Companies opt to expand into foreign markets for such reasons as to
gain access to new customers, achieve lower costs and enhance the company's competitiveness, capitalize on core competencies, and spread business risk across a wider market base.
A company is said to be an international competitor (as opposed to a global competitor) when it
competes in a select few foreign markets (and perhaps has only modest ambitions to
enter additional country markets).
Which one of the following is not a factor that a company must contend with in competing in the markets of foreign countries?
A need to convince shippers to keep cross-country transportation costs low
Which one of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?
Domestic companies under pressure from lower-cost
imports are benefited when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.
The stand-out characteristic of multicountry competition is
that there is so much cross-country variation in market conditions and in the companies contending for leadership that the market contest among rivals in one country is not closely connected to the market contests in other countries—as a
consequence, there is no global or world market, just a collection of self-contained country markets.
One of the biggest strategy issues confronting a company competing in the international arena is
whether to offer a mostly standardized product worldwide or whether to customize the company's offerings in each different country market to match the preferences and requirements of local buyers
The essential difference between
multicountry competition and global competition is that
in multicountry competition the markets of different countries are not closely linked and rivals battle for "national market championships" whereas in global competition the markets of different countries are closely linked and form a world market, thus pitting rivals in a battle for the "world market championship
Which of the following statements is false
Export strategies are favored by most
participants in foreign markets because domestic plants tend to be more cost efficient than foreign plants, because using domestic plants as a production base for exporting goods to foreign markets is less risky and entails lower capital requirements, and because it is a lot easier to establish distribution capabilities in foreign markets than it is to establish production capabilities.
Which of the following is/are not "valid" strategy options for entering and/or
competing in foreign markets?
An import strategy, a strategic alliance strategy, a profit sanctuary strategy, and a cross-market subsidization strategy
A localized multicountry strategy
is one where a company varies its product offering and competitive approach from country to country in an effort to be responsive to differing buyer preferences and market conditions.
has two big drawbacks: (1) the bigger the country-to-country variations
in strategy, the harder it is difficult to transfer a company's competencies and resources across country boundaries and (2) it does not promote building a single, unified competitive advantage.
Both B and C.
As indicated in Figure 7.1, the chief difference between a "think global, act global" and a "think global, act local" approach to crafting a global strategy is that
local managers are given more latitude in adapting the global strategy
approach as may be needed to accommodate local buyer preferences and be responsive to local market and competitive conditions.
Based on the information in Figure 7.2, which of the following statements is inaccurate in characterizing the differences between a global strategy and a multicountry strategy?
With a global strategy a firm's strategic arena consists of all countries where there is high demand for the product whereas with a multicountry strategy a
firm's strategic arena is only a few selected high-demand countries and trading areas.
Which of the following is not one of the ways in which a company can pursue competitive advantage by expanding outside its domestic market and competing multinationally?
Employing a profit sanctuary strategy to facilitate cross-market subsidization and thereby outcompete rivals that have a multicountry strategy.
Multinational competitors tend to
concentrate activities in a limited number of locations when
there are significant scale economies and/or steep learning curve effects associated with performing certain activities in a single location, costs of performing the activity are lower in particular geographic locations, and certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
Dispersing the performance of value chain
activities to many different countries rather than concentrating them in a few country locations tends to be advantageous
when high transportation costs make it expensive to operate from central locations.
whenever buyer-related activities are best performed in locations close to buyers.
Both A and B.
Transferring core competencies and resource strengths from one country market to another is
a good way for companies to
develop broader or deeper competencies and competitive capabilities that can become a strong basis for sustainable competitive advantage.
A key approach for a company to grow sales and profits in several country markets is to
transfer its valuable competencies and resource strengths among these markets to aid in the development of broader competencies and capabilities.
Which of the following is not a typical option that companies
have to consider to tailor their strategy to fit the circumstances of emerging country markets?
Develop new sets of core competencies that allow a company to offer value to consumers of emerging markets in ways unmatched by rivals
Which of the following is not a viable strategy option for a local company in competing against global challengers?
Preparing to compete on the basis of price and modifying elements of the company's business model to better
defend against strong multinational competitors
The strategy options for local companies in competing against global challengers include
develop business models that exploit the shortcomings of local distribution networks and infrastructure, utilize keen understanding of local customer needs and preferences, and transferring company expertise to cross-border markets.
