Deck 3: The Corporation and Public Policy: Expanding Responsibilities

Question 1

The Honest Leadership and Open Government Act of 2007 was part of the most comprehensive lobbying and ethics reform effort in the federal government in many years.

Answer 1

True
Explanation: The Honest Leadership and Open Government Act of 2007 was part of the most comprehensive lobbying and ethics reform effort in the federal government in many years.Studies and expert opinion,however,indicate that some of those who influence government are able to avoid registering as lobbyists by turning from direct legislative contact to new influence-peddling tactics such as social media campaigns.

Question 2

Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty.

Answer 2

True
Explanation: Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty.Now in the 21st century,expectations for business in society have been radically altered.

Question 3

Business has enjoyed a central and favored role in American life,and as such,it must assume a measure of the burden for the welfare of the total society.

Answer 3

True
Explanation: Business has enjoyed a central and favored role in American life.As such,it must assume a measure of the burden for the welfare of the total society.Indeed,businesspeople themselves now generally endorse businesses' responsibility to help solve society's problems.

Question 4

Triple bottom-line advocates call for managerial practices that respect and measure a firm's social and environmental performance just as the firm's financial performance is respected and measured.

Question 5

Labor unions can lawfully establish political action committees to solicit and disburse voluntary campaign contributions.

Question 6

Which of the following is likely to be a result if the corporate community takes an increasingly direct role in the political process?

A)The process of globalization will be adversely affected.
B)The law-making and implementing process will be strengthened.
C)The pluralist,democratic approach to governance will be undermined.
D)The corruption levels will decrease.

Question 7

According to stakeholder advocates,simply maximizing the interests of the primary stakeholders of a corporation,would satisfy a corporation's social duties.

Question 8

The perception of business misdeeds or indifference,in conjunction with the growing influence of business values throughout American life,has led in recent decades to the development of the doctrine of corporate social responsibility.

Question 9

Pushing managers to adopt a bigger and broader conception of social responsibility will reduce the chances of establishing a sustainable,enduring global community where resources are not dangerously depleted or damaged.

Question 10

Lobbying is not confined to the business community.

Question 11

The primary goal of the triple bottom-line approach is to ensure the maximum short-term viability of an organization.

Question 12

Corporations can solicit campaign contributions from employees,shareholders,and others.

Question 13

Social enterprise is a movement in which people launch for profits programs,addressing social problems.

Question 14

The outsourcing of good,high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in the country.

Question 15

According to Milton Friedman,the firm that maximizes its profits is not necessarily maximizing its contribution to the society.

Question 16

Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standards in the area of child labor.

Question 17

Corporate funds can lawfully be given directly to candidates for federal office.

Question 18

Churches are strictly against employing standard business practices such as advertising,promotional giveaways,and marketing campaigns.

Question 19

The business community in America cannot influence the electoral and law-making processes.

Question 20

An alternative and arguably more "progressive" approach to stakeholders involves a collaborative strategy in which stakeholder relationships are regarded as being mutually defined,cooperative,and reciprocal.

Question 21

Which of the following statements is true of political action committees (PACs)?

A)PACs can only contribute to national elections,and not state elections.
B)Corporations cannot solicit contributions from employees and shareholders.
C)The money disbursed by PACs is part of the general corporate accounts.
D)PACs are only supposed to collect voluntary contributions.

Question 22

Which of the following is a highly controversial 5-4 ruling by the U.S.Supreme Court in the 2010 Citizens United case?

A)It allowed corporations to coordinate organizational fund spending with parties or candidates.
B)It held that limiting organizational funds for candidates standing for elections is unlawful.
C)It allowed corporations to lawfully donate corporate funds to parties.
D)It held that limiting corporate campaign contributions violated corporate free speech rights.

Question 23

Which of the following is an argument put forth by the liberal wing of the Supreme Court in the Citizens United case?

A)Treating corporations as people in case of political contributions would allow these organizations to further corrupt the political processes.
B)Limiting corporate campaign contributions would violate corporate free speech rights.
C)The growing influence of the business community would saturate and dominate all corners of American life.
D)By outsourcing of good,high-paid factory jobs from the United States,corporations are fundamentally challenging and changing life in the home country.

Question 24

Which of the following falls under the "desired" category of Carroll's Social Responsibility Pyramid?

