Deck 4: Corporate Stakeholder Responsibility

Question 1

Milton Friedman argued for which of the following ideas?

A)There should be more government intervention when CSR is lacking.
B)Firms should seek societal goals beyond making profits.
C)Market forces should not play a role in CSR.
D)CSR is not a proper concern of companies.

Answer 1

D

Question 2

Which of the following is NOT an example of stakeholder retaliation?

A)governmental regulations related to cleaning products
B)boycotts by consumers of cleaning products that harm the environment
C)TV advertisements for a cleaning product that does not harm the environment
D)strikes by employees for higher wages

Answer 2

C

Question 3

______ occurs when stakeholders act to punish the firm for not meeting their expectations in relation to that issue.

A)The CSR sweet spot
B)The CSR danger zone
C)The CSR threshold
D)CSR optimization

Answer 3

C

Question 4

What did Charles Handy argue in his 2002 Harvard Business Review article?

A)A corporation should not waste time on CSR initiatives.
B)If businesses are not making large profits, they should not exist.
C)Firms should make satisfying shareholders their first priority.
D)A business has to have a motivation other than merely making a profit in order to justify its existence.

Question 5

Which of the following is an application of Milton Friedman's ideas?

A)A large, multinational corporation tries to ensure that workers throughout the supply chain earn a living wage.
B)A small business makes maximizing profits its top priority.
C)A firm decides to implement a recycling program to benefit the environment.
D)A medium business encourages its employees to volunteer in the community.

Question 6

What did Milton Friedman argue in his seminal 1970 article published in The New York Times Magazine?

A)Profit, although important, should not be the primary focus of firms.
B)Firms have a duty to pay their employees a living wage.
C)Profit, as a result of the actions of the firm, is an end in itself.
D)Firms do not provide value to society unless they are acting in a socially responsible manner.

Question 7

In order to be considered responsible, the firm has to be able to create ______.

A)equitable outcomes
B)maximum outcomes
C)fair outcomes
D)optimal outcomes

Question 8

The ______ argument for CSR assumes that firms act most effectively when they are incentivized to do so.

A)economic
B)moral
C)rational
D)ethical

Question 9

The text argues that the CSR cause is best advanced when stakeholders are not only caring and informed but also ______ and ______.

A)transparent; educated
B)transparent; powerful
C)educated; organized
D)action oriented; transparent

Question 10

Demand for firms to be socially responsible may arise from ______.

A)special interest groups and suppliers
B)employees and customers
C)company leaders
D)all of these

Question 11

When responding to stakeholder concerns, the ability of the firm to maximize opportunity and minimize risk is known as the ______.

A)CSR target
B)CSR Threshold
C)optimum CSR
D)CSR sweet spot

Question 12

Today, stakeholders outside the firm have greater opportunities to mobilize their efforts because of ______.

A)society's elites
B)greater sophistication among government leaders
C)declining world trade
D)the revolution in communications technology

Question 13

Which of the following is an example of a firm implementing the moral argument for CSR?

A)A manufacturing business uses eco-products to keep up with its competitors.
B)A large corporation pays its employees a living wage to end a consumer boycott
C)A small business buys hybrid cars because of the tax benefits.
D)A corporation ensures its products are made in fair labor conditions because it is the right thing to do.

Question 14

Staff at Google compelled the company to back away from a Pentagon contract using Google's artificial intelligence software.This action shows the influence of ______.

A)activist shareholders
B)activist self-regulators
C)activist social groups
D)activist stakeholders

Question 15

What characterizes the current era of globalization?

A)Individuals are the main agents of globalization.
B)Countries have much more economic and military power than before.
C)Multinational companies look abroad for markets and labor
D)Markets are integrated globally.

Question 16

Thomas Friedman wrote that we are in the era of ______.

A)Globalization 1.0
B)Globalization 2.0
C)Globalization 3.0
D)Globalization 4.0

Question 17

According to the text, the range of firm behavior that generates value for both internal and external stakeholders in sufficient quantities is termed ______.

A)the strategic CSR window of opportunity
B)the strategic CSR best practices
C)maximizing strategic CSR
D)strategic CSR expansion

Question 18

When will firms generally see stakeholder reactions to the firm's decisions?

A)within 1 month
B)within 1 year
C)within 5 years
D)There is no time limit on reactions.

Question 19

When a firm prioritizes stakeholder concerns in relation to a given issue, ______ is maintained when the firm is able to stay where opportunity is maximized and risk minimized.

A)the CSR sweet spot
B)the CSR danger zone
C)the CSR threshold
D)CSR optimization

Question 20

Which publication published Milton Friedman's article "The Responsibility of Business to Increase Its Profits?"

A)The Wall Street Journal
B)The New York Times Magazine
C)The Economist
D)Forbes

Question 21

Charles Handy argued for which of the following ideas?

A)There should be more government intervention when CSR is lacking.
B)Firms should seek societal goals beyond making profits.
C)Market forces should not play a role in CSR.
D)CSR is not a proper concern of companies.

Question 22

Firms who do not act responsibly always face negative consequences.

Question 23

According to the Gallup "Annual Honesty and Ethics poll," the percentage of the U.S.public surveyed who rated business executives' ethics as "high" or "very high" is ______.

A)rising dramatically, with over 50% responding that business leaders are ethical
B)dropping dramatically, from over 75% in 1990 to approximately 50% in 2014 responding that business leaders are ethical
C)remaining consistently high, with approximately 75% responding that business leaders are ethical
D)remaining consistently low, with never more than 25% responding that business leaders are ethical

Question 24

The text argues that CSR is not only a corporate responsibility but also a(n) ______ responsibility.

