MGT 408 EXAM 1 | VERIFIED ACCURATE STUDY
GUIDE | 2026
Social responsibility - Answers -the adoption by a business of a strategic focus for
fulfilling the economic, legal,
ethical, and philanthropic responsibilities expected of it by its stakeholders
small businesses - Answers -activities of this may have the greatest impact on local
communities
Responsibility involves - Answers -action, measurement, and results
Responsibility requires - Answers -a formal commitment, or way of communicating the
company's social
responsibility philosophy
Four types of responsibility (pillars) - Answers -Economic (Financial),
legal, ethical, and philanthropic
Pillar 1:Economic - Answers -Businesses have a responsibility to be economically
viable in order to provide a return on investment for their owners, create jobs for the
community, and contribute goods and services to
the economy
Pillar 2: Legal - Answers -Companies are required to obey laws and regulations passed
to promote responsible business conduct. Elected representatives may be asked to
draft legislation to regulate a firm's behavior or the firm may be sued in a court of law in
an effort to force it to "play by the rules" if the company's behavior is viewed as
irresponsible
Pillar 3: Ethics - Answers -Companies must decide what they consider to be just, fair,
and right—the realm of business
ethics
Business ethics - Answers -the principles and standards that guide behavior in the
world of business
Principles in business ethics - Answers -specific and universal boundaries for behavior
that should never be violated
Values - Answers -enduring beliefs and ideals that are socially enforced
GUIDE | 2026
Social responsibility - Answers -the adoption by a business of a strategic focus for
fulfilling the economic, legal,
ethical, and philanthropic responsibilities expected of it by its stakeholders
small businesses - Answers -activities of this may have the greatest impact on local
communities
Responsibility involves - Answers -action, measurement, and results
Responsibility requires - Answers -a formal commitment, or way of communicating the
company's social
responsibility philosophy
Four types of responsibility (pillars) - Answers -Economic (Financial),
legal, ethical, and philanthropic
Pillar 1:Economic - Answers -Businesses have a responsibility to be economically
viable in order to provide a return on investment for their owners, create jobs for the
community, and contribute goods and services to
the economy
Pillar 2: Legal - Answers -Companies are required to obey laws and regulations passed
to promote responsible business conduct. Elected representatives may be asked to
draft legislation to regulate a firm's behavior or the firm may be sued in a court of law in
an effort to force it to "play by the rules" if the company's behavior is viewed as
irresponsible
Pillar 3: Ethics - Answers -Companies must decide what they consider to be just, fair,
and right—the realm of business
ethics
Business ethics - Answers -the principles and standards that guide behavior in the
world of business
Principles in business ethics - Answers -specific and universal boundaries for behavior
that should never be violated
Values - Answers -enduring beliefs and ideals that are socially enforced
