2.01 Role of Business in Society Article

What is the primary role of a business in society?

• To maximize profits

• To produce and distribute goods and services

• To create competition among businesses

• To invest in other companies

According to Business News Daily, corporate social responsibility (CSR) is defined as:

• A strategy for increasing market share

• A business practice that benefits society

• A method for reducing operational costs

• A way to enhance customer service

How can corporations enact corporate social responsibility?

• By solely focusing on profit

• By donating to charitable organizations

• By avoiding any public engagement

• By increasing prices of goods

What can lead to a company being viewed as ethically irresponsible?

• Implementing cost-cutting measures

• Treating employees unfairly

• Expanding into new markets

• Offering discounts to customers

Which of the following is NOT a reason why employees seek jobs with socially responsible corporations?

• Increased job security

• Alignment with personal values

• Higher salaries

• Positive company culture

What aspect of business ethics do MBA programs commonly teach?

• Maximizing shareholder value

• Corporate social responsibility

• Aggressive marketing tactics

• Cost leadership strategies

Why is it important for businesses to resolve ethical issues in a socially responsible manner?

• To comply with legal requirements

• To ensure consistent profit margins

• To maintain a positive public image

• To avoid employee turnover

What factor influences the balance between making ethical decisions and maintaining profitability?

• Market saturation

• Society’s changing values

• Government regulations

• Global competition

Which of the following is an example of corporate social responsibility?

• Cutting employee benefits to increase profit

• Donating a percentage of profits to local charities

• Increasing prices to cover operational costs

• Focusing solely on shareholder returns

What is a significant effect of corporate social responsibility on businesses?

• It complicates operations

• It decreases customer loyalty

• It enhances company culture

• It increases regulatory scrutiny