Question 1

The Honest Leadership and Open Government Act of 2007 was part of the most comprehensive lobbying and ethics reform effort in the federal government in many years.

Accepted Answer

The Honest Leadership and Open Government Act of 2007 was part of the most comprehensive lobbying and ethics reform effort in the federal government in many years.Studies and expert opinion,however,indicate that some of those who influence government are able to avoid registering as lobbyists by turning from direct legislative contact to new influence-peddling tactics such as social media campaigns.

Question 2

Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty.

Accepted Answer

Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty.Now in the 21st century,expectations for business in society have been radically altered.

Question 3

Business has enjoyed a central and favored role in American life,and as such,it must assume a measure of the burden for the welfare of the total society.

Accepted Answer

Business has enjoyed a central and favored role in American life.As such,it must assume a measure of the burden for the welfare of the total society.Indeed,businesspeople themselves now generally endorse businesses' responsibility to help solve society's problems.

Question 4

Triple bottom-line advocates call for managerial practices that respect and measure a firm's social and environmental performance just as the firm's financial performance is respected and measured.

Accepted Answer

Triple bottom-line advocates specifically call for managerial and accounting practices that respect and measure a firm's social and environmental performance just as the firm's financial performance is respected and measured.The goal is to ensure the long-term viability,or sustainability,of the organization and the total society.

Question 5

Labor unions can lawfully establish political action committees to solicit and disburse voluntary campaign contributions.

Accepted Answer

Corporations,labor unions,special interest groups,and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions.That is,corporations can solicit contributions from employees,shareholders,and others.

Question 6

Which of the following is likely to be a result if the corporate community takes an increasingly direct role in the political process?

Accepted Answer

In recent decades,the corporate community has taken an increasingly direct role in the political process.As a result,corporate critics have been concerned that the financial weight of big business will undermine the pluralist,democratic approach to governance.

Question 7

According to stakeholder advocates,simply maximizing the interests of the primary stakeholders of a corporation,would satisfy a corporation's social duties.

Accepted Answer

Corporations are increasingly considering what scholars have labeled the stakeholder model of social responsibility.To stakeholder advocates,simply maximizing the interests of the primary stakeholders,that is,the shareholders,would not satisfy the corporation's social duties.

Question 8

The perception of business misdeeds or indifference,in conjunction with the growing influence of business values throughout American life,has led in recent decades to the development of the doctrine of corporate social responsibility.

Accepted Answer

The business community is intensely criticized.That broadly shared perception of business misdeeds or indifference,in conjunction with the growing influence of business values throughout American life,has led in recent decades to the development of the doctrine of corporate social responsibility (CSR-sometimes also referred to as corporate citizenship).

Question 9

Pushing managers to adopt a bigger and broader conception of social responsibility will reduce the chances of establishing a sustainable,enduring global community where resources are not dangerously depleted or damaged.

Accepted Answer

Managers are being pushed to adopt a bigger,broader conception of social responsibility,an approach that will produce a sustainable,enduring global community where the resources are not dangerously depleted or damaged.The triple bottom-line/sustainability approach employs free-market principles and recognizes the necessity for financial success but also argues that social and environmental responsibilities are of equal importance.

Question 10

Lobbying is not confined to the business community.

Accepted Answer

Lobbying is not confined to the business community.Lobbying also often serves the very useful role of efficiently educating busy politicians about the vast array of issues they must address but cannot possibly master without assistance.

Question 11

The primary goal of the triple bottom-line approach is to ensure the maximum short-term viability of an organization.

Accepted Answer

The goal of the triple bottom-line approach is to ensure the long-term viability,or sustainability,of an organization and the total society.Triple bottom-line advocates specifically call for managerial and accounting practices that respect and measure a firm's social and environmental performance just as the firm's financial performance is respected and measured.

Question 12

Corporations can solicit campaign contributions from employees,shareholders,and others.

Accepted Answer

Corporations can solicit contributions from employees,shareholders,and others.That money is then put in a fund,carefully segregated from general corporate accounts,and disbursed by the political action committees in support of a political agenda preferred by officers,managers,or shareholders.

Question 13

Social enterprise is a movement in which people launch for profits programs,addressing social problems.

Accepted Answer

Social enterprise or social entrepreneurship is a movement in which people launch nonprofits and businesses or take jobs using entrepreneurial and managerial skills for the purpose,in part,of addressing social problems.The ascendance of the social responsibility doctrine represents a striking ideological shift.

Question 14

The outsourcing of good,high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in the country.

Accepted Answer

The outsourcing of good,high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in this country.In general,it can be seen that concerns about corporate domination of American life are now being applied to the entire globe.

Question 15

According to Milton Friedman,the firm that maximizes its profits is not necessarily maximizing its contribution to the society.

Accepted Answer

Milton Friedman,employing free-market reasoning,believed a firm that maximizes its profits is necessarily maximizing its contribution to society.Furthermore,he argued that any dilution of the profit-maximizing mode-such as charitable contributions-is a misuse of the stockholders' resources.

Question 16

Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standards in the area of child labor.

Accepted Answer

Social Accountability Accreditation Services in New York City accredits companies that meet the SA8000 standards in the areas of child labor,forced labor,health and safety,freedom of association,discrimination,disciplinary practices,working hours,collective bargaining wages,and management systems.As of 2012,nearly 3,200 facilities employing nearly two million employees in 66 countries had been certified.

Question 17

Corporate funds can lawfully be given directly to candidates for federal office.

Accepted Answer

Corporate funds cannot lawfully be given directly to candidates for federal office.
However,corporations,labor unions,special interest groups,and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions.

Question 18

Churches are strictly against employing standard business practices such as advertising,promotional giveaways,and marketing campaigns.

Accepted Answer

Churches now routinely employ standard business practices such as advertising,promotional giveaways,and marketing campaigns.Religion,in some sense,has become a product.

Question 19

The business community in America cannot influence the electoral and law-making processes.

Accepted Answer

Critics argue that big money enables the business community to disproportionately influence the electoral and law-making processes.In recent decades,the corporate community has taken an increasingly direct role in the political process.

Question 20

An alternative and arguably more "progressive" approach to stakeholders involves a collaborative strategy in which stakeholder relationships are regarded as being mutually defined,cooperative,and reciprocal.

Accepted Answer

An alternative and arguably more "progressive" approach to stakeholders involves a collaborative strategy in which stakeholder relationships are regarded as being mutually defined,cooperative,and reciprocal.The firm endeavors to understand and balance the interests and needs of all stakeholders with the view that this collaborative effort results in enhanced firm performance over the long term while building a healthier society.
Multiple Choice Questions

Quiz 3: The Corporation and Public Policy: Expanding Responsibilities