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1 | |
The free market, classical, theory of corporate social responsibility relies on
utilitarianism and the concepts of individual rights to freedom and property for its
ethical justification. |
| | A) | TRUE |
| | B) | FALSE |
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2 | |
To use a company's resources for a project that does not contribute to maximizing profits is sometimes acceptable and even sometimes required under the classical model of corporate social responsibility. |
| | A) | TRUE |
| | B) | FALSE |
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3 | |
If the costs of externalities like air pollution, ground water contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties who are not involved in the exchange between buyer and seller, the exchange price does not represent an equilibrium between true costs and benefits. |
| | A) | TRUE |
| | B) | FALSE |
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4 | |
There is no reason to believe that ad hoc attempts to repair market failures—like
determining shadow prices for unpriced social goods, or by exempting social goods
from the market, or by use of the law to address social goods that are unattainable
through individual choice—are socially inadequate. |
| | A) | TRUE |
| | B) | FALSE |
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5 | |
According to the private property defense of the classical model of corporate social responsibility, any use of a corporation's resources for any purpose other than maximizing profits is a violation of the owners' property rights, amounts to theft. |
| | A) | TRUE |
| | B) | FALSE |
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6 | |
Bowie's Kantian model of corporate social responsibility obliges managers to do no harm, but they must also be prepared at times to do some good or prevent some harm. |
| | A) | TRUE |
| | B) | FALSE |
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7 | |
The moral minimum theory of corporate social responsibility insists on the idea that corporate rights and responsibilities can be inferred from the terms of an imaginary contract between business and society. |
| | A) | TRUE |
| | B) | FALSE |
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8 | |
Since the social contract theory in business presupposes an amoral beginning, i.e., excludes the idea that individuals already possess natural rights and responsibilities before the contract is established, it seems to offer few if any guarantees that certain fundamental rights will be protected under the contract. |
| | A) | TRUE |
| | B) | FALSE |
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9 | |
The stakeholder theory of corporate social responsibility is totally incompatible with utilitarian ethical theory because the stakeholder concept requires balancing the interests of all the parties affected by business decisions. |
| | A) | TRUE |
| | B) | FALSE |
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10 | |
A wider interpretation of the meaning of a stakeholder as any affected party places an impossible burden on managers who would have to account for everyone who might be affected by a business decision. |
| | A) | TRUE |
| | B) | FALSE |
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2003 McGraw-Hill Higher Education