Chapter 03
Corporate Social Responsibility and Citizenship
True / False Questions
1. Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals.
True False
2. The capability of cor...
1. Walmart has been called a "template for 21st century capitalism."
True False
2. A business is any organization that is engaged in making a product or providing a
service for a profit.
True False
3. Businesses and society are independent of one another.
True False
4. The stakeholder theory of the firm argues that a firm's sole purpose is to create value
for its shareholders.
True False
5. The instrumental argument for the stakeholder theory of the firm says that
companies perform better if they consider the rights and concerns of multiple groups
in society.
True False
6. The normative argument for the stakeholder theory of the firm says that the
stakeholder view is simply a more realistic description of how companies really work.
True False
7. Nonmarket stakeholders are those that engage in economic transactions with the
company as it carries out its primary purpose of providing society with goods and
services.
,8. Market stakeholders include nongovernmental organizations and the business
support groups.
True False
9. Government can be considered both a market and nonmarket stakeholder.
True False
10. The interests of different stakeholders often coincide.
True False
11. Stakeholders involved with one part of a company often may have little or no
involvement with another part of the company.
True False
12. Some scholars have suggested that managers pay the most attention to stakeholders
possessing the least salience.
True False
13. Urgency refers to the extent to which a stakeholder's actions are seen as proper or
appropriate by the broader society.
True False
14. A stakeholder map is a useful tool, because it enables managers to see quickly how
stakeholders feel about an issue and whether salient stakeholders tend to be in favor
or opposed.
True False
15. The external environment of business is static.
, 16. Which statement is not correct about the business-society interdependence?
A. Business is a part of
society.
B. Business is separated from the rest of society by clear
boundaries.
C. Business activities impact other activities in
society.
D. Actions by governments rarely affect
business.
17. Which of the following examples best illustrates the boundary exchanges a company
would encounter according to the general systems theory?
A. An industrial company installs new equipment in its plant to comply with
environmental regulations.
B. A software company develops an application for
a client.
C. A purchasing department employee negotiates a price on parts from
a supplier.
D. All of the
above.
18. Which of the following is the result of the inseparable relationship between business
and society?
A. All business decisions have a social
impact.
B. The vitality of business depends on society's actions and
attitudes.
C. The survival of business is independent of
society.
D. Both A and B, but not
C.
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