Question 1

"In a democratic society, power is taken away from those who abuse it" is a workable definition of ______.
A)Carroll's CSR rule
B)the Iron Law of Social Responsibility
C)the Alien Tort Claims Act
D)an accommodative view of CSR

Accepted Answer

The statement "In a democratic society, power is taken away from those who abuse it" aligns with the Iron Law of Social Responsibility, which suggests that those who do not use power in a way that society deems responsible will eventually lose it.

Question 2

If Facebook is seen to be dominating the social media market, what type of corporate social responsibility would it be violating?
A)ethical
B)economic
C)legal
D)discretionary

Accepted Answer

B

Question 3

All those who in some way are related to a firm's activities are known as ______.
A)shareholders
B)public
C)stakeholders
D)clients

Accepted Answer

Stakeholders include not only shareholders and clients, but also employees, suppliers, government agencies, and the community in which the firm operates. Therefore, C is the best choice as it encompasses all parties related to a firm's activities. A, B, and D are too narrow in scope.

Question 4

The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility, which states that ______.
A)ultimately it is government, not business, that is responsible for a satisfying society
B)responsibility for a just society is everyone's responsibility
C)in a free society, discretionary abuse of societal responsibilities leads, eventually, to mandated reprisals
D)concern for CSR must be the first priority of the courts

Accepted Answer

The Iron Law of Social Responsibility states that in a free society, the discretionary abuse of societal responsibilities by business leads, eventually, to mandated reprisals (such as government intervention and regulations). This rational argument emphasizes the importance of businesses recognizing and fulfilling their social responsibilities to avoid negative consequences in the future.

Question 5

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to produce an acceptable return for investors.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

Economic responsibility is the foundation of Carroll's pyramid and refers to a company's responsibility to make a profit and provide a return for its investors. Legal, ethical, and discretionary responsibilities are built on top of economic responsibility.

Question 6

In the 1790s, consumer boycotts occurred in reactions to which of the following?
A)slave-harvested sugar
B)cheap cotton from the United States
C)the high price of fuel (lamp) oil
D)the use of the Royal Navy in England to transport slaves

Accepted Answer

In the 1790s, consumers in Britain began boycotting sugar that had been harvested by slave labor in the West Indies. The boycott was led by abolitionist groups who believed that the slave trade and the system of slavery was immoral. The campaign was highly effective, leading to a significant decline in demand for slave-grown sugar and putting pressure on the British government to abolish the slave trade.

Question 7

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to act within the framework of laws and regulations drawn up by the government and judiciary.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

According to Archie Carroll's pyramid of corporate social responsibility, a firm's legal responsibility is the obligation to comply with the laws and regulations set by the government and judiciary. This is the basic level of responsibility that a company must fulfill in order to operate within a legal framework.

Question 8

Which of the following exist to define the rules and structures of society within which all organizations must operate?
A)for-profits
B)governments
C)nonprofits
D)religion

Accepted Answer

Governments exist to define the rules and structures of society within which all organizations must operate. For-profits, nonprofits, and religion are all types of organizations that must comply with the laws and regulations set forth by the government.

Question 9

Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP), which supports carbon limits and trading.This is an illustration of which argument for corporate social responsibility?
A)ethical
B)moral
C)rational
D)economic

Accepted Answer

This is an example of the rational argument for corporate social responsibility, as these companies have recognized that carbon limits and trading can benefit their bottom line in the long run by reducing the risk of climate change regulation and the potential costs associated with it.

Question 10

Which of the following is NOT part of Archie Carroll's pyramid of corporate social responsibility?
A)stakeholder responsibility
B)legal responsibility
C)discretionary responsibility
D)ethical responsibility

Accepted Answer

Archie Carroll's pyramid of corporate social responsibility includes legal, ethical, and discretionary responsibilities, but does not specifically list "stakeholder responsibility" as a separate category.

Question 11

Which of these is NOT a for-profit business?
A)Facebook
B)Nike
C)Red Cross
D)Uber

Accepted Answer

Facebook, Nike, and Uber are all for-profit businesses that generate revenue and profits. The Red Cross, on the other hand, is a humanitarian organization that operates as a non-profit entity.

Question 12

With the rise of agency theory, there has been a renewed focus on what group in companies?
A)managers
B)employees
C)clients
D)shareholders

Accepted Answer

Agency theory emphasizes the separation between the ownership (shareholders) and control (managers) of a company. Therefore, the renewed focus is on shareholders, who may be concerned about how managers are using company resources and making decisions that impact the value of their investment.

Question 13

James Rogers (the CEO of Duke Energy) once stated: "If you are not at the table when these negotiations are going on, you're going to be on the menu." This illustrates what argument for CSR?
A)moral
B)economic
C)rational
D)ethical

Accepted Answer

The quote highlights the importance of being involved in negotiations or discussions that could potentially impact a company's interests in order to ensure their perspective is accounted for. This aligns with the rational argument for CSR, which is that engaging in CSR activities can help a company mitigate risks and create long-term value for the business.

