Deck 5: Corporate Social Responsibility

Question 1

Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods,services,jobs,and wealth if:

A) multiple owners were involved in the strategic decision making process of the firm.
B) there was transparency among all stakeholders.
C) firms had the obligation to justify bad decisions.
D) individuals were protected by limiting the liability of individuals for business activities.

Answer 1

D
Explanation: The law has created a form of business called corporations, which limits the liability of individuals for the risks involved in these activities. Legislators thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if individuals were protected, and people would therefore be encouraged to engage in these activities.

Question 2

The social web model views business as a citizen of the society and,like all members of a society,business must conform to the normal ethical duties and obligations that we all face.

Answer 2

True
Explanation: The social web model views business as a citizen of the society in which it operates and, like all members of a society, business must conform to the normal ethical duties and obligations that we all face.

Question 3

The form of business that limits the liability of individuals for the risks involved in business activities is known as ____.

A) corporation
B) partnership
C) joint proprietorship
D) sole proprietorship

Answer 3

A
Explanation: The law has created a form of business called corporations, which limits the liability of individuals for the risks involved in business activities.

Question 4

Socially responsible activities are never done for building the reputation of a firm within the philanthropy model.

Question 5

A firm that is environmentally unsustainable is also a firm that is,in the long-term,financially unsustainable.

Question 6

Philosopher Norman Bowie identifies his approach as a "Kantian" theory of business ethics.

Question 7

Volunteering and charitable work are examples of the most demanding responsibility.

Question 8

Milton Friedman claims that a corporate executive has a "responsibility to conduct business in accordance with his or her employer's desires,which generally will be to make as much money as possible while conforming to the basic rules of society,both those embodied in law and those embodied in ethical custom." This view of corporate social responsibility has its roots in the _____ tradition.

A) deontological
B) Kantian
C) utilitarian
D) virtue

Question 9

According to the economic model of corporate social responsibility,the sole duty of a business is to:

A) go beyond legal responsibilities to cater to the needs of the society.
B) fulfill the economic functions that it was designed to serve.
C) think beyond economic ends that have to be met to help the society.
D) analyze the defects in society and design products to overcome these defects.

Question 10

Stakeholder theory directly contradicts the social web model.

Question 11

According to David Vogel,investing in CSR when consumers are not willing to pay higher prices to support that investment improves the profit levels of the firm.

Question 12

Legislators created a form of business called corporations to encourage people to engage in business activities.

Question 13

The economic model of corporate social responsibility holds that businesses should integrate social goals and economic goals.

Question 14

"Enlightened self-interest" presumes that good ethics is also good business.

Question 15

The philanthropic model holds that business has no strict obligation to contribute to social causes.

Question 16

Which of the following is true about the economic model of CSR?

A) It holds that a business should prioritize environmental sustainability.
B) It has its roots in the Kantian tradition of ethics.
C) It contends that the goal of business managers should be to pursue profit within the law.
D) It holds that social goals should be at the heart of a firm's mission.

Question 17

Stakeholder theory recognizes the fact that every business decision affects a wide variety of people,benefiting some and imposing costs on others.

Question 18

The sustainability version of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

Question 19

Reputation management refers to the practice of caring for the "image" of a firm.

Question 20

Stakeholder theory states that a firm should be managed for the sole benefit of stockholders.

Question 21

Which of the following models of corporate social responsibility holds pursuit of profit as the sole duty of a business?

A) Economic model of corporate social responsibility
B) Philanthropic model of corporate social responsibility
C) Social web model of corporate social responsibility
D) Integrative model of corporate social responsibility

Question 22

The _____ model of CSR holds that,like individuals,business is free to contribute to social causes as a matter of philanthropy,and business has no strict obligation to contribute to social causes; but it can be a good thing when they do so.

A) economic
B) social web
C) philanthropic
D) integrative

Question 23

In the philanthropic model of CSR,situations where a business supports a social cause for the purpose of receiving a business benefit in return are not much different from:

A) the economic model of CSR.
B) the stakeholder theory of CSR.
C) the integrative model of CSR.
D) the sustainability theory of CSR.

Question 24

An individual who argues that firms should be managed for the sole benefit of stockholders is defending the:

A) philanthropic model of CSR.
B) social web model of CSR.
C) integrative model of CSR.
D) economic model of CSR.

Question 25

According to Norman Bowie,the "moral minimum" that we expect of every person-either acting as individuals or within corporate institutions-is:

A) basic spirituality.
B) respect for human rights.
C) contribution to charity.
D) accountability.

Question 26

Which of the following ethical requirements is the type of responsibility established by the precedents of tort law?

