Deck 5: Social Responsibility and Managerial Ethics

Question 1

Which of the following is associated with the classical view of social responsibility?

A)economist Robert Reich
B)concern for social welfare
C)shareholder financial return
D)voluntary activities
E)ethical behaviours

Answer 1

C

Question 2

In a short essay, describe the four-stage 'shades of green' model of an organisation's expanding social responsibility.

Answer 2

A Stage 1 ('light green')manager will promote shareholders' interests by seeking to minimise costs and maximise profits.Although all laws and regulations will be followed, Stage 1 managers do not feel obligated to satisfy other societal needs.This is consistent with Friedman's classical view of social responsibility.At Stage 2, managers will accept their responsibility to employees and focus on human resource concerns.Because they'll want to recruit, keep and motivate good employees, Stage 2 managers will improve working conditions, expand employee rights, increase job security and the like.At Stage 3, managers expand their responsibilities to other stakeholders in the specific environment - that is, customers and suppliers.Social responsibility goals of Stage 3 managers include fair prices, high-quality products and services, safe products, good supplier relations and similar actions.Their philosophy is that they can meet their responsibilities to shareholders only by meeting the needs of their other constituents.Finally, Stage 4 (also called dark green)characterises the extreme socioeconomic definition of social responsibility.At this stage, managers feel a responsibility to society as a whole.Their business is seen as a public entity, and they feel a responsibility for advancing the public good.The acceptance of such responsibility means that managers actively promote social justice, preserve the environment and support social and cultural activities.They take these stances even if such actions negatively affect profits.

Question 3

The classical view of organisational social responsibility is that management's only social responsibility is to maximise profits.

Answer 3

True

Question 4

A business must meet economic, legal and ethical obligations to fulfil its social obligation.

Question 5

The socioeconomic view of corporate responsibility suggests that ________.

A)shareholders are the only responsibility
B)corporations are independent entities
C)maximising profits is the first priority while social responsibility is the second priority
D)corporations are responsible to the larger society
E)organisations have an ethical but no legal responsibility to anyone except shareholders

Question 6

To maintain competitive advantage, large global corporations may look to lower their costs and be more competitive by outsourcing to countries where human rights ________.

A)are not a high priority
B)are monitored by Amnesty International
C)are a high priority
D)are not approved by the Australian Government
E)are known to be held in high esteem

Question 7

Socially responsible businesses tend to have less secure long-run profits.

Question 8

In the classical view of social responsibility, managers are responsible to any group affected by the organisation's decisions and actions.

Question 9

Research has found that corporations' social responsibility is unrelated to future financial performance.

Question 10

In the socioeconomic view of organisational social responsibility, maximising profits is a company's second priority.

Question 11

The classical view of social responsibility is that management's only social responsibility is ________.

A)to follow government dictates
B)to maximise profits
C)to not concern itself with pollution
D)to meet industry quality standards
E)to meet the requirements of all stakeholders

Question 12

In the arguments for and against social responsibility, 'discouragement of further government regulation' is an argument for social responsibility.

Question 13

Proponents of the socioeconomic view of social responsibility believe that business organisations are ________.

A)not just merely economic institutions
B)just merely economic institutions
C)to be leaders in social responsibility
D)not to be involved in social responsibility, but to maximise profits for stakeholders
E)concerned principally with the interest of shareholders

Question 14

The socioeconomic view of the responsibility of management states that a manager should pursue profits at all times.

Question 15

According to Milton Friedman, which of the following is NOT a potential result of spending an organisation's resources on 'social good'?

A)redistribution of assets
B)reduced profits and dividends
C)losses by employees
D)reduced business costs
E)lower sales

Question 16

The most outspoken advocate of the classical view of organisational social responsibility is Milton Friedman.

Question 17

One argument against businesses championing social responsibility issues is that businesses already have too much power.

Question 18

In a short essay, compare and contrast the classical view and the socioeconomic view of social responsibility.

