1. A society more satisfied with corporate social responsiveness, performance, and citizenship will invariably have
reduced criticism of business.
a.
True
b.
False
2. The marketplace in the classical view of economics, while being a good allocator of goods and services, does not do a
good job of ensuring that business always acts fairly and ethically.
a.
True
b.
False
3. Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest resulting in the
good of society.
a.
True
b.
False
4. The company town, in which a major employer builds homes and commercial buildings, and provides the goods and
services needed by its employees, is an example of paternalistic social responsibility.
a.
True
b.
False
5. In Carroll’s four-part definition of corporate social responsibility, ethical responsibilities are required of business only
by society, and not by businesses themselves.
a.
True
b.
False
6. In practical terms, the socially responsible firm must be involved in philanthropy, as society expects it.
a.
True
b.
False
7. The CSR Pyramid is a stakeholder model—that is, each of its components addresses different stakeholders.
a.
True
b.
False
8. Friedman never proposed that businesses had any obligation to act ethically.
a.
True
b.
False
9. An argument for corporate social responsibility is that it helps business compete in the global economy.
a.
True
b.
False
10. Proponents of the concept of corporate social responsiveness believe that the focus of corporate social responsibility
on accountability or obligation is not dynamic enough to describe business’s willingness and activity to respond to social
demands.
a.
True
b.
False
11. Corporate social responsiveness is focused on the action phase of management response to social demands.
a.
True
b.
False
12. Carroll’s Corporate Social Performance Model helps managers understand that social responsibility is separate and
distinct from financial performance.
a.
True
b.
False
13. Corporate social performance emphasizes the financial results of what the firm hopes to accomplish.
a.
True
b.
False
14. The corporate social performance concept has not yet spread to the business community.
a.
True
b.
False
15. A survey done by Walker Information shows that the public believes that CSR does not factor into a company’s
reputation at all.
a.
True
b.
False
16. One of the biggest advances in corporate social performance is that all agree that performance criteria need only be
responsive and not anticipatory.
a.
True
b.
False
17. Research has indicated that improvements in corporate social performance are associated with improved financial
results.
a.
True
b.
False
18. In order to operate with a true stakeholder perspective, firms must accept the multiple bottom line view.
a.
True
b.
False
19. Social responsible investing is a very new concept, originating in the early 1990s.
a.
True
b.
False
20. Social screening is the mechanism by which socially conscious investors choose their investment advisors.
a.
True
b.
False
21. The early definition of corporate social responsibility was
a.
seriously considering the impact of the company’s actions on society.
b.
maximizing profits.
c.
accomplishing the firm’s social action goals.
d.
that the corporation had not only economic and legal obligations, but also certain responsibilities to society
which extended beyond those obligations.
22. Corporate social responsibility emphasizes
a.
b.
c.
d.
23. Corporate social responsiveness emphasizes
a.
b.
c.
d.
24. Corporate social performance emphasizes
a.
b.
c.
d.
25. The classical view of economics holds that a society can best determine its needs and wants through
a.
a centrally planned economy.
b.
government owned factors of production.
c.
democracy.
d.
the marketplace.
26. The traditional concept of business responsibility in the United States is based on
a.
democracy.
b.
socialism.
c.
the classical economic model.
d.
the neoclassical economic model.
27. The concept of business responsibility based on using laws to constrain business behavior is referred to as the
a.
neoclassical economic model.
b.
socialist model.
c.
legal model.
d.
stakeholder model.
28. The concept of business responsibility that is based on concern for the various groups that are affected by a business is
known as the
a.
legal model.
b.
classical economic model.
c.
ethical model.
d.
stakeholder model.
29. Which of the following practices is not a modification of the classical economic model?
a.
philanthropy
b.
community obligations
c.
owner control
d.
paternalism
30. The most efficient use of corporate wealth to benefit the public is though contributions to charity and other worthy
causes which is called ____.
a.
taxation.
b.
philanthropy.
c.
paternalism.
d.
corporate welfare.
31. The fact that business leaders in the late 19th century felt they had to show that large corporations were a force for
social good is an example of
a.
the iron cage of rationality.
b.
socialism.
c.
paternalism.
d.
the iron law of oligarchy.
32. The modern era of corporate social responsibility (from the 1950s to today)
a.
emphasizes general awareness of social and moral concerns.
b.
has seen decreased awareness of the issue.
c.
emphasizes specific issues.
d.
is marked by legislation requiring ethical business behavior.
33. Which of the following is not one of the responsibilities in Carroll’s four-part definition of corporate social
responsibility?
a.
economic
b.
social
c.
legal
d.
philanthropic
34. The part of corporate social responsibility that focuses on fair prices and profits is
a.
economic.
b.
legal.
c.
ethical.
d.
philanthropic.
35. The part of corporate social responsibility that focuses on fulfilling the social contract by following the law is
a.
economic.
b.
legal.
c.
ethical.
d.
philanthropic.
36. The part of corporate social responsibility that focuses on activities and practices that are expected by society, but not
codified into law, is
a.
economic.
b.
legal.
c.
ethical.
d.
philanthropic.
37. The part of corporate social responsibility that focuses on business’s voluntary activities which are not normally
expected of a firm is
a.
economic.
b.
legal.
c.
ethical.
d.
philanthropic.
38. The ____ portrays the concurrent fulfillment of the firm’s economic, legal, ethical and philanthropic responsibilities
a.
Pyramid of Corporate Social Responsibility
b.
Corporate Citizenship concepts
c.
Social Response Cycle
d.
None of these
39. The socially responsible firm should strive to do all of the following EXCEPT
a.
Make a profit
b.
obey the preferred laws
c.
Be ethical
d.
Be a good corporate citizen
40. All of the following are arguments commonly made against corporate social responsibility except
a.
social problems should be addressed first by the free-market economic system, and then, if necessary, by
government.
b.
business is not equipped to handle social activities.
c.
business already has enough power—it should not be given more.
d.
business did not create today’s social problems, so it should not be expected to solve them.
41. The first and primary argument for corporate social responsibility is
a.
it is a way to gain more power.
b.
business is best equipped to handle social problems.
c.
it is in business’s long range interest to be socially responsible.
d.
the free-market economic system has proven to be ineffective in dealing with social problems.
42. Which of the following is not an argument commonly used in favor of corporate social responsibility?
a.
Business is best equipped to handle social problems.
b.
It is in the long range interest of business to be socially responsible.
c.
Being socially responsible helps ward off government intervention and regulation.
d.
Business has the resources to combat social problems.