Enterprise Leadership

Chapter 5 Social Responsibility and Managerial Ethics

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TRUE/FALSE QUESTIONS

WHAT IS SOCIAL RESPONSIBILITY?

1.

The classical view of organizational social responsibility is that management’s only social responsibility is

to maximize profits.

(True; moderate; p. 100)

2.

The most outspoken advocate of the classical view of organizational social responsibility is Milton

Friedman.

(True; easy; p. 100)

3.

In the socioeconomic view of organizational social responsibility, maximizing profits is a company’s

second priority.

(True; moderate; p. 100)

4.

Socially responsible businesses tend to have less-secure long-run profits.

(False; difficult; p. 103)

5.

One argument against businesses championing social responsibility issues is that businesses already have

too much power.

(True; difficult; p. 103)

6.

A business has fulfilled its social obligation when it meets economic, legal, and ethical obligations.

(False; moderate; p. 103)

7.

The difference between an organization’s social obligation and social responsiveness is the legal aspect.

(False; moderate; p. 103)

SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE

8.

Research has found that corporations’ social responsibility is unrelated to future financial performance.

(False; moderate; p. 104)

VALUES-BASED MANAGEMENT

9.

Values-based management is an approach to managing in which managers establish, promote, and practice

an organization’s shared values.

(True; easy; p. 104)

10.

Though the outcomes are not perfectly measured, the majority of research studies show a positive

relationship between corporate social involvement and economic performance.

(True; easy; p. 104)

11.

A company’s shared values act as guideposts for managerial decisions and actions.

(True; moderate; p. 104)

12.

Shared corporate values impact many issues, but not the marketing function.

(False; moderate; p. 107)

13.

Values-based...