Answer the following statements true (T) or false (F)

Question

1. Herman Miller, maker of office furniture, practices corporate social responsibility through sustainability efforts.
2. According to Milton Friedman, the social justification of a business’s existence is in its benefit to stockholders, creation of jobs, and expansion of the economy.
3. Using in-name-only offshore headquarters to minimize U.S. tax burdens is an example of corporate social responsibility.
4. Ethical responsibility is at the top of Carroll’s corporate social responsibility pyramid.

Answer 1

1. True
There are all kinds of ways by which corporate social responsibility is expressed. A big challenge for manufacturing companies is sustainability, which means meeting the needs of the present without compromising the ability of future generations to meet their own needs. Herman Miller has vowed not to produce landfill waste, hazardous waste, or manufacturing emissions and to rely completely on “green energy” by 2020.
2. True
Friedman represents the view that, as he said, “The social responsibility of business is to make profits.” That is, unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth, which amount to the real social justification for the firm’s existence.
3. False
The view against CSR would presumably support the efforts of companies to set up headquarters in name only in offshore Caribbean tax havens (while keeping their actual headquarters in the United States) in order to minimize their tax burden.
4. False
Philanthropic responsibility is at the top of the CSR pyramid