Which one of the following is not one of the elements of crafting
corporate strategy for a diversified company?
Standardizing the resource fits across the group of businesses the company has diversified into
Important reasons for a company to consider diversification include
a desire to avoid putting all of its "eggs" in one industry basket.
diminishing market opportunities and stagnating sales in its principal business.
opportunities to leverage existing competencies and capabilities by
expanding into businesses where these same resource strengths are key success factors and valuable competitive assets attractive.
an opportunity to lower costs by entering closely-related businesses and/or opportunity to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly-entered businesses.
All of these.
Ethical principles in business
are not
materially different from ethical principles in general and have to be judged in the context of society's standards of right and wrong, not by a special set of rules that business people decide to apply to their own conduct.
According to the school of ethical universalism,
many of the same standards of what's ethical and what's unethical resonate with peoples of most societies regardless of local traditions and cultural norms—hence, to the extent there is
common moral agreement about right and wrong actions, common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances.
Which one of the following statements falsely characterizes the managerial task of executing strategy?
Crafting strategy is a harder, more complex, and more time-consuming task than is directing and supervising the task of good strategy execution.
Management's handling of the strategy implementation/execution process can be considered successful
if and when the company meets or beats its performance targets and shows good progress in achieving its strategic vision for the company
Which of the following is not one of the principal managerial components associated with implementing and executing strategy?
Reducing the layers of management to a bare minimum and making sure
employees are empowered
The three organization-building actions paramount in the task of trying to execute a company's strategy are
staffing the organization, building core competitive and competitive capabilities, and structuring the organization and work effort.
The overriding aim in building a management team should be to
assemble a critical mass of talented managers who can function as agents of change, work well
together as a team, and produce organizational results that are dramatically better than what a few star managers acting individually can achieve.
Which one of the following statements about recruiting and retaining capable employees is false?
Recruiting and retaining capable employees is the single most important key to success in executing strategy.
Which of the following is generally not among the practices that companies use to
staff jobs with the best people they can find, particularly if intellectual capital greatly aids good strategy execution?
Hiring only people below the age of 35 who have college degrees and a grade point average of B or better
The capability-building process
requires first developing the ability to do something, however imperfectly or inefficiently; second, translating this ability into a competence and/or capability by learning to do the activity
consistently well and at an acceptable cost; and then continuing to polish and refine its know-how in an effort further improve its performance, ideally striving to match or beat rivals in performing the activity.
Building core competencies and strong organizational capabilities in performing one or more strategy-critical activities in the value chain
is an ongoing exercise because of the imperatives of keeping competencies and capabilities in step with
ongoing strategy and market changes; as a consequence, it is appropriate to view a company as a bundle of evolving competencies and capabilities
Which of the following is not one of the traits of the capability-building process?
Core competencies or capabilities can usually be built and perfected within 12 months provided a company hires capable personnel, trains them thoroughly, and rewards the people who are involved in the capability-building effort with
attractive compensation incentives.
Employee training and retraining
merit high-priority on management's strategy-implementing agenda when a firm revises its strategy in ways that call for new skills or different know-how, operating methods, and competitive capabilities and also become a key activity in businesses where technical know-how is changing so rapidly that a company loses its ability to compete unless its skilled people have cutting-edge knowledge
When it is difficult or impossible to out-strategize rivals (beat them with a superior strategy), the other main avenue to competitive advantage is to
outexecute them (beat them by performing certain value chain activities in superior fashion).
Which one of the following is not part of organizing the work effort in ways that promote successful strategy execution?
Forming a special department or work unit to lead the company's
effort to capture strategic and resource fits
Outsourcing activities not critical to effective strategy execution
can have the disadvantage of "hollowing out" a company, leaving it without some of the skills and capabilities needed to be a master of its own destiny
can act to decrease internal bureaucracies, flatten the organizational structure, and add to a company's arsenal of capabilities, plus it makes strategic sense whenever outsiders can
perform them at lower cost and/or with higher value-added than the buyer company can perform them internally.
