Reference no: EM131710048

1. Being socially responsible legally requires a company to adhere to:
A. Kantian ethics
B. Moral Saint status
C. Business Hero status
D. None of the above.

2. Which of the following is the most accurate statement about giant multinational, pharmaceutical companies providing AIDS drugs to poor African nations?
A. They have a legal duty to do so pursuant to United Nation's international law precepts.
B. They have a moral duty to do so pursuant to the ethical principle of Last Resort since they are very wealthy entities.
C. They can be said to be acting in a socially responsible manner by providing the drugs even if they do not have a legal or moral duty to do so.
D. International patent law prohibits providing the drugs since they then can be reverse-engineered.

3. The U.S. government bans the sale in the United States of Whirly-Wheel, a child's toy, which the government deems dangerous. For this reason, it is most accurate to say that it is:
A. Illegal to sell the toy outside the United States
B. Illegal and unethical to sell the toy outside of the United States
C. Legal but possibly immoral to sell the toy outside of the United States
D. Socially responsible to sell the toy outside of the U.S. if the manufacturer's shareholders benefit.

4. Which of the following are among the assertions typically made by "socially responsible" critics of the modern corporation's activities?
A. Many large corporations have been focused too much on maximizing profits for shareholders and on granting bonuses to executives.
B. Corporations should not merely obey the law but rather should seek and observe social responsibility standards higher than the law regarding charitable and civic activities.
C. Corporate profit-seeking at times involves unacceptable social costs.
D. All of the above.

5. University of Chicago Professor Milton Friedman famously said about social responsibility:
A. The social responsibility of business is to make money legally.
B. Big multinational corporations must solve all the social problems in the world.
C. Business is immoral for not helping out in the community.
D. When in Rome, act as the Romans.

6. Which is a FALSE statement about social responsibility?
A. Social responsibility is a "real-world" concern for modern business managers; it is not merely an "academic" issue.
B. Social responsibility and ethical egoism are mutually exclusive and contradictory values.
C. A challenge for business today is to ascertain the exact nature and proper degree of social responsibility.
D. Social responsibility activities and contributions are mandated legally for large multinational global corporations by the World Bank and the United Nations.

7. Nobel Prize winner Professor Emeritus Milton Friedman would favor a corporate code of conduct that would:
A. Maximize profits at all costs.
B. Maximize profits based on open and free competition.
C. Maximize profits as long as the corporation "plays within the rules" without fraud, deception, or other illegality.
D. B and C only.

8. Which of the following is a correct statement regarding the definition of corporate "social responsibility"?
A. In the interests of preserving personal freedom, the law in the United States codifies in detail social responsibility rules.
B. For a social responsibility analysis the acceptable standard for moral behavior is compliance with the legal law.
C. A minimum socially responsible standard for business is compliance with the law.
D. By law in the U.S., an employer typically is required to provide to the mayor of a local community where the employer does business a clear set of social responsibility standards and rules based on the values of the community.

9. What is a TRUE statement about state social benefit or B-corporations?
A. They must consider the values and interests of other stakeholders beyond the shareholders of the corporation.
B. They are not allowed to make any profits or pay any dividends to shareholders.
C. They cannot have a public purpose since corporations are incorporated to do business and make money and not engage in socially responsible activities.
D. They are now governed by detailed rules promulgated by federal regulatory agencies.

10. Today, critics of the corporation argue for various corporate governance reform proposals to improve the legal, moral, and socially responsible behavior of the corporation. Which of the following is the most convincing argument AGAINST these proposals?
A. These proposals are inadvisable because corporate managers should never have any duty other than to maximize profits for the shareholders
B. These proposals are unnecessary because market forces invariably operate to deter any corporate misbehavior
C. These proposals are unnecessary because existing law already establishes clear standards for what is and is not moral corporate behavior globally
D. These proposals are inadvisable because they will reduce corporate ability to respond quickly to changing business conditions and therefore will make allocational inefficiency.