Chapter 2—Being Ethical and Socially Responsible essay



Download 0.99 Mb.
Page4/6
Date09.08.2018
Size0.99 Mb.
1   2   3   4   5   6

ANS: D PTS: 1 DIF: Difficult REF: p. 47

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


83. Harold Finn III and his son, father, and grandfather gathered last week to compare notes on their business. Harold's grandfather started the business in 1928. His father became active in 1947, Harold in 1965, and his son in 1983. During their conversations, they discovered that many things about the past were similar to conditions today, although others were quite different. For example, after the 1930s

a.

government protection of workers and consumers increased.

b.

working conditions were often deplorable by today's standards.

c.

there was a period of laissez-faire business conditions.

d.

the average work week under the law once exceeded fifty hours.

e.

businesses were free to operate pretty much as they chose.

ANS: A PTS: 1 DIF: Difficult REF: p. 47-48

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


84. Early government regulations that affected American business include all of the following except the

a.

Interstate Commerce Act.

b.

Sherman Antitrust Act.

c.

Federal Trade Commission Act.

d.

Clayton Antitrust Act.

e.

Americans with Disabilities Act.

ANS: E PTS: 1 DIF: Moderate REF: p. 48

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


85. Which president led the way in creating programs to improve the working and social conditions in the United States in the 1930s?

a.

Teddy Roosevelt

b.

Calvin Coolidge

c.

Franklin Roosevelt

d.

Woodrow Wilson

e.

Herbert Hoover

ANS: C PTS: 1 DIF: Easy REF: p. 48

OBJ: 2-5 NAT: AACSB: Analytic

TOP: The Evolution of Social Responsibility in Business


86. What led most directly to increased government involvement with regulating business and its dealings with society?

a.

the Industrial Revolution

b.

president Kennedy's consumer bill of rights

c.

the collapse of the oil industry

d.

the Great Depression

e.

the end of World War I

ANS: D PTS: 1 DIF: Easy REF: p. 48

OBJ: 2-5 NAT: AACSB: Ethics

TOP: The Evolution of Social Responsibility in Business


87. With who does social responsibility of business have to begin?

a.

government

b.

management

c.

consumers

d.

consumer protection groups

e.

society

ANS: B PTS: 1 DIF: Easy REF: p. 48

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


88. The economic model of social responsibility was developed in a period when the primary concern of firms was

a.

long-term success and profitability.

b.

improving the quality of life.

c.

short-run profits and survival.

d.

complete customer satisfaction and expansion.

e.

having safe and satisfied employees.

ANS: C PTS: 1 DIF: Moderate REF: p. 48

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


89. The manager of a large chain recently spoke to a group of college students about making it in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In doing so, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in stockholders' interests. What concept do the manager's comments reveal?

a.

the socioeconomic model of social responsibility

b.

the economic model of social responsibility

c.

the strictest model of social responsibility

d.

consumerism

e.

the rights of employees

ANS: B PTS: 1 DIF: Difficult REF: p. 48-49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


90. The manager of a successful local restaurant believes his responsibilities are to provide delicious meals and excellent service, provide jobs, comply with laws and the IRS, and earn a respectable profit on the restaurant. These are the manager's only concerns. What concept does this indicate?

a.

Socialism

b.

the economic model of social responsibility

c.

the socioeconomic model of social responsibility

d.

consumer protectionism

e.

a lack of social responsibility

ANS: B PTS: 1 DIF: Difficult REF: p. 48-49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


91. "We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. This manager's comments reveal what concept?

a.

the socioeconomic model of social responsibility

b.

the economic model of social responsibility

c.

the strictest model of social responsibility

d.

the need to preserve management rights

e.

consumerism

ANS: B PTS: 1 DIF: Difficult REF: p. 48-49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


92. By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth maximization. The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments?

a.

Corporate resources should be devoted to maximizing profits, not to solving society's problems.

b.

Individual businesses should not be responsible for solving problems that affect all of society.

c.

Socially responsible actions by business firms increase the role of government in business.

d.

Businesses are ill-equipped to handle today's complex social issues.

e.

Social responsibility promotes environmental stability and long-run profitability.

ANS: E PTS: 1 DIF: Difficult REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


93. Roger, a bank manager, holds the economic model of social responsibility view. What is he most likely to say about the connection between taxes and social responsibility?

a.

Because he is a responsible man, he pays his taxes and does not try to cheat the IRS.

b.

