Answer
A. cultural relativism
66. The social economy partnership philosophy emphasizes:
A. cooperation and assistance.
B. profit maximization.
C. competition.
D. restricting resources and support.
Answer
A. cooperation and assistance.
67. Which of the following is not a driver of responsible competitiveness?
A. Policy drivers
B. Development drivers
C. Business action
D. Social enablers
Answer
B. Development drivers
68. 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.
Answer
C. Selecting auditors may be difficult.
69. 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.
Answer
B. top executives and directors.
70. 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.
Answer
A. are formal statements that describe what an organization expects of its employees.
71. Which of the following is NOT one of the primary elements of a strong organizationalcompliance program?
A. A written code of conduct
B. An ethics officer
C. Significant financial expenditures
D. A formal ethics training program
Answer
C. Significant financial expenditures
72. ___ are standards of behaviour that groups expect of their members.
A. Codes of conduct.
B. Group values.
C. Group norms.
D. Organizational norms.
Answer
C. Group norms.
73. In a ___ organization, decision making is delegated as far down the chain ofcommand as possible.
A. Decentralized
B. Creative
C. Flexible
D. Centralized
Answer
D. Centralized
74. Managerial ethics can be characterised by all of the following levels except
A. immoral management
B. amoral management
C. demoral management
D. moral management
Answer
C. demoral management
75. 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 2013
C. at the discretion of the shareholders
D. to detect fraud
Answer
B. by the Companies Act 2013
76. 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
Answer
C. a duty to propose high dividends for shareholders
77. 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
Answer
D. cannot pay creditors in full after realisation of its assets
78. 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
Answer
A. took every step to minimise the potential loss to creditors
79. 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
Answer
D. a civil and a criminal offence committed by any employee
80. 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
Answer
A. Ownership and control is separated
