QUESTION 1

1. A company's CSR and sustainability strategies is NOT characterized by

the company's demonstration of an adequate degree of social responsibility or efforts
to be a model corporate citizen unless it spends 5 percent (or more) of pretax profits
on social responsibility initiatives.
corporate social agendas that address generic social issues that may help boost a
company's reputation but are unlikely to improve its competitive strength in the
marketplace.
cost savings and improved profitability that can be drivers of corporate sustainability
strategies.
social responsibility strategies linked to a company's customer value proposition or key
value chain activities that may help build competitive advantage.
the strategies and actions of all socially responsible companies that have sameness in
the sense of drawing on the same categories of socially responsible behavior, with each
company's version of being socially responsible being unique.

1 points
QUESTION 2
1. Common moral agreement about right and wrong actions and behaviors across multiple
cultures and countries, also known as ethical universalism, gives rise to
principles that set forth the traits and behaviors considered virtuous, that is, which a
good person is supposed to believe in and display.
principles embodied in international law that all societies and countries are obliged to
practice.
principles of right and wrong in judging the ethical correctness of business behavior.
standards of what's ethical and what's unethical, applicable to all businesses in all
countries, irrespective of local business traditions and local business norms.
standards of what constitutes ethical and unethical behavior in business situations that
are partly universal, but in the main are governed by local business norms.

1 points
QUESTION 3

1. Triple-bottom-line (TBL) reporting is emerging as an important way for companies to

conceal their initiatives and accomplishments in the areas of diversity, environment,
community, and ethics to increase profitability.
make the results of their CSR strategies apparent to stakeholders and for stakeholders
to hold companies accountable for their impact on society.
minimize transparency and facilitate benchmarking CSR efforts across firms and
industries.
minimize the use of standard reporting frameworks and metrics.
attract profit-oriented investors.

1 points
QUESTION 4
1. A manufacturer and marketer of prescription pharmaceuticals decided to raise the price of
its anti-malaria drug from $15.00 per dose to $750.00 per dose, a price increase of 5,000
percent. Following a public outcry, the CEO was forced to resign, the company was forced to
retract the price hike, and the company's stock price sharply declined. Which of the following
has the company incurred?
only visible and internal administrative costs
visible but not intangible costs
internal administrative costs but not intangible costs
internal administrative costs but not visible costs
visible and intangible costs

1 points
QUESTION 5
1. According to integrated social contracts theory, the ethical standards a company should try
to uphold
are governed by the school of ethical universalism.
are governed both by a limited number of universal ethical principles and the
circumstances of local cultures, traditions, and shared values.
are governed by each country's Code of Required Ethical Conduct, which sets forth that
each individual/group/business/organization has a "social contract" to observe the
ethical and moral standards that the country has adopted.
should be determined by the company's moral managers.
should be absolute and avoid wiggle room according to the circumstances of the
situation.

1 points
QUESTION 6
1. When a company's social responsibility initiatives become part of the way it operates its
business every day, these initiatives are
likely to be fully effective in creating a competitive advantage.
normally based on a corporate social agenda.
ambiguous and rarely make a difference in the way the company does business.
implausible to advance a positive, high-energy workplace environment.
heavily dependent on encouraging employee morality.

1 points
QUESTION 7
1. What is a faulty or invalid reason why a company's strategy should be ethical?
An unethical strategy reflects badly on the character of the company personnel
involved.
 Senior executives fear public embarrassment and disciplinary action if caught doing
something perceived as unethical.
An ethical strategy is in the self-interest of shareholders, partly because an unethical
strategy can damage a company's reputation and partly because unethical behavior
can be very costly in terms of fines and penalties.
Customers shun companies known for their shady behavior and ethically upstanding
company personnel are repulsed by a work environment where unethical behavior is
condoned.
A strategy that is unethical in whole or in part is morally wrong.

1 points
QUESTION 8
1. The business case behind why companies should act in a socially responsible manner does
NOT include
increased buyer patronage
internal benefits such as improved workforce retention and operational efficiency
aggressive pursuit of market share, revenues, and profits
reduced risk of reputation-damaging incidents
shareholder benefits such as increased stock price and financial performance

1 points
QUESTION 9
1. According to the school of ethical universalism
concepts of what constitute ethical behavior and unethical behavior are dictated by
subjectively provable moral principles but not by objectively provable moral principles.
concepts of right and wrong are universal within countries/societies but not across
countries or cultures.
concepts of what is ethical and what is unethical are socially determined, leaving room
for variation 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 and all individuals can be held accountable.
all societies and countries are obligated to apply universally defined ethical principles
of right and wrong as set forth by a global body that formulates the Code of Ethical
Behavior for the world.

1 points
QUESTION 10
1. According to the ethical relativism school of thinking,
there can be no one-size-fits-all template (set of authentic ethical norms) against which
to gauge the conduct of company personnel, due to cross-cultural differences in ethical
standards.
a company should have a different set of ethical standards for each country in which it
operates.
only respected religious experts can provide companies with a higher order moral
compass.
the best source of ethical standards in each country where the company operates is
that country's adopted Code of Required Ethical Conduct.
since there can be no one-size-fits-all set of authentic ethical norms, it is appropriate
for each company to hold company personnel to observing the company's code of
ethical conduct.