03 - Chapter 3SOCIAL RESPONSIBILITY AND ETHICS TRUE/FALSE...

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Chapter 3—SOCIAL RESPONSIBILITY AND ETHICS TRUE/FALSE 1. Stakeholders are all those who are affected by or can affect the activities of the firm. ANS: T DIF: E OBJ: 1 2. The media, social interest groups, and consumer groups are all considered primary stakeholders. ANS: F DIF: E OBJ: 1 3. The primary stakeholders of a firm are those who have a formal, official, or contractual relationship with the organization. ANS: T DIF: E OBJ: 1 4. Stakeholder is simply another word for stockholder. ANS: F DIF: E OBJ: 1 5. Secondary stakeholders are those individuals or organizations that have a formal, official, or contractual relationship with the organization. ANS: F DIF: E OBJ: 1 6. If Ace Lumber had a contract with Centex to provide the company with building materials, from Centex's perspective Ace Lumber would be a primary stakeholder. ANS: T DIF: E OBJ: 1 7. If you owned stock in IBM, you would be considered to be a primary stakeholder of the IBM Corporation. ANS: T DIF: E OBJ: 1 8. If you live near a stream and are affected by the pollutants that a nearby chemical factory puts into the stream, then you are a primary stakeholder of the chemical factory. ANS: F DIF: E OBJ: 1 9. In a very general sense, corporate social responsibility is defined as the interaction between business and the social environment in which it exists. ANS: T DIF: E OBJ: 2 10. To be considered a moral agent, a business must act in a way that is considered moral. ANS: T DIF: E OBJ: 2 11. Milton Friedman's perspective on social responsibility is best characterized as social responsiveness. 53
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ANS: F DIF: E OBJ: 2 12. In direct contrast to H.R. Bowen’s concepts of social contract and moral agent, the economic responsibility perspective of social responsibility argues that corporations cannot be moral agents. ANS: T DIF: E OBJ: 3 13. The four primary perspectives of corporate social responsibility are economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility. ANS: T DIF: E OBJ: 3 14. Proponents of the economic responsibility perspective argue that corporations cannot be moral agents. ANS: T DIF: E OBJ: 3 15. The legal responsibility perspective argues that business should act in ways that are consistent with public policy. ANS: T DIF: E OBJ: 3 16. The economic responsibility perspective of social responsibility stipulates that businesses should act in a way that is consistent with society's view of responsible behavior as well as with established laws and policies. ANS: F DIF: E OBJ: 3 17. Supporters of the legal responsibility perspective include a “broad pattern of social direction” in the concept of public policy. ANS: T DIF: E OBJ: 3 18. An organization that is primarily focused on making a profit within the "rules of the game" subscribes to the economic perspective of social responsibility. ANS: T
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03 - Chapter 3SOCIAL RESPONSIBILITY AND ETHICS TRUE/FALSE...

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