Business Ethics Ch.3

Reason(s) for adopting an enlightened self-interest approach is (are):

- Reasonable short-run costs are incurred, but socially responsible activities are promoted. - The public's attitude toward the company is positive in the long run. - The stockholders' pressures for short-run profits are satisfied.

Scholars have found:

A positive association between social and financial performance.

A social enterprise:

Adopts social benefit as its core mission.

Positive reputation can be valued as an intangible corporate:

Asset

The costs of corporate social responsibility may ultimately be passed on to the:

Consumer through high prices.

All of the following are examples of the phases of Corporate Social Responsibility except:

Corporate Charity Principle.

Executive conscience, acts of charity, and philanthropic funding are examples of:

Corporate social stewardship.

A company who complies with the laws and regulations set by the government is:

Meeting the minimum level of social responsibility expected by the public.

An argument against corporate social responsibility is that it imposes unequal costs among competitors.

True

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits.

Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals.

True

Given the immeasurable power in the hands of the leaders of large, global corporations, social responsibility has become a worldwide expectation.

True

Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse.

True

In the United States, the idea of corporate social responsibility appeared around the start of the 20th century.

True

Laws and regulations help create a level playing field for businesses that compete against one another.

True

One of the most appealing arguments in favor of corporate social responsibility for business supporters is that voluntary social acts may head off increased government regulation.

True

The concept of corporate social responsibility is rooted in the meaning "to pledge back," creating a commitment to give back to society and the organization's stakeholders.

True

Which of the following companies is being the most socially responsible?

A company trying its best to operate in a way which will help local students get education and jobs.

Corporate social responsibility (CSR) means that a corporation should:

Be held accountable for any of its actions that affect people, their communities, and their environment.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

Both A & B - Business people do not have the skill-set to solve societal problems. - The private sector is not mandated to solve these issues.

Which of the following statements is true about corporate social responsibility?

Both A & C A) Businesses should monitor and prevent social problems in advance of their becoming major issues. C) Corporations should be accountable for any actions that affect people, their communities, and the environment.

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Corporate/Global Citizenship.

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called the big business principle.

False

Which of the following is an argument in favor of corporate social responsibility?

Discourages government regulation.

Corporations have a role in establishing their community's:

Economic Growth

As a response to the conflict between long- and short-term profit making, an enlightened self-interest point of view would be the least useful and practical approach.

False

Being socially responsible means that a company must abandon its other missions.

False

Corporate power says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it.

False

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate.

False

Reports have shown that 70 percent of consumers said they would buy a product even if they did not like the company's reputation behind the product.

False

The iron law of responsibility says that:

In the long run, those who do not use power responsibly will lose it.

When undertaking social initiatives, a company:

May sacrifice short-term profits.

Grameen Bank in Bangladesh is one of the most recognized:

Microfinance institutions.

This occurs when financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers) who traditionally lacked access to banking or related services.

Microfinancing.

Business leaders, like automaker Henry Ford developed these programs to support the recreational and health needs of their employees

Paternalistic programs.

Philanthropic funding and public relations are two examples of corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase.

Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility?

Religious/ethnic beliefs.

Which of the following is an argument against corporate social responsibility?

Requires skills businesses may lack.

When businesses bring products and services to the many people in the world who have traditionally been beyond the reach of global commerce, they are said to be:

Serving the bottom of the pyramid.

As of 2012, the B Corporation status has been legally recognized in how many states? **look at notes to update

Seven states.

When a person or group of people identify a social need and use their entrepreneurial skills to address this need, this process is called:

Social entrepreneurship.

According to Barlow v. A.P. Smith Manufacturing:

Socially responsible actions are in investment in the future, thus an allowable expense.

Corporate power refers to:

The capability of corporations to influence government, the economy, and society, based on their organizational resources.

Businesses that comply with laws and public policies are meeting a minimum level of social responsibility expected by the public.

True