Unit 5 - Social Responsibility of Business

Question 1

Greed without desire for what money can buy, but rather a brainwashed sense that one ought to maximize income, not to obtain any particular luxury, but simply as an unquestioned goal.

Answer 1

Abstract greed.

Question 2

__________is the tendency of people in large organizations to abdicate responsibility and simply go along with those in charge. The name comes from the Nazi bureaucrat who engineered the Holocaust, and later claimed that he was just doing his duty.

Answer 2

Eichmannism

Question 3

The more we consciously seek happiness, the less likely we are to achieve it. Rather happiness is a by-product of worthwhile activities and fulfilling personal relationships. Do things that you enjoy and value, achieve your goals, and happiness will follow.

Answer 3

Hedonistic paradox

Question 4

The ____________ is a perfect formulation of Eichmannism.

Answer 4

Loyal Agent’s Argument

Question 5

The more we single-mindedly focus on obtaining profits, the less likely we are the achieve them.

Answer 5

Profit-seeking paradox

Question 6

__________ insists that managers have a responsibility to all those who have a stake in the company.

Answer 6

Stakeholder theory

Question 7

List the 6 groups of stakeholders.

Answer 7

Owners
Managers
Employees
Customers
Suppliers
The Local Community

Question 8

The view that managers only have an ethical responsibility to the owners of the company.

Answer 8

Stockholder theory

Question 9

__________ is the notion that the one and only purpose of business is to make as much money as possible

Answer 9

Friedmanism