Question 1

One of the key difficulties managers seem to demonstrate when considering ethics is the ability to distinguish between corporate ethics and corporate principles.

Accepted Answer

False

Question 2

Basically, the invisible-hand perspective of corporate social responsibility states that corporations can be socially responsible by making profits and obeying the law.

Accepted Answer

The invisible-hand perspective posits that corporations contribute to social welfare by focusing on their core objective of profit-making within the legal framework, as their economic activities naturally lead to the distribution of resources and wealth in society.

Question 3

A broad view of social responsibility outlines four categories of responsibilities of management. These are economic, legal, discretionary and social.

Accepted Answer

The four categories of responsibilities of management in a broad view of social responsibility are economic, legal, ethical, and philanthropic (or discretionary).

Question 4

Generous charitable donations help perceptions of companies even when they are behaving illegally.

Accepted Answer

Generous charitable donations can improve public perceptions of companies by showcasing their commitment to social responsibility, even if they are involved in illegal activities. This phenomenon is often related to the concept of corporate social responsibility (CSR), where companies attempt to make a positive impact on society, and can sometimes offset negative perceptions caused by unethical or illegal behavior.

Question 5

Providing an opportunity to evaluate the extent to which an organisation is meeting its social objectives, is an advantage derived from conducting a social scan.

Accepted Answer

The answer of Providing an opportunity to evaluate the extent...

Question 6

Issues management and social scanning are similar in that they are informal and unsystematic.

Accepted Answer

Issues management and social scanning are systematic processes designed to identify and analyze trends, developments, or issues in the external environment that could impact an organization. They involve structured methods to monitor, evaluate, and respond to these factors, rather than being informal or unsystematic.

Question 7

An amoral management style is preferable to other management styles as it is not immoral and precious time is not wasted on ancillary issues.

Accepted Answer

An amoral management style, which disregards ethical considerations, can lead to unethical decisions and harm to stakeholders, making it less preferable than ethical management styles that consider the impact of decisions on all stakeholders.

Question 8

Haigh and Jones (2006) identified six sets of factors that might influence corporate social responsibly. They include pressures from competitors, regulatory pressures from both government and non-government organisations and internal pressures on employees.

Accepted Answer

Haigh and Jones (2006) identified three sets of factors influencing corporate social responsibility: pressures from competitors, regulatory pressures, and internal pressures, not six.

Question 9

According to Jones (1991), the moral intensity of an ethical issue is critical to the decision-making process because it influences the identification of an issue as an ethical problem.

Accepted Answer

Jones (1991) introduced the concept of moral intensity in the context of ethical decision-making, suggesting that the perceived magnitude of consequences, social consensus, and proximity of the ethical issue influence how individuals recognize and respond to ethical dilemmas, thereby affecting the decision-making process.

Question 10

Which of the following has been developed over history and is not one of the three major perspectives of corporate social responsibility?

Accepted Answer

The 'don't bite the hand that feeds you' perspective is not a recognized major perspective of corporate social responsibility. The three major perspectives are the invisible-hand, hand-of-management, and hand-of-government perspectives.

Question 11

According to Friedman, why are activities of charitable firms not considered to be socially responsible?

Accepted Answer

Friedman argues that the primary responsibility of a business is to its stockholders, and charitable activities divert funds that could otherwise be returned to them or reinvested in the business.

Question 12

The invisible-hand perspective of corporate social responsibility is traced back to the writings of Adam Smith. Its most noted supporter in recent times has been:

Accepted Answer

Milton Friedman is the most noted recent supporter of the invisible-hand perspective of corporate social responsibility, which emphasizes that the primary responsibility of a business is to its shareholders and that the pursuit of profit within the law will inherently benefit society.

Question 13

Which is not one of the areas which the hand-of-government perspective argues should be regulated by government?

Accepted Answer

The hand-of-government perspective typically advocates for government regulation in areas such as minimum wage rates, product safety, and pollution control to protect public interests and ensure fair practices. However, setting minimum prices is not commonly advocated for within this perspective as it can interfere with free market competition and efficiency.

Question 14

When compared to other perspectives, the hand-of-management perspective of corporate social responsibility is:

Accepted Answer

The hand-of-management perspective of corporate social responsibility is inclusive of social responsibility as it emphasizes the role of management in addressing social and ethical issues beyond just profit-making.

Question 15

Several arguments are raised supporting organisations' social responsibility and the hand-of-management perspective. They are the anti-freeloader argument, the capacity argument, the enlightened self-interest argument and the:

Accepted Answer

The answer of Several arguments are raised supporting organisations' social...

Question 16

What do the economic and legal responsibilities of management have in common?

Accepted Answer

Both economic responsibilities, such as making a profit, and legal responsibilities, such as obeying the law, are fundamental obligations that businesses must fulfill to operate effectively and ethically in society.

Question 17

A company providing a large number of portable electrical generators at no cost to victims of a hurricane would be practising activities best described as:

Accepted Answer

Discretionary responsibilities refer to voluntary actions taken by a company to improve the community's welfare, such as providing free generators to hurricane victims.

Question 18

Laws and regulations specify employer responsibilities on matters relating to:

Accepted Answer

Laws and regulations indeed cover all these areas: equal employment opportunity, pensions and benefits, and health and safety, specifying employer responsibilities in each domain.

Question 19

Two areas of current concern regarding a business's responsibilities to the customer stakeholder group are health and safety issues regarding products and issues concerning:

Accepted Answer

Quality of products is a significant concern for customers, as it directly affects their satisfaction and safety. Businesses are responsible for ensuring their products meet certain standards of quality.

Question 20

While the community often wants business aid, companies need various forms of community support which include:

Accepted Answer

Companies require a supportive infrastructure to operate effectively, which includes good schools and recreational facilities for employees, reliable police and fire services for safety, and adequate transportation for commuting and logistics.

Quiz 4: Social Responsibility and Ethics