Questions for Discussion
1. Define the term social responsibility. Find an example of a company action that was legal but
not socially responsible. Defend your example on the basis of your definition.
The chapter discusses social responsibility and an organization’s role in actin g responsibly.
While an organization has inside and outside stakeholders (see Exhibit 3.2, Inputs to the
To look at a company that acted legally but not in a socially responsible manner is an interesting
2. Name five potentially valuable indicators of a firm’s social responsibility and describe how
company performance in each could be measured.
Indicators of a firm’s social responsibility may include:
The company’s environmental policy – indicator could be its access to environmental
consultants, its environment budget, etc.
3. Do you think a business organization in today’s society benefits by defining a socially
responsible role for itself? Why or why not?
The section “Corporate Social Responsibility and Profitability” provides insight into this issue.
4. Which of the three basic philosophies of social responsibility would you find most appealing as
the chief executive of a large corporation? Explain.
The stakeholder approach is probably the best because it approaches social responsibility from
5. Do you think society’s expectations for corporate social responsibility will change in the next
decade? Explain.
Society’s expectations for corporate social responsibility are likely to increase in the next
decade. This is because stakeholders are likely to become more powerful and vociferous. For
6. How much should social responsibility be considered in evaluating an organization’s overall
performance?
While measuring a company’s social responsibility is still a sticky issue, its importance in
evaluating an organization’s overall performance should not be under estimated because if a
7. Is it necessary that an action be voluntary to be termed socially responsible? Explain.
The section titled “Types of Social Responsibilities” identifies four types of social commitment:
Discretionary responsibilities are those that are voluntarily assumed by a business organization.
It appears that this is the highest form of social responsibility because no external agency
8. Do you think an organization should adhere to different philosophies of corporate responsibility
when confronted with different issues, or should its philosophy always remain the same?
Explain.
There is a lot of merit in having one consistent philosophy that covers various issues, which
9. Describe yourself as a stakeholder in a company. What kind of stakeholder role do you play
now? What kind of stakeholder roles do you expect to play in the future?
The most common stakeholder role that a student may play now is that of an employee (an
10. What sets the affirmative philosophy apart from the stakeholder philosophy of social
responsibility? In what areas do the two philosophies overlap?
The two would differ on the origin of social responsibility: external versus internal (or
11. Cite examples of both ethical and unethical behavior drawn from your knowledge of current
business events.
Examples of ethical behavior are hard to find simply because the business press appears to
focus on unethical behavior of executives. One example of ethical behavior is the brave action
12. How would you describe the contemporary state of business ethics?
are abusing the agency relationship to enrich themselves. However, since these abuses have
13. How can business self-interest also serve social interests?
Business self-interest can also serve social interests when it becomes clear to corporate