Business Ethics 3rd Edition By Andrew – Test Bank

Type: fill-in-blank
Title: Chapter 11 – Question 01
01) _________ includes rule definitions, laws, mechanisms, processes, sanctions, and incentives.
Feedback: ‘Regulation includes rule definitions, laws, mechanisms, processes, sanctions, and incentives.’ This is part of Crane and Matten’s definition of regulation. The rest of the definition reads, ‘Regulation can be defined as rules that are issued by governmental actors and other delegated authorities to constrain, enable, or encourage particular business behaviours.’
Page reference: 494
a. Regulation

Type: multiple response question
Title: Chapter 11 – Question 02
02) In what ways is government a stakeholder of business? Please select all that apply.
Feedback: The relationship between government and business is somewhat complicated, and unpicking it requires one to differentiate between the two basic roles of government; namely as representatives of citizens’ interests and as an actor with interests of its own. In the former role, government both restricts and enables business; in the latter, it both depends on and competes with business.
Page reference: 495
*a. As a representative of citizens’ interests, government restricts business.
*b. As an actor with interests of its own, government is dependent on business.
c. As a representative of citizens’ interests, government partners with business.
*d. As an actor with interests of its own, government is in competition with business.

Type: matching question
Title: Chapter 11 – Question 03
03) Government is located between the interests of business and society. Complete the following table, which sets out the relationship in a little more detail.
Feedback: The interests of business and society are not always the same, yet government is in a mutually-dependent relationship with both society and business. The main ethical issue for government thus lies in the need to carry out its mandate from society whilst also living up to its promises to its constituents.
Page reference: 499
a. Government provides society with = Regulation that protects their interests
b. Government receives from society = Consent and tolerance
c. Government provides business with = Profitable and stable economic framework
d. Government receives from business = Taxes, jobs, investment, etc.

Type: fill-in-blank
Title: Chapter 11 – Question 04
04) One of the numerous ways in which business can influence government is for it to engage in lobbying, which Crane and Matten define as an attempt by business to influence government decision-making through ______ _______ and persuasion.
Feedback: ‘One of the numerous ways in which business can influence government is for it to engage in lobbying, which Crane and Matten define as an attempt by business to influence government decision-making through information provision and persuasion.’ Crane and Matten identify five forms of lobbying: atmosphere setting, monitoring, provision of information to policymakers, advocacy and influencing, and application of pressure.
Page reference: 503-506
a. Information provision

Type: multiple choice question
Title: Chapter 11 – Question 05
05) Which of the following do Crane and Matten not list as being a common issue in the context of privatization and deregulation?
*a. Public-private partnerships (the profit maximization of business may conflict with effective public service provision).
Feedback: This is a specific type of initiative, not a common general issue in the context of privatization and deregulation. The three issues Crane and Matten identify are around privatization profits (fair price for state assets); citizens turned consumers (provision of essential services); and natural monopolies (access and pricing for networks like railways that are natural monopolies).
Page reference: 511-513
b. Citizens turned consumers (provision of essential basic services).
Feedback: This is one of the common issues that Crane and Matten discuss. The other two issues are around privatization profits (fair price for state assets); and natural monopolies (access and pricing for networks like railways that are natural monopolies).
Page reference: 511-513
c. Privatization profits (ensuring a fair price for formerly state-owned businesses).
Feedback: This is one of the common issues that Crane and Matten discuss. The other two issues are around citizens turned consumers (provision of essential services); and natural monopolies (access and pricing for networks like railways that are natural monopolies).
Page reference: 511-513
d. Natural monopolies (access to networks that are natural monopolies, and prices for using these networks).
Feedback: This is one of the common issues that Crane and Matten discuss. The other two issues are around privatization profits (fair price for state assets); and citizens turned consumers (provision of essential services).
Page reference: 511-513

Type: matching question
Title: Chapter 11 – Question 06
06) Match the following statements about the effect of globalization on the context of business-government relations.
Feedback: Globalization is causing changes to the context of business-government interaction, and to the roles that they occupy. The transition from a Westphalian setting (government and society based on the nation-state) to a post-Westphalian setting (globalized context) manifests in a range of areas, from (e.g.) the question of who holds political power and issues around the addressee of regulation, to a reversal of the roles of governments and corporations.
Page reference: 517
a. Intensity of regulation in a national context = Decreasing intensity (e.g., deregulation, privatization) b. Intensity of regulation in a globalized context = Increasing intensity
c. Addressee of regulation in a national context = Social actors (e.g., domestic companies, citizens)
d. Addressee of regulation in a globalized context = Nation states (e.g., EU member states), private transnational actors (e.g., MNCs)

