From an ethical perspective, Friedman argues that it would

1.)        From an ethical perspective, Friedman argues that it would be unethical for a corporation to do anything other than deliver profits for which investors have entrusted it with their funds in the purchase of shares in the corporation.

TRUE

FALSE

2.)        Friedman’s view of the corporate world supports the rights of individuals to make money with their investments.

TRUE

FALSE

3.)        The instrumental approach argues that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers.

TRUE

FALSE

4.)        The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself.

TRUE

FALSE

5.)        The modern social contract approach argues that since a corporation depends on society for its existence and continued growth, there is an obligation for that corporation to meet the demands of society rather than the demands of a targeted group of customers only.

TRUE

FALSE

6.)        As far back as 1969, Henry Ford recognized that corporations operate in an isolated environment.

TRUE

FALSE

7.)        Organizations that demonstrate a “conscience” beyond profit generation inevitably attract the same amount of attention as organizations that are bottom line-driven.

TRUE

FALSE

8.)        Transparency is a major trend behind the CSR phenomenon.

TRUE

FALSE

9.)        With the transition to an information based economy, consumers and investors have more information at their disposal than at any time in history, which is one of the major trends of the CSR phenomenon.

TRUE

FALSE

10.)     CSR initiatives have been shown to generate immediate financial gains to the organization after implementation.

TRUE

FALSE

11.)     Many corporations are now reporting a triple bottom line in their annual reports that includes updates on their social and environmental activities in addition to their bottom line financial performance.

TRUE

FALSE

12.)     There are four distinctive types of CSR: economic, ethical, altruistic, and strategic.

TRUE

FALSE

13.)     When Home Depot announced a direct cash donation of $1.5 million to support the relief and rebuilding efforts in areas devastated by Hurricane Katrina, this is an example of Economic CSR.

TRUE

FALSE

14.)     One of the newest and increasingly questionable practices in the world of CSR is the notion of making your operations “carbon neutral.”

TRUE

FALSE

15.)     Corporate governance is the system that directs and controls business corporations.

TRUE

FALSE

16.)     Managers only are accountable to their owners.

TRUE

FALSE

17.)     A board of directors is the group of individuals who oversee governance of an organization.

TRUE

FALSE

18.)     The board of directors runs the organization on a day-to-day basis.

TRUE

FALSE

19.)     The term outside director can be misleading because some outside members may have direct connections to the company.

TRUE

FALSE

20.)     The audit committee is comprised of independent specialists who have no connection to the company.

TRUE

FALSE

21.)     The compensation committee is responsible for monitoring the financial policies and procedures of the organization.

TRUE

FALSE

22.)     The corporate governance committee represents a more public demonstration of the organization’s commitment to ethical business practices.

TRUE

FALSE

23.)     The Cadbury report argued for a guideline of “comply or else.”

TRUE

FALSE

4.)     The “comply or else” methodology is a set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.

TRUE

FALSE

 

25.)     The Sarbanes-Oxley Act of 2002 incorporates the “comply or else” approach.

TRUE

FALSE

26.)     Oversight of the board of directors remains intact even when the roles of chief executive officer and chairman of the board merge.

TRUE

FALSE

27.)     Efficiency is the main argument for merging the chief executive officer and the chairman of the board positions together.

TRUE

FALSE

28.)     To be truly effective, a board of directors should foster a culture of “no dissent.”

TRUE

FALSE

29.)     To be truly effective, a board of directors should create a climate of trust and candor and ensure individual accountability.

TRUE

FALSE

30.)     Since the 1970s, there has been 45 key attempts at behavior modification to discourage, if not prevent, illegal conduct within organizations.

TRUE

FALSE

31.)     The Securities and Exchange Commission can imprison company executives for failing to disclose such payments under their securities rules.

TRUE

FALSE

32.)     The Instrumental Approach to CSR argues that corporations have obligations not only to make profits for their shareholders, but also to the world community.

TRUE

FALSE

33.)     The earth’s natural wealth shows little to no signs of decline, despite aggressive economic expansion on every continent.

TRUE

FALSE

34.)     The ‘Carbon Footprint’ is one of the oldest fossils found in man’s prehistory.

TRUE

FALSE

35.)     Despites its size WALMART has enjoyed smooth ethical sailing, in contrast to other very large corporations.

TRUE

FALSE

36.)     It was with the publication of Rachel Carson’s book titled Unruly Autumn that many realized the positive effects of DDT in fighting malaria.

TRUE

FALSE

37.)     Hewlett-Packard’s form Chairwoman Patricia Dunn’s response to leaks from her own Board of Directors is considered a hallmark of the highest standards of responsible corporate ethical action in the history of the United States.

TRUE

FALSE

38.)     Thanks to futures trader Nick Leeson of Barings Bank PLC, ‘the Queen’s bank’ was saved more than $1 billion from a hostile takeover.

TRUE

FALSE

39.)     ‘Robbing Peter to pay Paul’ aptly captures the core idea of the Ponzi scheme.

TRUE

FALSE

40.)     ImClone Systems former chief executive Dr. Sam Waksal found the moral high ground and refused to tell either his family members or his friend design celebrity Martha Stewart that the ImClone Systems stock would soon plummet to a a fraction of its former worth.

TRUE

FALSE

41.)     Chiquita Brands Interational Inc., Greek unit, had become one of the most popular brands in the country, thanks in part to its actions as a moral trend-setter.

TRUE

FALSE

42.)     Sending donations to Martha Stewart’s defense fund was found to be illegal under the FCPA.

TRUE

FALSE

43.)     India’s Satyam Computer Services is considered the most moral of that nation’s large corporations.

TRUE

FALSE

44.)     According to a report by the Giving USA Foundation, business charitable deductions now average 2 percent, up from 25 years ago, when the percentage was 0.7 percent.

TRUE

FALSE