Deck 5: Corporate Social Responsibility

Question 1

Corporate social responsibility (CSR)-related activities can improve profitability by enhancing a company's standing among its stakeholders,including consumers and employees.

Answer 1

True
Explanation: Activities related to corporate social responsibility can improve profitability by enhancing a company's standing among its stakeholders,including consumers and employees.For example,some evidence suggests that employees who are well treated in their work environments may prove more loyal,more effective,and more productive in their work.

Question 2

Philosopher Norman Bowie rejected the economic view that managers are the agents of stockholder-owners and thus they also have a duty to further the interests of stockholders
.

Answer 2

False
Explanation: Norman Bowie accepts the economic view that managers are the agents of stockholder-owners and thus they also have a duty (derived from the contract between them)to further the interests of stockholders.Bowie would argue that business has a social responsibility to respect the rights of its employees,even when not specified or required by law.

Question 3

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

Answer 3

False
Explanation: David Vogel,a political science professor at Berkeley,cautions against investing in corporate social responsibility (CSR)when consumers are not willing to pay higher prices to support that investment.

Question 4

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

Question 5

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

Question 6

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

Question 7

The stakeholder model of corporate social responsibility (CSR)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 range of ethical duties and obligations that all citizens face.

Question 8

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

Question 9

Within the philanthropic perspective of the economic model,socially responsible activities are never done for building the reputation of a firm.

Question 10

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

Question 11

Corporate social responsibility (CSR)refers to the:

A)dedication that businesses show in expanding their market share.
B)accountability that a manager has to his subordinates.
C)ethical expectation that society has for business.
D)actions that maximize the profit of an organization.

Question 12

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 13

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 14

Identify a true statement about social responsibility.

A)It refers to what a business should or ought to do for the sake of the society,even if it comes with an economic cost.
B)It refers to the responsibility of an organization to fulfill the terms of contract with its employees and lenders.
C)It refers to the steps taken by an organization to avoid internal malpractices or misconduct.
D)It refers to the responsibility that society has to ensure a business's success.

Question 15

Volunteering and charitable work are examples of the most demanding social responsibilities of a business.

Question 16

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

Question 17

The sustainability version of corporate social responsibility (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 18

The philanthropic perspective of the economic model holds that business has no strict obligation to contribute to social causes.

Question 19

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

Question 20

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

Question 21

The philanthropic perspective of the economic 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 22

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 reputational reasons and financial ends is ethically responsible.
D)Philanthropy is considered a social contribution rather than an investment.

Question 23

The _____ of corporate social responsibility (CSR)holds that just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community,business has no strict ethical responsibility to serve wider social goods.

A)philanthropic model
B)legal model
C)ethical model
D)integrative model

Question 24

A feature of the economic model of corporate social responsibility (CSR)is that it:

A)holds pursuit of profit as the sole duty of business.
B)expects business to have a strict obligation to contribute to social causes.
C)states that profit is independent of optimal allocation of resources.
D)prevents shareholders from being at the center of a corporation.

Question 25

_____ recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged.

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

Question 26

According to the economic model of corporate social responsibility (CSR),the sole social responsibility 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 society.
D)analyze the defects in society and design products to overcome these defects.

Question 27

Which of the following statements is true of the common view of corporate social responsibility (CSR)?

A)It has its roots in the deontological tradition and Keynesian economics.
B)It holds that the primary responsibility of managers is to serve shareholders.
C)It holds that profit is independent of optimal allocation of resources.
D)It states that business has a strict obligation to contribute to social causes.

Question 28

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 29

Identify a true statement about the philanthropic perspective of the economic model of corporate social responsibility.

A)It argues that business has an ethical duty to respect the rights of consumers to such things as safe products and truthful advertising,even when not specified in law.
B)This approach holds that as long as managers comply with the moral minimum and cause no harm,they have a responsibility to maximize profits.
C)This approach is especially common with small,privately owned businesses where the owners also often play a prominent leadership role within their local community.
D)It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledgeD.

Question 30

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 31

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)investors were protected from undue personal risks.

Question 32

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 33

The _____ directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of profit.

A)economic model of corporate social responsibility (CSR)
B)stakeholder theory of corporate social responsibility (CSR)
C)integrative model of corporate social responsibility (CSR)
D)sustainability theory of corporate social responsibility (CSR)

Question 34

Identify a true statement about the economic model of corporate social responsibility (CSR).