Type: multiple response question
Title: Chapter 11 – Question 07
07) Business has become a key player in the regulatory game, with a number of new forms of regulation emerging in recent years. What are the goals for those trying to introduce new types of rule-making, according to Calster and Deketelaere (2001)? Please select all that apply.
Feedback: The three goals given by Calster and Deketelaere are cost-effectiveness, faster achievement of goals, and encouragement of a proactive approach from industry.
Page reference: 523-524
*a. Cost-effectiveness (financial savings)
*b. Faster achievement of objectives (speed)
*c. Encouragement of a proactive approach from industry (integration into the regulatory process)
d. Reduce the influence of government (ideological aim of neoliberal economic theories)

Type: matching question
Title: Chapter 11 – Question 08
08) Match the regulatory outcomes at national level with the regulatory actor group involved, in the following multi-actor setting.
Feedback: Different combinations of actors will provide different regulatory outcomes at local, national and international levels. As the involvement of the different actors changes, so too does the field of regulation affecting business. This creates many more possibilities for regulatory outcomes than in the past.
Page reference: 526
a. Government = National imperative regulation (e.g. 35-hour week in France)
b. Government and business = Country-wide agreements with government (e.g. voluntary environmental agreements in place in many countries)
c. Business and CSO = Country-wide agreements with CSOs (e.g. agreements between businesses and trades unions)
d. Business, government and CSO = Country-wide multipartite agreements and projects (e.g. Covenant for Work in Germany)

Type: multiple choice question
Title: Chapter 11 – Question 09
09) Detomasi (2007) talks of ‘global public policy networks,’ in which ‘the strengths of state, market, and civil society actors combine to create an effective international governance system that overcomes the weaknesses afflicting each individually.’ What is the main instrument that is used in such networks to regulate the social, ethical, and environmental impacts of business?
a. Imperative regulation
Feedback: Nearly all large global governmental and multi-partite organizations (e.g. UN, ILO, WHO) have issued codes of conduct intended to provide some degree of rule-setting for corporations in areas beyond the control of the nation state. There is such a rapidly-expanding number of codes that it is nearly impossible to provide a complete overview of this field of regulation.
Page reference: 529-530
*b. Codes of conduct
Feedback: Nearly all large global governmental and multi-partite organizations (e.g. UN, ILO, WHO) have issued codes of conduct intended to provide some degree of rule-setting for corporations in areas beyond the control of the nation state. There is such a rapidly-expanding number of codes that it is nearly impossible to provide a complete overview of this field of regulation.
Page reference: 529-530
c. Market-based instruments
Feedback: Nearly all large global governmental and multi-partite organizations (e.g. UN, ILO, WHO) have issued codes of conduct intended to provide some degree of rule-setting for corporations in areas beyond the control of the nation state. There is such a rapidly-expanding number of codes that it is nearly impossible to provide a complete overview of this field of regulation.
Page reference: 529-530
d. Multipartite negotiated agreements
Feedback: Nearly all large global governmental and multi-partite organizations (e.g. UN, ILO, WHO) have issued codes of conduct intended to provide some degree of rule-setting for corporations in areas beyond the control of the nation state. There is such a rapidly-expanding number of codes that it is nearly impossible to provide a complete overview of this field of regulation.
Page reference: 529-530

Type: matching question
Title: Chapter 11 – Question 10
10) One of the key policy areas of sustainability has been on the issue of global climate change. Correctly complete the timeline.
Feedback: The evolution of corporate responses to governmental attempts at addressing climate change is illuminating. The development of public policies on climate change – and business reaction to it – can be seen as a good example of evolution of corporate thinking on sustainability more broadly. It also illustrates that considerable regional differences exist (e.g. US-EU).
Page reference: 535-536
a. 1992 = World Business Council on Sustainable Development lobbies against any concrete measures at global level on climate change.
b. 1996-1998 = Shell and BP leave the Global Climate Coalition in the face of European Union commitment to Kyoto and stakeholder pressure in the EU.
c. 2005 = The European Union launches its Emissions Trading Scheme. This is a market mechanism designed to achieve greenhouse gas reductions.
d. 2006-2008 = A growing number of firms conclude that measures to tackle climate change are inevitable and it is therefore prudent to be part of the process.