CHAPTER 5
1) According to the classical view of social
responsibility, management’s only social responsibility
is to maximize profits. TRUE
2) The most outspoken advocate of the classical view of
organizational social responsibility is Milton F. TRUE
3) According to socioeconomic view, managers’ social
responsibilities go beyond making profits to include
protecting and improving society’s welfare. TRUE
4) When a firm engages in social actions because of its
obligation to meet certain economic and legal
responsibilities, it is said to be socially responsive.
FALSE
5) One argument against businesses championing social
responsibility issues is that businesses already have too
much power. TRUE
6) Possession of resources is an argument for social
responsibility. TRUE
7) The legal approach to going green is also known as
the dark green approach. FALSE
8) An organization is said to adopt the market approach
to going green when it responds to the environmental
demands made by its stakeholders. FALSE
9) The activist approach to going green is when an
organization looks for ways to protect the earth’s natural
resources. TRUE
10) In the preconventional stage of moral development,
individuals make a clear effort to define moral
principles apart from the authority of the groups to
which they belong or of society in general. FALSE
11) At the conventional level of moral development,
ethical decisions rely on maintaining expected standards
and living up to the expectations of others. TRUE
12) At the principled level of moral development, an
individual values the rights of others and upholds
absolute values and rights regardless of the majority’s
opinion. TRUE
13) The term “values” refers to the principles and beliefs
that define what is right and wrong behavior. FALSE
14) People with an internal locus of control believe that
what happens to them is due to luck or chance. FALSE
15) An organization’s structural design, its goals,
performance appraisal systems, and reward allocation
procedures influence the ethical choices of employees.
TRUE
16) When employees are evaluated only on outcomes,
they may be pressured to do whatever is necessary to
look good on the outcomes, and not be concerned with
how they got those results. TRUE
17) The Global Compact is a document created by the
United Nations outlining principles for doing business
globally in the areas of human rights, labor, the
environment, and anticorruption. TRUE
18) The Organization for Economic Co-Operation and
Development developed a global code of ethics. FALSE
19) Employees who raise ethical concerns or issues to
others inside or outside the organization are called social
activists. FALSE
20) Under the Sarbanes-Oxley Act, whistle-blowers in
the United States who report suspected corporate
violations of laws now have broad protection from
reprisals and retaliation. TRUE
21) Social obligation is the obligation of a business to
meet its ________.
A)social and technological responsibilities
B)economic and social responsibilities
C)technological and economic responsibilities
D)economic and legal responsibilities
22) The ________ view of social responsibility holds
that management’s only social responsibility is to
maximize profits.
A)socioeconomic
B)classical
C)contemporary
D)sociolegal
23) The most outspoken advocate of the classical view
of social responsibility is economist and Nobel laureate
__.
A)George Stigler
B)Arthur F. Burns
C) Homer Jones
D)Milton Friedman
24) Under the concept of social obligation, the
organization does what is required by the ________.
A)society
B)stakeholders
C)environment
D)law
25) The ________ view is that management’s social
responsibility goes beyond making profits to include
protecting and improving society’s welfare.