Question 1

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 2

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

Accepted Answer

Social responsibility is the concept that private corporations have responsibilities to society that go beyond just making a profit. This includes being socially responsible in terms of corporate social responsibility, consumer protection, community involvement, and environmental stewardship. The other answer choices are not typically associated with this concept.

Question 3

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

Accepted Answer

Archie Carroll's "Four Responsibilities of Business" model suggests that businesses have four responsibilities: economic, legal, ethical, and philanthropic. While achieving profits is certainly an important part of the economic responsibility, it is not the primary or sole goal of business. Rather, businesses must balance their economic goals with their legal, ethical, and philanthropic responsibilities in order to be successful and sustainable over the long term.

Question 4

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

Accepted Answer

Discretionary responsibilities are voluntary actions taken by a company to improve society and are often driven by ethical considerations. As societal values evolve, what was once considered discretionary may become expected and therefore ethical responsibilities. Economic and legal responsibilities are more concrete and less likely to change with evolving societal values.

Question 5

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

Accepted Answer

Friedman believed that the social responsibility of business was to increase profits and that any other social or ethical responsibilities were the role of individuals or the government, making the idea of social responsibility a threat to the traditional role of business in society.

Question 6

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 7

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

Accepted Answer

Guaranteeing to maximize resource productivity and reduce the average payback period of investment is not a commonly cited organizational benefit of being socially responsible. The other choices are all commonly cited benefits, such as attracting top talent, gaining brand loyalty, and attracting capital investment.

Question 8

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.

Question 9

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

Accepted Answer

Discretionary responsibilities are voluntary and not required by law, ethics or economics.

Question 10

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 responsibility of a business to produce goods and services of value to society, which in turn generates revenue for the firm to repay its creditors and stockholders. Legal responsibilities refer to complying with the laws and regulations, ethical responsibilities refer to doing what is right and just, financial responsibilities refer to managing financial resources effectively, and discretionary responsibilities refer to voluntarily contributing to society.

Question 11

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

Accepted Answer

According to Archie Carroll's CSR pyramid, legal responsibilities refer to the responsibilities that companies have to follow the laws and regulations set by the government. These laws are mandatory and a company could face legal consequences if they fail to comply with them. Therefore, legal responsibilities are the responsibilities defined by government in laws for management to obey.

Question 12

Being socially responsible

Accepted Answer

Companies that are socially responsible can open doors in local communities and enhance their reputation.

Question 13

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 describes four responsibilities of managers in companies: economic, legal, ethical, and discretionary.

Question 14

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

Accepted Answer

The answer of The term "social responsibility," according to Archie...

Question 15

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

According to the survey, 20% of CFOs intentionally misrepresented their economic performance primarily to influence stock price.

Question 16

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 quote is famously attributed to economist Milton Friedman in his essay "The Social Responsibility of Business is to Increase its Profits" published in The New York Times Magazine in 1970. He argues that businesses should focus solely on profit-making and let governments and individuals address social problems.

Question 17

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

Accepted Answer

Providing daycare centers to employees goes beyond the economic, legal, and ethical responsibilities of a company. It is a discretionary responsibility, also known as philanthropic responsibility, where the company voluntarily takes actions that aim to improve the well-being of its employees or society as a whole.

Question 18

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

Accepted Answer

Milton Friedman believed that a business's only social responsibility is to make a profit within the rules of the game. This means that businesses should focus on maximizing profits for their shareholders and stay within legal and ethical boundaries. Other responsibilities such as promoting the welfare of society or satisfying employees and customers are not the primary goal of a business according to Friedman's theory.

Question 19

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

Accepted Answer

Friedman's arguments were:
A) Spending money for social responsibility is spending the stockholder's money for a general social interest.
C) Spending money on social responsibility is acting from motives other than economic and may, in the long run, cause harm to the very society the firm is trying to help.
D) There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.
E) Through taking on the burden of social costs, the organization becomes less efficient, causing price increases or postponement of growth.

Option B is not one of the arguments put forth by Milton Friedman.

Question 20

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 implies that corporations have a duty to act in the best interest of society, and not just to maximize profits for shareholders.

Quiz 3: Social Responsibility and Ethics in Strategic Management