QUESTION 1
When Ruby, the president of Interrelated Systems Corporation, is deciding what business action to take, an initial question is, like it is for most major companies today, whether the action
A. Ethical
B. Legal
C. Socially responsible
D. Likely to result in executive bonuses.
QUESTION 2
What is a FALSE statement regarding corporate social responsibility?
A. It may be in the long-term self-interest of a company to be known as a "socially responsible" one?It may be in the long-term self-interest of a company to be known as a "socially responsible" one?
B. Companies acting in a prudent socially responsible manner should produce "sustainability" for the companies and society as a whole.
C. Most state corporation statutes forbid companies from being socially responsible since any corporate profits must go to the owners of the corporation, the shareholders, and not the community or charities.
D. A company is well-advised to strategically align its social responsible activated with its mission, image, and long-term objectives.
QUESTION 3
Commercial Products Company (CPC) markets its products nationwide. When making a decision, CPC should, in order to be a socially responsible firm, take into account the needs of
A. Consumers and employees
B. Owners and shareholders
C. Society and community
D. All of the above
QUESTION 4
Today, critics of the corporation argue for various corporate governance reform proposals to improve the legal, moral, and socially responsible behavior of the corporation. Which of the following is the most convincing argument AGAINST these proposals?
A. These proposals are inadvisable because corporate managers should never have any duty other than to maximize profits for the shareholders
B. These proposals are unnecessary because market forces invariably operate to deter any corporate misbehavior
C. These proposals are unnecessary because existing law already establishes clear standards for what is and is not moral corporate behavior globally
D. These proposals are inadvisable because they will reduce corporate ability to respond quickly to changing business conditions and therefore will make aa allocational inefficiency. inefficiency.
QUESTION 5
Which of the following is a correct statement regarding the definition of corporate "social responsibility"?
A. In the interests of preserving personal freedom, the law in the United States codifies in detail social responsibility rules.
B. For a social responsibility analysis the acceptable standard for moral behavior is compliance with the legal law.
C. As a general rule there is no legal requirement for a company to be a socially responsible one.
D. Typically, a business can be sued by community action groups if it is not socially responsible since it is thereby acting immorally in the community.
QUESTION 6
Which of the following is a correct statement regarding the definition of the term "social responsibility" in a business context?
A. A socially responsible business person believes that the formal legal law is inferior to universal moral and ethical principles that can be determined by intuition.
B. Social responsibility is the branch of philosophy that focuses on morally right and wrong behavior.
C. Social responsibility is based on current societal views as to how and the extent a business should contribute to charities and civic organizations and be involved in helping the community.
D. A business cannot adhere to social responsibility principles and the doctrine of ethical egoism since both are always mutually exclusive.