Both A and C
The rationale for making strategy-critical value chain activities the primary building blocks in a company's organizational scheme is based on
the thesis that if activities crucial to strategic success are to have the resources, decision-making influence, and organizational impact they need, they have to be centerpieces in
the organizational scheme.
One of the big weaknesses of traditional functional organization structures is
that pieces of strategically relevant activities and capabilities often end up scattered across many departments—remedying this deficiency often entails reengineering the work effort and pulling the people who performed the pieces in functional departments into a group that works together to perform the whole process, thus creating process departments.
Which one of the following falsely describes a centralized approach to decision-making?
Hierarchical command-and-control structures speed an organization's responses to changing conditions because top-level managers are in a position to quickly review the situation and make a final decision.
The basic tenets of a decentralized organizational structure include the thesis that
a company that draws on the combined intellectual
capital of all its people can outperform a command-and-control company.
decision-making authority should be put in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise good judgment.
Both A and C.
One of the big challenges of organizing and managing a work environment where employees are empowered to make decisions in their area of responsibility is
how to exercise control
over the actions and decisions of empowered employees so that the business is not put at risk while trying to capture the benefits of employee empowerment.
Which of the following runs counter to the organizational trends in today's companies?
Growing use of vertical integration and centralized decision-making to speed responses to changing market conditions and accelerate the building of core competencies and competitive capabilities
Which one of the following is not a valid strategy-related reason why managers need to be deeply involved in the budgeting and resource allocation process?
Without budget reallocations it is hard, if not impractical, to match organization structure to the chosen strategy; moreover, aggressive resource reallocation is a prerequisite to creating needed core competencies and organizational capabilities.
From a strategy-implementing/strategy-executing
perspective,
be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively
Prescribing policies and operating procedures aid the task of implementing strategy by
by helping align the actions and behavior company personnel with the requirements for good strategy execution, placing limits on independent action, helping overcome resistance to change, helping
enforce consistency in how things are done in scattered geographic units, and promoting the creation of a work climate that facilitates good strategy execution.
Which one of the following is false when it comes to designing strategy-facilitating policies and operating procedures?
More policies/procedures work better than few policies/procedures and strict enforcement of a weak policy always beats lax enforcement of a good policy.
A
"best practice"
is a way of performing an activity that at least one company has proved works particularly well.
Using benchmarking and best practices as a means of achieving operating excellence
is a four-step process that entails (1) benchmarking how well a company performs specific tasks and activities against best-in-industry or best-in-world performers, (2) adapting the various best practices to fit the company's situation and then implementing
them, (3) continuing to benchmark company performance of activities against best-in-industry or best-in-world performers, and (4) continuing to improve and refine the company's performance of its activities and thereby move closer to operating excellence
Which of the following is not a tool that managers can use to promote operating excellence and further the cause of good strategy execution?
Operating and support systems analysis
Business process reengineering is a tool for
pulling the pieces of strategy-critical activities out of different departments and unifying their performance in a single department or cross-functional work group that has charge over the whole process and can be held accountable for performing the activity in a better, cheaper, and/or more strategy-supportive fashion.
Total quality management (TQM)
is a philosophy of managing a set of business practices
that emphasizes continuous improvement in all phases of operations, 100% accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction.
Which one of the following statements about total quality management (TQM) is false?
TQM produces significant results very quickly—very little benefit emerges after the first six months.
Six Sigma quality
control
is based on three principles: (1) all work is a statistically controllable process; (2) no well-controlled process allows variability; and (3) defect-free work requires tight statistical controls.
Six Sigma's DMAIC process is a particularly good vehicle for
improving performance when there are wide variations in how well an existing activity is performed.
Building a total quality culture and realizing full value from
TQM or Six Sigma initiatives does not entail which one of the following?
Building a distinctive competence in quality control, especially as it applies to manufacturing/assembly and customer service
The use of state-of-the-art information and operating systems
not only enable better strategy execution but also strengthen organizational capabilities (perhaps enough to provide a competitive edge over rivals).
From a
strategy-implementing/strategy-executing perspective, which one of the following is not a benefit of installing well conceived state-of-the-art information and operating systems?
