Chapter 6 I.

Question 1

The concept of CSR is relatively a new one. The phrase has only been in wide use since the

Answer 1

1960s

Question 2

18th century

Answer 2

Adam Smith, classical model of business

Question 3

more efficient production of goods and services

Answer 3

The industrial revolution

Question 4

Beginning of 20th century

Answer 4

Backlash against large corporations, social groups and labor movements

Question 5

Between 1900 and 1960

Answer 5

the business world to accept responsibilities other than making a profit and obeying the law.

Question 6

1960s and 1970s

Answer 6

the civil rights movement, consumerism, and environmentalism affected society’s expectations of business.

Question 7

is the long-term vow of business to perform within the bounds of ethics and to contribute to economic advancement

Answer 7

CSR

Question 8

“the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time”

Answer 8

Corporate social responsibility (CSR)

Question 9

means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors.

Answer 9

The concept of CSR

Question 10

is the integration of social and environmental concerns –in business operations and interaction with stakeholders—on a voluntary basis.

Answer 10

CSR

Question 11

refers to a company linking itself with ethical values, transparency, employee relations, compliance with legal requirements and overall respect for the communities in which they operate.

Answer 11

CSR

Question 12

based on Milton Friedman, who argued that the primary responsibility of business is to make a profit for its owners, provided it is complying with law. If the free market cannot solve a social problem, the government, not business, should solve it.

Answer 12

Economic Argument

Question 13

addressing social issues will be a cost to a business. If business will bear the costs of socially responsible actions, they will hurt their competitive position relative to other businesses.

Answer 13

Competitive Argument

Question 14

business are ill-equipped to address social problems. It suggests that business executives and managers are typically well trained in the ways of finance, marketing, and operations management, but not well versed in dealing with complex societal problems.

Answer 14

Capability argument

Question 15

a long-term perspective that suggests corporations should conduct themselves in such a way in the present so as to assure themselves of a favorable operating environment in the future. This view holds that investments in society today will reap them benefits tomorrow.

Answer 15

self-interest argument