A) Duty to not cause avoidable harm to the society
B) Duty to find employment for employees injured at work
C) Duty to engage in charitable work
D) Duty to volunteer for causes related to the environment

Question 27

According to the economic model of corporate social responsibility,the pursuit of profit will continuously work toward the optimal satisfaction of consumer demand which,in one interpretation of ____ is equivalent to maximizing the overall good.

A) deontological ethics
B) classicism
C) virtue ethics
D) utilitarianism

Question 28

Corporate social responsibility refers to:

A) those things that businesses ought, or should, do, even if they would rather not.
B) those measures that are taken against the ill treatment of subordinates in a firm.
C) the avoidance of misconduct within an organization.
D) the responsibility that society has to ensure a business's success.

Question 29

Stakeholder theory is an example of the:

A) philanthropy model of corporate social responsibility.
B) social web model of corporate social responsibility.
C) economic model of corporate social responsibility.
D) stockholder model of corporate social responsibility.

Question 30

Which of the following statements is true about the philanthropic model of corporate social responsibility?

A) This model holds that business has no strict obligation to contribute to social causes, but it can be a good thing when they do so.
B) This model views business as a citizen of the society in which it operates and, like all members of a society, business must conform to the normal ethical duties and obligations.
C) This model begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.
D) This model holds that a firm's financial goals must be balanced against, and perhaps even overridden by, environmental considerations.

Question 31

According to the philosopher Norman Bowie,the contractual duty that managers have to stockholder-owners:

A) makes them focus on philanthropy.
B) makes them feel obliged to perform social good and prevent harm to the society.
C) overrides their responsibility to prevent harm or to do good.
D) leads them to take environment-conscious managerial decisions.

Question 32

Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility?

A) Philanthropy done for reputational reasons is not fully ethical.
B) Philanthropy done for solely financial benefits is not truly an act of social responsibility.
C) Philanthropy done for financial reasons is ethically responsible.
D) Philanthropy is considered as a social contribution rather than an investment.

Question 33

A narrow view of corporate social responsibility is expressed by the:

A) social web model of corporate social responsibility.
B) integrative model of corporate social responsibility.
C) economic model of corporate social responsibility.
D) philanthropic model of corporate social responsibility.

Question 34

Which of the following is the most demanding social responsibility?

A) A business should prevent harm even in those cases where it is not the cause.
B) A business should volunteer for society or environment-friendly work.
C) A business should engage in charitable work for the development of the society.
D) A business should not sell a product that causes harm to consumers.

Question 35

The philanthropic model in which business support for a social cause is done because it is the right thing to do differs from the reputational version only in terms of the:

A) level of social good done.
B) underlying motivation.
C) reach of the social good done.
D) medium used.

Question 36

Which of the following best describes corporate social responsibility?

A) It refers to the dedication that employees show in meeting organizational goals.
B) It refers to the accountability that a manager has over his subordinates.
C) It refers to the actions for which a business can be held accountable.
D) It refers to the actions that maximize the profit of an organization.

Question 37

"Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community,business has no ethical obligations to serve wider social goods.But,just as charity is a good thing and something that we all want to encourage,business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics." Identify the model of CSR that reflects this line of thought.

A) Integrative model
B) Stakeholder theory
C) Philanthropic model
D) Social web model

Question 38

Which of the following models of corporate social responsibility considers business a citizen of the society that it operates in?

A) Philanthropic model
B) Economic model
C) Altruistic model
D) Social web model

Question 39

According to philosopher Norman Bowie,managers have a responsibility to maximize profits as long as they:

A) respect human rights and cause no harm.
B) contribute to charitable organizations.
C) are confident and do charitable work.
D) adhere to rules and regulations.

Question 40

Which of the following theories recognizes the fact that every business decision affects a wide variety of people-benefiting some and imposing costs on others?

A) Stakeholder theory
B) Integrative theory
C) Altruistic theory
D) Institutional theory

Question 41

The for-profit organizations that prioritize social entrepreneurship and sustainability as a central part of their strategic mission are pursuing the _____ model of CSR.

A) integrative
B) economic
C) social web
D) philanthropic

Question 42

According to the economic model of CSR,_____ is a direct measure of how well a business firm is meeting society's expectations.

Question 43

Which of the following is a similarity between utilitarianism and stakeholder theory?

A) Both place organizational benefits above other considerations.
B) Both consider the consequences of management decisions for the well-being of all affected groups.
C) Both contribute to society in ways that go beyond the narrow obligations of law and economics.
D) Both strive to focus only on consumers.

Question 44

The practice of attending to the "image" of a firm is referred to as:

A) reputation management.
B) branding.
C) crisis management.
D) gentrification.

Question 45

Sustainability holds that:

A) a firm's financial goals must be balanced against environmental considerations.
B) a firm must place social considerations below tasks beneficial to its growth.
C) a firm must not prioritize social goals at the expense of economic growth.
D) a firm's sustenance is affected by overemphasis on environmental considerations.

