Social Responsibility and Ethics, Strategic Management

50 MCQ Social Responsibility and Ethics in Strategic Management

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On December 24, 2024

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The primary responsibility of a business according to Friedman’s view is to: A) Maximize profits for shareholders
B) Consider the welfare of society
C) Minimize taxes
D) Ensure employee satisfaction
Answer: A) Maximize profits for shareholders
Which of the following is NOT one of Carroll’s four responsibilities of business? A) Economic responsibilities
B) Legal responsibilities
C) Philanthropic responsibilities
D) Political responsibilities
Answer: D) Political responsibilities
Which of the following is an example of ethical responsibility according to Carroll’s model? A) Paying taxes
B) Paying employees fairly
C) Protecting the environment
D) Following legal regulations
Answer: B) Paying employees fairly
Which responsibility in Carroll’s framework is purely voluntary and discretionary? A) Economic responsibilities
B) Legal responsibilities
C) Ethical responsibilities
D) Discretionary responsibilities
Answer: D) Discretionary responsibilities
Which of the following best describes a company’s social capital? A) The firm’s ability to raise capital from investors
B) The company’s legal obligations
C) The goodwill and trust from stakeholders that can be used for competitive advantage
D) The company’s environmental policies
Answer: C) The goodwill and trust from stakeholders that can be used for competitive advantage
What benefit can a company expect from being socially responsible? A) Lower taxes
B) Increased brand loyalty
C) Decreased market share
D) Reduced operational costs
Answer: B) Increased brand loyalty
Which of the following is a characteristic of sustainability in a business context? A) Environmental sustainability only
B) Economic, environmental, and social sustainability
C) Profit maximization at all costs
D) Legal compliance only
Answer: B) Economic, environmental, and social sustainability
Who are considered primary stakeholders of a business? A) Customers, employees, suppliers, shareholders, and creditors
B) NGOs and activists
C) Competitors
D) Media
Answer: A) Customers, employees, suppliers, shareholders, and creditors
What are secondary stakeholders in a business context? A) Those directly connected with the corporation
B) NGOs, activists, local communities, trade associations, and governments
C) Shareholders and creditors
D) Media
Answer: B) NGOs, activists, local communities, trade associations, and governments
What is the first step in stakeholder analysis? A) Identifying secondary stakeholders
B) Identifying primary stakeholders
C) Estimating the impact on stakeholders
D) Inviting stakeholder input
Answer: B) Identifying primary stakeholders
Which of the following is a common reason for unethical behavior? A) Unawareness that behavior is questionable
B) Clear understanding of ethical standards
C) Different legal frameworks
D) High corporate ethics
Answer: A) Unawareness that behavior is questionable
Moral relativism claims that: A) There is one universal standard for ethical behavior
B) Moral decisions are based on personal, social, or cultural standards
C) All ethical decisions are wrong
D) Ethical behavior is determined by law
Answer: B) Moral decisions are based on personal, social, or cultural standards
Kohlberg’s principled level of moral development focuses on: A) Self-interest
B) Following societal laws
C) Adhering to an internal moral code
D) Following what others do
Answer: C) Adhering to an internal moral code
Which of the following is an example of a corporate social responsibility initiative? A) Reducing environmental pollution
B) Increasing profits at all costs
C) Disregarding employee rights
D) Ignoring consumer needs
Answer: A) Reducing environmental pollution
What is the role of a code of ethics in an organization? A) To clarify company expectations of employee conduct
B) To enforce laws and regulations
C) To maximize shareholder profit
D) To avoid government scrutiny
Answer: A) To clarify company expectations of employee conduct
What is the function of whistleblowers in an organization? A) To promote company policies
B) To report unethical or illegal behavior
C) To enforce government regulations
D) To increase corporate profits
Answer: B) To report unethical or illegal behavior
Ethics are best described as: A) The laws that govern society
B) The rules of personal behavior based on religion
C) The consensually accepted standards of behavior for an occupation or trade
D) Unwritten guidelines for personal behavior
Answer: C) The consensually accepted standards of behavior for an occupation or trade
The justice approach to ethics involves: A) Making decisions based on the greatest good for the greatest number
B) Ensuring that decisions are fair and impartial
C) Respecting individual rights
D) Ignoring the distribution of costs and benefits
Answer: B) Ensuring that decisions are fair and impartial
