Question 1

Explain the relevance of the concept of a promissory relationship to the debate over corporate social responsibility.

Accepted Answer

The concept of a promissory relationship is highly relevant to the debate over corporate social responsibility (CSR) because it highlights the ethical and moral obligations that corporations have towards their stakeholders. A promissory relationship implies that one party has made a promise or commitment to another, and as a result, they have a duty to fulfill that promise.

In the context of CSR, corporations have a promissory relationship with various stakeholders, including employees, customers, suppliers, and the community at large. These stakeholders rely on the corporation to act in a socially responsible manner, and in doing so, the corporation is essentially making a promise to uphold certain ethical standards and contribute positively to society.

The debate over CSR often revolves around whether corporations have a moral obligation to go beyond simply maximizing profits and consider the impact of their actions on society and the environment. Proponents of CSR argue that corporations have a promissory relationship with their stakeholders and therefore have a duty to act in a socially responsible manner. This includes considerations such as ethical business practices, environmental sustainability, and social impact.

On the other hand, critics of CSR may argue that corporations are primarily responsible for generating profits for their shareholders and that any additional social or environmental initiatives are not a part of their core obligations. However, the concept of a promissory relationship challenges this perspective by emphasizing the moral and ethical commitments that corporations have towards their stakeholders.

Ultimately, the concept of a promissory relationship adds an important ethical dimension to the debate over CSR, highlighting the responsibilities that corporations have towards their stakeholders and the broader society. It underscores the idea that corporations have a duty to fulfill their promises to act in a socially responsible manner, and that this should be a fundamental consideration in discussions about corporate social responsibility.

Question 2

Recent studies have shown that neither corporate moral codes nor corporate culture affect whether individuals inside the corporation behave morally or immorally.

Accepted Answer

A) True 
 B)False  False

Question 3

The narrow view of corporate social responsibility argues companies must make money within the "rules of the game" which rules out all of the following except for:

Accepted Answer

A)  deception. 
B)  harm. 
C)  force. 
D)  fraud. 
A)  deception. 
B)  harm. 
C)  force. 
D)  fraud. B

Question 4

According to Keith Davis, in addition to considering potential profitability, a business must weigh the long-range social costs of its activities as well. Only if the overall benefit to society is positive should business act.

Accepted Answer

A) True 
 B)False

Question 5

Externalities are the intended negative (or in some cases positive) consequences that two parties purposefully impose on an external third party.

Accepted Answer

A) True 
 B)False

Question 6

According to John Kenneth Galbraith, business's social role is purely economic and corporations should not be considered moral agents.

Accepted Answer

A) True 
 B)False

Question 7

A common point of contention about corporations is

Accepted Answer

A)  corporate punishment is no different from individual punishment. 
B)  modern corporations no longer utilize a CID structure. 
C)  philosophers and business theorists disagree whether corporations are moral agents. 
D)  if corporations are moral agents, then this relieves individual human beings of any moral responsibility. 
A)  corporate punishment is no different from individual punishment. 
B)  modern corporations no longer utilize a CID structure. 
C)  philosophers and business theorists disagree whether corporations are moral agents. 
D)  if corporations are moral agents, then this relieves individual human beings of any moral responsibility.

Question 8

The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

Accepted Answer

A) True 
 B)False

Question 9

Corporate internal decision (CID) structures amount to established procedures for accomplishing specific goals.

Accepted Answer

A) True 
 B)False

Question 10

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

Accepted Answer

The question of whether Levi Strauss is

Question 11

One of the three important "limits to what the law can do" discussed by Christopher Stone is

Accepted Answer

A)  laws are passed before there is any real problem to worry about. 
B)  consumers don't want further legal regulation. 
C)  designing effective regulations is difficult. 
D)  regulators are often "bought off" by corporations. 
A)  laws are passed before there is any real problem to worry about. 
B)  consumers don't want further legal regulation. 
C)  designing effective regulations is difficult. 
D)  regulators are often "bought off" by corporations.

Question 12

In his essay "Social Responsibility and Economic Efficiency," Kenneth Arrow has argued that ethical behavior in the business world comes only at the expense of economic efficiency.

Accepted Answer

A) True 
 B)False

Question 13

Legally a corporation is a thing that can endure beyond the natural lives of its members and that has incorporators who may sue and be sued as a unit and who are able to consign part of their property to the corporation for ventures of limited liability.

Accepted Answer

A) True 
 B)False

Question 14

Kenneth Arrow argues that

Accepted Answer

A)  settled economic life requires purely selfish behavior. 
B)  with ethical codes, there's no need for taxes, laws, or regulations as a way of controlling corporate behavior. 
C)  ethical codes can contribute to economic efficiency. 
D)  to be viable, ethical codes need not be widely accepted or part of corporate culture. 
A)  settled economic life requires purely selfish behavior. 
B)  with ethical codes, there's no need for taxes, laws, or regulations as a way of controlling corporate behavior. 
C)  ethical codes can contribute to economic efficiency. 
D)  to be viable, ethical codes need not be widely accepted or part of corporate culture.