Although taxes contribute to social welfare, it is only the beginning of his bank's responsibility to society.

c.

Taxes are a required evil from which he sees very little benefit in his community.

d.

By making a profit and paying taxes that meet the needs of society, Roger has fulfilled his social responsibility.

e.

It is better to make a small profit and therefore pay less taxes than to contribute to social responsibility.

ANS: D PTS: 1 DIF: Difficult REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


94. Joe, a restaurant supplies and equipment business manager, believes in the economic model of social responsibility. Which of the following would most likely be a quote from Joe in relation to social responsibility?

a.

"What a waste of time for everyone!"

b.

"I fully support it."

c.

"That is someone else's job."

d.

"It's expensive, but worth it."

e.

"Not in my line of work."

ANS: C PTS: 1 DIF: Difficult REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


95. Long-distance providers are becoming increasingly concerned about certain activities within their industry. Various companies come together voluntarily to implement new standards of social responsibility that members must abide by. What seems to be the primary motivation in this case for an increased interest in social responsibility?

a.

Because corporations are creations of society, they are responsible for giving back to the communities in which they operate.

b.

These companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.

c.

These companies are using social responsibility as a means to increase their profitability, both in the short term and long term.

d.

Long-distance providers have started taking pride in their industry and its record for social responsibility.

e.

They feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.

ANS: B PTS: 1 DIF: Difficult REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


96. Which of the following is an argument for increased social responsibilities?

a.

Because business is part of our society, it cannot ignore social issues.

b.

Management must be concerned with providing a return on owners' investments.

c.

Corporate time and money should be used to maximize profits.

d.

Individual businesses should not be expected to solve society's problems.

e.

Social issues are the responsibility of government officials.

ANS: A PTS: 1 DIF: Easy REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


97. "We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. What persuasive argument would you use to influence this manager to become more socially responsive?

a.

Business has the technical, financial, and managerial resources needed to tackle today's complex economic issues.

b.

Social problems affect society in general, so individual businesses probably should not be expected to solve these problems.

c.

By helping to solve social issues, business can create a more stable environment for long-term profitability.

d.

Socially responsible decision making by business firms will not prevent increased government intervention, which only forces businesses to do what they fail to do voluntarily.

e.

Corporate time, money, and talent should be used to maximize profits, not to solve society's problems.

ANS: C PTS: 1 DIF: Difficult REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


98. The socioeconomic model of social responsibility

a.

holds that society will benefit most when business is left alone to produce and market profitable products.

b.

emphasizes that social responsibility is someone else's responsibility.

c.

holds that a firm is legally obligated to act in the economic interests of its stockholders.

d.

states that managers who concentrate on profit indirectly fulfill their social responsibilities.

e.

emphasizes profits as well as the effect of business decisions on society.

ANS: E PTS: 1 DIF: Easy REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


99. All of the following are arguments against increased social responsibility except

a.

“social issues are the responsibility of government officials elected for that purpose.”

b.

“companies should maximize profits, not solve society's problems, with their time, money, and talent.”

c.

“because social problems affect society in general, businesses should not be expected to solve these problems.”

d.

“social responsibility by firms can prevent increased government intervention.”

e.

“business managers are primarily responsible to stockholders for providing them a good return.”

ANS: D PTS: 1 DIF: Moderate REF: p. 49

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


100. The economic model of social responsibility places primary emphasis on

a.

quality of life.

b.

active government involvement.

c.

conservation of natural resources.

d.

economic return.

e.

the balance of economic return and social return.

ANS: D PTS: 1 DIF: Moderate REF: p. 50

OBJ: 2-6 NAT: AACSB: Ethics

TOP: Two Views of Social Responsibility


101. Which of the following best describes the trend in social responsibility models used by companies?

a.

Most companies are changing from a socioeconomic approach, to an economic approach, to social responsibility.

b.

There has really been no pattern of change over the last century because most companies take a socioeconomic approach.

c.

There has been a sporadic shift back and forth between the economic and socioeconomic model as the best business solution.

d.

Relatively little transformation has left the economic model as the philosophy for most businesses.

e.

More companies have been bypassing the economic model in favor of the socioeconomic model in recent years.


Download 0.99 Mb.

Share with your friends:
1   2   3   4   5   6




The database is protected by copyright ©sckool.org 2020
send message

    Main page