MAN4701 Final Exam

Part One: Business in Society

1. Q: Who are considered a corporation's stakeholders?
   A: Individuals or groups that affect or are affected by a corporation's actions, such as employees, customers, suppliers, shareholders, and the community.

2. Q: What is stakeholder analysis?
   A: The process of identifying relevant stakeholders and analyzing their interests and power.

3. Q: What are public issues in management?
   A: Issues that are of mutual concern to an organization and one or more of its stakeholders.

4. Q: What is environmental analysis?
   A: A method managers use to gather information about external issues and trends to develop an organizational strategy.

5. Q: What is corporate social responsibility (CSR)?
   A: The idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of their actions that affect people, their communities, and their environment.

6. Q: What is global corporate citizenship?
   A: Refers to putting an organization's commitment to social and environmental responsibility into practice worldwide.

7. Q: What are the drivers of globalization?
   A: Technological innovation, transportation systems, rise of major transnational corporations, social and political reforms.

8. Q: What are the benefits of globalization?
   A: Increases economic productivity, reduces prices for consumers, gives developing countries access to foreign investment funds, transfers technology, and spreads democracy and freedom.

9. Q: What are the costs of globalization?
   A: Causes job insecurity, weakens environmental and labor standards, erodes national cultures, and is compatible with despotism.

Part Two: Business and Ethics

10. Q: What is ethics?
    A: A conception of right and wrong conduct, serving as a guide to moral behavior.

11. Q: What is ethical relativism?
    A: The belief that ethical principles should be defined by various periods in time in history, a society's traditions, the special circumstances of the moment, or personal opinion.

12. Q: What is the purpose of a code of ethics?
    A: To provide guidance to managers and employees on what to do when faced with an ethical dilemma.

13. Q: What is the role of ethics training programs?
    A: To help employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior.

14. Q: What is the function of an ethics audit?
    A: To assess the effectiveness of ethical safeguards by documenting evidence of increased ethical employee behavior.

15. Q: What is the role of ethics reporting mechanisms?
    A: To provide employees and other corporate stakeholders a means to report suspected unethical behaviors.

Part Three: Business and Public Policy

16. Q: What is public policy?
    A: A plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation's citizens.

17. Q: What are economic policies?
    A: Policies that concern the economy, such as fiscal policy (government spending and taxation) and monetary policy (supply and demand of money).

18. Q: What are social assistance policies?
    A: Policies that concern social services for citizens, such as health care and education.

19. Q: What is regulation?
    A: The action of government to establish rules of conduct for citizens and organizations.

20. Q: What are the reasons for regulation?
    A: Market failure, negative externalities, natural monopolies, and ethical arguments.

21. Q: What is deregulation?
    A: The removal or scaling down of regulatory authority and regulatory activities of government.

22. Q: What is reregulation?
    A: The increase or expansion of government regulation, especially in areas where the regulatory activities had previously been reduced.

23. Q: What is the role of lobbying?
    A: To influence government policymakers' decisions on behalf of individuals, groups, or organizations.

24. Q: What are Political Action Committees (PACs)?
    A: Organizations that solicit contributions from members or employees and make contributions to political candidates.

25. Q: What is soft money?
    A: Unlimited contributions to the national political parties by individuals or organizations for party-building activities.

Part Four: Business and the Natural Environment

26. Q: What is sustainable development?
    A: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

27. Q: What are the major threats to the Earth's ecosystem?
    A: Water resources, fossil fuels, arable land, and biodiversity.

28. Q: What is global warming?
    A: The gradual warming of the Earth's climate, believed to be caused by an increase in carbon dioxide and other trace gases in the atmosphere.

29. Q: What is the role of business in environmental protection?
    A: To minimize pollution and resource depletion, and to develop environmentally sustainable products and services.

30. Q: What is environmental justice?
    A: The effort to prevent inequitable exposure to risk, such as from hazardous waste, in disadvantaged communities.

31. Q: What is the role of environmental standards?
    A: To establish acceptable levels of pollution and to enforce regulations to ensure compliance.

32. Q: What is cap-and-trade?
    A: A system that allows businesses to buy and sell permits for emissions, providing economic incentives for reducing pollution.

33. Q: What is the role of environmental management systems?
    A: To integrate environmental considerations into business operations and decision-making.

34. Q: What is the triple bottom line?
    A: A business strategy that includes social, environmental, and financial performance measures.

Part Five: Business and Technology

35. Q: What is technology?
    A: The practical applications of science and knowledge to commercial and organizational activities.

36. Q: What is the digital divide?
    A: The gap between those who have access to technology and those who do not.

37. Q: What is e-business?
    A: Electronic business exchanges between businesses and between businesses and their customers via the Internet.