Question 19

According to your textbook, social responsibility and social responsiveness are the same thing.

Question 20

Social screening is a process used by mutual share funds to identify ethical or 'green' companies.

Question 21

The belief that business leaders should not direct social policy because there is no direct line of social accountability to the public is known as what argument against a firm's being socially responsible?

A)dilution of purpose
B)costs
C)too much power
D)lack of broad public support
E)lack of accountability

Question 22

The belief that social problems should be addressed before they reduce a firm's goal of producing goods and services is known as which argument for social responsibility?

A)public expectations
B)long-run profits
C)shareholder interests
D)possession of resources
E)superiority of prevention over cure

Question 23

The belief that the pursuit of social goals restricts economic productivity, its primary purpose and, therefore, may cause society to suffer is known as which argument against a firm's being socially responsible?

A)violation of profit maximisation
B)costs
C)too much power
D)dilution of purpose
E)lack of accountability

Question 24

The belief that business should be responsible because such actions are right for their own sake is known as which argument for social responsibility?

A)public expectation
B)ethical obligation
C)public image
D)discouragement of further government regulation
E)balance of responsibility and power

Question 25

Which of the following terms refers to a firm meeting its economic and legal responsibilities?

A)social responsibility
B)social obligation
C)social responsiveness
D)social duty
E)social standard

Question 26

The belief that a socially responsible company will be viewed as less risky, and therefore have higher stock value, is known as which argument for social responsibility?

A)long-run profits
B)balance of responsibility and power
C)shareholder interests
D)possession of resources
E)superiority of prevention over cures

Question 27

The belief that firms pursuing social goals would have too much power is known as what argument in opposition to a firm's being socially responsible?

A)costs
B)lack of skills
C)lack of broad public support
D)too much power
E)dilution of purpose

Question 28

The belief that the costs of social activity are passed on as higher prices to consumers is known as which argument against a firm's being socially responsible?

A)violation of profit maximisation
B)dilution of purpose
C)costs
D)lack of skills
E)lack of accountability

Question 29

The belief that the normal result of strong community relations and business image, producing continuing profitability, is known as which argument for social responsibility?

A)public image
B)balance of responsibility and power
C)long-run profits
D)shareholder interests
E)possession of resources

Question 30

The belief that businesses are being socially responsible when they attend only to economic interests is known as which argument against a firm's being socially responsible?

A)dilution of purpose
B)violation of profit maximisation
C)costs
D)too much power
E)lack of accountability

Question 31

The belief that businesses that help solve difficult social problems is known as which argument for social responsibility?

A)ethical obligation
B)public image
C)better environment
D)possession of resources
E)superiority of prevention over cures

Question 32

The aspect that differentiates social responsibility from other similar concepts is that it ________.

A)adds an ethical imperative
B)adds a legal imperative
C)adds a moral imperative
D)considers social norms
E)refers to adapting to changing societal conditions

Question 33

Though the outcomes are not perfectly measured, the majority of research studies show a there is no negative relationship between corporate social involvement and economic performance.

Question 34

The belief that businesses have the financial, technical and managerial resources to support needed public projects is known as which argument for social responsibility?

A)public expectations
B)ethical obligations
C)public image
D)better environment
E)possession of resources

Question 35

Which argument for social responsibility puts forth the belief that an imbalance between the large amount of power held by firms and their responsibility is harmful to the public good?

A)public expectation
B)ethical obligation
C)public image
D)discouragement of further government regulation
E)balance of responsibility and power

Question 36

The belief that business leaders are poorly qualified to address social issues is known as what argument against a firm's being socially responsible?

A)dilution of purpose
B)too much power
C)lack of accountability
D)lack of skills
E)lack of broad public support

Question 37

________ is defined as a business firm's obligation, beyond that required by law and economics, to pursue long-term goals that are good for society.

