Ethics Chapter 3

2 September 2022
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Corporate power refers to:
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The capability of corporations to influence government, the economy, and society, based on their organizational resources.
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The iron law of responsibility says that:
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In the long run, those who do not use power responsibly will lose it.
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Which of the following statements is true about corporate social responsibility?
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economic growth
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Corporate social responsibility (CSR) means that a corporation should:
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be held accountable for any of its actions that affect people, their communities, and their environment
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Which of the following companies is being the most socially responsible?
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A company trying its best to operate in a way which will help local students get education and jobs.
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Modern corporations should be socially responsible because they:
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create jobs, influencing the lives of their employees
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Business leaders, like automaker Henry Ford developed these programs to support the recreational and health needs of their employees
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paternalistic programs
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Executive conscience, acts of charity, and philanthropic funding are examples of:
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Corporate social stewardship
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philanthropic funding and public relations are two examples of corporate social responsibility:
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Policy instruments of the Corporate Social Stewardship phase
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Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:
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Corporate/Global Citizenship
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Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility?
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Religious/ethnic beliefs
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All of the following are examples of the phases of Corporate Social Responsibility except
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corporate charity principle
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Which of the following examples does not show a company guided by enlightened self-interest?
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A company breaking past records by maximizing quarterly profits
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Scholars have found:
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A positive association between social and financial performance
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When undertaking social initiatives, a company:
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May sacrifice short-term profits
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A company who complies with the laws and regulations set by the government is:
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Meeting the minimum level of social responsibility expected by the public
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Which of the following is an argument in favor of corporate social responsibility?
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discourages government regulation
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According to Barlow v. A.P. Smith Manufacturing:
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Socially responsible actions are in investment in the future, thus an allowable expense
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Positive reputation can be valued as an intangible corporate
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Asset
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The costs of corporate social responsibility may ultimately be passed on to the:
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Consumer through high prices
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Which of the following is an argument against corporate social responsibility?
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Requires skills businesses may lack.
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A social enterprise
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adopts social benefits as its core mission
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When a person or group of people identify a social need and use their entrepreneurial skills to address this need, this process is called:
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Social entrepreneurship
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As of 2012, the B Corporation status has been legally recognized in how many states?
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seven states
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When businesses bring products and services to the many people in the world who have traditionally been beyond the reach of global commerce, they are said to be:
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Serving the bottom of the pyramid.
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Grameen Bank in Bangladesh is one of the most recognized:
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microfinance institutions
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This occurs when financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers) who traditionally lacked access to banking or related services.
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Micro financing