Chapter 5

What is the most demanding social responsibility?

A business should not sell a product that cause harm to consumers

What is true of the common view of CSR?

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

What is true about the economic model of CSR?

It places shareholders at the center of the corporation and suggests that the ethical responsibility of management is to serve those shareholders.

Identify a true statement about the integrative model of CSR?

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

The _____ holds that just as charity is a good thing and something that should be encouraged, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics. What model of CSR reflects this line of thought?

Philanthropic model

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

Reputation management

According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they:

Respect human rights and cause no harm

_____ recognizes that every business decision imposes cost on someone and mandates that those costs be acknowledged.

Stakeholder theory

Sustainability holds that:

firms financial goals must be balanced against environmental considerations.

The _____ of 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

Corporate social responsibility refers to:

Ethical expectation that society has for business

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

Fulfill the economic functions that it was designed to serve.

According to David Vogel, which of the following should a firm be most cautious about when engaging in CSR activites?

Investing in CSR when consumers are not willing to pay higher prices to support that investment.

The defenders of the sustainability approach toward CSR point out that _____.

All economic activity exists within a biosphere that supports all life.