Question 1

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

Accepted Answer

Both examples involve the responsibility of corporations towards their stakeholders, whether it be their customers (Lumber Liquidators) or the environment and public health (Volkswagen and Audi). It is not bureaucratic overstepping as these companies were caught engaging in unethical or illegal behavior. It is also not Milton Friedman's concept of social responsibility as he argued that a business's only responsibility is to maximize profits for shareholders.

Question 2

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

Accepted Answer

The answer of The United Nations' Principles of Responsible Management...

Question 3

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

Accepted Answer

It is not necessarily true that lack of dissatisfaction indicates satisfaction. Stakeholders may not express their dissatisfaction for various reasons, such as fear of retribution or lack of awareness of their rights. Therefore, it is important for firms to actively seek feedback from stakeholders to ensure their satisfaction.

Question 4

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

Accepted Answer

The answer of For long-term success,a firm should focus on...

Question 5

The definition of what is and is not socially responsible is

Accepted Answer

Social responsibility is a subjective and constantly-evolving concept that is influenced by cultural norms, stakeholder values, and changing societal expectations. While laws and regulations provide a foundation for what is legally required, they may not capture the full scope of what stakeholders consider to be socially responsible behavior. Therefore, it is up to stakeholders to determine what actions are considered socially responsible in a given context. The United Nations' Principles of Responsible Management Education (PRME) provide guidance and a framework for businesses to incorporate social responsibility into their operations, but ultimately, it is up to individual stakeholders to determine what constitutes socially responsible behavior.

Question 6

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

Accepted Answer

All stakeholders, including individuals, businesses, governments, and organizations, have a responsibility to actively participate in shaping the society in which they operate. This includes advocating for policies that promote social, economic, and environmental sustainability, as well as supporting initiatives that create positive change in their communities. By working together, stakeholders can help to build a more equitable and just society for all.

Question 7

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

Accepted Answer

All of the listed options are included in the United Nations' Principles of Responsible Management Education (PRME). These principles aim to promote a more sustainable and inclusive economy through education, engaging with stakeholders and fostering dialogue on critical issues related to social responsibility and sustainability.

Question 8

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

Accepted Answer

While there is an increasing awareness of socially responsible business practices, consumers generally prioritize price and quality when making purchasing decisions. While some consumers are willing to pay a premium for products that align with their values, overall, price and quality continue to be the primary drivers of consumer behavior.

Question 9

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

Accepted Answer

While it is important for firms to incorporate CSR into their business practices, it may not always be beneficial to be too far ahead of the curve. Consumers may not yet be fully educated on or interested in certain CSR issues, and firms that invest heavily in them may not see a direct return on investment. It is important to find a balance between being socially responsible and financially successful.

Question 10

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

Accepted Answer

Corporate social responsibility (CSR) refers to a company's responsibility to consider the social, economic, and environmental impacts of its business activities and to act in a way that takes into account the interests of its stakeholders, which include employees, customers, investors, local communities, and society as a whole. Consequently, it involves companies going beyond legal compliance to address the needs of various stakeholders through voluntary actions designed to make a positive impact on society and the environment. Therefore, CSR is integrated into a company's overall business strategy and decision-making processes to promote ethical, sustainable, and socially responsible behavior.

Question 11

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.

Accepted Answer

The answer of The textbook's author states,"We do not need...

Question 12

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.

Accepted Answer

The answer of The CSR debate is often characterized as...

Question 13

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

Accepted Answer

The text argues that CSR is not only a corporate responsibility but also a stakeholder responsibility, meaning that businesses have a duty to consider the interests of all those affected by their actions, including employees, customers, suppliers, the environment, and the wider community.

Question 14

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

Accepted Answer

Milton Friedman famously argued that the primary responsibility of a business is to its shareholders, emphasizing profit maximization, while Charles Handy has advocated for a broader view of business purposes, including social responsibilities and the well-being of employees and communities.

Question 15

Firms who do not act responsibly always face negative consequences.

Accepted Answer

While acting irresponsibly can lead to negative consequences for firms, such as legal penalties, loss of reputation, or financial losses, it is not always the case. Some firms may not face immediate or significant consequences due to factors like lack of enforcement, market dominance, or short-term gains that overshadow the irresponsible behavior.

Question 16

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

Accepted Answer

Companies are more likely to continue to act socially responsible if it aligns with their economic interests or enhances their reputation, rather than solely because it is the right thing to do. Economic incentives and public perception often drive corporate social responsibility efforts.

Question 17

Social responsibility is more than a set of abstract standards.

Accepted Answer

Social responsibility involves concrete actions and behaviors that organizations take towards promoting the well-being of society and the environment, rather than just following abstract standards or guidelines. It involves taking into account the impact of one's actions on others and on the world around us, and making ethical and sustainable choices that benefit everyone.

Question 18

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

Accepted Answer

The text implies that "untrammeled consumption" has damaging consequences in environmental, psychological, and sociological domains, but not in the economic domain.

Question 19

Recent research has indicated that

Accepted Answer

Studies have shown that people tend to be more honest in the morning. This phenomenon is often attributed to the concept of "moral fatigue," where as the day progresses, individuals may become more mentally fatigued, which can affect their ability to make ethical decisions.

Question 20

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

Accepted Answer

The Gallup "Annual Honesty and Ethics poll" consistently shows low trust in business executives' ethics, with never more than 25% of respondents rating their ethics as "high" or "very high."

Quiz 5: Corporate Stakeholder Responsibility