1. Which statement is correct regarding the application of the term "social responsibility" to business?
One social responsibility dilemma faced by corporate management at times is the proper nature and extent of a company's social responsibility activities in the community.
Most state legislatures in the U.S. have now compelled corporations to adopt detailed social responsibility codes.
Social responsibility is equivalent to Kant's Categorical Imperative ethical principle.
Under social responsibility analysis, the shareholder stakeholder group is paramount and absolute and the sole focus of any value analysis.
2. Which of the following is the most accurate statement regarding the merger of two big tobacco companies in the United States.
A. Evidence of social responsibility anti-smoking efforts is a requirement for the government to approve tobacco mergers pursuant to the Clayton Ac.
B. It may be in the long-term self-interest of the merged company to promote its new brand of e-cigarettes (electronic cigarettes) as a socially responsible "wellness" alternative to traditional tobacco products.
C. The merged company should avoid all socially responsible activities since they can be costly, and mergers are very expensive due to all the professional legal, accounting, and financial fees involved.
D. If the merged company is regarded as a "dominant" one in the market, the head of the Department of Health and Human Services cabinet department can require that the merged company engage in a lot of social responsibility activities.