MGT 408 EXAM 1 | VERIFIED ACCURATE STUDY
GUIDE | 2026
Society - Answers -A community, nation, or broad grouping of people having common
traditions, values, institutions, and collective activities and interests.
Explain the relationship between business and society - Answers -They are co-related.
Businesses are designed to provide a product of service to make a profit that benefits
society. Businesses help a society function and without them our society wouldn't be
able to get their wants and needs and be satisfied. Businesses also brings profit to
society.
Pluralism - Answers -the diffusion of power among many interest groups that prevents
any single group from gaining control of the government
Pluralisms role in the business-society relationship - Answers -prevents power from
being concentrated in the hands of few. It maximizes freedom of expression and action.
It makes sure that businesses are not dominating and abusing their power which betters
society and establishes equity because it balances power among groups in society
Pros and cons of pluralistic society - Answers -Pros: prevents power concentration.
Freedom of expression and action. Allegiance to groups is dispersed. Built in checks
and balances.
Cons: No unified direction to allegiance pursuits. Profiting groups have overlapped
goals. Promotes conflicts among groups
special interest society - Answers -A society that is characterized by tens of thousands
of special-interest groups, each pursuing its own focused agenda.
It is pluralism taken to the extreme. It makes life more complex for business and gov
Identify and explain the major factors in the social environment that create an
atmosphere in which business criticism takes place and prospers. - Answers -affluence
and education: as society becomes more prosperous and educated, higher
expectations of its major institutions, such as business, naturally flow
Awareness through television, movies, internet, and SM: Through these things society
gets a lot of information that contributes to a climate of business criticism.
Revolution of Rising Expectations: When the media/tv and affluence/ education starts to
advance in criticism that leads to people making their own thoughts and expectations
and then influencing others on their opinions.
, Entitlement mentality: that leads to this because then people think and people think they
are owed and entitled to what they want.
rights movement: related to special interest society. the entitlement mentality leads to
this and then people want changes
victimization philosophy: people saying they have been victimized and how they are
treated unfairly
4 levels of power - Answers -Macrolevel: refers to the entire corporate system; big
business. power that emanates from size, resources, dominance
intermediate: groups or corps acting in concert in an effort to produce a desired effect-
to set prices, control markets, promote an issue
Microlevel: the level of an individual firm. The exertion of power from any major corp.
individual level: and individual corporate leader exerting power (Mark Zuk)
Iron Law of Responsibility - Answers -in the long run, those who do not use power in
ways that society considers responsible will tend to lose it
Social Contract - Answers -set of understandings and xpectations that characterize the
relationship between major insti. (business and society) understood and tatic
agreements that guide behavior in relationships among members of a community or
group.
Why were the 50's and 60's called the golden age - Answers -it was a period of growth
and diversification. There was a lot of support during the wars and they was a lot of
charity and high quality products
explain the factors leading to a focus on the bottom line - Answers -increased
competition lead to a focus on the bottom line. It created a focus on cost and efficiency;
benefits eliminated, salaries reduced
Pyramid of CSR - Answers -Bottom: economic responsibilities. be profitable, the
foundation upon much all other else (required)
Second bottom: legal responsibilities, obey by the law, play by rules of the game
(required)
Second top: Ethical responsibilities, do what is right and fair, avoid harm (expected)
Top: philanthropic responsibilities: be good corporate citizen. Continue resources to
community. improve quality of life (desired)
Arguments for and against CSR - Answers -Against:
classical economics: businesses only goal is to max profits for owners
business not equipped: cant handle social activists
GUIDE | 2026
Society - Answers -A community, nation, or broad grouping of people having common
traditions, values, institutions, and collective activities and interests.
Explain the relationship between business and society - Answers -They are co-related.
Businesses are designed to provide a product of service to make a profit that benefits
society. Businesses help a society function and without them our society wouldn't be
able to get their wants and needs and be satisfied. Businesses also brings profit to
society.
Pluralism - Answers -the diffusion of power among many interest groups that prevents
any single group from gaining control of the government
Pluralisms role in the business-society relationship - Answers -prevents power from
being concentrated in the hands of few. It maximizes freedom of expression and action.
It makes sure that businesses are not dominating and abusing their power which betters
society and establishes equity because it balances power among groups in society
Pros and cons of pluralistic society - Answers -Pros: prevents power concentration.
Freedom of expression and action. Allegiance to groups is dispersed. Built in checks
and balances.
Cons: No unified direction to allegiance pursuits. Profiting groups have overlapped
goals. Promotes conflicts among groups
special interest society - Answers -A society that is characterized by tens of thousands
of special-interest groups, each pursuing its own focused agenda.
It is pluralism taken to the extreme. It makes life more complex for business and gov
Identify and explain the major factors in the social environment that create an
atmosphere in which business criticism takes place and prospers. - Answers -affluence
and education: as society becomes more prosperous and educated, higher
expectations of its major institutions, such as business, naturally flow
Awareness through television, movies, internet, and SM: Through these things society
gets a lot of information that contributes to a climate of business criticism.
Revolution of Rising Expectations: When the media/tv and affluence/ education starts to
advance in criticism that leads to people making their own thoughts and expectations
and then influencing others on their opinions.
, Entitlement mentality: that leads to this because then people think and people think they
are owed and entitled to what they want.
rights movement: related to special interest society. the entitlement mentality leads to
this and then people want changes
victimization philosophy: people saying they have been victimized and how they are
treated unfairly
4 levels of power - Answers -Macrolevel: refers to the entire corporate system; big
business. power that emanates from size, resources, dominance
intermediate: groups or corps acting in concert in an effort to produce a desired effect-
to set prices, control markets, promote an issue
Microlevel: the level of an individual firm. The exertion of power from any major corp.
individual level: and individual corporate leader exerting power (Mark Zuk)
Iron Law of Responsibility - Answers -in the long run, those who do not use power in
ways that society considers responsible will tend to lose it
Social Contract - Answers -set of understandings and xpectations that characterize the
relationship between major insti. (business and society) understood and tatic
agreements that guide behavior in relationships among members of a community or
group.
Why were the 50's and 60's called the golden age - Answers -it was a period of growth
and diversification. There was a lot of support during the wars and they was a lot of
charity and high quality products
explain the factors leading to a focus on the bottom line - Answers -increased
competition lead to a focus on the bottom line. It created a focus on cost and efficiency;
benefits eliminated, salaries reduced
Pyramid of CSR - Answers -Bottom: economic responsibilities. be profitable, the
foundation upon much all other else (required)
Second bottom: legal responsibilities, obey by the law, play by rules of the game
(required)
Second top: Ethical responsibilities, do what is right and fair, avoid harm (expected)
Top: philanthropic responsibilities: be good corporate citizen. Continue resources to
community. improve quality of life (desired)
Arguments for and against CSR - Answers -Against:
classical economics: businesses only goal is to max profits for owners
business not equipped: cant handle social activists
