Question 1

In Carroll's four-part definition of corporate social responsibility, ethical responsibilities are required of business only by society, and not by businesses themselves.

Accepted Answer

In Carroll's four-part definition of corporate social responsibility, ethical responsibilities are expected of businesses themselves, not just required by society.

Question 2

The marketplace in the classical view of economics, while being a good allocator of goods and services, does not do a good job of ensuring that business always acts fairly and ethically.

Accepted Answer

The classical view of economics focuses on the efficiency of the market in allocating resources and does not consider ethical concerns. Therefore, the marketplace may not always ensure fair and ethical behavior from businesses.

Question 3

Corporate social performance emphasizes the financial results of what the firm hopes to accomplish.

Accepted Answer

Corporate social performance (CSP) refers to a company's efforts to evaluate and take responsibility for its social and environmental impacts. While financial performance is important, CSP goes beyond that by considering a company's impact on society and the environment.

Question 4

Carroll's Corporate Social Performance Model helps managers understand that social responsibility is separate and distinct from financial performance.

Accepted Answer

Carroll's Corporate Social Performance Model integrates social responsibility into the core framework of a business, suggesting that social responsibility and financial performance are interconnected and should be considered together for sustainable success.

Question 5

Social responsible investing is a very new concept, originating in the early 1990s.

Accepted Answer

Social responsible investing (SRI) has been around for much longer than the early 1990s. The practice of investing in line with social values can be traced back to the 18th century Quakers who refused to invest in companies involved in the slave trade.

Question 6

Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest resulting in the good of society.

Accepted Answer

While Adam Smith wrote about the beneficial effects of self-interest on society, he did not use the term philanthropy in Wealth of Nations.

Question 7

An argument for corporate social responsibility is that it helps business compete in the global economy.

Accepted Answer

The answer of An argument for corporate social responsibility is...

Question 8

Proponents of the concept of corporate social responsiveness believe that the focus of corporate social responsibility on accountability or obligation is not dynamic enough to describe business's willingness and activity to respond to social demands.

Accepted Answer

Proponents of corporate social responsiveness argue that accountability and obligation are not enough and that businesses need to be willing to respond to social demands in a more dynamic way.

Question 9

The corporate social performance concept has not yet spread to the business community.

Accepted Answer

The statement is false. The corporate social performance concept has become increasingly important in the business community in recent years, with many companies adopting CSR (corporate social responsibility) practices and communicating about their social and environmental impacts.

Question 10

A survey done by Walker Information shows that the public believes that CSR does not factor into a company's reputation at all.

Accepted Answer

Surveys and research, including those by organizations like Walker Information, typically show that Corporate Social Responsibility (CSR) significantly impacts a company's reputation, with the public often viewing companies more favorably if they are perceived as socially responsible.

Question 11

A society more satisfied with corporate social responsiveness, performance, and citizenship will invariably have reduced criticism of business.

Accepted Answer

A society's satisfaction with corporate social responsibility may reduce criticism, but it does not invariably eliminate it, as other factors can still lead to criticism.

Question 12

Friedman never proposed that businesses had any obligation to act ethically.

Accepted Answer

Milton Friedman believed that businesses had an obligation to operate within the rules of the game, which includes ethical customs, implying an obligation to act ethically.

Question 13

Corporate social responsiveness is focused on the action phase of management response to social demands.

Accepted Answer

Corporate social responsiveness is a term used to describe the action taken by companies to respond to social demands and address their responsibilities to society. It is focused on the action phase, rather than just the recognition or reaction phase, of management response to social demands. Therefore, the statement is true.

Question 14

In order to operate with a true stakeholder perspective, firms must accept the multiple bottom line view.

Accepted Answer

The multiple bottom line view is a concept which focuses on not only the financial bottom line but also the social and environmental impact of a firm's actions. To operate with a true stakeholder perspective, firms must take into account all of these factors and accept the multiple bottom line view. Therefore, the statement is true.

Question 15

Social screening is the mechanism by which socially conscious investors choose their investment advisors.

Accepted Answer

Social screening is the mechanism by which socially conscious investors choose their investments, not their investment advisors.

Question 16

One of the biggest advances in corporate social performance is that all agree that performance criteria need only be responsive and not anticipatory.

Accepted Answer

The statement is false. Corporate social performance criteria need to be both anticipatory and responsive. Organizations need to anticipate potential social, environmental, and ethical issues and respond proactively to prevent them rather than waiting for criticism or legal action.

Question 17

The company town, in which a major employer builds homes and commercial buildings, and provides the goods and services needed by its employees, is an example of paternalistic social responsibility.

Accepted Answer

A company town is an example of paternalistic social responsibility because the company takes responsibility for the well-being of its employees by providing them with housing, shopping, and other necessary services.

Question 18

In practical terms, the socially responsible firm must be involved in philanthropy, as society expects it.

Accepted Answer

While philanthropy can be a component of social responsibility, it is not a requirement. Socially responsible firms can also demonstrate their commitment through ethical business practices, environmental sustainability, and positive community engagement.

Question 19

The CSR Pyramid is a stakeholder model--that is, each of its components addresses different stakeholders.

Accepted Answer

The CSR Pyramid consists of four components, each addressing a different stakeholder group: economic responsibility to shareholders, legal responsibility to comply with laws and regulations, ethical responsibility to do what is right and just, and philanthropic responsibility to give back to society. Therefore, it is a stakeholder model.

Question 20

Research has indicated that improvements in corporate social performance are associated with improved financial results.

Accepted Answer

Several studies have found a positive correlation between companies with strong corporate social responsibility (CSR) practices and improved financial performance. These studies suggest that a focus on sustainable business practices and social responsibility can lead to increased profitability, improved reputation, and reduced risks.

Quiz 2: Corporate Social Responsibility, Citizenship, and Sustainability.