A)Philanthropic responsibilities
B)Economic responsibilities
C)Legal responsibilities
D)Ethical responsibilities

Question 25

The 501(c)4 groups are particularly attractive because:

A)contributors' names need not be disclosed.
B)the names of Super PAC donors need not be disclosed.
C)these organizations cannot make political contributions in support of their goals.
D)contributions collected by these groups do not have to be spent on political advertising.

Question 26

Which of the following best describes the historical view of business responsibilities till the first half of the twentieth century?

A)Businesses had to assume the affirmative duty of the resolution of social problems.
B)Businesses were expected to give close accounting attention to their social and environmental performance as well as financial performance.
C)The duty of businesses was the production and distribution of the best products and services at the lowest possible prices.
D)The primary duty of businesses was operation with a focus on environmentally sensitive practices to husband scarce resources.

Question 27

Which of the following falls under the "expected" category of Carroll's Social Responsibility Pyramid?

A)Philanthropic responsibilities
B)Economic responsibilities
C)Legal responsibilities
D)Ethical responsibilities

Question 28

Which of the following statements is true of shared value advocates?

A)They believe that an entrepreneurial,profit-seeking,and capitalist approach is the most beneficial way to correct social problems.
B)They expect businesses to recognize that their goal must be creating shared value rather than profit per se.
C)They believe that nonprofit organizations are the most powerful institutions for creating shared value among the members of the society.
D)They expect businesses to focus on maximization of profit and to propagate the shared values of the immediate shareholders.

Question 29

Free markets are more efficient decision makers than government rules.Which of the following is a result of the efficient decisions made by free markets?

A)National boundaries are becoming stronger.
B)Technology is shrinking the globe.
C)Financial assets have stopped flowing freely.
D)The standards of living of less developed countries have decreased.

Question 30

Which of the following statements is true of lobbying in the United States?

A)It is illegal for lobbyists to approach politicians.
B)It is confined to the business community.
C)It has a negligible effect on political decisions.
D)It is an essential ingredient in big business strategy.

Question 31

Which of the following is an impact of the Supreme Court's highly controversial 5-4 ruling in the 2010 Citizens United case?

A)The decision has restricted corporations and labor unions from spending unlimited organizational funds for candidates.
B)The decision has permitted corporations and labor unions to coordinate organizational fund spending with parties or candidates.
C)The decision has recognized political spending as a direct acceptance of liberty guaranteed by the First Amendment.
D)The decision has opened the door to gushers of personal and corporate money funneled through Independent Expenditure political action committees.

Question 32

Which of the following is a view professed by Nobel prize-winning economist Milton Friedman?

A)Socially responsible behavior,within reasonable bounds,is simply the "right thing" to do.
B)A strong bottom line,in many cases,requires considerations beyond the immediate,short-run,profit-maximizing interests of a firm.
C)Any dilution of the profit-maximizing mode-such as charitable contributions-is a misuse of the stockholders' resources.
D)In the environmental domain,sustainability will require attention to energy efficiency,waste minimization,recycling,and the total ecological agenda.

Question 33

Which of the following statements is true of Carroll's Social Responsibility Pyramid?

A)A company's primary responsibility involves engagement in philanthropic endeavors.
B)A firm's economic responsibilities should be limited to breaking even,and all profit should be invested in the community.
C)A company's social responsibility begins with making a profit lawfully.
D)A socially responsible firm would focus primarily on its discretionary and ethical responsibilities and would minimize its focus on economic gain.

Question 34

Which of the following statements is true of corporate funds?

A)Although political action committees' contributions are voluntary,corporate employees often feel pressured to participate.
B)Corporations cannot solicit contributions from employees,shareholders,and others.
C)Corporations cannot lawfully establish political action committees to solicit and disburse voluntary campaign contributions.
D)Corporate funds can lawfully be given directly to candidates for federal office.

Question 35

According to critics,which of the following is the impact of an economic structure that is concentrated?

A)Companies and industries are no longer fully responsive to market commands.
B)The government has been able to regulate powerful companies without much trouble.
C)Concentrated structure has helped in increasing meaningful competitiveness in the American market.
D)There has been a significant decrease in complaints about the corporate role in pollution.

Question 36

Which of the following statements is true about advertising in schools?

A)It is likely to discourage critical thinking.
B)It is likely to discourage materialism.
C)It is likely to celebrate reliable values.
D)It is likely to advocate criminal behavior.

