Deck 2: Framing Business

Question 1

In his influential 1970 article, Milton Friedman protested against the notion of corporate responsibility for corporations. Which of the following is not one of the three main premises of his argument?

A) Social issues and problems are the proper province of the state rather than corporate managers
B) It is managers' responsibility to act solely in the interests of shareholders.
C) Corporate responsibilities limit a corporation's freedom to choose how to pursue its main task of increasing profits.
D) Only human beings have a moral responsibility for their actions.

Answer 1

C

Question 2

Crane et al contend that corporations often take on social responsibilities, in order to promote its own self-interests, this is known as ___________.

A) Enlightened self-interest
B) Social licence to operate
C) Social contract theory
D) Ethical duty

Answer 2

A

Question 3

It is now generally accepted that business responsibility does extend beyond simply making a profit. Which of the following do Crane et al list as business reasons for CSR? Please select all that apply.

A) Socially responsible companies voluntarily solve the social and environmental problems their activities have caused.
B) Socially responsible firms may find it easier to attract employees, who may be more committed.
C) Corporations seen as responsible may attract more and/or more loyal customers.
D) By engaging in voluntary CSR, corporations may avoid government legislation.

Answer 3

B,C,D

Question 4

The notion of _______ contends that products and markets can be reconceived by serving consumers and contributing to the common good. Furthermore, that productivity in the values chain can be refined by enhancing social, environmental and economic capabilities of supply chain members and local cluster development can be enabled so that development goals can be achieved through local collaborations.

A) Shared value creation
B) Sustainability
C) Corporate Governance
D) Corporate responsibility

Question 5

Crane et al describe "traditional" and "contemporary" CSR. Match the feature to the appropriate strategy.
-CSR is integral to the business model

A) Contemporary
B) Traditional
C) Contemporary
D)Traditional

Question 6

Crane et al describe "traditional" and "contemporary" CSR. Match the feature to the appropriate strategy.
-CSR is primarily reactive

A) Contemporary
B) Traditional
C) Contemporary
D)Traditional

Question 7

Crane et al describe "traditional" and "contemporary" CSR. Match the feature to the appropriate strategy.
-CSR is about value creation

A) Contemporary
B) Traditional
C) Contemporary
D)Traditional

Question 8

Crane et al describe "traditional" and "contemporary" CSR. Match the feature to the appropriate strategy.
-CSR is Bolted On

A) Contemporary
B) Traditional
C) Contemporary
D)Traditional

Question 9

Crane et al's definition of a stakeholder makes it clear that it is impossible to identify a definitive group of relevant stakeholders for any given corporation in any given situation. Nevertheless, a typical representation is possible, and three different models are presented. Which of the following stakeholders are included in the stakeholder view of the firm and in the network model of stakeholder theory, but not in the traditional model of managerial capitalism?

A) Shareholders
B) Government
C) Employees
D) Supplier's stakeholder

Question 10

Instrumental stakeholder theory is a theory that attempts to explain how firms take into account stakeholder interests.

Question 11

Since the late 1980s, we have witnessed a growing tendency towards the 'privatization' of many political functions and processes formerly assigned to governments. Which of the following are examples of how people's lives are increasingly controlled and shaped by corporations as well as governments? Please select all that apply.

A) Globalization facilitates relocation and potentially makes companies able to engage governments in a 'race to the bottom'.
B) Decisions over employment, lay-offs and relocation are taken by firms, and governments cannot directly control employment levels (though they are made responsible for unemployment).
C) The privatization of major public services and publicly owned companies has led to private actors dominating major industries such as media, telecommunications and transport.
D) Market and industrial liberalization and deregulation has increased the power of private actors: the more strongly the market dominates economic life, the weaker governmental intervention and influence is.

Question 12

In order to enhance corporate accountability, corporate social activity, and performance should be made more visible to those with a stake in the corporation. The term usually applied to this is ________.

Question 13

In ______ there is greater mistrust in corporations than in North America, in _______ a strong tradition exists of businesses donating to the arts, higher education and community services. Meanwhile, the European and Asian approach places more emphasis on the ________ responsibility of corporations towards employees and local communities.

A) Asia, Latin America, Social
B) Europe, North America, Economic
C) Europe, North America, Environmental
D) Asia, Europe, Economic