Session:4 Three Special Stakeholders: Society, the Environment, and Government
Answer Key
Business Ethics | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/business-ethics
1. False. Social responsibility does not mean lower profitability, as the returns on social index funds have shown.
2. False. Milton Friedman argued that shareholders should be able decide for themselves what social initiatives to donate to or to take part in, rather than having a business executive or government decide for them.
3. A
4. D
5. One benefit is that consumers may prefer to purchase products from a socially responsible company. A second benefit is that CSR may attract more investors, or shareholders, who are interested in investing in the company.
6. Earth jurisprudence is an interpretation of law and governance based on the belief that society will be sustainable only if we recognize the legal rights of Earth as if it were a person.
7. B
8. D
9. True
10. C
11. False. Legal restrictions exist to limit the revolving door effect, but most relate only to direct government contracting and/or lobbying.
12. True
13. C
14. C
15. B
16. The First Amendment and free speech: The case was a challenge to the federal elections law limiting the amount of money a person or business can spend in support of a political candidate.