Question 37

An organization that contributes resources to the community and strives to improve the quality of life for the community is most likely fulfilling the discretionary _____ of Carroll's Social Responsibility Pyramid.

A)ethical responsibilities
B)legal responsibilities
C)philanthropic responsibilities
D)economic responsibilities

Question 38

According to the free market view,which of the following is considered the best measure of social responsibility?

A)Profit maximization
B)Long-term company interest
C)Triple bottom line/sustainability
D)Social and environmental performance

Question 39

From a profit maximization point of view,the only responsible and moral course of behavior is to:

A)create shared value.
B)use a portion of profits for social benefits.
C)reap the highest return possible.
D)maximize the interests of all stakeholders and not only the shareholders.

Question 40

Which of the following statements is true of large American corporations?

A)Large corporations have served public interest well.
B)The colossal size of corporations permits continuing abuse of the American public.
C)Large corporations have ceased to be the fixture of American landscape.
D)The colossal size of corporations has helped in bringing down the existing cutthroat competition.

Question 41

Give a brief account of the corporate social responsibility practice in the American way of life.

Question 42

Briefly explain the basic premise of the Social Responsibility Pyramid developed by Professor
A.Carroll.

Question 43

Explain how globalization has brought new challenges,particularly for the wealthy,powerful Western garment manufacturers who profit from cheap labor in less developed countries.

Question 44

"The power of the business community has become so encompassing that virtually all dimensions of American life have absorbed elements of the business ethic." Explain.

Question 45

Which of the following is the first global standard which measures companies' social and environmental records?

A)The North American Free Trade Agreement
B)The Social Accountability 8000
C)The International Organization of Standardization 9000
D)The Environmental Auditing Standards

Question 46

Briefly explain the social responsibility continuum for businesses in America.

Question 47

A firm that adopts the triple bottom-line approach:

A)does not follow market principles in its business processes.
B)believes there is only one social responsibility of business-to use its resources to engage in activities designed to increase its profits.
C)focuses on the legal and economic responsibilities of Carroll's Social Responsibility Pyramid and does not consider discretionary responsibilities.
D)considers its social and environmental responsibilities as important as its financial responsibilities.

Question 48

Discuss political action committees (PACs) in the context of corporations.

Question 49

Which of the following statements is true of a company that adopts the stakeholder approach?

A)For a company adopting the stakeholder approach,shareholders are the only stakeholders.
B)For a company adopting the stakeholder approach,profit depends on the interplay between the corporation,government,and society.
C)For a company adopting the stakeholder approach,profit maximization and earning short-term profits are the primary goals.
D)For a company adopting the stakeholder approach,the only concern is to fulfill the categories of economic and legal responsibilities of Carroll's Social Responsibility Pyramid.

Question 50

A company that adopts the shareholder approach to business would be most likely to make _____ its top priority.

A)social responsibility
B)sustainability
C)employee welfare
D)profit

Question 51

Which of the following statements is true of the triple bottom-line approach?

A)The only responsible and moral course of behavior is to reap the highest return possible,within the law.
B)Financial success is necessary,but social and environmental responsibilities are of equal importance,and corporations paying attention to those social and economic duties will contribute to both organizational and societal sustainability.
C)The goal of business is to ensure the short-term viability of an organization's plans as organizational priorities change with time.
D)Businesses have only one social responsibility-to use their resources and engage in activities designed to increase their profits,so long as they stay within the rules of the game,which is to say,engage in open and free competition,without deception or fraud.

Question 52

Why is there a growing need to move beyond corporate social responsibility (CSR) to a business model labeled creating shared value (CSV)?

Question 53

Which of the following best defines the stakeholders of a corporation?

A)All those who stand to gain from the corporation's success
B)All those who have invested financially in the corporation's activities
C)All the groups that may significantly affect the corporation's performance or be affected by it
D)All those whose livelihood depends directly on the corporation itself

Question 54

Digi V,an electronics company,focuses on striking a balance between its profits and its responsibility toward the environment.It uses biodegradable substances to manufacture its products and has over the years attracted many loyal customers who are concerned about the environment.The strategy used by Digi V is an example of the:

A)profit maximization approach.
B)monopolistic approach.
C)triple bottom-line approach.
D)shareholder approach.

Question 55

Compare,from a corporate social responsibility point of view,the corporate policies of Walmart and Costco.