Question 1

Allex Corp. has received a request from a charitable organization for a donation of $100,000 to help fund its activities. The CEO knows that the Board of Directors of Allex has made it clear that the company will adhere to a "defensive" strategy in terms of its social responsibility posture. How should the CEO respond to the request from the charitable organization?

Accepted Answer

As the company has a defensive strategy in terms of social responsibility, the CEO should not grant the request for a donation of $100,000. Choosing option C, to not grant the request, is the most appropriate response in this situation.

Question 2

IBP, a large meat processing firm, has a record of violating environmental regulations, labour laws, and food processing laws, and then trying to cover up its offenses. IBP has adopted a(n) ________ stance to social responsibility.

Accepted Answer

IBP's actions of violating regulations and attempting to cover up its offenses align with an obstructionist stance to social responsibility, where a company does everything it can to block or avoid accepting responsibility for its actions.

Question 3

Which of the following illustrates the defensive stance to social responsibility?

Accepted Answer

Placing warning labels on products is a defensive stance to social responsibility because it is a response to government regulations and potential legal issues. The other options describe more proactive or voluntary actions taken by companies.

Question 4

The conversion of waste materials into useful products is called

Accepted Answer

Recycling is the process of converting waste materials into useful products by transforming them into raw materials for new products. This process helps to reduce waste and conserve resources. Solid waste recovery and biomass are related to recycling, but they do not encompass the full process of converting waste materials into useful products. Acid rain and toxic waste disposal are not related to the conversion of waste materials into useful products.

Question 5

Which statement would people in favor of socially responsible business most likely advocate?

Accepted Answer

People in favor of socially responsible business believe that corporations have a civic responsibility to contribute positively to society and to operate in an ethical and sustainable manner. Therefore, they would advocate for choice B, which states that the corporation is part of the civic world. The other choices (maximizing profits, outsourcing social programs, overuse of resources, and centralizing civic responsibility) would not align with the values of socially responsible business.

Question 6

Which of the following is not an argument against a socially responsible role by a business firm?

Accepted Answer

B) is not an argument against a socially responsible role by a business firm; rather, it suggests a reason why businesses should help solve societal problems, implying a support for corporate social responsibility.

Question 7

Damage to the environment by strip mining is associated with which of the following types of pollution?

Accepted Answer

Land pollution is caused by strip mining because it removes the topsoil, which is the most fertile layer of soil. This can lead to erosion, which can damage water quality and wildlife habitat.

Question 8

McDonald's established Ronald McDonald House to provide lodging for families of children who are hospitalized away from home. This approach to social responsibility would best be classified as a(n)

Accepted Answer

McDonald's establishment of Ronald McDonald House shows a proactive stance towards social responsibility. This is because it goes beyond meeting its legal obligations and actively seeks to address social issues in the communities where it operates. It shows a willingness to invest resources and take action to make a positive impact on society.

Question 9

A poll of 12 000 people in 11 different countries revealed that ________ percent of those polled were willing to spend extra money to fight climate change.

Accepted Answer

The answer of A poll of 12 000 people in...

Question 10

Biggar Foods wants to take a proactive stance towards social responsibility. This means that

Accepted Answer

Taking a proactive stance towards social responsibility means seeking out opportunities to contribute to the well-being of society, beyond the minimum legal requirements. It involves actively identifying and addressing social concerns, rather than simply responding to them when asked. Options A, B, D, and E do not reflect a proactive approach towards social responsibility.

Question 11

Dangerous chemical and/or radioactive byproducts of various manufacturing processes are called

Accepted Answer

Dangerous chemical and/or radioactive byproducts are referred to as toxic waste.

Question 12

Wilson Products installed a low-quality fire alarm in its facility in compliance with local regulations. The owner stated, "We've never had a fire and we don't actually need such a system, but I am forced to install it because of local regulations. I therefore didn't want to pay too much for the system." Which of the following stances toward social responsibility is evident here?

