Deck 11: Ethical Issues in the Developing World

Question 1

All of the following are mentioned in the text as characteristics of successful social entrepreneurs EXCEPT:

A) Trying to following the constraints of ideology or discipline
B) Focusing on how the organization's mission will be used to create social value
C) Using innovation, resourcefulness and opportunity to determine what practical solutions are viable to solve the social problem
D) Recognizing everyone has the ability to contribute to the economic and social development of the organization

Answer 1

A

Question 2

A social entrepreneur who focuses on addressing the social needs of local communities is referred to a(n) ______________.

A) Social bricoleur
B) Social constructionist
C) Social technologist
D) Social engineer

Answer 2

A

Question 3

_____________ is the process in which small loans are given to entrepreneurial individuals in developing counties in order to develop income that will benefit the individual as well as the local village through poverty reduction.

A) Equity finance
B) Macro finance
C) Debt finance
D) Microfinance

Answer 3

D

Question 4

_______________ can be defined as organizations that have created business models that cater to basic human needs that are not currently being served.

A) Traditional entrepreneurship
B) Social entrepreneurship
C) Financial entrepreneurship
D) Unorthodox entrepreneurship

Question 5

In the opening, case on what date did Samsung lift the ban on using Shinyang Electronics as a supplier?

A) August, 7 2012
B) July 10, 2014
C) July 14, 2014
D) August 5, 2014

Question 6

Which of the following is NOT mentioned in the text as an income category that would be used to describe customers at the base of the pyramid?

A) Extreme poverty
B) Subsistence
C) Low income
D) Moderate income

Question 7

All of the following are key principles in order to be profitable addressing the needs of the customers in the bottom of the pyramid (BOP) except

A) Establishing or comingling competitive advantage
B) Foreign direct investment into the BOP country
C) Leveraging and transferring social embeddedness
D) Enhancing mutual values

Question 8

An example of a(n) _______________ is Jacqueline Novogratz who established the Acumen Fund in 2001 which the mission to use entrepreneurial approaches to solve global poverty problems.

A) Social bricoleur
B) Social constructionist
C) Social technologist
D) Social engineer

Question 9

All of the following are principles for social business except

A) Investors of the organization will only receive a 5% return on their full investment amount
B) The business objective of the organization is to address a social problem and not to maximize profitability
C) When the investment amount is paid in full to all the investors, the subsequent profits will be invested back into the firm for expansion and improvement opportunities
D) The employees of the organization will receive market wages with superior working conditions

Question 10

Elkington and Hartigan identified 10 characteristics of successful social entrepreneurs. Which of the following is not one?

A) Using innovation, resourcefulness, and opportunity
B) Not wait until all resources are available to capitalize on the opportunity
C) Be a good teacher
D) Concentrate on rates of return

Question 11

What is not a strategic focus for firms who concentrate on bottom of the pyramid customers?

A) Large volume low profit margins
B) Transactions taking place in an informal market
C) Long term view of the project
D) Products based on normal market conditions

Question 12

In the opening case, children were being paid _______ of the standard adult pay rate for doing the same work at HEG Electronics.

A) 16%
B) 50%
C) 70%
D) 80%

Question 13

An example of a(n) _______________ is Muhammad Yunus who established the Grameen Bank to set up microloans for poor villagers in Bangladesh.

A) Social bricoleur
B) Social constructionist
C) Social technologist
D) Social engineer

Question 14

____________ is the organization set up by Yunus to provide education as part of his microfinance initiative in Bangladesh.

A) Grameen Veolia
B) Grameen Shamogree
C) Grameen Shikkha
D) Grammen Shakti

Question 15

Consumers who earn under $1 per day are considered to be in which of the following income categories?

A) Extreme poverty
B) Subsistence
C) Low income
D) Moderate income

Question 16

Which of the following is NOT an ethical issue that can be raised by multinational corporations focusing on bottom of the pyramid (Bop) markets?

A) Appropriateness of the products
B) Price points established by the firms
C) Potential misuse of advertising and promotion
D) All selections are ethical issues that can be raised by multinational corporations

Question 17

_________________relates to understanding that pilot studies carry a high level of risk.

A) Orchestrating effective experiments
B) Managing failure
C) Establishing the competitive advantage
D) Leveraging and transferring social embeddedness

Question 18

All of the following are types of capital that social entrepreneurs need to focus on in order to succeed in their vision except

A) Financial capital
B) Cultural capital
C) Environmental capital
D) Aesthetic capital

Question 19

An example of a(n) _______________ would be an individual who sets up a relief organization to help individuals who have been affected by a natural disaster.

A) Social bricoleur
B) Social constructionist
C) Social technologist
D) Social engineer

Question 20

Which of the following is NOT one of the different types of social entrepreneurs based on the proposed typology by Skaher Zahra?

A) Social Bricoleur
B) Social Constructionist
C) Social Technologist
D) Social Engineer

Question 21

The first generation of business strategies targeted to the poorest customers focused on "fortune finding," while the second generation of business strategies focuses on "fortune creating" by forming partnerships with local businesses within the poorest countries.

Question 22

In 2007, __________ million people in sub-Saharan Africa were classified as undernourished.

A) 10.9
B) 146
C) 457
D) 925

Question 23

Strategies to be used to address the needs of the customers at the base of the pyramid depend on the income level of the customers.