A)Social obligation
B)Social responsibility
C)Social screening
D)Value-based management
E)Social autonomy

Question 38

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

A)meeting its social obligation
B)meeting social responsibilities
C)being socially responsive
D)paying attention to the bottom line
E)attempting to defraud consumers

Question 39

Which argument for social responsibility puts forth the belief that by becoming socially responsible businesses can expect to have less government regulation?

A)discouragement of further government regulation
B)shareholder interests
C)public expectations
D)public image
E)possession of resources

Question 40

When a company does not discriminate in the hiring of minorities, it is meeting its ________.

A)social obligations
B)social responsibilities
C)moral obligations
D)ethical obligations
E)fairness obligations

Question 41

In a short essay, discuss social responsibility and compare and contrast social obligation and social responsiveness.

Question 42

Social responsiveness, when compared to social responsibility, is seen as ________.

A)more philosophical
B)more intangible
C)action oriented
D)unchanging to social norms
E)meeting its minimum requirements

Question 43

Which of the following approaches toward environmental issues is a good illustration of social obligation?

A)legal approach
B)market approach
C)stakeholder approach
D)activist approach
E)dark green approach

Question 44

Overall, does the evidence suggest that socially responsible behaviours by organisations lower a firm's economic performance?

A)Yes
B)No
C)Seems so, but there is not enough evidence at this time to know for sure.
D)It depends on the activity with which the organisation is involved.
E)It depends on the industry.

Question 45

Which of the following is NOT an approach organisations can take with respect to environmental issues?

A)legal
B)market
C)stakeholder
D)responsibility
E)activist

Question 46

Affluent societies account for more than 95 per cent of the world's energy and resource consumption.

Question 47

The market approach to going green is when organisations respond to multiple demands of stakeholders.

Question 48

In a short essay, list and discuss five arguments in favour of business social responsibility and five arguments against it.

Question 49

At the third level of the 'shades of green' model, which represents the organisation's expansion of environmental responsibility, the manager will promote the shareholders' interest by seeking to minimise costs and maximise profits.

Question 50

The ________ approach to environmental issues is when organisations respond to environmental preferences of their customers.

A)legal
B)market
C)stakeholder
D)responsibility
E)activist

Question 51

Natural resource depletion, global warming, pollution and toxic wastes are examples of ________.

A)social problems
B)global environmental problems
C)social responsiveness
D)competitive strategies
E)shared corporate values

Question 52

The recognition of the close link between an organisation's decisions and activities and its impact on the natural environment is referred to as ________.

A)corporate social responsibility
B)social responsiveness
C)shared corporate values
D)ecologically sustainable management
E)stakeholder self-interest

Question 53

The activist approach to going green is when an organisation looks for ways to respect and preserve the earth and its natural resources.

Question 54

A supplier is an example of an organisational stakeholder.

Question 55

The stakeholder approach in terms of the 'shades of green' model is where the organisation works to meet the environmental demands of multiple stakeholders such as employees, suppliers or the community.

Question 56

Applying social criteria to investment decisions is a term used to describe ________.

A)social obligation
B)social responsibility
C)social screening
D)value-based management
E)social autonomy

Question 57

Which of the following approaches toward environmental issues exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility?

A)legal approach
B)activist approach
C)light green approach
D)stakeholder approach
E)market approach

Question 58

Social screening is most commonly related to applying social criteria to investment decisions of ________.

A)pollution equipment
B)capital equipment in new plant
C)pay rises for employees
D)mutual share funds
E)State and Federal Governments

Question 59

Affluent societies account for ________ of the world's energy and resource consumption.

A)over 75 per cent
B)half
C)20 per cent
D)less than 40 per cent
E)over 90 per cent

Question 60

The ________ approach to environmental issues is when an organisation obeys rules and regulations but exhibits little environmental sensitivity.

A)legal
B)market
C)stakeholder
D)responsibility
E)activist

Question 61

What does the term ethics mean in your textbook?

