Question 1

Since goods are more widely manufactured and sold in the global marketplace, this has caused U.S. companies to ________.

Accepted Answer

The increased global marketplace has resulted in U.S. companies facing difficult decisions about working with companies in other countries that do not meet U.S. standards for human rights and employment standards in the workplace. This has led to ethical considerations and challenges for companies to maintain their own standards while operating in a global marketplace. Option A is incorrect as governments do not necessarily modify their ethical standards for U.S. companies. Option B is incorrect as offshore manufacturing facilities are not being closed down because of different ethical standards. Option C is incorrect as the ethical standards are not just limited to the treatment of U.S. employees but also global employees in the manufacturing facilities.

Question 2

A corporation's first responsibility is ________.

Accepted Answer

A corporation's first responsibility is to its stockholders, as they are the owners and provide the funds that allow the corporation to operate. However, corporations also have responsibilities to their employees, society, and the government.

Question 3

How do companies conduct a social audit?

Accepted Answer

Companies conduct a social audit by conducting an internal systematic examination that measures and monitors the progress of the company in meeting its corporate social responsibility goals. This includes evaluating the company's impact on social, environmental, and economic factors, as well as assessing the effectiveness of its CSR policies and initiatives. This helps companies identify areas for improvement and develop strategies to address social and environmental concerns.

Question 4

When a pharmaceutical company develops a new drug to fight malaria and ships it out to a region of the world where the populace cannot afford to buy the drug, this is an example of ________.

Accepted Answer

This scenario presents an ethical dilemma because the pharmaceutical company has developed a potentially life-saving drug, but the target market cannot afford it. The company must decide whether to sell the drug at a lower price or provide it for free, which could have financial implications for the company.

Question 5

Which of the following is NOT a benefit of corporate social responsibility?

Accepted Answer

Lower costs for materials and labor are not typically a benefit of corporate social responsibility. In fact, implementing CSR initiatives often requires additional investments and expenses, at least in the short term. However, the other options listed - sales increase through environmentally and ethically conscious labeling, efficiency increases through waste reduction, and retaining top talent - are commonly cited as benefits of CSR.

Question 6

Which of the following is least likely to be an environmental, health, or safety concern for a farmer?

Accepted Answer

The construction of steel-walled barns is primarily a structural and economic concern rather than an environmental, health, or safety issue, unlike the other options which directly relate to such concerns.

Question 7

A toy company regularly donates some of its profits to charitable organizations. This company is exercising ________.

Accepted Answer

Corporate philanthropy refers to a company's charitable donations and contribution towards social causes. Therefore, in this case, the toy company is exercising corporate philanthropy by regularly donating a portion of its profits to charitable organizations.

Question 8

Corporate social responsibility is mainly concerned with how a company affects the ________.

Accepted Answer

Corporate social responsibility is focused on how a company impacts the community in which it operates. This includes areas such as environmental impact, labor practices, and philanthropy. While a company's actions may also affect other stakeholders such as investors, vendors, and families, the primary focus of CSR is on the community at large.

Question 9

Which of the following best defines the essential task of self-reporting?

Accepted Answer

Self-reporting involves communicating a company's actions and performance, particularly in areas like corporate social responsibility, to stakeholders, including stockholders.

Question 10

When a magazine refuses to accept advertisements featuring "size zero" models on the grounds that it could encourage eating disorders in young women, this is an example of paying attention to which pillar of corporate social responsibility?

Accepted Answer

By refusing to accept advertisements featuring "size zero" models, the magazine is showing that it is paying attention to marketing and consumer issues, specifically related to the potential harm that such advertisements could cause for young women who may develop eating disorders as a result of feeling pressure to conform to this standard of beauty.

Question 11

The primary mission of most corporations is ________.

Accepted Answer

The primary mission of most corporations is to make a profit for their shareholders or owners. While providing useful products and jobs are important aspects of running a successful business, the ultimate goal is to generate profits and maximize shareholder value. Creating a stable balance sheet is also important for financial stability, but it is not the primary mission of a corporation.

Question 12

When a community gives Wal-Mart subsidies to attract them to the area and then the workers are paid so poorly that they have to apply for public assistance, this is an example of the failure of which of the pillars of corporate social responsibility?

Accepted Answer

This situation reflects a failure in community and "good neighbor" policies, as the subsidies intended to benefit the community result in a burden due to low wages requiring public assistance.

Question 13

Which of the following is an example of ratings and rankings of the level of corporate social responsibility of companies?

Accepted Answer

The Business Ethics Award given by Business Ethics magazine is an example of a ranking or rating related to corporate social responsibility.

Question 14

Which is an example of using social networking to foster corporate social responsibility?

Accepted Answer

Pepsi RefreshEverything's website allows people to post project proposals for meeting community needs, which fosters corporate social responsibility. The platform enables individuals to engage with the company and share their ideas, encouraging social responsibility and community involvement. Additionally, the use of social media to support the campaign could increase its reach and impact.

Question 15

When the banana supplier Chiquita begins to improve conditions for its workers by constructing schools for employees' families, this is an example of which of the following pillars of corporate social responsibility?

Accepted Answer

The answer of When the banana supplier Chiquita begins to...

Question 16

When Shell Oil works toward reducing emissions of nitrous oxide and sulfur dioxide from its facilities, this is NOT an example of which of the following pillars of corporate social responsibility?

Accepted Answer

Reducing emissions of nitrous oxide and sulfur dioxide is directly related to environmental, health, and safety concerns, not ethical sourcing and procurement, which deals with obtaining goods and services in a responsible and sustainable manner.

Question 17

When Gary Erickson, the founder of Clif Bar, Inc., was about to accept an offer of $120 million for the company, he changed his mind because ________.

Accepted Answer

According to the passage, Gary Erickson changed his mind about accepting the $120 million offer because the purchasers were planning to move Clif Bar out of state and fire all current employees.

Question 18

Which of the following is an internal examination by a company to measure its performance in relation to corporate social responsibility?

Accepted Answer

A social audit is a comprehensive internal examination by a company to measure its performance in relation to corporate social responsibility. Option A, corporate watchdog analysis, refers to external monitoring and assessment by advocacy groups or organizations. Self-reporting, option B, is a company's own voluntary disclosure of its sustainability or CSR activities, but it does not involve an internal examination. Public ratings and rankings, option D, refer to external evaluations of a company's CSR activities by third-party organizations or rating agencies.

Question 19

The Calvert Company assigns companies scores between 1 and 5 on which of the following categories?

Accepted Answer

The Calvert Company is known for evaluating companies on their community relations, among other social responsibility criteria.

Question 20

Which of the following is the practice of reporting to stockholders about corporate social responsibility and the ethical advances of a company?

Accepted Answer

The answer of Which of the following is the practice...

Quiz 3: Ethics and Social Responsibility