Lessons 1-4 Flashcards
Business can do just about anything it wants because we do not live in a socially conscious environment
False
The business environment in current times, the first decade of the 21st century, can best be described as turbulent
True
When speaking of business in the collective sense, the textbook will most often be focusing on big business
True
Pluralism is a condition in which there is a concentration of power among society’s groups and organizations
False
Stakeholders are the owners of shares in a corporation
False
Business interacts with only a limited number of stakeholder groups
False
Affluence refers to the level of wealth, disposable income, and standard of living of a society
True
The common perception of business power is that there is too little of it to provide a balance with other social institutions
False
The social contract is the set of rights and duties imposed on citizens by their government
False
The principal internal stakeholders of a corporation are its customers and employees
False
In Carroll’s four-part definition of corporate social responsibility, ethical responsibilities are required of business by society
False
In practical terms, the socially responsible firm must be a good corporate citizen
False
The CSR Pyramid is a stakeholder model–that is, each of its components addresses different stakeholders
True
Arguments against corporate social responsibility tend to focus on the ethical category
False
Corporate social responsiveness is focused on the action phase of management response to social demands
True
In order to operate with a true stakeholder perspective, firms must accept the multiple bottom line view
True
To get a corporation to respond to its demands a stakeholder must hold all three attributes of power, legitimacy, and urgency
False
A major criticism of the stakeholder management approach is that it is extremely complex and time consuming
True
The key to effective stakeholder management is in its implementation
True
An interest or share in something is referred to as a(n) ownership position
False
Segments of business’s macroenvironment include all of the following except
a. the natural environment
b. the political environment
c. the economic environment
d. the social environment
the natural environment
The demographics, lifestyles, and social values of a society determine the firm’s
a. social environment
b. technological environment
c. political environment
d. economic environment
social environment
Decentralization and diversity of power concentrations leads to
a. anarchy
b. a totalitarian society
c. democracy
d. a pluralistic society
a pluralistic society
Strengths of pluralism include all of the following except
a. pursuit of self-interest
b. prevention of concentrations of power
c. maximization of freedom of expression
d. a built-in set of checks and balances
pursuit of self-interest
Which of the following is not a weakness of pluralism?
a. emphasis on conflict
b. pursuit of self-interest
c. overlapping goals, causing confusion about which groups best serve particular interests
d. prevention of concentrations of power
prevention of concentrations of power
The sheer numbers of relationships that business has with other segments of society indicate the ____ of its social environment.
a. complexity
b. simplicity
c. size
d. divisiveness
complexity
Which of the following is not a factor in the social environment that has led to the current climate of criticism of business?
a. the Christians’ work ethic
b. the revolution of rising expectations
c. affluence and education
d. an entitlement mentality
the Christians’ work ethic
The ability to produce an effect or influence a situation is known as
a. dictatorship
b. authority
c. abuse
d. power
power
CEOs such as Bill Gates of Microsoft or Carly Fiorina at Hewlett-Packard hold which level of power?
a. micro
b. intermediate
c. macro
d. individual
individual
Stakeholders include all of the following groups except
a. owners
b. customers
c. none of these
d. employees
none of these
The most important stakeholders of a business are typically its
a. government
b. owners
c. employees
d. consumers
consumers
Corporate social responsiveness emphasizes
a. socially responsible investing
b. outcomes and results
c. obligation and accountability
d. action and activity
action and activity
The concept of business responsibility that is based on concern for the various groups that are affected by a business is known as the
a. legal model
b. stakeholder model
c. ethical model
d. classical economic model
stakeholder model
Which of the following is not one of the responsibilities in Carroll’s four-part definition of corporate social responsibility?
a. philanthropic
b. legal
c. economic
d. social
social
The Triple Bottom Line concept focuses on economic, social, and environmental performance, the key elements of
a. corporate social responsibility
b. growth
c. sustainability
d. corporate social responsiveness
sustainability
The part of corporate social responsibility that focuses on fulfilling the social contract by following the law is ____
legal
The part of corporate social responsibility that focuses on fair prices and profits is ____.
economic
The part of corporate social responsibility that focuses on activities and practices that are expected by society, but not codified into law, is ___.
ethical
The part of corporate social responsibility that focuses on business’s voluntary activities which are not normally expected of a firm is ____.
philanthropic
_____ refers to issues of right and wrong, fairness, and justice.
ethics
The view of the firm that recognizes just suppliers and customers as stakeholders is the ____.
production
he view of the firm that recognizes suppliers, customers, employees, and owners as stakeholders is the ______.
managerial
The perceived validity or appropriateness of a stakeholder’s claim is referred to as ___.
legitimacy
The degree to which a stakeholder’s claim requires immediate response is its ____.
urgency
A stakeholder’s ability or capacity to produce an effect within the firm is called its ____.
power