Question 15

Milton Friedman's perspective is that the only responsibility of a business is to

Accepted Answer

A)  provide social benefit for the messes. 
B)  give jobs to the hard workers. 
C)  pay taxes to keep the government operating. 
D)  make money for its owners. 
A)  provide social benefit for the messes. 
B)  give jobs to the hard workers. 
C)  pay taxes to keep the government operating. 
D)  make money for its owners.

Question 16

The courts and the general public find corporate responsibility

Accepted Answer

A)  useful and intelligible. 
B)  contradicting. 
C)  ambiguous and useless. 
D)  a waste of time. 
A)  useful and intelligible. 
B)  contradicting. 
C)  ambiguous and useless. 
D)  a waste of time.

Question 17

The business-can't-handle-it argument is an argument in favor of a broad view of corporate responsibility.

Accepted Answer

A) True 
 B)False

Question 18

What is a corporation (or limited-liability company) and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?

Accepted Answer

A corporation, also known as a limited-l

Question 19

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

Accepted Answer

A)  there is an imbalance of knowledge between buyer and seller. 
B)  business would be an "inept custodian" of public values. 
C)  firms are unwilling or simply refuse to maximize profits. 
D)  corporate culture promotes dysfunctional social relations. 
A)  there is an imbalance of knowledge between buyer and seller. 
B)  business would be an "inept custodian" of public values. 
C)  firms are unwilling or simply refuse to maximize profits. 
D)  corporate culture promotes dysfunctional social relations.

Question 20

In the corporate world, the board of directors will

Accepted Answer

A)  rubber stamp the policies and recommendations of the management. 
B)  write the policies and procedures. 
C)  be there just for show. 
D)  hire and fire people for key management positions. 
A)  rubber stamp the policies and recommendations of the management. 
B)  write the policies and procedures. 
C)  be there just for show. 
D)  hire and fire people for key management positions.

Explain the relevance of the concept of a promissory relationship to the debate over corporate social responsibility.

Recent studies have shown that neither corporate moral codes nor corporate culture affect whether individuals inside the corporation behave morally or immorally.

The narrow view of corporate social responsibility argues companies must make money within the "rules of the game" which rules out all of the following except for:

According to Keith Davis, in addition to considering potential profitability, a business must weigh the long-range social costs of its activities as well. Only if the overall benefit to society is positive should business act.

Externalities are the intended negative (or in some cases positive) consequences that two parties purposefully impose on an external third party.

According to John Kenneth Galbraith, business's social role is purely economic and corporations should not be considered moral agents.

A common point of contention about corporations is

The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

Corporate internal decision (CID) structures amount to established procedures for accomplishing specific goals.

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

One of the three important "limits to what the law can do" discussed by Christopher Stone is

In his essay "Social Responsibility and Economic Efficiency," Kenneth Arrow has argued that ethical behavior in the business world comes only at the expense of economic efficiency.

Legally a corporation is a thing that can endure beyond the natural lives of its members and that has incorporators who may sue and be sued as a unit and who are able to consign part of their property to the corporation for ventures of limited liability.

Kenneth Arrow argues that

Milton Friedman's perspective is that the only responsibility of a business is to

The courts and the general public find corporate responsibility

The business-can't-handle-it argument is an argument in favor of a broad view of corporate responsibility.

What is a corporation (or limited-liability company) and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

In the corporate world, the board of directors will

The Nature of Morality

Normative Theories of Ethics

Justice and Economic Distribution

The Nature of Capitalism

Consumers

The Environment

The Workplace Basic Issues

The Workplace Todays Challenges

Moral Choices Facing Employees

Job Discrimination

Filters

Exam 5: Corporations

Explain the relevance of the concept of a promissory relationship to the debate over corporate social responsibility.

Recent studies have shown that neither corporate moral codes nor corporate culture affect whether individuals inside the corporation behave morally or immorally.

The narrow view of corporate social responsibility argues companies must make money within the "rules of the game" which rules out all of the following except for:

According to Keith Davis, in addition to considering potential profitability, a business must weigh the long-range social costs of its activities as well. Only if the overall benefit to society is positive should business act.

Externalities are the intended negative (or in some cases positive) consequences that two parties purposefully impose on an external third party.

According to John Kenneth Galbraith, business's social role is purely economic and corporations should not be considered moral agents.

A common point of contention about corporations is

The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

Corporate internal decision (CID) structures amount to established procedures for accomplishing specific goals.

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

One of the three important "limits to what the law can do" discussed by Christopher Stone is

In his essay "Social Responsibility and Economic Efficiency," Kenneth Arrow has argued that ethical behavior in the business world comes only at the expense of economic efficiency.

Legally a corporation is a thing that can endure beyond the natural lives of its members and that has incorporators who may sue and be sued as a unit and who are able to consign part of their property to the corporation for ventures of limited liability.

Kenneth Arrow argues that

Milton Friedman's perspective is that the only responsibility of a business is to

The courts and the general public find corporate responsibility

The business-can't-handle-it argument is an argument in favor of a broad view of corporate responsibility.

What is a corporation (or limited-liability company) and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

In the corporate world, the board of directors will

The Nature of Morality

Normative Theories of Ethics

Justice and Economic Distribution

The Nature of Capitalism

Consumers

The Environment

The Workplace Basic Issues

The Workplace Todays Challenges

Moral Choices Facing Employees

Job Discrimination

Filters