Question 1

The corporate citizenship theory of social responsibility argues that businesses have the responsibility to do good for society.

Accepted Answer

A) True 
 B)False  True

Question 2

Compare and contrast the views held by Milton Friedman regarding the ethical responsibility of a corporate business to that of someone following the stakeholder interest theory of social responsibility.

Accepted Answer

Milton Friedman asserted that in a free society,"There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits as long as it stays within the rules of the game." To Friedman,following the "rules of the game" meant engaging in open and free competition without deception and fraud.Someone who follows the stakeholder interest theory of social responsibility would say that,although a corporation does have an obligation to its shareholders,there are also others to whom the corporation or business owes an obligation.These others include employees,customers,suppliers,creditors,and the local community.

Question 3

Under Rawls's social justice theory,the least advantaged in society must receive special assistance to allow them to realize their potential.

Accepted Answer

A) True 
 B)False  True

Question 4

Assume that a drug company has recently developed a new weight-loss drug that is available only by doctor's prescription.This drug has some significant side effects,but is quite effective for helping individuals lose weight.The drug is being heavily advertised directly to the public,resulting in large numbers of individuals contacting their doctors in order to get a prescription for the drug.Because of the side effects,this drug is intended only for persons who are severely overweight.Some of the advertising for this drug emphasizes the happiness and beauty that can result when one is slender,leading many doctors to over prescribe the drug.Discuss the drug company's actions in light of the theories of the social responsibility of business.

Accepted Answer

The company's actions are presumably aim

Question 5

Under the moral minimum theory of the social responsibility of business,it is acceptable for a business to injure others so long as the business has caused minimal injury.

Accepted Answer

A) True 
 B)False

Question 6

John Locke and Jean-Jacques Rousseau both proposed a social contract theory of morality under which each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony.

Accepted Answer

A) True 
 B)False

Question 7

A business that is concerned solely with the financial implications of alternate courses of action is applying which theory of the social responsibility of business?

Accepted Answer

A)  moral minimum 
B)  maximizing profits 
C)  stakeholder interest 
D)  corporate citizenship 
A)  moral minimum 
B)  maximizing profits 
C)  stakeholder interest 
D)  corporate citizenship

Question 8

Someone who believes that moral decisions should be made such that the greatest amount of good in total results from the actions believes in which moral theory?

Accepted Answer

A)  ethical relativism 
B)  utilitarianism 
C)  ethical fundamentalism 
D)  Kantian ethics 
E)  Rawls's distributive justice theory 
A)  ethical relativism 
B)  utilitarianism 
C)  ethical fundamentalism 
D)  Kantian ethics 
E)  Rawls's distributive justice theory

Question 9

Someone who makes moral decisions based on the guidance of an outside source,such as another person,is applying which moral theory?

Accepted Answer

A)  ethical relativism 
B)  utilitarianism 
C)  ethical fundamentalism 
D)  Kantian ethics 
E)  Rawls's distributive justice theory. 
A)  ethical relativism 
B)  utilitarianism 
C)  ethical fundamentalism 
D)  Kantian ethics 
E)  Rawls's distributive justice theory.

Question 10

The increasing use of the Internet and computers generally has made it much easier for businesses to gather,process,and distribute information about its customers,as well those who are not customers.In the context of ethical obligations,should business be able to gather and sell this information?

Accepted Answer

This widespread practice raises question

Question 11

Social audits have recently become mandatory for publicly traded corporations.

Accepted Answer

A) True 
 B)False

Question 12

The theory of business social responsibility that holds that a business owes duties to the various constituencies,such as customers and employees,in addition to the shareholders is:

Accepted Answer

A)  the moral minimum theory 
B)  the maximizing profits theory 
C)  the stakeholder interest theory 
D)  the corporate citizenship theory 
A)  the moral minimum theory 
B)  the maximizing profits theory 
C)  the stakeholder interest theory 
D)  the corporate citizenship theory

Question 13

All ethical standards have been enacted as law.

Accepted Answer

A) True 
 B)False

Question 14

The moral theory of ethical fundamentalism can best be characterized by:

Accepted Answer

A)  the consultation of an outside source,such as a book or person,for ethical guidance 
B)  the belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society 
C)  the belief that a person must decide what course of action is proper based on that person's own set of beliefs or feelings 
D)  determining which course of action produces the greatest amount of good for the greatest number of people 
E)  a set of universal rules based on reasoning that must be applied in all situations and is characterized by reversibility 
A)  the consultation of an outside source,such as a book or person,for ethical guidance 
B)  the belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society 
C)  the belief that a person must decide what course of action is proper based on that person's own set of beliefs or feelings 
D)  determining which course of action produces the greatest amount of good for the greatest number of people 
E)  a set of universal rules based on reasoning that must be applied in all situations and is characterized by reversibility

Question 15

A company is planning to promote its services heavily via telemarketing.The company has learned that the majority of those to be called are strongly opposed to receiving telemarketing calls.In addition,many of the persons who will be called are elderly who might decide to purchase the product even though they do not really need it or cannot afford it.Discuss the appropriateness of proceeding with this plan under the different theories of the social responsibility of business.

Accepted Answer

The telemarketing plan is presumably aim

Question 16

OSHA has promulgated regulations requiring employers to provide a certain baseline level of breathing protection to employees.Your company is quite successful,and you can afford to provide a level of breathing protection that exceeds OSHA requirements.Should you?

