Lessons 1-4

Question 1

Business can do just about anything it wants because we do not live in a socially conscious environment

Answer 1

False

Question 2

The business environment in current times, the first decade of the 21st century, can best be described as turbulent

Answer 2

True

Question 3

When speaking of business in the collective sense, the textbook will most often be focusing on big business

Answer 3

True

Question 4

Pluralism is a condition in which there is a concentration of power among society’s groups and organizations

Answer 4

False

Question 5

Stakeholders are the owners of shares in a corporation

Answer 5

False

Question 6

Business interacts with only a limited number of stakeholder groups

Answer 6

False

Question 7

Affluence refers to the level of wealth, disposable income, and standard of living of a society

Answer 7

True

Question 8

The common perception of business power is that there is too little of it to provide a balance with other social institutions

Answer 8

False

Question 9

The social contract is the set of rights and duties imposed on citizens by their government

Answer 9

False

Question 10

The principal internal stakeholders of a corporation are its customers and employees

Answer 10

False

Question 11

In Carroll’s four-part definition of corporate social responsibility, ethical responsibilities are required of business by society

Answer 11

False

Question 12

In practical terms, the socially responsible firm must be a good corporate citizen

Answer 12

False

Question 13

The CSR Pyramid is a stakeholder model–that is, each of its components addresses different stakeholders

Answer 13

True

Question 14

Arguments against corporate social responsibility tend to focus on the ethical category

Answer 14

False

Question 15

Corporate social responsiveness is focused on the action phase of management response to social demands

Answer 15

True

Question 16

In order to operate with a true stakeholder perspective, firms must accept the multiple bottom line view

Answer 16

True

Question 17

To get a corporation to respond to its demands a stakeholder must hold all three attributes of power, legitimacy, and urgency

Answer 17

False

Question 18

A major criticism of the stakeholder management approach is that it is extremely complex and time consuming

Answer 18

True

Question 19

The key to effective stakeholder management is in its implementation

Answer 19

True

Question 20

An interest or share in something is referred to as a(n) ownership position

Answer 20

False

Question 21

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

Answer 21

the natural environment

Question 22

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

Answer 22

social environment

Question 23

Decentralization and diversity of power concentrations leads to

a. anarchy
b. a totalitarian society
c. democracy
d. a pluralistic society

Answer 23

a pluralistic society

Question 24

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

Answer 24

pursuit of self-interest

Question 25

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

Answer 25

prevention of concentrations of power

Question 26

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

Answer 26

complexity

Question 27

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

Answer 27

the Christians’ work ethic

Question 28

The ability to produce an effect or influence a situation is known as

a. dictatorship
b. authority
c. abuse
d. power

Answer 28

power

Question 29

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

Answer 29

individual

Question 30

Stakeholders include all of the following groups except

a. owners
b. customers
c. none of these
d. employees

Answer 30

none of these

Question 31

The most important stakeholders of a business are typically its

a. government
b. owners
c. employees
d. consumers

Answer 31

consumers

Question 32

Corporate social responsiveness emphasizes

a. socially responsible investing
b. outcomes and results
c. obligation and accountability
d. action and activity

Answer 32

action and activity

Question 33

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

Answer 33

stakeholder model

Question 34

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

Answer 34

social

Question 35

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

Answer 35

sustainability

Question 36

The part of corporate social responsibility that focuses on fulfilling the social contract by following the law is ____

Answer 36

legal

Question 37

The part of corporate social responsibility that focuses on fair prices and profits is ____.

Answer 37

economic

Question 38

The part of corporate social responsibility that focuses on activities and practices that are expected by society, but not codified into law, is ___.

Answer 38

ethical

Question 39

The part of corporate social responsibility that focuses on business’s voluntary activities which are not normally expected of a firm is ____.

Answer 39

philanthropic

Question 40

_____ refers to issues of right and wrong, fairness, and justice.

Answer 40

ethics

Question 41

The view of the firm that recognizes just suppliers and customers as stakeholders is the ____.

Answer 41

production

Question 42

he view of the firm that recognizes suppliers, customers, employees, and owners as stakeholders is the ______.

Answer 42

managerial

Question 43

The perceived validity or appropriateness of a stakeholder’s claim is referred to as ___.

Answer 43

legitimacy

Question 44

The degree to which a stakeholder’s claim requires immediate response is its ____.

Answer 44

urgency

Question 45

A stakeholder’s ability or capacity to produce an effect within the firm is called its ____.

Answer 45

power