MKT 375 Exam #2 Ch 5
Matthew manages the sales team at an information technology (IT) firm. His focus is to conduct business in accordance with his firm's mission and vision, while making as much money as possible for the firm and conforming to the basic rules of the society. He ensures that his actions embody ethical custom. In this scenario, Matthew's view of corporate social responsibility is most likely rooted in the _____ tradition. Keynesian utilitarian consequential virtue
utilitarian
Which of the following is an example of a firm that is failing its fundamental social responsibility? A. A firm that is financially unstable B. A firm that prioritizes environmental sustainability C. A firm that uses resources at unsustainable rates D. A firm that has its loss margins exceeding its profit margins
A firm that uses resources at unsustainable rates
Which of the following is a similarity between utilitarianism and stakeholder theory? A. Both consider the consequences of management decisions for the well-being of all affected groups. B. Both place organizational benefits above other considerations. C. Both strive to focus only on consumers. D. Both contribute to society in ways that go beyond the narrow obligations of law and economics.
A. 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? A. Investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment. B. Employees may become over-indulgent in activities related to social causes. C. The easily measurable ethical payoff can turn out to be lower than the anticipated levels. D. Attrition levels may rise because of indifference among employees engaging in activities related to social responsibility.
A. Investing in corporate social responsibility (CSR) when consumers are not willing to pay higher prices to support that investment.
Which of the following statements is true about the economic model of corporate social responsibility (CSR)? A. It places shareholders at the center of the corporation and suggests that the ethical responsibility of management is to serve those shareholders. B. It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged. C. It holds that businesses have social responsibilities beyond the economic and legal ends for which they were created. D. It holds that businesses should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.
A. It places shareholders at the center of the corporation and suggests that the ethical responsibility of management is to serve those shareholders.
Which of the following ethical requirements is the type of responsibility established by the precedents of tort law? A. Duty to engage in charitable work B. Duty to not cause avoidable harm to the society C. Duty to volunteer for causes related to the environment D. Duty to find employment for employees injured at work
B. Duty to not cause avoidable harm to the society
According to the economic model of corporate social responsibility (CSR), the sole social responsibility of a business is to: A. think beyond economic ends that have to be met to help society. B. fulfill the economic functions that it was designed to serve. C. analyze the defects in society and design products to overcome these defects. D. go beyond legal responsibilities to cater to the needs of the society.
B. fulfill the economic functions that it was designed to serve.
Enlightened self-interest, an important justification offered for corporate social responsibility (CSR), presumes that: A. measurement of bottom-line impact of ethical decision making is unimportant. B. good ethics can also be good business. C. bottom-line impact of ethical decision making can be measured and compared. D. profits are independent of ethics.
B. good ethics can also be good business.
A feature of the economic model of corporate social responsibility (CSR) is that it: A. states that profit is independent of optimal allocation of resources. B. holds pursuit of profit as the sole duty of business. C. prevents shareholders from being at the center of a corporation. D. expects business to have a strict obligation to contribute to social causes.
B. holds pursuit of profit as the sole duty of business.
According to the philosopher Norman Bowie, the contractual duty that managers have to stockholder-owners: A. leads them to take environment-conscious managerial decisions. B. overrides their responsibility to prevent harm or to do good. C. makes them feel obliged to perform social good and prevent harm to the society. D. makes them focus on philanthropy.
B. overrides their responsibility to prevent harm or to do good.
According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they: A. adhere to rules and regulations. B. respect human rights and cause no harm. C. are confident and do charitable work. D. contribute to charitable organizations.
B. respect human rights and cause no harm.
When a firm engages in socially responsible activities with a prime focus on reputation: A. it always loses employee loyalty. B. social responsibility tends to become a form of social marketing. C. profits have to be sacrificed for social causes. D. the measure of positive reputation gained is impossible to calculate.
B. social responsibility tends to become a form of social marketing.
Identify a true statement about the stakeholder theory. A. It suggests that firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model. B. It 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. C. It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. D. It holds that a firm's financial goals must be balanced against, and perhaps even overridden by, environmental considerations.
C. 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). A. It has its roots in the Kantian tradition of ethics. B. It shifts focus from pursuit of profit to environment sustainability. C. It has direct implications for the proper role of business management. D. It holds that social goals should be at the heart of a firm's mission.
C. It has direct implications for the proper role of business management.
Which of the following is a challenge associated with ethical pay offs? A. It can easily be duplicated by competitors. B. It is very small in comparison to profits. C. It is very difficult to measure ethical pay offs. D. It ruins the reputation that triggered it.
C. It is very difficult to measure ethical pay offs.
T/F 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
T/F 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
T/F Stakeholder theory states that a firm should be managed for the sole benefit of stockholders.
False
T/F The economic model of corporate social responsibility (CSR) holds that businesses should integrate social goals and economic goals.
False
T/F Volunteering and charitable work are examples of the most demanding social responsibilities of a business.
False
T/F Within the philanthropic perspective of the economic model, socially responsible activities are never done for building the reputation of a firm.
False
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.
False
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. ethical model integrative model philanthropic model legal model
philanthropic model
The practice of attending to the "image" of a firm is sometimes referred to as: branding. reputation management. gentrification. crisis management.
reputation management.
The _____ holds that just as charity is a good thing and something that should be encourage, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics. Identify the model of corporate social responsibility (CSR) that reflects this line of thought. Legal model Integrative model Stakeholder theory Philanthropic model
Philanthropic model
Which of the following models of corporate social responsibility (CSR) considers business as a citizen of the society that it operates in? Philanthropic model Stakeholder model Altruistic model Economic model Explanation
Stakeholder model
T/F A firm that is environmentally unsustainable is also a firm that is, in the long-term, financially unsustainable.
True
T/F Corporate social responsibility (CSR)-related activities can improve profitability by enhancing a company's standing among its stakeholders, including consumers and employees.
True
T/F Legislators created a form of business called corporations to encourage people to engage in business activities.
True
T/F Philosopher Norman Bowie identifies his approach as a "Kantian" theory of business ethics.
True
T/F Reputation management refers to the practice of caring for the "image" of a firm.
True
T/F Stakeholder theory recognizes the fact that every business decision affects a wide variety of people, benefiting some and imposing costs on others.
True
T/F The philanthropic perspective of the economic model holds that business has no strict obligation to contribute to social causes.
True
T/F 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
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: A. firms had the obligation to justify bad decisions. B. there was transparency among all stakeholders. C. multiple owners were involved in the strategic decision-making process of the firm. D. investors were protected from undue personal risks.
D. investors were protected from undue personal risks.