A)shareholder
B)stakeholder
C)management
D)industry

Question 25

If stakeholders do not express dissatisfaction with a firm's actions, it means they are satisfied.

Question 26

The United Nations' Principles of Responsible Management Education (PRME) include which of the following?

A)to develop the capabilities of students to work for an inclusive and sustainable economy
B)to interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities
C)to facilitate and support dialog with multiple stakeholders on critical issues related to global social responsibility and sustainability
D)all of these

Question 27

60 Minutes exposed the mislabeling of products by the flooring company Lumber Liquidators, and the EPA threatened to withhold approval for selling Volkswagen and Audi diesel models.These are both examples of ______.

A)corporate social responsibility
B)corporate stakeholder responsibility
C)bureaucratic overstepping that negatively impacts business
D)Milton Friedman's concept of the social responsibility of business

Question 28

What percent of a survey of millennials say company's commitment to the community has an influence on their decision to work there?

A)20%
B)35%
C)50%
D)70%

Question 29

The United Nations' Principles of Responsible Management Education (PRME) are important because ______.

A)they set a standard baseline for the teaching of ethical decision-making in all business schools
B)a growing awareness and acceptance of CSR is a necessary component of meaningful change
C)business educators can best determine morally acceptable business practices
D)business education will shape the future of what is considered socially responsible corporate behavior

Question 30

Which of the following is true in relation to CSR and many other aspects of business?

A)It does not pay firms to be too far ahead of the curve.
B)Firms that take the lead on CSR issues are almost always rewarded by consumers
C)It pays firms to be way ahead the curve.
D)Firms that take the lead on CSR issues are never rewarded by consumers.

Question 31

According to the text, "untrammeled consumption" has damaging consequences in all but which of the following domains?

A)economic
B)environmental
C)psychological
D)sociological

Question 32

Recent research has indicated that ______.

A)people are more honest in the morning than in the afternoon
B)people are more honest in the afternoon than in the morning
C)people are equally honest in the morning and the afternoon
D)time of day does not impact ethical decision-making

Question 33

Over the last 20 years, one attribute that more and more defines millennials is their ______.

A)altruism
B)creativity
C)narcissism
D)dogmatism

Question 34

The definition of what is and is not socially responsible is ______.

A)universally understood across cultures
B)established in the United Nations' Principles of Responsible Management Education (PRME)
C)primarily determined by laws and government regulations
D)changing all the time and up to stakeholders to determine

Question 35

Who is most likely the author of the following quote? "It is salutary to ask about any organization, 'If it did not exist, would we invent it?' 'Only if it could do something better or more useful than anyone else' would have to be the answer, and profit would be the means to that larger end."

A)Charles Handy
B)Milton Friedman
C)Barack Obama
D)Congressional Banking Oversight Committee

Question 36

Milton Friedman and Charles Handy had very similar ideas about businesses and their purpose.

Question 37

All stakeholders have an obligation to help design the society in which they want to live and work.

Question 38

An unchecked, unbridled pursuit of economic value, without regard to the social consequences (e.g., such as by manufacturing a product in a way that generates excessive pollution), creates ______.

A)the strategic CSR window of opportunity
B)a CSR deficit for the society in which the firm operates
C)the CSR perspective
D)the Iron Law of Social Responsibility

Question 39

As awareness of socially responsible business practices has increased, consumers have generally responded by ______.

A)paying significant price premiums for socially responsible products
B)continuing to focus primarily on the price and/or quality of products
C)refusing to purchase products if they are not "green certified"
D)paying more for "green" products but not for other socially responsible products

Question 40

Because a $15-per-hr minimum wage might create economic suicide for McDonald's as it would force them to raise prices for customers who like low prices, what action is least likely to result in a $15-per-hr minimum wage?

A)the government increasing the minimum wage
B)employees refusing to work at that wage rate
C)customers refusing to shop at McDonald's because they are unhappy with the wages the company is paying its employees
D)the government initiating right to work legislation

Question 41

Companies are more likely to continue to act socially responsible if it is the right thing to do.

Question 42

The textbook's author states, "We do not need more responsible companies; we need more responsible stakeholders." Analyze this statement, providing examples to support or refute it.

Question 43

Current growth in activist organizations can be attributed to the adoption of the six Principles of Responsible Management Education (PRME) by many business schools.Select three of the six principles and, in your own words, describe how the selected principles can lead to greater social responsibility by corporations and stakeholders.

Question 44

What should the firm do if customers want to purchase a product that is not only bad for them (e.g., tobacco, alcohol, or fast food) but is also bad for society (e.g., higher health-care costs)?

Question 45

The textbook argues that the CSR cause would be advanced considerably if stakeholders are caring, informed, transparent, and educated.Describe what that statement means, citing examples to support your response.

Question 46

Arguments can be made that firms are primarily responsible for CSR practices, and other arguments can be made that stakeholders are primarily responsible for CSR.Describe the two sides to this debate and analyze which argument you support more.

Question 47

The CSR debate is often characterized as a battle between supporters of Milton Friedman on one side and the supporters of Charles Handy on the other.Describe this "battle" and analyze the adequacy of this metaphor as a characterization of current CSR debates.

Question 48

Social responsibility is more than a set of abstract standards.

Question 49

Corporate social responsibility can be defined as the responsibility of firms to act in accordance with stakeholder needs.

Question 50

For long-term success, a firm should focus on its organizational stakeholders.