Chapter 3: Stakeholders and Corporate Social Responsibility
1. Fair trade can be defined as:
a. Trade between two countries of similar size
b. Trade between two countries of similar wealth
c. Farmers receiving a fair wage for their work
d. Farmers receiving a fair exchange for their goods
2. In 2006, which fast food chain distributed Fair Trade products?
a. McDonalds
b. Burger King
c. Wendy’s
d. Subway
3. Why is the case scenario titled “When Is Fair Trade Not Fair?”
a. because the farmers are not getting fair access to their land
b. because the farmers are not getting the right equipment to farm the land
c. because the farmers may not be getting all the benefits of a fair wage
d. because the farmers are not allowed to negotiate the price of the crops
4. A stakeholder can be defined as:
a. an individual who is part of a group whose support is necessary for the firm to survive
b. an individual who has a financial interest in the firm
c. an individual who has a financial or legal claim to money generated by the firm
d. an individual who analyzes the financial performance of the firm.
5. Milton Friedman would rate which traditional stakeholder as the most important to the firm?
a. stockholders
b. the government
c. local community
d. employees
6. In the Johnson & Johnson credo, who is the company’s first responsibility?
a. stockholders
b. government
c. customers
d. employees
7. In the Johnson & Johnson credo, who is the company’s final responsibility?
a. stockholders
b. government
c. customers
d. employees
8. Based on previous research, what type of employee is more likely to engage in unethical
behavior
a. uninterested
b. unmotivated
c. dissatisfied
d. unhappy
9. Which of the following is not an action a firm should have in place to help protect against
retaliation if an employee files a sexual discrimination lawsuit?
a. review management training programs
b. establish strong consequences if another employee retaliates
c. keeping the name of the employee filing the lawsuit anonymous as long as possible
d. move the employee filing the lawsuit to another job position
10. The Americans with Disabilities Act example in the textbook referred to which firm?
a. General Electric
b. Merrill Lynch
c. Wal-Mart
d. Exxon
11. Which of the following was not a company that used an electronics industry code of ethics
to validate their level of corporate social responsibility?
a. Apple
b. Hewlett-Packard
c. Dell Computer
d. IBM
12. A function or task that was previously done within a company to an external third party is
called:
a. External Transfer
b Third party allocation
c. Outsourcing
d. Task Re-direction
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