The iron law of responsibility says that:

	a.	In the long run, those who do not use power responsibly will lose it.
	b.	In the short run, sacrifice social goals for economic goals.
	c.	Law is most important, more than social or economic responsibility.
	d.	In the long run, economic responsibility leads to social responsibility.

1 points

Question 2

Corporations have a role in establishing their community's:

	a.	Tax base.
	b.	Safety.
	c.	Economic Growth.
	d.	All of the Above.

1 points

Question 3

Which of the following companies is being the most socially responsible?

	a.	A company trying its best to operate in a way which will help local students get education and jobs.
	b.	A company halting its production of toxic gases after it discovered that people objected to this practice and threatened legal action.
	c.	A company trying to maximize its profits and then contributing to an environmental protection fund.
	d.	A company changing its product design to comply with regulatory mandates.

1 points

Question 4

Modern corporations should be socially responsible because they:

	a.	Are responsible to the stockholders of the company.
	b.	Create jobs, influencing the lives of employees.
	c.	Are highly profitable.
	d.	Generate dividends for the company stockholders.

1 points

Question 5

All of the following are examples of the phases of Corporate Social Responsibility except:

	a.	Corporate/Global Citizenship.
	b.	Corporate Charity Principle.
	c.	Corporate Social Stewardship.
	d.	Corporate/Business Ethics.

1 points

Question 6

Reason(s) for adopting an enlightened self-interest approach is(are):

	a.	Reasonable short-run costs are incurred, but socially responsible activities are promoted.
	b.	The public's attitude toward the company is positive in the long run.
	c.	The stockholders' pressures for short-run profits are satisfied.
	d.	All of the above.

1 points

Question 7

Scholars have found:

	a.	No relationship between social and financial performance.
	b.	A negative relationship between social and financial performance.
	c.	An inverse relationship between social and financial performance.
	d.	A positive association between social and financial performance.

1 points

Question 8

When undertaking social initiatives, a company:

	a.	Must take out social responsibility insurance.
	b.	Will always receive long-term profits.
	c.	May sacrifice short-term profits.
	d.	Risks going bankrupt in nearly all cases.

1 points

Question 9

The costs of corporate social responsibility may ultimately be passed on to the:

	a.	Employees through fewer health benefits.
	b.	Consumer through high prices.
	c.	Investor through stock splits.
	d.	Taxpayers by the government.

1 points

Question 10

A social enterprise:

	a.	Adopts social benefit as its core mission.
	b.	Adopts profit maximization as its core mission.
	c.	Can only be adopted by small firms.
	d.	Does not use business strategies to improve environmental well-being.