The utilitarian approach to ethics emphasizes: A) Respecting individual rights
B) Fairness in the distribution of benefits
C) Judging actions based on their consequences
D) Following laws strictly
Answer: C) Judging actions based on their consequences
The individual rights approach to ethics advocates: A) Focusing on group benefits
B) Ignoring the interests of the individual
C) Respecting the fundamental rights of individuals
D) Maximizing profits at all costs
Answer: C) Respecting the fundamental rights of individuals
A company’s social capital is important because it: A) Reduces operational costs
B) Enhances the company’s reputation and provides competitive advantage
C) Increases financial liabilities
D) Focuses solely on legal compliance
Answer: B) Enhances the company’s reputation and provides competitive advantage
Which of the following is NOT a benefit of being socially responsible? A) Charging premium prices
B) Building strong relationships with suppliers
C) Gaining brand loyalty
D) Ignoring consumer demands
Answer: D) Ignoring consumer demands
Which of the following is considered an ethical responsibility for a business? A) Maximizing shareholder profits
B) Following the law
C) Paying fair wages to employees
D) Avoiding paying taxes
Answer: C) Paying fair wages to employees
Which of the following is a potential result of a business’s unethical behavior? A) Increased brand loyalty
B) Legal action and loss of reputation
C) Stronger relationships with stakeholders
D) Lower operating costs
Answer: B) Legal action and loss of reputation
A company engaging in philanthropic activities is fulfilling which type of responsibility according to Carroll’s model? A) Economic responsibility
B) Legal responsibility
C) Ethical responsibility
D) Discretionary responsibility
Answer: D) Discretionary responsibility
A stakeholder analysis helps managers to: A) Identify primary and secondary stakeholders
B) Maximize profit
C) Ignore the interests of stakeholders
D) Avoid legal responsibilities
Answer: A) Identify primary and secondary stakeholders
Which of the following is a common reason for unethical behavior in business? A) A lack of awareness regarding ethical standards
B) Strong company ethics codes
C) Clear social norms
D) High transparency in decision-making
Answer: A) A lack of awareness regarding ethical standards
Moral relativism suggests that morality is based on: A) Universal standards of right and wrong
B) Personal, social, or cultural standards
C) Government laws
D) Scientific evidence
Answer: B) Personal, social, or cultural standards
Which level of Kohlberg’s moral development involves making decisions based on an internal moral code? A) Preconventional level
B) Conventional level
C) Principled level
D) Universal level
Answer: C) Principled level
In which of Kohlberg’s stages do individuals consider societal laws and norms when making decisions? A) Preconventional level
B) Conventional level
C) Principled level
D) Moral relativism level
Answer: B) Conventional level
An ethical dilemma arises when: A) There is a clear right or wrong decision
B) There are conflicting values and choosing one may compromise another
C) Legal standards are followed
D) The business has a strong code of ethics
Answer: B) There are conflicting values and choosing one may compromise another
Which of the following is an ethical issue related to corporate governance? A) Maximizing profits at all costs
B) Following environmental laws
C) Ensuring transparency in decision-making
D) Ignoring employee concerns
Answer: C) Ensuring transparency in decision-making
A company that is socially responsible is likely to: A) Ignore environmental issues
B) Focus on short-term profits only
C) Engage in practices that benefit society and the environment
D) Avoid legal compliance
Answer: C) Engage in practices that benefit society and the environment
Which of the following is a responsibility of a business under the ethical category of Carroll’s model? A) Making a profit
B) Following laws and regulations
C) Acting in ways that are just and fair
D) Providing charitable donations
Answer: C) Acting in ways that are just and fair
A company should address stakeholder concerns because: A) It is legally required
B) Stakeholders influence the company’s success
C) It helps the company reduce operational costs
D) It avoids government regulation
Answer: B) Stakeholders influence the company’s success
The legal responsibilities of a business: A) Are defined by internal company policies
B) Require following the laws set by the government
C) Include voluntary acts of kindness
D) Are based on the company’s ethical standards
Answer: B) Require following the laws set by the government
The ethical responsibilities of a business are: A) Voluntary and based on societal expectations
B) Mandated by the government
C) Focused on profit maximization
D) Limited to reducing operational costs
Answer: A) Voluntary and based on societal expectations
The discretionary responsibilities of a business: A) Are required by law
B) Involve charitable actions and other voluntary initiatives
C) Are focused on economic growth
D

