Business Ethics Responsibility Test Questions & Answers Ch2

Type: multiple choice question

Title: Chapter 02 - Question 01

01) In his influential 1970 article, Milton Friedman protested against the notion of corporate responsibility for corporations. Which of the following is not one of the three main premises of his argument?

a. Social issues and problems are the proper province of the state rather than corporate managers

b. It is managers’ responsibility to act solely in the interests of shareholders.

c. Corporate responsibilities limit a corporation’s freedom to choose how to pursue its main task of increasing profits.

d. Only human beings have a moral responsibility for their actions.

Type: fill-in-blankill in the blank

Title: Chapter 02 - Question 02

02) Crane et al contend that corporations often take on social responsibilities, in order to promote its own self-interests, this is known as ___________.

a. Enlightened self-interest

Page reference: p.48

b. Social licence to operate

Page reference: p.48

c. Social contract theory

Page reference: p.48

d. Ethical duty

Page reference: p.48

Type: multiple response question

Title: Chapter 02 - Question 03

03) It is now generally accepted that business responsibility does extend beyond simply making a profit. Which of the following do Crane et al list as business reasons for CSR? Please select all that apply.

a. Socially responsible companies voluntarily solve the social and environmental problems their activities have caused.

b. Socially responsible firms may find it easier to attract employees, who may be more committed.

c. Corporations seen as responsible may attract more and/or more loyal customers.

d. By engaging in voluntary CSR, corporations may avoid government legislation.

Type: multiple choice question

Title: Chapter 02 - Question 04

04) The notion of _______ contends that products and markets can be reconceived by serving consumers and contributing to the common good. Furthermore, that productivity in the values chain can be refined by enhancing social, environmental and economic capabilities of supply chain members and local cluster development can be enabled so that development goals can be achieved through local collaborations.

a. Shared value creation

b. Sustainability

c. Corporate Governance

d. Corporate responsibility

Type: matching question

Title: Chapter 02 - Question 05

05) Crane et al describe “traditional” and “contemporary” CSR. Match the feature to the appropriate strategy.

Page reference: p.54-55

a. CSR is integral to the business model = Contemporary

b. CSR is primarily reactive. = Traditional

c. CSR is about value creation = Contemporary

d. CSR is Bolted On = Traditional

Type: multiple choice question

Title: Chapter 02 - Question 06

06) Crane et al’s definition of a stakeholder makes it clear that it is impossible to identify a definitive group of relevant stakeholders for any given corporation in any given situation. Nevertheless, a typical representation is possible, and three different models are presented. Which of the following stakeholders are included in the stakeholder view of the firm and in the network model of stakeholder theory, but not in the traditional model of managerial capitalism?

a. Shareholders

b. Government

c. Employees

d. Supplier’s stakeholder

Type: multiple choice question

Title: Chapter 02 - Question 07

07) Instrumental stakeholder theory is a theory that attempts to explain how firms take into account stakeholder interests.

a. True

b. False

Type: multiple response question

Title: Chapter 02 - Question 08

08) Since the late 1980s, we have witnessed a growing tendency towards the ‘privatization’ of many political functions and processes formerly assigned to governments. Which of the following are examples of how people’s lives are increasingly controlled and shaped by corporations as well as governments? Please select all that apply.

a. Globalization facilitates relocation and potentially makes companies able to engage governments in a ‘race to the bottom’.

b. Decisions over employment, lay-offs and relocation are taken by firms, and governments cannot directly control employment levels (though they are made responsible for unemployment).

c. The privatization of major public services and publicly owned companies has led to private actors dominating major industries such as media, telecommunications and transport.

d. Market and industrial liberalization and deregulation has increased the power of private actors: the more strongly the market dominates economic life, the weaker governmental intervention and influence is.

Type: fill-in-blank

Title: Chapter 02 - Question 09

09) In order to enhance corporate accountability, corporate social activity, and performance should be made more visible to those with a stake in the corporation. The term usually applied to this is ________.

Page reference: p.453-454

a. transparency

Type: multiple choice question

Title: Chapter 02 - Question 10

10) In ______ there is greater mistrust in corporations than in North America, in _______ a strong tradition exists of businesses donating to the arts, higher education and community services. Meanwhile, the European and Asian approach places more emphasis on the ________ responsibility of corporations towards employees and local communities.

a. Asia, Latin America, Social

b. Europe, North America, Economic

Feedback In Europe there is greater mistrust in corporations than in North America, in North America a strong tradition exists of businesses donating to the arts, higher education and community services and the European and Asian approach places more emphasis on the economic responsibility of corporations towards employees and local communities.

c. Europe, North America, Environmental

d. Asia, Europe, Economic