Chapter 3 Corporate Social Responsibility
Chapter Three – Corporate Social Responsibility
Review Questions
1. Explain the connection between the classical model of corporate social responsibility and
the free market (or neoclassical) economic theory.
2. What are the ethical justifications for the classical model of corporate social
responsibility? What are the most significant ethical challenges facing these
justifications?
3. Explain the philanthropic model of corporate social responsibility. To what degree do you
think it differs from the economic model?
4. How does the modified version of the economic model with its notion of a “moral
minimum” differ from the economic model of corporate social responsibility?
5. Explain the stakeholder theory of corporate social responsibility, its ethical rationale, and
two challenges to it.
6. How does stakeholder emphasis of the creation of stakeholder value differ from the
economic model?
7. Why is sustainability a strategic goal for business?
Chapter Three – Corporate Social Responsibility
Discussion Questions
1. Is Walmart a socially responsible company? What facts would you want to know in order
to answer this question? What ethical issues lead you to one answer rather than another?
2. How would you describe the managerial philosophy of Wal-Mart? What principles are
involved? What are the over-riding aims, values, and goals of Wal-Mart?
3. Evaluate the management philosophy of Wal-Mart from the point of view of
stockholders, employees, customers, the local community, and suppliers.
4. Should business management always seek the lowest prices for its customers and the
highest rate of return on investment? What reasons might there be for seeking something
less for customers and stockholders?
5. Economists define costs in terms of opportunities forgone. What opportunities are
forgone by Wal-Mart’s “everyday low price” marketing strategy? Who pays the costs of
Wal-Mart’s low prices?
6. WalMart’s wages are above the legally required minimum wage, and health benefits are
not legally mandated. Are there reasons for a business to take actions not required by law
but which might reduce profits?
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