Question 1

A firm's net social contribution is a company report that measures the difference between its positive social contributions and its negative social impact.

Accepted Answer

A firm's net social contribution is indeed a company report that measures the difference between its positive social contributions and its negative social impact.

Question 2

Opponents of CSR Corporate Social Responsibility)argue that firms who use their profits to promote social causes are not being fair to investors who provided the funds for the purpose of financial gain.

Accepted Answer

Opponents of CSR argue that the primary responsibility of a corporation is to maximize shareholder value, and using profits for social causes may divert resources away from this goal, potentially reducing financial returns for investors.

Question 3

A public good is one that everyone gets to enjoy regardless of who pays for it.

Accepted Answer

A public good is defined as a good or service that is non-excludable and non-rivalrous, meaning that it can be enjoyed by all individuals in a society simultaneously without reducing the amount available to others. The fact that everyone can enjoy the benefits of a public good without having to pay for it individually is what makes it a public good.

Question 4

Defining a socially responsible company is complicated.Businesses differ from other businesses,as well as the people they serve,on what we mean by "socially responsible."

Accepted Answer

Social responsibility can mean different things to different businesses and stakeholders.

Question 5

A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.

Accepted Answer

A social audit is a systematic evaluation of an organization's social and environmental performance, not just its profitability.

Question 6

When it comes to ethics and social responsibility,the public's perception of a firm is as important as what the firm does.

Accepted Answer

The public's perception of a firm can greatly impact its reputation, sales, and overall success. Therefore, it is important for firms to not only act ethically and responsibly but also ensure that the public perceives them as such.

Question 7

"Greenwashed" companies have taken the green movement to the next level.These firms are so green,the U.S.government gives them a special designation.

Accepted Answer

"Greenwashing" refers to companies that falsely present themselves as environmentally friendly, so it is unlikely that the U.S. government would give them a special designation for being excessively green.

Question 8

As a response to the Enron scandal,the federal government now requires social audits of all U.S.businesses.

Accepted Answer

While the federal government did enact new legislation in response to the Enron scandal, including the Sarbanes-Oxley Act, it does not require social audits of all U.S. businesses. The act does require companies to evaluate and disclose internal controls over financial reporting, but this is different from a social audit.

Question 9

At a recent town hall meeting,citizens expressed concern regarding the impact of a proposed new gambling casino.The owner of the proposed casino responded,"I don't know what all of this fuss is about.I'm just a businessman trying to earn a profit,provide new jobs,and pay taxes." His response reflects an overall commitment to corporate social responsibility.

Accepted Answer

The owner's response only focuses on the economic benefits of the casino and does not address any potential negative social or environmental impacts. Therefore, it does not reflect a commitment to corporate social responsibility.

Question 10

Although the green movement is a social trend,it is difficult to predict its future contributions to society.

Accepted Answer

The answer of Although the green movement is a social...

Question 11

The green movement has resulted in a positive impact on U.S.jobs.

Accepted Answer

The growth of renewable energy and sustainable practices has led to the creation and expansion of many green jobs in the United States, such as solar panel installers, wind turbine technicians, and sustainable agriculture specialists. This has resulted in a positive impact on U.S. jobs overall.

Question 12

A corporate policy should never make a value statement about the environment or other social and political issues,because it is doubtful the company can live up to the proclamation.

Accepted Answer

The answer of A corporate policy should never make a...

Question 13

Often it is the threat of negative publicity that pressures businesses to enforce their corporate code of ethics.

Accepted Answer

Negative publicity can damage a business's reputation, which can ultimately harm their profits. Therefore, the fear of negative publicity drives businesses to ensure that they follow their code of ethics.

Question 14

Out-Tel,a computer chip manufacturer,knowingly sold defective chips and failed to notify customers of the potential problems.When the problem became public knowledge,the firm's stock price fell dramatically.This illustrates the value that investors place on the ethical behavior of businesses.

Accepted Answer

The scenario described demonstrates how investors can react negatively to unethical behavior by businesses, resulting in a loss of stock value.

Question 15

A list of "watchdogs" including customers,socially conscious investors,and environmentalists)monitor how well firms enforce their ethical and social responsibility policies.

Accepted Answer

This statement is true as customers, socially conscious investors, and environmentalists are all examples of stakeholders who can monitor and hold firms accountable for their ethical and social responsibility policies.

Question 16

In a famous speech,former President John F.Kennedy proposed that businesses had four basic rights,and in his own words,he proclaimed that "each one of them leads us back to the right to keep the profits from one's business."

Accepted Answer

The answer of In a famous speech,former President John F.Kennedy...

Question 17

Some experts feel that corporate social responsibility means solely making money for stockholders.

Accepted Answer

The answer of Some experts feel that corporate social responsibility...

Question 18

A business that takes a public position on a political issue that affects the welfare of society is exercising corporate social responsibility.

Accepted Answer

Corporate social responsibility includes a commitment by businesses to act in an ethical and socially responsible manner, and taking a public position on political issues that affect society is one way to demonstrate that commitment.

Question 19

Corporate social responsibility covers all those social issues outside our businesses that affect customers and the environment,but not internal issues such as employee considerations and work safety.Internal issues are covered by business laws.

Accepted Answer

Corporate social responsibility includes both internal and external issues. It involves not only addressing social and environmental concerns outside the organization but also ensuring ethical practices within the company, including employee considerations and work safety. While laws may provide some guidance in addressing internal issues, practicing corporate social responsibility goes beyond legal compliance.

Question 20

A social audit measures a firm's progress in the area of worker-management relations.

Accepted Answer

A social audit is a process of assessing and reporting a firm's progress in various areas of social responsibility, including worker-management relations.

Quiz 4: Demanding Ethical and Socially Responsible Behavior