Question 1

At which level of the pyramid of corporate social responsibility must a business "play by the rules"?
A) economic
B) philanthropic
C) legal
D) ethical
E) conformist

Accepted Answer

Firms operating at the legal level obey the law and play by the rules of the game.

Question 2

Which of the following could be a stakeholder of a corporation?
A) employee
B) customer
C) local citizen
D) supplier
E) all of the above

Accepted Answer

The stakeholders of a typical corporation include employees,management,customers,the local community,suppliers,and owners.

Question 3

NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children's Hospital Boston.This funding is an example of:
A) corporate social responsibility
B) ethical conveyance
C) a duty to engage in cause marketing
D) a right to engage in social marketing
E) multiculturalism

Accepted Answer

Corporate social responsibility is a business's concern for society's welfare,in this case an injury prevention program.

Question 4

Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation.Every night Universal Studios Japan hosts a fireworks display.The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays.If the allegations are true,in terms of the pyramid of corporate social responsibility,then Universal Studios Japan is not operating at a(n)_____ responsibility level.
A) legal
B) philanthropic
C) ethical
D) economic
E) cultural

Accepted Answer

Universal Studios Japan is not obeying the letter of the law.

Question 5

Many airlines offer passengers the option to purchase carbon offsets as an environmentally-friendly compensation for their carbon footprint.For example,Delta customers can pay $10 to a fund that plants trees as a way to offset the carbon emissions from the airplane.Some would say Delta is:
A) acting in accordance with recent rulings by the U.S.Supreme Court
B) socially responsible
C) not ethically motivated
D) demonstrating a lack of concern for diversity
E) using issue-oriented marketing

Accepted Answer

Social responsibility is the duty that business feels for the welfare of society.

Question 6

Which theory holds that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation?
A) stockholder theory
B) theory of reasoned action
C) attribution theory
D) theory of ethical enhancement
E) stakeholder theory

Accepted Answer

This is the definition of stakeholder theory.

Question 7

_____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.
A) Sustainability
B) Philanthropy
C) Cause marketing
D) Creative ethics
E) International ethics

Accepted Answer

Sustainability looks at the long term and is based on the notion that companies cannot thrive for long in a world where billions of people are suffering and are desperately poor.

Question 8

The pyramid of corporate social responsibilities contains all of the following components EXCEPT:
A) economic responsibilities
B) ethical responsibilities
C) cultural responsibilities
D) legal responsibilities
E) philanthropic responsibilities

Accepted Answer

The pyramid of corporate social responsibilities includes economic responsibilities, ethical responsibilities, legal responsibilities, and philanthropic responsibilities. However, cultural responsibilities are not included in the pyramid.

Question 9

Which of the following statements about the theory of sustainability is true?
A) Sustainability is an internal process in which companies match resources and objectives.
B) Sustainability is the idea that socially responsible companies will outperform their peers when they focus on the world's problems as marketing opportunities.
C) According to the theory of sustainability,a company cannot be socially responsible without a code of ethics and managerial support of that code.
D) According to the theory of sustainability,ethical behavior should never be viewed as the means of obtaining a competitive advantage.
E) Sustainability is only successful if it focuses on organizational strengths.

Accepted Answer

Sustainability is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

Question 10

At the most basic level,a firm must be profitable.What level of the pyramid of corporate social responsibility is this?
A) social
B) economic
C) ethical
D) legal
E) accountability

Accepted Answer

The pyramid of corporate social responsibility portrays economic performance as the foundation for the other three responsibilities (legal,ethical,and philanthropic).

Question 11

Concern about U.S.corporations' use of illegal payments and bribes in international business dealings led to the passage of the:
A) Global Pact on Business
B) International Trade Commission Act
C) United Nations Anti-Corruption Act
D) Foreign Corrupt Practices Act
E) International Code of Business Practices

Accepted Answer

The Foreign Corrupt Practices Act is a law that prohibits U.S.corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.

Question 12

_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.
A) Consumerism
B) Corporate social responsibility
C) Cultural sensitivity
D) Conventional morality
E) Environmental consideration

Accepted Answer

Corporate social responsibility is a business's concern for society's welfare.