Enabling companies to wisely set stretch objectives and then to tie incentives and rewards to the achievement of these objectives
Management's most powerful tool for mobilizing employee commitment to competent strategy execution and operating excellence is
a properly designed
reward structure.
A well-designed reward system
makes strategically relevant measures of performance the dominant basis for incentive compensation.
Enlisting employees' sustained and energetic commitment to good strategy execution and achievement of the targeted strategic and financial objectives is best done by
making sure that individuals' rewards are tightly linked to achieving the desired results (meeting or beating
performance targets).
Which of the following motivational practices is least likely to be effective in spurring stronger employee commitment to good strategy execution?
Creating a no-pressure/no-adverse-consequences work environment where employees have a high degree of job security
Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?
Keeping
performance incentives and bonuses to less than 15% of total compensation
Which one of the following is not something that shapes and helps define a company's culture?
The strategy and business model that the company has adopted
Which one of the following is not something to look for in identifying a company's culture?
The company's track record in meeting or beating its financial and strategic performance targets
Once a company's culture becomes ingrained, then the culture can be perpetuated by
carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture; systematic indoctrination of new members in the culture's fundamentals; frequent reiteration of core values by senior managers and group members; and regular ceremonies honoring members who display desired cultural behaviors.
Companies
with multinational operations or that have recently made new acquisitions typically have
multiple cultures or subcultures.
The characteristics of a strong culture company include all but which one of the following?
Top executives with high ethical standards and personal integrity
Which of the following statements about a strong-culture company is false?
Decisive leadership on the part of top executives, an
industry-leading market share, and strict enforcement of long-standing company policies are all important traits of a strong culture company
The characteristics of a weak company culture include
a lack of values and principles that are consistently preached or widely shared, little co-worker peer pressure to do things in particular ways, and no strong employee allegiance to what the company stands for or to operating the business in well-defined ways.
Which of the following is not one of the four types of unhealthy company cultures?
Bureaucratic cultures
Companies with insular, inwardly-focused cultures
tend to resist recruiting people who can offer fresh thinking and outside perspectives and typically refrain from looking outside the company for best practices, new managerial approaches, and innovative ideas.
The hallmarks of a high performance
corporate culture include
a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.
Adaptive cultures are characterized by such traits as
willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies—company personnel share a feeling of
confidence that the organization can deal with whatever threats and opportunities come down the pike; they are receptive to risk taking, experimentation, innovation, and changing strategies and practices.
orchestrating organizational changes in a manner that (1) demonstrates genuine care for the well-being of all key constituencies (customers, employees, shareowners, suppliers, and the communities where the company operates) and (2) tries to satisfy all their legitimate interests
simultaneously.
a proactive approach to identifying issues, evaluating the implications and options, and quickly moving ahead with workable solutions.
a willingness to change operating practices and behaviors to adapt to new market and competitive conditions so long as the changes do not compromise core values and long-standing business principles
All of these.
A work environment where the culture is well-matched to the conditions and
behaviors requisite for good strategy execution
is a powerful ally in managerial efforts to execute the chosen strategy because it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressures from co-workers to conform to culturally acceptable norms—as a consequence, culturally-approved behavior thrives and culturally-disapproved behavior gets squashed and even penalized
A tight
culture-strategy match-up furthers a company's strategy execution effort in all but which one of the following ways?
A tight strategy-culture alignment produces a high-performing, adaptive work environment conducive to fast achievement of stretch performance targets.
Which one of the following is not accurate as concerns changing a company's culture and aligning it with the requirements for strategic success?
Changing a company's culture and trying to
align it with the requirements for strategic success generally requires instituting a new values statement, adopting most of the traits of an adaptive culture, and retraining managers in the ways and means of convincing employees to adopt new behaviors.
Which one of the following is not a substantive culture-changing action that a company's managers can undertake to alter a problem culture?
Managements commitment to lead by example and attend company events to
praise good deeds and expound on the merits of the new culture
A company's culture is typically grounded in and shaped by
its dedication to displaying certain core values and the bar it sets for ethical standards
Based on Table 12.1, which of the following topics would least likely be a topic or element of a company's statement of its core values?
