Multiple Choice Answers

Question 1
Someone who argues that General Motors owes an obligation to take into account the interests of the community where it has its Michigan factories in decisions involving the plant is arguing most directly for which theory to be applied to business?
a) Machiavellian ethics
b) Corporate social responsibility
c) Maximizing profits
d) Legal misfeasance

Question 2
Which of the following is a correct statement regarding the definition of the term “social responsibility” in a business context?
a) A socially responsible business person believes that the formal legal law is inferior to universal moral and ethical principles that can be determined by intuition.
b) Social responsibility is the branch of philosophy that focuses on morally right and wrong behavior.
c) Social responsibility is based on current societal views as to how and the extent a business should contribute to charities and civic organizations and be involved in helping the community.
d) A business cannot adhere to social responsibility principles and the doctrine of ethical egoism since both are always mutually exclusive.

Question 3
Not being socially responsible most likely subjects one and one’s company to:
a) Civil legal liability based on the principle of Last Resort.
b) Criminal legal liability based on the principle of Nonfeasance.
c) Moral condemnation for the failure to rescue the poor in the local community.
d) Criticism in the local community for not being a “good corporate citizen”

Question 4
Which of the following is a correct statement regarding the definition of the term “social responsibility” in a business context?
a) A socially responsible business person believes that the formal legal law is inferior to universal moral and ethical principles that can be determined by intuition.
b) Social responsibility is the branch of philosophy that focuses on morally right and wrong behavior.
c) Social responsibility is based on current societal views as to how and the extent a business should contribute to charities and civic organizations and be involved in helping the community.
d) A business cannot adhere to social responsibility principles and the doctrine of ethical egoism since both are always mutually exclusive.

Question 5
Which of the following is a correct statement regarding the definition of corporate “social responsibility”?
a) In the interests of preserving personal freedom, the law in the United States codifies in detail social responsibility rules.
b) For a social responsibility analysis the acceptable standard for moral behavior is compliance with the legal law.
c) As a general rule there is no legal requirement for a company to be a socially responsible one.
d) Typically, a business can be sued by community action groups if it is not socially responsible since it is thereby acting immorally in the community.

Question 6
The term “corporate social responsibility” is today best defined in the U.S. by:
a) Federal statutory incorporation law.
b) Securities and Exchange Commission (SEC) Rule 10b(5)
c) Kant’s ethical writings condemning the corporate form of business for being selfish, greedy, and immoral
d) Current definitions in business of the term which indicate that a company should be socially responsible and thus contribute to charities and civic organizations, but in a prudent and smart manner.