Question 1

Consequentialist (or utilitarian) reasoning justifies action in terms of the outcomes generated (e.g., the greatest good for the greatest number of people).Such reasoning is part of which argument for corporate social responsibility?
A)ethical
B)moral
C)rational
D)economic

Accepted Answer

Consequentialist (or utilitarian) reasoning is a part of the ethical argument for corporate social responsibility, which suggests that companies have a moral obligation to act in ways that benefit society as a whole, even if it reduces profits in the short term.

Question 2

Financial scandals around the turn of this century at Enron, WorldCom, Adelphia, HealthSouth, and others led to which of the following?
A)greater reliance on nonstandard accounting practices
B)less reliance on nonstandard accounting practices
C)new laws and governmental rulings that limit business's discretionary actions
D)revocation of laws and rulings that limit business's discretionary actions

Accepted Answer

The financial scandals led to new laws and governmental rulings, such as the Sarbanes-Oxley Act, that sought to limit business's discretionary actions and increase transparency in accounting practices. This was done in order to prevent similar scandals from occurring in the future. Therefore, choice C is the best answer.

Question 3

From a corporate social responsibility perspective, a firm's success is primarily related to its ability to ______.
A)incorporate stakeholder concerns into its business model
B)maximize the use of all its internal and external resources
C)minimize its tax liabilities
D)create more energy-efficient manufacturing processes

Accepted Answer

Corporate social responsibility (CSR) requires firms to consider and incorporate stakeholder concerns into their business model. Success in CSR involves meeting the needs of not just shareholders, but also customers, employees, communities, and the environment. Maximizing the use of resources and creating more energy-efficient processes are important elements of CSR, but they are not the primary factors that determine a firm's success in this area. Minimizing tax liabilities, while legal, does not necessarily contribute to a firm's social responsibility.

Question 4

A firm sponsors a 5k race, contributing the race fees to a local charity.According to Archie Carroll's pyramid of corporate social responsibility, the firm is meetings its ______.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

The firm sponsoring a 5k race and contributing the race fees to a local charity is an example of discretionary responsibility, which refers to a company's voluntary and philanthropic actions that go beyond its legal and ethical obligations. This action is not required by law or ethical principles, but rather represents the firm's desire to go above and beyond in giving back to the community.

Question 5

CSR refers to both ______.
A)an input and an output
B)ethics and outcomes
C)a process and an outcome
D)a theory and an application

Accepted Answer

CSR refers to both a process and an outcome. It is a process through which companies manage their businesses to produce an overall positive impact on society. The outcome of CSR is the contribution of the business to sustainable development and the creation of shared value. Therefore, neither A, B, nor D are fully accurate as they do not capture the full scope of CSR as a process-oriented approach with a focus on creating positive outcomes for society.

Question 6

Society benefits most when firms focus purely on their own financial success.This statement best reflects the ideas of ______.
A)Charles Handy
B)Adam Smith
C)David Packard
D)Milton Friedman

Accepted Answer

Milton Friedman was a renowned economist who believed that the ultimate goal of firms should be to maximize profits and shareholder value. He argued that as long as firms operate within the boundaries of the law and free-market competition, their focus on financial success benefits society as a whole by creating jobs, generating economic growth, and driving innovation.

Question 7

The call for social responsibility among businesses is generally recognized as a concept that began in which time period?
A)the early late 20th century, after the impact of the Industrial Revolution
B)the late 20th century and early 21st century, after numerous widespread financial scandals
C)ancient times, as early as the writings of Socrates
D)the 17th century, after concerns about the excesses of the East India Company were publicized

Accepted Answer

The call for social responsibility among businesses is generally recognized as a concept that began in ancient times, as early as the writings of Socrates.

Question 8

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to do no harm to its stakeholders within its operating environment.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

Carroll's pyramid of corporate social responsibility posits that a firm's ethical responsibility includes doing no harm and going beyond mere legal compliance to address ethical norms and expectations within its operating environment.

Question 9

Peter Drucker stated, "Profit for a company is like oxygen for a person.If you don't have enough of it, you're out of the game.But if you think your life is about breathing, you're really missing something." This statement reflects the ______ argument for corporate social responsibility.
A)ethical
B)moral
C)rational
D)economic

Accepted Answer

The answer of Peter Drucker stated, "Profit for a company...

Question 10

Which of the following is NOT a characteristic of corporate social responsibility?
A)It is a static target that does not change.
B)It is an evolving concept.
C)It varies across countries and cultures.
D)It is both critical and controversial.

Accepted Answer

Corporate social responsibility is an evolving concept that changes over time and varies across different countries and cultures. It is also a critical and controversial issue, but it is not a static target that does not change.

Question 11

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to take proactive, strategic behaviors that benefit both the firm and society.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

Discretionary responsibility is the highest level of corporate social responsibility in Carroll's pyramid, which means going beyond the economic, legal, and ethical responsibilities to engage in proactive, strategic behaviors that benefit both the firm and society. These behaviors are voluntary and not required by any law or regulation. Examples of discretionary responsibilities include philanthropy, environmental sustainability initiatives, and ethical leadership.

Question 12

Applying Archie Carroll's pyramid of corporate social responsibility, when a firm closes due to financial mismanagement and bankruptcy, it has not met its ______.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

The pyramid of corporate social responsibility, developed by Archie Carroll, suggests that firms have four responsibilities: economic, legal, ethical, and discretionary. Economic responsibility is the most basic, and is met when a firm is profitable and generates wealth for its stakeholders. If a firm closes due to financial mismanagement and bankruptcy, it has failed to meet this economic responsibility. Legal responsibility is the second level of the pyramid and involves following the laws and regulations that govern business activities. While a firm may face legal consequences for financial mismanagement, bankruptcy itself is not necessarily a result of violating laws or regulations. Ethical responsibility is the third level and involves behaving in a morally responsible way, beyond mere compliance with legal requirements. While financial mismanagement may be considered unethical, its contribution to bankruptcy is primarily related to economic responsibility. Finally, discretionary responsibility is the highest level and involves voluntarily taking actions that benefit society or the environment, beyond what is required by law or expected by stakeholders.

