Strategic Management and Business Policy

Strategic Management & Business Policy, 13e (Wheelen/Hunger)

Chapter 3 Ethics and Social Responsibility in Strategic Management

1) The theory of vital responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.

Answer: FALSE

Diff: 3 Page Ref: 72

Topic: Social Responsibilities of Strategic Decision Makers

AACSB: Ethical Reasoning

2) Friedman referred to the social responsibility of business as a "fundamentally subversive doctrine."

Answer: TRUE

Diff: 2 Page Ref: 72

Topic: Social Responsibilities of Strategic Decision Makers

AACSB: Ethical Reasoning

3) Archie Carroll contends that the primary goal of business is profit maximization.

Answer: FALSE

Diff: 2 Page Ref: 72

Topic: Social Responsibilities of Strategic Decision Makers

AACSB: Ethical Reasoning

4) Archie Carroll proposes that managers in companies have only a discretionary responsibility.

Answer: FALSE

Diff: 2 Page Ref: 73

Topic: Social Responsibilities of Strategic Decision Makers

AACSB: Ethical Reasoning

5) According to Carroll, legal responsibilities are defined by governments in laws that management is expected to obey.

Answer: TRUE

Diff: 1 Page Ref: 73

Topic: Social Responsibilities of Strategic Decision Makers

6) The difference between ethical and discretionary responsibilities is that few people expect an organization to fulfill ethical responsibilities.

Answer: FALSE

Diff: 2 Page Ref: 73

Topic: Social Responsibilities of Strategic Decision Makers

AACSB: Ethical Reasoning

7) Discretionary responsibilities are voluntary obligations a corporation assumes.

Answer: TRUE

Diff: 1 Page Ref: 73

Topic: Social Responsibilities of Strategic Decision Makers

AACSB: Ethical Reasoning

8) Being known as a socially responsible firm may provide a company with social capital, the goodwill of key stakeholders, that can be used for competitive advantage.

Answer: TRUE

Diff: 1 Page Ref: 74...