Question 1

You have been asked to complete this year's social responsibility report for the insurance industry. Which of the following statements would you include as a valid indication of socially responsible activities in this industry?

Accepted Answer

Option D indicates a socially responsible activity by stating that companies contributed over 300,000 volunteer hours through loaned executives and release-time arrangements, which demonstrates a commitment to community involvement and philanthropy. Options A, B, and E do not provide any clear indication of socially responsible activities. Option C actually highlights a lack of diversity within the industry, which is not considered socially responsible.

Question 2

The socioeconomic model of social responsibility places primary emphasis on

Accepted Answer

The socioeconomic model of social responsibility prioritizes the quality of life for society as a whole. This may involve using resources and profits towards improving social issues such as poverty, education, and healthcare. While production and economic return are important factors, they are not the primary emphasis in this model. Exploitation of natural resources and profit may be seen as secondary to the goal of improving overall quality of life.

Question 3

Which of the following best describes the trend in social responsibility models used by companies?

Accepted Answer

More companies have been adopting the socioeconomic model, which integrates social and environmental concerns in business operations and in their interaction with stakeholders on a voluntary basis, reflecting a broader trend towards corporate social responsibility.

Question 4

What two additional rights have been added to Kennedy's original consumer bill of rights?

Accepted Answer

The two additional rights that have been added to Kennedy's original consumer bill of rights are the right to consumer education and the right to service. These rights were added later to ensure that consumers have access to information about the products and services they buy and to ensure that they receive adequate service for the products and services. Option A is incorrect because it only includes the original rights, not the additional ones. Option B is incorrect because "right to listen" is not a common consumer right, and it doesn't include the right to service, which is an important addition. Option D is incorrect because the right to privacy is not an additional right added to the original consumer bill of rights. Option E is incorrect because although the right to reparation is an important consumer right, it was not added to Kennedy's original consumer bill of rights.

Question 5

Long-distance providers are becoming increasingly concerned about certain activities within their industry. Various companies come together voluntarily to implement new standards of social responsibility that members must abide by. What seems to be the primary motivation in this case for an increased interest in social responsibility?

Accepted Answer

The passage suggests that long-distance providers are becoming increasingly concerned about activities within their industry and are implementing new standards of social responsibility voluntarily. The motivation for this seems to be the fear of being subjected to stricter regulations if they do not take action themselves. This is reflected in choice B. Choice A, C, D, and E do not accurately capture the primary motivation mentioned in the passage.

Question 6

Which of the following statements reflects the socioeconomic model of social responsibility?

Accepted Answer

The socioeconomic model of social responsibility emphasizes that businesses should not only focus on profits but also consider the impact of their actions on society. Statement E reflects this model as it shows a corporation taking a stand against apartheid in South Africa, prioritizing social justice over potential profits.

Question 7

All of the following are arguments against increased social responsibility except

Accepted Answer

The argument that social responsibility by firms can prevent increased government intervention is not against increased social responsibility. Instead, it suggests a benefit of businesses engaging in socially responsible actions, implying that such actions can lead to less need for government regulation or intervention in business practices.

Question 8

By ensuring that products are safe and reliable, the Food and Drug Administration and the Consumer Product Safety Commission are taking part in a movement known as

Accepted Answer

The term "consumerism" refers to the protection and promotion of consumers' rights and interests. By ensuring that products are safe and reliable, both the FDA and CPSC are fulfilling their role in promoting consumerism.

Question 9

Which of the following is an argument against social responsibility?

Accepted Answer

The argument against social responsibility is that corporate resources should be focused on maximizing profits, rather than being used to address societal issues. This perspective suggests that businesses exist to generate profits for their shareholders, and that any attempt to divert resources towards social responsibility could have a negative impact on a company's bottom line.

Question 10

Which president stated that consumers have the right to safety, to be informed, to choose, and to be heard?

Accepted Answer

John F. Kennedy is the president who stated that consumers have the right to safety, to be informed, to choose, and to be heard. This statement is often referred to as the Consumer Bill of Rights, which was first introduced by Kennedy in a speech to Congress in 1962. The Consumer Bill of Rights was a milestone in the history of consumer protection and has served as a foundation for many consumer protection laws in the United States.

Question 11

____ is all activities undertaken to protect the rights of consumers.

Accepted Answer

Consumerism refers to all activities aimed at protecting the rights of consumers. It involves efforts to ensure fair and safe products, truthful advertising, and the right to be heard and redress in case of harm or dissatisfaction. Consumerism seeks to balance the power between producers and consumers to prevent exploitation and promote a fair marketplace.

Question 12

The socioeconomic model of social responsibility

Accepted Answer

The socioeconomic model of social responsibility emphasizes profits as well as the effect of business decisions on society. It holds that businesses have a responsibility to consider the impact of their actions on society and the environment, while still pursuing profits. This model recognizes that the long-term success of a business is intertwined with the well-being of society as a whole.

Question 13

Primary emphasis in the economic model of social responsibility is on

Accepted Answer

The answer of Primary emphasis in the economic model of...

Question 14

Which of the following is an argument for increased social responsibilities?

Accepted Answer

The argument for increased social responsibilities is that business cannot ignore social issues because it is a part of society. This means that businesses have a responsibility to contribute to the betterment of society through their actions and decisions.

Question 15

Joe, a restaurant supplies and equipment business manager, believes in the economic model of social responsibility. Which of the following would most likely be a quote from Joe in relation to social responsibility?

Accepted Answer

The answer of Joe, a restaurant supplies and equipment business...

Question 16

The manager of a successful local restaurant believes his responsibilities are to provide delicious meals and excellent service, provide jobs, comply with laws and the IRS, and earn a respectable profit on the restaurant. These are the manager's only concerns. What concept does this indicate?

Accepted Answer

The manager's focus on providing delicious meals, excellent service, creating jobs, complying with laws and the IRS, and earning a profit aligns with the economic model of social responsibility. This model emphasizes the traditional business goals of profit-making within the bounds of the law, without explicitly addressing broader social responsibilities.

Question 17

By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth maximization. The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments?

Accepted Answer

The fact that McDonald's is actively involved in improving societal conditions through the establishment of Ronald McDonald Houses suggests that the corporation is responsive to the argument that social responsibility promotes environmental stability and long-run profitability. This implies that businesses can derive benefits from engaging in socially responsible actions, and that these actions are not necessarily at odds with shareholder wealth maximization.

Question 18

Karen is the assistant manager of a midsized logistics firm. She believes her manager, Michael, has become carried away with supporting nonprofit organizations and encouraging employees to do community service. What argument would Karen most likely use to turn Michael to her point of view?

Accepted Answer

Karen's argument is focused on the bottom line of the company, stating that the company's priorities should be on maximizing the owner's wealth rather than solving society's problems. This argument is aimed at Michael's possible neglect of the company's financial obligations by focusing too much on nonprofit organizations and community service.

Question 19

Roger, a bank manager, holds the economic model of social responsibility view. What is he most likely to say about the connection between taxes and social responsibility?

Accepted Answer

The economic model of social responsibility suggests that a business fulfills its social responsibility by making a profit and paying taxes, which in turn support societal needs. This model emphasizes the role of business in contributing to society primarily through economic means. Roger, holding this view, would believe that by his bank making a profit and paying taxes, it has met its social responsibilities.

Question 20

"We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. This manager's comments reveal what concept?

Accepted Answer

The vice president's comments reflect the economic model of social responsibility, which suggests that a company's primary responsibility is to generate profits for its shareholders, and that providing social services is not the company's concern.

Quiz 2: A: Being Ethical and Socially Responsible