Accepted Answer

A)  The company has a regulatory and ethical obligation to provide the highest level of protection possible if it can afford it. 
B)  The company has a regulatory requirement to buy the best equipment available,but not an ethical requirement. 
C)  The company does not have a regulatory requirement,but does have an ethical obligation. 
D)  The company has neither a regulatory nor ethical requirement to provide the best equipment available. 
A)  The company has a regulatory and ethical obligation to provide the highest level of protection possible if it can afford it. 
B)  The company has a regulatory requirement to buy the best equipment available,but not an ethical requirement. 
C)  The company does not have a regulatory requirement,but does have an ethical obligation. 
D)  The company has neither a regulatory nor ethical requirement to provide the best equipment available.

Question 17

A business that is willing to sacrifice some income in order to avoid harm to others is applying which theory of the social responsibility of business?

Accepted Answer

A)  moral minimum 
B)  maximizing profits 
C)  stakeholder interest 
D)  corporate citizenship 
A)  moral minimum 
B)  maximizing profits 
C)  stakeholder interest 
D)  corporate citizenship

Question 18

Which of the following statements is true regarding the relationship of law and ethics?

Accepted Answer

A)  The legal requirements will almost always be the same as the ethical requirements because the law is based on the ethical standards. 
B)  In some cases ethics will require a higher standard of conduct than the law,but never vice versa. 
C)  In some cases the law will require a higher standard of conduct than ethics,but never vice versa. 
D)  Depending on the circumstances,the law can require a higher,lower,or the same standard of conduct as ethics demands. 
A)  The legal requirements will almost always be the same as the ethical requirements because the law is based on the ethical standards. 
B)  In some cases ethics will require a higher standard of conduct than the law,but never vice versa. 
C)  In some cases the law will require a higher standard of conduct than ethics,but never vice versa. 
D)  Depending on the circumstances,the law can require a higher,lower,or the same standard of conduct as ethics demands.

Question 19

A criticism of the stakeholder interest theory of the social responsibility of business is that it is often impossible to determine how the interests of the different stakeholders should be balanced.

Accepted Answer

A) True 
 B)False

Question 20

The theory of business social responsibility that holds that the obligation of a business is to earn a profit while not harming others,but if it does cause harm,it must compensate the victims for the harms caused,is:

Accepted Answer

A)  the moral minimum theory 
B)  the maximizing profits theory 
C)  the stakeholder interest theory 
D)  the corporate citizenship theory 
A)  the moral minimum theory 
B)  the maximizing profits theory 
C)  the stakeholder interest theory 
D)  the corporate citizenship theory

Exam 42: Ethics and Social Responsibility of Business

The corporate citizenship theory of social responsibility argues that businesses have the responsibility to do good for society.

Compare and contrast the views held by Milton Friedman regarding the ethical responsibility of a corporate business to that of someone following the stakeholder interest theory of social responsibility.

Under Rawls's social justice theory,the least advantaged in society must receive special assistance to allow them to realize their potential.

Under the moral minimum theory of the social responsibility of business,it is acceptable for a business to injure others so long as the business has caused minimal injury.

John Locke and Jean-Jacques Rousseau both proposed a social contract theory of morality under which each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony.

A business that is concerned solely with the financial implications of alternate courses of action is applying which theory of the social responsibility of business?

Someone who believes that moral decisions should be made such that the greatest amount of good in total results from the actions believes in which moral theory?

Someone who makes moral decisions based on the guidance of an outside source,such as another person,is applying which moral theory?

The increasing use of the Internet and computers generally has made it much easier for businesses to gather,process,and distribute information about its customers,as well those who are not customers.In the context of ethical obligations,should business be able to gather and sell this information?

Social audits have recently become mandatory for publicly traded corporations.

The theory of business social responsibility that holds that a business owes duties to the various constituencies,such as customers and employees,in addition to the shareholders is:

All ethical standards have been enacted as law.

The moral theory of ethical fundamentalism can best be characterized by:

OSHA has promulgated regulations requiring employers to provide a certain baseline level of breathing protection to employees.Your company is quite successful,and you can afford to provide a level of breathing protection that exceeds OSHA requirements.Should you?

A business that is willing to sacrifice some income in order to avoid harm to others is applying which theory of the social responsibility of business?

Which of the following statements is true regarding the relationship of law and ethics?

A criticism of the stakeholder interest theory of the social responsibility of business is that it is often impossible to determine how the interests of the different stakeholders should be balanced.

The theory of business social responsibility that holds that the obligation of a business is to earn a profit while not harming others,but if it does cause harm,it must compensate the victims for the harms caused,is:

Legal Heritage and the Information Age

Court Systems and Jurisdiction

Judicial, Alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Strict Liability and Product Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Internet Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Sales and Lease Warranties

Creation of Negotiable Instruments

Transferability and Holder In Due Course

Liability,Defenses and Discharge

Checks, the Banking System, and E-Money

Creditor's and Debtor's Rights

Secured Transactions and Electronic Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment,Worker Protection,and Immigration Laws

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Businesses, Entrepreneurs, and General Partnerships

Limited Partnerships and Limited Liability Limited Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Business

Investor Protection and Online Securities Transactions

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection and Global Warming

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord Tenant Law and Land Use Regulation

Insurance

Accountants' Liability

Wills, Trusts, and Elder Law

Family Law

International and World Trade Law

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