A)It shifts focus from pursuit of profit to environment sustainability.
B)It has its roots in the Kantian tradition of ethics.
C)It has direct implications for the proper role of business management.
D)It holds that social goals should be at the heart of a firm's mission.

Question 35

The _____ asserts that neither a business nor the individuals who work for it are exempt from the ordinary ethical responsibilities that everyone has to cause no harm,to prevent harm,and to sometimes do good.

A)philanthropic model of corporate social responsibility (CSR)
B)stakeholder model of corporate social responsibility (CSR)
C)integrative model of corporate social responsibility (CSR)
D)economic model of corporate social responsibility (CSR)

Question 36

The _____ holds that just as charity is a good thing and something that should be 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 corporate social responsibility (CSR)that reflects this line of thought.

A)Integrative model
B)Stakeholder theory
C)Philanthropic model
D)Legal model

Question 37

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

A)Philanthropic model
B)Economic model
C)Altruistic model
D)Stakeholder model

Question 38

Which of the following statements is true about the economic model of corporate social responsibility (CSR)?

A)It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged.
B)It holds that businesses should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.
C)It places shareholders at the center of the corporation and suggests that the ethical responsibility of management is to serve those shareholders.
D)It holds that businesses have social responsibilities beyond the economic and legal ends for which they were createD.

Question 39

Matthew manages the sales team at an information technology (IT)firm.His focus is to conduct business in accordance with his firm's mission and vision,while making as much money as possible for the firm and conforming to the basic rules of the society.He ensures that his actions embody ethical custom.In this scenario,Matthew's view of corporate social responsibility is most likely rooted in the _____ tradition.

A)consequential
B)Keynesian
C)utilitarian
D)virtue

Question 40

Which of the following statements is true about the stakeholder theory?

A)It begins with the recognition that every business decision affects a wide variety of people,benefiting some and imposing costs on others.
B)It argues that the narrow economic model successfully provides an accurate descriptive and a reasonable normative account of business management.
C)It holds that business firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.
D)It 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 41

Which of the following is a 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 42

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 43

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

A)social responsibility tends 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 44

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

A)Investing in corporate social responsibility (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 because of indifference among employees engaging in activities related to social responsibility.
D)The easily measurable ethical payoff can turn out to be lower than the anticipated levels.

Question 45

Identify a true statement about the integrative model of corporate social responsibility (CSR).

A)It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model.
B)It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged.
C)It recognizes that some stakeholders have different power and impact on decisions than others.
D)It argues that every business should adopt the principles of benefit corporations and devote all their activities to service of social goals.

Question 46

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

Question 47

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 48

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

Question 49

Which of the following versions of corporate social responsibility (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?

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

Question 50

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

Question 51

Identify a true statement about the stakeholder theory.

A)It holds that a firm's financial goals must be balanced against,and perhaps even overridden by,environmental considerations.
B)It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management.
C)It 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.
D)It suggests that firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.

Question 52

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

Question 53

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 54

The philanthropic perspective of the economic 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 55

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 56

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

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

Question 57

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 58

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

Question 59

The defenders of the sustainability approach toward corporate social responsibility (CSR)point out that _____.

A)all economic activity exists within a biosphere that supports all life
B)the success of a business must be judged only against profitability
C)people have a strong ethical duty to cause no harm,and only a prima facie duty to prevent harm
D)businesses' sole social responsibility is to fulfill the economic functions they were designed to serve

Question 60

Enlightened self-interest,an important justification offered for corporate social responsibility (CSR),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 61

Discuss the arguments between the economic model and stakeholder theory.

Question 62

The economic model is a narrow view of corporate social responsibility (CSR).What are the alternative broader models of CSR?

Question 63

What are some of the precautions that a firm must take when investing in corporate social responsibility (CSR)?

Question 64

What is stakeholder theory?

Question 65

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

Question 66

What are the implications of sustainability in the integrative model of corporate social responsibility (CSR)?

Question 67

Discuss the philanthropic perspective of the economic model of corporate social responsibility (CSR).

Question 68

How does the stakeholder model of corporate social responsibility (CSR)view businesses?

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

The _____ model of corporate social responsibility (CSR)holds that the firm should be managed for the sole benefit of stockholders.

Question 74

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

Question 75

"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 76

The _____ understands that business exists within a web of social and ethical relationships.

Question 77

The _____ version of corporate social responsibility (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 78

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

Question 79

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

Question 80

How can corporations encourage people to engage in business activities?