38. Q: What is m-commerce?
    A: Commerce conducted via mobile or cell phones, allowing consumers to use their mobile phones as an electronic wallet.

39. Q: What is phishing?
    A: The practice of stealing consumers' personal identity data and financial account credentials by using fake emails.

40. Q: What is the role of intellectual property?
    A: To protect the creations of the mind, such as inventions, literary and artistic works, and symbols, names, and images used in commerce.

41. Q: What is the role of intellectual property?
    A: To protect the creations of the mind, such as inventions, literary and artistic works, and symbols, names, and images used in commerce. Intellectual property laws incentivize innovation by granting creators exclusive rights to their work.

Part Five: Business and Technology (continued)

42. Q: What are cybersecurity risks?
    A: Threats to data and systems, including hacking, phishing, and ransomware attacks.

43. Q: What is artificial intelligence (AI)?
    A: Computer systems that simulate human intelligence to perform tasks such as learning, reasoning, and problem-solving.

44. Q: What are the ethical challenges of AI?
    A: Bias in algorithms, loss of jobs due to automation, and privacy concerns.

45. Q: What is biotechnology?
    A: The use of biological processes, organisms, or systems to develop new products and technologies.

46. Q: How can businesses address the digital divide?
    A: By investing in infrastructure, providing affordable access, and training for digital literacy.

Part Six: Business and Society Relationships

47. Q: What is the shareholder theory of the firm?
    A: The idea that a firm's primary responsibility is to its shareholders.

48. Q: What is the stakeholder theory of the firm?
    A: The belief that corporations should consider the interests of all stakeholders in their decision-making.

49. Q: What are primary stakeholders?
    A: Groups or individuals directly affected by a firm's activities, such as employees, customers, and shareholders.

50. Q: What are secondary stakeholders?
    A: Groups or individuals indirectly affected by a firm's activities, such as the media and trade associations.

51. Q: What is the role of business in society?
    A: To create value for stakeholders, drive economic development, and contribute to social and environmental well-being.

Part Seven: The Public and Ethical Responsibilities of Business

52. Q: What is corporate philanthropy?
    A: Voluntary actions by companies to contribute to societal good, such as donations to charities.

53. Q: What is cause-related marketing?
    A: Aligning a brand with a cause to market a product while benefiting the cause.

54. Q: What is social entrepreneurship?
    A: The pursuit of innovative solutions to social problems through business-like strategies.

55. Q: What is the role of NGOs in holding businesses accountable?
    A: To advocate for ethical practices and monitor corporate behavior.

56. Q: What is greenwashing?
    A: Misleading claims about the environmental benefits of a product or practice.

57. Q: What is the difference between compliance-based and integrity-based ethics programs?
    A: Compliance-based programs focus on following rules, while integrity-based programs emphasize ethical values.

58. Q: What is the role of transparency in ethical business practices?
    A: To build trust with stakeholders by openly sharing information about policies and actions.

59. Q: What are business ethics audits?
    A: Evaluations of a company’s ethical practices and policies.

Part Eight: Managing Sustainable Operations

60. Q: What is life cycle analysis?
    A: A method for assessing the environmental impacts of a product from its creation to disposal.

61. Q: What are circular economy principles?
    A: Designing products and systems to eliminate waste by reusing and recycling materials.

62. Q: How can businesses reduce their carbon footprint?
    A: By improving energy efficiency, using renewable energy, and offsetting emissions.

63. Q: What is sustainable supply chain management?
    A: Integrating environmental and social considerations into supply chain processes.

64. Q: What is the precautionary principle?
    A: Taking preventive action in the face of uncertainty to avoid harm to health or the environment.

65. Q: What are renewable energy sources?
    A: Energy sources that are replenished naturally, such as solar, wind, and hydropower.

66. Q: What is industrial ecology?
    A: The study of material and energy flows through industrial systems to reduce waste.

67. Q: What are environmental performance indicators (EPIs)?
    A: Metrics used to measure an organization's environmental impact.

Part Nine: Global Business and Society

68. Q: What is corporate global citizenship?
    A: A company’s responsibility to operate in ways that enhance societal and environmental welfare globally.

69. Q: What is the role of international trade organizations?
    A: To facilitate global commerce, resolve disputes, and promote economic cooperation.

70. Q: What are human rights challenges in global business?
    A: Addressing issues like child labor, forced labor, and fair wages in supply chains.

71. Q: What is the United Nations Global Compact?
    A: A voluntary initiative encouraging businesses to adopt sustainable and socially responsible policies.

72. Q: What is the importance of cultural competence in global business?
    A: Understanding and respecting cultural differences to build effective international partnerships.

73. Q: What is the triple bottom line in global business?
    A: A framework measuring a company’s success based on social, environmental, and financial performance.