of its stakeholders. Managers are called upon to do what society deems just and fair.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Conduct a
stakeholder impact analysis.
In the pyramid of corporate social responsibility, ________ responsibilities are the foundational
building block.
economic
ethical
philanthropic
legal
Economic responsibilities are the foundational building block, followed by legal, ethical, and
philanthropic responsibilities. The business enterprise is first and foremost an economic institution.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-04 Conduct a
stakeholder impact analysis.
47.
Award: 1.00 point
Which of the following statements is true of the social responsibilities of a business?
A firm’s ethical responsibilities go beyond its legal responsibilities.
Shareholders mandatorily require a firm to perform its ethical and philanthropic
responsibilities.
Ethical responsibilities are the foundational building block of a firm’s social responsibility.
Legal responsibilities are often subsumed under the idea of corporate citizenship,
reflecting the notion of voluntarily giving back to society.
A firm’s ethical responsibilities go beyond its legal responsibilities. They embody the full scope of
expectations, norms, and values of its stakeholders. Managers are called upon to do what society
deems just and fair.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Conduct a
stakeholder impact analysis.
48.
Award: 1.00 point
49.
Award: 1.00 point
The founder of T-Square Construction strongly believes in the notion of corporate social
responsibility, so he has proposed several philanthropic activities that he expects the company to
pursue. In order to accomplish this vision, the managers should first
review all legal codes in the areas in which T-Square operates and ensure all permits are
up-to-date.
ensure that the company is profitable and has a sustainable competitive advantage.
make sure it is paying employees wages that allow them to live comfortably.
ask for public input on issues that the company can help address.
As illustrated in exhibit 2.10, the firm is first and foremost an economic institution. Without first
gaining and sustaining a competitive advantage, T-Square would not have the resources to meet
the rest of its legal, ethical, and philanthropic responsibilities and achieve the founder’s vision of
giving back to society.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Conduct a
stakeholder impact analysis.
In the final step of the stakeholder impact analysis, a firm
identifies its stakeholders’ interests and claims.
differentiates its internal stakeholders from its external stakeholders.
recognizes the opportunities and threats stakeholders present.
decides a course of action to address the stakeholders’ concerns.
In the final step of the stakeholder impact analysis, the firm asks, “What should we do to effectively
address any stakeholder concerns?”
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Conduct a
stakeholder impact analysis.
50.
Award: 1.00 point
51.
Award: 1.00 point
Which of the following strategies does Tesla need to implement or achieve to gain a competitive
advantage?
imitate the features of the most popular SUVs on the market
reinvest profits to build successively better electric automobiles
sell advertising space on their cars’ digital displays
substitute less-expensive components to keep costs low
As mentioned in Chapter Case 1, Tesla has consistently reinvested its profits to build successively
better models of electric cars while keeping its strategy secret from competitors.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Explain the role
of strategy in a firm's quest for
competitive advantage.
________ is best described as an integrative management field that combines analysis, formulation,
and implementation in the quest for competitive advantage.
Supply chain management
Integrated technology management
Strategic management
Inventory management
Strategic management is the integrative management field that combines analysis, formulation, and
implementation in the quest for competitive advantage. Mastery of strategic management enables