Corporate Social Responsibility Practice Questions And
Correct Answers (Verified Answers) 2026
1.
Describe how Stakeholder Theory expands the concept of corporate responsibility compared to
Shareholder Theory.
• Stakeholder Theory expands corporate responsibility by including ethical obligations to
employees, customers, and the community, rather than focusing solely on shareholder
profits.
• Stakeholder Theory ignores the needs of the community.
• Stakeholder Theory focuses only on maximizing profits for shareholders.
• Stakeholder Theory prioritizes environmental concerns over all other responsibilities.
2.
What does the Market Failures Approach (MFA) emphasize in relation to corporate ethics?
• Addressing market failures and contributing to social welfare
• Enhancing competitive advantage
• Minimizing operational costs
• Maximizing shareholder profits
3.
Describe how efficiency in corporate operations relates to societal needs.
• Efficiency in corporate operations is primarily concerned with reducing costs at the
expense of quality.
• Efficiency in corporate operations ensures that resources are used effectively to create
value that meets societal needs.
• Efficiency in corporate operations focuses solely on maximizing profits without regard
for societal needs.
• Efficiency in corporate operations is unrelated to societal needs and focuses only on
internal processes.
4.
Correct Answers (Verified Answers) 2026
1.
Describe how Stakeholder Theory expands the concept of corporate responsibility compared to
Shareholder Theory.
• Stakeholder Theory expands corporate responsibility by including ethical obligations to
employees, customers, and the community, rather than focusing solely on shareholder
profits.
• Stakeholder Theory ignores the needs of the community.
• Stakeholder Theory focuses only on maximizing profits for shareholders.
• Stakeholder Theory prioritizes environmental concerns over all other responsibilities.
2.
What does the Market Failures Approach (MFA) emphasize in relation to corporate ethics?
• Addressing market failures and contributing to social welfare
• Enhancing competitive advantage
• Minimizing operational costs
• Maximizing shareholder profits
3.
Describe how efficiency in corporate operations relates to societal needs.
• Efficiency in corporate operations is primarily concerned with reducing costs at the
expense of quality.
• Efficiency in corporate operations ensures that resources are used effectively to create
value that meets societal needs.
• Efficiency in corporate operations focuses solely on maximizing profits without regard
for societal needs.
• Efficiency in corporate operations is unrelated to societal needs and focuses only on
internal processes.
4.
