Question 1

Which of the following is a philosophy that focuses on the consequences of an action to determine if it is right or wrong and expresses the idea that anything that negatively affects the majority of people in a situation is morally wrong?

Accepted Answer

Utilitarianism is a philosophy that focuses on the consequences of an action to determine if it is right or wrong. It expresses the idea that anything that negatively affects the majority of people in a situation is morally wrong. The other options do not specifically focus on the consequences of an action or the impact on the majority of people.

Question 2

A retailer allows its employees to handle customer complaints without having to ask for permission or directions from management. Which of the following activities would this policy encourage?

Accepted Answer

Allowing employees to handle customer complaints without needing to seek permission or guidance from management would encourage employees to feel empowered to help customers. This increased agency could lead to more proactive approaches to customer complaints and issues.

Question 3

Corporate philanthropy is best described by which of the following?

Accepted Answer

Corporate philanthropy refers to the practice of giving back to society through cash or non-cash donations. It is an important aspect of a company's social responsibility. The other options are incorrect as they do not accurately describe corporate philanthropy.

Question 4

Which of the following is the practice of limiting investments to companies that behave in accordance with the investor's beliefs about ethical and social issues?

Accepted Answer

Social investing is the practice of limiting investments to companies that behave in accordance with the investor's beliefs about ethical and social issues. Strategic giving refers to the practice of making donations to charitable organizations in a way that aligns with the donor's overall philanthropic goals. Investor paternalism involves making investment decisions on behalf of others without their input or consent. Corporate philanthropy involves a company making donations or engaging in charitable activities for the benefit of society.

Question 5

Which term represents all of the individuals or groups to whom a business has a responsibility?

Accepted Answer

The term stakeholders represents all of the individuals or groups to whom a business has a responsibility, including shareholders, employees, customers, suppliers, the community, and the environment. Lobby groups and consumers are specific subsets of stakeholders, while shareholders only represent one group within the larger stakeholder category.

Question 6

Peter Drucker, a well-known management scholar, has said that companies should be evaluated on which two basic dimensions?

Accepted Answer

The answer of Peter Drucker, a well-known management scholar, has...

Question 7

As part of their responsibility to society a company must do which of the following?

Accepted Answer

A company has a responsibility to be good stewards of the environment, meaning they should strive to reduce their environmental impact and preserve natural resources for future generations. While sponsoring children's sports teams, being active with charities, and hiring local workers may be beneficial to society, they are not necessarily a company's responsibility.

Question 8

Cash donations of equipment and products and support for volunteer efforts of employees are all aspects of which of the following?

Accepted Answer

Cash donations of equipment and products and support for volunteer efforts of employees are all examples of corporate philanthropy, which refers to the charitable donations and actions that companies undertake to improve the well-being of society. This is different from whistle-blowing, which is the act of reporting illegal or unethical behavior within an organization, or the social contract, which is the implicit agreement between individuals and society regarding rights and responsibilities. Social responsibility also encompasses corporate philanthropy, but it includes a broader set of obligations that companies have towards society and the environment.

Question 9

Which of the following best describes social investing?

Accepted Answer

Social investing is the practice of limiting investments to companies that have ethical or socially responsible policies that match those of the investor. This is done to support companies that are aligned with the investor's values and to encourage other companies to adopt similar policies. It can also include advocacy for issues such as human rights, environmental sustainability, and corporate governance.

Question 10

As part of their responsibility to their customers a company must do which of the following?

Accepted Answer

Delivering what is promised is a fundamental responsibility of a company to its customers.

Question 11

In addition to individual ethics what else can be used as guideposts for choosing between right and wrong?

Accepted Answer

Laws of society are established by governments to regulate behavior and provide consequences for those who violate them. They provide clear standards for what is considered acceptable or unacceptable behavior, therefore serving as a useful guidepost for choosing between right and wrong. However, it is important to note that these laws may not always align with personal or individual ethics, and one must use their own judgment to make ethical decisions. The advice of elders, parent's behavior or company policies may also be helpful, but they are subjective and do not have the legal weight of societal laws.

Question 12

Royal Bank gives money to support performing arts presentations in schools. This is an example of which of the following behaviours?

Accepted Answer

This is an example of corporate philanthropy, where a company donates funds or resources to support charitable causes or initiatives in the community. In this case, Royal Bank is supporting the arts in schools.

Question 13

The employees, the wood suppliers, the customers, and the government inspectors in a company that manufactures fine wooden office furniture are described as being which of the following?

Accepted Answer

The term "stakeholders" refers to all individuals or groups who have an interest or concern in the operations and outcomes of a company. In this case, the employees, wood suppliers, customers, and government inspectors are all stakeholders as they have some level of investment, impact, or influence in the company's success. Partners and shareholders imply ownership or financial investment, which may not apply to all of these groups. Investors may be a broader term but does not encompass all the parties mentioned in the question.

Question 14

The base of the corporate social responsibility pyramid is represented by which of the following?

Accepted Answer

The base of the corporate social responsibility pyramid is the economic responsibility, which refers to a company's duty to be profitable and create value for its shareholders. Without fulfilling this responsibility, it would be impossible for a company to fulfill the other responsibilities, including legal, ethical, and philanthropic.

Question 15

Who is responsible for the organization being managed in the best interest of the corporation?

Accepted Answer

The board of directors is responsible for overseeing the organization and ensuring that it is managed in the best interest of the corporation. They have a fiduciary duty to act in the best interest of the company and its shareholders, and they are ultimately responsible for making strategic decisions and appointing key executives. While executives and corporate officers are responsible for implementing these decisions, they ultimately report to the board of directors. Shareholders have a stake in the company's success, but they do not have final decision-making authority.

Question 16

Which of the following is the practice of charitable giving by corporations?

Accepted Answer

Corporate philanthropy is the practice of charitable giving by corporations. Financial empowerment refers to providing financial education and resources to people. Ethical responsibility refers to acting in accordance with ethical principles and values. Economic responsibility refers to managing resources efficiently and responsibly to achieve economic goals.

Question 17

Martin's stock portfolio includes only companies using recycled components in their manufacturing process. He is a strong believer in environmental protection, and his way of expressing that belief is by which of the following?

Accepted Answer

Martin's way of expressing his belief in environmental protection is by social investing, where he invests in companies that prioritize using recycled components in their manufacturing process over those that do not.

Question 18

The way in which an organization is governed, directed, and administered is referred to as which of the following?

Accepted Answer

Corporate governance refers to the framework of rules, practices, and processes by which a company is directed and controlled, including the roles and responsibilities of the board of directors and senior management. Organizational behaviour refers to the study of how people behave within organizations. Management structure refers to the hierarchy of roles and responsibilities in an organization. Institutional leadership refers to the individuals or groups responsible for leading and managing an institution. Therefore, corporate governance is the most appropriate choice for the given definition.

Question 19

As part of their responsibility to their employees a company must provide which of the following?

Accepted Answer

A safe working environment is a legal and ethical responsibility of employers to ensure the health and safety of their employees. Competitive wages, good benefits, and potential for advancement, while important for attracting and retaining employees, are not mandated responsibilities.

Question 20

Which of the following would be stakeholders for a manufacturer of agricultural pesticides?

Accepted Answer

Farmers who buy the products are directly impacted by the manufacturer's pesticides and are therefore stakeholders. People who work for a competitor in the US, truckers who pass by the plant on the highway, and government officials who set income tax rates are likely not directly impacted by the manufacturer's agricultural pesticides and are therefore not stakeholders.

Quiz 3: Social Environment