Question 24

The three critical attributes of a successful social entrepreneur are wealth, intelligence, and the ability to speak multiple languages.

Question 25

Which is not one of the key human rights as defined by the UN General Assembly in 1948?.

A) Freedom
B) Justice
C) Peace
D) Prosperity

Question 26

Which of the following is NOT one of the companies that joined forces in 2003 to help lead a corporate response to human rights issues by developing the Business Leaders Initiative on Human Rights?

A) Barclays PLC
B) MTV Networks Europe
C) The Body Shop International
D) Microsoft

Question 27

According to the text, all of the following are indicated as root causes of hunger except

A) The education gap
B) The natural environment
C) The poverty gap
D) Poor infrastructure

Question 28

In Sub-Saharan Africa, mortality numbers for children younger than age 5 have declined from 12.4 million in 1990 to ______ million in 2009.

A) 8.1 million
B) 5 million
C) 2.6 million
D) 1.1 million

Question 29

Fair Trade licensees receive three benefits of being Fair Trade certified. Which is not one?

A) Charge higher prices
B) Expect higher revenues
C) Increase their workforce
D) Improve their images and reputations

Question 30

The European Union (EU) is demanding that all EU countries must have _______ of their transportation fuel come from renewable sources such as biofuel or wind power by 2020.

A) 10%
B) 15%
C) 73%
D) 98%

Question 31

Which is not a factor that explains why there is variable progress to meet Millennium Development Goals?

A) Poor governance b Poverty trap
C) Policy neglect
D) Population growth

Question 32

A Social bricoleur is one who uses his or her existing resource base in order to address the social mission of the organization.

Question 33

In 2013, _____million people lived in poverty in the United States.

A) 5.7 million
B) 10 million
C) 37 million
D) 45.3 million

Question 34

An example of a social engineer entrepreneur is Jacqualine Novogratz who established the Acumen Fund in 2001 which the mission to use entrepreneurial approaches to solve global poverty problems.

Question 35

Which of the following is not one of the characteristics of Fair Trade as stated by the Fairtrade Labeling Organization?

A) Based on dialogue, transparency, and respect
B) Offering better trading conditions to, and securing the rights of, marginalized producers and workers
C) Campaigning for changes in the rules and practice of conventional international
D) A zero-sum game

Question 36

To be classified as a biofuel, a product must be made of at least _______ renewable materials and be produced from living organisms or from organic/food waste products.

A) 20%
B) 40%
C) 60%
D) 80%

Question 37

Which of the following is NOT one of the goals developed during the United Nations Millennium Summit?

A) Eradicate extreme poverty and hunger
B) Maximize technology infrastructure
C) Achieve universal primary education
D) Promote gender equality and empower women

Question 38

All of the following are unique characteristics of microfinance loans except

A) No collateral is needed
B) Loans are usually repaid between 6 months and a year
C) Only a maximum of 10% ownership equity is required in exchange for the loan
D) When the loan has been repaid, the money is then "recycled" as loans to other entrepreneurs in the village

Question 39

Which of the following is NOT a factor that encourages private sector investment to reduce poverty?

A) Strong infrastructures
B) A strong and objective legal system
C) A government that supports economic growth
D) High population growth

Question 40

In the United Kingdom, which is not one of the unethical issues around Fair Trade practices?

A) Misrepresenting the program to the customers
B) Expecting higher revenues
C) Lying about the Fair Trade program
D) No giving customers relevant information that could affect purchasing decisions

Question 41

In a short essay, list and discuss the three types of social entrepreneurs. Include an example of each type of social entrepreneur to support your answer.

Question 42

The underlying foundation to the concept of Fair Trade is that a free market based trade system does not always produce sustainable livelihood for the farmers and other members of the global food chain.

Question 43

Ethanol is also known as hydrogen peroxide.

Question 44

In a short essay, list the ten characteristics of successful social entrepreneurs.

Question 45

In a short essay, list the seven key principles that are required in order for a firm to be profitable when addressing the needs of customers in the bottom of the pyramid.

Question 46

To be classified as a biofuel, a product must be made of at least 80% renewable materials and be produced from living organisms or from organic/food waste products.

Question 47

In a short essay, list and discuss the root causes of hunger.

Question 48

Microfinance is the process in which small loans are given to entrepreneurial individuals in developing countries in order to develop income which will benefit the individual as well as the local village through poverty reduction.

Question 49

The purpose of the United Nations Millennium Summit was to establish global goals to address human development challenges.

Question 50

In a short essay, discuss what factors could explain why some regions have not moved forward on the UN Millennium Development Goals (MDGs) according to Sachs and MacArthur.

Question 51

One of the unique aspects of microfinance loans is that only a small amount of collateral is needed and the loans are usually repaid between two to five years.

Question 52

Human rights such as civil rights, property rights, and labor rights do not have a direct impact on the strategic focus of a firm.

Question 53

The payback rate for microfinance loans is between 60 and 65%.

Question 54

The Social Accountability 8000 certification is a standard that provides a way for companies to ensure that they are offering humane workplace.

Question 55

In 2003, seven companies joined forces to help lead a corporate response to human rights issues by developing the Business Leaders Initiative on Human Rights.