(moderate)
Chapter 5 – Social Responsibility and Managerial Ethics
True/False Questions
5. The classical view of organizational social responsibility is that management’s only social responsibility is to maximize profits.
True (moderate)
7. In the socioeconomic view of organizational social responsibility, maximizing profits is a company's second priority.
True (moderate)
9. Socially responsible businesses tend to have less secure long-run profits.
False (difficult)
12. The difference between an organization's social obligation and social responsiveness is the legal aspect.
False (moderate)
14. Values-based management is an approach to managing in which managers establish, promote, and practice an organization's shared values.
True (easy)
15. Though the outcomes are not perfectly measured, the majority of research studies show a positive relationship between corporate social involvement and economic performance.
True (easy)
20. The market approach to going green is when organizations respond to multiple demands of stakeholders.
False (moderate)
21. The activist approach to going green is when an organization looks for ways to respect and preserve the earth and its natural resources.
True (moderate)
25. Ethics refers to the rules and principles that define right and wrong conduct.
True (moderate)
26. In the rights view of ethics, decision-makers seek to impose and enforce rules fairly and impartially.
False (moderate)
27. The integrative social contracts theory proposes that decisions should be made on the basis of empirical and normative factors.
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True (difficult)
28. Studies have shown that most business people continue to hold utilitarian attitudes toward ethical behavior.
True (moderate)
29. In the preconventional stage of moral development, inpiduals make a clear effort to define moral principles apart from the authority of the groups to which they belong or society in general.
False (moderate)
Multiple Choice
35. Which of the following is associated with the classical view of social responsibility?
a. economist Robert Reich
b. concern for social welfare
c. stockholder financial return (moderate)
d. voluntary activities
e. ethical behaviors
37. The socioeconomic view of corporate responsibility suggests that ______________.
a. stockholders are the only responsibility.
b. corporations are independent entities.
c. maximizing profits is the first priority while social responsibility is the second priority.
d. corporations are responsible to the state and its citizens. (moderate)
e. organizations have an ethical but no legal responsibility to anyone except stockholders.
39. ______________ is defined as a business firm’s obligation, beyond that required by law and eco nomics, to
pursue long-term goals that are good for society.
a.Social obligation
b.Social responsibility (moderate)
c.Social screening
d.Value-based management
e.Social autonomy
54. Which of the following terms refers to when a firm meets its economic and legal responsibilities?
a. social responsibility
b. social obligation (moderate)
c. social responsiveness
d. social duty
e. social standard
57. When a firm advertises that it only uses recycled paper products, it is ______________.
a. meeting its social obligation.
b. meeting social responsibilities.
c. being socially responsive. (difficult)
d. paying attention to the bottom lin
e.
e. attempting to defraud consumers.
59. One should be cautious in the interpretation, but a summary of more than a dozen studies analyzing the
relationship between organizational social responsibility and economic performance provides what conclusion?
a.Being socially responsible causes good economic performance.
b.Good economic performance allows firms to be socially responsible.
c.There is a positive relationship between corporate social involvement and economic performance.
(difficult)
d.Corporate social involvement tends to devalue stock price in the long run.
e.Corporate social involvement tends to result in increased net income but lower stock prices.
a.Social autonomy
65. Which of the following is true regarding shared corporate values?
a.Inpiduals adapt easily to shared corporate values.
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b.Top management dictates shared corporate values.
c.It is not easy to establish shared corporate values. (moderate)
d.Most corporations will be unable to successfully establish shared corporate values.
e.Shared corporate values negatively impact team spirit.
72. The ______________ approach to environmental issues is when an organization obeys rules and regulations
but exhibits little environmental sensitivity.
a. legal (moderate)
b. market
c. stakeholder
d. responsibility
e. activist
74. The ______________ approach to environmental issues is when organizations respond to environmental
preferences of their customers.
a. legal
b. market (moderate)
c. stakeholder
d. responsibility
e. activist
75. Which of the following approaches toward environmental issues exhibits the highest degree of environmental
sensitivity and is a good illustration of social responsibility?
a.legal approach
b.market approach
c.stakeholder approach
d.activist approach (moderate)
81. Which of the following is a basic definition of ethics?
a. moral guidelines for behavior
b. rules for acknowledging the spirit of the law
c. rules or principles that define right and wrong conduct (moderate)
d. principles for legal and moral development
e. There is no way to define ethics.
84. Which of the following encourages efficiency and productivity and is consistent with the goal of profit
maximization?
a.utilitarian view (moderate)
b.principled view
c.rights view
d.theory of justice view
e.integrative social contracts theory
85. The rights view of ethics is based on which of the following?
a. decisions based on their outcomes or consequences
b. the imposition and enforcement of fair and impartial rules
c. respect and protection of inpidual liberties and freedoms (moderate)
d. the process used to determine the distribution of resources
e. the existing ethical norms in industries and corporations
86. The theory of justice view of ethics is based on which of the following?
a. the process used to determine the distribution of resources
b. the existing ethical norms in industries and corporations
c. decisions based on their outcomes or consequences
d. the imposition and enforcement of fair and impartial rules (difficult)
e. respect and protection of inpidual liberties and freedoms
87. The integrative social contracts theory of ethics is based on which of the following?
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a. the process used to determine the distribution of resources
b. decisions based on their outcomes or consequences
c. the imposition and enforcement of fair and impartial rules
d. the existing ethical norms in industries and corporations (difficult)
e. respect and protection of inpidual liberties and freedoms
92. A personality measure of a person's convictions is ______________.
a.moral development.
b.ego strength. (moderate)
c.locus of control.
d.social desirability.
e.self-image.
93. ______________ is a personality attribute that measures the degree to which people believe they control their
own fate.
a.Ego strength
b.Locus of control (easy)
c.Social responsibility
d.Social obligation
e.Social autonomy
97. Which of the following is true concerning the impact of organizational culture on ethical behavior?
a.Low conflict tolerance leads to ethical behavior.
b. A strong culture will support high ethical standards. (moderate)
c.Conflict tolerance is related to unethical behavior.
d. A culture that is high in control tends to encourage unethical behavior.
e.None of the above is true.
104. A survey of various codes of ethics found that their content tended to fall into all of the following categories EXCEPT:
a.be a dependable and organizational citizen.
b.do not do anything unlawful or improper that will harm the organization.
c.consider profit maximization to be the primary focus of the company. (moderate)
d.be good to customers.
Essay Questions
WHAT IS SOCIAL RESPONSIBILITY?
122. In short essay, discuss social responsibility and compare and contrast social obligation and social responsiveness.
Answer
a.Social responsibility adds an ethical imperative to do those things that make society better and not to do
those that could make it worse. A social responsible organization goes beyond what it must do by law or chooses to do only because it makes economic sense to do what it can to help improve society because that’s the right, or ethical, thing to do. Social responsibility requires business to determine what is right or wrong and to make ethical decisions and engage in ethical business activities. A social responsible organization does what is right because it feels it has a responsibility to act that way.
b.Social obligation is the obligation of a business to meet its economic and legal responsibilities. The
organization does the minimum required by law. Following an approach of social obligation, a firm pursues social goals only to the extent that they contribute to its economic goals. This approach is based on the classical view of social responsibility; that is, the business feels its only social duty is to its stockholders. In contrast to social obligation, however, both social responsibility and social responsiveness go beyond merely meeting basic economic and legal standards.

