Deck 2: Corporate Responsibility

Question 1

Which of the following does not appear on R. Edward Freeman's list of stakeholders in "Managing for Stakeholders" a. Stockholders b. Employees c. Managers d. Environment

Answer 1

D

Question 2

John R. Boatright invokes a number of theories to argue, generally, that shareholders and corporations as a whole should shoulder more responsibility than any one employee/executive of the corporation.

Answer 2

True

Question 3

According to R. Edward Freeman in "Managing for Stakeholders," stakeholder interests may be prioritized by different companies differently.

Answer 3

True

Question 4

According to John Boatright in "What's Wrong -- and What's Right -- with Stakeholder Management," the contractual agreements and legal rules that secure the interests of each input group in a business is known as: a. Stockholder management. b. Transaction cost economics. c. Governance. d. Public policy.

Question 5

Eric Orts and Alan Strudler, in "Putting a Stake in Stakeholder Theory", explain broad perspectives of stakeholders to include those affected by and who affect an organization's actions.

Question 6

A theory of the firm perspective of the boundaries of stakeholder consideration is likely restricted to those who a firm is responsible to by law.

Question 7

According to R. Edward Freeman in "Managing for Stakeholders," the Separation Thesis holds that business questions are distinct from ethical questions.

Question 8

Several of the articles in chapter 2 suggest that fair corporate strategy would be to weigh all stakeholder interests equally as none should ever be more important than any other.

Question 9

According to Milton Friedman in "The Social Responsibility of Business Is to Increase Its Profits," the managers of a company have an obligation to ensure that employees are treated with dignity and respect.

Question 10

According to Wayne F. Cascio in "Decency Means More than "Always Low Prices": A Comparison of Costco to Wal-Mart's Sam's Club," employee turnover at both companies was relatively even.

Question 11

According to John R. Boatright, the Sarbanes-Oxley Act fails to provide a provision in which corporate executives are forced to return compensation earned following misreported earnings reports and other unethical behavior.

Question 12

According to Wayne F. Cascio in "Decency Means More than "Always Low Prices": A Comparison of Costco to Wal-Mart's Sam's Club," Costco was less profitable than Wal-Mart during the same five year period.

Question 13

According to John Boatright in "What's Wrong -- and What's Right -- with Stakeholder Management," the stockholder model of corporate governance is, or should be, grounded in sociological analysis of markets.

Question 14

In "Ethics as Organizational Culture", Linda Trevino and Katherine Nelson emphasize the precedence of formal culture systems over the less important informal culture systems.

Question 15

An employee's internalization of organizational culture is described by Trevino and Nelson as an instance when an employee makes the organization's culture and values their own.

Question 16

Which of the following is NOT mentioned in "Ethics as Organizational Culture" as part of the foundation of building a strong organizational culture a. Moral managers b. Socialization tactics c. Values and Mission statement d. The use of technology

Question 17

According to Milton Friedman in "The Social Responsibility of Business Is to Increase Its Profits," the managers of a company may spend corporate money on charitable enterprises only when: a. They are sure that doing so will increase profits. b. They truly believe the cause to be worthy. c. They have expertise in the area. d. They have had a profitable year.

Question 18

According to Milton Friedman in "The Social Responsibility of Business Is to Increase Its Profits," whether or not a company operates in a democracy is irrelevant to his view of corporate social responsibility.

Question 19

According to Wayne F. Cascio in "Decency Means More than "Always Low Prices": A Comparison of Costco to Wal-Mart's Sam's Club," Sam's Club emphasizes its Code of Ethics in its everyday business operations including respect and priority for suppliers and employees.

Question 20

According to Wayne F. Cascio's article comparing Costco to Sam's Club, which of the following is a hallmark of Costco company values a. Costco makes up for low wages with unusually generous benefits b. Employees and customers take precedence over shareholders c. Labor costs must remain as low as possible at all times d. Top positions are primarily filled with hires from outside of the company

Question 21

In "Decency Means More than "Always Low Prices": A Comparison of Costco to Wal- Mart's Sam's Club", what does Costco mean when it says it aims to turn inventory faster than people

Question 22

R. Edward Freeman, in "Managing for Stakeholders", identifies what might be called "primary" stakeholders as well as "secondary" stakeholders. Explain the difference between the two.

Question 23

Milton Friedman describes the responsibilities of a corporate executive differently when viewed as an agent of shareholders vs. as an individual, a principal in effect. Briefly describe how these responsibilities could differ.

Question 24

Which stakeholder group does John R. Boatright explain is morally justified in its claim to corporate control as a means for that group to protect their interests

Question 25

Explain John Boatright's main arguments in "What's Wrong -- and What's Right -- with Stakeholder Management." Provide two objections to his thesis. Also explain whether you agree or disagree with his position.

Question 26

From "Ethics as Organizational Culture", explain what Linda Trevino and Katherine Nelson describe as a strong culture. What are formal and informal culture systems and how do they build and sustain a weak or strong culture.What kind of culture do you think Costco has.Why

Question 27

John R. Boatright in "Individual Responsibility in the American Corporate System: Does Sarbanes-Oxley Strike the Right Balance " argues that the primary purpose of laws governing corporate responsibility is deterrence. Do you agree with this interpretation. Why or why not. Appeal to the ethical theories discussed in this chapter and in chapter 1 to support your position.

Question 28

Does the essay by Wayne F. Cascio, "Decency Means More than "Always Low Prices": A Comparison of Costco to Wal-Mart's Sam's Club," tend to support the position of Milton Friedman or R. Edward Freeman. Why

Question 29

Provide an exposition of the stockholder view of the corporation as defended by Milton Friedman. What would Friedman likely say about the NYSEG Corporate responsibility program. Provide an exposition of the stakeholder view of the corporation as defended by R. Edward Freeman. What would Freeman likely say about the NYSEG Corporate responsibility program. With whom do you agree more

Question 30

In "Decency Means More than "Always Low Prices": A Comparison of Costco to Wal- Mart's Sam's Club", Wall Street investors complained that Costco treated which two groups of stakeholders "too well"