Question 13

Corporate social responsibility is defined as the:
A) belief that the legal system defines ethical behavior
B) development of inclusive codes of ethics
C) rules by which social rewards are attained
D) concern for social welfare by businesses
E) coordination of social programs for publicity purposes

Accepted Answer

Corporate social responsibility is a business's concern for society's welfare.

Question 14

One of the favorite foods in Thailand is shark fin soup.A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison,yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable.In terms of the pyramid of corporate social responsibility,this indicates that the soup manufacturer was operating at a(n)_____ responsibility level.
A) legal
B) philanthropic
C) ethical
D) economic
E) cultural

Accepted Answer

The company believed its mission was to be profitable.

Question 15

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.This donation of appliances is an example of how companies assume their:
A) corporate social responsibility
B) ethical conveyance
C) duty to engage in cause marketing
D) right to engage in social marketing
E) multiculturalism

Accepted Answer

Corporate social responsibility is a business's concern for society's welfare,in this case deserving families selected by the Habitat organization.

Question 16

The four components of the pyramid of corporate social responsibility are:
A) sustainability,creativity,profit,and culture
B) organizational culture,creativity imagery,economic performance,and objectivity
C) organizational,financial,social,and cultural responsibilities
D) sustainability,legality,creativity,and competition
E) economic,legal,ethical,and philanthropic responsibilities

Accepted Answer

The four components of the pyramid of corporate social responsibility are economic,legal,ethical,and philanthropic responsibilities.

Question 17

In the future,electrical power may come from quantum nucleonics,a form of nuclear power that produces no residual radiation.The ability to use this form of power will require equipment adaptations,but it will solve the world's need for clean and efficient power.Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency (EPA)are operating at a(n)_____ responsibility level.
A) legal
B) philanthropic
C) ethical
D) economic
E) cultural

Accepted Answer

At the legal responsibilities level,the business obeys the law.

Question 18

Novartis created the Novartis Research Institute for Tropical Diseases in Singapore.The institute is unique because it is a not-for-profit organization that focuses on the discovery of new drugs for the treatment of neglected diseases,such as dengue fever and tuberculosis.Not only is this good business,it is also:
A) mandated by Supreme Court rulings
B) socially responsible
C) not ethically motivated
D) demonstrating a lack of concern for diversity
E) using environmental marketing

Accepted Answer

Social responsibility is the duty that a business feels for the welfare of society.By helping developing nations,Novartis is helping to meet the needs of society.

Question 19

The _____ prohibits U.S.corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.
A) Fortune 500 Pact on Business
B) International Trade Commission Act
C) United Nations Anti-Corruption Act
D) Foreign Corrupt Practices Act
E) Sherman Anti-Bribery Act

Accepted Answer

This is the purpose of the Foreign Corrupt Practices Act.

Question 20

Critics of the Foreign Corrupt Practices Act contend that the act has:
A) hindered the growth of developing nations
B) created a competitive disadvantage for U.S.businesses
C) promoted a negative image of American businesspeople
D) given U.S.businesses an unfair advantage over companies in the host country
E) encouraged deceptive advertising

Accepted Answer

Many contend that bribery is an unpleasant but necessary part of international business and the Act puts U.S.businesses at a disadvantage compared to firms from other countries that go along with the practice.

Quiz 3: Ethics & Social Responsibility

At which level of the pyramid of corporate social responsibility must a business "play by the rules"?

Which of the following could be a stakeholder of a corporation?

NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children's Hospital Boston.This funding is an example of:

Many airlines offer passengers the option to purchase carbon offsets as an environmentally-friendly compensation for their carbon footprint.For example,Delta customers can pay $10 to a fund that plants trees as a way to offset the carbon emissions from the airplane.Some would say Delta is:

Which theory holds that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation?

_____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

The pyramid of corporate social responsibilities contains all of the following components EXCEPT:

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

At the most basic level,a firm must be profitable.What level of the pyramid of corporate social responsibility is this?

Concern about U.S.corporations' use of illegal payments and bribes in international business dealings led to the passage of the:

_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.

Corporate social responsibility is defined as the:

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.This donation of appliances is an example of how companies assume their:

The four components of the pyramid of corporate social responsibility are:

The _____ prohibits U.S.corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.

Critics of the Foreign Corrupt Practices Act contend that the act has: