Question 1

In order for a business to be sustainable,it must satisfy which of Carroll's responsibilities?

Accepted Answer

A sustainable business must fulfill all four responsibilities identified by Carroll: economic (earning profits), legal (obeying laws and regulations), ethical (doing what is right and just), and discretionary (contributing to societal well-being beyond legal requirements). Ignoring any one of these responsibilities can harm the long-term success and reputation of a business.

Question 2

The first step in stakeholder analysis is identifying those who have only an indirect stake in the corporation.

Accepted Answer

The first step in stakeholder analysis is identifying those who have a direct stake in the corporation. Indirect stakeholders come later in the analysis.

Question 3

All of the following are considered primary stakeholders EXCEPT

Accepted Answer

Governments are not considered primary stakeholders, as they typically do not have a direct financial or operational interest in the company. Primary stakeholders are those who are directly affected by the organization's actions and outcomes, such as customers, employees, shareholders, and creditors.

Question 4

Being known as a socially responsible firm may provide a company with social capital that can be used for competitive advantage.

Accepted Answer

Being known as a socially responsible firm can increase consumer trust, promote employee satisfaction, and attract socially conscious investors, which in turn can provide a competitive advantage. This is known as social capital.

Question 5

All of the following are considered secondary stakeholders EXCEPT

Accepted Answer

Suppliers are considered primary stakeholders because they directly engage in transactions with the company, providing essential goods and services needed for the company's operations.

Question 6

Stakeholders are all constituencies that affect and are affected by the achievement of the firm's objectives.

Accepted Answer

This is the definition of stakeholders as recognized by management scholars and practitioners.

Question 7

Ethical responsibilities are voluntary obligations a corporation assumes.

Accepted Answer

Ethical responsibilities are not voluntary but rather a necessary part of conducting business ethically and responsibly. They include obligations such as being honest and transparent, respecting human rights, and minimizing harm to the environment. Ignoring these responsibilities can lead to legal and reputational consequences for a corporation.

Question 8

A study concerning social responsibility indicates that socially responsible firms are more likely to be welcomed into another country.

Accepted Answer

Socially responsible firms are perceived positively and are more likely to have good relationships with stakeholders, including government officials and local communities, which can lead to a warm welcome in a new country.

Question 9

An overarching strategy that explicitly communicates the firm's ethical relationship with its stakeholders is

Accepted Answer

The answer of An overarching strategy that explicitly communicates the...

Question 10

According to Carroll,legal responsibilities are defined by governments in laws that management is expected to obey.

Accepted Answer

Carroll defines legal responsibilities as obligations that are defined by governments through laws and regulations, and management is expected to comply with them to avoid legal consequences.

Question 11

The difference between ethical and discretionary responsibilities is that few people expect an organization to fulfill ethical responsibilities.

Accepted Answer

The statement is incorrect. Ethical responsibilities are expected to be fulfilled by organizations, whereas discretionary responsibilities are not expected but rather seen as optional actions that demonstrate social responsibility.

Question 12

Discuss Crane and Matten's concept of sustainability with regard to Carroll's view of ethics.

Accepted Answer

The answer of Discuss Crane and Matten's concept of sustainability...

Question 13

The Dow Jones Sustainability Index includes

Accepted Answer

The Dow Jones Sustainability Index evaluates companies based on their environmental, economic, and social sustainability, making choice C the most accurate option. The index takes into account factors such as corporate governance, supply chain management, labor practices, product design and innovation, and environmental policies and management.

Question 14

Which of the following companies was cited by the text as an example of a company which does its best to consider its responsibilities to its primary and secondary stakeholders when making strategic decisions?

Accepted Answer

Johnson & Johnson was cited in the text as an example of a company that considers its responsibilities to both primary and secondary stakeholders. The company has a credo that outlines its commitment to serving the needs of all stakeholders, including customers, employees, and the communities in which it operates.

Question 15

Which of the following statements is not true concerning secondary stakeholders?

Accepted Answer

This statement is not true as secondary stakeholders do not always have sufficient bargaining power to directly affect the corporation's activities. In fact, secondary stakeholders often have less power and influence than primary stakeholders, such as shareholders and employees.

Question 16

Explain the difference between Milton Friedman and Archie Carroll's approaches to the responsibilities of business.

Accepted Answer

The answer of Explain the difference between Milton Friedman and...

Question 17

Target's efforts to offer brands from companies with ethical track records and community involvement help the retailer attract socially concerned younger consumers.This is an example of

Accepted Answer

The answer of Target's efforts to offer brands from companies...

Question 18

The first step in stakeholder analysis is to

Accepted Answer

The first step in stakeholder analysis is to identify primary stakeholders. This means identifying the individuals or groups who have a direct stake in the organization, such as employees, customers, shareholders, and suppliers. Once the primary stakeholders have been identified, the analysis can then move on to considering the interests and influence of other stakeholder groups.

Question 19

In any one strategic decision,the interests of one stakeholder group seldom conflict with another.

Accepted Answer

In many strategic decisions, the interests of different stakeholder groups can conflict with each other. For example, a decision to lay off employees may benefit shareholders by reducing costs, but it may harm employees and their families who lose their jobs and income. Similarly, a decision to expand a company's operations may benefit management by increasing revenue and growth, but it may harm local communities or the environment impacted by the company's activities.

Question 20

The broader concept of sustainability is closely aligned with Carroll's view of social responsibility.

Accepted Answer

The broader concept of sustainability encompasses economic, social, and environmental responsibility, which aligns with Carroll's view of social responsibility.

Quiz 3: Social Responsibility and Ethics in Strategic Management