Q & A organization business and management

STUDY QUESTIONS

Question 1: Define corporate social responsibility.

Question 2: What is the Davis model of corporate social responsibility?

Question 3: Why should business pursuing perform corporate social

responsibility activities?

Question 4: Why should business NOT perform corporate social

responsibility activities?

Question 5: Are there social responsibility activities that business must

perform?

Question 6: What is a voluntarily social responsibility activity?

Question 7: Discuss of possible outcomes of performing corporate

social responsibility activities.

Question 8: Why should managers communicate about corporate social

responsibility activities?

Question 9: Define social responsiveness.

Question 10: What is a stakeholder?

ANSWERS

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Answer 1: Your answer should be similar to the follow:
Corporate social responsibility is the managerial obligation to take action that
protects and improves the welfare of society as a whole as well as organizational
interests.
Answer 2: Your answer should be similar to the follow:
The Davis model contains five propositions describing why and how business
should adhere to the obligations to take action that protects and improves the
welfare of society and the organization. These five propositions are:
a. Proposition 1: Social responsibility arises from social power. Since business
holds a significant amount of power and influence over society, society can and
must hold business responsible for social conditions that result from exercising
this power.
b. Proposition 2: Business shall operate as a two-way open system, with open
receipt of input from society and open disclosure of its operations to the public.
Continuing, honest, and open communications between business and societal
representatives must exist if the overall welfare of society is to be maintained or
improved.
c. Proposition 3: Both social costs and benefits of an activity, product, or service
shall be thoroughly calculated and considered in deciding whether or not to
proceed with it. The technical feasibility and economic profitability must be
combined with the short- and long-term societal consequences of all business
activities before such activities are undertaken.
d. Proposition 4: Social costs related to each activity, product, or service shall be
passed on to the consumer. Society must understand that business cannot be
expected to completely finance socially advantageous activities that may be
economically disadvantageous to it.
e. Proposition 5: Business institutions, as citizens, have the responsibility to
become involved in certain social problems that are outside of their normal areas
of operation. If a business possesses the expertise to solve a social problem with
which it may not be directly associated, it should be held responsible for helping
society solve that problem.
Answer 3: Your answer should be similar to the follow:
There are three arguments that support business performing corporate social
responsibility activities. One argument is that it is in the best interest of business
to pursue socially responsible objectives. A healthier society increases the
demand for products and services, which in turn ensures the viability of business.
Another argument is that as a subset of society, business should not be exempt
from maintaining and improving the overall welfare of society. Another supportive
argument is that the pursuit of these objectives will be in the best interest of the
stockholders. The price of stock will increase in the long term, because the
company will be viewed as less risky and less open to attack by society for a
failure to pursue socially responsible objectives. In addition, some argue that
profitability and growth go hand in hand with responsible treatment of
employees, customers, and the community.
Answer 4: Your answer should be similar to the follow:
Milton Friedman argues against performing corporate social responsibility
activities.
Milton Friedman’s arguments stem from what he sees as the objective of private
organizations—profit. Making business managers simultaneously responsible to
business owners for reaching profit objectives and to society for enhancing
societal welfare represents a conflict of interests. This conflict might also be
unethical, since it requires business managers to spend money that really belongs
to other individuals. This conflict could lead to the demise of business as we
know it.
Answer 5: Your answer should be similar to the follow:
There are socially responsible activities that are required by law. Federal
legislation requires that business perform certain social responsibility activities.
Such legislation not only establishes the activities, but also establishes federal
agencies to monitor and enforce the performance.
Answer 6: Your answer should be similar to the follow:
This phrase refers to performing socially responsible activities beyond the
legislated minimum. How far beyond the legislated minimum a business should
go is determined by assessing the positive and negative outcomes of performing
socially responsible activities over the long and short runs. Only those socially
responsible activities that maximize management system success while making
some desirable contribution to maintaining or improving the welfare of society
should be performed.
Answer 7: Your answer should be similar to the follow:
The text lists five positive and five negative outcomes a business could
experience as a result of performing corporate social responsibility activities.
These outcomes are:
Positive outcomes (See text Table 3.2) include:
a. Enhanced corporate reputation and goodwill,
b. Strengthening of the social system in which the corporation functions,
c. Strengthening of the economic system in which the corporation functions,
d. Greater job satisfaction among all employees, and
e. Avoidance of government regulation.
Negative outcomes (See text Table 3.2) include:
a. Decreased short-term profitability,
b. Conflict of economic or financial and social goals,
c. Increased prices for consumers,
d. Conflict in criteria for assessing managerial performance, and
e. Discontent of stockholders.

Answer 8: Your answer should be similar to the follow:
As a spokesperson and representative of a corporation, it is the managerial
obligation to communicate what actions are being taken that protects and
improves the welfare of society along with the interests of the business itself.
Answer 9: Your answer should be similar to the follow:
Social responsiveness is the degree of effectiveness and efficiency an organization
displays in pursuing its social responsibilities.
Answer 10: Your answer should be similar to the follow:
Stakeholders are all individuals and groups that are directly or indirectly affected
by an organization’s decisions.