ch 5 MKT 375 Exam 2

When a firm engages in socially responsible activities with a prime focus on reputation:

social responsibility tends to become a form of social marketing.

The _____ asserts that neither a business nor the individuals who work for it are exempt from the ordinary ethical responsibilities that everyone has to cause no harm, to prevent harm, and to sometimes do good.

stakeholder model of corporate social responsibility (CSR)

A firm that is environmentally unsustainable is also a firm that is, in the long-term, financially unsustainable.

true

Corporate social responsibility (CSR)-related activities can improve profitability by enhancing a company's standing among its stakeholders, including consumers and employees.

true

In the philanthropic perspective of the economic model, there are occasions in which charity work is done because it brings the firm good public relations, provides a helpful tax deduction, builds goodwill and/or a good reputation within the community.

true

Legislators created a form of business called corporations to encourage people to engage in business activities.

true

Philosopher Norman Bowie identifies his approach as a "Kantian" theory of business ethics.

true

Reputation management refers to the practice of caring for the "image" of a firm.

true

Stakeholder theory recognizes the fact that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

true

The philanthropic perspective of the economic model holds that business has no strict obligation to contribute to social causes.

true

The stakeholder model of corporate social responsibility (CSR) views business as a citizen of the society in which it operates and, like all members of a society, business must conform to the normal range of ethical duties and obligations that all citizens face.

true

The sustainability version of corporate social responsibility (CSR) suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

true

Which of the following is the most demanding social responsibility?

A business should not sell a product that causes harm to consumers.

Which of the following is a similarity between utilitarianism and stakeholder theory?

Both consider the consequences of management decisions for the well-being of all affected groups.

According to David Vogel, which of the following should a firm be most cautious about when engaging in corporate social responsibility (CSR) activities?

Investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment.

Identify a true statement about the stakeholder theory.

It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management.

Identify a true statement about the economic model of corporate social responsibility (CSR).

It has direct implications for the proper role of business management.

Which of the following statements is true of the common view of corporate social responsibility (CSR)?

It holds that the primary responsibility of managers is to serve shareholders.

Sustainability holds that:

a firm's financial goals must be balanced against environmental considerations.

The defenders of the sustainability approach toward corporate social responsibility (CSR) point out that _____.

all economic activity exists within a biosphere that supports all life

According to the philosopher Norman Bowie, the contractual duty that managers have to stockholder-owners:

overrides their responsibility to prevent harm or to do good.

The _____ of corporate social responsibility (CSR) holds that just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no strict ethical responsibility to serve wider social goods.

philanthropic model

The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by:

pursuing social ends as the very core of an organization's mission.

The practice of attending to the "image" of a firm is sometimes referred to as:

reputation management

Identify a true statement about the integrative model of corporate social responsibility (CSR).

It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model.

Which of the following models of corporate social responsibility (CSR) considers business as a citizen of the society that it operates in?

Stakeholder model

The _____ directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of profit.

economic model of corporate social responsibility (CSR)

According to David Vogel, investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment improves the profit levels of the firm.

false: David Vogel, a political science professor at Berkeley, cautions against investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment.

Philosopher Norman Bowie rejected the economic view that managers are the agents of stockholder-owners and thus they also have a duty to further the interests of stockholders.

false:Norman Bowie accepts the economic view that managers are the agents of stockholder-owners and thus they also have a duty (derived from the contract between them) to further the interests of stockholders. Bowie would argue that business has a social responsibility to respect the rights of its employees, even when not specified or required by law.

Stakeholder theory states that a firm should be managed for the sole benefit of stockholders.

false:The economic model argues that a firm should be managed for the sole benefit of stockholders. The stakeholder theory argues, on factual, legal, economic, and ethical grounds, that this is an inadequate understanding of business.

The economic model of corporate social responsibility (CSR) holds that businesses should integrate social goals and economic goals.

false:The economic model of corporate social responsibility (CSR) holds that businesses' sole duty is to fulfill the economic functions businesses were designed to serve. On this narrow view, the social responsibility of business managers is simply to pursue profit within the law.

Volunteering and charitable work are examples of the most demanding social responsibilities of a business.

false:Volunteering and charitable work are typical examples of responsibilities to do good.

According to the economic model of corporate social responsibility (CSR), the sole social responsibility of a business is to:

fulfill the economic functions that it was designed to server

Enlightened self-interest, an important justification offered for corporate social responsibility (CSR), presumes that:

good ethics can also be good business.

Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if:

investors were protected from undue personal risks.