Chapter 03 – Corporate Social Responsibility and Business Ethics
Chapter 03
Corporate Social Responsibility and Business Ethics
Multiple Choice Questions
1. (p. 50) A firm’s claimants are collectively referred to as
2. (p. 50) A firm’s claimants are sometimes referred to as its
3. (p. 50) According to a survey of over 2000 board of directors, which of these stakeholders
were perceived to be most important?
4. (p. 50) Which of these stakeholders, according to a survey of board of directors, was
perceived to be least important?
5. (p. 50) Which of these is NOT a step in incorporating the interests of stakeholders into its
mission statement?
6. (p. 50) With regards to stakeholders’ specific claims vis-à-vis the firm, the claims of various
stakeholders groups
7. (p. 50) The process of reconciliation of the claims made on the firm is necessary because
8. (p. 50) The claims of various stakeholder groups often
9. (p. 51) Economic, social, and psychological satisfaction in the place of employment is a
10. (p. 51) Security of pledged assets is a typical claim of which stakeholder group?
11. (p. 51) Freedom from arbitrary and capricious behavior on the part of company officials is a
typical claim of which stakeholder group?
12. (p. 51) Continuing source of business is a typical claim of which stakeholder group?
13. (p. 51) Freedom to participate in collective bargaining is a typical claim of which
stakeholder group?
14. (p. 51) The demands of stakeholder groups constitute one principal set of inputs to the
company
15. (p. 51) Participation in distribution of profits and election of board of directors are claims of
which of these stakeholders vis-à-vis the firm?
16. (p. 51) Adequate working conditions, freedom from arbitrary and capricious behavior on the
part of company officials and share in fringe benefits are claims of which of these
stakeholders?
17. (p. 51) Professional relationship in contracting for, purchasing and receiving goods and
services represent the claim of which of these stakeholders vis-à-vis the firm?
18. (p. 51) Competitors as a stakeholder would have which of the following claims on a firm?
19. (p. 51) Fair competition is a:
20. (p. 52) Which of these is NOT a principal set of inputs to the company mission?
21. (p. 52) Which of the following are inside stakeholders?
22. (p. 52) Individuals and groups who are stockholders or employees of firms are called:
23. (p. 52) Which of these are NOT outside stakeholders?
24. (p. 53) Which of these represent a pollution prevention strategy in an organization?
25. (p. 53) Each firm regardless of ____ must decide how to meet its perceived social
responsibility.
26. (p. 53) Which of the following is NOT a type of social commitment that strategic managers
need to consider?
27. (p. 53) Which of these represents the most basic responsibilities of business?
28. (p. 53) The duty of managers, as agents of the company owners, to maximize stockholder
wealth is referred to as ________ responsibilities.
29. (p. 53) ________ responsibilities reflect the form’s obligations to comply with the laws that
regulate business activities.
30. (p. 55) Which responsibilities reflect the company’s notion of right and proper business
behavior?
31. (p. 53) _______ responsibilities are the most basic social responsibilities of the firm.
32. (p. 57) _______ responsibilities are those that are voluntarily assumed by a business
organization.
33. (p. 57) Public relations activities and good citizenship are examples of which responsibilities
of a business organization?
34. (p. 57) Through _______, managers attempt to enhance the image of their companies,
products and services by supporting worthy causes.
35. (p. 57) Managers need to know that, in the view of the general public, _______ and _______
responsibilities are required, _______ responsibility is expected and _______ responsibility is
desired.
36. (p. 57) _______ is the idea that business has a duty to serve society in general as well as the
financial interests of stockholders.
37. (p. 57) In the case of corporate social responsibility, costs and benefits are both ______ and
______.
38. (p. 57) Which of these is NOT true about CSR and the bottom line?
39. (p. 59) All of these are broad trends that are driving businesses to adopt CSR frameworks
EXCEPT:
40. (p. 59) Which of these incidents can be credited for the resurgence of environmentalism with
formation of the Coalition for Environmentally Responsible Economics (CERES)?
41. (p. 60) Much of the impetus for social investing originated with
43. (p. 60) Which of these is the largest and fastest growing segment of social investing?
44. (p. 61) One of the most contentious social responsibility issues confronting multinational
firms pertains to
45. (p. 62) Which law revised and strengthened auditing and accounting standards?
46. (p. 63) Which of these is true about Sarbanes-Oxley Act?
47. (p. 65) The Sarbanes-Oxley Act includes provisions restricting the corporate control of all of
these EXCEPT
48. (p. 65) If a company must restate its financial statements, per the Sarbanes-Oxley Act, the
49. (p. 65) A major consequence of the Sarbanes-Oxley Act has been the
50. (p. 65) The most significant change in the restructuring of governance structure due to the
Sarbanes-Oxley Act is the