Question 13

By adopting a rational argument for corporate social responsibility, firms seek to ______.
A)do the right thing from an ethical perspective
B)to interpret evolving societal values and stakeholder expectations
C)make larger societal contributions than simply creating profit
D)go above and beyond the basic ethical and moral expectations of a society

Accepted Answer

Firms adopting a rational argument for corporate social responsibility aim to align their strategies with evolving societal values and stakeholder expectations to ensure long-term success and legitimacy.

Question 14

Since the early 19th century, managers have consistently paid attention to the interests of all stakeholders.

Accepted Answer

The early 19th century saw the rise of shareholder capitalism, where the primary focus was on maximizing profits for shareholders at the expense of other stakeholders. It was not until later in the 20th century that stakeholder capitalism gained more attention and companies began to consider the interests of all stakeholders.

Question 15

In terms of social activism, what book could be credited with being a catalyst for the environmental movement?
A)The Perfect Storm
B)Prodigal Summer
C)The Water Knife
D)The Silent Spring

Accepted Answer

The Silent Spring is widely considered as the catalyst for the environmental movement. The book written by Rachel Carson raised awareness about the dangers of chemical pesticides on wildlife and the environment, which led to the ban of DDT and the creation of the Environmental Protection Agency.

Question 16

The Malden Mills textile plant is an important case study in CSR because ______.
A)it showed that some things are more important than profit
B)it demonstrated the futility of the textile industry in New England
C)it illustrated that no firm, whatever the motivation, can or should indefinitely spend money it does not have
D)it showed the downsides of outsourcing

Accepted Answer

The answer of The Malden Mills textile plant is an...

Question 17

For a hair care salon shop that is a privately owned business, which of the following is NOT likely to be a stakeholder?
A)tax authorities
B)customers
C)suppliers of hair dryers
D)the New York Stock Exchange (NYSE)

Accepted Answer

The New York Stock Exchange (NYSE) is a stock market for publicly traded companies and the hair care salon shop being a privately owned business is not likely to be listed on the NYSE or have any connection to it. Therefore, NYSE is not a stakeholder for the salon shop. However, tax authorities, customers, and suppliers of hair dryers are likely to be stakeholders for the salon shop as they have a direct or indirect interest in the business.

Question 18

Corporate social responsibility adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups.This statement reflects the ______ argument for CSR.
A)ethical
B)moral
C)rational
D)economic

Accepted Answer

The statement reflects the economic argument for CSR, which suggests that CSR can create value for companies by improving their reputation, attracting and retaining customers and employees, and reducing costs.

Question 19

There is widespread agreement among corporate executives about the necessity of corporate social responsibility.

Accepted Answer

The answer of There is widespread agreement among corporate executives...

Question 20

According to the textbook, corporate social responsibility is strongest when ______.
A)business leaders view their role as stewards of resources owned by others
B)lower-level employees take the lead in developing socially responsible practices in the workplace
C)consumers demand higher levels of social responsibility
D)government requires specific business practices

Accepted Answer

Corporate social responsibility is strongest when business leaders view their role as stewards of resources owned by others, meaning that they recognize that they have a responsibility to not only prioritize profit, but also consider the well-being of their employees, the environment, and society as a whole. This mindset can lead to the development of socially responsible practices throughout the company.

Quiz 1: What Is CSR

Consequentialist (or utilitarian) reasoning justifies action in terms of the outcomes generated (e.g., the greatest good for the greatest number of people) .Such reasoning is part of which argument for corporate social responsibility?

Financial scandals around the turn of this century at Enron, WorldCom, Adelphia, HealthSouth, and others led to which of the following?

From a corporate social responsibility perspective, a firm's success is primarily related to its ability to ______.

A firm sponsors a 5k race, contributing the race fees to a local charity.According to Archie Carroll's pyramid of corporate social responsibility, the firm is meetings its ______.

CSR refers to both ______.

Society benefits most when firms focus purely on their own financial success.This statement best reflects the ideas of ______.

The call for social responsibility among businesses is generally recognized as a concept that began in which time period?

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to do no harm to its stakeholders within its operating environment.

Peter Drucker stated, "Profit for a company is like oxygen for a person.If you don't have enough of it, you're out of the game.But if you think your life is about breathing, you're really missing something." This statement reflects the ______ argument for corporate social responsibility.

Which of the following is NOT a characteristic of corporate social responsibility?

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to take proactive, strategic behaviors that benefit both the firm and society.

Applying Archie Carroll's pyramid of corporate social responsibility, when a firm closes due to financial mismanagement and bankruptcy, it has not met its ______.

By adopting a rational argument for corporate social responsibility, firms seek to ______.

Since the early 19th century, managers have consistently paid attention to the interests of all stakeholders.

In terms of social activism, what book could be credited with being a catalyst for the environmental movement?

The Malden Mills textile plant is an important case study in CSR because ______.

For a hair care salon shop that is a privately owned business, which of the following is NOT likely to be a stakeholder?

Corporate social responsibility adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups.This statement reflects the ______ argument for CSR.

There is widespread agreement among corporate executives about the necessity of corporate social responsibility.

According to the textbook, corporate social responsibility is strongest when ______.