) Ensure legal compliance
Answer: B) Involve charitable actions and other voluntary initiatives

1. 1. What does corporate social responsibility (CSR) focus on? A) Only legal compliance
    B) Ethical considerations and stakeholder welfare
    C) Reducing operational costs
    D) Maximizing shareholder profits
    Answer: B) Ethical considerations and stakeholder welfare
  2. Which is the most common form of corporate social responsibility? A) Focusing on profit maximization
    B) Charitable donations
    C) Lobbying for government support
    D) Avoiding government regulation
    Answer: B) Charitable donations
  3. Stakeholder theory suggests that a business’s primary responsibility is to: A) Maximize profits for shareholders
    B) Consider the interests of all stakeholders
    C) Increase market share
    D) Reduce operating costs
    Answer: B) Consider the interests of all stakeholders
  4. A business is socially responsible when it: A) Focuses on financial gain only
    B) Acts in ways that contribute to the well-being of society
    C) Prioritizes shareholder profits
    D) Ignores employee concerns
    Answer: B) Acts in ways that contribute to the well-being of society
  5. A code of conduct for businesses is: A) A set of legal requirements
    B) A guideline for ethical behavior within an organization
    C) A rulebook for maximizing profits
    D) A government regulation
    Answer: B) A guideline for ethical behavior within an organization
  6. What is the key characteristic of a business that follows Kohlberg’s post-conventional level of moral development? A) Decisions are based on self-interest
    B) Decisions are based on laws and regulations
    C) Decisions are guided by a deep understanding of ethical principles
    D) Decisions are based on what others do
    Answer: C) Decisions are guided by a deep understanding of ethical principles
  7. Which of the following statements is true regarding ethical decision-making in business? A) Ethical decisions are always easy to make
    B) Ethical decision-making should prioritize profits over people
    C) Ethical decisions should balance legal, moral, and societal considerations
    D) Ethical decision-making is only about following the law
    Answer: C) Ethical decisions should balance legal, moral, and societal considerations
  8. The relationship between ethics and law can be described as: A) Ethics is a subset of law
    B) Ethics always aligns with legal standards
    C) Ethics and law are separate but sometimes overlap
    D) Law is a subset of ethics
    Answer: C) Ethics and law are separate but sometimes overlap
  9. A company that follows utilitarian ethics will: A) Focus only on the consequences of its actions
    B) Prioritize individual rights over societal welfare
    C) Consider the fairness of actions before taking them
    D) Follow the law strictly
    Answer: A) Focus only on the consequences of its actions
  10. Which of the following is an example of corporate social responsibility? A) Reducing pollution
    B) Ignoring labor laws
    C) Maximizing tax savings
    D) Cutting wages to increase profits
    Answer: A) Reducing pollution
  11. The primary purpose of ethical decision-making frameworks is to: A) Guide businesses to maximize profit
    B) Clarify the ethical implications of decisions
    C) Focus only on legal compliance
    D) Discourage social responsibility
    Answer: B) Clarify the ethical implications of decisions
  12. Which of the following is the primary benefit of having a corporate ethics program? A) Increased employee turnover
    B) Improved stakeholder trust and loyalty
    C) Higher taxes
    D) Decreased profits
    Answer: B) Improved stakeholder trust and loyalty

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