Social Responsibilities of Business and Business Ethics

Topics in this chapter

• Social Responsibility Concepts
• Arguments For and Against
• Stakeholder Responsibilities
• Types of Responsibility
• Environmental Protection
• Business Ethics
• Implementing Ethical Practices

Cheat sheet

Practice questions

1. Question 1Q-2F9123

   Which responsibility of business is considered a voluntary obligation, extending beyond legal and economic duties to include contributions to community welfare and quality of life?

   1. A.Economic responsibility
   2. B.Legal responsibility
   3. C.Ethical responsibility
   4. D.Discretionary responsibility
   See the answer and solution
2. Question 2Q-A40182

   An argument against social responsibility suggests that the primary objective of any business firm is to maximize profits for its owners. According to this view, spending company resources on social goals violates which fundamental principle?

   1. A.Profit maximization and fiduciary duty to shareholders
   2. B.Environmental protection and sustainability
   3. C.Public image and brand enhancement
   4. D.Government regulation and compliance
   See the answer and solution
3. Question 3Q-1EDB99

   Which of the following best defines 'Business Ethics'?

   1. A.Strict adherence to government laws and tax regulations
   2. B.The set of moral standards and values that govern business behavior and decision-making
   3. C.The legal obligation to pay minimum wages to factory workers
   4. D.A public relations strategy to improve a company's market share
   See the answer and solution
4. Question 4Q-D574D5

   Air and water pollution caused by industrial units falls under which category of environmental pollution that business must actively work to minimize?

   1. A.Social pollution
   2. B.Ecological pollution
   3. C.Financial pollution
   4. D.Ethical pollution
   See the answer and solution
5. Question 5Q-1802F5

   Explain the concept of 'social responsibility' of business and briefly distinguish it from 'legal responsibility'.

   See the answer and solution