Question 1

Managers pursue sustainability because it serves as a catalyst for innovation.

Accepted Answer

Pursuing sustainability often requires managers to think creatively and find new solutions, which in turn can lead to innovation in products, processes, and strategies. Sustainability can also inspire employees, attract customers, and enhance a company's reputation and brand, all of which can drive competitiveness and growth.

Question 2

The Sarbanes-Oxley Act prohibits retaliation by employers against whistle-blowers.

Accepted Answer

The Sarbanes-Oxley Act does indeed prohibit retaliation by employers against whistle-blowers. This protection is intended to encourage individuals to report wrongdoing without fear of repercussions from their employers.

Question 3

Managers who have successfully increased the value of the organization have fulfilled their social obligation towards ________.

Accepted Answer

Stockholders are owners of the organization and their primary concern is the financial return on their investment. Hence, managers who increase the value of the organization ultimately benefit the stockholders and fulfill their social obligation towards them.

Question 4

Which of the following statements is true about the social responsiveness approach?

Accepted Answer

The social responsiveness approach recognizes that businesses have both economic and societal goals and that they have an obligation to anticipate potential social problems and actively work to prevent them. This approach acknowledges that businesses can have a positive impact on society while still fulfilling their economic objectives.

Question 5

Tangarine, a detergent manufacturer, realizes that a malfunction of one of its automated machines has significantly altered the composition of the detergent. Continued exposure to this altered detergent can cause skin cancer in the long-term. The social obligation to which of its stakeholders is Tangarine violating?

Accepted Answer

Tangarine is violating its obligation towards the customers who use the detergent and face the potential risk of developing skin cancer.

Question 6

Which of the following arguments provided by Milton Friedman suggests that corporate social responsibility may be unethical?

Accepted Answer

Milton Friedman argued that the primary responsibility of businesses was to maximize profits for their shareholders. He believed that resources spent on corporate social responsibility initiatives were essentially a use of shareholder funds for purposes not approved by shareholders. In this argument, Friedman suggests that spending money on CSR may be unethical as it takes away resources that rightfully belong to shareholders.

Question 7

Sustainability is the degree to which a person or entity can put its competitors out of business.

Accepted Answer

Sustainability refers to the ability of a person or entity to maintain a certain level of operation and efficiency over time without causing damage to the environment or depleting resources. It does not involve putting competitors out of business.

Question 8

The term triple bottom-line emphasizes that managers should focus on building organizations that are sustainable in economic, environmental, and societal activities.

Accepted Answer

The answer of The term triple bottom-line emphasizes that managers...

Question 9

Lebron wants to file a complaint against EatFry, a fast-food restaurant, because he was rejected in a job interview with the firm. Lebron believes that he was discriminated because of race. Which of the following federal agencies should he approach?

Accepted Answer

The Equal Employment Opportunity Commission (EEOC) is responsible for investigating complaints of discrimination by private and government employers based on race, color, religion, sex, national origin, age, disability, or genetic information under Title VII of the Civil Rights Act. Therefore, Lebron should approach EEOC to file a complaint against EatFry.

Question 10

Managers can fulfill their social obligation towards government agencies by ________.

Accepted Answer

Managers fulfill their social obligation towards government agencies primarily by abiding by the laws, which includes regulations and legal standards set forth by governmental bodies.

Question 11

Managers can fulfill their social obligation towards consumers by ________.

Accepted Answer

Fulfilling the social obligation towards consumers involves providing safe products that meet their needs and do not pose any harm to them. This can improve customer loyalty and trust, leading to increased sales and profits for the organization. Abiding by laws and repaying debts are important ethical responsibilities, but they do not directly address the needs and safety of consumers. Providing safe working environments is a social obligation towards employees, not consumers. Increasing the value of the organization can benefit stakeholders, but it is not directly related to fulfilling social obligations towards consumers.

Question 12

The primary function of the Office of Federal Contract Compliance Programs is to ensure that employers holding federal contracts ________.

Accepted Answer

The Office of Federal Contract Compliance Programs exists to ensure that employers holding federal contracts provide equal employment opportunities to people regardless of their race, color, sex, religion, national origin, disability, or status as a protected veteran. It does not have jurisdiction over safety, health, environmental, or consumer protection regulations.

Question 13

Which of the following is the primary function of the Consumer Product Safety Commission?

Accepted Answer

The primary function of the Consumer Product Safety Commission is to protect the public from unreasonable risks of injury or death associated with the use of consumer products. It does this by promoting clarity of manufacturers' product design, label, and other messages to reduce consumer misunderstanding.

Question 14

Which of the following is the primary function of the Equal Employment Opportunity Commission?

Accepted Answer

The Equal Employment Opportunity Commission investigates and conciliates employment discrimination complaints that are based on race, sex, or creed. Its primary function is to ensure equal employment opportunities for all individuals.

Question 15

Social responsiveness can be defined as ________.

Accepted Answer

Social responsiveness refers to the degree and effectiveness with which an organization fulfills its social responsibilities. It involves anticipating changes in societal needs and actively responding to them in a timely manner. Option A refers to agility, option B refers to legal compliance, option C refers to stakeholder management, and option E refers to foresight.

Question 16

Which of the following statements is true about the social obligation approach?

Accepted Answer

The social obligation approach considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.

Question 17

Which of the following statements is true about corporate social responsibility?

Accepted Answer

Corporate social responsibility (CSR) refers to the responsible actions taken by companies to improve the well-being of society while also considering the interests of the organization. This definition reflects option C, which states that managerial obligation includes taking actions to protect and improve the welfare of society as well as the interests of the organization. Option A refers to accountability mechanisms that reduce agency problems, while option B mentions only the needs of stockholders and abiding by laws, which is not a complete definition of CSR. Option D is also slightly misleading, as it implies that CSR is simply about following laws, whereas it is a more proactive concept aimed at promoting social good. Option E refers to ethical decision-making, which is a part of CSR, but not the whole picture.

Question 18

In the Davis Model of Corporate Social Responsibility, Proposition 1 states that social responsibility arises from social power. This proposition is derived from the premise that ________.

Accepted Answer

The proposition that social responsibility arises from social power is derived from the premise that business has a significant amount of influence on critical social issues such as minority employment and environmental pollution. This suggests that businesses have an obligation to use their social power to address these issues and take responsibility for the impact of their actions on society.

Question 19

Which of the following propositions of the Davis Model of Corporate Social Responsibility states that business cannot be expected to completely finance activities that may be socially advantageous but economically disadvantageous?

Accepted Answer

Proposition 4 of the Davis Model of Corporate Social Responsibility states that the social costs related to each activity, product or service shall be passed on to the consumer. This means that businesses cannot be expected to completely finance socially advantageous activities if it will result in economic disadvantage for the company. The proposition acknowledges that businesses have a responsibility to consider social costs, but ultimately consumers must bear some of that burden.

Question 20

The social responsibility approach sees business as having ________.

Accepted Answer

The answer of The social responsibility approach sees business as...

Quiz 3: Corporate Social Responsibility, Ethics, and Sustainability