Question 1

Advocates of the institutional theory of social responsibility argue that a firm must have the trust of all groups, both internal and external.

Accepted Answer

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Question 2

Which of the following is not an objective of the United Nations effort to prevent misconduct by transnational corporations?

Accepted Answer

The United Nations effort to prevent misconduct by transnational corporations focuses on promoting respect for human rights, abstention from corrupt practices, and respect for national sovereignty in countries where such companies operate. However, it does not support the deregulation school of social responsibility, which argues that businesses should only focus on maximizing profits and not be burdened with responsibilities to society.

Question 3

According to the United Nations code of conduct for transnational corporations, if the host country discriminates on the basis of race, sex, or religion, it is ethical for the corporation to do the same.

Accepted Answer

The United Nations code of conduct for transnational corporations states that corporations should not engage in discriminatory practices, even if the host country permits or encourages them. It is considered unethical for corporations to engage in any form of discrimination.

Question 4

Advocates of the professional obligation school of social responsibility argue that business managers have a responsibility to the public beyond merely making profits.

Accepted Answer

Advocates of the professional obligation school of social responsibility believe that business managers have a duty to not only prioritize profits but also to act in a socially responsible manner and contribute to the well-being of society.

Question 5

Explain the objectives of the United Nations code of conduct for transnational companies.

Accepted Answer

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Question 6

The purpose of "adherence to sociocultural values" under the United Nations code of conduct is to .

Accepted Answer

The purpose of "adherence to sociocultural values" under the United Nations code of conduct is to prevent transnational companies from imposing value systems that are detrimental to those of the host country. This means that companies must take into account the cultural values and beliefs of the host country and ensure that their operations do not have a negative impact on these values. It emphasizes the need for companies to be socially responsible and respectful of the culture, traditions, and laws of the country they are operating in.

Question 7

Describe the professional obligation school of social responsibility.

Accepted Answer

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Question 8

A regulation school of social responsibility sees all business units as accountable to elected public officials.

Accepted Answer

According to this school of thought, all businesses are accountable to elected public officials and should operate within the legal framework provided by government regulations.

Question 9

Objectives of the League of Nations effort to prevent misconduct by transnational corporations include respect for national sovereignty in countries where such companies operate, adherence to sociocultural values, respect for human rights, and abstention from corrupt practices.

Accepted Answer

The League of Nations, which existed from 1920 to 1946, did not have specific objectives or mandates related to regulating transnational corporations or addressing their misconduct. These concerns became more prominent in international discourse after the League was dissolved.

Question 10

According to the profit-seeking school of social responsibility, a firm must have clear ethical standards and a sense of social responsibility for its unintended acts in order to maximize profits and to survive in both the short and long runs.

Accepted Answer

The profit-seeking school of social responsibility primarily focuses on maximizing profits, often prioritizing financial performance over ethical standards or social responsibility.

Question 11

According to the institutional theory of social responsibility, if society is to be protected from the unintended effects of profit-making business activities, it is necessary for government to be involved.

Accepted Answer

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Question 12

Describe the arguments articulated by proponents of the managerial school of social responsibility.

Accepted Answer

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Question 13

According to the United Nations code of conduct for transnational corporations, companies are free to give gifts or payments to ensure the business transaction occurs.

Accepted Answer

The United Nations code of conduct for transnational corporations discourages any form of bribery or corrupt practices, and companies should adhere to ethical business practices. Therefore, gifts or payments to ensure a business transaction occur are not allowed.

Question 14

Advocates of the profit-seeking school of social responsibility argue that business entities have a responsibility to act in a manner that benefits all of society.

Accepted Answer

Advocates of the profit-seeking school of social responsibility argue that businesses have a responsibility to maximize profits and create value for their shareholders, not necessarily to benefit all of society.

Question 15

The regulation school of social responsibility sees all business units as accountable to .

Accepted Answer

The regulation school of social responsibility believes that all business units must be accountable to elected public officials since they are responsible for creating and enforcing laws and regulations that govern business practices. This approach emphasizes adhering to legal requirements and compliance with government regulations as a key aspect of fulfilling a business's social responsibility.

Question 16

Professionals are defined, in part, as persons who are subject to codes of conduct that are enforced.

Accepted Answer

This statement is true. Many professions have established codes of conduct that members are required to comply with, and failure to do so may result in disciplinary action or loss of professional status. Examples include codes of ethics for lawyers, doctors, teachers, and engineers.

Question 17

Which of the following is not an objective of the United Nations effort to prevent misconduct by transnational corporations?

Accepted Answer

The profit-oriented school of social responsibility prioritizes maximizing profits over social and environmental concerns, which goes against the objectives of preventing misconduct by transnational corporations. The other options (A, C, and D) are all objectives of the UN effort to prevent misconduct by transnational corporations.

Question 18

The profit-seeking school of social responsibility argues that the social costs of doing business are a responsibility of individual businesses.

Accepted Answer

The profit-seeking school of social responsibility typically argues that businesses should focus on maximizing profits, while social costs should be addressed by government or society, not individual businesses.

Question 19

Proponents of the school of social responsibility argue that because business managers are responsible only to a board of directors that represents shareholders, the corporation cannot be trusted to act in a socially responsible manner.

Accepted Answer

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Question 20

Compare and contrast the institutional and regulation schools of social responsibility.

Accepted Answer

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Quiz 7: Ethics, Social Responsibility, and the Business Manager

Advocates of the institutional theory of social responsibility argue that a firm must have the trust of all groups, both internal and external.

Which of the following is not an objective of the United Nations effort to prevent misconduct by transnational corporations?

According to the United Nations code of conduct for transnational corporations, if the host country discriminates on the basis of race, sex, or religion, it is ethical for the corporation to do the same.

Advocates of the professional obligation school of social responsibility argue that business managers have a responsibility to the public beyond merely making profits.

Explain the objectives of the United Nations code of conduct for transnational companies.

The purpose of "adherence to sociocultural values" under the United Nations code of conduct is to .

Describe the professional obligation school of social responsibility.

A regulation school of social responsibility sees all business units as accountable to elected public officials.

Objectives of the League of Nations effort to prevent misconduct by transnational corporations include respect for national sovereignty in countries where such companies operate, adherence to sociocultural values, respect for human rights, and abstention from corrupt practices.

According to the profit-seeking school of social responsibility, a firm must have clear ethical standards and a sense of social responsibility for its unintended acts in order to maximize profits and to survive in both the short and long runs.

According to the institutional theory of social responsibility, if society is to be protected from the unintended effects of profit-making business activities, it is necessary for government to be involved.

Describe the arguments articulated by proponents of the managerial school of social responsibility.

According to the United Nations code of conduct for transnational corporations, companies are free to give gifts or payments to ensure the business transaction occurs.

Advocates of the profit-seeking school of social responsibility argue that business entities have a responsibility to act in a manner that benefits all of society.

The regulation school of social responsibility sees all business units as accountable to .

Professionals are defined, in part, as persons who are subject to codes of conduct that are enforced.

Which of the following is not an objective of the United Nations effort to prevent misconduct by transnational corporations?

The profit-seeking school of social responsibility argues that the social costs of doing business are a responsibility of individual businesses.

Proponents of the school of social responsibility argue that because business managers are responsible only to a board of directors that represents shareholders, the corporation cannot be trusted to act in a socially responsible manner.

Compare and contrast the institutional and regulation schools of social responsibility.