Question 1

Which of the following is NOT generally an action for a company to consider in crafting a strategy of social responsibility?

Accepted Answer

Providing suppliers, distributors, and other value chain partners with "handsome profit margins" is not a typical action for a company to consider in crafting a strategy of social responsibility. While it may be important for a company to ensure fair compensation and treatment of value chain partners, the focus of social responsibility is generally on broader issues such as ethical business practices, charitable contributions, workforce diversity, and environmental protection.

Question 2

Internal administrative costs which are incurred by companies for ethical wrongdoing include all of the following EXCEPT

Accepted Answer

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Question 3

Which of the following is NOT something a company should usually consider in crafting a strategy of social responsibility?

Accepted Answer

While actions to benefit shareholders are important, they are not typically considered a key part of a company's strategy of social responsibility. Social responsibility tends to focus more on actions that benefit stakeholders beyond just shareholders, such as the community, the environment, and the workforce.

Question 4

Which one of the following is NOT a part of the business case for why companies should act in a socially responsible manner?

Accepted Answer

Pursuing market share, revenues, and profits is not considered a direct part of the business case for why companies should act in a socially responsible manner. While being socially responsible can indirectly lead to increased profits and market share, it is not the primary focus of why companies should act in a socially responsible manner.

Question 5

The essence of socially responsible business behavior is

Accepted Answer

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Question 6

Cultural demands to employ unethical means if circumstances become challenging can prompt

Accepted Answer

Cultural demands that push for unethical means in challenging circumstances can lead individuals or organizations to find innovative or "clever" ways to circumvent established policies, often with the goal of increasing profits or gaining some other advantage, rather than adhering to ethical standards.

Question 7

The strength of the beliefs underlying the moral case for an ethical strategy relates to all EXCEPT which of the following?

Accepted Answer

The strength of the beliefs underlying the moral case for an ethical strategy is more about the character and ethical principles of the managers rather than focusing on risks and reputation loss.

Question 8

Striving to be socially responsible entails touching such bases as

Accepted Answer

Striving to be socially responsible involves considering actions that protect or enhance the environment beyond legal requirements, reflecting a commitment to broader societal and environmental concerns.

Question 9

How does a company's unethical behaviors risk doing direct damage to a company's creditors?

Accepted Answer

If a company engages in unethical behaviors, it can result in negative consequences such as decreased revenue, legal fees, and poor public image. These outcomes can ultimately lead to the company's inability to pay off their loans, putting their creditors at risk.

Question 10

Notions of right and wrong, fair and unfair, moral and immoral, ethical and unethical

Accepted Answer

Notions of right and wrong, fair and unfair, moral and immoral, ethical and unethical are inherent in human nature and are present in all societies, organizations, and individuals. While they may be influenced by cultural, religious, and societal norms, they are not solely governed by them. Different societies and individuals may have varying beliefs and values, but the basic concepts of right and wrong exist universally.

Question 11

The notion of social responsibility as it applies to businesses is concerned with

Accepted Answer

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Question 12

A company's social responsibility strategy typically comprises all of the following EXCEPT

Accepted Answer

The statement "actions to keep the company's profits at a reasonable and acceptable level to ensure the company's products/pricing will not be viewed by the general public as obscenely high or exorbitant" does not fit within the typical components of a company's social responsibility strategy. Instead, social responsibility strategies typically focus on actions related to enhancing workforce diversity, contributing to community service, protecting/enhancing the environment, and ensuring ethical behavior beyond legal requirements.

Question 13

Which of the following is NOT a particularly sound or valid reason why a company's strategy should be ethical?

Accepted Answer

Fear of public embarrassment is not a strong enough reason to justify ethical behavior. While it may be a motivating factor for some executives, it doesn't reflect a genuine concern for ethical values and principles. A company's strategy should be ethical because it is the morally right thing to do, it is in the best interest of shareholders in terms of protecting reputation and avoiding costly penalties, and because it fosters a positive work environment and relationship with customers.

Question 14

When high ethical principles are deeply ingrained in the corporate culture of a company, culture can function as a powerful mechanism for all of the following EXCEPT

Accepted Answer

A strong ethical culture within a company is likely to discourage short-termism and encourage a long-term perspective. Therefore, it cannot boost short-termism.

Question 15

Visible costs that are incurred by companies and imposed for ethical wrongdoing include all of the following EXCEPT

Accepted Answer

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Question 16

Which of the following is NOT true regarding the effect of ethical standards on a company's strategy?

Accepted Answer

An ethical strategy is typically associated with higher employee engagement and job satisfaction, which leads to lower turnover rates. Therefore, the statement "An ethical strategy results in higher employee turnover" is not true.

Question 17

The theory of corporate social responsibility concerns

Accepted Answer

The theory of corporate social responsibility emphasizes the responsibility of the company to balance between strategic actions to benefit shareholders and the duty to be a good corporate citizen. This means that while the company has a responsibility to maximize shareholder value, it should also consider the impact of its actions on society at large and act in an ethical and responsible manner. Option A is not inclusive of shareholder interest, option B stresses only on shareholder interest, option C is limited to blending interest of shareholders and employees, and option E is not inclusive of shareholder interest.

Question 18

How do good corporate citizens function?

Accepted Answer

Good corporate citizens are those who engage in discretionary activities that improve the welfare of society. These activities may involve supporting social causes, reducing environmental impacts, improving working conditions, or engaging in philanthropic activities. Good corporate citizens recognize that they have a role to play in creating a better world and they act on this responsibility by taking actions that go above and beyond what is legally required of them.

Question 19

A company's strategy needs to be ethical because

Accepted Answer

A company's strategy needs to be ethical because it is in the best interest of shareholders and good business. Adopting unethical practices can negatively affect a company's reputation and eventually lead to financial losses. Furthermore, unethical behavior can attract legal and regulatory scrutiny, resulting in penalties and fines. Companies that prioritize ethical behavior are more likely to attract and retain customers, employees, and investors who share similar values, leading to long-term success.

Question 20

Good corporate citizens

Accepted Answer

Option B clearly defines the characteristics of a good corporate citizen by emphasizing the importance of not just meeting ethical standards, but also fostering social benefit and balancing the interests of all stakeholders. Option A and E are not applicable to all companies and may not necessarily contribute to being a good corporate citizen. Option C only addresses one aspect of employee well-being but does not necessarily reflect a company's broader social responsibility. Option D is too narrow in its definition of corporate responsibility, as it only considers environmental impact.

Quiz 9: Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY