ch 4 Virtue, Justice, and Social Responsibility

Question 1

Corporate Social Responsibility (CSR)

Answer 1

set of actions that appear to serve some social good beyond the interest of the firm and that which is required by law

Question 2

Shareholder theory

Answer 2

a corporations sole duty is to maximize the welfare of its stockholders

Question 3

Stakeholder theory

Answer 3

a corporation owes a broad set of duties to the various constituents that it affects

Question 4

Benchmarks for evaluating corporate citizenship in CSR

Answer 4

Environmental sustainability- use of renewable energy, clean water, reduce air pollution, recycling

Respect for human rights- humane working conditions and diverse cultures

Employment practices that encourage workplace safety, job security, and opportunity for advancement

Community involvement through investment in arts and education

Ethical business practices that enhance customer privacy