mgmt09_tif05 - Chapter 5 Social Responsibility and...

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Chapter 5 Social Responsibility and Managerial Ethics TRUE/FALSE QUESTIONS WHAT IS SOCIAL RESPONSIBILITY? 1. The classical view of organizational social responsibility is that management’s only social responsibility is to maximize profits. (True; moderate; p. 116 ; AACSB: Ethics) 2. The most outspoken advocate of the classical view of organizational social responsibility is Milton Friedman. ( True; easy; p. 116 ; AACSB: Ethics) 3. In the socioeconomic view of organizational social responsibility, maximizing profits is a company’s second priority. (True; moderate; p. 116 ; AACSB: Ethics) 4. At Stage 3 of an organization’s expansion of social responsibility, the manager will promote the stockholders’ interest by seeking to minimize costs and maximize profits. (False; moderate; p. 118 ; AACSB: Ethics) 5. Socially responsible businesses tend to have less-secure long-run profits. (False; difficult; p. 118 ; AACSB: Ethics) 6. One argument against businesses championing social responsibility issues is that businesses already have too much power. (True; difficult; p. 118 ; AACSB: Ethics) 7. Possession of resources is an argument for social responsibility. (True; moderate; p. 118 ; AACSB: Ethics) 8. A business has fulfilled its social obligation when it meets economic, legal, and ethical obligations. (False; moderate; p. 119 ; AACSB: Ethics) 9. The difference between an organization’s social obligation and social responsiveness is the legal aspect. (False; moderate; p. 119 ; AACSB: Ethics) SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE 10. 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; p. 119 ; AACSB: Ethics) 11. Socially responsible mutual stock funds may offer insight into the issue of social responsibility and economic performance. (True; easy; p. 121 ; AACSB: Ethics) 115
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12. Socially responsible mutual stock funds use some type of greening of management. (False; moderate; p. 121 ; AACSB: Ethics) 13. Morningstar, a mutual fund tracking organization, reports that since 2002, social funds that had invested in small company stocks had lower annualized return than large company mutual funds. (False; moderate; p. 122 ; AACSB: Ethics) 14. A company creates significant business risks when it acts socially irresponsible. (True; easy; p. 122 ; AACSB: Ethics) THE GREENING OF MANAGEMENT 15. Affluent societies account for more than 95 percent of the world’s energy and resource consumption. (False; moderate; p. 123) 16. The term “shades of green” refers to the level of environmental responsibility that a company has. (True; easy; p. 124) 17. The market approach to going green is when organizations respond to multiple demands of stakeholders. (False; moderate; p. 124) 18. The activist approach to going green is when an organization looks for ways to respect and preserve the earth and its natural resources.
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