Question 1

The concept of social responsibility proposes that a corporation has responsibilities to society that extend beyond making a profit.

Accepted Answer

The concept of social responsibility suggests that businesses have a responsibility to consider the impact of their actions on society, the economy, and the environment, not just their financial bottom line.

Question 2

Which of the following is not one of the examples provided as an organizational benefit received from being socially responsible?

Accepted Answer

The statement "They are guaranteed to maximize resource productivity and reduce the average payback period of investment" is not a typical benefit of social responsibility and is not mentioned as one of the examples given in the question. The other options (A, B, C, and E) are all examples of organizational benefits received from being socially responsible.

Question 3

The term "social responsibility," according to Archie Carroll, can be viewed as a combination of an

Accepted Answer

A

Question 4

Milton Friedman's position on social responsibility

Accepted Answer

Milton Friedman famously argued that the primary responsibility of business executives is to their shareholders, suggesting that businesses should focus on profit maximization within the bounds of the law and ethical custom. Over time, the emphasis on corporate social responsibility (CSR) has grown, and many business leaders now see value in broader social and environmental considerations, indicating a shift away from Friedman's narrower view.

Question 5

Which one of the following is not one of the arguments against social responsibility as used by economist Milton Friedman?

Accepted Answer

This argument is not one of the ones presented by Milton Friedman. He argued that a company's social responsibility is solely to increase profits within the rules of the game, and that spending money on social responsibility could harm the company and society in the long run. He also argued that spending money on social responsibility is using the stockholder's money for a general social interest, and that it could make the company less efficient and cause price increases or postponement of growth.

Question 6

Providing daycare centers to employees is an example of which of Archie Carroll's responsibilities?

Accepted Answer

Providing daycare centers to employees falls under the category of discretionary responsibility. This means that it is not required by law or economic constraints, but rather it is a voluntary action that a company can take to improve the well-being of its employees.

Question 7

Economist Milton Friedman has argued that a business's only responsibility is to

Accepted Answer

Milton Friedman argued that businesses have a sole responsibility to maximize profits and stay within the rules of the game. He believed that businesses should not be responsible for promoting the welfare of society or satisfying the needs of employees or customers, as those were the responsibilities of government and individuals, respectively. This view is known as the shareholder theory, which asserts that a company's primary duty is to its shareholders and their financial interests.

Question 8

A 2012 survey of 169 CFOs at publicly traded companies in the United States found what percent intentionally misrepresented their economic performance primarily to influence stock price?

Accepted Answer

The survey found that 20% of CFOs intentionally misrepresented their economic performance primarily to influence stock price.

Question 9

Archie Carroll contends that the primary goal of business is profit maximization.

Accepted Answer

While profit maximization is certainly an important goal for businesses, Archie Carroll's conceptual framework of corporate social responsibility (CSR) argues that businesses have additional responsibilities beyond just making profits, including economic, legal, ethical, and philanthropic responsibilities. Therefore, profit maximization is not the primary goal of business according to Carroll's framework.

Question 10

Archie Carroll proposes that managers in companies have four responsibilities: economic, legal, ethical, and discretionary.

Accepted Answer

Archie Carroll's model of corporate social responsibility identifies four responsibilities that managers in companies have, which are economic, legal, ethical, and discretionary.

Question 11

Archie Carroll's four responsibilities listed in order of priority are

Accepted Answer

Carroll's pyramid of CSR places economic responsibilities as the foundation, followed by legal, ethical, and finally discretionary (philanthropic) responsibilities at the top, indicating a prioritization from basic to aspirational levels of corporate social responsibility.

Question 12

Who said that the social responsibility of business is a "fundamentally subversive doctrine" and that the one social responsibility of business is "to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game..."?

Accepted Answer

This statement was made by Milton Friedman in his article "The Social Responsibility of Business is to Increase its Profits" published in The New York Times Magazine in 1970.

Question 13

Being socially responsible

Accepted Answer

Being socially responsible can open doors in local communities, leading to positive relationships with customers, suppliers, and other stakeholders. It can enhance a company's overall reputation and build consumer trust. While there may be costs associated with being socially responsible, research has shown that it can ultimately have a positive impact on a company's financial performance. Being socially responsible can also be balanced with profit maximization, as it can often lead to cost savings, enhanced brand image, and increased customer loyalty.

Question 14

Friedman referred to the social responsibility of business as a "fundamentally subversive doctrine."

Accepted Answer

Friedman believed that the only social responsibility of business is to increase profits for shareholders and that any other attempt by businesses to address social or environmental issues would undermine the free market system. Therefore, he considered the idea of social responsibility of business to be subversive, as it would disrupt the traditional role of businesses in society.

Question 15

The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known as

Accepted Answer

The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known as social responsibility. Social responsibility refers to the idea that businesses should not only focus on maximizing profits but also consider the impact of their actions on society and the environment.

Question 16

According to Archie Carroll, the responsibilities defined by government in laws for management to obey are

Accepted Answer

According to Archie Carroll's Corporate Social Responsibility pyramid, the bottom level represents the legal responsibilities of a company, which are defined by government laws and regulations. Therefore, the best choice is A - legal responsibilities.

Question 17

According to Archie Carroll, the responsibility that management of a business organization has to produce goods and services of value to society so that the firm may repay its creditors and stockholders is called

Accepted Answer

Economic responsibilities refer to the obligation of businesses to produce goods and services of value to society at a reasonable cost, so that the firm may repay its creditors and stockholders. These responsibilities relate to the business's economic impact on society, such as providing jobs, paying taxes, and contributing to the economy.

Question 18

According to Archie Carroll, the responsibilities that management of a business organization assumes which are purely voluntary obligations are

Accepted Answer

Discretionary responsibilities are those assumed by management voluntarily, which are not required by laws, regulations or ethical standards. These responsibilities are also known as philanthropic responsibilities and include activities such as corporate social responsibility, charitable donations and community development programs.

Question 19

As societal values evolve, it is likely that the ________ responsibilities of today may become the ________ responsibilities to tomorrow.

Accepted Answer

Societal values often dictate evolving expectations of corporate responsibility, resulting in what were previously considered discretionary responsibilities becoming ethical responsibilities. Economic responsibilities (choice A) are always a core responsibility of business, while legal responsibilities (choice B) are usually clear-cut and do not necessarily evolve with changing societal values. Discretionary responsibilities (choice C) are those that are completely voluntary and philanthropic in nature, and can evolve based on societal expectations. Therefore, option D and E are eliminated, because the change of responsibilities is more from discretionary to ethical rather than economic or legal.

Question 20

Society generally expects firms to work with employees and the company to plan for layoffs. This is an example of which of Archie Carroll's responsibilities?

Accepted Answer

This is an example of ethical responsibility, as it goes beyond legal requirements and involves doing what is right and fair in terms of respecting the rights and dignity of employees during layoffs.

Quiz 3: Social Responsibility and Ethics in Strategic Management