Prohibiting giving or accepting bribes, kickbacks, or gifts
Establishing a workable strategy-cultural fit in multinational and global companies
can be accomplished by grounding the company's strategy in values and operating practices that travel well across country borders and that strike a chord with managers and workers in many different areas of the world, despite varying local customs and traditions.
Which of the following is not one of the leadership roles that senior managers have to play in pushing
for good strategy execution and operating excellence?
Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed
The task of top executives in making corrective adjustments includes
deciding when adjustments are needed and what adjustments to make.
To judge whether a particular diversification move has good
potential for building added shareholder value, the move should pass the following tests:
the attractiveness test, the cost-of-entry test, and the better-off test.
The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves
evaluating whether the diversification move will produce a 1 + 1 = 3 outcome such that the company's different businesses perform better together than
apart and the whole ends up being greater than the sum of the parts.
Which of the following is not accurate as concerns entering a new business via acquisition, internal start-up, or a joint venture?
Acquisition is generally the most profitable way to enter a new industry, tends to be more suitable for an unrelated diversification strategy than a related diversification strategy, and usually requires less capital than entering an industry via internal
start-up.
The defining characteristic of related diversification (as opposed to unrelated diversification) is
the presence of cross-business value chain relationships and strategic fits.
The strategic appeal of related diversification is that
it allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or
cross-business collaboration in creating stronger competitive capabilities.
Which of the following is the best example of related diversification?
A producer of snow skis and ski boots acquiring a maker of ski apparel and accessories (outerwear, goggles, gloves and mittens, helmets and toboggans)
Economies of scope
stem from cost-saving strategic fits along the value chains of related businesses.
Cross-business strategic fits can exist
in the R&D and technology portion of the value chains of related businesses.
in the supply-chain portion of the value chains of related businesses.
in the manufacturing or production portions of the value chains of related businesses.
in the sales and marketing portion of the value chains of related businesses.
All of the above—since cross-business strategic fits can exist anywhere along the values chains of
related businesses.
The defining characteristic of unrelated diversification (as opposed to related diversification) is
that the value chains of different businesses are so dissimilar that no competitively valuable cross-business relationships are present (in other words, the value chains of a company's businesses offer no opportunities to benefit from skills or technology transfer across businesses, economies of scope, cross-business use of a powerful
brand name, and/or cross-business collaboration in creating stronger competitive capabilities).
Which one of the following is not part of the task of critiquing a diversified company's strategy, assessing its business makeup, and deciding how to improve overall company performance?
Checking whether each business a company has diversified into can pass the profitability test, the capital gains test, the growth rate test, and the resource strength test
Calculating quantitative attractiveness ratings for the industries a company has diversified into involves
selecting a set of industry attractiveness measures, weighting the importance of each measure (with the sum of the weights adding to 1.0), rating each industry on each attractiveness measure, multiplying the industry ratings by the assigned weight to obtain a weighted rating, adding the weighted ratings for each industry to obtain an overall industry
attractiveness score, and using the overall industry attractiveness scores to evaluate the attractiveness of all the industries, both individually and as a group.
The basic purpose of calculating competitive strength scores for each of a diversified company's business units is to
assess how strongly positioned each business unit is in its industry and the extent to which it already is or can become a strong market contender.
The
9-cell industry attractiveness-competitive strength matrix
uses quantitative measures of industry attractiveness and competitive strength to plot each business's location on the matrix—the thesis underlying the matrix is that there are good reasons to concentrate the company's resources on those businesses having relatively strong competitive positions in industries with relatively high attractiveness and to invest minimally or even divest those businesses with relatively weak
competitive positions in industries with relatively low attractiveness.
Checking a diversified company's business line-up for the competitive advantage potential of cross-business strategic fits involves searching for and evaluating how much benefit a diversified company can gain from value chain match-ups that present
opportunities to combine the performance of certain activities, thereby reducing costs and capturing economies of scope.
opportunities to transfer skills, technology, or intellectual capital from one business to another, thereby leveraging use of existing resources.
opportunities to share use of a well-respected brand name.
opportunities for sister businesses to collaborate in creating valuable new competitive capabilities (such as enhanced supply chain management capabilities, quicker first-to-market capabilities, or greater product innovation capabilities).
All of the above.
Checking a diversified company's business lineup for resource fit does not involve which one of the following "tests?"
