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The social environment - self-test

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1

Ethical behaviour

What effect might acting in an ethical way have on a business?

a)
b)
c)
d)
Yes, that's correct. Well done. An increasing number of firms like to do business with others who behave in an acceptable ethical way.No, that's not right. The correct answer is A as increasing numbers of firms like to do business with others who behave in an acceptable ethical way. B might actually improve as other countries and their citizens appreciate the way you do business. Both C and D are less likely to happen now that ethical behaviour is so widely accepted by business.Your answer has been saved.
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2

Pressure groups

How might a pressure group encourage corporate responsibility?

a)
b)
c)
d)
Yes, that's correct. Well done. Pressure groups will threaten to expose irresponsible behaviour by firms.No, that's not right. The correct answer is B. A would probably allow the business to feel that the pressure group is not really interested in building a dialogue and so it would probably not be watching for wrong doings. C is not the way to shift opinions and most pressure groups use all the means at their disposal to inform what they stand for. D is no longer the case as pressure groups communicate with each other.Your answer has been saved.
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3

Social auditing

Social auditing might involve:

a)
b)
c)
d)
Yes, that's correct. Well done. Most companies now develop social performance indicators.No, that's not right. The correct answer is C. Most companies now develop social performance indicators. A would be a poor move though it is not directly connected with social audits. However, failure to keep stakeholders informed would have some potential serious consequences. D would not be the case as companies now keep detailed records on their actions, lest the lawyers or the press come to call.Your answer has been saved.
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4

Environmental auditing

Why might a business carry out an environmental audit?

a)
b)
c)
d)
Yes, that's correct. Well done. Many companies now carry out environmental audits to assess the environmental impact of the firm's policies.No, that's not right. The correct answer is B. A refers to location policy and is not directly involved in this area of our studies. C is unlikely to take place and many of these more 'modern' policies cost money to implement but can you afford not to? D might arise if employees feel proud of the firm's environmental record but it will take time.Your answer has been saved.
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5

Externalities

What are 'externalities'?

a)
b)
c)
d)
Yes, that's correct. Well done. Many companies now carry out environmental audits to assess the environmental impact of the firm's policies.No, that's not right. The correct answer is B. A refers to the fixed, variable etc costs of any business and do not include any social costs and benefits. C is just the total cost divided by the output and so again does not include social costs and benefits. D is referring to the external environment, but externalities has a more specific meaning than this.Your answer has been saved.
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