Question 1

When corporate boards of directors are weak or unethical, the government sometimes steps in to try to correct things for the future.

Accepted Answer

This statement is true. In situations where corporate boards of directors are deemed as weak or unethical, government intervention through legal frameworks, regulations and policies may be introduced to try to prevent similar issues from arising in future.

Question 2

The three P's of organizational performance are patience, politeness, and planning.

Accepted Answer

The three P's of organizational performance are actually purpose, people, and process.

Question 3

From the perspective of a stakeholder model, any organization has a social responsibility to serve the interests of its many stakeholders.

Accepted Answer

According to the stakeholder model, organizations have a responsibility to serve the interests of all their stakeholders, not just shareholders or owners. This includes employees, customers, suppliers, shareholders, the community, and the environment.

Question 4

The obstructionist strategy involves a corporate social responsibility commitment that reflects mainly economic concerns and meets the organization's economic responsibility.

Accepted Answer

The obstructionist strategy is a CSR strategy that focuses on meeting the economic responsibilities of the organization.

Question 5

According to the classical view of CSR, the principal obligation of management should be to owners and shareholders.

Accepted Answer

The classical view of CSR suggests that the primary responsibility of management is to maximize shareholder value and profits, and therefore the principal obligation of management should be to owners and shareholders.

Question 6

Corporate governance typically involves hiring, firing, and compensating the chief executive officer (CEO); assessing strategy; and verifying financial records.

Accepted Answer

This statement correctly describes some of the key areas and activities involved in corporate governance.

Question 7

Competitors, labour unions, public-interest groups, and legal institutions are all shareholders of an organization.

Accepted Answer

Competitors, labour unions, public-interest groups, and legal institutions are not shareholders of an organization. Shareholders are individuals or entities that own shares or equity in the organization.

Question 8

The defensive strategy involves a corporate social responsibility commitment that meets economic and legal responsibilities, and seeks to protect the organization by doing the minimum legally required to satisfy expectations.

Accepted Answer

The defensive strategy aims to protect the organization by fulfilling minimum legal and economic obligations while meeting societal expectations through corporate social responsibility commitments.

Question 9

Corporate governance involves making sure day-to-day performance is achieved ethically and in socially responsible ways.

Accepted Answer

The answer of Corporate governance involves making sure day-to-day performance...

Question 10

An organization is meeting its ethical responsibility when it is in compliance with the law and requirements of various external regulations.

Accepted Answer

Meeting legal and regulatory requirements is a part of an organization's ethical responsibility, but ethics go beyond compliance to include moral obligations such as fairness, transparency, and social responsibility, which are not always covered by law or external regulations.

Question 11

A firm is meeting its legal responsibility when it voluntarily conforms to legal as well as broader values and moral expectations of society.

Accepted Answer

Meeting legal responsibility specifically refers to adhering to laws and regulations. Voluntarily conforming to broader values and moral expectations of society goes beyond legal responsibility and enters the realm of ethical responsibility.

Question 12

When corporate social performance focuses on acting to create positive impact, the company's actions are driven by compliance.

Accepted Answer

When corporate social performance focuses on acting to create positive impact, the company's actions are driven by a desire to go beyond compliance and become more socially responsible. Compliance is only a minimum standard that companies should meet to avoid legal issues, while creating positive impact involves taking proactive measures to address social or environmental issues.

Question 13

An organization that is following a proactive social responsibility strategy would take both preventive action to avoid adverse social impacts from company activities and a leadership role in identifying and responding to emerging social issues, thereby satisfying economic, legal, ethical, and discretionary responsibilities.

Accepted Answer

A proactive social responsibility strategy involves taking preventive action to avoid negative social impacts and being a leader in addressing emerging social issues. This approach goes beyond just meeting basic legal and ethical obligations and includes discretionary responsibilities to contribute to communities and society as a whole.

Question 14

Demand legitimacy indicates the extent to which a stakeholder's concerns need immediate attention.

Accepted Answer

The answer of Demand legitimacy indicates the extent to which...

Question 15

Corporate governance is defined as the way that governments regulate corporations.

Accepted Answer

Corporate governance is not controlled by governments, but rather is the system of rules and practices that guide how a company is directed and controlled. It involves balancing the interests of a company's stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community.

Question 16

Organizational stakeholders are the persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance.

Accepted Answer

Organizational stakeholders are individuals, groups, or organizations that have a vested interest in the behavior and performance of an organization. Their interests may include financial, social, or ethical concerns. Examples of stakeholders include shareholders, customers, employees, suppliers, government regulators, and community groups.

Question 17

A social responsibility audit is a systematic assessment and reporting of an organization's accomplishments in various areas of corporate social responsibility.

Accepted Answer

A social responsibility audit is indeed a systematic assessment and reporting of an organization's accomplishments in various areas of corporate social responsibility.

Question 18

The effectiveness of corporate governance has been criticized because ethical failures and scandals have raised concerns about executives' commitment to corporate social responsibility.

Accepted Answer

The statement accurately reflects a common criticism of corporate governance.

Question 19

Discretionary responsibility occurs when an organization voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole.

Accepted Answer

Discretionary responsibility is the fourth and highest level of corporate social responsibility, which involves the organization voluntarily taking actions to improve social and environmental conditions beyond what is required by law or ethical standards.

Question 20

Corporate governance is defined as the oversight of the actions and decisions of top management of an organization by the board of directors.

Accepted Answer

Corporate governance is indeed defined as the oversight of the actions and decisions of top management by the board of directors.

Quiz 3: Ethics and Social Responsibility