Determining whether the company has enough cash hog businesses to supply capital to its cash cow businesses.
Ranking a diversified company's businesses in terms of priority for resource allocation and new capital investment
should be done principally on the basis of which businesses offer the best prospects
(given their industry attractiveness and competitive strength) and, also, have solid and appealing strategic fits and resource fits.
Once a firm has diversified and established itself in several different businesses, then its main strategic alternatives include all but which one of the following?
Shifting from a multi-country to a global strategy
A multinational diversification strategy can be particularly attractive to a
diversified company because it allows the company to pursue maximum competitive advantage potential via actions to
fully capture economies of scale and cross-business economy of scope opportunities.
capitalize on opportunities for both cross-business and cross-country collaboration and coordination.
leverage use of a well-known and competitively powerful brand name.
transfer competitively valuable resources both from one business to another and from one
country to another.
All of these.
The thesis that since different societies and cultures have divergent values and standards of what is "ethically right" and "ethically wrong" it is appropriate to judge behavior as ethical/unethical in the light of local customs and social mores
is a view that characterizes the school of ethical relativism.
If one adopts the thinking of the school of ethical relativism, then
there are multiple sets of ethical standards because what is ethical or unethical depends on local customs and social mores and can vary from one culture or nation to another.
Paying bribes and kickbacks to expedite winning orders from customers or to facilitate business transactions
is a thorny ethical issue for multinational companies because in some countries such payments are considered unethical whereas in other countries the payment of bribes and
kickbacks is very much in accord with local customs and social mores (which makes such payments "ethically acceptable" according to the school of ethical relativism).
According to integrated social contracts theory,
the ethical standards a company should try to uphold are governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the
circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not—however, universal ethical norms take precedence over local ethical norms.
Unintentionally amoral managers
end up sometimes violating ethical principles merely because they are simply casual about, careless about, or inattentive to the fact that certain kinds of business decisions or company activities are
unsavory or may have deleterious effects on others—in short, they go about their jobs as best they can without giving serious thought to the ethical dimension of decisions and business actions.
According to the information presented in Table 9.1, the perceived degree of governmental corruption is
is lowest in Finland, New Zealand, Denmark, Singapore, and Sweden.
Unethical managerial behavior tends to be driven by such factors as
overzealous or obsessive pursuit of personal gain, wealth, and other selfish interests; a company culture that puts the profitability and good business performance ahead of ethical behavior; and heavy pressures on company managers to meet or beat performance targets.
A company's strategy needs to be ethical because
emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide
ranging.
The underlying belief of the "unconcerned or non-issue" approach to dealing with or managing ethics-related issues and ethics conduct is that
the business of business is business not ethics.
According to the chapter discussion and the summary in Table 9.2, the underlying belief of the "damage control" approach to dealing with or managing ethics-related issues and ethics conduct is that
a company needs to make only a
token gesture in the direction of having acceptable ethical standards (usually adopting a code of ethics and instituting very light enforcement is sufficient); the primary objective is to protect the company against any fallout from unethical strategies and behavior.
Which one of the following is not a key trait of the ethical culture approach to managing ethical conduct?
The ethical culture approach is especially well-suited for companies that favor a light
approach to ethics compliance.
Which of the following is not an action typically taken by companies that adopt a compliance approach to managing ethical conduct or that are serious about company employees observing high ethical standards?
Requiring all job applicants to sign a form stating that they will faithfully observe the company's ethical standards, subject to immediate dismissal if they are found guilty of any ethical violations or ethical misconduct
The notion of social responsibility as it applies to businesses concerns
a company's duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.
Which of the following is not something a company should normally consider in crafting a social responsibility
strategy?
Actions to raise worker wages and salaries and/or provide attractive incentive compensation for good performance
An environmental sustainability strategy consists of a company's deliberate actions to
meet the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future
generations, and guards against ultimate endangerment of the planet.
Which one of the following is not part of the moral case for why a company should actively promote the betterment of society?
A corporation's highest priority is to satisfy the unmet needs of society.
Which one of the following is not a part of the business case for why companies should act in a socially responsible manner?
Every business has a moral duty
to promote the general welfare of society.
