Question 1

Which of the following exists to define the rules and structures of society within which all organizations must operate?
A)For-profits
B)Governments
C)Nonprofits
D)Religion

Accepted Answer

Governments exist to define the rules and structures of society within which all organizations, including for-profits and nonprofits, must operate. Religion may play a role in shaping certain societal values and customs, but it is not a formal governing entity in most societies.

Question 2

Strategic CSR expounds the ________ argument in favor of corporate social responsibility.
A)Financial
B)Economic
C)Political
D)Social

Accepted Answer

Strategic CSR aligns with the economic argument, suggesting that businesses can achieve competitive advantage and long-term profitability by integrating social and environmental concerns into their operations.

Question 3

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to do no harm to its stakeholders within its operating environment.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

Carroll's pyramid of corporate social responsibility posits that a firm's ethical responsibility includes doing no harm and going beyond mere legal compliance to address ethical norms and expectations within its operating environment.

Question 4

An application of Milton Friedman's argument is
A)providing workers time off to volunteer in their communities.
B)establishing a recycling program.
C)maximizing shareholder returns.
D)clearly defining ethical concerns along a product's supply chain.

Accepted Answer

Milton Friedman's argument supports the idea of maximizing shareholder returns, as he believed that the primary responsibility of a company is to make a profit and increase shareholder value. He argued that by doing so, a company is indirectly benefiting society as a whole. This aligns with the concept of shareholder theory, which prioritizes the interests of shareholders over other stakeholders in a company.

Question 5

Which of the following best describes nonprofit organizations?
A)They emerge to do social good when the political will or the profit motive is insufficient to address society's needs.
B)They emerge primarily to meet the religious or spiritual needs of a society.
C)They emerge to supplement businesses that do not make profits.
D)They emerge to meet the needs of governments that do not have adequate financial resources to address society's needs.

Accepted Answer

Nonprofit organizations are typically created to address social or environmental issues that are not being adequately addressed by government or for-profit businesses. They are focused on making a positive impact on society rather than generating profit or meeting religious needs.

Question 6

The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility,which states that
A)ultimately it is government,not business,that is responsible for a satisfying society.
B)responsibility for a just society is everyone's responsibility.
C)in a free society,discretionary abuse of societal responsibilities leads,eventually,to mandated reprisals.
D)concern for CSR must be the first priority of the courts.

Accepted Answer

The Iron Law of Social Responsibility argues that if businesses abuse their discretionary power to be socially responsible, there will eventually be mandated regulations put in place by the government. Therefore, corporate social responsibility is important to avoid such regulations and to promote a sustainable and just society. Option A is incorrect as it ignores the role of businesses in society, while option B is too general and does not specifically address corporate social responsibility. Option D is also incorrect as it prioritizes the role of the courts over that of businesses in promoting corporate social responsibility.

Question 7

Which of the following is NOT part of Archie Carroll's pyramid of corporate social responsibility?
A)Stakeholder responsibility
B)Legal responsibility
C)Discretionary responsibility
D)Ethical responsibility

Accepted Answer

Stakeholder responsibility is actually a part of Archie Carroll's pyramid of corporate social responsibility, along with legal responsibility, ethical responsibility, and discretionary responsibility.

Question 8

Applying Archie Carroll's pyramid of corporate social responsibility,when a firm closes due to financial mismanagement and bankruptcy,it has not met its ________.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

According to Archie Carroll's pyramid of corporate social responsibility, economic responsibility is the foundation of all other responsibilities. This includes a company's responsibility to be profitable and financially stable. If a company is closing due to financial mismanagement and bankruptcy, it has not fulfilled its economic responsibility. Legal responsibility refers to obeying laws and regulations, ethical responsibility pertains to doing what is right and moral, and discretionary responsibility involves going above and beyond what is expected to contribute to society.

Question 9

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to take proactive,strategic behaviors that benefit both the firm and society.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

Discretionary responsibility refers to a firm's voluntary actions that go beyond its economic, legal, and ethical responsibilities. These actions are strategic in nature and are intended to benefit both the firm and society. Examples of discretionary responsibility include charitable donations, community involvement, and environmental sustainability initiatives. Therefore, the best choice is D - discretionary responsibility.

Question 10

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to produce an acceptable return for investors.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

The economic responsibility is the foundation of the pyramid and refers to a company's responsibility to make a profit and generate a return for its shareholders or investors. The other three responsibilities (legal, ethical, and discretionary) build upon this foundation.

Question 11

Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP),which supports carbon limits and trading.This is an illustration of which argument for corporate social responsibility?
A)Ethical
B)Moral
C)Rational
D)Economic

Accepted Answer

This is an illustration of the rational argument for corporate social responsibility, which suggests that companies that prioritize sustainability and social responsibility will ultimately be more successful and profitable in the long run. The energy companies and industrial manufacturers in USCAP likely recognize that carbon limits and trading will become increasingly important and necessary in the years ahead, and are taking proactive steps to address these challenges.

Question 12

The Malden Mills textile plant is an important case study in CSR because 
A)it moved its operations to Asia to save production costs,but eliminated local jobs.
B)it moved its operations to Asia while also maintaining local jobs.
C)it remained open,continuing to pay its employees,after a fire destroyed the factory.
D)it closed after a fire destroyed the factory.

Accepted Answer

The Malden Mills textile plant remained open, continuing to pay its employees, after a fire destroyed the factory. The CEO, Aaron Feuerstein, made the ethical decision to prioritize his employees over profits and rebuild the plant in the same location, preserving hundreds of jobs in the local community. This decision demonstrated the importance of corporate social responsibility, even in the face of financial hardship.

