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1 | |
Robert Wood, who was the CEO of Sears, Roebuck for thirty years, believed that a large corporation was a social, political, and economic institution. |
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| | A) | True |
| | B) | False |
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2 | |
Milton Friedman believes that a manager's sole objective is to help stockholders to make as much profit as possible within the law. |
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| | A) | True |
| | B) | False |
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3 | |
Historically, there has been less pressure in Europe for private companies to deal with social problems voluntarily than has been the case in the US. |
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| | A) | True |
| | B) | False |
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4 | |
The idea of "corporate social responsibility" has developed quickly in Japan. |
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| | A) | True |
| | B) | False |
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5 | |
The term "global corporate citizenship" is narrower than the term "corporate social responsibility." |
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| | A) | True |
| | B) | False |
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6 | |
The duty of the corporation to create wealth using means that avoid harm to society's assets is called: |
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| | A) | capitalism. |
| | B) | socialism. |
| | C) | communism. |
| | D) | corporate social responsibility. |
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7 | |
Wealth of Nations was written by: |
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| | A) | Adam Smith. |
| | B) | Milton Friedman. |
| | C) | Robert Wood. |
| | D) | Ralph Nader. |
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8 | |
The idea, supported by Andrew Carnegie, that charity interferes with the natural evolutionary process in a society is known as: |
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| | A) | global awareness. |
| | B) | the invisible hand. |
| | C) | social Darwinism. |
| | D) | all of the above |
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9 | |
The idea that individual managers in business serve society by making each business a success is called: |
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| | A) | social Darwinism. |
| | B) | socialism. |
| | C) | communism. |
| | D) | the service principle. |
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10 | |
Corporate codes in the US typically: |
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| | A) | are vague generalizations. |
| | B) | rarely focus on global norms. |
| | C) | lack concreteness. |
| | D) | all of the above |
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11 | |
The 1977 Code of Conduct that required multinational corporations in South Africa to do business in non-discriminatory fashion was called: |
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| | A) | The Sullivan Principles. |
| | B) | The International Code of Conduct. |
| | C) | Apartheid. |
| | D) | none of the above. |
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12 | |
Which of the following is a basic component of social responsibility? |
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| | A) | Externally mandated actions |
| | B) | Voluntary actions |
| | C) | Market actions |
| | D) | All of the above |
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13 | |
In social responsibility, the actions of competitors to forces in the marketplace are known as: |
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| | A) | market actions. |
| | B) | voluntary actions. |
| | C) | mandated actions. |
| | D) | all of the above. |
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14 | |
In social responsibility, programs that are required by government regulations or by agreements with stakeholders are called: |
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| | A) | mandated actions. |
| | B) | voluntary actions. |
| | C) | market actions. |
| | D) | global corporate responsibility. |
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15 | |
In corporate social responsibility, when a factory dumps toxic waste into a stream, this creates: |
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| | A) | an external cost to society. |
| | B) | mandated actions. |
| | C) | market actions. |
| | D) | all of the above |
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16 | |
Which of the following is the basis for the market capitalism model? |
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| | A) | Socialism |
| | B) | Communism |
| | C) | Classical capitalism |
| | D) | Countervailing force |
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17 | |
In classical capitalism, the idea that a business should maximize profits while operating legally is supposed to work because a(n) ______ directs economic activity for society as a whole. |
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| | A) | stakeholder effect |
| | B) | invisible hand |
| | C) | dominance effect |
| | D) | profit effect |
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18 | |
The idea that company reports cannot be independently verified by outsiders is another way of saying that these reports are not: |
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| | A) | accurate. |
| | B) | transparent. |
| | C) | MNCs. |
| | D) | all of the above. |
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19 | |
The United Nations supports the idea of ______ in which corporations have rights and duties in the societies in which they operate. |
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| | A) | countervailing forces |
| | B) | dominance |
| | C) | global corporate citizenship |
| | D) | market capitalism |
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20 | |
Codes of conduct within US corporations typically include: |
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| | A) | a mission statement of the corporation. |
| | B) | duties to stakeholders by the corporation. |
| | C) | a set of principles to guide business conduct. |
| | D) | all of the above. |