Chapter 2 and 3

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1. Distinguish between the different types of social responsibilities of business using examples. What are the contrasting views to corporate social responsibility? * Economic - responsibility to earn profit for owners.

* Legal - responsibility to comply with the law (society’s codification of right and wrong) * Ethical - not acting just for profit but doing what is right, just and fair * Voluntary and philanthropic - promoting human welfare and goodwill * Being a good corporate citizen contributing to the community and the quality of life.

The example that fits these is natural resources: drilling for oil in formerly
protected areas in the United States. Firms in the oil industry face considerable public opinions both for and against. In considering to drill for natural resources they need to consider all these issues before they make a decision to drill in these areas (Bateman/Snell 2011, pg. 33).

The contrasting views to corporate social responsibility is that business organizations behave in a socially responsible manner and there are people who would argue that it is not the job of business organizations to be concerned about social issues and problems. The free market view which believes the job of business is to create wealth with the interests of the shareholders as the guiding principle doesn’t believe in social responsibility because it reduces wealth and restricts business. 2. Your text provided many examples of "danger signs" that might be found within an organization that create a climate which encourages unethical behavior. Describe five of them. The five “danger signs” that might be found within an organization that creates a climate which encourages unethical behavior is as follows: * Failure to establish a written code of ethics can be a problem because you end up making some of the mistakes that Enron had made (Bateman/Snell 2011, pg. 59). A Code of Ethics is important on many levels. It sets up the...
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