Question 13

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to act within the framework of laws and regulations drawn up by the government and judiciary.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

According to Carroll's pyramid, the legal responsibility is the base level of corporate social responsibility, which means that a firm must fulfill its economic responsibilities while staying in compliance with the laws and regulations set by the government and judiciary. Therefore, the correct choice is B) legal responsibility.

Question 14

Which of the following is an example of an economic argument for corporate social responsibility?
A)A company invests in clean energy for its vehicles because it saves money on transportation.
B)A company installs skylights in its stores to lower lighting costs.
C)A company provides gym memberships to its employees to lower healthcare costs.
D)All of the above are examples of economic arguments for CSR.

Accepted Answer

All the options provided are examples of economic arguments for corporate social responsibility because they demonstrate how CSR initiatives can lead to cost savings and financial benefits for the company.

Question 15

A firm sponsors a 5k race,contributing the race fees to a local charity.According to Archie Carroll's pyramid of corporate social responsibility,the firm is meetings its ________.
A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Accepted Answer

The firm's contribution to a local charity through sponsoring a 5k race falls under discretionary responsibility, the highest level on Archie Carroll's pyramid of corporate social responsibility. This refers to voluntary actions taken by a company that are not necessarily expected or required, but are done to improve the well-being of society or the environment.

Question 16

"In a democratic society,power is taken away from those who abuse it" is a workable definition of:
A)Carroll's CSR rule
B)The Iron Law of Social Responsibility
C)The Alien Tort Claims Act
D)An accommodative view of CSR

Accepted Answer

The Iron Law of Social Responsibility states that those who do not use power responsibly will eventually lose it, aligning with the idea that power is taken away from those who abuse it.

Question 17

In contrast to Milton Friedman's argument,David Packard argued that
A)businesses exist not only to make money but also to contribute to society.
B)the sole purpose of businesses is to make money.
C)businesses need not consider all stakeholders.
D)shareholders are responsible for the larger community within which a firm operates.

Accepted Answer

David Packard argued that businesses exist not only to make money but also to contribute to society. This is in contrast to Milton Friedman's argument that the sole purpose of businesses is to make money for shareholders. Packard believed that businesses have a responsibility to consider the impacts of their actions on all stakeholders, including employees, customers, and the larger community. This view is now widely accepted as part of the concept of corporate social responsibility.

Question 18

Which of these is NOT a for-profit business?
A)Facebook
B)Nike
C)Red Cross
D)Uber

Accepted Answer

The Red Cross is a non-profit organization, while the other options are all for-profit businesses.

Question 19

A central part of the moral argument for corporate social responsibility comes from the thinking that
A)businesses have to pay taxes,so they should have to be responsible in other ways as well.
B)society cannot afford all its needs unless business is forced to go beyond just paying taxes.
C)business leaders and shareholders make money,so they should be morally responsible to society,especially to the poor.
D)a large part of business success comes as much from actions that are congruent with societal values and norms as from factors internal to the company.

Accepted Answer

The moral argument for corporate social responsibility suggests that businesses have a responsibility to contribute to society beyond just making a profit. This is based on the idea that a large part of business success comes from actions that align with societal values and norms, not just factors internal to the company. Therefore, companies should prioritize their social and environmental responsibilities to ensure long-term success and positive societal impact. A, B, and C may also be arguments for corporate social responsibility, but D addresses the central idea behind it.

Question 20

In the 1790s,consumer boycotts occurred in reactions to which of the following?
A)Slave-harvested sugar
B)Cheap cotton from the United States
C)The high price of fuel (lamp)oil
D)The use of the Royal Navy in England to transport slaves

Accepted Answer

Consumer boycotts occurred in the 1790s as a reaction to the use of slave labor to harvest sugar in the Caribbean. Consumers in Europe, particularly in Great Britain, boycotted sugar produced by slaves as a way of protesting against the slave trade. This movement was known as the Sugar Boycott.

Quiz 1: What Is CSR?

Which of the following exists to define the rules and structures of society within which all organizations must operate?

Strategic CSR expounds the ________ argument in favor of corporate social responsibility.

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to do no harm to its stakeholders within its operating environment.

An application of Milton Friedman's argument is

Which of the following best describes nonprofit organizations?

The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility,which states that

Which of the following is NOT part of Archie Carroll's pyramid of corporate social responsibility?

Applying Archie Carroll's pyramid of corporate social responsibility,when a firm closes due to financial mismanagement and bankruptcy,it has not met its ________.

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to take proactive,strategic behaviors that benefit both the firm and society.

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to produce an acceptable return for investors.

Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP) ,which supports carbon limits and trading.This is an illustration of which argument for corporate social responsibility?

The Malden Mills textile plant is an important case study in CSR because

According to Archie Carroll's pyramid of corporate social responsibility,a firm's ________ is to act within the framework of laws and regulations drawn up by the government and judiciary.

Which of the following is an example of an economic argument for corporate social responsibility?

A firm sponsors a 5k race,contributing the race fees to a local charity.According to Archie Carroll's pyramid of corporate social responsibility,the firm is meetings its ________.

"In a democratic society,power is taken away from those who abuse it" is a workable definition of:

In contrast to Milton Friedman's argument,David Packard argued that

Which of these is NOT a for-profit business?

A central part of the moral argument for corporate social responsibility comes from the thinking that

In the 1790s,consumer boycotts occurred in reactions to which of the following?