Business Ethics Managing Corporate Citizenship And Sustainability 3rd Edition by Andrew - Test Bank

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.

Feedback:  This is one of the three main premises of Friedman’s argument.

Page reference: 47-48

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

Feedback: This is one of the three main premises of Friedman’s argument.

Page reference: 47-48

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

Feedback: One of the main features of Friedman’s work was the notion of freedom (e.g., his books, Free to choose and Capitalism and freedom), but this is not one of the three main premises of Friedman’s argument as set out in his 1970 article.

Page reference: 47-48

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

Feedback:  This is one of the three main premises of Friedman’s argument.

Page reference: 47-48

Type: fill-in-blank

Title: Chapter 02 - Question 02

02) Crane and Matten contend that a corporation can be morally responsible for its actions, because it has agency independent of its members. The main arguments in support of this point centre on a corporation’s internal decision structure and corporate __________.

Feedback: Crane and Matten contend that a corporation can be morally responsible for its actions, because it has agency independent of its members. The main arguments in support of this point centre on a corporation’s internal decision structure and corporate culture. The internal decision structure directs corporate decisions and actions, establishing a purpose for decisions that transcends the individual’s framework of responsibility. The corporate culture is a set of beliefs and values that set out what is generally regarded as right or wrong in the corporation. It is believed to be a strong influence on the individual’s ethical decision-making and behaviour (See chapter 4).

Page reference: 48-49

a. Culture

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 and Matten list as business reasons for CSR? Please select all that apply.

Feedback: These arguments are also referred to as being in firms’ enlightened self-interest; that is, a firm promotes its own self-interest by taking on social responsibilities. There are also further moral arguments for CSR (see, e.g., p52).

Page reference: 51-52

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) Carroll (1979, 1991) developed a four-part model of CSR to address the nature of business’s social responsibilities. According to Carroll’s model, which of the following responsibilities does society expect businesses to meet?

a. Economic responsibilities

Feedback: Type According to Carroll, society requires firms to meet their economic and legal responsibilities, expects them to meet their ethical responsibilities, and desires that they meet their philanthropic responsibilities.