Chapter Three: Corporate Social Responsibility and Business Ethics

1. The Wynn Company (WC) places a high value on its stakeholders. It readily acknowledges the legitimate claims each group has on the company. Which one of the following statements would be incorrect when discussing the stakeholders of this organization? • A. The competing firms of WC seek WCs existence to improve the quality of life overall. • B. The stockholders of WC expect appropriate returns on their investments. • C. Governmental agencies expect adherence to prescribed legislation from WC. • D. The local communities surrounding WC expect the organization to act as a responsible citizen. Chapter Three: Corporate Social Responsibility and Business Ethics 3-1

2. Of the following, which is best identified as the idea that business has a duty to serve society in general as well as the financial interest of stakeholders? • A. Discretionary corporate responsibility • B. Ethical corporate responsibility • C. Corporate social responsibility • D. Corporate economic responsibility 3-2 Chapter Three: Corporate Social Responsibility and Business Ethics

3. The Sturm Corporation recently has decided to expand its business horizons. It will now conduct its business operations within the United States, Mexico, China, and three countries in the Middle East. Which one of the following issues is least likely to have a large impact upon the Sturm Corporation in its global expansion endeavor? • A. The issue of human rights • B. The issue of establishing a benefit package for its CEO • C. The issue of differing business disclosure practices • D. The issue of cultural differences 3-3 Chapter Three: Corporate Social Responsibility and Business Ethics

4. The Cornerstone Corporation claims to be extremely concerned with achieving a high level of corporate social responsibility. In order to maintain a checkpoint on its social performance, it has enlisted the services of an outside firm. This firm is responsible for rating Cornerstone’s actual performance in comparison to its stated or intended performance. It can be stated the Cornerstone Corporation is most likely conducting a ________. • A. social audit • B. corporate governance audit • C. collaborative social audit • D. social collaboration responsibility audit Chapter Three: Corporate Social Responsibility and Business Ethics 3-4

5. Many organizations today are engaging in collaborative social initiatives. These companies acknowledge the many advantages to be gained through utilizing such an approach. Of the following, ________ would not be considered a true statement regarding advantages associated with collaborative social initiatives. • A. each participant has the potential to contribute valuable resources, talents, and knowledge • B. the combinative capabilities will allow the company to build new applications from available resources • C. information and operational exchanges are increased between participating members • D. usage of collaborative social initiatives are unappealing to nonprofit organizations due to the increased sharing of information Chapter Three: Corporate Social Responsibility and Business Ethics 3-5

6. According to the corporate initiatives model there are five desired key attributes for participating companies to possess. Which one of the following does not identify one of these desired attributes? • A. The companies have established long-term objectives • B. Each participating company is large enough to specialize in its area of contribution • C. Many opportunities for contributions are presented • D. Most often only one member has to be responsible for adherence to governmental regulation Chapter Three: Corporate Social Responsibility and Business Ethics 3-6

7. Shannon is a manager for a large organization. In making decisions for the business, Shannon most often renders decision that will prove beneficial for the largest number of people affected by it. Shannon is most likely guided by which one of the following approaches to ethical decision-making? • A. Utilitarian approach • B. Social justice approach • C. Human rights approach • D. Moral rights approach 3-7 Chapter Three: Corporate Social Responsibility and Business Ethics

8. 3-1. A 3-2. C 3-3. B 3-4. A 3-5. D 3-6. C 3-7. A Chapter Three: Corporate Social Responsibility and Business Ethics Answer Key 3-8