A)The ideas that define what is right and wrong behaviour.
B)The principles, values and beliefs that define what is legal and illegal behaviour.
C)The principles, values and beliefs that define what is right and wrong behaviour.
D)The organisational culture that defines what is right and wrong behaviour.
E)The guidelines that define what is legal and illegal behaviour.

Question 62

In considering employee ethics, people who lack a strong moral sense are more likely to do the wrong thing even if they are constrained by rules, policies, job descriptions, etc.

Question 63

According to the 'shades of green' model of the expansion of an organisation's environmental concerns, stage two (market approach)is noted by an added interest in ________.

A)shareholders
B)human concerns
C)good supplier relations
D)fair prices
E)customers' environmental concerns

Question 64

The ________ approach to environmental issues is when an organisation chooses to respond to multiple demands made by groups in the organisation's external environment.

A)legal
B)market
C)stakeholder
D)responsibility
E)activist

Question 65

The term 'values' refers to the rules and principles that define right and wrong conduct.

Question 66

Which of the following descriptions characterises an individual at the preconventional level of moral development?

A)a person who lives up to what is expected by people close to them
B)a person maintaining conventional order by fulfilling obligations to which they have agreed
C)a person valuing rights of others and upholding absolute values and rights regardless of the majority's opinion
D)a person following self-chosen ethical principles even if they violate the law
E)a person following rules only when doing so is in their immediate interest

Question 67

In values-based management, a corporation's ________ are powerful influences on managerial decisions and actions.

A)shared values
B)team spirit
C)marketing efforts
D)industry standards
E)stakeholders

Question 68

People proceed through the six stages of moral development sequentially.

Question 69

In the human resource management area, ecologically sustainable management would address ________.

A)differential access to capital
B)the cultural impacts of advertising messages
C)the impacts of product development, design and pricing on customers
D)the close link between an organisation's decisions and activities and its impact on the natural environment
E)effect of unions on company success

Question 70

Values-based management is based on the close link between an organisation's decisions and activities and its impact on the natural environment.

Question 71

A company's shared values can be powerful influences on managerial decisions and actions.

Question 72

Values shared among organisational members can serve as ________.

A)a reason to follow State and Federal environmental laws
B)powerful influences on managerial decisions to invest in new technology
C)shaping managerial decisions to invest in economic conditions
D)a basis for decisions to invest in the organisation's stock plan
E)powerful influences on managerial decisions and actions

Question 73

Values-based management is an approach to managing in which the organisation's values guide employees in the way they do their jobs.

Question 74

According to the 'shades of green' model of the expansion of an organisation's environmental concerns, stage three (stakeholder approach)adds an interest in ________.

A)shareholders
B)human concerns
C)safe products
D)fair prices
E)high-quality products

Question 75

At the preconventional level of moral development, individuals make a clear effort to define moral principles regardless of the authority of the groups to which they belong or society in general.

Question 76

Which of the following is a basic definition of ethics?

A)moral guidelines for behaviour
B)rules for acknowledging the spirit of the law
C)principles, values and beliefs that define what is right and wrong behaviour
D)principles for legal and moral development
E)There is no way to define ethics.

Question 77

According to the 'shades of green' model of the expansion of an organisation's environmental concerns, stage four (activist)is noted by an added interest in ________.

A)shareholders
B)human concerns
C)owners
D)preservation of natural resources
E)profit maximisation

Question 78

________ is an approach to managing in which the organisation's values guide employees in the way they do their jobs.

A)Cause-related marketing
B)Values-based management
C)Ethical marketing
D)Belief management
E)Value management

Question 79

A personality attribute that reflects the degree to which people believe they are in charge of their own fate is called ________.

A)locus of control
B)ego strength
C)moral development
D)conviction strength
E)personality strength

Question 80

What term indicates the degree of the strength of a person's convictions?

A)locus of control
B)ego strength
C)moral development
D)conviction strength
E)personality strength