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| 1 | |
The duty of the corporation to create wealth using means that avoid harm to society's assets is called: |
| | A) | corporate accountability. |
| | B) | social ethics. |
| | C) | corporate ethics. |
| | D) | corporate social responsibility. |
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| 2 | |
Which of the following statements about corporate social responsibility is false? |
| | A) | It is the duty of a corporation to create wealth in ways that enhance societal assets. |
| | B) | The term is a modern one and did not enter common use until the 1960s. |
| | C) | It is primarily a management theory dealing with political aspects. |
| | D) | It is also known as stakeholder management. |
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| 3 | |
Which of the following is a justification given by advocates of CSR? |
| | A) | It creates administrative expenses. |
| | B) | It confuses economic goals with other goals. |
| | C) | It motivates employees and creates loyal customers. |
| | D) | It adds to social welfare when the corporation is less efficient. |
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| 4 | |
The opponents of CSR argue that: |
| | A) | markets should direct corporations. |
| | B) | it protects the reputation of corporations and avoids regulation. |
| | C) | it is a moral duty to promote social justice. |
| | D) | CSR leads to innovative products and strategies. |
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| 5 | |
Which of the following statements about libertarians is false? |
| | A) | They believe in maximum freedom. |
| | B) | They seek expansive exercise of social responsibility. |
| | C) | They believe in using property without interference by the government. |
| | D) | They believe that the market allocates resources more efficiently than political pressures. |
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| 6 | |
Libertarians advocate: |
| | A) | expansive exercise of social responsibility. |
| | B) | resource allocation based on political pressures. |
| | C) | controlled markets. |
| | D) | laissez-faire. |
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| 7 | |
Which of the following is the basis for the market capitalism model? |
| | A) | Socialism |
| | B) | Communism |
| | C) | Classical capitalism |
| | D) | Countervailing forces |
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| 8 | |
In classical capitalism, a business is socially responsible if it maximizes profits while operating within the law because a(n) ______ directs economic activity for society as a whole. |
| | A) | code of conduct |
| | B) | invisible hand |
| | C) | dominance effect |
| | D) | profit effect |
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| 9 | |
Which of the following statements regarding colonial era businesses is false? |
| | A) | Merchants practiced thrift and frugality. |
| | B) | Most businesses were big and saw charity as a dominant virtue. |
| | C) | Business owners sought respectability by giving to churches. |
| | D) | The actions of business owners show them to have been concerned citizens. |
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| 10 | |
The idea, supported by Andrew Carnegie, that charity interferes with the natural evolutionary process in a society is known as: |
| | A) | global awareness. |
| | B) | the invisible hand. |
| | C) | social Darwinism. |
| | D) | national socialism. |
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| 11 | |
Which of the following statements about Andrew Carnegie's philosophy is false? |
| | A) | His philosophy of giving was highly paternalistic. |
| | B) | He believed that money should not be wasted by paying higher wages to workers. |
| | C) | He believed that big fortunes should be used for grand purposes. |
| | D) | He believed that giving gifts to the poor would elevate the culture of a society. |
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| 12 | |
Which of the following statements about social Darwinism is true? |
| | A) | It held that well-meaning people who gave to charity interfered with the natural law of progress. |
| | B) | It held that charity helped society to integrate the less fit with the better adapted. |
| | C) | It used socialism to explain the dynamics of human society and institutions. |
| | D) | The idea of “survival of the fittest” in the social realm implied that subsidiary companies were morally superior. |
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| 13 | |
A Latin phrase denoting acts beyond the powers given to the corporation by law is: |
| | A) | intra vires. |
| | B) | a fortiori. |
| | C) | ultra vires. |
| | D) | ex fida bona. |
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| 14 | |
The idea that individual managers in business serve society by making each business a success is called: |
| | A) | social Darwinism. |
| | B) | ultra vires. |
| | C) | mainstream business management. |
| | D) | service principle. |
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| 15 | |
All of the following are ideas that expanded the idea of business responsibility beyond simple charity EXCEPT: |
| | A) | trusteeship. |
| | B) | paternalism. |
| | C) | service. |
| | D) | balance. |
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| 16 | |
In social responsibility, initiatives that are required by government regulations or by civil regulations are called: |
| | A) | mandated actions. |
| | B) | voluntary actions. |
| | C) | market actions. |
| | D) | global corporate responsibility. |
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| 17 | |
In corporate social responsibility, when a factory dumps toxic waste into a stream, this creates: |
| | A) | an external cost to society. |
| | B) | mandated actions. |
| | C) | market actions. |
| | D) | an internal cost to society. |
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| 18 | |
The perception that transnationals elude proper controls is rooted in all of the following observations EXCEPT: |
| | A) | international law is weak in addressing the social impacts of business. |
| | B) | transnational corporations are subject to uneven regulation in developing nations. |
| | C) | corporations have used strategies like outsourcing that always make them directly accountable for social harms. |
| | D) | in developed nations conservative political tides run against more government regulation of transnational firms. |
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| 19 | |
Formal statements of aspirations, principles, guidelines, and rules for corporate behavior are known as: |
| | A) | norms. |
| | B) | corporate campaigns. |
| | C) | soft laws. |
| | D) | codes of conduct. |
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| 20 | |
The practice of a corporation publishing information about its economic, social, and environmental performance is known as: |
| | A) | global reporting initiative. |
| | B) | sustainability reporting. |
| | C) | management standard. |
| | D) | corporate accountability reporting. |
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