Question 14

Which of the following is an example of an economic argument for corporate social responsibility?
A)A company invests in clean energy for its vehicles because it saves money on transportation.
B)A company installs skylights in its stores to lower lighting costs.
C)A company provides gym memberships to its employees to lower health-care costs.
D)All of these are examples of economic arguments for CSR.

Accepted Answer

All options (A, B, and C) present scenarios where a company engages in practices that not only benefit the environment or the well-being of its employees but also result in economic savings or benefits for the company itself. This aligns with economic arguments for corporate social responsibility (CSR), where socially responsible actions are taken not just for ethical reasons but also for financial gain.

Question 15

A central part of the moral argument for corporate social responsibility comes from the thinking that ______.
A)businesses have to pay taxes, so they should have to be responsible in other ways as well
B)society cannot afford all its needs unless business is forced to go beyond just paying taxes
C)business leaders and shareholders make money, so they should be morally responsible to society, especially to the poor
D)a large part of business success comes as much from actions that are congruent with societal values and norms as from factors internal to the company

Accepted Answer

The moral argument for corporate social responsibility is based on the idea that businesses should not only focus on their internal actions but also on actions that align with societal values and norms. This is because a large part of business success comes from external factors such as reputation and consumer trust, which are heavily influenced by a company's social responsibility practices. Therefore, the best choice is D.

Question 16

In contrast to Milton Friedman's argument, David Packard argued that ______.
A)businesses exist not only to make money but also to contribute to society
B)the sole purpose of businesses is to make money
C)businesses need not consider all stakeholders
D)shareholders are responsible for the larger community within which a firm operates

Accepted Answer

David Packard argued that businesses should not only be concerned with making profits, but also with contributing to society. He believed that businesses have a responsibility to their employees, customers, and the larger community in which they operate. This view is in contrast to Milton Friedman's argument that the sole purpose of businesses is to make money for their shareholders.

Question 17

The rational argument for CSR rests on ______.
A)sanction avoidance
B)social norms
C)moral integrity
D)societal rules

Accepted Answer

CSR (Corporate Social Responsibility) is often pursued by companies to avoid sanctions and penalties, making sanction avoidance a rational argument for engaging in CSR activities.

Question 18

Strategic CSR expounds the ______ argument in favor of corporate social responsibility.
A)financial
B)economic
C)political
D)social

Accepted Answer

Strategic CSR argues that socially responsible actions by corporations can lead to economic benefits, such as improved financial performance, competitive advantage, and long-term sustainability.

Question 19

An application of Milton Friedman's argument is ______.
A)providing workers time off to volunteer in their communities
B)establishing a recycling program
C)maximizing shareholder returns
D)clearly defining ethical concerns along a product's supply chain

Accepted Answer

Milton Friedman argued that the social responsibility of a business is to maximize profits for its shareholders. Therefore, maximizing shareholder returns would align with his argument. The other options involve social or ethical considerations that may not necessarily lead to increased profits for shareholders.

Question 20

Which of the following best describes nonprofit organizations?
A)They emerge to do social good when the political will or the profit motive is insufficient to address society's needs.
B)They emerge primarily to meet the religious or spiritual needs of a society
C)They emerge to supplement businesses that do not make profits.
D)They emerge to meet the needs of governments that do not have adequate financial resources to address society's needs.

Accepted Answer

Nonprofit organizations are typically established to address societal needs that are not being met by the government or for-profit organizations. They are focused on pursuing a social mission rather than generating profits or addressing religious/spiritual needs. Nonprofits may work in areas such as healthcare, education, poverty reduction, environmental conservation, and advocacy for social justice.

Quiz 1: What Is CSR

"In a democratic society, power is taken away from those who abuse it" is a workable definition of ______.

If Facebook is seen to be dominating the social media market, what type of corporate social responsibility would it be violating?

All those who in some way are related to a firm's activities are known as ______.

The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility, which states that ______.

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to produce an acceptable return for investors.

In the 1790s, consumer boycotts occurred in reactions to which of the following?

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to act within the framework of laws and regulations drawn up by the government and judiciary.

Which of the following exist to define the rules and structures of society within which all organizations must operate?

Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP) , which supports carbon limits and trading.This is an illustration of which argument for corporate social responsibility?

Which of the following is NOT part of Archie Carroll's pyramid of corporate social responsibility?

Which of these is NOT a for-profit business?

With the rise of agency theory, there has been a renewed focus on what group in companies?

James Rogers (the CEO of Duke Energy) once stated: "If you are not at the table when these negotiations are going on, you're going to be on the menu." This illustrates what argument for CSR?

Which of the following is an example of an economic argument for corporate social responsibility?

A central part of the moral argument for corporate social responsibility comes from the thinking that ______.

In contrast to Milton Friedman's argument, David Packard argued that ______.

The rational argument for CSR rests on ______.

Strategic CSR expounds the ______ argument in favor of corporate social responsibility.

An application of Milton Friedman's argument is ______.

Which of the following best describes nonprofit organizations?