SM131 Final Exam Study Guide: Business
Perspectives and Ethics Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
What is Milton Friedman's Shareholder Perspective? - CORRECT ANSWER Friedman
argued that the sole social responsibility of a business is to increase its profits while operating
within the legal framework and ethical customs of society.
What does Ed Freeman's Stakeholder Perspective advocate? - CORRECT
ANSWER Freeman proposed that businesses should consider the interests of all
stakeholders, including employees, customers, suppliers, and the community, to create long-
term value.
What is the concept of Creating Shared Value (CSV) developed by Porter and Kramer? -
CORRECT ANSWER Creating Shared Value encourages businesses to generate
economic value in a way that also creates value for society by addressing its needs and
challenges.
What did the Business Roundtable redefine in 2019 regarding corporate purpose? -
CORRECT ANSWER The Business Roundtable redefined the purpose of a corporation
to promote an economy that serves all Americans, stating that companies should deliver value
to all stakeholders, not just shareholders.
What is the critique of Win-Win Strategies in business? - CORRECT ANSWER The
critique highlights the overly optimistic notion that businesses can always align profits with
positive social/environmental outcomes, pointing out a lack of empirical evidence.
What are the four main perspectives on business ethics? - CORRECT
ANSWER Deontology focuses on duties and rules; Utilitarianism aims for the greatest
good for the greatest number; Virtue Ethics emphasizes moral character; Social Justice
stresses fairness and equality.
Perspectives and Ethics Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
What is Milton Friedman's Shareholder Perspective? - CORRECT ANSWER Friedman
argued that the sole social responsibility of a business is to increase its profits while operating
within the legal framework and ethical customs of society.
What does Ed Freeman's Stakeholder Perspective advocate? - CORRECT
ANSWER Freeman proposed that businesses should consider the interests of all
stakeholders, including employees, customers, suppliers, and the community, to create long-
term value.
What is the concept of Creating Shared Value (CSV) developed by Porter and Kramer? -
CORRECT ANSWER Creating Shared Value encourages businesses to generate
economic value in a way that also creates value for society by addressing its needs and
challenges.
What did the Business Roundtable redefine in 2019 regarding corporate purpose? -
CORRECT ANSWER The Business Roundtable redefined the purpose of a corporation
to promote an economy that serves all Americans, stating that companies should deliver value
to all stakeholders, not just shareholders.
What is the critique of Win-Win Strategies in business? - CORRECT ANSWER The
critique highlights the overly optimistic notion that businesses can always align profits with
positive social/environmental outcomes, pointing out a lack of empirical evidence.
What are the four main perspectives on business ethics? - CORRECT
ANSWER Deontology focuses on duties and rules; Utilitarianism aims for the greatest
good for the greatest number; Virtue Ethics emphasizes moral character; Social Justice
stresses fairness and equality.