Question 46

The philanthropic model in which business support for a social cause is done simply because it is the right thing to do differs from the reputational version of the philanthropic model only in terms of the underlying ____.

Question 47

Philosopher Norman Bowie identifies his approach as a ____ theory of business ethics.

Question 48

Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders.This is unjust according to the ____.

A) financial framework
B) classical tradition
C) rights-based ethical framework
D) stockholder theory

Question 49

The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by:

A) utilizing a small percentage of profit on social causes.
B) doing charitable work to build a good reputation within the community.
C) pursuing social ends as the very core of an organization's mission.
D) emphasizing the importance of achieving the desired economic goals.

Question 50

_____ theory argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management.

A) Sustainability
B) Stakeholder
C) Classical
D) Attributive

Question 51

When a firm engages in socially responsible activities with a prime focus on reputation:

A) social responsibility tend to become a form of social marketing.
B) the measure of positive reputation gained is impossible to calculate.
C) profits have to be sacrificed for social causes.
D) it always loses employee loyalty.

Question 52

Which of the following versions of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment?

A) Social web
B) Philanthropic
C) Social entrepreneurship
D) Sustainability

Question 53

Which of the following is the challenge associated with ethical pay offs?

A) It ruins the reputation that triggered it.
B) It is very small in comparison to profits.
C) It is very difficult to measure ethical pay offs.
D) It can easily be duplicated by competitors.

Question 54

According to philosopher Norman Bowie,_____ is the "moral minimum" that is expected of every person.

Question 55

Enlightened self-interest,an important justification offered for corporate social responsibility,presumes that:

A) measurement of bottom-line impact of ethical decision making is unimportant.
B) profits are independent of ethics.
C) bottom-line impact of ethical decision making can be measured and compared.
D) good ethics can also be good business.

Question 56

_____ is generally referred to as the responsibilities that a business has to the society in which it operates.

Question 57

According to the _____ model of CSR,the social responsibility of business managers is simply to pursue profit within the law.

Question 58

Which of the following is an example of a firm that is failing its fundamental social responsibility?

A) A firm that has its loss margins exceeding its profit margins
B) A firm that uses resources at unsustainable rates
C) A firm that is financially unstable
D) A firm that prioritizes environmental sustainability

Question 59

According to David Vogel,which of the following should a firm be most cautious about when engaging in CSR activities?

A) Investing in CSR when consumers are not willing to pay higher prices to support that investment.
B) Employees may become over-indulgent in activities related to social causes.
C) Attrition levels may rise due to indifference among employees engaging in activities related to social responsibility.
D) The easily measurable ethical pay off can turn out to be lower than the anticipated levels.

Question 60

A firm that balances its social goals against economic goals and does justice to both is said to follow the:

A) integrative model of corporate social responsibility.
B) economic model of corporate social responsibility.
C) social web model of corporate social responsibility.
D) stakeholder model of corporate social responsibility.

Question 61

According to the narrow view of economic model of CSR,only philanthropy done for reputational reasons and financial ends is ethically responsible.What is the justification for this statement?

Question 62

Explain the concept of reputation management and discuss the controversies associated with publicizing corporate good deeds.

Question 63

How does the social web model view businesses?

Question 64

In the _____ model of corporate social responsibility,social goals are brought into the core of a firm's business model,and economic goals are balanced against social goals.

Question 65

"People have a strong ethical duty to cause no harm,and only a prima facie duty to prevent harm or to do good." Discuss Norman Bowie's view on this statement.

Question 66

The most influential version of CSR that would fall within the _____ model is stakeholder theory.

Question 67

What are the implications of sustainability in the integrative model of CSR?

Question 68

Can non-profit organizations be categorized under the integrative model of corporate social responsibility? Elaborate.

Question 69

Philosophers distinguish between three different types of responsibilities,on a scale from more to less demanding or binding.Explain these responsibilities.

Question 70

What is stakeholder theory?

Question 71

Discuss the arguments between the economic model and stakeholder theory.

Question 72

The _____ version of CSR suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

Question 73

The practice of attending to the "_____" of a firm is referred to as reputation management.

Question 74

How does philosopher Norman Bowie defend the version of CSR that would fall within the social web model?

Question 75

Discuss the philanthropic model of CSR.

Question 76

"The social responsibility of business managers is simply to pursue profit within the law." How does the economic model of CSR justify this statement?

Question 77

The economic model is a narrow view of CSR.What are the alternative broader models of CSR?

Question 78

What are some of the precautions that a firm must take when investing in CSR?

Question 79

How can corporations encourage people to engage in business activities?

Question 80

The _____ model holds that the firm should be managed for the sole benefit of stockholders.