Question 1

Those arguing against being socially responsible might make the claim that costs for social goals are ultimately ________.

Accepted Answer

Those against social responsibility argue that companies that engage in social goals will ultimately pass on the costs to consumers in the form of higher prices. They do not believe that these costs will be absorbed by the company or paid for by those being helped.

Question 2

Supporters of social responsibility claim that being socially responsible ________.

Accepted Answer

Being socially responsible may require some initial investment or changes in business practices, but in the long run, it can benefit a company. Customers, investors, and employees are increasingly looking for companies that are socially responsible, and companies that meet these expectations can enjoy greater loyalty and positive reputations. Additionally, social responsibility may lead to cost savings through efficiencies in operations or reduced risk of legal or ethical violations.

Question 3

The classical view of social responsibility holds that spending time, money, labor, or energy to improve society's welfare would ________.

Accepted Answer

The classical view of social responsibility, often associated with economist Milton Friedman, argues that a company's primary responsibility is to its shareholders and that dedicating resources to social welfare beyond what is required for profit maximization is essentially diverting resources that could otherwise be used to generate profits for those shareholders.

Question 4

When a company does the minimum that the law requires, it is meeting its ________.

Accepted Answer

When a company does the minimum that the law requires, it is meeting its social obligation. This means it is doing only what is legally required, without going beyond these requirements to address broader social or ethical issues.

Question 5

Proponents of the socioeconomic view of social responsibility believe that being socially responsive is ________.

Accepted Answer

Proponents of the socioeconomic view believe that being socially responsible is good for business, as it helps to improve the reputation and image of the organization, attract customers and employees, and enhance overall business performance.

Question 6

Most studies have shown that companies that engage in social involvement ________.

Accepted Answer

Most studies indicate that companies engaging in social involvement typically see a small positive benefit, such as improved brand image or customer loyalty, rather than enormous benefits or negative effects.

Question 7

People who doubt that there is a relationship between company performance and social involvement think that this could account for any positive performance effect seen in companies that practice social involvement.

Accepted Answer

The statement suggests that doubters believe that only successful companies can afford to allocate resources towards social involvement. Therefore, the correct choice is C - the only companies that practice social involvement are highly successful companies that can afford to waste time and energy on social involvement as a "luxury."

Question 8

The socioeconomic view is that management's social responsibility goes beyond making profits to include ________.

Accepted Answer

The socioeconomic view of management's social responsibility is based on the idea that businesses are not only responsible for making profits, but also for protecting and improving the welfare of society as a whole. This view argues that businesses have a duty to promote social justice, reduce poverty, and address other social and environmental issues, even if doing so may not be immediately profitable. Option A is incorrect as inciting people to rise up against injustice could be seen as encouraging violence, which is not something that businesses should do. Option C is incorrect as sacrificing its own welfare is not a sustainable approach for a business. Option D is incorrect as prosecuting wrongdoers is the role of law enforcement, not businesses.

Question 9

Which of the following is NOT an argument against the idea that companies should be socially responsible?

Accepted Answer

Public expectations are generally an argument in favor of companies being socially responsible, not against it. The idea is that society expects companies to act responsibly and contribute positively to the community, which supports the argument for corporate social responsibility.

Question 10

"Lack of accountability" argues against a firm being socially responsible by saying that once actions are taken there is no one ________.

Accepted Answer

The lack of accountability means that there is no one who takes responsibility if things go wrong. This goes against the idea of social responsibility, where companies should take responsibility for their actions and the impact they have on society and the environment.

Question 11

The argument against social responsibility that states that pursuing goals other than making profits diverts a company away from its primary goal of making profits is known as ________.

Accepted Answer

The argument that pursuing goals other than making profits diverts a company away from its primary goal of making profits is known as dilution of purpose. This argument suggests that social responsibility initiatives may negatively impact a company's profitability and financial performance.

Question 12

One prominent argument against being socially responsible makes the claim that business managers are ________ to address social concerns.

Accepted Answer

The argument against business managers being socially responsible often centers on the belief that they lack the necessary competence or expertise to effectively address social concerns, as their primary expertise and responsibilities lie in managing businesses, not in solving social issues.

Question 13

Since businesses have more power and resources than ordinary individuals, supporters of social responsibility claim that businesses have ________.

Accepted Answer

Because businesses have more power and resources than ordinary individuals, they have a greater capacity to impact society and its well-being. Therefore, supporters of social responsibility argue that businesses have a greater moral obligation to act in a socially responsible way.

Question 14

A factory that has adhered to all pollution control standards has ________.

Accepted Answer

Meeting pollution control standards is a necessary condition for a factory to fulfill its social obligation to not pollute the environment and cause harm to society. Therefore, the factory has met its social obligation. However, it is possible that the factory is only adhering to the standards to avoid fines and legal consequences, and may not necessarily be socially responsive, economically responsible, or ethical.

Question 15

Suppose that a study shows that companies that were not socially involved tended to be less profitable than socially involved companies.Which of the following can be concluded?

Accepted Answer

The study only shows a correlation between social involvement and profitability, not a causal relationship. Therefore, it is possible that social involvement may lead to increased profitability, but it is also possible that increased profitability leads to more engagement in social initiatives. Thus, the correct conclusion would be that social involvement may cause a company's profits to increase.

Question 16

________ dictates that being socially responsible is the "right thing to do."

Accepted Answer

Ethical obligation dictates that organizations have a responsibility towards society and the environment. This means that companies should not only evaluate their bottom line, but also the social and environmental consequences of their actions. It is considered to be the "right thing to do" because it reflects the values and morals that society expects from organizations.

Question 17

When a firm advertises that it only uses recycled paper products, it is ________.

Accepted Answer

By advertising the use of recycled paper products, the firm is being socially responsive, as it is voluntarily taking action to address a societal issue (environmental sustainability).

Question 18

The socioeconomic view of social responsibility states that a business ________.

Accepted Answer

The socioeconomic view of social responsibility posits that businesses are not just economic entities but also have moral obligations to their stakeholders and the broader society, making them moral agents.

Question 19

Supporters of socially responsible businesses claim that by becoming socially responsible, businesses can expect ________.

Accepted Answer

By demonstrating social responsibility, businesses can show that they are acting in the best interests of society and the environment, which may lead to fewer government regulations and intervention as the public trusts them to self-regulate.

Question 20

Social responsiveness refers to the capacity of a firm to ________.

Accepted Answer

Social responsiveness refers to a firm's ability to address some pressing public need, such as by providing support for social causes, promoting sustainability, or engaging in philanthropy. While following regulations and being ethical are important aspects of corporate responsibility, they do not necessarily capture the full scope of social responsiveness. Similarly, while being a role model may be a desirable outcome of social responsibility, it is not a defining characteristic.

Quiz 3: Integrative Managerial Issues