Business Ethics and Governance
1. Which of the following is not a driver of responsible competitiveness?
- Policy drivers
- Development drivers
- Business action
- Social enablers
Correct answer: (B)
Development drivers
2. Which of the following statements regarding institutional shareholders is correct?
- These shareholders have extensive power to monitor the activities of the company.
- Institutional shareholders prefer to exert their power privately rather than publicly.
- These shareholders often aim to improve outcomes rather than sell their shareholding.
- Institutional shareholders are known to publicly use their voting power to encourage sound corporate governance.
Correct answer: (B)
Institutional shareholders prefer to exert their power privately rather than publicly.
3. A (n) _____________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.
- Crisis
- ethical issue
- indictment
- fraud
Correct answer: (B)
ethical issue
4. A board that is elected in a classified system is known as a:
- Diversified board.
- Staggered board.
- Rotating board.
- Declassified board.
Correct answer: (A)
Diversified board.
5. A high-commitment approach to environmental issues may include all of the following except:
- risk analysis
- stakeholder analysis
- green-washing
- strategic sustainability auditing
Correct answer: (C)
green-washing