Page 141 - BA1 Integrated Workbook STUDENT 2018

Supplementary objective test questions

CHAPTER 3 – ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

3.1 POP manufactures and sells stationery through a chain of stores across country
H. It is a relatively small business and faces stiff competition from larger
retailers – in particular supermarket chains which have access to significant
economies of scale, which is very attractive to customers.

POP’s CEO has recently suggested that the company should adopt a formal
strategy to boost its corporate social responsibility. He has suggested that the
company should be focusing on improving the treatment of its employees, as
well as ensuring that all of its raw materials are sourced from ethical,
sustainable sources.

Which TWO of the following statements regarding the possible impact of
the CEO’s proposal are correct?

A It may make POP’s products less able to compete on price in the market

B It is likely to lower POP’s production and selling costs

C It may give POP a way to differentiate itself from larger rivals

D It will save management time which POP can dedicate to improving sales

E It will reduce POP’s need to scrutinise its major suppliers

3.2 XX is a primary school. It has recently been criticised by parents for offering
poor quality food in its canteen for students. The majority of the food is high
calorie, low cost food.

XX’s board of trustees has replied that the food meets the relevant government
requirements and that it will not consider changing its policies.

Which of Carroll’s ethical philosophies has XX adopted?

A Defence

B Reaction

C Accommodation

D Proaction

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