Question 1

Stakeholders are all those who are affected by or can affect the activities of the firm.

Accepted Answer

Stakeholders include anyone who is impacted by the business or can influence its operations, encompassing employees, customers, suppliers, community members, and shareholders.

Question 2

The media, social interest groups, and consumer groups are all considered primary stakeholders.

Accepted Answer

Primary stakeholders are those directly affected by an organization's operations, such as employees, customers, suppliers, and investors. The media, social interest groups, and consumer groups are considered secondary stakeholders because they do not engage in direct economic exchange with the organization but can influence or be affected by its actions.

Question 3

The primary stakeholders of a firm are those who have a formal, official, or contractual relationship with the organization.

Accepted Answer

Primary stakeholders typically include employees, customers, suppliers, and investors, all of whom have formal or contractual relationships with the firm.

Question 4

Stakeholder is simply another word for stockholder.

Accepted Answer

A stakeholder is anyone with an interest in a business or project, which can include employees, customers, suppliers, and the community, not just those who own shares (stockholders).

Question 5

Secondary stakeholders are those individuals or organizations that have a formal, official, or contractual relationship with the organization.

Accepted Answer

Secondary stakeholders are those who indirectly affect or are affected by an organization's actions, such as the general public or the communities in which the organization operates, rather than having a direct formal or contractual relationship.

Question 6

If Ace Lumber had a contract with Centex to provide the company with building materials, from Centex's perspective Ace Lumber would be a primary stakeholder.

Accepted Answer

From Centex's perspective, Ace Lumber is a primary stakeholder because they have a direct business relationship and contractual obligation, impacting Centex's operations and success.

Question 7

If you owned stock in IBM, you would be considered to be a primary stakeholder of the IBM Corporation.

Accepted Answer

As a stockholder, you own a share of the corporation, making you a primary stakeholder with a direct financial interest in the company's performance.

Question 8

If you live near a stream and are affected by the pollutants that a nearby chemical factory puts into the stream, then you are a primary stakeholder of the chemical factory.

Accepted Answer

Primary stakeholders are directly involved in the operations of a business, such as employees or investors. Affected residents are considered secondary stakeholders.

Question 9

In a very general sense, corporate social responsibility is defined as the interaction between business and the social environment in which it exists.

Accepted Answer

Corporate social responsibility (CSR) refers to a company's efforts to improve society in some way. These efforts can range from donating money to nonprofits to implementing environmentally-friendly policies in the workplace. CSR is about a company taking responsibility for the social and environmental impacts of its business operations.

Question 10

To be considered a moral agent, a business must act in a way that is considered moral.

Accepted Answer

A moral agent is an entity that can make ethical decisions and be held accountable for its actions. For a business to be considered a moral agent, it must act in ways that are considered moral by societal standards, making decisions that reflect ethical principles.

Question 11

Milton Friedman's perspective on social responsibility is best characterized as social responsiveness.

Accepted Answer

Milton Friedman believed that the primary social responsibility of a business is to increase its profits, arguing against the concept of businesses being socially responsive in ways that detract from their economic goals.

Question 12

In direct contrast to H.R. Bowen's concepts of social contract and moral agent, the economic responsibility perspective of social responsibility argues that corporations cannot be moral agents.

Accepted Answer

The economic responsibility perspective focuses on profit maximization and views corporations primarily as economic entities, not moral agents, contrasting with Bowen's view of corporations having social and moral responsibilities.

Question 13

The four primary perspectives of corporate social responsibility are economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility.

Accepted Answer

These four perspectives—economic, legal, ethical, and philanthropic responsibilities—comprise Carroll's CSR pyramid, which outlines the different layers of responsibilities that corporations should aim to fulfill.

Question 14

Proponents of the economic responsibility perspective argue that corporations cannot be moral agents.

Accepted Answer

Proponents of the economic responsibility perspective often argue that corporations are primarily economic entities focused on profit maximization, and thus cannot possess moral agency like individuals.

Question 15

The legal responsibility perspective argues that business should act in ways that are consistent with public policy.

Accepted Answer

The legal responsibility perspective holds that businesses should operate in a manner that aligns with the laws and regulations established by governments, which are a reflection of public policy and societal norms.

Question 16

The economic responsibility perspective of social responsibility stipulates that businesses should act in a way that is consistent with society's view of responsible behavior as well as with established laws and policies.

Accepted Answer

The economic responsibility perspective primarily focuses on the generation of profit within the bounds of the law, rather than aligning business actions with society's views of responsible behavior or established laws and policies, which is more closely related to the legal and ethical perspectives of social responsibility.

Question 17

Supporters of the legal responsibility perspective include a "broad pattern of social direction" in the concept of public policy.

Accepted Answer

The legal responsibility perspective on public policy includes a broad pattern of social direction, as it emphasizes the role of government and law in shaping societal norms and behaviors.

Question 18

An organization that is primarily focused on making a profit within the "rules of the game subscribes to the economic perspective of social responsibility.

Accepted Answer

The economic perspective of social responsibility emphasizes that a company's primary responsibility is to its shareholders, and its main goal should be profit maximization within the legal and ethical boundaries of society, often referred to as playing by the "rules of the game."

Question 19

The four faces of social responsibility are legal/responsible, illegal/responsible, legal/irresponsible, and illegal/irresponsible.

Accepted Answer

The four faces of social responsibility are legal/responsible, illegal/responsible, legal/irresponsible, and illegal/irresponsible.

Question 20

Social responsiveness implies a proactive and tangible effort to contribute to the well-being of society.

Accepted Answer

Social responsiveness refers to the actions and policies a company or individual takes to address societal issues and contribute positively to the community's welfare, indicating a proactive approach to social responsibility.

Quiz 3: Social Responsibility and Ethics

Stakeholders are all those who are affected by or can affect the activities of the firm.

The media, social interest groups, and consumer groups are all considered primary stakeholders.

The primary stakeholders of a firm are those who have a formal, official, or contractual relationship with the organization.

Stakeholder is simply another word for stockholder.

Secondary stakeholders are those individuals or organizations that have a formal, official, or contractual relationship with the organization.

If Ace Lumber had a contract with Centex to provide the company with building materials, from Centex's perspective Ace Lumber would be a primary stakeholder.

If you owned stock in IBM, you would be considered to be a primary stakeholder of the IBM Corporation.

If you live near a stream and are affected by the pollutants that a nearby chemical factory puts into the stream, then you are a primary stakeholder of the chemical factory.

In a very general sense, corporate social responsibility is defined as the interaction between business and the social environment in which it exists.

To be considered a moral agent, a business must act in a way that is considered moral.

Milton Friedman's perspective on social responsibility is best characterized as social responsiveness.

In direct contrast to H.R. Bowen's concepts of social contract and moral agent, the economic responsibility perspective of social responsibility argues that corporations cannot be moral agents.

The four primary perspectives of corporate social responsibility are economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility.

Proponents of the economic responsibility perspective argue that corporations cannot be moral agents.

The legal responsibility perspective argues that business should act in ways that are consistent with public policy.

The economic responsibility perspective of social responsibility stipulates that businesses should act in a way that is consistent with society's view of responsible behavior as well as with established laws and policies.

Supporters of the legal responsibility perspective include a "broad pattern of social direction" in the concept of public policy.

An organization that is primarily focused on making a profit within the "rules of the game subscribes to the economic perspective of social responsibility.

The four faces of social responsibility are legal/responsible, illegal/responsible, legal/irresponsible, and illegal/irresponsible.

Social responsiveness implies a proactive and tangible effort to contribute to the well-being of society.