Ch2: Managing Interdependence Social Responsibility and Ethics

What is the definition of CSR?

• It is a process of keeping financial information

• A business responsibility towards society

• An act in maximizing profit of a company and its host country

Answer explanation

Corporate Social Responsibility (CSR) is a concept where businesses consider and take actions to positively impact society and the environment, beyond just making profits.

CSR can positively impact a company's :

• Long-term reputation and brand image

• Tax evasion strategies

• Short-term profits

Answer explanation

When a company engages in CSR activities such as charitable initiatives, it shows that they care about more than just profit, which resonates with customers. Over time, this can lead to strong positive reputation.

Ethical behaviour is subjective and can vary widely depending on cultural norms and personal beliefs.

• True

• False

Ethical dilemmas in business can arise when :

• There is no conflict between profits and morals

• There is a conflict between maximizing profits and doing what is morally right

Answer explanation

Companies cannot combat corruption by making employees aware of the penalties and ramifications of their actions.

• True

• False

Answer explanation

What is the purpose of Codes of Ethics in a company?

• To eliminate competition

• To restrict employee creativity

• To guide employees in making ethical decisions

MNCs today are usually quite sensitive to the issue of social responsibility and ethical behaviour because of...

• Interest groups

• Legal and government concerns

• Media coverage

• All of the above

How much should MNCs concern themselves with the social and economic effects of their decisions?

• MNCs are only responsible for earning profits

• MNCs should anticipate and solve social needs

• MNCs should solely prioritize social effects and disregard economic considerations

• MNCs should actively consider and address both the social and economic effects of their decisions to ensure responsible and sustainable business practices

Answer explanation

Ethical relativism is

•  to address the need for a moral standard that all cultures could accept

• Adopts the local moral code of whatever country it is operating in.

• The company applies the morality used in its home country regardless of the host country’s ethnicity

MNCs operating in developing nations are required to support and contribute to the nation they are working in

• True

• False

Answer explanation