QUESTION 1
A decision by Best Merchandise Company to market a product in a certain way is being challenged in court. Best Merchandise has a better chance of defending its action if it can show that its action was
A. In good faith
B. In its own best interest
C. Socially responsible
D. Very profitable for the company.
QUESTION 2
Which statement is correct regarding the application of the term "social responsibility" to business?
A. 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.
B. Most state legislatures in the U.S. have now compelled corporations to adopt detailed social responsibility codes.
C. Social responsibility is equivalent to Kant's Categorical Imperative ethical principle.
D. Under social responsibility analysis, the shareholder stakeholder group is paramount and absolute and the sole focus of any value analysis.
QUESTION 3
The giant multi-national pharmaceutical companies could be held accountable on what grounds if they do not give AIDS drugs or sell them at cost to very poor African countries:
A. Legal pursuant to the principle of Nonfeasance
B. Moral pursuant to the Principle of Last Resort
C. Social Responsibility based on current notions of CSR
D. B and C.
QUESTION 4
A few years ago, a large clothing manufacturer decided that it had to close its last operating manufacturing facilities in the United States and locate the production to plants located in countries with low labor costs. The manufacturer provided the workers who lost their jobs with a much larger severance package than was required by their employment contracts and by statute. This caused considerable expense to the company. In making this decision, which of the following is true about how the company must have viewed the relative importance of the theories of business values discussed in the text?
A. Profit maximization was equal in importance to corporate social responsibility.
B. Corporate social responsibility was more important than profit maximization.
C. Profit maximization was more important than Utilitarian ethics.
D. The company did not believe in the value of legality.