Question 1

What is the problem of "vanishing individual responsibility?"

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Question 2

According to Keith Davis,in addition to considering potential profitability,a business must weigh the long-range social costs of its activities as well.A business should act only if the overall benefit to society is positive.

Accepted Answer

Keith Davis believed that businesses should not only focus on profitability but also consider the long-term social costs of their activities. They should only engage in activities that have an overall positive benefit for society.

Question 3

According to proponents of broadening corporate responsibility,corporations should welcome the outside opinions of society as a whole,local communities,customers,suppliers,employees,managers,and stockholders.

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Proponents of broadening corporate responsibility believe that corporations should be open to the opinions and feedback of various stakeholders, including society as a whole, local communities, customers, suppliers, employees, managers, and stockholders. This perspective emphasizes the importance of considering the long-term impacts of corporate decisions on all stakeholders and working towards more sustainable and socially responsible business practices.

Question 4

Briefly explain Milton Friedman's view of social responsibility.

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Question 5

A corporate moral code should set reasonable goals and subgoals,with an eye on blunting unethical pressures on subordinates.

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A corporate moral code should aim to establish clear expectations and guidelines for ethical behavior, both at the organizational level and for individual employees. This can help to reduce the influence of unethical pressures or temptations in the workplace. The goals and subgoals set by the code should be reasonable and attainable, to ensure that employees are not forced into difficult ethical dilemmas or situations where unethical behavior may seem like the only option. Ultimately, a well-designed corporate moral code can help to promote a culture of integrity and ethical decision-making within the organization.

Question 6

Briefly sketch the evolution of corporations.

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Question 7

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

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Question 8

It is never profitable for corporations to acknowledge that business should be conducted to make a positive contribution to society rather than just make a profit.

Accepted Answer

There is an increasing emphasis on corporate social responsibility and creating a positive impact on society. Many corporations are recognizing the importance of sustainability and ethical practices in addition to pursuing profits. Many companies have even adopted the triple bottom line approach, which takes into account social, environmental, and financial factors. In the long run, prioritizing social responsibility can help companies build a stronger brand reputation and gain customer loyalty.

Question 9

An effective professional or business moral code¾as well as the public's awareness of this code¾is never good for business.

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An effective professional or business moral code and the public's awareness of this code can actually be good for business in the long run. It can help build trust and credibility with customers, attract and retain ethical employees, and increase overall reputation and success.

Question 10

John Kenneth Galbraith rejects the assumption that Smith's invisible hand will solve all social and economic problems.

Accepted Answer

Galbraith believed that government intervention was necessary to address certain social and economic problems, and did not solely rely on the free market principles espoused by Smith's invisible hand.

Question 11

Explain the relevance of the concept of a fiduciary relationship to the debate over corporate social responsibility.

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Question 12

What has Yahoo done that could help countries violate human rights? Apply a normative theory of ethics to this moral issue to explain why Yahoo did something immoral.

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Question 13

Describe the ethical challenges that Yahoo faces in the China market.

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Question 14

What is a corporation (or limited-liability company) and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?

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Question 15

Does a company like Levi Strauss have an obligation to keep a plant open in the United States if it can be more profitable going to a foreign country? Share your reasoning.
If you were the owner of a company,would your perspective be any different?

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Question 16

According to law professor Christopher D.Stone,the relationship between corporate management and its shareholders is identical with the relationship between you and an investment adviser.

Accepted Answer

Christopher D. Stone did not make this statement. The relationship between corporate management and its shareholders is not identical to the relationship between an individual and an investment adviser, as corporate management has legal and fiduciary responsibilities towards its shareholders.

Question 17

The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

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Question 18

What is a moral issue raised by how drug companies are testing drugs? Apply a normative theory of ethics to this moral issue to explain why some people would think the drug companies are doing something immoral.

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Question 19

In his essay "Social Responsibility and Economic Efficiency," Kenneth Arrow has argued that corporations only have a responsibility to maximize shareholder profits.

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Kenneth Arrow argued that corporations have social responsibilities beyond just maximizing shareholder profits, emphasizing the importance of ethical considerations and the impact of corporate actions on society.

Question 20

According to Kenneth Arrow,trust and confidence are highly overrated in business.

Accepted Answer

Kenneth Arrow, a Nobel Prize-winning economist, actually emphasized the importance of trust and confidence in the functioning of economic systems, suggesting that they are fundamental to the efficiency and effectiveness of markets.

Quiz 5: Corporations