Quiz on Social Responsibility and Business Ethics

What does the concept of social responsibility of business primarily involve?

• Focusing solely on legal compliance

• Avoiding government regulations

• Taking decisions and actions desirable in terms of societal values

• Maximizing profits for owners

How is social responsibility broader than legal responsibility?

• It disregards societal aspirations

• It focuses only on profit maximization

• It requires strict adherence to laws

• It involves voluntary actions beyond legal obligations

What is the primary ethical issue in social responsibility?

• Avoiding government regulations

• Determining what is morally right or wrong

• Reducing operational costs

• Maximizing shareholder wealth

What does the European Commission define CSR as?

• Maximizing profits for shareholders

• The responsibility of enterprises for their impacts on society

• Reducing costs through environmental protection

• Avoiding legal compliance

What is the CSR provision under the Companies Act, 2013 in India?

• Companies must spend 1% of their net worth on CSR activities

• Companies must spend 10% of their turnover on CSR activities

• Companies must spend 5% of their net profit on CSR activities

• Companies must spend 2% of their average net profit in the previous three years on CSR activities

Which of the following is an argument for social responsibility?

• Lack of social skills

• Justification for existence and growth

• Burden on consumers

• Violation of profit maximization objective

Why is the long-term interest of a firm an argument for social responsibility?

• It ensures maximum profits in the short term

• It reduces operational costs

• It builds public image and gains cooperation from society

• It avoids government regulations

How can businesses avoid government regulations?

• By maximizing profits

• By voluntarily assuming social responsibilities

• By reducing costs

• By focusing solely on legal compliance

What is the moral obligation of businesses regarding social problems?

• To ignore them and focus on profits

• To solve them instead of expecting other agencies to deal with them

• To shift the burden to consumers

• To avoid involvement in social programs

Which of the following is an argument against social responsibility?

• Availability of resources with business

• Better environment for doing business

• Burden on consumers

• Justification for existence and growth