Accepted Answer

The stance evident in this scenario is defensive because the owner is only complying with regulations to avoid legal issues and is not taking any additional action beyond the minimum requirement.

Question 13

Under the Canadian and Ontario Environmental Protection Act, liability for a business firm can run as high as ________ per day.

Accepted Answer

According to the Canadian and Ontario Environmental Protection Act, the maximum liability that a business firm can face per day is $2,000,000. This includes fines, penalties, and costs for any damages caused to the environment. It is important for businesses to take the necessary steps to prevent any environmental harm to avoid facing such penalties.

Question 14

In Canada and the United States, tobacco companies are required to include warnings to smokers on their products and to limit advertising to prescribed media. Within Canada and the United States, they follow these rules but often use more aggressive methods in countries with no such rules. As such, tobacco companies typically adopt a(n) ________ stance to social responsibility in marketing their products.

Accepted Answer

Tobacco companies adopt a defensive stance by complying with regulations in countries where they exist but not going beyond what is required, and using aggressive marketing in countries without such regulations.

Question 15

Exxon's response to the Valdez oil spill in Alaska some years ago has been criticized on several fronts. Some say the company waited too long to respond, and that when the response came it was very weak. But Exxon points out that they cleaned up the spill and that they have gone out of their way to bring the area back to conditions that existed before the spill. This stance to social responsibility would best be classified as

Accepted Answer

Exxon's response can be classified as accommodative as they took steps to clean up the spill and brought the area back to its previous condition, but did not go above and beyond what was necessary. They were not defensive or obstructionist as they did take responsibility for the spill and took action to address it. They also were not classified as charitable or proactive as they did not make any significant efforts beyond what was necessary to address the spill.

Question 16

Yorkton Electric has taken an accommodative stance towards social responsibility. This means that

Accepted Answer

An accommodative stance towards social responsibility means that the company will respond to social concerns beyond the bare minimum if specifically asked. This suggests that Yorkton Electric will make an effort to do more than what is legally required, but will not necessarily take a proactive position on social issues.

Question 17

Hi-Fly, Inc. was accused of discharging residue from its production processes into a nearby pond on the company's premises. When challenged about this, the owner said, "We own the pond, and we can do whatever we want on our private property." Which of the following approaches to social responsibility does this attitude indicate?

Accepted Answer

The obstructionist approach to social responsibility is indicated by the owner's attitude, as it reflects a stance of resistance or denial of responsibility towards social or environmental issues, prioritizing the company's interests even at the expense of the public or environmental well-being.

Question 18

Acme Inc. meets its legal and ethical requirements. In addition, Acme donates $50 000 each year to local charities, but only when a request is made. Which of the following approaches to social responsibility is evident here?

Accepted Answer

The fact that Acme Inc. is meeting its legal and ethical requirements indicates a minimum level of social responsibility. However, their donation of $50 000 to local charities is an example of an accommodative approach, where the organization is willing to do more than the minimum requirements to contribute to society. The condition that donation will be made only upon request is also a sign of an accommodative approach, as the company is responding to specific demands from the community.

Question 19

The CEO of TRA Corp. has stated publicly that his company will do everything that is legally required of it, but it will not contribute to charitable causes. TRA Corp.'s position is consistent with which stance to social responsibility?

Accepted Answer

The CEO's statement aligns with a defensive stance towards social responsibility, indicating that the company will fulfill its legal obligations but will not voluntarily engage in additional social or charitable activities. This approach focuses on compliance and defense of the company's actions rather than proactive social contribution.

Question 20

Mandex Corporation has a history of covering up mistakes that are made by its employees rather than fixing the mistakes. This company is taking a(n) ________ approach to social responsibility.

Accepted Answer

An obstructionist approach to social responsibility involves a company doing as little as possible and may involve attempts to deny or cover up violations. Mandex Corporation's behavior of covering up mistakes rather than fixing them aligns with this approach.

Quiz 3: Conducting Business Ethically and Responsibly