Question 1

The United Nations Global Compact recognizes that working toward anticorruption standards would violate the freedoms of developing nations.

Accepted Answer

The United Nations Global Compact calls for companies to work toward anticorruption standards regardless of the country in which they operate. There is no mention of violating the freedoms of developing nations.

Question 2

Milton Friedman's "The Gospel of Wealth" argued that wealthy individuals,particularly the self-made rich,had a moral responsibility to invest their fortunes for the well being of society.

Accepted Answer

"The Gospel of Wealth" was actually written by Andrew Carnegie, not Milton Friedman.

Question 3

All firms with strong financial performance are eligible for inclusion on socially responsible investment indices,because strong performance is positively correlated with social responsibility.

Accepted Answer

Strong financial performance alone does not necessarily indicate social responsibility. Socially responsible investment indices typically evaluate a range of criteria beyond financial performance, such as environmental and social impact, ethical governance practices, and labor standards. Therefore, not all firms with strong financial performance will meet the criteria for inclusion on socially responsible investment indices.

Question 4

Community involvement provides an opportunity for team building,leadership training,and teaching project management,all of which directly impact a company's daily operations.

Accepted Answer

Community involvement allows employees to work together towards a common goal, giving them opportunities to build relationships, develop leadership skills, and learn project management techniques. These skills can then be applied to their work within the company, improving operations and productivity.

Question 5

Sweatshops in developing nations always operate in clear violation of U.S.labor laws and of the labor laws of their host countries.

Accepted Answer

Sweatshops in developing nations may violate labor laws of their host countries, but it is not necessarily in violation of U.S. labor laws unless the company exporting goods to the U.S. is found to be complicit in the labor violations. However, working conditions in such sweatshops may still be unethical and exploitative.

Question 6

Organizations with corporate citizenship tend to have problems attracting younger professionals,who tend to consider social responsibility outside the realm of work.

Accepted Answer

Organizations with corporate citizenship are more likely to attract younger professionals who place a high value on social responsibility and want to work for companies that align with their values.

Question 7

Research indicates that philanthropy can help mitigate the negative effects when things go wrong in an organization.

Accepted Answer

Philanthropy can help organizations recover from negative events such as scandals, financial losses, or reputation damage by providing financial support, building trust with stakeholders, and demonstrating a commitment to positive social impact. Studies have shown that companies with strong philanthropic programs have better public perceptions, higher employee morale, and increased brand loyalty, which can help offset negative impacts during a crisis.

Question 8

With careful attention,managers can address all stakeholder demands.

Accepted Answer

It is not always possible for managers to address all stakeholder demands as sometimes demands may conflict with each other or be impractical to fulfill. Managers must prioritize and balance the needs of different stakeholders.

Question 9

Corporate philanthropy shouldn't be framed as part of an organization's public relations strategy nor should it be linked with strategy.

Accepted Answer

Corporate philanthropy can be both a genuine effort to contribute to society and a strategic tool for enhancing a company's public image. When aligned with a company's values and strategy, philanthropy can improve public relations, employee morale, and the community's perception of the company, creating a positive feedback loop that benefits both the organization and society.

Question 10

A solid ethical argument exists supporting the relativist approach to international corporate citizenship,particularly around issues such as sweatshops.

Accepted Answer

The answer of A solid ethical argument exists supporting the...

Question 11

According to the Interpenetrating Systems Model,the subsystems of human activities,none of which is monolithic,impact one another.

Accepted Answer

The Interpenetrating Systems Model proposes that subsystems of human activities are not monolithic and impact one another. Therefore, the statement is true.

Question 12

A win-win strategic partnership whereby nonprofits benefit by revenue generated through the sales of the donor's product or service is called ______________.

Accepted Answer

Cause-related marketing is a partnership between a nonprofit and a for-profit organization in which the for-profit benefits by marketing its products or services, and the nonprofit benefits from the proceeds generated through the sales of the product or service. It is a win-win situation for both parties. Corporate philanthropy refers to the act of donating money or resources to a nonprofit organization. Green marketing, on the other hand, refers to the promotion of environmentally-friendly products or services. Strategic marketing is a broader term that refers to a company's overall marketing strategy.

Question 13

One method of encouraging philanthropy is to arrange for employees to donate money through payroll deductions.

Accepted Answer

This statement is true. Many employers have programs in place that allow their employees to donate money to charity through payroll deductions. This makes it easier and more convenient for employees to give back and support causes they care about.

Question 14

According to Friedman's conceptualization of corporate responsibility,sneaker manufacturers fulfill their social responsibilities by efficiently and effectively meeting consumers' sneaker needs without violating any laws.

Accepted Answer

According to Friedman's conceptualization of corporate responsibility, the primary social responsibility of a business is to increase profits by efficiently and effectively meeting consumers' needs without violating any laws or engaging in fraudulent activities. Therefore, in this context, it can be considered true that sneaker manufacturers fulfill their social responsibilities by meeting consumers' sneaker needs without violating any laws.

Question 15

Tax evasion and tax avoidance are terms that can be used interchangeably when considering corporate conduct.

Accepted Answer

Tax evasion refers to illegal actions taken by individuals or corporations to avoid paying taxes owed, while tax avoidance refers to legal methods used to minimize tax liability. While the terms may be used loosely in everyday conversation, it is important to distinguish between these two concepts.

Question 16

Employees who experience enjoyable and essential work are always able to successfully avoid burnout.

Accepted Answer

While enjoying work may help reduce the risk of burnout, it is not a surefire prevention method. Factors such as workload, stress, and overall job satisfaction can also contribute to burnout.

Question 17

Employers can give back to the community quite directly by providing jobs to people in need,including groups most in need,such as ex-convicts.

Accepted Answer

By providing jobs to people in need, including ex-convicts, employers can help these individuals reintegrate into society and reduce the likelihood of recidivism. This can benefit the community as a whole by reducing crime rates and improving overall economic stability.

Question 18

Legal compliance and corporate social responsibility are terms that can be used interchangeably when considering corporate conduct.

Accepted Answer

While legal compliance and corporate social responsibility are related concepts, they are not interchangeable. Legal compliance refers to the company's adherence to applicable laws and regulations, while corporate social responsibility encompasses a broader set of ethical and moral responsibilities towards society and the environment, which may go beyond legal requirements.

Question 19

Organizations implementing the Optimal Ethics Systems Model will likely enhance their reputation within a community.

Accepted Answer

The Optimal Ethics Systems Model is designed to promote ethical behavior and integrity within an organization, which can result in improved public perception and trust. This, in turn, can enhance the organization's reputation within the community. Therefore, organizations that implement this model are likely to experience a positive impact on their reputation.

Question 20

Investors tend not to consider social responsibility when evaluating a company,provided the company has a strong bottom line.

Accepted Answer

Many investors, especially those focused on socially responsible or sustainable investing, consider a company's social responsibility practices alongside its financial performance. This approach reflects a growing recognition that social and environmental factors can impact a company's long-term success and risk profile.

Quiz 12: Community Outreach and Respect