BUSINESS ETHICS - SECOND DAY REVIEW

Which of the following is a commonly used model of corporate social responsibility?

• Stakeholder Theory

• Supply and Demand Model

• Maslow's Hierarchy of Needs

• Theory of Relativity

Which of the following best defines stakeholder theory?

• focuses on maximizing profits for shareholders

• prioritizes the interests of all individuals or groups affected by a business

• emphasizes the importance of corporate social responsibility

• promotes unethical behavior in business

Which of the following is an example of an ethical dilemma in stakeholder theory?

• Deciding whether to give employees a raise

• Choosing a color scheme for the company logo

• Setting the location for a new branch

• Determining the number of employees

What are the potential consequences of ignoring stakeholder interests?

• Increased trust and loyalty from stakeholders

• Decreased profitability for the business

• Enhanced reputation and positive public perception

• Improved employee satisfaction

Which of the following is NOT a key principle of stakeholder theory?

• Accountability

• Transparency

• Profitability

• Fairness

A company engaging in fair labor practices and providing a safe working environment is most likely addressing the concerns of which stakeholder group?

• Customers

• Employees

• Shareholders

• Government Regulators

According to stockholder theory, the primary goal of a corporation is to:

• Maximize customer loyalty

• Maximize social welfare

• Maximize employee satisfaction

• Maximize shareholder wealth

According to Adam Smith's concept of the "invisible hand," what guides economic activity?

• Government regulations

• Country leaders

• Consumer demand

• Social norms

The invisible hand theory suggests that individuals pursuing their own self-interest will ultimately benefit:

• Society as a whole

• Only themselves

• The government

• The business sector

According to stockholder theory, the primary goal of a corporation is to:

• Maximize customer loyalty

• Maximize social welfare

• Maximize employee satisfaction

• Maximize shareholder wealth