1. Which of the following best describes social responsibility?
a. A corporation's rights, such as due process in a court of law, freedom of speech, and
privacy
b. Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and
philanthropic responsibilities expected of it by its stakeholders
c. A company's attempt to maximize its profits in order to benefit stockholders
d. All the policies of a company that promote ethical business practices
e. All businesses except those with less than 50 employees
ANS: B PTS: 1
2. To which of the following forms of business can the concept of social responsibility be applied?
a. Large, public corporations
b. Small, privately held corporations
c. All forms of corporations
d. Any form of business, from a sole proprietorship to a large corporation
e. All businesses except those with less than 50 employees
ANS: D PTS: 1
3. In order for any social responsibility initiative to have strategic significance in a company, it must be
fully supported and valued by
a. top management.
b. legislators who develop federal law and policy.
c. government officials in the local area.
d. the company's stockholders.
e. non-profit groups who benefit from a company's philanthropic spending.
ANS: A PTS: 1
4. Companies with less than 100 employees account for about ____ percent of total employment in the
United States.
a. 40
b. 50
c. 60
d. 70
e. 10
ANS: B PTS: 1
5. Which of the following is not one of the four types of corporate social responsibility?
a. Ethical
b. Economic
c. Environmental
d. Legal
e. Philanthropic
ANS: C PTS: 1
6. Many claimed that Microsoft's dominance in the computer operating systems market violated which
corporate social responsibility?
a. Ethical
b. Economic
c. Legal
d. Environmental
e. Philanthropic
ANS: B PTS: 1
7. Society's primary method of enforcing its requirements regarding business behavior is through
a. the legal system.
b. boycotts and demonstrations.
c. the media.
d. buying foreign-made products.
e. self-regulation.
ANS: A PTS: 1
8. Business ethics refers to
a. regulations and laws that guide companies in their business decisions.
b. companies refraining from forming monopolies or restricting competition in any way.
c. principles and standards that guide behavior in the business world.
d. unique industry and professional factors that influence employees.
e. the percentage of after-tax profits given to non-profit and community groups.
ANS: C PTS: 1
9. Minimal responsibility primarily involves
a. incorporating efforts in such a way as to benefit all stakeholders of the company.
b. fulfilling social responsibilities including legal and ethical guidelines.
c. addressing the compliance concerns of stakeholders in regards to legal and economic
matters.
d. trying to maximize stockholder wealth.
e. satisfying the primary stakeholders regardless of the possible legal implications.
ANS: C PTS: 1
10. Developing a code to aid employees in their decision making is an example of an activity for which
type of social responsibility?
a. Economic
b. Ethical
c. Philanthropic
d. Legal
e. Governance
ANS: B PTS: 1
11. Making voluntary contributions of money, time, and other resources to improve the community most
closely resembles which type of social responsibility?
a. Economic
b. Legal
c. Philanthropic
d. Environmental
e. Ethical
ANS: C PTS: 1
12. For a local beauty shop that is a privately owned business, which of the following is not likely to be a
stakeholder?
a. Tax authorities
b. Customers
c. Suppliers of hair coloring solutions
d. The New York Stock Exchange (NYSE)
e. Other businesses in the same neighborhood and shopping center
ANS: D PTS: 1
13. Those groups to whom a company is responsible are collectively known as
a. stockholders.
b. society.
c. employees and customers.
d. stakeholders.
e. very important people.
ANS: D PTS: 1
14. When Benetton used convicted felons awaiting death sentences in a new advertising campaign,
a. dialogue about high rates of violence increased nationwide.
b. sales increased because people responded favorably to a company strong enough to
address this controversial issue.
c. Benetton received an award for its creative and socially aware ad campaign.
d. there was very little impact on Benetton, its customers, or society in general.
e. people were outraged and some companies responded by no longer carrying Benetton
products.
ANS: E PTS: 1
15. Shortly after World War II, corporate managers
a. were closely scrutinized by their boards of directors.
b. possessed nearly unlimited power.
c. had little decision-making authority over daily matters.
d. rarely used the company's resources for reasons other than self-interest.
e. were hired away from other firms on a regular basis.
ANS: B PTS: 1
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